/raid1/www/Hosts/bankrupt/TCR_Public/951114.MBX BANKRUPTCY CREDITORS' SERVICE, INC.



Cherokee settles all outstanding unsecured
        creditors' claims; 490,000 common shares outstanding to be canceled

        
        Company to have total of 5,973,000 common shares outstanding upon
        court approval

        
            VAN NUYS, Calif.--Nov. 14, 1995--href="chap11.cherokee.html">Cherokee Inc.
        (NASDAQ:CHKE) Tuesday announced that it had reached agreements in
        principle to settle all remaining unsecured creditors' claims
        arising from its 1994 Chapter 11 proceeding.
        


            The settlements included Cherokee's agreement to an allowed
        claim of approximately $1,239,000 on an outstanding $33,000,000
        claim filed by a jeans importer.  In accordance with Cherokee's 1994
        plan of reorganization, unsecured creditors receive 60.5504 shares
        of Cherokee common stock per $1,000 of allowed claim. Therefore, the
        unsecured creditor will receive 75,000 shares of common stock upon
        approval by the bankruptcy court.
        


            At the time of confirmation of Cherokee's 1994 reorganization
        plan Cherokee issued 1 million shares of its common stock to a
        disbursing agent for the benefit of its unsecured creditors.
        Cherokee will have resolved all claims of unsecured creditors by the
        transfer of approximately 510,000 shares from the agent to the
        creditors.  The balance, approximately 490,000 shares, will be
        returned to Cherokee for cancellation, which will reduce the number
        of outstanding shares of Cherokee common stock from 6,462,667 shares
        to approximately 5,973,000 shares.
        


            The cancellation of the 490,000 shares will occur as soon as the
        bankruptcy court approves the settlements. Cherokee believes the
        settlements will be approved by the bankruptcy court within 30 days.
        


            Cherokee, based in Van Nuys, is a marketer and licenser of the
        Cherokee brand products.  The company is pursuing retail direct
        licensing agreements with major retailers in addition to exclusive
        as well as non-exclusive wholesale and retail licensing operations
        in the United States and abroad.
        


            For more information on Cherokee Inc. via facsimile at no cost,
        simply call 800/PRO-INFO and dial client code 058.
        


        CONTACT:  Cherokee Inc.,
                  Cary Cooper, 818/951-1002, ext. 200
                     or
                  The Financial Relations Board,
                  Daniel Saks, 310/442-0599 (general information)
                  Suzy Lynde, 312/266-7800 (analyst contact)




UDC Homes, Inc. completes reorganization process
        with investment by DMB Property Ventures

        
            TEMPE, Ariz.,--Nov. 14, 1995--UDC
Homes, Inc.

        announced today that it successfully consummated its previously
        announced plan of reorganization and has emerged from Chapter 11
        bankruptcy.  As part of the plan, an affiliate of DMB Property
        Ventures Limited Partnership, a Phoenix-based real estate investment
        and development company, purchased 100% of the new equity of the
        Company and $30 million in the Company's new subordinated notes for
        $108 million.  
        


            Richard C.  Kraemer, president and chief executive officer of
        UDC, said, "We are delighted to have completed our reorganization
        process quickly and look forward to the relationship with DMB.  The
        combination of UDC's operating expertise, a simplified financial
        structure and the DMB relationship, provides UDC with strong
        capabilities to enhance our homebuilding operations in Arizona and
        California."  
        


            Drew M.  Brown, president of DMB, said, "We are pleased with our
        acquisition of the reorganized UDC and are confident that UDC will
        continue as one of the leaders of the nation's homebuilding
        industry."  
        


            A new board of directors of UDC took office today.  The new
        board consists of five members, Richard C.  Kraemer, president and
        chief executive officer, Drew M.  Brown and Bennett Dorrance of DMB,
        James McCabe of McCabe Capital Partners and Gadi Kaufmann of Robert
        Charles Lesser & Co.  
        


            In conjunction with the reorganization, the Company entered into
        new credit facilities of $150 million with a group of banks co-
        agented by Bank One, Arizona and Bankers Trust Company.  Additional
        credit facilities of $56 million were also entered into with Bank of
        America Arizona and Bank of America Illinois.  
        


            Under the terms of the plan of reorganization, the Company's
        senior notes, subordinated notes and its common and preferred stock
        were canceled.  The Company's senior noteholders will receive $83
        million in cash and $64.1 million in new senior notes; the Company's
        subordinated noteholders will receive $5.9 million in new senior
        notes and $2 million in new subordinated notes; and the holders of
        the Company's prime preferred exchangeable stock will receive trust
        certificates representing interests in $3 million in new
        subordinated notes.  Holders of other classes of the Company's
        common and preferred stock will receive no consideration.  In
        general, the secured and unsecured claims against the Company will
        be unimpaired. The Company also announced that its former directors
        and officers have reached an agreement to settle with plaintiffs who
        were purported representatives of a class of the former shareholders
        of the Company in lawsuits against certain of the Company's current
        and former officers and directors.  
        


            UDC Homes, Inc., headquartered in Tempe, Arizona, is a
        homebuilder, concentrating in move-up family and retirement housing
        with continuing operations in Arizona and California.  
        


            DMB, headquartered in Phoenix, Arizona, holds diversified
        investments with a substantial real estate portfolio and real estate
        operations.  
        


        CONTACT: Michael D. Singer,
                 Arthur Schmidt & Associates
                 212/953-5555
        




        DRUG EMPORIUM SIGNS NEW LENDING AGREEMENT WITH EXTENDED LINE OF
        CREDIT AND FINALIZES ACQUISITION OF F&M STORES IN DETROIT AND
        BALTIMORE

        
            COLUMBUS, Ohio, Nov. 14, 1995 -- Drug Emporium,
Inc.
        (Nasdaq-NNM: DEMP 3/4 announced today that it has entered into an
        expanded secured credit agreement with Bank One of Columbus,
        National City Bank and The Huntington National Bank.  The company
        also announced that its previously disclosed acquisition of href="chap11.fm.html">F&M [Distributors, Inc.]
        stores in Detroit and in Baltimore has been approved by the
        bankruptcy court.
        


            David L. Kriegel, Drug Emporium's chairman and chief executive
        officer, said that initial funds borrowed under the agreement will
        be used to fund the purchase of the newly acquired stores and to pay
        off borrowings under a previous line of credit with Bank One and
        National City Bank that were due to expire in 1998.
        


            He noted that the secured agreement consists of an interim
        revolving credit facility of up to $75 million and a total credit
        facility beginning April 1, 1996 of $60 million, consisting of a $45
        million revolving credit line and $15 million term loan.  The
        expanded credit facility expires in 1999.
        


            Mr. Kriegel commented, "We are pleased with the confidence the
        leading Columbus banks have shown in our management and their strong
        willingness to fund growth opportunity."  He also noted that Drug
        Emporium now has full operational control over the new stores, and
        that systems upgrades will begin after Christmas and will be
        completed during the first quarter.
        


            Drug Emporium, Inc. is a national chain of 140 company-owned
        stores, 117 operating under the Drug Emporium name and 23 currently
        operating under the F&M name.  The company also franchises an
        additional 94 Drug Emporium stores.  All 234 stores specialize in
        discount-priced health and beauty aids, cosmetics, greeting cards
        and prescription drugs.
        


        /CONTACT:  Timothy S. McCord, CFO, Drug Emporium, Inc.,
        614-548-7080, ext. 207, or Investor Relations, 614-548-7080, ext.
        451/




Ormico and Dufresnoy
        - announcement

        
            QUEBEC--Nov. 14, 1995--ORMICO EXPLORATION
        (ME:OMX) DUFRESNOY (ME:DUF) Ormico Exploration Ltee and Dufresnoy
        Industrial Minerals, Inc. (Dufresnoy) wish to announce that on
        November 9, 1995 their subsidiary href="internat.canada.dolobec.html">Dolobec Inc. accepted a bid made
        by Mazarin Mining Corporation Inc. (Mazarin) to purchase all its
        assets.  
        


            In return, Mazarin will assume all amounts due to the preferred
        creditor, i.e. the National Bank of Canada (approximately
        $1,225,000) and will pay $150,000 to Dolobec.  The $150,000 amount
        will be used to pay off Dolobec's ordinary creditor under the terms
        of a proposal to be submitted to and approved by creditors.  In
        addition, Mazarin's offer is subject to approval by its Board of
        directors and dependent on an agreement being reached between
        Mazarin and the National Bank for assumption of Dolobec's debts.  
        


            On May 13, 1995, Dolobec filed notice of intent to submit an
        offer to its creditors under the terms of Section 50.4 of the
        Bankruptcy and Insolvency Act.  Since then Dolobec has attempted
        through various parties to obtain the financing necessary for its
        recovery and for payment of its debts.  After negotiations, the most
        generous offer obtained was that made by Mazarin.  Once this
        transaction has been completed, Dolobec will be released of all its
        assets.  
        


            Substantial investments are required to enable Dolobec to
        increase productivity and sales.  Dufresnoy and Ormico were unable
        to provide such sums, either directly or indirectly.  
        


            Under the circumstances, Ormico is therefore fully withdrawing
        from Dolobec's activities and must completely redirect its affairs
        by making use of its other assets, i.e. mining properties and short-
        terms assets evaluated at approximately $939,110 as of September 30,
        1995.  
        


        CONTACT:  Ormico,
                  Claude St-Jacques, (418) 692-2678
                        
        




I.C.H. Corporation announces earnings

        
            DALLAS--Nov. 14, 1995--I.C.H.
Corporation
(OTC:
        ICHD), a Dallas-based insurance holding company, today announced its
        financial results for the three months ended September 30, 1995.
        For the quarter, the Company incurred a net loss on a consolidated
        basis of $174.9 million, which largely reflected a goodwill
        writedown and other non-cash accounting changes associated with the
        previously announced and currently pending sale of the Company's
        principal insurance subsidiaries.  For the third quarter of 1994,
        the Company recorded a net loss, before preferred dividend
        requirements, of $0.1 million.  On a per share basis, the Company
        reported a net loss of $3.79 per common share in the 1995 third
        quarter, versus a net loss of 8 cents per common share in the same
        period of 1994.  
        


            The 1995 third quarter results included a $140.9 million
        estimated loss on the sale of the Company's principal insurance
        subsidiaries, which consisted of writedowns of goodwill, deferred
        policy acquisition costs and the present value of future profits, as
        well as an increase in deferred income tax asset valuation
        allowances.  In addition, the results included a $1.7 million loss
        on the sales of two subsidiaries, Bankers Life Insurance Company of
        New York and Integrity National Life Insurance, completed during the
        quarter, $6.5 million in income tax charges pursuant to an agreed-
        upon settlement with the IRS relative to audits of the Company's
        current and former insurance subsidiaries for the years 1986 through
        1989, and additional tax provisions totaling $19.5 million.  
        


            As previously reported, on October 10, 1995, the Company and
        three of its noninsurance subsidiaries voluntarily filed petitions
        for reorganization under Chapter 11 of the U.S.  Bankruptcy Code in
        Dallas, Texas, and requested expedited approval from the Bankruptcy
        Court for the sale of its principal insurance subsidiaries,
        Southwestern Life Insurance Company, Union Bankers Insurance Company
        and Constitution Life Insurance Company to Shinnecock Holdings Inc.
        for net cash proceeds of approximately $202 million.  On October 20,
        the Bankruptcy Court approved a Competitive Offer Procedure by which
        interested parties may submit offers to compete with the offer of
        Shinnecock Holdings.  The Bankruptcy Court has a scheduled a hearing
        beginning November 28, 1995, to consider such additional offers, if
        any, and approval of the sales transaction.  
        


            The Company emphasized that none of its insurance subsidiaries
        is involved in the bankruptcy filing and that they continue to
        operate in the ordinary course of business, without any
        extraordinary regulatory supervision.  All of the Company's
        insurance subsidiaries are well-capitalized, with more than
        sufficient liquidity to fulfill all of their obligations to
        policyholders.  The Company continues to work closely with state
        insurance regulatory authorities, who remain supportive of the
        actions taken by ICH to protect policyholder interests.  
        


            For the nine months ended September 30, 1995, also largely
        reflecting the third-quarter accounting charges, the Company
        incurred a net loss of $186.7 million, compared to a net loss,
        before preferred dividend requirements, of $34.8 million in the
        first nine months of 1994.  The loss in the 1994 first nine months
        included a $46.4 pretax writedown of certain derivative
        collateralized mortgage obligations.  Pretax writedowns of such
        investments during the first nine months of 1995 totaled $3.4
        million, all of which were recorded in the 1995 third quarter.  
        


            On a per share basis, the Company incurred a net loss of $4.18
        for the first nine months of 1995, versus a loss of 97 cents in the
        comparable 1994 period.  
        

        
                            Segment Results
        
                                    Three Months Ended   Nine Months Ended
                                       September 30,       September 30,
                                    ------------------   -----------------
                                      1995      1994      1995      1994
                                     ------    ------    ------    ------
                                                  (In Millions)
        Business to be retained (1):             
         Individual life insurance        $ (1.1) $  0.9      $ (1.3) $  1.8
         Individual health insurance         1.0     0.9        (0.4)    5.1
         Group life and health              (0.7)   (1.4)       (2.1)
        (2.0)
         Accumulation products              (0.1)   (0.2)       (0.4)    0.0
                                      ------  ------      ------  ------
         Total                          (0.9)    0.2        (4.2)    4.9
                                      ------  ------      ------  ------
        Business to be divested (2):
         Individual life insurance           4.7     8.6        22.1    17.0
         Individual health insurance         1.2     3.8        (1.3)    7.2
         Accumulation products               0.5    (3.2)       (0.7)    1.9
                                      ------  ------      ------  ------
         Total                           6.4     9.2        20.1    26.1
                                      ------  ------      ------  ------
        Corporate                           (1.4)    1.9         1.5    16.2
                                      ------  ------      ------  ------
        
        Total pretax earnings before
        realized investment gains (losses),
        impairments of intangible assets,
        amortization of excess cost,
        interest expense and losses
        on sales of subsidiaries             4.1    11.3        17.4    47.2
        
        Realized investment gains (losses)  (0.7)    3.7         3.9
        (41.4)
        
        Amortization of excess cost         (0.6)   (2.4)       (1.9)
        (7.2)
        
        Corporate interest expenses        (11.4)  (11.5)      (34.1)
        (36.7)
        
        Impairment of excess cost          (75.8)              (75.8)
        
        Impairment of deferred policy
          acquisition costs and present
          value of future profits          (26.6)              (26.6)
        
        Losses on sales of subsidiaries     (1.7)               (1.7)
                                      ------  ------      ------  ------
        
        Total pretax earnings (loss)      (112.7)    1.1      (118.8)
        (38.1)
        
        Income tax expense (credit)         62.2     1.2        67.9
        (3.3)
                                      ------  ------      ------  ------
        
        Net Loss                         $(174.9) $ (0.1)    $(186.7)
        $(34.8)
                                      ------  ------      ------  ------
        
        (1) Represents business of companies to be retained (Bankers
        Multiple
        Line, Philadelphia American Life, Modern American Life and
        Western Pioneer Life).
        
        (2) Represents business divested in connection with the sales of
        Bankers
        Life of New York and Integrity National and expected to be divested
        in connection with the proposed sales of Southwestern Life, Union
        Bankers, Constitution Life and Marquette National Life.

        
            In the third quarter of 1995, the Company's individual life
        insurance segment reflected pre-tax earnings of $3.6 million, as
        compared to earnings of $9.5 million for the same period in 1994.
        The decline in earnings between the two periods was due, in part, to
        an increase in mortality, which can vary significantly from period
        to period.  On a year-to-date basis, profits of the individual life
        insurance segment totaled $20.8 million, up 11 percent over the
        comparable period in 1994, primarily as a result of improvements in
        both investment yields and mortality experience.  

        
            The individual health insurance segment reported pre-tax
        earnings of $2.2 million in the 1995 third quarter compared to
        earnings of $4.7 million in the third quarter of 1994.  The 1995
        third quarter results were a significant improvement over the first
        two quarters of 1995, during which the individual health insurance
        segment reported aggregate losses of $3.9 million.  The improvement
        in the 1995 third quarter was attributable primarily to a decrease
        in incurred benefits, as the ratio of individual health benefits to
        earned premiums "loss ratio"  declined to 70.0 percent compared to
        79.2 percent during the first six months of 1995.  As compared to
        the 1994 third quarter, the ratio loss in the 1995 third quarter
        increased from 67.5 percent to 70.0 percent.  On a year-to-date
        basis, profits of the individual health insurance segment declined
        from $12.3 million in the first nine months of 1994 to a loss of
        $1.7 million in the comparable 1995 period.  The loss ratio on a
        year-to-date basis increased to 76.2 percent as compared to 68.8
        percent for the comparable period in 1994.  The increases in the
        loss ratios for both the three-month and the nine-month periods
        reflects primarily the effects of delays encountered in obtaining
        premium increases on the Company's Medicare supplement line of
        business.  The majority of the states in which the Company's
        insurance subsidiaries write Medicare supplement business have now
        approved premium increases.  

        
            The accumulation products segment reported a $0.4 million pre-
        tax profit in the 1995 third quarter, as compared to a loss of $3.4
        million for the comparable 1994 period.  The profit in the 1995
        third quarter represented a significant improvement over the $1.5
        million loss incurred during the first six months of 1995.
        Accumulation account balances of the Company's insurance
        subsidiaries declined significantly during the 1995 third quarter
        with the maturity and scheduled withdrawal of guaranteed investment
        contracts (GIC's) totaling $348.3 million.  The rate credited to
        such GIC's had been indexed to the Standard & Poor's 500 Stock
        Composite Average, and the profitability of this product had varied
        widely from period to period.  

        
            The group insurance segment reported a pre-tax loss of $0.7
        million in the 1995 third quarter as compared to a loss of $1.4
        million for the same period in 1994.  On a year-to-date basis, the
        group segment incurred a loss of $2.1 million, as compared to a $2.0
        million loss for the same period in 1994.  The Company is continuing
        its efforts to improve profitability in its group business through
        downsizing and other steps, but actual expenses continue to exceed
        margins provided in the pricing of the Company's products.  The
        Company is currently seeking to identify parties interested in
        acquiring its group insurance operations.  
   

     
            The corporate segment, which includes investment income at the
        parent company and earnings on surplus investments, incurred a $1.4
        million pre-tax loss in the 1995 third quarter compared to earnings
        of $1.9 million in the 1994 third quarter.  The loss incurred in the
        1995 third quarter resulted from an increase in professional fees
        associated with the Company's recent restructuring efforts.  On a
        year-to-date basis, the corporate segment reported earnings of $1.5
        million in 1995, as compared to earnings of $16.2 million in 1994.
        In addition to the third-quarter restructuring-related costs,
        earnings of the corporate segment were adversely affected in the
        1995 second quarter by a $3.0 million litigation settlement.  The
        corporate segment recorded a non-recurring $8.7 million gain on the
        termination of reinsurance arrangements with a former affiliate in
        the second quarter of 1994.


        
                              New Business Sales
                            (Paid For New Premium)
                                    
                                   Three Months Ended    Nine Months Ended
                                      September 30,        September 30,
                                   ------------------    -----------------
                                     1995      1994       1995      1994
                                    ------    ------     ------    ------
                                                (In Millions)
        Business to be retained (1):             
         Individual life insurance       $  0.6  $  2.5       $  3.3  $  9.4
         Group life and health              0.3     0.9          0.8     7.6
        Business to be divested (2):
         Individual life insurance          2.4     3.7         21.0    15.5
         Individual health insurance        8.8     8.8         27.1    29.3
         Accumulation products              4.2    13.8         27.0    45.1
                                     ------  ------       ------  ------
                                     $ 16.3  $ 29.7       $ 79.2  $106.9
                                     ------  ------       ------  ------
                                     ------  ------       ------  ------
        
        (1) Represents business of companies to be retained (Bankers
        Multiple
        Line, Philadelphia American Life, Modern American Life and Western
        Pioneer Life).
        
        (2) Represents business divested in connection with the sales of
        Bankers
        Life of New York and Integrity National and expected to be
        divested in connection with the proposed sales of Southwestern Life,
        Union Bankers, Constitution Life and Marquette National Life.  
        Included in the individual life insurance business divested is
        annuity production of Bankers Life of New York totaling $10.2
        million and $4.0 million for the six months ended June 30, 1995
        and 1994, respectively.
        

            New business sales for the 1995 third quarter and nine months
        were lower than for the comparable prior-year periods.  Sales of
        individual life insurance and accumulation products, which are
        generally rating sensitive, have been adversely affected by
        downgrades in early 1995 of the claims paying ratings of the
        Company's insurance subsidiaries.  Individual health insurance
        sales, which are less ratings sensitive, have been affected by
        delays in obtaining regulatory approvals for certain products that
        the Company had planned to market beginning in early 1995.  The
        decline in group insurance sales reflects the Company's decision to
        deemphasize this segment of its business.


        
                          Withdrawals and Surrenders (1)
                                    
                                   Three Months Ended    Nine Months Ended
                                      September 30,        September 30,
                                   ------------------    -----------------
                                   1995          1994    1995         1994
                                   -----        -----    -----       -----
                                                (In Millions)
        Individual life insurance:               
         Retained companies (2)        $  1.3      $  1.2    $  3.2     $
        4.0
         Companies to be divested (3)    22.0        19.2      72.7
        61.3
                                   ------      ------    ------     ------
         Total                     $ 23.3      $ 20.4    $ 75.9     $ 65.3
                                   ------      ------    ------     ------
                                   ------      ------    ------     ------
        
        Accumulation products:                                    
         Guaranteed investment contracts (3):             
          Scheduled maturities         $348.3      $ 18.8    $363.1     $
        68.8
          Early withdrawals                --          --       6.2
        --
         Annuities of retained
          companies (2)                   0.9         0.6       2.0
        1.7
         Annuities of companies
          to be divested (3)             18.5         2.6      91.9
        28.6
                                   ------      ------    ------     ------
                                   $367.7      $ 22.0    $463.2     $ 99.1
                                   ------      ------    ------     ------
                                   ------      ------    ------     ------
        
        (1) Represents cash withdrawals of policyholder account balances and
        
        surrenders of life insurance policies, including partial
        surrenders, net of applicable surrender charges and penalties.
        
        (2) Represents business of companies to be retained (Bankers
        Multiple
        Line, Philadelphia American Life Modern American Life and Western
        Pioneer Life).
        
        (3) Represents business divested in connection with sales of Bankers
        
        Life of New York and Integrity National and expected to be divested
        in connection with the proposed sales of Southwestern Life, Union
        Bankers, Constitution Life and Marquette National Life.


            Withdrawals and surrenders for the 1995 third quarter and nine
        months are significantly higher than in the comparable 1994 periods;
        however, with the exception of the scheduled maturities of GIC's
        indexed to the S&P 500, withdrawals and surrenders in the 1995 third
        quarter were down significantly as compared to the 1995 second
        quarter.  Individual life insurance surrenders were down $3.4
        million in the 1995 third quarter, or 12.7 percent, as compared to
        the 1995 second quarter, while annuity surrenders were down $26.3
        million, or 57.5 percent.  The Company reported there has been no
        appreciable increase in surrender and withdrawal activity following
        the filing of ICH's Chapter 11 petition..  

        
            In a separate matter, the Company reported it had been notified
        that effective November 15, 1995, ICH's common and preferred stocks
        will be struck from listing and registration on the American Stock
        Exchange.  The Company's common stock is currently trading over-the-
        counter under the ticker "ICHD,"  and similar trading may develop
        for ICH's preferred stock.  


        
                            I.C.H. CORPORATION
              (Debtor in Possession as of October 10, 1995)
                       CONSOLIDATED BALANCE SHEETS
                              (In Thousands)
                               (Unaudited)
                                  ASSETS      
                                           September 30,     December 31,
        Investments:                               1995              1994
        
                                           ------------      -----------
         Fixed maturities:
          Available for sale at fair value      $   133,494       $
        376,403
          Held to maturity at amortized cost         14,612
        15,915
          Held by subsidiaries to be sold at
           amortized cost in 1995 and fair
           value in 1994                          1,157,651
        1,262,464
         Equity securities, at fair value             6,250
        10,812
         Mortgage loans on real estate,
          at amortized cost                         118,706
        127,047
         Real estate, at lower of cost or
          fair value                                 48,704
        57,068
         Policy loans                               154,422
        172,108
         Collateral loans                            70,293
        76,466
         Investments in limited partnerships         34,977
        42,027
         Cash and short-term investments            208,523
        229,522
         Other invested assets                        7,936
        9,666
                                            -----------       -----------
          Total investments                       1,955,568
        2,379,498
        Due from reinsurers                         193,070
        236,272
        Notes and accounts receivable and
         uncollected premiums                         5,055
        6,978
        Accrued investment income                    25,717
        31,825
        Deferred policy acquisition costs           133,994
        208,952
        Present value of future profits of
         acquired business                           58,306
        68,805
        Deferred income tax asset                     5,764
        84,862
        Excess cost of investments in subsidiaries
         over net assets acquired,
         net of accumulated amortization
        80,500
        Other assets                                 55,933
        70,032
                                            -----------       -----------
                                            $ 2,433,407       $ 3,167,724
                                            -----------       -----------
                                            -----------       -----------
        
                LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
        
        Insurance liabilities:
         Future policy benefits and other
          policy liabilities                    $   767,862       $
        894,100
         Universal life and investment
          contract liabilities                    1,201,724
        1,692,013
        Notes payable:
         Due within one year                         59,806
        59,802
         Due after one year                         334,122
        330,592
        Federal income taxes currently payable       60,921
        39,628
        Other liabilities                           103,751
        116,251
                                            -----------       -----------
                                              2,528,186         3,132,386
                                            -----------       -----------
        Commitments and contingencies
        Stockholders' equity (deficit):
         Preferred stock                            199,997
        199,997
         Common stock                                48,755
        48,983
         Additional paid-in capital                 125,872
        126,583
         Net unrealized investment gains
          (losses), net of deferred income taxes        874
        (55,359)
         Accumulated deficit                       (465,959)
        (279,265)
                                            -----------       -----------
                                                (90,461)           40,939
         Notes receivable collateralized by
          common stock                                 (512)
        (1,795)
         Treasury stock, at cost                     (3,806)
        (3,806)
                                            -----------       -----------
                                                (94,779)           35,338
                                            -----------       -----------
                                            $ 2,433,407       $ 3,167,724
                                            -----------       -----------
                                            -----------       -----------
        
                               I.C.H. CORPORATION
                 (Debtor in Possession as of October 10, 1995)
                   CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
                     (In Thousands, Except Per Share Data)
                                  (Unaudited)
        
                                  Three Months Ended    Nine Months Ended
                                     September 30,        September 30,
                                  ------------------    -----------------
                                    1995      1994       1995       1994
                                   ------    ------     ------     ------
        Income:
         Premium income and other
          considerations            $  83,134  $ 103,001  $ 273,161  $
        332,706
         Net investment income         44,306     56,027    188,895
        138,031
         Realized investment gains
          (losses)                       (703)     3,725      3,856
        (41,376)
         Equity in earnings of limited
          partnerships                  3,655        937      5,566
        1,780
         Other income (loss)             (332)     3,266      5,650
        14,591
                                ---------  ---------  ---------  ---------
                                  130,060    166,956    477,128    445,732
                                ---------  ---------  ---------  ---------
        
        Benefits, expenses and costs:
         Policyholder benefits         80,780    103,711    322,129
        293,980
         Amortization of deferred
          policy acquisition costs
          and present value of future
          profits                      13,642     12,277     42,578
        37,672
         Other operating expenses      32,204     35,922     91,104
        108,271
         Amortization of excess cost      607      2,397      1,870
        7,193
         Interest expense              11,374     11,581     34,125
        36,690
         Impairment of excess cost     75,830                75,830
         Impairment of deferred policy
          acquisition costs and present
          value of future profits      26,603                26,603
         Net losses on sales of
          subsidiaries                  1,721                 1,721
                                ---------  ---------  ---------  ---------
                                  242,761    165,888    595,960    483,806
                                ---------  ---------  ---------  ---------
        
        Operating earnings (loss)
         before income taxes         (112,701)     1,068   (118,832)
        (38,074)
        Income tax expense (credit)    62,167      1,213     67,862
        (3,298)
                                ---------  ---------  ---------  ---------
        Net loss                     (174,868)      (145)  (186,694)
        (34,776)
        Less dividends on preferred
         stock                                    (3,500)
        (11,325)
                                ---------  ---------  ---------  ---------
        Net loss applicable to common
         stock                      $(174,868) $  (3,645) $(186,694) $
        (46,101)
                                ---------  ---------  ---------  ---------
                                ---------  ---------  ---------  ---------
        Weighted average shares
         outstanding               47,087,117 47,261,563 47,141,707
        47,654,310
                               ---------- ---------- ---------- ----------
                               ---------- ---------- ---------- ----------
        
        Net loss per common share   $   (3.79) $    (.08) $   (4.18) $
        (.97)
                                ---------  ---------  ---------  ---------
                                ---------  ---------  ---------  ---------
        
                              I.C.H. CORPORATION
                 (Debtor in Possession as of October 10, 1995)
                       PARENT COMPANY ONLY BALANCE SHEET
                              September 30, 1995
                                (In Thousands)
                                 (Unaudited)
                                    
                                   Assets
        Cash and short-term investments                        $  44,390
        Investment in subsidiaries to be sold,
         at contract sales price subject to closing
         adjustments                                             202,000
        Investment in Facilities Management
         Installation, Inc                                         9,429
        Investment in insurance subsidiaries to be retained       92,957
        Collateral loan (notes receivable)                        27,000
        Real estate                                                4,955
        Federal income taxes recoverable                             786
        Tax indemnity recoverable                                 24,600
        Other assets                                               5,387
                                                           ---------
         Total assets                                          $ 411,504
                                                           ---------
                                                           ---------
        
              Liabilities and Stockholders' Equity (Deficit)
        Secured claims:
         10% Debentures due 2001 subject to offset
          by notes receivable                                  $  21,585
         Mortgages payable secured by real property                  324
         Claims subject to compromise:
          11-1/4% Senior Subordinated Notes due 1996             256,101
          11-1/4% Senior Subordinated Notes due 2003              91,161
           9-1/2% unsecured note payable due 1996                 21,900
          Accrued interest on notes payable                       15,857
          Other liabilities                                       18,577
          Payable to Facilities Management Installation, Inc       7,262
         Federal income taxes                                     73,516
                                                           ---------
          Total liabilities                                      506,283
         Stockholders' equity (deficit)                          (94,779)
                                                           ---------
         Total liabilities and stockholders'
          equity (deficit)                                     $ 411,504
                                                           ---------
                                                           ---------
        (a) Excludes $21,500,000 of 11-1/4% Senior Subordinated Notes held
        by ICH's subsidiary, Constitution Life Insurance Company, which
        Notes are expected to be distributed to ICH.
        
         
                             I.C.H. CORPORATION
                (Debtor in Possession as of October 10, 1995)
             RECONCILIATION OF PARENT COMPANY ONLY BALANCE SHEET
                TO AMOUNTS REFLECTED IN CHAPTER 11 PETITION
                             September 30, 1995
                               (In Thousands)
                                (Unaudited)
        
        Assets per Chapter 11 petition                             $ 405,989
        
        Items in Chapter 11 petition not included in
         financial statements:   
         Value of profits interest in federal savings bank
        (18,000)
         Items in financial statements not included in petition:
          Estimated adjustment in sales price of subsidiaries
        (11,000)
          Deferred issuance costs of subordinated debt                   433
          Differences in carrying value of retained subsidiaries      34,277
          Other miscellaneous
        (195)
                                                               ---------
           Assets per financial statements                     $ 411,504
                                                               ---------
                                                               ---------
        
        Liabilities per Chapter 11 petition                        $ 510,000
        
        Items in Chapter 11 petition not included in financial
         statements:          
         11-1/4% Senior Subordinated Notes due 1996 held by
          Constitution
        (21,500)
         Erroneous "double counting" of notes payable
        (3,185)
        Items in financial statements not included in petition:
         Discounting of 10% Debentures due 2001 for reporting
          purposes
        (8,415)
         Additional federal income tax liability                      12,745
         State and local tax accruals not yet due                      2,310
         Liability for executory contracts not yet due                 5,129
         Liabilities for post retirement life and health benefits      4,903
         Accrued prepetition interest for month of September           3,883
         Accrual of professional fees for month of September           3,014
         Other miscellaneous
        (2,601)
                                                               ---------
        Liabilities per financial statements                       $ 506,283
        
                                                               ---------
                                                               ---------
       

        CONTACT:  I.C.H. Corporation, Dallas,
                  Gerald J. Kohout, 214/954-7414