I.C.H. Corporation makes announcement

            DALLAS--Jan. 3, 1996--I.C.H.

        (ICHD--OTC) announced today that Susan A. Brown and Rodney D. Moore
        have been elected directors of the Company, replacing Glenn H.
        Gettier, Jr. and Keith A. Tucker, who have resigned.  

            The Company also announced that Brown has been elected chairman
        of the board, co-chief executive officer, chief financial officer
        and treasurer of ICH and that Moore has been elected president, co-
        chief executive officer and corporate secretary of ICH.  They
        replace all of the previously elected executive officers of the
        Company, all of whom, including Gettier, became officers of
        Southwestern Financial Corporation, a privately held insurance
        holding company, upon its purchase of ICH's principal insurance
        subsidies under a bankruptcy court supervised process that was
        completed in December.

            Previously  Brown served as chief executive officer of the
        reorganized First RepublicBank Corporation and was its chairman and
        chief executive officer when the company was a debtor in possession
        under Chapter 11 of the bankruptcy code.  Moore has been serving the
        Company as a special consultant in connection with, among other
        things, the sale to Southwestern Financial.  ICH has been operating
        as a debtor in possession since its voluntary Chapter 11 bankruptcy
        filing on October 10, 1995.  

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


            NEW YORK, Jan. 3, 1996 -- Stuart Held,
President/C.E.O. of
        TUT Services, Inc., (the company who purchased the assets of href="chap11.47st.html">47st.
in Bankruptcy court) announced today the "joining of two
        financially supportive companies to TUT Services, Inc.  The first,
        the TUTTNAUER COMPANY, an Israeli Stock Market listed company doing
        business in the medical field and the second, TRACT FINANCIAL, LTD.,
        is an offshore Investment Company based in Hong Kong."

            Mr. Held continued, "The TUTTNAUER COMPANY was an investor of
        inventory in 47st. Photo and took over its operation.  The company
        had the consent of the Bankruptcy court, when a series of losses of
        inventory could not be found or explained.  TUT Services, Inc., a
        wholly owned subsidiary, was then directed to run 47st. Photo under
        a license with the Chapter-11 trustee.

            TUT Services Inc. (TUTTNAUER COMPANY) exercised its option to
        purchase the assets of 47st. Photo and won the company in Bankruptcy
        court, December 14, 1995.

            Since then, the TUTTNAUER COMPANY joined forces with TRACT
        FINANCIAL, LTD., and for financial consideration, has given control
        of TUT Services to TRACK FINANCIAL.  TRACT has already assisted in
        funding TUT Services holiday seasonal purchasing."

            Mr. Held added, "the financial support we have already received
        from TRACT is only the beginning.  We anticipate a store expansion
        and acquisition program in addition to a stock market offering in
        the very near future.  47st. Photo will once again rise and take its
        position as one of the leading innovators of the consumer discount

            47st. Photo is a New York City landmark, located in its original
        "super store" at 115 West 45 Street, New York, NY 10036, between
        Broadway and Sixth Avenues.  The thirty year old retailer has a
        dynamic level of name recognition throughout the world.  The
        company's yearly sales in the last three years range from
        $80,000,000 to $100,000,000 per annum.

            NOTE:  "The World Shops 47st. Photo - So Should You!" is 47st.
        Photo's trademark.

        /CONTACT:  Stuart Held, President and CEO of TUT Service, Inc.,
        212-398-1530, or Fax: 212-302-6460/


            NEW YORK, Jan. 4, 1996 -- Fitch assigns a
preliminary 'BB'
        rating to El Paso Electric Co.'s
(EPE) proposed new first mortgage
        bonds to be issued under the company's pending bankruptcy
        reorganization plan. An anticipated $100 million new preferred stock
        issue is rated 'B+'. Once the reorganization is complete, EPE's
        credit trend will be stable. The Fitch Competitive Indicator (FCI)
        is 3.58, versus an industry average of 2.71, placing the utility at
        the lower end of the Fitch scale.

            EPE is currently in bankruptcy. The bankruptcy court will begin
        confirmation hearings on the company's Plan of Reorganization on
        January 9, 1996. Fitch's new ratings are predicated on approval of
        the plan essentially in its present form.

            The ratings reflect the following company strengths: a 10-year
        rate freeze covering EPE's Texas service area, growing retail power
        demands, and sufficient cash flow over the next five years to cover
        debt and preferred service, fund capital expenditures internally,
        and reduce outstanding long-term debt. EPE has also arranged a
        committed working capital credit facility to back up any
        extraordinary cash requirements after reorganization.

            Offsetting credit risks include extremely high initial debt
        leverage, high nuclear operating exposure, and the threat of
        municipalization of EPE's Las Cruces, New Mexico, distribution
        facilities, which represent approximately 8% of the business.

            Fitch will provide additional information and rating updates as
        the reorganization process proceeds.

        /CONTACT:  Ellen Lapson, 212-908-0504, or John Watt, 212-908-0523,
        both of Fitch/


            -12.19% Senior Notes to be Redeemed; $550 Million
                         Bank Financing Underway

            TAMPA, Fla., Jan. 4, 1996 -- Walter
Industries, Inc.

        (Nasdaq: WLTR) today reported results for its fiscal second quarter
        and first half ended November 30, 1995.

            Net sales and revenues for the quarter totaled $378.1 million, a
        four percent increase over revenues of $363.3 million a year
        earlier. Earnings Before Interest, Taxes, Depreciation and
        Amortization (EBITDA) increased three percent to $87.3 million
        versus $84.7 million in the prior period.  Earnings are reported on
        the basis of EBITDA to reflect the company's operating performance
        before interest costs associated with its post-Chapter 11
        reorganization capital structure and ongoing goodwill amortization

            First half sales and revenues totaled $758.3 million, eight
        percent higher than prior year revenues of $704.0 million.  EBITDA
        was 11 percent higher at $176.9 million versus $159.5 million in the
        prior year first half.

            EBITDA for the second quarter was higher in each of the
        company's four operating groups, and revenues were higher in the
        Water and Waste Water Transmission Products Group and the Natural
        Resources Group.

            The company's Homebuilding and Related Financing Group generated
        two percent higher EBITDA despite fractionally lower revenues.  The
        income gain reflected margin improvement from higher home sales
        prices and lower lumber costs, while the decrease in revenues
        resulted from lower unit completions versus the prior year.

            The Water and Waste Water Transmission Products Group provided
        two percent higher EBITDA on modestly higher revenues, reflecting
        gains in selling prices for the company's ductile iron pressure pipe
        and fittings, which were partially offset by lower sales volumes and
        higher raw material costs.

            Results of the Industrial and Other Products Group were mixed.
        EBITDA increased 27 percent, benefiting from improved margins at the
        company's aluminum operations.  Revenues declined three percent,
        principally due to lower sales volume of aluminum products and
        window components.

            The Natural Resources Group reported four percent higher EBITDA
        on 23 percent higher revenues.  The Group benefitted from higher
        coal and methane gas shipments, greater outside gas and timber
        royalties, and proceeds from the sale of gas royalty interests in
        certain mineral properties.  Income was constrained by higher
        production costs stemming from various geological problems at the
        company's coal mines during the quarter.

            In the final days of the second quarter, the company also
        experienced an unexpected  recurrence of spontaneous "hot spot"
        conditions at the Jim Walter Resources' No. 5 Mine, the smallest of
        the company's four deep underground mines in Alabama. Hot spots
        have occurred periodically at the No. 5 Mine in past years and have
        all been successfully contained.  They occur when iron pyrite, a
        mineral encountered during the mining process, is exposed to oxygen
        and spontaneously combusts.  The latest hot spot occurrence caused
        no injuries and had no material impact on results in the second
        quarter. Efforts throughout December to contain and extinguish the
        fire appear to have been successful; however, the mine has been shut
        down while company and mine safety officials assess the timing for
        resuming production. Although the company's three other mines remain
        in full production, results of the Natural Resources Group are now
        expected to be adversely impacted in the fiscal third quarter which
        ends February 29 as a result of the higher costs associated with the
        problems at Mine No. 5.

            Capital expenditures were $19.9 million in the second quarter
        and $33.9 million for the six months, compared with $15.0 million
        and $29.7 million, respectively, for the comparable 1994 periods,
        reflecting the company's ongoing investment in its businesses.

            Interest expense in the second quarter increased $18.6 million,
        or 51 percent over the same year ago period, stemming from the
        company's new capital structure following its emergence from Chapter
        11 reorganization in March 1995.  Largely due to this higher
        expense, the company incurred a net loss of $1.1 million, or two
        cents per share, for the current quarter, compared with net income
        of $4.9 million a year earlier.  (Prior year per share amounts are
        not meaningful in light of the recapitalization.)

            In addition, net results were after goodwill amortization of
        $9.7 million, equal to 19 cents per share, in the current quarter,
        and $10.3 million in the prior year period.

            In a move to substantially lower its interest costs, the company
        in December launched a $550 million bank financing led by
        NationsBank. Proceeds from the financing will be used to redeem $490
        million of 12.19% Senior Notes Due 2000 and replace an existing $150
        million bank credit facility - both incurred in conjunction with the
        company's emergence from Chapter 11 reorganization last March.

            Redemption notices were sent to holders of the Senior Notes on
        December 22 with a January 22, 1996 redemption date.  The call price
        is 101% of principal plus accrued and unpaid interest to that date.

            The refinancing consists of a $375 million revolving credit
        facility, a six-year $125 million term loan and a $50 million seven-
        year term loan.  Interest savings from the refinancing are expected
        to exceed $20 million annually.

            Note to Editor: Walter Industries, Inc., based in Tampa,
        Florida, is a diversified, multi-subsidiary corporation with major
        interests in two business areas:  homebuilding and financing and
        industrial operations. Walter Industries and its subsidiaries employ
        more than 7,800 at manufacturing facilities and sales offices
        throughout the United States, generating sales and revenues in
        excess of $1.4 billion annually.

                                        Quarter Ended November 30,
        ($ in thousands, except
        per share amount)                1995             1994
        Net sales and revenues (a)  $   378,136     $   361,654
        Cost of sales                   249,794         237,737
        Depreciation                     18,925          17,930
        Selling, general
         and administrative              34,214          32,790
        Postretirement health benefits    6,843           6,435
        Amortization of goodwill          9,744          10,316
        Earnings before interest and taxes58,616         56,446
        Chapter 11 costs, net (a)         ---             6,127
        Interest                         54,912           36,290
         Pretax income                    3,704          14,029
        Income tax expense           (    4,798)   (      9,109)
         Net income (loss)          $(    1,094)   $       4,920
        Net income (loss)
         per share                  $(      .02)          NM (b)
        Number of shares of common stock
         used in calculation
         of net loss per share        50,988,626          NM (b)
            (a) -- Interest income from Chapter 11 proceedings ($1,676 in
        1994) is excluded from sales and revenues and included in net
        Chapter 11 costs for purposes of determining earnings before
        interest and taxes.
            (b) - Not meaningful due to change in capital structure which
        occurred as a result of the company's reorganization.
                                         Six Months Ended November 30,
        ($ in thousands, except
         per share amount)                 1995              1994
        Net sales and revenues (a) $   758,284        $   700,876
        Cost of sales                  499,627            461,856
        Depreciation                    37,442             34,687
        Selling, general
         and administrative             68,256             66,437
        Postretirement health benefits  13,522             13,082
        Amortization of goodwill        19,969             20,884
        Earnings before interest
         and taxes                     119,468            103,930
        Chapter 11 costs, net (a)           ---             8,858
        Interest                        109,493            72,753
         Pretax income                   9,975             22,319
        Income tax expense         (    10,828)    (      15,966)
         Net income (loss)         $(      853)     $       6,353
        Net income (loss)
         per share                     $(      .02)       NM  (b)
        Number of shares of common stock
         used in calculation
         of net loss per share      50,988,626            NM  (b)
            (a) -- Interest income from Chapter 11 proceedings ($3,094 in
        1994) is excluded from sales and revenues and included in net
        Chapter 11 costs for purposes of determining earnings before
        interest and taxes.
            (b) - Not meaningful due to change in capital structure which
        occurred as a result of the company's reorganization.
        ($ in thousands)
        SALES AND REVENUES:              Quarter Ended November 30,
                                          1995              1994
        Homebuilding and
         Related Financing         $   102,702       $   103,206
        Water and Waste
         Water Transmission Products   110,108           109,689
        Natural Resources               97,998            79,613
        Industrial and Other Products   66,827            68,953
        Corporate                          501             1,869
                                   $   378,136       $   363,330
        EBITDA: (a)
        Homebuilding and
         Related Financing (b)    $     54,723      $     53,857
        Water and Waste
         Water Transmission Products    14,926            14,596
        Natural Resources               15,912            15,341
        Industrial and Other Products    6,532             5,158
        Corporate                  (     4,808)     (      4,260)
                                   $    87,285      $     84,692
            (a) -- Reflects addback of depreciation and amortization of
        goodwill, as follows:
                                           1995             1994
        Homebuilding and
         Related Financing          $     8,483        $    9,081
        Water and Waste
         Water Transmission Products      7,559             7,452
        Natural Resources                 9,959             9,294
        Industrial and Other Products     3,470             3,238
        Corporate                   (      802)      (       819)
        Total                      $     28,669      $     28,246
            (b) -- Before deducting interest expense of $32,596 in 1995 and
        $31,197 in 1994.
                     RESULTS BY OPERATING GROUP
        ($ in thousands)
        SALES AND REVENUES:            Six Months Ended November 30,
                                           1995             1994
        Homebuilding and
         Related Financing          $  203,466       $  206,288
        Water and Waste
         Water Transmission Products   229,556          215,023
        Natural Resources              187,513          148,225
        Industrial and Other Products  136,386          130,904
        Corporate                        1,363            3,530
                                   $   758,284       $  703,970
        EBITDA: (a)
        Homebuilding and
         Related Financing (b)       $   109,196     $  105,702
        Water and Waste
         Water Transmission Products      30,690         28,759
        Natural Resources                 33,077         22,008
        Industrial and Other Products     12,029         10,154
        Corporate                    (     8,113)   (     7,122)
                                    $    176,879   $    159,501
            (a) -- Reflects addback of depreciation and amortization of
        goodwill, as follows:
                                            1995           1994
        Homebuilding and
         Related Financing               $17,419         $18,387
        Water and Waste
         Water Transmission Products      14,506          14,254
        Natural Resources                 20,000          18,085
        Industrial and Other Products      7,100           6,497
        Corporate                     (    1,614)     (    1,652)
        Total                            $57,411         $55,571
            (b) -- Before deducting interest expense of $64,249 in 1995 and
        $62,317 in 1994.
        ($ in thousands)                        November 30,
                                           1995             1994
        Cash and short-term
         investments              $     78,841      $   190,844
        Short-term investments,
         restricted                    150,126           95,260
        Instalment notes
         receivable                  4,238,155        4,205,652
        Less - Provision for
         possible losses           (    26,388)    (     26,372)
               Unearned time
                charges            (2, 864,560)      (2,822,412)
        Trade and other receivables    166,677          158,273
        Federal income tax receivable   99,875         ---
        Inventories                    196,982          171,032
        Prepaid expenses                12,524           15,803
        Property, plant
         and equipment, net            655,795          648,842
        Excess of purchase
         price over net assets
         acquired (goodwill)           352,927          392,039
        Deferred income taxes            7,216               ---
        Other assets                    80,222           70,842
                                  $  3,148,392      $ 3,099,803
        Bank overdrafts,
         accounts payable
         and accrued expenses      $     202,882    $    200,050
        Income taxes payable              53,712          20,323
        Deferred income taxes                ---         61,544
        Long-term senior debt          2,205,152        812,547
        Accrued interest                  36,976         284,329
        Accumulated postretirement
         health benefits obligation      238,618         221,049
        Other long-term liabilities       51,133          48,682
        Liabilities subject to
         Chapter 11 proceedings              ---       1,727,279
        Stockholders' equity (deficit)   359,919        (276,000)
                                      $3,148,392      $3,099,803

        /CONTACT:  David L. Townsend, Walter Industries, Inc., 813-871-4448/

Orange County Transportation Authority
Ratings Reviewed and

            NEW YORK--Jan. 4, 1996--The Orange

        bankruptcy relief package approved by the California Legislature on
        September 15, 1995 and signed into law by Governor Wilson on October
        9, 1995 included three bills stipulating the diversion of
        Transportation Development Act (TDA) funds normally earmarked for
        public transit services provided by the Orange County Transportation
        Authority (OCTA).  

            The Consensus Recovery Plan intercepts and redirects $38 million
        a year of OCTA's TDA funds to county bankruptcy relief beginning on
        July 1, 1996 for a 15-year period.  In exchange, $23 million a year
        in county gas taxes will be transferred from the county to OCTA
        beginning one year later, on July 1, 1997.  This results in a net
        loss of $15 million per year in public transit funding beginning in
        fiscal year 1998.  

            On October 20, 1995, Moody's placed under review related ratings
        of OCTA, which is the consolidated agency responsible for all
        transportation planning and services in Orange County.  OCTA is the
        oversight authority for the Orange County Local Transportation
        Authority (OCLTA), the Orange County Transit District (OCTD), the
        agency responsible for mass transit services, and the Orange County
        Service Authority for Freeway Emergencies (OCSAFE).  Moody's review
        focused on the impact of the TDA revenue diversion.  

            The confirmation of ratings reflects OCTA Board approval of a
        financial and operating plan to mitigate the up-front loss of $38
        million in fiscal year 1996 and the net loss of $15 million per year
        thereafter for 14 years of TDA public transit funding.  The
        difficult systemic and budgetary adjustments that have been
        implemented within the past year will contribute to the long-term
        financial viability of the Authority and its various operating

            Effective today, Moody's Investors
has reviewed and
        confirmed the following OCTA ratings:

                                               Moody's         Amount
        Issue                                      Rating             
         Orange County Local Transportation
          Sales Tax Revenue Bonds, First
          Senior                                     Aa         $302,840,000
        Orange County Local Transportation
          Commercial Paper Program[1]                P-1          74,200,000
        Orange County Transit District,
          1990 Business
          Acquisition Project Certificates
          of Participation                           A1           10,395,000
        California Transit Finance
          County Transit District
          Certificates of
          Participation, 1993C                       A1           21,100,000
        [1]Maximum authorization is $115 million.

            The OCLTA also has outstanding $360,590,000 Second Senior Sales
        Tax Revenue Bonds which are insured by FGIC and rated Aaa, and
        $2,375,000 Orange County Service Authority for Freeway Emergencies-
        Orange County Public Facilities Corporation Certificates of
        Participation, also insured by FGIC and rated Aaa.  Loss of TDA
        Dollars Primarily Impacts The Orange County Transit District Bus

            The Transportation Development Act established for each county a
        Local Transportation Fund (LTF) to funnel revenues derived from a
        1/4 percent state sales tax for mass transit purposes.  In existence
        since 1972, the LTF primarily serves to subsidize the OCTD's
        operating and capital expenses.  For fiscal year 1997 - the initial
        year of the revenue diversion - OCTD faces a $38 million budget
        shortfall.  For each of the remaining 14 years thereafter, OCTD will
        face net shortfalls of $15 million.  

            On December 11, 1995, the OCTA Board approved a long-term plan
        to mitigate the initial $38 million loss and the loss of $15 million
        per year thereafter until 2011.  Rather than impose onerous service
        reductions to close the fiscal year 1997 budget gap, the Board
        approved: (1) a $34.4 million reallocation of Orange County Unified
        Transportation Trust (OCUTT) funds to support bus operations; (2)
        elimination of 40 administrative staff positions saving $2 million
        per year; and (3) charging the cost of providing rail feeder
        services to the commuter rail program instead of bus operations.
        The $34.4 million was originally set aside for development
        investment for two projects: the Anaheim Intermodal Transportation
        Center and the Route 57 Extension along the Santa Ana River.  Both
        projects require partnership funding from the private sector and
        will require extensive development resources.  Given the
        complexities of juggling federal, state, local and private sector
        funding, the timing and likelihood of realization of these two
        projects have always been uncertain.  

            A major component of the plan to mitigate the net loss of $15
        million per year for 14 years beginning in fiscal year 1998 is the
        creation of a Bus Operations Fund initially capitalized primarily
        with $68 million from all non-Measure M Commuter Urban Rail
        Endowment program funds and $4.1 million from transit capital
        reserves.  Annually, OCTA plans to utilize $8 million of principal
        and interest from the Bus Operations Fund to help mitigate the
        diversion.  The remaining $2 - 3 million shortfall will be addressed
        before the fiscal year 1998 budget.  Options under consideration
        include modest fare increases and reduction of services.  Any
        recovery of bankruptcy claims could also be used in part to
        subsidize the shortfall.  The Major Investment Study for the urban
        rail corridor project will be presented to the Board in 1996.  If
        the corridor is determined to be economically unfeasible and the
        project is abandoned, then additional Measure M funds may be freed
        up for other public transit uses.  OCTA would like to review as many
        options as possible and will not close the $2 - 3 million funding
        gap until all options are studied.  

         Mitigation Initiatives Come on the Heels of Earlier Structural
        Improvements to Bus System Operations

            The one-time reallocation of authority resources comes after
        recent OCTD structural improvements to overall transit operations,
        which will result in long-term tightening of operating costs.  In
        general, significant reductions in Federal Transit Administration
        (FTA) Section 9 Operating Subsidies have helped spur overall belt-
        tightening in the mass transit industry.  Since consolidation in
        1991, OCTA has reduced total staffing by 16%.  Additional cost
        savings include closing one of three maintenance bases, reducing
        work shifts from three to two and deciding to stay with clean diesel
        buses rather than a more costly changeover to alternative fuel
        equipment.  On October 1, 1995, OCTA implemented bus service changes
        including revised service scheduling of 50 fixed bus routes, closure
        of four less productive routes resulting in an overall 5% reduction
        in services, addition of 11 routes, doubled use of more cost
        effective small buses.  These changes were based on a year-long
        study designed to expand ridership, improve efficiency and provide
        more service options without increasing net operating costs.  These
        structural improvements are expected to provide long-term benefits
        to the bottom line and augment the one-time initiatives designed to
        infuse the mass transit system with sufficient resources to mitigate
        the loss of TDA funds.  

         Repayment of 1990 and 1993 Certificates Is Not Expected to Be
        Negatively Impacted

            Repayment of the 1990 and 1993 Certificates, issued to finance
        the purchase of buses, is not expected to be negatively impacted by
        the loss of TDA funds.  While 80% of certificate debt service is
        expected to continue to come from FTA Section 9 Capital Grants,
        additional repayment sources include farebox revenues, TDA funds,
        State Transit Assistance (STA) funds derived from state-wide sales
        taxes and appropriated annually for transit purposes, property tax
        collections, interest income and other operating revenues of the
        OCTD.  Projected total capital funding sources in fiscal year 1995
        are expected to cover certificate debt service in excess of 9x; peak
        debt service coverage by fiscal year 1995 capital funds exceeds 5x.
        Further, OCTA has $6 million in unreserved STA funds, which could be
        applied to repayment of debt service.  

         The Loss of TDA Funds Is Not Expected to Impact the OCTA Measure M
        Sales Tax Revenue Bonds

            The voters of Orange County authorized the collections of a half-
        cent sales tax for transportation improvements in November, 1990.
        The Measure M Program outlines clear funding parameters including a
        43% allocation for freeways, 25% for transit, 11% for regional
        streets and roads, and 21% for local streets and roads.  Within the
        category of freeway construction, the revised Freeway Strategic Plan
        adopted on November 14, 1994 identified some 30 priority projects
        including improvements to the Santa Ana Freeway (I-5) and Interstate
        405.  The Measure M construction program remains on track.  All
        major Measure M freeway projects are under way and project costs are
        coming in under budget.  On the Santa Ana Freeway, 24 out of 25
        projects are environmentally cleared, designed, under contruction or

            In fiscal year 1995 - the fourth full year of Measure M
        collections - revenues were up by 6% from the previous year.  Gross
        Measure M collections in fiscal year 1995 were $140.7 million.
        Measure M sales taxes continue to average $10 - 12 million per
        month. Debt service coverage on aggregate first and second senior
        Sales Tax Revenue Bonds is estimated at 1.8x for fiscal year 1995
        and is projected to continue to exceed 1.8x over the next five years
        even under modest growth assumptions.  

            Forecasts of nominal taxable sales by California State
        University, Fullerton, Chapman University and UCLA range between 4
        - 7% in the period from 1995 to 2011.  

         Management Remains Strong

            OCTA continues to exhibit strong, proactive management in
        mitigating the impact of revenue diversion and in undertaking the
        necessary structural changes to position the transit system and the
        Measure M Program to move ahead even in the face of the Orange
        County bankruptcy.  Recently, the Board reaffirmed its policy
        recognizing the importance of full and timely repayment of debt
        obligations and placing all bond and certificate payments among the
        Authority's highest priorities.  

        CONTACT:  Moody's Investors Service,
                  Chee Mee Hu, 212/553-3665,
                  Vice President/Assistant Director

Adobe Systems announces fiscal year 1995
        results; results include effect of business combination with Frame

            MOUNTAIN VIEW, Calif.--Jan. 4, 1996--Adobe
        Systems Inc. today announced results for its fiscal year 1995.  

            Results for the year include the effect of the acquisition of
        Frame Technology Corp., and all comparative data include the Frame
        data for prior periods as well as the current year periods.

        Fourth Quarter Results

            Revenue for the fourth quarter ended Dec. 1, 1995, on a combined
        basis, was $200.9 million, an increase of 7 percent from the $187.6
        million posted for the fourth quarter of fiscal 1994.  The fourth
        quarter results include a restructuring charge of $31.5 million
        associated with the Frame Technology acquisition, and a write-off of
        $15.0 million for in-process research and development acquired in
        conjunction with the purchase of Ceneca Communications.  The effect
        of the restructuring charge and the write-off of in-process research
        and development was to create a fourth quarter loss for the company
        of $11.8 million, and a corresponding loss per share of $.16.  This
        compares to a net loss of $45.2 million for the fourth quarter of
        fiscal 1994 and a loss per share of $.65, which included a
        restructuring charge of $72.2 million associated with the Aldus
        acquisition and a $12.4 million write-off of in-process research and
        development associated with the purchase of Laser Tools Corp.

            Fourth quarter revenue on a normalized basis, would have been up
        12 percent from the $179.1 million posted in the fourth quarter of
        fiscal 1994.  Net income for the fourth quarter, excluding all one-
        time charges, would have been $30.5 million, for earnings per share
        of $.40.  This compares to fourth quarter results from fiscal 1994,
        without one-time charges and without discontinued or divested
        businesses, of $30.1 million, and earnings per share of $.41 per

            "Operating income for the quarter was below our stated business
        goals," commented John Warnock, chairman and chief executive officer
        of Adobe Systems.  "The timing and effect of the Frame acquisition
        had a more substantial impact than anticipated, and our expenses as
        a percent of sales were higher than our targets.  It is our intent
        to correct this situation and bring operating margins in line with
        our business objectives."

        Fiscal Year Results

            Total revenue for the fiscal year ended Dec. 1, 1995, was $762.3
        million, an increase of 13 percent from the $675.6 million posted
        for fiscal 1994.  Net income and earnings per share were $93.5
        million and $1.26, respectively, compared to net income of $15.3
        million and earnings per share of $.22 for fiscal 1994.

            Comparing year-end results on a normalized basis, removing non-
        recurring expenses and excluding the Freehand and Photostyler
        businesses, fiscal 1995 revenue was up 22 percent from fiscal 1994
        revenue of $622.4 million.  On this basis, net income for fiscal
        1995, was $135.6 million, up 79 percent from net income of $75.9
        million in fiscal 1994.  Earnings per share, at $1.80, represents a
        gain of 68 percent compared to earnings per share of $1.07 in fiscal

            "This has been a remarkable year for Adobe," continued Warnock.
        "We shipped major versions of PageMaker, FrameMaker, Photoshop,
        Acrobat, Acrobat Capture, After Effects and PageMill.  And, we
        delivered over 300 PostScript implementations to our OEM customers.
        In addition, we met the challenge of integrating two major
        companies, while addressing the opportunities that are emerging with
        the growth of the Internet.  Our ability to recognize strategic
        business opportunities and provide innovative solutions has helped
        establish Adobe as a leader in Internet publishing.  We believe the
        Internet is changing the way organizations communicate, and we will
        continue to make key investments in this area."

            Licensing revenue for the fourth quarter was $47.0 million, a 15
        percent increase over the $40.9 million posted for the fourth
        quarter of fiscal 1994.  For the full fiscal year, licensing revenue
        increased 17% to $183.4 million from $156.7 million in fiscal 1994.

            Application product revenue for the fourth quarter grew 5% to
        $153.8 million, compared to $146.7 million for the same quarter last
        year.  For all of fiscal 1995, application product sales were $578.9
        million, compared to $519.0 million for fiscal 1994, a gain of 12
        percent.  Without Freehand and PhotoStyler, product revenue of 1994
        was $138.2 million for the fourth quarter and $465.8 million for the
        full year, for a year over year gain of 11 percent and 24 percent,

            Adobe's Board of Directors declared a cash dividend for its
        fourth fiscal quarter of $.05 per common share for its shareholders
        of record as of Jan. 19, 1996 and payable on Feb. 2, 1996.

            Except for the historical information contained herein, the
        matters discussed in this news release are forward looking
        statements that involve risks and uncertainties, including the
        timely development and market acceptance of new products and
        upgrades to existing products, the impact of competitive products
        and pricing, and the other risks detailed from time to time in the
        Company's SEC reports.

            Adobe Systems Inc., founded in 1982, is headquartered in
        Mountain View, California.  Adobe develops, markets and supports
        computer software products and technologies that enable users to
        create, display, print and communicate electronic documents.  The
        company licenses its technology to major computer, printing and
        publishing suppliers, and markets a line of applications software
        and type products for authoring visually rich documents.
        Additionally, the company markets a line of powerful, but easy to
        use, products for home and small business users.  Adobe has
        subsidiaries in Europe and the Pacific Rim, serving a worldwide
        network of dealers and distributors.  Adobe's stock is traded on The
        Nasdaq Stock Market under the symbol "ADBE".

            Note to Editors: Adobe, Acrobat Capture, After Effects,
        FrameMaker, PageMaker, PageMill and Photoshop are trademarks of
        Adobe Systems Incorporated which may be registered in certain
        jurisdictions.  Macintosh is a registered trademark of Apple
        Computer Inc.  Windows is a trademark of Microsoft Corp.

        CONTACT: Adobe Systems Inc.,
                 M. Bruce Nakao, 415/962-2071 (IR),
                 Carolyn Schwartz, 415/962-3302 (IR),
       " target=_new>">
                 Carol Sacks, 415/962-4989 (PR)


        TROY, Mich., January 4, 1996 -- Kmart Corporation
        (NYSE: KM) today reported, on a comparable store basis, consolidated
        sales rose 4.5% for the five-week period ended December 27, 1995
        over sales for the five weeks ended December 28, 1994, excluding
        sales of the divested Borders Group, OfficeMax and The Sports
        Authority operations. December sales in U.S. Kmart stores increased
        5.5% on a comparable store basis.

        Total sales for the month from consolidated operations increased
        2.0%. On that basis, sales amounted to $5.301 billion in December
        1995, versus sales of $5.199 billion for the same period last year.

        Sales from consolidated operations for the 48 weeks ended
        December 27, 1995 were $31.994 billion, up 4.5% from the
        $30.617 billion for the first 48 weeks of 1994, excluding sales of
        the divested Borders Group, OfficeMax and The Sports Authority
        operations.  On a comparable store basis, consolidated sales rose
        4.2% for the same period.

        "Our December sales met expectations, and reflect additional print
        and electronic media support as well as planned levels of
        promotions," said Floyd Hall, Chairman, President, and CEO of Kmart.
        "Increases over the holiday season were led by toys and domestics.
        Apparel, particularly in the women's area, was softer than

        Kmart Corporation serves America with 2,169 Kmart and 169 Builders
        Square retail outlets, and operates 147 stores internationally.

        Kmart Corporation common stock is listed on the New York, Pacific
        and Chicago Stock Exchanges.

                              KMART CORPORATION
                              SALES BY BUSINESS
                                    4 Weeks Ended     % Change
                                                     All   Comparable
        (Millions U.S. $)         12-27-95 12-28-94  Stores   Stores
        General Merchandise
          United States           $ 4,855  $ 4,722    2.8      5.5
          International               202      206   (1.7)    (2.4)  (a)
        Total General Merchandise   5,057    4,928    2.6      5.2
        Builders Square               244      271   (9.9)    (7.4)
        Total Kmart               $ 5,301  $ 5,199    2.0      4.5
                                   48 Weeks Ended     % Change
                                                     All   Comparable
        (Millions U.S. $)         12-27-95 12-28-94  Stores   Stores
        General Merchandise
          United States           $28,331  $26,751    5.9      5.5
          International             1,175    1,091    7.8      3.3   (a)
        Total General Merchandise  29,506   27,842    6.0      5.4
        Builders Square             2,488    2,775  (10.4)    (8.1)
        Total Kmart               $31,994  $30,617    4.5      4.2
        (a) International Comparable Store Sales Change is calculated on
        sales in the applicable local currency.

        /CONTACT:  Robert M. Burton of Kmart Investor Relations,


            NEW YORK, Jan. 4, 1996 -- Marvel Entertainment
Group, Inc.
        (NYSE: MRV) announced that it has taken certain actions to
        restructure its publishing and trading card businesses to quickly
        improve profitability of those operations.

            William C. Bevins, CEO of Marvel, stated, "We have set a course
        designed to promptly strengthen the profitability of both businesses
        and to position them for strong future growth."

            As to publishing, the Company is eliminating unprofitable and
        marginally profitable titles, to create a strong line-up comprising
        Marvel's most popular, most profitable titles.  The Company's comic
        books will focus more on editorial events and less on physical
        product features and enhancements in order to bring back old readers
        and attract new readers.  The recently announced return of Jim Lee
        and Rob Liefeld, two of the preeminent comic creators of this era,
        to reshape four core titles is an example of Marvel's commitment to
        strengthening editorial product content.  In addition, an exciting
        new mass market comic product will be introduced in early 1996.

            Operations are being streamlined through introduction of new
        technology and consolidation of facilities.  Combined with the
        reduction in titles, these measures will significantly reduce
        editorial, production, distribution and administrative overhead
        expense.  In addition, the focus on editorial content rather than
        enhanced covers and expensive papers will bring about significant
        reductions in manufacturing costs.  These cost savings will so
        improve direct margins as to enable the publishing unit to realize a
        healthy profit in 1996 and beyond.

            Trading card operational overhead is being reduced through the
        consolidation of production facilities at Fleer's Bahalia,
        Mississippi plant and the reduction of sales and distribution
        overhead.  As a result trading card operations should return
        promptly to higher profit margins while also positioning the
        business well for future growth.

            These restructuring activities which include the termination of
        approximately 275 employees will result in a fourth quarter pre-tax
        restructuring charge of approximately $25 million, bringing to $65
        million the total for one-time special charges Marvel has taken in
        1995. The Company will report a loss for the fourth quarter.  Net
        income before extraordinary item for the full year will be
        approximately $0.05 per share.  The restructuring activities are
        expected to result in future period savings of approximately $16
        million annually.

            Mr. Bevins said, "We continue to be very optimistic about the
        long- term prospects for Marvel as a diversified youth entertainment
        company based on key intellectual properties.  Our franchise in
        comics and cards continues to be very strong with Marvel Comics
        dominating the top 100 list and Fleer/SkyBox holding key licenses
        with all the major sports leagues and entertainment properties.  We
        anticipate that 1996 cost savings generated by the restructuring
        plan will significantly improve profitability for these businesses
        in 1996 and beyond.  Meanwhile, our sticker, entertainment card, toy
        and character licensing, advertising and promotion businesses
        continue to be strong performers.

            "We are very excited about the future growth of Marvel in the
        emerging electronic publishing area.  As an example, we will soon be
        announcing a major on-line license which was concluded in the fourth
        quarter of 1995.  We also expect our first MarvelMania restaurant to
        open in 1996.  When combined with anticipated strong performance
        from Marvel's other businesses, we look forward to a success in 1996
        consistent with our pre-1995 performance."

        /CONTACT:  Media, Pam Rutt, Marvel Entertainment Group,
        212-576-8535, or Investors, Gary Fishman of Hudson Stone Group,