TCR_Public/960116.MBX BANKRUPTCY CREDITORS' SERVICE, INC.



Cherokee reports second fiscal quarter results;
        expects growing stream of revenues from continued success of
        wholesale and retail direct licensing strategy

        
            VAN NUYS, Calif.--Jan. 16, 1996--href="chap11.cherokee.html">Cherokee Inc.
        (NASDAQ:CHKE) Tuesday reported net sales of $2,155,000 and net
        income of $336,000, or 5 cents per common and fully diluted share,
        for the company's second fiscal quarter ended Dec. 2, 1995.
        


            For the period ended Nov. 26, 1994, Cherokee reported net sales
        of $18,906,000 and a loss of $5,428,000.  Per-share data is not
        presented for the period ended Nov. 26, 1994, due to the general
        lack of comparability as a result of the revised capital structure
        of the company.
        


            For the six months ended Dec. 2, 1995, the company reported net
        sales of $12,910,000 and net income of $3,177,000, or 49 cents per
        common and fully diluted share.  For the six months ended Nov. 26,
        1994, the company reported net sales of $45,148,000 and a loss of
        $7,771,000.  Six-month results for the 1996 fiscal year primarily
        reflect a non-recurring gain on the sale of the Cherokee uniform
        division during the first quarter and the liquidation of
        inventories.
        


            The company has terminated manufacturing and importing apparel
        and footwear and has sold most of its inventories.  Cherokee's new
        operating strategy now emphasizes retail direct as well as wholesale
        and international licensing.  The company grants retailers the
        license to use the Cherokee trademark on certain categories of
        merchandise, including those products that the company previously
        manufactured.  
        


            Under this new operating strategy, the company has been able to
        significantly reduce its overhead and ongoing operating costs.  As a
        result, Cherokee today is no longer comparable to the former
        Cherokee.  
        


            For the six months and three months ended Dec. 2, 1995,
        licensing revenues represented 4 percent and 17 percent of revenues,
        respectively, and the terminated businesses represented 96 percent
        and 83 percent of revenues, respectively.  Future revenues will be
        generated primarily through the licensing of the company's brand.
        


        Continued Success of Licensing Strategy
        


            "Since our new management team came on board in May 1995,
        Cherokee has succeeded in increasing the company's minimum royalty
        stream from about $4 million to over $25 million through 2001," said
        Robert Margolis, chairman and chief executive officer of Cherokee.
        


            "We are generating increasing royalty revenue from contracts
        with existing and new domestic licensees, international licensees
        and major retailers.  Cherokee's retail direct licensing strategy
        offers significant competitive advantages to retailers operating in
        the current difficult retail environment," Margolis said.
        


            The Cherokee mega brand, which took more than 20 years to build,
        beats all store labels in recognized industry surveys.  The November
        1995 Fairchild Publication Survey ranked Cherokee sixth of the top
        10 sportswear brands.  On Aug. 15, 1995, the company entered into  a
        major alliance with Target Stores, a division of Dayton Hudson
        Corp., guaranteeing minimum royalties of $11,540,000 through 2001.  
        


            In addition to Target, the company has signed licensing
        agreements with Mervyn's, Modern Woman/Woman's World, J. Byron and
        others.  The company has 15 domestic and 10 international licensing
        agreements covering an ever-increasing range of products.
        


        Overseas Expansion
        


            In November 1995, the company announced details of its master
        licensing agreement with Mondragon International, a 25-year-old
        publicly traded Philippines-based company.  Mondragon also owns the
        licensing rights in the Philippines for Nike-brand apparel and
        Warner Brothers cartoon characters.
        


            "Our agreement with Mondragon International, added to our
        already successful licensing agreement with Suzuya Co. Ltd. in
        Japan, further enhances our overseas operations and is testament to
        the enduring strength of the Cherokee brand worldwide," said
        Margolis.  The Cherokee brand is now authorized to sell in more than
        2,000 locations around the world.
        


        Strong Financial Position
        


            Cherokee is now debt-free and well-capitalized.  As of Dec. 2,
        1995, the company had cash and cash equivalents of $5,388,000.  In
        addition, Cherokee has reached agreement in principle to settle all
        remaining unsecured creditors' claims arising from its 1994 Chapter
        11 proceedings.
        


            These claims are payable in shares of stock of the company, and
        therefore payment of these claims will not have a material adverse
        effect on the financial condition of the company.  
        


        Sale of the "Rockers" Brand
        


            On Dec. 1, 1995, Cherokee sold its patents and trademarks
        related to the "Rockers" brand footwear for $250,000 to Strategic
        Partners Inc.  Cherokee will continue to collect royalties from
        Strategic Partners for the use of the trademark in connection with
        the sale of Cherokee footwear to the uniform trade.  The company
        continues to pursue opportunities to divest other trademarks,
        including "American Legends," "Pacific Express" and "A-Smile."  
        


        Stock Repurchase Program
        


            On Nov. 2, 1995, Cherokee announced that its board of directors
        approved a plan to repurchase up to 1 million shares of the
        company's common stock.  As of Dec. 2, 1995, the company has
        repurchased 21,134 common shares.
        


        Strengthening Market Position
        


            "We are at various stages of completing a continuing stream of
        licensing agreements in the U.S., Australia, China and other
        countries in the Far East and Asia, as well as Europe, Mexico, South
        America and Canada.  These agreements are expected to produce gains
        in earnings and capital appreciation in the current fiscal year.  
        


            Cherokee is strengthening its market position and is continuing
        to become a major factor in the apparel licensing marketplace,"
        Margolis concluded.  
        


            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 via facsimile at no cost,
        simply call 800/PRO-INFO and dial client code 058. -0-
       


        
                                 CHEROKEE INC.
                      Consolidated Statements of Operations
                                  (Unaudited)
        
                        Successor  Predecessor    Successor  Predecessor
                         Company     Company       Company     Company
        
                          Three Months Ended         Six Months Ended
                        ----------  -----------  -----------  -----------
                         12/2/95     11/26/94      12/2/95     11/26/94
                        ----------  -----------  -----------  -----------
        
        Net Sales           $2,155,000  $18,906,000  $12,910,000
        $45,148,000
        Cost of Goods Sold   1,807,000   18,380,000   10,455,000
        37,886,000
        Gross Profit           348,000      526,000    2,465,000
        7,262,000
        
        Selling, General &
         Administrative
         Expenses              425,000    6,592,000    3,066,000
        14,440,000
        Operating Loss         (77,000)  (6,066,000)    (601,000)
        (7,178,000)
        
        Other Expenses (Income):
        Interest Expense        31,000    2,251,000      345,000
        4,881,000
        Investment & Interest
         Income               (148,000)     (30,000)    (203,000)
        (57,000)
        Gain on Sale of Uniform
         Division & Other
         Assets               (245,000)         ---   (3,708,000)
        ---
        Other                  (51,000)     794,000     (212,000)
        999,000
        Total Other (Income)
         Expenses, Net        (413,000)   3,015,000   (3,778,000)
        5,823,000
        
        Income (Loss) before
         Income Taxes          336,000   (9,081,000)   3,177,000
        (13,001,000)
        
        Income Taxes (Benefit)     ---   (3,653,000)
        ---   (5,230,000)
        Net Income (Loss)      336,000   (5,428,000)   3,177,000
        (7,771,000)
        
        Net Income per Common
         & Common Equivalent
         Shares                  $0.05          (a)        $0.49
        (a)
        
        Weighted Average Common
         & Common Equivalent
         Shares Outstanding  6,673,893          (a)    6,473,989
        (a)
        
        Net Income per Common
         & Common Equivalent
         Shares Outstanding      $0.05          (a)        $0.49
        (a)
        
        Weighted Average Common
         & Common Equivalent
         Shares Outstanding
         -- Fully Diluted    6,673,893          (a)    6,473,989
        (a)
                                                                   
        (a)  Per-share result is not presented due to the general lack of
         comparability as a result of the revised capital structure of
         the company.
        
        
                                 CHEROKEE INC.
                                Balance Sheets
                                  (Unaudited)
        
                                                 Successor Company
                                              12/2/95         6/3/95
                                            -----------     -----------
                                            (Unaudited)
        ASSETS
        Current Assets:
        Cash & Cash Equivalents (includes
         Restricted Cash of $308,000)           $ 5,388,000     $   285,000
        Receivables, Net                          1,354,000      11,553,000
        Inventories                                 250,000      11,530,000
        Other Current Assets                        340,000         506,000
        Total Current Assets                      7,332,000      23,874,000
        
        Property & Equipment, Net                    25,000          37,000
        Assets Held for Sale                      3,576,000       3,665,000
        Notes Receivable & Other, Net             2,236,000         684,000
        Total Assets                            $13,169,000     $28,260,000
        
        LIABILITIES & STOCKHOLDERS' EQUITY
        Current Liabilities:
        Short-term Revolving Credit & Other     $       ---     $14,213,000
        Accounts Payable & Accrued Expenses         993,000       1,360,000
        Accrued Payroll & Related Expenses          139,000       1,559,000
        Other Accrued Liabilities                    57,000       2,306,000
        Income Taxes Payable                         88,000         100,000
        Total Current Liabilities                 1,277,000      19,538,000
        
        Deferred Income Taxes Payable             1,500,000       1,500,000
        
        Stockholders' Equity:
        Common Stock, $0.02 par value,
         20,000,000 shares authorized,
         6,096,000 shares issued and
         outstanding at 6/3/95 and
         6,457,766 shares issued and
         outstanding at 12/2/95                     129,000         122,000
        Additional Paid-in Capital               11,696,000      11,703,000
        Accumulated Deficit                      (1,234,000)     (4,411,000)
        Note Receivable from Stockholder           (199,000)       (192,000)
        Stockholders' Equity                     10,392,000       7,222,000
        Total Liabilities & Stockholders'
         Equity                                 $13,169,000     $28,260,000
        

        CONTACT:  Cherokee Inc., Van Nuys,
                  Carol Gratzke, 818/908-9868
                    or
                  Financial Relations Board, Los Angeles,
                  Tom Ekman, 310/442-0599 (analyst contact);
                  Daniel Saks/Fiona Ross, 310/442-0599 (general info)
        


        ANACOMP ANNOUNCES YEAR-END RESULTS
        


            ATLANTA, Jan. 16, 1996 -- Anacomp,
Inc.
(NYSE: AAC), today
        announced its year-end financial results for the period ended Sept.
        30, 1995.
        


            For the year, Anacomp incurred a loss of $238.3 million, or
        $5.22 per share, on sales of $591.2 million.  That compares to a net
        income of $15.0 million, or 27 cents per share, on sales of $592.6
        million in fiscal 1994.  Included in the fiscal 1995 loss are $136.9
        million of special charges (representing a $108.0 million write- off
        of goodwill and $28.9 million of costs associated with previous
        software investments), $32.7 million of restructuring charges, and a
        one-time $29.0 million deferred tax provision.
        


            Anacomp's operating income for fiscal 1995, which is income
        before special and restructuring charges, interest, other income,
        and income taxes, was $41.4 million.  That compares to operating
        income of $79.6 million in fiscal 1994.  The decrease is largely
        attributable to lower micrographics margins as a result of lower
        selling prices; a decline in COM system and supplies sales; higher
        selling, general, and administrative costs; and a change in product
        mix as relatively less profitable magnetics products represented a
        greater portion of total sales.
        


            The restructuring charges in 1995 result from Anacomp's decision
        to close its Omaha, Nebraska magnetic media manufacturing facility,
        exit the manufacture of readers and reader/printers at its San
        Diego, California manufacturing facility, and make significant
        reductions in its workforce.  The charges are comprised of severance
        costs, inventory write-downs, excess facility reserves, and other
        miscellaneous restructuring charges.
        


            Anacomp announced last week that it has filed a pre-negotiated
        plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code
        in order to accomplish a financial restructuring.  During this
        process, the company's business operations will continue as normal
        - including paying vendors on normal trade terms, honoring all
        obligations to customers, and paying all employees as usual.
        


            "Anacomp historically has had strong operating cash flows, and
        that continues today," noted P. Lang Lowrey III, Anacomp's recently
        appointed President and Chief Executive Officer.  "Our performance
        in 1995 was impacted by a combination of negative market trends that
        resulted in decreased revenues and margins, along with a failure to
        manage costs in this changing environment.  In addition, both our
        results and our ability to invest into new technologies has been
        hampered by a debt load that's simply too big."
        


            Anacomp believes that benefits from its operational
        restructuring and downsizing efforts will begin to be realized in
        the first quarter of fiscal 1996.  The company expects its first
        quarter results to track its new five-year business plan.
        


            "We're very pleased that we have achieved our initial cost
        reduction targets in the first quarter as a result of our downsizing
        and our continuing operational restructuring," added Lowrey.  "Now,
        with our pre- negotiated plan of organization filed January 5, we
        are close to achieving a new financial framework that will allow
        Anacomp to maintain its existing operations going forward while also
        investing in new digital products and services."
        


            Anacomp also announced that Paul G. Roland was elected chairman
        of Anacomp's Board of Directors, replacing Louis P. Ferrero.  Mr.
        Roland has served as an Anacomp director since 1984.  He has been a
        partner with the law firm of Ruckelshaus, Roland, Hasbrook &
        O'Connor since 1971.
        


            Anacomp also announced that it expects the New York Stock
        Exchange to delist the company's stock as a result of Anacomp's
        recent Chapter 11 filing.
        


            In addition, Anacomp announced that the company has deferred
        setting a date for its annual shareholder meeting while the
        refinancing process continues.
        


            Anacomp is a leading provider of multiple-media data management
        solutions, delivering cost-effective strategies that incorporate
        micrographic, digital, and magnetic output media.
        



                        CONSOLIDATED BALANCE SHEETS
                       Anacomp, Inc. and Subsidiaries
        
        (Dollars in thousands,                 Sept. 30,      Sept. 30,
         except per share amounts)               1995            1994
        
           ASSETS
           Current assets:
        Cash and cash equivalents              $19,415        $ 19,871
        Accounts and notes receivable,
         less allowances for doubtful
         accounts of $7,367 and
         $3,550, respectively                   90,091         117,441
        Current portion of
         long-term receivables                   6,386           8,021
        Inventories                             53,995          63,375
        Prepaid expenses and other               5,306           5,421
        Total current assets                   175,193         214,129
        
        Property and equipment,
         at cost less accumulated
         depreciation and
         amortization of $96,898 and
         $100,574, respectively                 44,983          66,769
        Long-term receivables,
         net of current portion                 12,322          16,383
        Excess of purchase price
         over net assets of businesses
         acquired and other intangibles,
         net                                   160,315         279,607
        Deferred tax asset, net of
         valuation allowance of $108,400
         and $57,000, respectively               ---            29,000
        Other assets                            28,216          52,751
        
        Total                                 $421,029        $658,639
        
           LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
           Current liabilities:
        Current portion of
         long-term debt                       $389,900        $ 45,222
        Accounts payable                        57,368          82,790
        Accrued compensation,
         benefits and
         withholdings                           20,891          16,573
        Accrued income taxes                     9,365           9,000
        Accrued interest                        40,746          19,701
        Other accrued liabilities               60,587          35,027
        Total current liabilities              578,857         208,313
        
        Long-term debt, net of
         current portion                         ---           366,625
        Other noncurrent
         liabilities                             5,841           9,467
        Total noncurrent
         liabilities                             5,841         376,092
        
        Redeemable preferred stock, $.01 par value,
         issued and outstanding
         500,000 shares
         (aggregate preference
         value of $25,000)                      24,574          24,478
        
           Stockholders' equity (deficit):
        Common stock, $.01 par
         value: authorized
         100,000,000
         shares: 46,187,625 and
         45,728,505 issued,
         respectively                              462             457
        Capital in excess of par value         182,725         181,843
        Cumulative translation
         adjustment                              1,329            (269)
        Accumulated deficit                   (372,759)       (132,275)
        Total stockholders' equity (deficit)  (188,243)         49,756
        
        Total                                 $421,029        $658,639
        
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                       Anacomp, Inc. and Subsidiaries
        
                                                 Three months ended
        (Dollars in thousands,                    Sept. 30,
        (except per share amounts)                1995          1994
        
        Revenues:
        Services provided                     $ 53,919        $ 55,988
        Equipment and supply sales              85,036         107,512
        Total                                  138,955         163,500
        
           Operating costs and expenses:
        Costs of services provided              43,017          39,597
        Costs of equipment and supplies
         sold                                   66,319          76,117
        Selling, general and
         administrative expenses                30,173          26,794
        Special charges                          6,889            ---
        Restructuring charges                   32,695            ---
        Total                                  179,093         142,508
        
        Income (loss) before interest,
         other income, income taxes,
         and cumulative effect of
         accounting change                     (40,138)         20,992
        
        Interest income                            446             839
        Interest expense and fee
         amortization                          (18,628)        (16,378)
        Financial restructuring costs           (2,235)           ---
        Other income (loss)                        641             174
        Total                                  (19,776)        (15,365)
        
        Income (loss) before taxes and
         cumulative effect of accounting
         change                                (59,914)          5,627
        Provision for income taxes              32,200           3,200
        
        Income (loss) before cumulative
         effect of accounting change           (92,114)          2,427
        Cumulative effect on prior years
         of a change in accounting for
         income taxes                             ---             ---
        Net income (loss)                      (92,114)          2,427
        
        Preferred stock dividends and
         discount accretion                        539             539
        Net income (loss) available
         to common                            $(92,653)       $  1,888
        Earnings (loss) per common and
        common equivalent share:
        Income (loss), net of preferred
          stock dividends and
          discount accretion                   $ (2.01)       $  0.04
        Cumulative effect on prior years
         of a change in accounting
         for income taxes                         ---            ---
        Net income (loss) available to
         common stockholders                   $ (2.01)       $  0.04
        
                                                  Twelve months ended
        (Dollars in thousands,                      Sept. 30,
        (except per share amounts)                1995           1994
        
        Revenues:
        Services provided                     $219,881        $223,511
        Equipment and supply sales             371,308         369,088
        Total                                  591,189         592,599
        
           Operating costs and expenses:
        Costs of services provided             161,211         156,214
        Costs of equipment and supplies
         sold                                  279,456         264,269
        Selling, general and
         administrative expenses               109,127          92,539
        Special charges                        136,889            ---
        Restructuring charges                   32,695            ---
        Total                                  719,378         513,022
        
        Income (loss) before interest,
         other income, income taxes,
         and cumulative effect of
         accounting change                    (128,189)         79,577
        
        Interest income                          2,000           3,144
        Interest expense and fee
         amortization                          (70,938)        (67,174)
        Financial restructuring costs           (5,987)           ---
        Other income (loss)                       (212)           (192)
        Total                                  (75,137)        (64,222)
        
        Income (loss) before taxes and
         cumulative effect of accounting
         change                               (203,326)         15,355
        Provision for income taxes              35,000           8,400
        
        Income (loss) before cumulative
         effect of accounting change          (238,326)          6,955
        Cumulative effect on prior years
         of a change in accounting for
         income taxes                              ---           8,000
        Net income (loss)                     (238,326)         14,955
        Preferred stock dividends and
         discount accretion                      2,158           2,158
        Net income (loss) available
         to common stockholders              $(240,484)       $ 12,797
        
        Earnings (loss) per common
          and common equivalent share:
        Income (loss), net of preferred
          stock dividends and
          discount accretion                   $ (5.22)       $  0.10
        Cumulative effect on prior years
         of a change in accounting
         for income taxes                          ---           0.17
        Net income (loss) available to
         common stockholders                   $ (5.22)       $  0.27
        
               CONSOLIDATED STATEMENTS OF CASH FLOWS
                  Anacomp, Inc. and Subsidiaries
        
                                                    Year ended Sept. 30,
          (Dollars in thousands)               1995        1994       1993
        
           Cash flows from operating activities:
        Net income (loss)                    $(238,326)   $14,955    $18,591
        Adjustments to reconcile net income
         (loss) to net cash provided by
         operating activities:
        Depreciation and amortization           43,375     40,649     38,208
        Cumulative effect of a change in
         accounting for income taxes              ---      (8,000)      ---
        Provision (benefit) for losses on
          accounts receivable                    2,742       (695)     (892)
        Provision for inventory valuation       10,956        ---        ---
        Deferred taxes                          29,000       6,000       ---
        Special charges                        136,889         ---       ---
        Loss (gain) on disposition of assets     6,308         776     (721)
        Change in assets and liabilities, net
          of effects from acquisitions:
        Decrease in accounts and
         long-term receivables                  30,948       3,040    1,215
        Decrease (increase) in
         inventories and prepaid
         expenses                              (1,612)      15,254    1,308
        Increase in other assets               (8,207)     (11,349)  (5,329)
        Increase (decrease) in accounts
         payable and accrued expenses          11,465       (3,623)   1,125
        Decrease in other noncurrent
         liabilities                           (3,626)      (4,323)  (7,613)
        Net cash provided by operating
         activities                            19,912       52,684   45,892
        
           Cash flows from investing activities:
        Proceeds from sale of assets           18,777        7,805   15,956
        Purchases of property, plant and
         equipment                            (14,372)     (18,868) (20,726)
        Proceeds from notes receivable           ---          ---     1,343
        Payments to acquire companies
         and customer rights                   (1,262)     (14,565)  (1,114)
        Net cash provided by (used in)
         investing activities                   3,143      (25,628)  (4,541)
        
           Cash flows from financing activities:
        Proceeds from issuance of common
         stock and warrants                       743        1,484    2,262
        Proceeds from revolving line
         of credit and long-term
         borrowing                             22,529       39,000   39,799
        Principal payments on
         long-term debt                       (45,859)     (71,095) (77,958)
        Preferred dividends paid               (1,031)      (2,062)  (2,062)
        Payments related to the issuance
          of debt and equity                     ---          ---    (7,707)
        Net cash used in financing
          activities                          (23,618)     (32,673) (45,666)
        
        Effect of exchange rate changes
         on cash                                107          566      (644)
        Decrease in cash and cash equivalents  (456)      (5,051)   (4,959)
        Cash and cash equivalents at
         beginning of year                   19,871       24,922    29,881
        Cash and cash equivalents at
         end of year                       $ 19,415      $19,871   $24,922
        
        Supplemental disclosures of cash flow information:
        (Dollars in thousands)             Year ended Sept. 30,
                                              1995         1994      1993
        Cash paid during the year for:
          Interest                         $ 39,426     $ 57,781   $59,552
          Income taxes                     $  4,128     $  2,007     3,468
        
        Supplemental schedule of non-cash investing and financing
        activities:
        During 1995, 1994, and 1993 the Company acquired companies and
        rights to provide future services.  In conjunction with these
        acquisitions, the purchase price consisted of the following:
        
        (Dollars in thousands)                 Year ended Sept. 30,
                                            1995           1994       1993
        Cash paid                         $1,262         $14,565    $1,114
        Credit memos issued                 ---            3,085       150
        Notes payable issued                ---            4,290     3,170
        Stock issued                        ---           17,201       ---
          Total fair value of
          acquisitions                    $1,262         $39,141    $4,434
        
                   CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
                         Anacomp, Inc. and Subsidiaries
        
                                      Capital in  Cumulative
        Year ended Sept. 30,  Common  excess of   Translation
        1995, 1994 and 1993   Stock   par value   Adjustment Deficit   Total
        (Dollars in thousands)
        
        BALANCE AT 9/30/92    $397   $161,198   $  8,200  $(161,505)$ 8,290
        Common stock issued for
        purchases under the
        Employee Stock
          Purchase Plan         4       1,253       ---       ---     1,257
        Exercise of stock
          options               5         997       ---       ---     1,002
        Preferred stock
          dividends             ---       ---       ---     (2,062)  (2,062)
        Accretion of redeemable
         pref. stock discount   ---       ---       ---        (96)     (96)
        Translation adjustments
         for year               ---       ---   (12,944)      ---   (12,944)
        Other                   ---      (239)      ---       ---      (239)
        Net income for the year ---       ---       ---     18,591   18,591
        BALANCE AT 9/30/93      406   163,209    (4,744)  (145,072)  13,799
        Common stock issued for
          purchases under the
          Employee Stock Purchase
          Plan                   3        872       ---       ---      875
        Exercise of stock
          options                3        606       ---       ---      609
        Preferred stock
          dividends             ---       ---       ---     (2,062) (2,062)
        Accretion of redeemable
          preferred stock
          discount              ---       ---       ---       (96)     (96)
        Translation adjustments
          for year              ---       ---     4,475       ---    4,475
        NBS stock issuance      20      7,380       ---       ---    7,400
        Graham Stock Issuance   25      9,776       ---       ---    9,801
        Net income for the year ---      ---        ---     14,955  14,955
        BALANCE AT  9/30/94    457   $181,843   $  (269) $(132,275)$49,756
        Common stock issued for
          purchases under the
          Employee Stock Purchase
          Plan                   3        689       ---       ---      692
        Exercise of stock
          options                1         50       ---       ---       51
        Preferred stock
          dividends             ---       ---       ---     (2,062) (2,062)
        Accretion of redeemable
          preferred stock
          discount                                             (96)    (96)
        Translation adjustments
          for year              ---       ---     1,598       ---    1,598
        Graham stock issuance    1        143       ---       ---      144
        Net loss for the year   ---       ---       ---   (238,326)(238,326)
        BALANCE AT 9/30/95     $462    $182,725 $1,329  $(372,759)($188,243)


        /CONTACT:  Jeff Withem, Corporate Communications, 404-876-3361, ext.
        8527; or Nancy Vandeventer, Investor Relations, 800-350-3044, both
        of
        Anacomp/



        PUBLIC SERVICE ENTERPRISE GROUP REPORTS 1995
EARNINGS OF $2.71 PER
        SHARE OF COMMON STOCK

        
            NEWARK, N.J., Jan. 16, 1996 -- Public Service
Enterprise
        Group Incorporated (Enterprise) (NYSE: PEG) reported today (January
        16, 1996) that consolidated earnings for the year 1995 were $662.3
        million or $2.71 per share of common stock, based on 244.7 million
        average shares outstanding.  Consolidated earnings for 1994 were
        $679.0 million or $2.78 per share, based on 244.5 million average
        shares outstanding.
        


            Enterprise's results for the year were affected by a combination
        of factors - despite higher electric sales and improved nonutility
        earnings - reflected in the results of its principal subsidiary,
        Public Service Electric and Gas Company (PSE&G).  These factors
        included higher maintenance expenses associated with the shutdown of
        the Salem Nuclear Generating Station and the scheduled refueling and
        maintenance outage of the Hope Creek Nuclear Generating Station;
        lower gas sales caused by mild weather during the 1995 winter
        months; higher depreciation expenses due to more plant in service,
        and certain adjustments related to federal taxes and allowance for
        funds used during construction (AFDC).
        


            Earnings for Public Service Electric and Gas Company (PSE&G),
        Enterprise's principal subsidiary, were $582.7 million or $2.38 per
        share of Enterprise common stock, compared with 1994 earnings of
        $618.9 million or $2.53 per share.
        


            Earnings for Enterprise Diversified Holdings Incorporated
        (EDHI), parent company of Enterprise's nonutility businesses, were
        $79.6 million or 33 cents per share of Enterprise common stock,
        compared with 1994 earnings of $60.1 million or 25 cents per share.
        


            EDHI's 1995 results reflect the collection of a bankruptcy
        settlement from Columbia Gas
Transmission Company
related to a take-
        or-pay contract with Enterprise's oil and gas business, Energy
        Development Corporation (EDC).  The settlement amounted to a one-
        time earnings gain of $23 million or 9 cents per share of Enterprise
        common stock recorded in the fourth quarter of 1995.
        


            Enterprise's earnings for the fourth quarter of 1995 were $152.3
        million or 62 cents per share.  Earnings for the corresponding
        period of 1994 were $131.8 million or 54 cents per share. Fourth-
        quarter results for PSE&G were $105.7 million or 43 cents per share,
        compared to $109.6 million or 45 cents per share in 1994.  In the
        fourth quarter, EDHI earned $46.6 million or 19 cents per share,
        compared to 1994 fourth-quarter earnings of $22.3 million or 9 cents
        per share.
        


            Enterprise's revenues for 1995 were $6.16 billion, compared to
        1994 revenues of $5.92 billion.  Fourth-quarter revenues for 1995
        were $1.67 billion, compared to $1.47 billion.
        


            PSE&G's electric sales to customers in 1995 increased by 1.3%
        when compared to 1994 sales.  Residential and commercial sales were
        up 2.8% and 1.6%, respectively, while industrial sales were down
        0.9%.
        


            Total gas sold and transported increased 3.0% in 1995.
        Residential and firm industrial sales decreased 5.9% and 19%,
        respectively, while firm commercial sales were up 0.4%.  The decline
        in industrial sales was largely due to a shift of customers to the
        transportation service gas firm sales category.  Firm transportation
        service increased 46.2%.
        


            PSE&G's electric sales increased 3.1% in the fourth quarter when
        compared to sales in the same period of 1994.  Residential sales
        increased by 3.5% and commercial sales were up 5.3%, while
        industrial sales decreased 1.7%.
        


            Total gas sold and transported increased 16.9% in the fourth
        quarter when compared to the same period of 1994.  Residential and
        firm commercial sales increased 14.7% and 15.9%, respectively, while
        firm industrial sales declined by 10.1%. Transportation service
        increased by 41.6%.
        


        /CONTACT:  Neil Brown, Corporate Communications of PSE&G,
        201-430-6017/




        FIBERCORP INTERNATIONAL, INC. FILES CHAPTER 11 PROCEEDINGS UNDER
        U.S. BANKRUPTCY CODE FOR FIBERCORP, INC. ITS WHOLLY OWNED
        SUBSIDIARY
        


            DELRAY BEACH, Fla., Jan. 16, 1996 -- FIBERCORP
        INTERNATIONAL, INC. (OTC Bulletin Board: FCII) today announced that
        its wholly owned subsidiary, href="chap11.fibercorp.html">FiberCorp, Inc. has filed a Chapter 11
        proceeding under the U.S. bankruptcy laws.  The current Company
        management will continue to manage the business as a "Debtor-in-
        Possession", pending a Plan of Reorganization.  Robert C. Furr, Esq.
        of Furr and Cohen, P.A., Boca Raton, Fl. (4O7-395-0500) has been
        retained as bankruptcy counsel to FiberCorp, Inc.
        


            Commenting on this action, Craig B. Stearns, Chairman, stated
        that "We have taken this step to provide the time frame necessary to
        concentrate our limited financial and human resources on
        demonstrating the commercial viability of FiberCorp, Inc.'s
        proprietary battery monitoring technology for commercial battery
        installations.  This battery testing technology is the key to our
        plan of re-organization. That plan will serve as a mechanism to
        address creditor claims and emerge as a stable and viable
        enterprise.
        


            "FiberCorp has accomplished a significant portion of its
        previously announced debt restructure plan,"  Mr. Stearns reported.
        "By year end 1995, approximately $1.250 million of closely held debt
        had been extinguished in exchange for approximately 2.5 million
        shares of newly issued common stock.  Nonetheless, the Company has
        not been successful in raising the necessary new capital to complete
        the remainder of the plan," Mr. Stearns added.
        


            Commenting further on the Company's direction, Mr. Stearns
        reiterated the previously announced intention to sell FiberCorp,
        Inc.'s T-1 Access technology.
        


            Fibercorp, Inc. markets and supports a complete line of pro-
        active vendor-independent transmission and power management systems
        for telecommunication networks and has developed a battery
        monitoring system for use at commercial battery installations.
        


        /CONTACT: Nancy Mlinarchik, FiberCorp, 407-495-5568; investor
        relations, Paul Cornell, 813-535-7380/



        CPTV ANNOUNCES LOSS FOR FIRST QUARTER OF FISCAL 1996; RESTRUCTURING
        PLAN PROCEEDING

        
            DENVER, Jan. 16, 1996 -- Creative Programming and
        Technology Ventures, Inc. (Nasdaq: CPTV), a producer of innovative
        video game development technology through its group of operating
        companies, today reported a net loss for the first quarter of fiscal
        1996 ended November 30, 1995.  The company also announced that it
        remains committed to its restructuring efforts, first announced in
        December 1995, which include a strong emphasis on video game
        development as well as management changes and cost reductions.
        


            CPTV reported revenues of $50,560 for the first quarter of 1996,
        down from $322,865 in fiscal 1995.  The company reported a net loss
        of $812,552, or 24 cents per share, for fiscal 1966 first quarter,
        compared with net income of $57,202, or 2 cents per share for the
        comparable period in fiscal 1995.  The drop in revenues and the net
        loss in earnings were primarily attributable to negative results at
        the company's Alexandria Studio's subsidiary.
        


            Revenues in the first quarter of fiscal 1996 declined due to the
        inability to secure new business contracts.  The company also
        reported increased SG&A expenses in the first quarter of fiscal 1996
        compared with 1995, due primarily to one-time severance and accrued
        vacation payments in connection with the end of employment
        relationships with certain Alexandria management personnel.
        


        Restructuring Plan Underway
        


    CPTV also reaffirmed its decision to re-align the company
        according to the guidelines first announced in early December 1995.
        These guidelines established the company's main priority for the
        future: building "next generation" entertainment software, including
        32-bit processing systems and CD-ROM technologies for the consumer
        marketplace. Other parts of the plan included management changes at
        Alexandria and reduced outside acquisition/investment activities.

        
            Gary Vickers, CPTV President, said, "We have made major
        investments in our OddWorld subsidiary's development of
        'SoulStorm(TM)' an interactive software game."  "SoulStorm" will be
        the first game in the "StoryDwelling Adventure(TM)" series, and it
        represents the company's current primary investment focus and
        business prospect.  The company believes the game will appeal to a
        wide variety of game players of any age because it incorporates
        adventure, action and strategy elements in one game.  "Although
        there can be no assurances that our game development efforts will be
        commercially successful, we have committed our full energies and
        resources to establishing a definitive product development and
        branding strategy in an attempt to position our company for a
        profitable fiscal 1997."  As a result of these investments, OddWorld
        reported no revenues for the three months ended November 30, 1995,
        and management projects that OddWorld will continue to report
        negative operating results until the completion of the "SoulStorm"
        title.
   

     
            CPTV has recently shown prototypes of the "SoulStorm" title to
        numerous third-party publishers and distributors and their
        preliminary indications of interest are very high.  Vickers noted,
        however, that the video game business is risky and literally
        thousands of game titles compete for available retail shelf space,
        which at any given time has room for only a few hundred select
        titles.  Vickers therefore cautioned that there is no guarantee that
        "SoulStorm" will be able to broadly secure the necessary shelf space
        and visibility it would need to achieve significant commercial
        success.  Vickers said, "I feel very positive about the feedback we
        are receiving on the title and relative prospects for CPTV
        investors.  With our main goal of building shareholder value, we
        have decided to restructure and thereby concentrate our resources on
        fewer opportunities having the best combined market potential."
      

  
            Creative Programming and Technology Ventures, Inc. (CPTV),
        through its operating subsidiaries, OddWorld Inhabitants and
        Alexandria Studios, headquartered in Los Osos, Calif., designs and
        develops interactive entertainment software for the latest video
        game systems, such as Sega Saturn, 3DO and Sony Playstation.  It
        also intends to focus on Windows 95 as a new and viable game
        platform.  CPTV is headquartered in Denver and its stock trades on
        the Nasdaq Small-Cap Market under the symbol CPTV.
        



              CREATIVE PROGRAMMING AND TECHNOLOGY VENTURES, INC.
                              AND SUBSIDIARIES
        
              CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
        
                                                   QUARTER ENDED NOVEMBER 30
                                                        1995        1994
        Revenues                                      $50,560     $322,865
        Cost of sales                                 189,017      344,094
        Gross profit (loss)                           138,457       21,229
        
        Selling, general and administrative expenses  719,223      371,044
        
        Loss from operations                         (857,690)    (392,273)
        Other credits (charges):
          Investment income                            51,186       95,528
          Interest expense                             (6,048)      (1,294)
        Loss from continuing operations              (812,552)    (298,039)
        
        Income tax benefit                                 --       88,935
        Minority interests in loss of
          consolidated subsidiaries                        --       26,720
        Loss from continuing operations              (812,552)    (182,384)
        
        Discontinued operations:
          Income (loss) from operations of
            divested subsidiary Celluloid,
            Studios, Inc., net of income tax
            expense of $63,200 in 1994.                    --      239,586
        
        Net loss                                    ($812,552)     $57,202
        
        Income (loss) per common share:
          Loss from continuing operations              ($0.24)      ($0.05)
          Income from discontinued operations              --         0.07
        Net income (loss)                              ($0.24)       $0.02
        
        Weighted average number of common shares    3,424,317    3,332,967
        
        CONSOLIDATED BALANCE SHEET (UNAUDITED)
                                                   NOVEMBER 30,  AUGUST 31,
        ASSETS                                         1995        1995
        Current assets:
          Cash and cash equivalents                  $443,016   $1,302,292
          Investments                               1,751,876    2,385,625
        Accounts receivable:
          Trade, net of allowance for doubtful accounts    --       48,331
          Related party                                    --        7,133
          Unbillable receivable                            --       24,440
          Prepaid expenses                            119,908       36,533
        Sale of discontinued operation:
        Note receivable under sale of
          discontinued operations                      74,723           --
        Current portion of note receivable                 --       72,526
            Total Current Assets                   $2,389,523   $3,876,880
        
        Property and equipment, net                   930,939      870,265
        
        Other assets:
          Certificate of deposit                      412,000     $412,000
          Investment                                   35,000       35,000
          Project costs                             1,761,778    1,469,644
          Excess of purchase price over net assets
            acquired, net of accumulated amortization
            of $27,591                                 75,266       76,800
          Note receivable under sale of
            discontinued operations, net of
            current portion                            97,457      111,206
          Organization costs and other                113,398      123,406
            Total                                   2,494,899    2,228,056
              Total assets                         $5,815,361   $6,975,201
        
        LIABILITIES AND SHAREHOLDERS' EQUITY
        Current liabilities:
          Current portion of long-term debt:
            Financial institution                    $134,776     $133,690
            Obligations under capital leases           33,647       33,595
          Accounts payable:
            Trade                                     102,770      211,356
            Related parties                                --      115,167
          Accrued expenses and other                   95,912      114,310
          Total current liabilities                   367,105      608,118
        
        Note payable, financial institution, net
          of current portion                          190,173      224,037
        Obligations under capital leases, net
          of current portion                           10,597       20,497
            Total long-term liabilities               200,770      244,534
        
        Shareholders' equity
          Preferred stock, par value $0.01;
            authorized 10,000,000 shares, issued
            and outstanding 1,000,000 (aggregate
            liquidation preference $10,000)            10,000       10,000
          Common stock, par value $0.01,
            authorized 50,000,000 shares,
            issued and outstanding, 3,425,000 shares   34,250       34,250
          Capital in excess of par                  8,355,641    8,335,641
          Deficit                                  (3,089,894)  (2,277,342)
          Less 111,121 shares common stock
            in treasury, at cost                      (62,511)          --
            Total shareholders' equity              5,247,486    6,122,549
        
              Total liabilities and
                shareholders' equity               $5,815,361   $6,975,201


        /CONTACT:  Gary Vickers, President & CEO, or Dr. Stephen
        Kirkpatrick, Vice President, of CPTV, 303-694-5324; Mike Sotak,
        General
        Information, of FRB Chicago, 312-640-6781/
    


Caldor receives extension of
exclusivity period

        
            NORWALK, Conn.--Jan. 16, 1996--The
Caldor
        Corporation
(NYSE: CLD) announced today that the U.S. Bankruptcy
        Court for the Southern District of New York has granted the Company
        an extension of the period under which it has the exclusive right to
        file a plan of reorganization with the court.  
        


            The exclusivity period, which had been scheduled to expire on
        January 17, 1996, has now been extended through July 31, 1996.
        Likewise, the period in which the Company can solicit acceptances
        for the reorganization plan has been extended through September 30,
        1996.
        


            The extensions were fully supported by the Company's bank group,
        the creditors' committee and newly formed equity committee.  
        


            Don Clarke, Chairman and Chief Executive Officer, said, "Since
        the time of the filing on September 18, 1995, we have focused our
        efforts on stabilizing our business operations and our relationships
        with vendors and the trade community, our employees, shareholders
        and customers.  This was particularly important with the Christmas
        season coming shortly after the filing.  With the extension of the
        exclusivity period, we can now continue with the preparation of our
        business plan that will serve as the foundation for our plan of
        reorganization."  
        


            The Caldor Corporation is the fourth largest discount department
        store chain in the U.S., with annual sales of approximately $2.8
        billion.  It operates 166 stores in ten East Coast states.  With a
        strong consumer franchise in high-density urban/suburban markets,
        Caldor offers a diverse merchandise selection, including both
        softline and hardline products.  
        


        CONTACT: Media: Wendi Kopsick/Jim Fingeroth,
                 Kekst and Company
                 (212) 593-2655
                           -OR-
                 Investor Relations: Dave Peterson
                 (203) 849-2334
        



        SPEC'S MUSIC REACHES AGREEMENT WITH LENDER

        
            MIAMI, Jan. 16, 1996 -- Spec's Music, Inc.
(Nasdaq: SPEK)
        previously announced that its primary lender has declared a default
        under its loan agreement with the company and demanded that the
        outstanding loan balance of approximately $14 million be repaid.
        Contrary to prior published reports, today the company reached
        agreement with the lender for a forty-five (45) day forbearance from
        all legal action in consideration for a partial principal repayment
        to facilitate the company's discussion with other financial
        institutions and lenders for replacement financing.
        


            Spec's Music, Inc. operates 57 stores in Florida and Puerto
        Rico. It is the largest specialty music retailer in Miami/Ft.
        Lauderdale, Tampa and Florida's eastern Gold Coast.
        


        /CONTACT:  Barbara Goldberg, O'Connell & Goldberg, 305-964-9098/




AUDRE announces top management changes

        
            SAN DIEGO--Jan. 17, 1996--Audre
Recognition
        Systems Inc.
(Audre) Wednesday announced that its board and the
        board of directors of AUDRE Inc. have requested and he has agreed,
        that Thomas F. Casey step down as the president of AUDRE Inc. and
        Audre Recognition Systems Inc. effective Jan. 15, 1996.
        


            The boards of directors have decided that on an interim basis,
        Dr. James Fiebiger and Donald Lundell will share the duties of the
        offices of president and chief executive officer of both companies.
        The boards of directors have determined that such action was in the
        best interest of the two companies and will aid and assist the
        companies in their on-going efforts to successfully reorganize
        pursuant to Chapter 11 of the United States Bankruptcy Code.
        


            The companies are currently discussing a possible consulting
        agreement with Casey, but as of this date, no agreement has been
        reached.
        


            AUDRE (AUtomatic Digitizing and REcognition), founded in 1983,
        is a designer and developer of automatic document conversion
        software.  AUDRE designs, develops and markets a line of proprietary
        applied intelligence-based software systems.  AUDRE's products are
        used to convert engineering drawings, technical publications and
        maps to computer intelligent formats.
        


        CONTACT: Tim Kent, 310/442-0599