TCR_Public/950901.MBX BANKRUPTCY CREDITORS' SERVICE, INC.



        HOUSE OF FABRICS FILES PLAN OF REORGANIZATION; COMPANY PLANS TO
        EMERGE FROM CHAPTER 11 BY END OF FISCAL YEAR

        
            SHERMAN OAKS, Calif., Aug. 31, 1995 -- href="chap11.hf.html">House of Fabrics,
        Inc.
(NYSE: HF) announced today that, in accordance with the
        deadline agreed upon as part of its debtor-in-possession financing
        agreement, it has filed its plan of reorganization with the
        Bankruptcy Court.  The Company stated that the plan is subject to
        continuing negotiations with its creditor and equity holder groups
        and will likely be revised before finally being presented to the
        Bankruptcy Court for approval.
        


            Gary Larkins, House of Fabrics president and chief executive
        officer, said, "While this plan does not have the agreement of all
        of our creditor and shareholder groups, I am optimistic that we can
        negotiate the final points over the course of the next few weeks,
        and that an amended plan that has the support of all creditor and
        shareholder groups can be filed shortly."
        


            Mr. Larkins said that the company felt "it was important to file
        our plan on a timely basis so that we are in a position to
        successfully emerge from Chapter 11 this fiscal year, which ends
        January 31, 1996."
        


            Mr. Larkins said that the plan that was filed today provides
        liquidity for the company to operate its business and purchase
        necessary inventory.  "The plan demonstrates the long-term viability
        of the company and establishes its strength to emerge from Chapter
        11," said Mr. Larkins.  "Whether or not we reach consensus on an
        amended plan, I am confident that we will be able to emerge from
        Chapter 11 as a strong, stable competitor, and that we will have the
        continued support of our vendors going forward."

        
            Under the terms of the plan, the company would convert
        approximately $120 million in short-term loans from the 11-member
        bank group (led by Bank of America as agent) to a 10-year term
        obligation.  In addition, the plan provides that unsecured creditors
        would receive 98 percent of the common stock initially issued by the
        reorganized company in satisfaction of their claims, subject to
        future dilution from warrants and options.  The current shareholders
        would receive two percent (2%) of the common stock of the
        reorganized company, as well as warrants to purchase an additional
        eight percent (8%) of the reorganized company's common stock on a
        fully diluted basis.  The company cautioned, however, that many
        aspects of the plan are still subject to continuing negotiations
        with the various creditor and shareholder groups, and that many
        provisions of the plan may change.
   

     
            House of Fabrics operates 364 continuing company-owned House of
        Fabrics, Sofro Fabrics, Farbricland and Fabric King retail fabric
        and craft stores in 34 states and employs approximately 8,600
        people. The Company and its subsidiaries filed to restructure under
        Chapter 11 on November 2, 1994.
      


        /CONTACT:  Sandra Sternberg or Rivian Bell of Sitrick and Company,
        310-788-2850/





        M/A-COM ACQUIRES COLORADO GALLIUM ARSENIDE FACILITY
        


            HARRISBURG, Pa., Aug. 31, 1995 -- AMP
Incorporated's M/A-
        COM (NYSE: AMP) subsidiary today announced its purchase of the
        Gallium Arsenide (GaAs) wafer fabrication assets at href="chap11.cray.html">Cray Computer in
        Colorado Springs, CO.
        


            M/A-COM is a leading manufacturer of semiconductors, components
        and subsystems for wireless communications, defense and other
        applications using radio frequency (RF) and microwave technology.
        The Colorado Springs operation will give the company a second GaAs
        integrated circuit (IC) facility to meet the market demand for the
        company's switches and related products used in cellular phones and
        many other wireless applications.
        


            "The Colorado facility will allow M/A-COM to provide the world's
        first dual sourcing for Gallium Arsenide ICs, supporting our
        customers' needs for increased volumes and reduced risk of supply
        interruption," said Richard Clark, M/A-COM CEO and president.
        


            Clark explained that many of the newer integrated circuits used
        in cellular telephones are fabricated using Gallium Arsenide rather
        than silicon.  The electrical properties of GaAs allow it to better
        met the speed and power efficiency requirements of today's wireless
        phones.
        


            Earlier this year, Cray Computer filed for reorganization under
        Chapter 11 of the U.S. Bankruptcy Code.  The 40,000-square-foot
        Colorado Springs facility has been closed since March 1995.  M/A-COM
        plans to lease the building that houses the GaAs foundry.
        


            AMP Incorporated is the world's leading supplier of electrical
        and electronic connectors and interconnection systems, serving
        customers around the world in a range of markets including
        aerospace, automotive, computers, consumer goods and
        telecommunications.  AMP employs more than 36,000 people in 38
        countries and recorded sales of $4.03 billion in 1994.  AMP common
        stock is traded on the New York Stock Exchange under the symbol
        "AMP."
        


        /CONTACT:  Greg Hafer, media relations of AMP, 717-780-7385/

        




Ramtron debt restructuring approved


            COLORADO SPRINGS, Colo., August 31, 1995 -- U.S.
        semiconductor maker Ramtron
International Corporation
(NASDAQ:RMTR)
        reported today that the bankruptcy estate of Oren L. Benton has
        received court approval to restructure the Company's debt per an
        agreement announced August 2, 1995.  
        


            As described in that announcement, Ramtron will issue
        approximately 7.9 million shares of common stock and retire $24.3
        million of its debt.  An additional $2.7 million of Benton debt may
        be converted under the same terms.  Outstanding warrants with the
        National Electrical Benefit Fund (NEBF) and Mr. Benton to purchase a
        total of 5.9 million common shares, will be adjusted to an exercise
        price of $4.15 per share, with a new common five-year term.
        Additionally, warrants for 1.1 million shares of common stock will
        be issued to BEA Associates, Inc. (BEA) under similar terms and then
        transferred to the Benton bankruptcy estate.  All Ramtron employee
        options will also be adjusted to the new warrant exercise price of
        $4.15.  
        


            In addition to the debt restructuring, the NEBF has agreed to
        provide a $12.0 million credit facility secured by Ramtron's assets.
        The final $4.5 million of the credit facility is contingent upon
        certain performance criteria to be met by Ramtron.  An existing $3
        million credit facility, established by the NEBF in March 1995, will
        be included in the new credit arrangement.  No payment obligations
        under this credit facility will commence until June 30, 1998.  
        


            To induce Benton's Creditors' Committee to withdraw its
        objection to the restructuring agreement, a portion of the value
        allocatable to the new investor, BEA, was reallocated to the Benton
        bankruptcy estate through warrants and call options.  However, no
        changes in the agreement were made affecting the terms of the
        securities to be issued by Ramtron or the value of the transaction
        to Ramtron.  
        


            Ramtron International Corporation is a leading developer and
        supplier of specialty memories including proprietary FRAM(R)
        products that retain information without power and ultra-high
        performance EDRAMs.  Ramtron holds 55 foreign and U.S. patents
        covering its proprietary technologies and products, and has more
        than 74 additional patents filed.  
        


            For more information about Ramtron and its products, contact:
        Communications Department, Ramtron International Corporation, 1850
        Ramtron Drive, Colorado Springs, Colorado, USA, 80921.  Telephone is
        800-545-FRAM; fax is 719-488-9095; E-mail address is
        info@ramtron.com.  Homepage
is href="http://www.csn.net/ramtron.

" target=_new>http://www.csn.net/ramtron">http://www.csn.net/ramtron.


            Note to Editors: FRAM is a registered trademark of Ramtron
        International Corporation.  
        


        CONTACT:  Ramtron International Corporation,
                  Lee A. Brown, 719/481-7000
        




        HAYES AND COMMITTEE AGREE ON EXTENSION
        


            ATLANTA, Georgia -- August 31, 1995 -- href="chap11.hayes.html">Hayes Microcomputer Products,
        Inc.
reached agreement with the Official Committee of Creditors
        Holding Unsecured Claims that provides Hayes a short extension of
        time to complete arrangements for funding of its Plan of
        Reorganization.  The Committee and Hayes are cooperating fully to
        assure the continued turnaround of the company and in moving forward
        in the shortest possible time to acquire the funding necessary to
        pay the creditors in full with interest.
        


            Under the agreement, the Committee and Hayes will have the
        opportunity to seek alternative funding of Hayes Plan of
        Reorganization. The parties have agreed that the Committee will be
        permitted to engage an investment banker immediately to seek
        alternative funding while the company continues its activities.
        


            "Since the settlement of the Rockwell litigation, there has been
        tremendous interest in investing in Hayes," said Dennis C. Hayes,
        Chairman.  "We already have commitments for a substantial portion of
        the funding and fully expect that we will be successful."
        


            The agreement sets a goal for Hayes to obtain $15 million by
        October 2, 1995 and all funding by October 16, 1995.  If the funding
        is not obtained, Hayes and the Committee have agreed that a mutually
        acceptable fiduciary manager may be appointed to oversee the
        management of the company.  Dennis Hayes would continue his efforts
        to secure funding. Hayes intends to request a corresponding
        extension of the confirmation hearing from the Bankruptcy Court.
        


            The charge to the fiduciary manager would be to continue the
        improving operations of the business and the company's turnaround
        plan without any disruption of the business.  Hayes does not
        anticipate that it will be necessary for the fiduciary manager to be
        appointed. However, should this happen, Hayes business operations
        will be unaffected.  Dennis Hayes will remain as Chairman of the
        Board and be available to assist at the discretion of the fiduciary
        manager.
        


            Bill Young, Chief Financial Officer of Hayes, stated: "While we
        differ on which funding strategy will accomplish the payment of
        creditors in the shortest possible time, we are pleased that there
        is full agreement that the successful business operations will
        continue without interruption."
        


            Best known as the leader in microcomputer modems, Hayes
        develops, supplies and supports computer communications equipment
        and software for personal computers and computer communications
        networks.  The company distributes its products through a global
        network of authorized distributors, dealers, mass merchants, VARs,
        system integrators and original equipment manufacturers.
        


        /CONTACT:  Andrew W. Dod, Director of Corporate Communications of
        Hayes Microcomputer Products, Inc., 404-840-9200, or facsimile,
        404-441-1238, or Internet, adodhayes.com/




INVESTMENT BANKERS, TURNAROUND SPECIALISTS
        FORM NEW FIRM
        


            NEW YORK, New York, September 1, 1995 -- A
group of highly
        experienced corporate finance specialists and financial advisers
        announced today they have formed KPMG BayMark LLC, an investment
        bank and turnaround management firm.  
        


            Formed in February, KPMG BayMark has an investment banking
        group, KPMG BayMark Capital LLC and a turnaround management group,
        KPMG BayMark Strategies LLC.  
        


            KPMG BayMark Capital provides financial advisory and capital-
        raising services and helps complete transactions.  It will serve as
        a broker/dealer but has no plans to underwrite securities offerings.
        


            KPMG BayMark Capital's chief executive officer is David Maughan,
        who has over 20 years of Wall Street experience, including recently
        serving as a managing director and head of the Financial
        Institutions Group at Kidder, Peabody & Co.  Previously, Maughan was
        at Drexel Burnham Lambert and Morgan Stanley & Co.  
        


            "KPMG BayMark Capital provides value-added financial advisory
        and capital-raising services to middle-market companies and executes
        midsize transactions for larger companies," said Maughan.  "We
        integrate strategic advice with transaction execution, to ensure
        that doing a deal never takes precedence over our client's best long-
        term interests."  
        


            KPMG BayMark Strategies serves companies in transition, such as
        those in financial distress.  Its services include turnaround
        consulting, financial restructuring, bankruptcy services and post-
        acquisition integration services.  It provides hands-on management,
        formulates business plans and helps obtain new financing.  KPMG
        BayMark Strategies can take equity positions in clients.  
        


            KPMG BayMark Strategies' principals are Daniel Armel, previously
        a regional partner-in-charge of business reorganization services at
        a Big Six accounting firm and head of a loan workout team at Morgan
        Guaranty Trust Co.  He is president of the href="discussion.html#AIA">Association of Insolvency
        Accountants
and served on troubled companies steering
committees and
        Chapter 11 creditors committees.  Another principal is Edward Olson,
        who has 30 years of operational expertise, including 15 years of
        corporate turnaround consulting.  He previously was president of his
        own consulting group.  Olson established a holding company and
        served as a senior executive manager for companies, providing
        guidance after leveraged buy-outs and the successful workout of
        troubled situations.
        


            "Our approach to serving companies in transition is to focus on
        enhancing business value by delivering on short-term needs in time-
        critical situations, while building longer-term solutions,"  Armel
        noted.  "We are positioned to help with the process, if a company
        has management in place, or to take management's role ourselves, to
        implement full-fledged turnarounds.  
        


            KPMG BayMark, a new independent firm, has entered into a
        strategic alliance with KPMG Peat Marwick LLP.  Securities Data Co.
        rated KPMG among the top two advisers on mergers and acquisitions
        worldwide for the first six months of 1995.  The ranking was based
        on number of deals.  KPMG has licensed use of its name to KPMG
        BayMark.
        


            The firm's overall strategy is to provide comprehensive
        solutions to its clients by combining the flexibility of a boutique
        firm with the resources of a national professional services
        organization.  
        


            KPMG BayMark LLC is an independent firm in strategic alliance
        with KPMG Peat Marwick LLP.  It consists of two subsidiaries: KPMG
        BayMark Capital LLC and KPMG BayMark Strategies LLC.  Through
        offices in New York, Los Angeles, Washington, D.C. and Charlotte,
        NC, KPMG BayMark provides investment banking services and offers
        turnaround services for companies in transition.  
        


        CONTACT: Andy Katell,  
                 Fleishman-Hillard,
                 212-265-9150
                  or
                 David Maughan,
                 KPMG BayMark,
                 212-355-8200
        




PUCT issues order in EPE Docket No. 12700

           EL PASO, Texas -- September 1, 1995 -- On Aug. 30,
        1995, the Public Utility Commission of Texas (PUCT) issued an order
        in El Paso Electric Company's rate
case -- Docket No. 12700.  
        


            The order, which is intended to become effective when the
        company emerges from bankruptcy, includes approval of the
        stipulation and settlement agreement between the company, the City
        of El Paso and other parties to Docket 12700.  The stipulation
        addresses the regulation and supervision of the business of the
        company consistent with the jurisdiction granted to the Commission
        by the Public Utility Regulatory Act.  
        


            The order grants the company a $24.9 million annual base rate
        increase that was put into effect under bond in July 1994.  The
        stipulation and order provides stable rates for the company during a
        10 year period beginning Aug. 3, 1995.  The Commission found that
        the 10 year rate freeze is in the public interest and results in
        just and reasonable rates.  
        


            In addition to the company and City of El Paso, other
        signatories to the stipulation included the Commission General
        Counsel, the Office of Public Utility Counsel, the State of Texas,
        ASARCO, Phelps-Dodge, Border Steel Rolling Mills, Inc., the
        Department of Defense and the International Brotherhood of
        Electrical Workers (IBEW).  
        


            The Commission's order also settles all issues regarding Unit 3
        of the Palo Verde Nuclear Generating Station and allows the
        company's to recover all the prudent construction costs and some of
        the deferred operating costs of Unit 3; deems Unit 3 100 percent
        used and useful; deems the reacquisition of the previously leased
        portions of the Palo Verde assets to be in the public interest;
        disallows the recovery of bankruptcy reorganization costs from Texas
        retail customers; and requires that margins from wheeling and off-
        system sales revenues from wholesale customers be allocated during
        the first five years of the rate freeze, 75 percent to the company
        and 25 percent to customers, and shared 50-50 during the second five
        years of the freeze period.  
        


            With the issuance of this order, important regulatory issues
        have been resolved subject to a plan of reorganization becoming
        effective in the company's Chapter 11 proceeding.  
        


            EPE filed a voluntary petition under Chapter 11 of the United
        States Bankruptcy Code on Jan. 8, 1992.  El Paso Electric is an
        electric utility serving approximately 270,000 customers in El Paso,
        Texas, and an area of the Rio Grande Valley in West Texas and
        Southern New Mexico, and wholesale customers located in such diverse
        locations as Southern California and Mexico.  
        


        CONTACT:  El Paso Electric Company, El Paso,
                  Henry Quintana Jr., 915/543-5824
        




        MARKAIR TO REDEEM CERTIFICATES FOR TICKETS

        
            WASHINGTON, September 1, 1995 -- href="chap11.markair.html">MarkAir, under an agreement
        with the Department of Transportation, will broaden its offer to
        issue tickets to consumers holding Alaskan Permanent Fund vouchers.
        


            The Anchorage-based carrier had redeemed the vouchers only for
        MarkAir Express flights within Alaska since it filed for Chapter 11
        bankruptcy protection on April 14.
        


            Under the agreement, individuals who purchased vouchers under
        the program for personal, family or household use may convert them
        for tickets good for travel on routes MarkAir flies in the lower 48
        states. MarkAir can impose reasonable capacity controls, limiting
        the number of such tickets which can be used for flights in
        individual markets.  All travel based on the converted tickets must
        be completed by Sept. 15, 1996.
        


            Residents of Alaska have received Permanent Fund Certificates,
        worth about $950 annually, as a share of the state's oil revenues.
        Prior to its bankruptcy filing, MarkAir offered vouchers good for
        five roundtrip tickets for travel on its flights to anyone who gave
        his or her certificate to the carrier.  At the time of its Chapter
        11 filing, MarkAir announced that the vouchers would be redeemed
        only for travel in Alaska.
        


            The department negotiated this agreement with MarkAir as part of
        its continuing review of the carrier's fitness and its mandate to
        protect air travel consumers.
        


            For further information on conversion of the certificates,
        consumers may call MarkAir at 907-243-1414.
        


            An electronic version of this document can be obtained via the
        World Wide Web at:
" target=_new>http://www.dot.gov/affairs/index.htm">
http://www.dot.gov/affairs/index.htm

        /CONTACT:  Bill Adams of the U.S. Department of Transportation,
        202-366-5580/
   




        PROACTIVE TECHNOLOGIES FILED CHAPTER 11

        
            TULSA, Oklahoma, September 1, 1995 -- href="chap11.proactive.html">Proactive Technologies,
        Inc.
(Nasdaq: PTEK) today announced that it has voluntarily filed
        for protection under Chapter 11 of the United States Bankruptcy Code
        with the United States Bankruptcy Court for the Northern District of
        Oklahoma.  Its two wholly-owned subsidiaries, Proactive Solutions,
        Inc., and Keystone Laboratories, Inc., have joined the corporation
        in this filing.
        


            In conjunction with the Chapter 11 filing, the corporation filed
        suit against Joel C. Holt, a director, Ira Rimer, a shareholder, and
        G. David Gordon, Esq., and the Oklahoma law firm of Klenda, Gordon &
        Getchell, P.C., the corporation's attorneys.  The corporation is
        alleging various incidents of breach of fiduciary duty to the
        corporation, conflicts of interest, mismanagement and fraud.
        


            The common stock of Proactive Technologies, Inc., is traded in
        the over-the-counter bulletin board market.  The Nasdaq symbol for
        the common stock is PTEK.
      

  
        /CONTACT:  William S. Davis, 918-497-2359, president and chairman of
        the board of Proactive Technologies/