TCR_Public/960108.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


        PORT AUTHORITY READIES NEW BOND RESTRUCTURING PLAN

        
            Independent Financial Advisor Confirms Probable Default
                             of '876 Fund' in 2003

        
            SAINT PAUL, Minn., Jan. 8, 1996 -- After more
than a year
        of independent review and analysis, the Saint Paul Port Authority
        announced that it is preparing to seek bondholder approval in the
        near future for a new proposal to restructure nearly $288 million of
        real estate revenue bonds.  The plan was developed with the
        assistance of Los Angeles-based href="Houlihan" target=_new>http://www.hlhz.com">HoulihanLokey Howard & Zukin, a
        specialty investment banking firm.
        


            The latest proposal will culminate a four-year effort by the
        Port Authority to stabilize the portfolio of a commercial real
        estate loan program known as the Resolution 876 Common Revenue Bond
        Fund ("876 Fund").  The Port has vigorously pursued a restructuring
        of the 876 Fund to provide certainty for future principal and
        interest payments to all bondholders and avoid a default within the
        876 Fund, currently projected to occur in 2003.
        


            The specifics of the new plan to restructure bond payments
        within the distressed real estate portfolio are currently being
        refined.  The final version of the plan is expected to be submitted
        for approval to the Port Authority Board of Commissioners in the
        near future and, if approved, distributed to all 876 Fund
        bondholders for a vote shortly thereafter.
        


            The new bond restructuring plan will likely call for an average
        interest rate reduction of approximately 50 percent on bonds
        maturing after reserves are expected to be depleted (2003).  If the
        plan is approved at that level by 85% of the affected bonds, and if
        the other assumptions as to future project performance and other
        matters hold true, repayment of at least 80 percent of the
        outstanding principal is probable.  In addition to the principal and
        interest modifications referred to above, the restructuring plan
        would also likely contain certain conceptual changes from two
        earlier restructuring proposals that are intended to address
        specific bondholder objectives.
        


            The Port Authority first advised bondholders in 1991 of the
        potential for a revenue shortfall within the 876 Fund.  Based upon
        unaudited financial results during 1995, the cash flow shortfall of
        $8.9 million between project revenues and scheduled debt service
        payments was drawn from the 876 Fund's Common Reserve.  As of Dec.
        31, 1995, the Common Reserve fund balance was $47.8 million.  The
        1995 year-end results for the 876 Fund's revenues confirm that,
        without a restructuring, the Fund is likely to exhaust all of its
        reserves and experience a default in 2003.
        


            The Port Authority currently holds a total of $68.3 million in
        the combined 876 Fund reserves, now being used to supplement debt
        service payments on 876 Fund bonds.  Of the $47.8 million in the
        common reserve, approximately $27.4 million represent amounts
        received by the Port Authority as pre-payment of various leases and
        loan agreements received from 876 Fund borrowers.  Absent a full
        restructuring, these prepaid amounts may be used either to
        supplement cash flow from 876 Fund projects until they are depleted,
        or to redeem bonds.
        


            The 876 Fund consists of individual loans on properties
        comprising 108 industrial, commercial and residential properties.
        These properties were financed by 104 separate revenue bond issues,
        with anticipated outstanding principal of $287.6 million as of
        February 1, 1996.  A number of poorly performing properties have
        been repossessed and are currently operated by the Port Authority
        for the benefit of 876 Fund bondholders.  The debt associated with
        these properties represents approximately 36 percent of the 876
        Fund's outstanding bonds. Additionally, 30 percent of the remaining
        real estate properties within the 876 Fund have been designated by
        the Port Authority as impaired and unlikely to generate revenues
        sufficient to pay full debt service amounts as originally
        structured.  Anticipated revenues from these properties are likely
        to range from 50-to-75 percent of the actual debt service.  Fifty-
        two (52) percent of the 876 Fund loans are currently performing
        pursuant to financing leases or loan agreements, which require
        payments calculated on the basis of initial debt service
        requirements.  These agreements may not be unilaterally changed to
        provide for increased cash flow.  The existing shortfall within the
        876 Fund is not the result of a single cause.  The portfolio of
        loans which makes up the 876 Fund experienced defaults and
        delinquencies in approximately the same proportion as similar real
        estate projects in existence during the real estate market crash of
        the late 1980's.

        
            "While the overall real estate economy is improving, it is
        highly unlikely that the commercial property values in the Saint
        Paul market will grow to the extent necessary to solve the current
        cash flow problems within the 876 Fund program," said Port Authority
        President Kenneth R. Johnson.
   

     
            The 876 Fund is a pooled revenue bond fund, which is backed
        primarily by the revenues generated by (and reserves set aside for)
        the commercial and industrial projects financed with the bond
        proceeds.  The fund maintains no claim on either the City of Saint
        Paul or the Port Authority.
      

  
            The Saint Paul Port Authority is the industrial development
        agency for the City of Saint Paul, Minn., specializing in real
        estate, construction and equipment financing and loan guarantees.
        The agency also provides business services, such as site selection,
        customized job training and technical assistance, tailored to the
        needs of established industrial and manufacturing firms within the
        Twin Cities' Metro East region.
        


        /CONTACT:  Mike Strand of Saint Paul Port Authority, 612-224-5686/


        
        HERMAN MILLER, INC., REPORTS RECORD OPERATING RESULTS FOR THE SECOND
        QUARTER OF FISCAL 1996 AND ANNOUNCES SETTLEMENT OF PATENT
        LITIGATION

        
            GRAND RAPIDS, Mich., Jan. 8, 1996 -- Herman
Miller, Inc.,
        (Nasdaq-NNM: MLHR) today reported net sales for its second quarter
        ended December 2, 1995, increased 17.7 percent to a record $328.4
        million compared with $279.1 million one year ago. New orders of
        $347.6 million were the highest ever recorded in a three-month
        period.
        


            Net sales of $629.5 million and new orders of $656.9 million
        were recorded for the first six months of fiscal 1996 compared with
        net sales of $531.9 million and new orders of $551.0 million in the
        first half of last year. Both net sales and new orders were the
        highest ever recorded in a six-month period.
        


            Net sales of international operations and export sales from the
        United States totaled $112.0 million in the six months ended
        December 2, 1995, compared with $88.8 million last year.
        


            However, we incurred a net loss of $3.8 million compared with a
        net loss of $1.3 million last year.
        


            The backlog of unfilled orders at December 2, 1995, was $197.1
        million, compared with $177.9 million at September 2, 1995, and
        $157.7 million last year.
        


            Net income, before reflecting settlement of the patent
        litigation, was a record $15.5 million, or $.62 per share, for the
        three months ended December 2, 1995. Net income for the six months
        ended December 2, 1995, was a record $27.5 million, or $1.10 per
        share.
        


            The net impact of the settlement after giving effect to
        previously recorded reserves and settlements with third parties was
        a one-time charge to pre-tax income of $16.5 million.  The $16.5
        million pretax charge had an after-tax impact of $10.6 million, or
        $.42 per share. After recording the charge, net income for the
        quarter and six months ended December 2, 1995, was $4.9 million
        ($.20 per share) and $16.9 million ($.68 per share), respectively.
        


            This compares with net income of $1.4 million ($.06 per share)
        and $9.4 million ($.38 per share) recorded in the same period of
        last year.
        


            In 1992, Haworth, Inc., sued Herman Miller claiming that certain
        electrical products which the company offered infringed two patents.
        Haworth had sued Steelcase, Inc., in 1985 claiming that Steelcase's
        products infringed those same two patents. In 1989 Steelcase was
        held to infringe the patents, and the matter was referred to private
        dispute resolution to resolve the issue of damages. The patents at
        issue have now expired.
        


            Under the settlement agreement, Herman Miller will pay Haworth
        $44 million in cash in exchange for a complete release. The release
        also covers Herman Miller's customers and suppliers. The companies
        have exchanged limited covenants not to sue with respect to certain
        existing and potential patent rights. Haworth has agreed not to sue
        under United States Patent 4,682,984 which refers to a construction
        process for making storage cabinets.  In addition, Haworth has
        granted a limited covenant not to sue with respect to certain
        potential future patent rights on panel construction. Haworth will
        receive a limited covenant under three United States Patents
        Q5,038,539; 4,685,255; and 4,876,835 - all relating to one of the
        company's system product lines.
        


            The company simultaneously reached a settlement with one of its
        suppliers. The supplier agreed to pay Herman Miller $11 million and
        to rebate over the next seven years a percentage of its sales to
        Herman Miller which are in excess of current levels. The $11
        million, plus interest, will be paid in annual installments over a
        seven-year period. The $11 million was considered in computing the
        net patent litigation settlement cost of $16.5 million. Herman
        Miller is also exploring the possibility of claims against other
        third parties.
        


            Brian C. Walker, vice president of Finance, said, "We have
        continued to see strong demand for our products in both domestic and
        international markets. Increasing sales, coupled with the cost
        reduction programs implemented in the second and fourth quarters of
        last year, have resulted in improved operating profit and cash flow.
        Our operating income, as a percent of sales, was the highest
        recorded since the fourth quarter of 1993. Operating income was 8.1
        percent of sales (excluding the $16.5 million patent litigation
        settlement) for the second quarter of 1995 compared with 6.3 percent
        (excluding the $15.5 million restructuring charge) in the same
        period of last year.
        


            "Domestic United States sales increased 19.7 percent in the
        second quarter compared with the prior year, after increasing 13.7
        percent in the first quarter. The Business and Institute Furniture
        Manufacturers Association (BIFMA) estimates the U.S. market grew
        approximately 6.8 percent during the June to October time period.
        "Net sales of international operations and exports from the United
        States increased 26.1 percent over the first six months of last
        year. The increase was primarily due to strong growth in the United
        Kingdom and acquisitions in Italy and Canada in the fourth quarter
        of last year.
        


            "While we have had consistent growth in the net sales of our
        international operations, we have not been able to improve the
        profitability. The loss is due to negative operating profits in our
        Mexican operations and the cost of integrating Herman Miller Italia
        into our core European business. The weak peso and poor economic
        conditions in Mexico have resulted in a year-over-year decline in
        sales of nearly 52 percent and, as a consequence, operating losses.
        While we are unhappy with these results, we continue to believe
        these markets are essential components of our long-term
        international strategy.
        


            "Gross profit, as a percent of sales, for the quarter ended
        December 2, 1995, was 34.3 percent, compared to 34.2 percent in the
        first quarter and 34.0 percent in the fourth quarter of last year.
        The first quarter result has been restated due to the correction of
        an error detected during the second quarter. The restatement
        resulted in an increase of approximately $7.9 million in sales with
        no impact on gross margin dollars or net income.  An amended 10Q
        reflecting this change has been filed with the Securities and
        Exchange Commission. The improvement over the fourth quarter is due
        to reductions in manufacturing overheads announced in the second
        quarter of last year and small decreases in raw material prices
        offset by price erosion in our core U.S. business.
        


            "Operating expenses, as a percent of sales, for the quarter and
        six months ended December 2, 1995, were 26.2 percent and 26.9
        percent, respectively, compared to 29.3 percent and 30.0 percent in
        the same period of last year. This improvement is the result of the
        restructuring implemented in the fourth quarter of last year. Total
        operating expenses increased $9.8 million from $159.5 million in the
        first six months of last year to $169.3 million. The increase is
        attributable to acquisitions and new ventures, a 3.5 percent year-
        over-year increase on compensation and benefits, increased
        depreciation, and amortization and costs which are variable with
        sales.
        


            "Cash flow from operations increased to $57.4 million for the
        six months ended December 2, 1995, from a use of $2.1 million in the
        same period a year ago.  The increase was due to improved
        profitability and a reduction in cash used for working capital
        items. The number of days sales in the sum of accounts receivable
        plus inventory decreased to 90.2 days versus 91.9 days at December
        3, 1994.
        


            "Capital expenditures were $26.4 million compared with $25.6
        million in the first six months of last year. Capital expenditures
        for the year are expected to be in the range of $65 to $70 million.
        


            "The increased cash flow from operations and the modest level of
        capital expenditures resulted in a $37.6 million reduction in total
        interest-bearing debt compared with the previous year end. The ratio
        of debt to total capital decreased to 26.0 percent from 33.5 percent
        at the end of last year. We have secured $60.0 million of additional
        long-term credit facilities to fund the payment of the litigation
        settlement. The company's $160.0 million of long-term credit
        facilities, short-term borrowings, and cash flow from operations
        will be adequate to fund capital expenditures, dividend payments,
        common stock repurchases, and other strategic investments. We expect
        total interest-bearing debt to be in the range of $140 to $170
        million for the remainder of the year with a debt-to-total-capital
        ratio of between 26 and 35 percent.
        


            Mike Volkema, CEO, summarized, "Operationally we had an
        outstanding second quarter and first half of fiscal 1996. Our
        employee-owners have done an excellent job of improving our cost
        structure and leveraging our asset base. We are pleased to have the
        matter with Haworth resolved. While we have always been advised by
        our patent litigation counsel that we were more likely than not to
        prevail on the merits, the mounting legal costs, distraction of
        management focus, and the uncertainty present in any litigation made
        this settlement at this time something which is in the best interest
        of our shareholders and employee-owners."
        


            Volkema continued, "The covenants not to sue will help each
        company avoid future expensive development and litigation costs in
        this highly competitive environment."
        


            Herman Miller, Inc., is an international firm engaged primarily
        in the manufacturing and sale of office systems products and
        services principally for offices and, to a lesser extent, for health-
        care facilities and other uses. The company's common stock is traded
        on the National Market for the over-the-counter stock issues.
        


          Financial highlights for the quarter ended December 2, 1995,
        follow:
        


                              Herman Miller, Inc.
                       Condensed Consolidated Statements
              (Unaudited) (Dollars in 000s, except per share data)
        
                                      Three Months Ended
                                     Dec. 2,       Dec. 3,
                                     1995            1994
        
        Net Sales                  $328,393        $279,077
        
        Cost of Goods Sold          215,740         179,719
        
        Gross Margin                112,653          99,358
        
        Operating Expenses           86,003          81,714
        
        Restructuring Charges           ---          15,500
        
        Patent Litigation
         Settlements                 16,515             ---
        
        Operating Income             10,135           2,144
        
        Other Expenses                1,625             601
        
        Income Before Taxes           8,510           1,543
        
        Taxes on Income               3,555             100
        
        Net Income                   $4,955 (b)     $ 1,443 (a)
        
        Net Income Per Share      $     .20 (b)   $     .06 (a)
        
        Common Share
         Equivalents             25,188,041      24,781,763
        
        (a) Includes $15.5 million of pretax restructuring charges which
        decreased net income by $9.6 million, or $.39 per share.
        (b) Includes $16.5 million of pretax litigation settlements which
        decreased net income by $10.6 million, or $.42 per share.
        
                                      Six Months Ended
                                    Dec. 2,       Dec. 3,
                                    1995(c)       1994(d)
        
        Net Sales                  $629,481        $531,908
        
        Cost of Goods Sold          413,949         341,539
        
        Gross Margin                215,532         190,369
        
        Operating Expenses          169,339         159,527
        
        Restructuring Charges           ---          15,500
        
        Patent Litigation
         Settlement                  16,515             ---
        
        Operating Income             29,678          15,342
        
        Other Expenses                2,254             662
        
        Income Before Taxes          27,424          14,680
        
        Taxes on Income              10,455           5,300
        
        Net Income                  $16,969 (b)     $ 9,380 (a)
        
        Net Income Per Share       $    .68 (b)    $    .38 (a)
        
        Common Share
         Equivalents             25,062,824      24,753,927
        
        (a) Includes $15.5 million of pretax restructuring charges which
        decreased net income by $9.6 million, or $.39 per share.
        (b) Includes $16.5 million of pretax litigation settlements which
        decreased net income by $10.6 million, or $.42 per share.
        (c) Represents a 26-week period.
        (d) Represents a 27-week period.
        
                              Herman Miller, Inc.
                     Condensed Consolidated Balance Sheets
                               (Dollars in 000s)
        
                                             Dec. 2,
                                              1995            June 3,
                                           (unaudited)         1995
        
        Assets
        
        Current assets
        
            Cash and short-term investments $  19,363       $  16,488
            Accounts receivable (net)         195,104         165,107
            Inventories                        79,859          71,076
            Prepaid expenses and other         40,167          44,445
        
                 Totals                      $334,493        $297,116
        
        Net property and equipment            274,258         270,184
        Other assets                           88,874          91,712
        
                 Totals                     $ 697,625        $659,012
        
        Liabilities and Shareholders' Equity
        
        Current liabilities
        
            Unfunded checks                   $10,306      $      --
            Current long-term debt                854            452
            Notes payable                      31,729         83,591
            Accounts payable                   61,746         51,819
            Litigation accrual                 44,000             --
            Accrued liabilities               112,143        121,679
        
                 Totals                      $260,778       $257,541
        
        Long-term debt                       $ 74,002       $ 60,145
        Other noncurrent liabilities           60,173         54,411
        Shareholders' equity                  302,672        286,915
        
                 Totals                      $697,625       $659,012
        
                              Herman Miller, Inc.
                Condensed Consolidated Statements of Cash Flows
                         (Unaudited) (Dollars in 000s)
        
                                       Six Months Ended
                                     Dec. 2,          Dec. 3,
                                     1995(c)          1994(d)
        
        Net Income                  $16,969 (b)     $ 9,380(a)
        
        Cash Flows provided by
         (used for) Operating
         Activities                  57,418          (2,120)
        
        Cash Flows used for
         Investing Activities       (16,931)        (44,470)
        
        Cash Flows provided by
         (used for) Financing
         Activities                 (39,133)         39,188
        
        Effect of Exchange Rates      1,521             853
        
        Net Increase (Decrease)
         in Cash                      2,875          (6,549)
        
        Cash, Beginning of Year     $16,488         $22,701
        
        Cash, End of Period         $19,363         $16,152
        
        (a) Includes $15.5 million of pretax restructuring charges which
         decreased net income by $9.6 million, or $.39 per share.
        (b) Includes $16.5 million of pretax litigation settlements which
        decreased net income by $10.6 million, or $.42 per share.
        (c) Represents a 26-week period.
        (d) Represents a 27-week period.


        /CONTACT:  Brian Walker, 616-654-8589, or Bob Dentzman,
        616-654-5044, both of Herman Miller/