TCR_Public/951011.MBX BANKRUPTCY CREDITORS' SERVICE, INC.



Legacy Storage Systems International
        Inc. announces that it is in preliminary discussions with Rexon
        Inc.

        
            MARKHAM, Ontario--Oct. 11, 1995--Legacy Storage
        Systems International Inc. today announced that it is in preliminary
        discussions with Rexon Inc., a U.S.
manufacturer of data storage
        products, to acquire certain assets of Rexon Inc.  
        


            Rexon Inc., a public company quoted on Nasdaq ("REXNQ"), filed
        for reorganization under Chapter 11 of the U.S. Bankruptcy Court for
        the District of Colorado on Sept. 13, 1995.  
        


            As disclosure of these discussions has been made in proceedings
        before the Bankruptcy Court, Legacy has determined to issue this
        press release at this time to ensure that full disclosure to
        investors has been made.  These discussions are exploratory
        discussions only, and there is no assurance that an agreement will
        be reached or that the Bankruptcy Court for the District of Colorado
        will approve any agreement that the parties may reach.  
        


            Sales of Rexon Inc. for the nine months ended July 2, 1995, were
        in excess of U.S. $130 million (unaudited).  Rexon Inc.
        manufactures and distributes 1/4" cartridge (QIC) tape drives under
        the Wangtek brand name, digital audio tape (DAT) drives under the
        WangDAT brand name and Techmar tape back-up solutions.  Rexon Inc.
        distributes its tape back-up products through a field sales force
        and an international network of more than 100 distributors.  
        


            Rexon Inc. also has OEM and VAR relationships with a number of
        major U.S. computer companies.  Rexon operates its own manufacturing
        facility out of Singapore.  
        


            Legacy Storage Systems International Inc. is a global leader in
        the design, development manufacturing and marketing of data storage
        subsystems incorporating the latest advances in hard disk, CD-ROM,
        optical disk and magnetic tape technologies.  The company's products
        emphasize storage integration technology and fault tolerance for
        applications running on PC and UNIX client/server environments.  
        


            Legacy manufactures products for all major operating systems.
        Legacy's products are marketed worldwide to Fortune 500 companies.  
        


        CONTACT:  David Killins, 905/475-1077;
                  Alain Lambert, 514/844-7212
        




System Controls Inc. announces
        management restructuring and operating results

        
        
            ANAHEIM, Calif.--Oct. 11, 1995--System Controls
        Inc. (OTC:SCTL) announced a management restructuring, including the
        proposed addition of three new board members, pending the approval
        of shareholders, and a plan to seek additional financing for current
        working capital needs and future expansion and acquisition plans.  
        


            The company also released the unaudited operating results of its
        United Kingdom subsidiaries.
        


        Status of Hogan Sales Co. Inc.
        


            On July 26, 1995, Hogan Sales filed for bankruptcy protection
        under Chapter 11 of the U.S. Bankruptcy Code.  System Controls is
        presently working under the guidelines of the United States trustee
        to prepare a reorganization plan, which will determine the final
        disposition of the Hogan Sales subsidiary.
        


            The board has also conducted a full investigation of the decline
        of Hogan and has concluded that Hogan's senior management had not
        been completely forthcoming in its reports and communications to the
        board.  Hogan's most significant problems, the discontinuation of
        the supply of its most important product line and excessive
        expenditure on its marketing network were not disclosed to the board
        until the problem had become had become critical.  
        


            Consequently, the board was not in position to make crucial
        decisions required to redress the developing situation.  When the
        promise of additional funding to save the Hogan situation failed to
        materialize, the decision was made to file for Chapter 11
        protection.  The board believes that it has some potential avenues
        of recovery, which it will pursue on behalf of System Controls.
        


        Management Restructuring
        


            In an effort to restore its market presence in North America and
        in the interest of implementing a new expansion plan for System
        Controls, the board has agreed to a management restructuring.  This
        restructuring is designed to rationalize its operations in North
        America with the addition of three new board members based in the
        United States.  
        


            The board believes this will strengthen the company's management
        team and better position the company for growth in North America.
        As part of this rationalization and restructuring of the board, the
        senior consultants Richard Taylor and Richard Corline have agreed to
        resign subject to the adoption of a plan that will satisfy the
        company's outstanding obligations to Alandale Overseas Ltd., which
        has provided financial support to the company.
        


            Pending the final approval of the shareholders, the board has
        proposed (i) that the board of directors be increased to six members
        and that three new directors offered by a group of majority
        shareholders be added to the board, and (ii) the authorized share
        capital of the company be increased to 20 million shares of common
        stock.  
        


            Once these items are approved, the board will seek additional
        equity capital in order to (i) raise necessary working capital for
        the United Kingdom subsidiaries, (ii) support the testing and
        marketing of the Thermasave product, (iii) finance the hiring of a
        new management team in the United States, and (iv) fund future
        acquisitions in North America.
        


        Unaudited Financial Results
        


            One consequence of the Hogan bankruptcy has been a delay in the
        completion of a full audit of System Controls.  The board believes
        that the audit can only be completed when the company and its
        auditors have an opportunity to review certain documents and reports
        maintained by Hogan and the company's consultant in the United
        States.  This review must be completed before reaching a conclusion
        on how the company's investment in Hogan should be reflected on the
        System Controls' financial statements.
        


            In the interim, so as to inform its shareholders of the
        operating performance of the United Kingdom trading subsidiaries,
        Ferrob Ltd. and Maintenance & Construction Services Ltd. (MCS),
        during this period, System Controls is announcing the following
        unaudited results for the periods ended June 30, 1994 and 1995.
        


            The results do not include a management charge, which will be
        added to the final audited statements for purposes of United Kingdom
        tax reporting.  The operating results are also subject to
        adjustments, which may be recommended by the auditors.  
        


            These results should not be read as a reflection of the overall
        financial position of System Controls, rather they are provided so
        that shareholders are informed as to the operating performance of
        the company's active subsidiaries.  The final audited numbers for
        System Controls will be adjusted significantly upon the final
        disposition of Hogan and when other North American expenses are
        included.


        
                              System Controls Inc.
               Results of United Kingdom Operating Subsidiaries
                           Fiscal Year Ended June 30
                         (all figures in U.S. dollars)
        
                               1995     % of Revs.    1994      % of Revs.
        Revenues               
          Ferrob                $2,122,021    69.5%    $2,220,485     74.5%
          MCS                      929,357    30.5%       761,602     25.5%
        
        Total Revenues           3,051,378   100.0%     2,982,087    100.0%
        
        Cost of Goods
          Ferrob                 1,279,301    41.9%     1,381,325     46.3%
          MCS                      683,729    22.4%       554,222     18.6%
        
        Total Cost of Goods      1,963,030    64.3%     1,935,547     64.9%
        
        Gross Profit
          Ferrob                   842,720    27.6%       839,160     28.1%
          MCS                      245,628     8.0%       207,380      7.0%
        
        Total Gross Profit       1,088,348    35.7%     1,046,540     35.1%
        
        Administration Expenses
          Ferrob                   598,776    19.6%       585,204     19.6%
          MCS                      194,247     6.4%       208,732      7.0%
        
        Total Administration
         Expenses                  793,023    26.0%       793,926     26.6%
        
        Operating Profit
          Ferrob                   243,944     8.0%       253,956      8.5%
          MCS                       51,381     1.7%        (1,342)     0.0%
        
        Total Operating Profit   $ 295,325     9.7%     $ 252,614      8.5%

        CONTACT:  Wilson, Sonsini, Goodrich & Rosati,
                  Adam D. Levy, 415/493-9300



Orange County Sued for Over $50 Million

        
        
            NEWPORT BEACH, Calif.--Oct. 11, 1995--Today 11
        local agencies which had deposited funds in trust with the Orange
        County Investment Pools each separately sued href="chap11.orange.html">Orange County for
        damages caused by Orange County, the Orange County Treasurer and
        various other Orange County officials.
        


            The suits allege not only some of the many wrongs committed by
        former County Treasurer Citron, but also failures in review and
        supervision by the County Board of Supervisors, the County Auditor-
        Controller and other county officials and employees.
        


            Highlighted in the local agencies' claims is the county's
        liability for (1) improper investment activity and reporting of
        Treasurer Citron, (2) failure of the County Board of Supervisors and
        County Auditor-Controller to monitor and audit the treasurer's
        activity as required by law, (3) stealing by the county of the
        Option B participant's earnings on their respective deposits to help
        the county conceal improper budget shortfalls and hide the riskiness
        of the OCIP investments, (4) misuse of the Option B participant's
        funds by the county to cover county cash flow shortages, (5) massive
        self-dealing by the county, including    selling junk securities to
        the OCIP at inflated values, and (6) failure of the county treasurer
        and others to keep the OCIP participants informed of the true facts
        regarding their monies.  The suits note false and misleading reports
        issued by the county treasurer to the OCIP participants, and gross
        mishandling of trust funds and intentionally false accounting and
        record keeping by the county treasurer and auditor controller.
        


            In many respects the suits reflect recent findings of the
        California Senate Special Committee on Local Governmental
        Investments, in which the committee report stated:


            Collectively the claims exceed $50,000,000.  These claims were
        reserved by these governmental bodies when they selected "Option B"
        under the Comprehensive Settlement Agreement reached among the
        Orange County Investment Pools participants and Orange County in the
        spring of this year.  Unlike the "Option A" participants, the Option
        B participants reserved their rights to sue the county and third
        parties to recover in full their pool shortfalls and damages.  The
        Option A participants currently have limited their settlement
        recoveries from the county to a share of the damages won in a
        collective effort with the county to enforce their collective claims
        against Merril Lynch and other third parties.  Option B participants
        are litigating similar claims independently.

        
            The Option B participants' lead litigator, David J. Brown of
        Brobeck," target=_new>http://www.brobeck.com">Brobeck,Phleger & Harrison,  
stated: "These suits are our clients'
        efforts to cause the county to assume full responsibility for its
        and its officials' wrongs.  Based upon past county statements and
        behavior, I expect the county to continue its attitude of official
        denial and avoidance of its responsibilities in a continuing effort
        to profit from its wrongs.  In particular, our clients expect Orange
        County to mount an aggressive `blame the victim' response in order
        to deflect attention from serious misconduct by persons still
        functioning as county officials and employees."
        


            The Option B participants' lead bankruptcy counsel, Larry Engel,
        noted: "The county's proposed plan of adjustment is expected to
        unfairly discriminate against the rebel victims by offering less
        than 50 percent payment of the claims by Option B participants over
        20 years without interest, while paying the bondholders, employees,
        vendors and other equal priority creditors 100 percent.  The law
        requires the county's plan to be fair and equitable.  That should
        not be difficult for a county with such enormous financial
        capabilities.  Unfortunately, the county appears to have a different
        objective."
        


            The suing agencies are: The City of Atascadero, the City of
        Buena Park, the City of Buena Park Redevelopment Agency, the City of
        Claremont, the City of Milpitas, the City of Montebello, the City of
        Montebello Redevelopment Agency, the City of Mountain View, the City
        of Santa Barbara, the City of Santa Barbara Redevelopment Agency,
        and the Santiago County Water District.
        


        CONTACT:  Brobeck," target=_new>http://www.brobeck.com">Brobeck,Phleger &  
Harrison,
                  David J. Brown, 714/752-7535,
                  G. Larry Engel, 415/442-0900




Treatment of unsecured creditors under EPE Fourth
        Amended Plan of Reorganization

        
            EL PASO, Texas--Oct. 11, 1995--El
Paso Electric
        Company
(EPE) announced Wednesday the following correction to its
        news release issued Sept. 29, 1995, with respect to the anticipated
        distributions to unsecured creditors under its Fourth Amended Plan
        of Reorganization (Plan) filed with the Bankruptcy Court on Sept.
        29, 1995.  
        


            The Sept. 29, 1995, news release erroneously reported that,
        "Under the Company's Plan of Reorganization, unsecured creditors
        will receive approximately $150 million in cash, $450 million of new
        secured debt, $100 million of preferred stock, and 85 percent of the
        reorganized Company's common stock."  
        


            As previously announced, the Plan provides for two alternative
        methods for the Company to emerge from bankruptcy.  
        


            Under the first alternative, which is based on a public offering
        of first mortgage bonds, the unsecured creditors will receive a
        combination of approximately $150 million in cash, approximately
        $270 million of first mortgage bonds, $100 million of preferred
        stock, and 85 percent of the reorganized Company's common stock.  
        


            Under the second alternative, which would be utilized if the
        Company were unable to consummate the proposed public offering, the
        unsecured creditors would receive a combination of approximately
        $430 million of unsecured debt securities, $100 million of preferred
        stock, and 85 percent of the reorganized Company's common stock.  
        


            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.


NOTE: National and regional media inquiries should
        be directed to Alan Lee Bunnell, Corporate Spokesperson for EPE, at
        915/543-5823.  Local media should call Henry Quintana Jr.,
        Supervisor of Corporate Communications, at 915/543-5824.  Financial
        analysts should call John Droubay, EPE Treasurer, at 915/543-5710.
        Stockbrokers and shareholders should direct questions to EPE's
        Office of the Secretary at 1-800-592-1634 or 1-800-351-1621.  
  

      
        CONTACT:  El Paso Electric
                  (National and Regional Media) Alan Lee Bunnell, Corporate
        
                    Spokesperson, 915/543-5823;
                  (Local Media) Henry Quintana Jr., supervisor - Corporate
                    Communications, 915/543-5824;
                  (Financial Analysts) John Droubay, treasurer, 915/543-5710
        
                           or
                  (Stockbrokers and shareholders) EPE's Office of the
                    Secretary, 800-592-1634 or 800-351-1621