SAN DIEGO, Jan. 9, 1996 -- Burnham Pacific
Inc. (NYSE: BPP), a California based real estate investment trust
(REIT), announced today that it has begun to re-negotiate its lease
with one of its tenants, Anacomp,
Inc., which filed a pre-negotiated
plan of reorganization last week under Chapter 11 of the U.S.
Burnham Pacific stated that it has been in continual contact
with Anacomp's senior management since Anacomp's financial condition
became public last year, and that Anacomp has expressed its strong
desire to remain in the facility it leases from Burnham Pacific in
"We have anticipated this event," stated David Martin, president
and chief executive officer of Burnham Pacific, "and have taken the
possibility into account in making recent strategic decisions
including the reduction of our dividend payout level. Now that
Anacomp has filed for bankruptcy, negotiations are formally underway
to restructure the lease in order to accommodate Anacomp's desire to
remain a tenant."
Founded in 1963, Burnham Pacific Properties, Inc. is the owner
of commercial real estate properties throughout California.
/CONTACT: Belena Stanford, Investor Relations Manager of Burnham
CHATSWORTH, Calif.--Jan. 9, 1996--Micropolis
Corp. (NASDAQ/NMS:MLIS) Tuesday announced that it had reached an
agreement in principle with a prospective buyer to sell
substantially all of the assets related to its disk drive business.
The transaction includes a payment for the value of intangibles,
including the name Micropolis. While the terms are not yet
definitive, the transaction is not expected to generate a material
gain or loss.
Micropolis will seek shareholder approval for the transaction
and of the corporate name change early in 1996 after the two
companies have reached a definitive agreement and such agreement has
been approved by the boards of directors of each company.
Shareholder approval will be sought through a proxy statement
which is expected to be mailed to shareholders in February 1996.
There can be no assurance that such agreements will be reached or
After the transaction has been completed, the company's
remaining business will be focused on value-added storage systems,
including video servers, digital disk recorders, the RAIDION family
of fault-tolerant disk arrays and external storage devices such as
J. Larry Smart, chairman and chief executive officer, said: "We
are pleased to be in discussions with a buyer who we feel can
rejuvenate the disk drive business. Our disk drive customers and
suppliers can look forward not only to the release of our newest
drives as scheduled, but also to a relationship with a world-class
organization, and a continuing high level of service and support."
Smart continued, "We also look forward with excitement to the
prospect of focusing 100 percent of our attention on the systems
business, and to the improved financial condition of the company,
assuming a successful conclusion to the discussions we are now in."
The company also reported that revenues during the fourth
quarter ended Dec. 29, 1995, were approximately $43 million in
comparison with the $58.8 million reported during the third quarter
ending Sept. 29, 1995, and that it expects to report a larger net
loss than the $1.12 per share that it reported for the third
The company's cash balance declined from the Sept. 29 level of
$37.3 million to approximately $28 million as of Dec. 29, 1995. The
results of the fourth quarter do not include any impact from the
To conserve cash, the company has reduced its production plan to
a level that is expected to reduce inventories during the first
quarter. The company also announced that it had reduced its
Chatsworth corporate headquarters work force in order to prepare for
the sale of the disk drive assets and the related restructuring into
a value-added systems business. The cost of the work force
reduction is estimated at $400,000, and this cost will be included
in the first-quarter 1996 results.
Founded in 1976, Micropolis designs and manufactures Super-
Capacity disk drives, and information storage and video systems.
Its products are sold to OEMs and system integrators and through
distributors and VARs. Micropolis has headquarters in Chatsworth,
sales offices throughout the world and manufacturing facilities in
Singapore and Thailand.
CONTACT: Micropolis Corp.,
Barbara V. Scherer, 818/718-5118
Bill Coffin, 818/789-0100
NEW YORK, Jan. 9, 1996 -- Merrill Lynch & Co.,
MER) today issued the following statement:
An article in today's Los Angeles Times reporting that Merrill
Lynch had offered to settle the lawsuit by href="chap11.orange.html">Orange County, California
is totally and completely false. Merrill Lynch has never initiated
a settlement proposal as described in this article, nor has it ever
made any other settlement proposal.
The article referred to a meeting in May, 1995 between Merrill
Lynch officials and former County Executive William Popejoy. That
meeting was requested by Mr. Popejoy who did not specify its purpose
and who traveled to New York for it. Any amounts put forth as
possible settlement figures were advanced unilaterally by Mr.
Popejoy, and were rejected flatly by Merrill Lynch.
On June 21, 1995, in response to public statements made at the
time by Mr. Popejoy, Merrill Lynch made clear that it did not
consider its meeting with Mr. Popejoy to be a settlement discussion.
Merrill Lynch acted professionally and properly in its
relationship with Orange County, and has consistently maintained
that it bears no responsibility for the County's decision to declare
bankruptcy, nor for the subsequent consequences of that decision.
/CONTACT: Timothy Gilles, Media Relations of Merrill Lynch & Co.,
DENTON, Texas, Jan. 9, 1996 -- US Farathane
has made public its plans, subject to federal Bankruptcy Court
approval, to purchase the Orthane Division of href="chap11.epi.html">Eagle-Picher
Industries, Inc. William Kemner, president and chief executive
officer of US Farathane and Wayne Wickens, senior vice president,
and president - Automotive Group, Eagle-Picher Industries, Inc.,
announced the multi-million dollar acquisition today during a
special meeting held at Orthane's headquarters in Denton, Texas.
The acquisition represents a significant expansion of US
Farathane's presence in the automotive industry as a supplier of
high-quality custom engineered plastics, plastic and rubber parts
and assemblies. It also provides the company with the foundation
necessary to further expand operations into new recreational and
"Orthane's capabilities complement what we already do at US
Farathane," said Kemner. "As a competitor, we were well aware of
their reputation for quality. It had a strong influence on our
decision to purchase. And it's an important step toward fulfilling
our strategic objectives, both as a Tier I supplier in the
automotive sector - and as a company expanding and diversifying for
Orthane, a division of Eagle-Picher Industries, Inc., is a
supplier of injection molded polyurethane parts for automotive and
other selected original equipment applications, with annual sales in
excess of $8 million. Orthane currently manufactures approximately
150 active parts, and is the sole source for a number of products
sold to Ford, Chrysler and General Motors. The company also serves
as a Tier II supplier to automotive parts manufacturers across the
United States including ITT Automotive, TRW Automotive, Gabriel,
Polaris, Nagle and ACCO.
US Farathane Corporation, based in Royal Oak, Mich., is a
leading designer and supplier of automotive suspension parts, as
well as functional molded, cast and extruded plastic and rubber
products for the automotive, appliance and recreational industries.
Current customers include Ford, Chrysler, General Motors, Textron,
Johnson Controls, Lear Seating and United Technologies. US
Farathane, with annual sales of $40 million, is one of the few
companies that has the capabilities to formulate urethanes for
customer specific applications and design, mold, manufacture, test
and ship a finished part.
/CONTACT: William Kemner of US Farathane, 810-585-1888; or Robert
Kuzawinski of The Agency & Partners, 810-380-2030/
WORCESTER, Mass., Jan 9, 1996 -- href="chap11.cambridge.html">Cambridge Biotech
Corporation today announced that the United States Bankruptcy
for the District of Massachusetts (Western Division) has declared a
non- exclusive patent license to be in effect between Institut
Pasteur and Cambridge Biotech as of January 1, 1996, covering
Cambridge's HIV-1 Western Blot test. Introduced in the U.S. in
1987, Cambridge Biotech's HIV-1 Western blot confirmatory test is
used in the diagnosis of AIDS to confirm the results of less
sensitive screening assays.
The terms outlined by the court include a one percent royalty on
net sales without an upfront license fee. The court ordered
Cambridge Biotech to pay damages equal to a one percent royalty for
the pre- license period from July 7, 1994, through December 31,
1995. In addition, the court terminated its prior injunction
against Cambridge selling the Western Blot kits. The court rejected
Institut Pasteur's allegation that Cambridge willfully infringed
Institut Pasteur's patent.
"We are delighted with the court's decision as it allows us to
continue marketing our Western Blot product," said Alison Taunton-
Rigby, President and CEO of Cambridge Biotech. "The ruling also
allows the Company to move forward with its efforts to reorganize
and emerge from Chapter 11."
The ruling stems from a lawsuit filed by Institut Pasteur and
Genetic Systems Corporation against Cambridge Biotech in March 1995,
alleging that Cambridge infringed three patents owned by Pasteur and
licensed to Genetic Systems. In September 1995, the court ruled
that Cambridge has a valid license under two of the Pasteur patents
covering HIV-2 strains of the AIDS virus (which Pasteur has appealed
to the U.S. District Court), but that the company's HIV-1 Western
Blot test infringed Pasteur's U.S. patent No. 5,217,861.
Cambridge Biotech Corporation, which filed for protection under
Chapter 11 of the U.S. Bankruptcy Code on July 7, 1994, is a
therapeutics and diagnostics company involved in developing
vaccines, adjuvants, and diagnostics for infectious diseases and
cancer in humans and animals.
/CONTACT: Alison Taunton-Rigby, President and Chief Executive
Officer of Cambridge Biotech Corporation, 508-797-5777, or Robert
Gottlieb, Senior Vice-President of Feinstein Partners, 617-577-8110/
EL PASO, Texas, Jan. 9, 1996 -- A federal
has confirmed El Paso Electric's Fourth Amended Plan of
Reorganization after El Paso
Electric obtained nearly unanimous
acceptance of its reorganization plan by all of its creditors and
stockholders and after obtaining all necessary federal and state
The confirmation order issued today by the U.S. Bankruptcy Court
for the Western District of Texas in Austin, will enable El Paso
Electric to emerge from bankruptcy after four years of bankruptcy
At the confirmation hearing, Judge Monroe complimented the
parties on the manner in which they quickly settled the major issues
in the case. "All involved worked in a very efficient manner and
timely basis under harsh time constraints," Judge Monroe said. "The
City (of El Paso) and the company should be congratulated," he
Under the confirmed plan, the company's capital structure will
include approximately $1.2 billion of senior secured debt, including
approximately $200 million of pollution control bonds, $100 million
of preferred stock, and common shares.
As previously announced, the Plan of Reorganization contemplates
two alternative methods for the company to emerge from bankruptcy.
Under the preferred alternative, EPE proposes to use the proceeds of
an underwritten public offering of first mortgage bonds to repay the
claims of existing secured creditors in full. If market conditions
in early- 1996 will not permit an underwritten offering, the
company's Plan would be consummated through a distribution of new
senior secured debt to existing secured creditors in satisfaction of
Under the confirmed plan, unsecured creditors will receive cash,
new secured debt, preferred stock, and 85 percent of the reorganized
company's common stock.
When the reorganization plan becomes effective, existing
preferred and common shares of the company will be canceled, and
holders will receive 15 percent of the reorganized company's common
stock, with 12 percent of the new common stock going to the existing
preferred shareholders and 3 percent going to the existing common
shareholders. In addition, the existing preferred and common
shareholders will share equally in the first $20 million of any
recovery by EPE in its pending litigation with Central and South
El Paso Electric filed a voluntary petition under Chapter 11 of
the United States Bankruptcy Code on Jan. 8, 1992. EPE is an
electric utility serving approximately 273,000 customers in El Paso,
Texas, an area of the Rio Grande valley in west Texas and southern
New Mexico and wholesale customers located in such diverse locations
as southern California and Mexico.
/CONTACT: Henry Quintana Jr. of El Paso Electric Company,
SOUTH SAN FRANCISCO, Calif.--Jan. 9, 1996--
Shaman Pharmaceuticals, Inc. (NASDAQ:SHMN) today reported fourth
quarter and year-end results.
For the three month period ended Dec. 31, 1995, Shaman reported
a net loss of $5,268,000, or $0.40 per share, compared to a net loss
of $5,951,000, or $0.46 per share, for the same period in 1994. For
the twelve months ended Dec. 31, 1995, the company reported a net
loss of $18,004,000, or $1.37 per share, compared to a net loss of
$19,481,000, or $1.50 per share, during 1994.
Contract revenues for the fourth quarter of 1995 were $500,000,
compared to no revenue for the same period in 1994. Contract
revenues for all of 1995 were $2,210,000, compared to $1,360,000
during 1994. The 1995 revenues result from a three year research
collaboration with Japan-based Ono Pharmaceutical Co., Ltd., which
was initiated in May 1995. The 1994 revenues resulted from a
collaborative relationship that was discontinued in September 1994.
Research and development expenses for the quarter ended Dec. 31,
1995 decreased to $5,003,000 from $5,123,000 in the fourth quarter
of the previous fiscal year. General and administrative expenses
also decreased to $1,006,000 in the quarter ended Dec. 31, 1995 from
$1,121,000 in the final quarter of fiscal 1994. This reduction in
operating expenses resulted from a restructuring that was
implemented in December 1994.
Lisa Conte, president and chief executive officer of Shaman,
stated, "The highlight of the fourth quarter was our positive Phase
II Virend results for the treatment of genital herpes. The data
from this rigorous trial further demonstrates Shaman has the
resources to develop promising new drugs to treat serious medical
problems. We will begin a definitive Phase III study this year as
we simultaneously begin discussions with potential marketing
partners in Europe."
Shaman Pharmaceuticals uses an integrated approach to discover
new chemical entities from tropical plants with a history of
medicinal use. Shaman relies on ethnomedical investigation and
sophisticated screening models which result in a more efficient drug
discovery process. Shaman's diabetes program has resulted in the
discovery of multiple new compounds, and forms the basis for a
collaborative relationship with Ono Pharmaceutical Co., Ltd.
In addition, Shaman has three compounds in development, Virend,
a topical antiviral for the treatment of herpes, is ready to begin
pivotal Phase III testing. Provir, for the treatment of secretory
diarrhea, is beginning Phase II trials. Nikkomycin-Z, an oral anti-
fungal for the treatment of endemic mycosis, is in late pre-clinical
Selected Financial Data
(in thousands except share and per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
1995 1994 1995 1994
Contract revenues $ 500 $ 0 $ 2,210 $ 1,360
development 5,003 5,123 17,008 18,385
administrative 1,006 1,121 4,332 3,803
Total operating expenses 6,009 6,244 21,340 22,188
Interest income (net) 241 293 1,126 1,347
Net loss $(5,268) $(5,951) $(18,004) $(19,481)
Net loss per share $ (0.40) $ (0.46) $ (1.37) $ (1.50)
Shares used in the
calculation of net
loss per share 13,243,000 13,018,000 13,161,000
Selected Balance Sheet Data
December 31, December 31,
Cash, cash equivalents and
investments $ 26,665 $ 39,843
Prepaid expenses $ 859 $ 1,135
Property and equipment (net) $ 6,158 $ 8,313
Total assets $ 33,810 $ 49,673
Current liabilities $ 4,674 $ 4,441
Long-term debt $ 4,930 $ 3,932
Accumulated deficit $(63,832) $(45,828)
Total stockholders' equity $ 24,205 $ 41,300