WILMINGTON, Delaware -- August 29, 1995 -- href="chap11.columbia.html">The Columbia Gas
        System, Inc.
(NYSE: CG) announced today that its Chapter 11
        reorganization plan and disclosure statement and ballots for voting
        to accept or reject the plan are being mailed to its creditors and
        equity security holders. Creditors of Columbia Gas Transmission
        Corp., its principal pipeline subsidiary, are being mailed copies of
        that company's reorganization plan, disclosure statement and voting

            Recipients have until October 13 to return their ballots.  The
        Bankruptcy Court has scheduled confirmation hearings on both plans
        to begin November 13.

            Creditors and equity holders of the Parent Company will also
        receive a copy of the order issued by the Securities and Exchange
        Commission under the Public Utility Holding Company Act approving
        the financing and restructuring of the Corporation's plan and the
        Corporation's participation in Columbia Transmission's plan.

            Columbia System Chairman and CEO Oliver G. Richard III said he
        is optimistic that the required majorities of creditors of each plan
        and the Parent Company's investors will vote to accept the plans
        because "they will recognize that the plans offer sound business
        solutions to the many complex issues that have been raised by
        various parties in the proceedings.  Favorable votes will enable
        both companies to emerge from Chapter 11 before the end of the

            Richard pointed out that Columbia Transmission's plan is
        supported by its official bankruptcy committees and that the Parent
        Company's plan is endorsed by the official committee representing
        equity security holders in the bankruptcy proceedings.  He said that
        the Parent Company's Official Committee of Unsecured Creditors have
        a few remaining areas of disagreement with the Parent plan, which
        they have indicated do not affect the Committee's basic support for
        the plan.

            The Parent Company's reorganization plan proposes a total
        distribution of approximately $3.6 billion to its creditors, which
        includes $2.3 billion in payment of the Corporation's pre-petition
        debt and $1.1 billion of interest on the debt.   Columbia
        Transmission's plan, which is supported financially by the Parent
        Company, proposes a total distribution of approximately $3.9
        billion, including approximately $2.2 billion that would be paid to
        the Parent Company to resolve its secured and unsecured debt.

            The two companies have been operating as debtors-in-possession
        under Chapter 11 of the Bankruptcy Code since July 31, 1991.

        /CONTACT:  Media, H.W. Chaddock, 302-429-5261, or W.R. McLaughlin,
        302-429-5443, or Analysts, T.L. Hughes, 302-429-5363, or K.P.
        302-429-5471, all of Columbia Gas/


            YOUNGSTOWN, Ohio -- August 29, 1995 -- href="chap11.pharmor.html">Phar-Mor, Inc.
        announced today that the U.S. Bankruptcy Court for the District of
        Ohio has confirmed the Company's Plan of Reorganization.  The Plan
        was filed under Chapter 11 of the U.S. Bankruptcy Code on May 25,

            Following the effective date, which is anticipated to occur in
        approximately 10 days, Phar-Mor will be a publicly traded company.
        The Company said it has applied to be listed on Nasdaq.

            As part of the Reorganization Plan, an investment group led by
        Robert Haft will acquire a significant portion of the reorganized
        Company's equity.  The remaining equity initially will be owned by
        Phar- Mor's Senior Secured Lenders and its unsecured creditors.

            "Phar-Mor's turnaround is complete with the confirmation of this
        reorganization plan," said Phar-Mor Chief Executive Officer Tony
        Alvarez.  "This Company - which three years ago was wracked by
        fraud, red ink and low morale - is once again a leader in the deep
        discount drugstore business.  Every one of our 102 stores is
        profitable, and we are positioned for further expansion through
        internal growth and by acquisitions.  I am very gratified by what
        all of us at Phar-Mor have achieved since 1992, when the fraud was
        uncovered.  I am also very pleased with the quality and energy of
        the management team that will lead Phar-Mor."

            Under the Plan of Reorganization, Phar-Mor's senior secured
        lenders will receive: (i) approximately $102.5 million in cash; (ii)
        approximately $92.7 million in principal amount of new senior notes
        payable in seven years and bearing interest at a rate 5.25 percent
        above seven-year Treasury notes; (iii) 8.5 million shares of the
        Reorganized Company's new common stock, of which 2.5 million will be
        sold to the Haft Group at a price of $8.00 per share, for a total of
        $20 million; plus, (iv) interests in potential proceeds from
        litigation Phar-Mor has asserted against various third parties,
        including its previous auditor, Coopers & Lybrand.

            The Company's unsecured creditors will receive: (i) 1.5 million
        shares of the Reorganized Company's new common stock; (ii) interests
        in the potential proceeds from the litigation described above; and
        (iii) warrants to purchase 1.25 million shares of the Reorganized
        Company's new common stock at an exercise price of $13.50 per share.
        In addition, vendors with reclamation claims for goods shipped to
        the Company immediately prior the bankruptcy filing have received
        approximately $24 million in cash.

            Other secured lenders, who provided the financing for certain
        furniture, fixtures and equipment used by Phar-Mor, will receive
        notes payable over eight years, bearing interest at 7%.

            Current shareholders will receive no equity, but will begin to
        participate in the potential proceeds from the litigation described
        above after $200 million of such proceeds are paid to the Company's

            In addition to the shares it purchases directly from the senior
        secured lenders, the Haft Group will also acquire 1.25 million
        shares of new common stock directly from the Company at a price of
        $8.00 per share, for a total of $10 million.  After these purchases
        and acquisition shares, the Haft Group will own approximately 30.8%
        of the newly organized Company, the senior secured lenders 49.5% and
        the unsecured creditors 12.3%.

            Under the plan, Robert Haft will become Chairman and Chief
        Executive Officer.  David Schwartz, currently President and Chief
        Operating Officer, will remain in those positions.  The Company will
        have a seven- member Board of Directors, of whom four will be
        appointed by the Haft Group, two by the secured creditors and one by
        the unsecured creditors.

            Phar-Mor, headquartered in Youngstown, is a deep-discount retail
        chain with 102 stores in 19 states.  On Aug. 17, 1992, Phar-Mor
        filed for protection under Chapter 11 of the U.S. Bankruptcy Code.

        /CONTACT:  Gary Holmes, for Phar-Mor, 212-484-7736/

KLH Engineering Group Inc. subsidiary
        emerges from bankruptcy

            ENGLEWOOD, Colorado -- August 29, 1995 -- href="chap11.klh.html">KLH
        Engineering Group Inc.
(OTC Bulletin Board trading symbol KLHE)
        announced today that its wholly owned subsidiary Tomahawk
        Construction Co. emerged from bankruptcy protection yesterday after
        operating for less than a year under Chapter 11.

            According to Delmar Janovec, chairman and president of KLH, now
        that Tomahawk is out of bankruptcy, KLH and its management can
        devote their time and resources to building a stronger company:
        "This enables us to concentrate our time and efforts on making KLH
        one of the premier design-build engineering and construction firm in
        America, a goal we have always had."

            KLH is a full-service engineering consulting and construction
        firm headquartered in Englewood, Colo., and has eight offices in
        Colorado, Kansas and California.  Tomahawk, based in Kansas City,
        Kan., is the company's main construction arm.

        CONTACT:  KLH Engineering Group Inc., Englewood;
                  Mike Cederstrom, 913/621-4233