EAGAN, Minn., Jan. 25, 1996-- Cray Research Inc.,
        (NYSE:CYR) reported a net loss of $25.6 million, or $1.00 per share
        on revenues of $236.3 million for the fourth quarter ending December
        31. The results include a restructuring and one-time charge of $42.6
        million pre-tax or $1.45 per share after tax. Net earnings per share
        prior to restructuring and one time charges would have been $ .45
        for the quarter. This compares with net earnings of $9.5 million or
        $ .38 per share on revenues of $237.1 million for the comparable
        quarter a year ago including one time and restructuring charges of
        $8.3 million pre-tax or $ .23 per share after tax.

            For the full year, the Company reported a net loss of $226.4
        million, or $8.95 per share, on revenues of $676.2 million. This
        compares with net earnings of $55.7 million or $2.16 per share on
        revenues of $921.6 million for the previous fiscal year.

            Orders totalled $266 million in the quarter compared with $147
        million and $270 million for the third quarter of 1995 and the
        fourth quarter of 1994 respectively. Orders for the full year
        totalled $650 million, up 12% from the previous year. Backlog at the
        end of the year stood at $437 million up 23% from the third quarter
        and up 84% from 1994 and represent the highest level of year end
        backlog in the Company's history. Cash and equivalents at the end of
        the year totalled $254 million.

            Product gross margins in the fourth quarter were 42% up from 35%
        in the third quarter, as the Company began shipping new high-end
        CRAY T90 systems in higher volume. Product gross margins declined in
        both the fourth quarter and the full year compared with the
        comparable periods a year ago, due to increased volumes of lower
        priced mid-range systems and lower overall volumes of high end
        systems shipped for the full year. Service gross margins were 27%
        for the quarter and 29% for the full year, up from the comparable
        periods a year ago due to lower spare parts requirements, as well as
        overall cost reductions and greater efficiency in service delivery.

            Total operating expenses prior to restructuring declined 8% for
        the quarter and 7% for the full year compared with the similar
        periods a year ago. One-time and restructuring charges in the fourth
        quarter of $42.6 million are related to inventories, severance
        payments for employees and miscellaneous restructuring actions.
        Approximately 62% of the charges are non-cash in nature. For the
        year, the Company has reported one-time and restructuring charges of
        $187.7 million, $149.0 million of which are non-cash in nature.

            Commenting on the results, Cray's chairman and chief executive
        officer J. Phillip Samper said: "In 1995, we laid out a game plan
        for the year and we followed it. Our fourth quarter results are
        delivering on what we said previously.

            "We also said we expect to be profitable in 1996, but our
        performance will be much stronger in the second half of the year.
        The first half will not be profitable and this first half weakness
        is directly associated with the delivery schedule for new products.
        Our efforts in the first half of 1996 will continue to focus on
        reducing costs, increasing our efficiency, improving asset
        utilization and more rapid execution.

            "In 1995 we experienced growth in several critical dimensions as
        we see more and more customers coming into our space. We continued
        to set a record in the number of Cray systems installed, saw more
        than 40% of our business come from new customers, more than half
        from newly announced products, and our customers ordered more than
        twice the number of Megaflops from Cray in 1995 compared with 1994.
        Our system installed base grew 25% this year and, at nearly 800
        systems, stands at an all time high.

            "My optimism for 1996 is based on our strong new product line-up
        and backlog coupled with our loyal customer base, increasing
        awareness of Cray's value to new customers, and our talented
        employees," Samper concluded.

            The above statements concerning 1996 and the following
        statements are based on current expectations. These statements are
        forward looking and actual results may differ materially.

            There are several factors that make the Company cautious on the
        first half outlook. CRAY T90 systems, while increasing in volumes,
        will not be at full volume until sometime in the second quarter.
        CRAY T3E systems, with strong demand as reflected in backlog, are
        not scheduled to begin shipping until later in the year, and the
        Company's commercial effort, which management views as a long term
        growth opportunity for Cray, will not have a significant or positive
        impact on overall financial results in 1996. Given these factors,
        while the Company anticipates an operating profit for the full year
        1996, it anticipates operating losses in the first half.

            The foregoing statements contained in this outlook are forward
        looking statements that involve a number of risks and uncertainties.
        Various factors could cause the actual results to differ materially
        from such anticipated results, including timely availability of
        third party components at reasonable prices, delays in shipment of
        new products, business conditions and changes in customer demand or
        spending patterns, the growth in high performance computing and the
        general economy, uncertainty in government funding, inventory risks
        associated with shifts in demand and/or price erosion of purchased
        components, additional restructuring charges which may need to be
        incurred, competitive factors including product introductions,
        pricing actions or business combinations and alliances and the risk
        factors listed from time to time in the company's SEC reports,
        including but not limited to the report on Form 10-Q for the quarter
        ended September 30, 1995.
            Cray Research provides the leading high-performance tools and
        services to help solve customers' most challenging problems.

                                        Three Months Ended
                                           December 31
                                         1995        1994
                                      ----------  ----------
                                      (In thousands, except
                                           per share data)
         Sales and lease               $ 188,154   $ 185,448
         Service fees                     48,115      51,618
        ----------------------------   ---------   ---------
          Total revenue                  236,269     237,066
        ----------------------------   ---------   ---------
        Cost of revenue:
         Cost of sales and lease         109,103      95,574
         Cost of services                 35,201      40,685
        ----------------------------   ---------   ---------
          Total cost of revenue          144,304     136,259
        ----------------------------   ---------   ---------
        Gross profit                      91,965     100,807
        ----------------------------   ---------   ---------
        Operating expenses:
         Development and engineering      30,981      31,661
         Sales, marketing & G & A         44,280      50,001
         Restructure & one-time charges   42,559       8,296
        ----------------------------   ---------   ---------
          Total operating expenses       117,820      89,958
        ----------------------------   ---------   ---------
        Operating income (loss)          (25,855)     10,849
         Other income (expense), net        (777)      1,954
        ----------------------------   ---------   ---------
        Earnings (Loss) before taxes     (26,632)     12,803
         Income tax benefit (expense)      1,003      (3,304)
        ----------------------------   ---------   ---------
        Net earnings (loss)            $ (25,629)   $  9,499
        Earnings (Loss) per common and
         common equivalent share      $   (1.00)  $    0.38
        Average number of common and
         common equivalent shares
         outstanding                      25,520      25,648
                                        Twelve Months Ended
                                           December 31
                                         1995        1994
                                      ----------  ----------
                                       (In thousands, except
                                          per share data)
         Sales and lease               $ 468,315   $ 727,725
         Service fees                    207,929     193,884
        ----------------------------   ---------   ---------
          Total revenue                  676,244     921,609
        ----------------------------   ---------   ---------
        Cost of revenue:
         Cost of sales and lease         289,158     376,740
         Cost of services                147,411     151,407
        ----------------------------   ---------   ---------
          Total cost of revenue          436,569     528,147
        ----------------------------   ---------   ---------
        Gross profit                     239,675     393,462
        ----------------------------   ---------   ---------
        Operating expenses:
         Development and engineering     122,965     140,632
         Sales, marketing & G & A        167,259     170,062
         Restructure & one-time charges  187,670       8,296
        ----------------------------   ---------   ---------
          Total operating expenses       477,894     318,990
        ----------------------------   ---------   ---------
        Operating income (loss)         (238,219)     74,472
         Other income (expense), net       2,423       3,261
        ----------------------------   ---------   ---------
        Earnings (Loss) before taxes    (235,796)     77,733
         Income tax benefit (expense)      9,432     (22,037)
        ----------------------------   ---------   ---------
        Net earnings (loss)            $(226,364)  $  55,696
        Earnings (Loss) per common and
         common equivalent share       $   (8.95)  $    2.16
        Average number of common and
         common equivalent shares
         outstanding                      25,282      25,845
                                                December 31  December 31
                                                   1995         1994
                                               ------------  -----------
        Assets                                       (In thousands)
        Current assets:
         Cash and equivalents                   $  104,425    $   55,543
         Receivables                               156,039       229,808
         Inventories                               177,359       207,496
         Other current assets                       60,082        41,191
        --------------------------                --------      --------
          Total current assets                     497,905       534,038
        Long-term receivables                       22,165        20,959
        Leased systems and spares, net              69,671       110,207
        Property, plant and equipment, net         200,875       265,116
        Long-term cash investments                 150,000       200,000
        Other assets                                37,438        51,559
        ------------------------                 ---------     ---------
                                                $  978,054   $ 1,181,879
        Liabilities and Stockholders' Equity
        Current liabilities:
         Current installments/long-term debt    $    5,679    $    7,344
         Accounts payable                           42,924        37,999
         Accrued expenses                           99,314       110,373
         Income taxes payable                            0         7,009
         Deferred income and customer advances     124,255        75,214
        -----------------------------             --------       -------
          Total current liabilities                272,172       237,939
        -----------------------------             --------       -------
        Long-term debt, excluding
         current installments                       92,682        97,000
        Other long-term obligations                 10,772        18,030
        Stockholders' equity:
         Common stock                               31,511        31,511
         Additional paid-in capital                 70,697        91,973
         Retained earnings                         696,196       922,560
         Foreign currency translation adjustments    5,773         2,774
         Unearned compensation-restricted stock     (5,339)            0
         Treasury stock, at cost                  (196,410)     (219,908)
        -------------------------------            -------       -------
          Total stockholders' equity               602,428       828,910
        -------------------------------            -------       -------
                                                 $ 978,054    $1,181,879
                                                  December 31, 1995
        SELECTED BALANCE SHEET ITEMS:             ------------------
        Total cash & investments                     $ 254,425,000
        Receivables                                  $ 156,039,000
         Raw material                                $  90,891,000
         Work in process                                47,403,000
         Finished goods                                 39,065,000
        -------------------------------------      -----------------
          Total                                      $ 177,359,000
        -------------------------------------      -----------------
                                     Three Months     Twelve Months
                                        Ended             Ended
                                    Dec. 31, 1995     Dec. 31, 1995
                                    -------------     -------------
        Interest received           $  2,715,000      $ 12,194,000
        Interest paid                  1,028,000         9,015,000
        Depreciation and              33,320,000       139,138,000
        Expenditure for property,
           plant and equipment         7,844,000        49,164,000
        Effect of exchange rate          325,000         2,558,000
           changes on cash
        Overall gross profit margin        38.9%             35.4%
         Sales and lease gross profit      42.0%             38.3%
         Service gross profit margin       26.8%             29.1%
        REVENUE BY GEOGRAPHY:   ($000's)    %      ($000's)    %
                                -------- --------  -------- --------
        Revenue U.S.            $ 88,601   37.5%   $291,769   43.1%
        Revenue International    147,668   62.5%    384,476   56.9%
        Orders                           266,000            650,000
         % Growth (decline)               (1.5)%              11.9%
        Backlog                             --              437,000
         % Growth year-to-year              --                84.4%
        Total number of employees                              4225

            (In conjunction with the company's announcement today of
        financial results for the fourth quarter and year ended Dec. 31,
        1995, Cray Research, Inc., is providing this more detailed summary
        of order activity.)

            The value of orders for the fourth quarter totalled $266
        million, up more than 80 percent from the strong $147 million figure
        for third- quarter 1995. Total order value for 1995 was $650
        million, up about 12 percent over 1994 order value of $581 million.
        Year-end 1995 order backlog was $437 million, most of which is
        scheduled for delivery in 1996. This represents an 84 percent
        increase over 1994 year-end order backlog of $237 million and the
        highest year-end backlog level in Cray's history.

            Year-end 1995 backlog includes about $160 million, or more than
        35 percent, in advance orders-to-date for Cray's recently announced
        CRAY T3E scalable parallel processing system, scheduled to begin
        shipments in first-half 1996. Cray said advance orders for the CRAY
        T3E system are stronger than expected and well ahead of the pace set
        by the prior- generation CRAY T3D system. The company said about 45
        percent of the backlog is from the CRAY T90 Series systems.

            "We are pleased by the strong interest in our new CRAY T3E and
        CRAY T90 systems and by the success of all Cray's products," said J.
        Phillip Samper, Cray chairman and chief executive officer. "We
        already have received several orders for our most powerful 32-
        processor CRAY T90 systems and the CRAY J90 systems are the fastest
        selling product in our company history."

            In addition to customers disclosed in the November 28, 1995,
        CRAY T3E product announcement, Cray Research won fourth-quarter
        orders for the CRAY T3E system from customers including the
        University of Hannover; Technical University of Berlin; Konrad Zuse
        Center for Information Technology Berlin; and the Norwegian
        University for Science and Technology, for academic and dedicated
        use by the Norwegian Meteorological Office for operational weather
        forecasting. Cray said it already has received an order for a CRAY
        T3E system with more than 1,000 processors from an undisclosed
        customer and that the average system is more than 128 processors,
        far exceeding the average processor count of competing parallel
        systems. Additional fourth-quarter CRAY T3E customer names are being
        withheld at the customers' requests.

            Cray said about 40 percent of 1995 orders came from new
        customers, largely reflecting the firm's continued expansion from
        its high-end supercomputing leadership base into new technical and
        commercial growth markets with higher-volume, lower priced systems
        such as the CRAY J90 compact supercomputers and the CRAY CS6400
        enterprise database servers. Cray's installed system base has more
        than tripled in recent years, from about 250 in 1990 to nearly 800
        systems at year-end 1995.

            "Cray is firmly committed to maintaining our commanding lead in
        the high-end supercomputer market, while leveraging this experience
        in new technical and commercial markets," Samper said.

            During the fourth quarter Cray received a large, multiple system
        order for high-end systems from Ford Motor Company; high-end
        supercomputer orders from an undisclosed aerospace organization;
        Italy's Energy Production Center (ENEL); Kia Motors in Korea;
        Italian auto firm Fiat; and four leading Japanese industrial
        companies including the previously announced order from Nippon
        Telegraph and Telephone Corp.; as well as orders for lower-priced
        supercomputers from Carnegie Institution of Washington, Washington,
        D.C.; Inter-University Computer Center in Israel; NASA and U.S. Navy
        sites; the University of Oklahoma's Center for the Advanced
        Prediction of Storms; the National Oceanographic and Atmospheric
        Administration's National Environmental Satellite Data and
        Information Service, Suitland, Md.; an order for six systems from
        French auto company PSA Peugeot Citroen; and orders from three
        separate Korean government organizations - Agency for Defense
        Development, Seoul National University, and the Korea Institute of
        Science and Technology. Several of these procurements involved
        competition from SGI, Convex and IBM.

            In the fourth quarter, over 50 percent of Cray Business System
        orders were from new customers. Orders came from LG Electronics in
        Korea; several Japanese universities including Chiba University,
        which is using the CS6400 system as the university's Web Server; a
        European telecommunications firm; and an order through Amdahl
        expected to be installed at a European transportation firm. More
        than 60 percent of the fourth-quarter orders for the CS6400 business
        server were received through Cray's established global indirect
        distribution channels.

            Key targets for Cray's business servers are financial services,
        telecommunications, retail, travel/transportation, and government
        rightsizing markets. Cray said in 1995 the company set out to
        capture high-profile reference customers in these target markets and
        added customers including MCI Telecommunications, American
        Automobile Association, Bank of America, and the Federal Bureau of
        Investigation to its growing list of business server customers.

            Cray Research provides the leading high-performance computing
        tools and services to help solve customers' most challenging

        CONTACT: Steve Conway, Media, 612-683-7133 and Brad Allen,
        Financial, 612-683-7395, both of Cray Research, Inc.

            FORT WORTH, Texas, Jan. 24, 1996 -- Color Tile, Inc.
        today announced that, as a result of a severe downturn in the
        flooring products industry and its inability to service its debt, it
        has filed a voluntary petition to reorganize under Chapter 11 of the
        Federal Bankruptcy Code.  The filing, which was made in the U.S.
        Bankruptcy Court for the District of Delaware, will enable the
        company to continue its business operations while it reorganizes its
        operations and financial structure to respond to current business

            Color Tile said that it has entered into a $15 million debtor-
        in- possession (DIP) financing agreement with its existing bank
        syndicate led by Chemical Bank, subject to Bankruptcy Court
        approval.  Today, the Bankruptcy Court approved $5 million of the
        DIP facility on an emergency basis.  These funds (together with all
        proceeds from its current inventory) will be available to, among
        other things, meet the company's continuing obligations to suppliers
        and vendors during the restructuring process.  In addition, the
        Bankruptcy Court approved orders that will enable Color Tile to
        continue paying salary and benefits to all its employees throughout
        the country.

            Color Tile also said that American Blind and Wallpaper Factory,
        Inc. (ABWF), the company's Plymouth, Michigan-based, wholly owned
        subsidiary engaged in the sale of name-brand and private-label
        window treatments and wall coverings on a special-order basis, is
        not involved in or affected by the Chapter 11 filing, and that ABWF
        has entered into a separate credit facility with the bank syndicate
        led by Chemical Bank that will allow it to operate independently and
        separately from its parent's reorganization process.

            The restructuring of Color Tile will be led by Bart A. Brown,
        Jr., its Chairman and CEO, and by Larry Ramaekers, a principal in
        the Southfield, Michigan firm of Jay Alix and Associates, who today
        was named its President and Chief Operating Officer.  Mr. Brown  was
        recently Chairman and CEO of The Circle K Corporation, which
        successfully emerged from Chapter 11 in 1993.  Mr. Ramaekers, age
        57, has successfully led the reorganization of several companies
        over the past 10 years, including the recent return to profitability
        of National Car Rental Systems, Inc., of which he was President.

            "Over the past year, Color Tile has confronted an extremely
        difficult floor covering retail environment and many of our stores
        currently are not profitable," said Bart A. Brown, Jr., Chairman and
        Chief Executive Officer of Color Tile.  "We have been working with
        our lenders over the past several months to develop a plan to
        restructure the company.  We intend to use the Chapter 11 process to
        restructure Color Tile along financial and operational lines that
        are consistent with the new marketplace that is taking shape.  The
        DIP facility will provide Color Tile with the flexibility it needs
        to continue its revitalization program.  Color Tile has an
        experienced management team, loyal franchisees, national purchasing
        power, strong customer recognition and a service commitment that
        distinguishes it from other full-service flooring retailers.  With
        these competitive advantages, I am confident we can set Color Tile
        back on a profitable growth track."

            Mr. Ramaekers said, "I am delighted to join the Color Tile team.
        The Color Tile name and its employees have been well respected in
        the floor covering business for over 40 years.  We intend to
        capitalize on the company's strengths and focus our efforts on areas
        where the company already excels, such as in providing the highest
        level of service to our customers."

            Color Tile, Inc. is "America's Flooring Store," retailing
        carpet, ceramic and vinyl floor covering products.  Color Tile
        operates 620 company owned stores and 154 franchisee-owned stores in
        49 states serving the residential and commercial markets.

        CONTACT:  James N. Fingeroth, or Todd Fogarty, both of Kekst and
        Company, 212-593-2655


        QUARTER RESULTS," moved yesterday, Jan. 23,1996  we are informed
by the company that the quotation in the fifth graph should include the
        additional sentence: "The Company continues to rely upon cash
        collections to meet its operating needs."  Also, the fifth graph
        should be followed by a "Safe Harbor" Statement.  Complete,
        corrected release follows.


            SACRAMENTO, Calif., Jan. 23, 1996 -- Physicians Clinical
        Laboratory, Inc. (Nasdaq: PCLI), today reported results for the
        third quarter of fiscal 1996.

            For the quarter ended November 30, 1995, PCLI reported revenues
        of $21,614,000 compared with revenues of $28,919,000 in the third
        fiscal quarter of 1995.  Operating losses before one-time charges
        were $2,800,000 versus an operating loss of $635,000 in the prior
        year. Taking into effect one-time charges of $2,556,000 or
        approximately $0.42 per share, related to credit restructuring
        activities and the write-down of accounts receivable, the Company
        reported a net loss of $8,757,000 or $1.45 per share, compared with
        net loss of $1,793,000, or $0.29 per share for the same period one
        year ago.

            For the first nine months of fiscal 1996, PCLI reported revenues
        of $70,830,000 compared with $87,057,000 for the first six months of
        fiscal 1995.  Operating losses before one-time charges were
        $3,523,000 compared with operating income of $5,198,000 in the same
        period one year ago. Taking into effect the one-time charges, the
        Company reported a loss of $20,808,000, or $3.44 per share, versus
        net loss of $495,000, or $0.08 per share, for the first nine months
        of fiscal 1995.

            Commenting on the third fiscal quarter results, President and
        Chief Executive Officer, Nate Headley, said "Fiscal results at the
        beginning of our third fiscal quarter provided the basis for the
        complete restructuring of our Southern Region operations.  That
        effort, resulting in an approximate annualized savings of
        $9,500,000, and the elimination of 220 full-time employees was
        completed in December of 1995, and not reflected in third fiscal
        quarter results."

            Headley continued, "The Southern Region restructuring included
        not only substantial reduction in operating costs but also the
        recognition and elimination of non-profitable capitation contracts.
        It has become obvious that our Industry can no longer sustain
        services under capitation without careful analysis of current
        individual contract profitability.  The steadily increasing
        penetration of managed care in California tends to place many
        contracts in a precarious environment with respect to continued
        profitability.  The Southern region restructuring in combination
        with the recent purchase of the Company's senior debt by an investor
        group led by Fidelity Investments and Oaktree Capital Management has
        substantially strengthened the Company's financial stability and
        operating environment on a going forward basis. The Company
        continues to rely upon cash collections to meet its operating

            The following is a "Safe Harbor" Statement under the Private
        Securities Litigation Reform Act of 1995:

            The statements contained in this release that are not historical
        facts are forward looking statements.  Actual results may differ
        materially from those projected in the forward looking statements.
        These forward looking statements involved risks and uncertainties,
        including but not limited to the following: actual results of
        operations following the restructuring of the Company's Southern
        Region, the Company's ability to continue to eliminate non-
        profitable contracts and operations, and the other factors
        identified in the Company's Report on Form 10-Q for the quarter
        ended November 30, 1995 and other documents filed by the Company
        with the Securities and Exchange Commission.

                    (In thousands, except for per share data)
                                     Three Months Ended  Nine Months Ended
                                        November 30,        November 30,
                                       1995     1994       1995     1994
        NET REVENUE                  $21,614   $28,919   $70,830   $87,057
        DIRECT LABORATORY COSTS        7,599     8,356    24,284    27,143
         Gross Profit                 14,015    20,563    46,546    59,914
        LABORATORY SUPPORT COSTS       6,318     6,014    18,961    18,367
         Laboratory Profit             7,697    14,549    27,585    41,547
        OVERHEAD EXPENSE              10,497    15,183    31,108    36,349
        CREDIT RESTRUCTURING EXPENSE     499        --     3,011        --
          VALUE                        2,057        --     5,057        --
         Operating Income             (5,356)     (634)  (11,591)    5,198
          net                          3,401     2,431     9,217     5,983
        INCOME TAXES                       0    (1,273)        0      (290)
         Net Income (Loss)           $(8,757)  $(1,792) $(20,808)  $  (495)
         Primary                     $ (1.45)  $ (0.29)  $ (3.44)  $ (0.08)
         Fully  Diluted              $   N/A   $   N/A   $   N/A   $   N/A
         Primary                   6,031,000 6,182,000 6,049,000 6,164,000
         Fully  Diluted                  N/A       N/A       N/A       N/A

        CONTACT: Nathan L. Headley of Physicians Clinical Laboratory, Inc.,


            BRANSON, Mo., Jan. 24, 1996 -- ITEC
announced today the filing of a Chapter 11 bankruptcy
petition and the proposed sale of its OZARKS DISCOVERY IMAX THEATER
        Branson, Missouri within the bankruptcy case.  ITEC developed the
        Ozark Discovery IMAX Theater and Mall in Branson as a part of a
        corporate strategy to become a multi-facility company.  In the fall
        of 1994, the company had a secondary offering of its stock which was
        to finance the second facility in St. Thomas, U.S. Virgin Islands
        and to provide some funding to complete the "Ozark" theme film for
        the Branson facility.  This offering failed, and ITEC was forced to
        borrow short term funds to complete the production of the film.

            The burden of this additional debt proved too heavy for one
        facility to carry.  Thus the company has determined to sell the
        Branson complex.

            In order to facilitate the sale and to restructure and reduce
        its existing debt, ITEC is filing for Chapter 11 protection under
        the Bankruptcy Laws.  The sale of the Branson facility is the source
        of the funds with which the company will make payments to creditors.
        The exact terms of the sale and the details of the Chapter 11 plan
        will be finalized after all required parties tender their approval.

            Kelvyn H. Cullimore, President of ITEC Attractions explained,
        "It has been our goal to have the very best IMAX Theater operation
        in the country.  We have endeavored to be contributing members of
        this community, and we have always placed the needs and the
        satisfaction of our customers above all else.  We feel that in most
        ways we have met our goals and been successful in our efforts.  Our
        satisfaction rating at the theater is tops, and McFarlain's
        restaurant has been a success since the first day we opened.  I can
        not give enough praise to our great team of people who have created
        this fine institution in the period of just two short years.  It is
        unfortunate that the debt structure of the company was such that the
        sale of the facility was necessary.  We are pleased that DESTINATION
        CINEMA has a commitment to meeting the high standards of
        entertainment and customer satisfaction that we have instituted."

            In addition to the IMAX Giant Screen Theater, Destination Cinema
        is purchasing the mall, McFarlain's Restaurant, Gingerbread Kids
        Children's Shoppe, and two films which anchor the programming at the
        theater: Ozarks: Legacy and Legend," and "Neighbors."

            In announcing the sale, Cullimore said, "Destination Cinema is
        the major player in the private sector of the giant screen industry.
        Their financial strength and their vast experience in operating
        tourist destination giant screen theaters will enhance the positive
        experience of our facility and will be a significant addition to the
        Branson entertainment community."

            Richard James, President of Destination Cinema stated, "It is
        anticipated that there will be little or no change in the operations
        of the Ozarks Discovery IMAX theater.  We are impressed with the
        quality of the management personnel here, we have never seen a
        stronger team of people with a spirit of commitment to customer
        service.  We want to perpetuate that spirit."

            Both ITEC and DESTINATION CINEMA have committed to making the
        transition of the ownership as smooth as possible.  James stated,
        "We are confident that the receptive operators, tour companies and
        individual customers will not sense any difference in the way the
        business has been operated.  With additional resources, we hope to
        be able to develop the company's operations even further."

        CONTACT:  Bob Cardon, Corporate Secretary of International Tourist
        Attractions Entertainment Corp., 801-566-9000/

EARNINGS; The Company Also Announces Preliminary Fourth Quarter Sales

            WHEELING, Ill.--Jan. 25, 1996--SPORTMART, INC.
        (NASDAQ NM: SPMT, SPMTA) today announced it will record a $4.8
        - $5.4 million charge, after related income taxes, against its
        fourth quarter earnings.  These charges, designed to improve the
        Company's future profitability, include:

            Sportmart's "No Contest!"  division, which consists of four
        locations selling footwear and apparel, will be closed in order for
        the Company to focus its efforts solely on its superstores.  

            The two mart closings are due to cannibalization from newer
        neighboring Sportmart marts at better locations.  The River North
        mart was impacted by the Company's new flagship LaSalle Street store
        located six blocks away.  The Wheeling mart, now impacted by three
        newer marts, has been operating as a clearance center since May of

            Lastly, Sportmart will reserve funds for severance in
        conjunction with the retirement of Sanford Cantor, Co-Founder and
        Vice Chairman of the Company, as well as other personnel
        restructuring.  Sportmart also announced that it estimates sales for
        the fourth quarter of 1995 to be approximately $152 - $153 million.
        This sales estimate has been developed assuming that the last week
        of January's sales continue on current trend for January.  The
        Company also estimates that comparable store sales for the quarter
        will be approximately 1.5% below the prior year's fourth quarter,
        once again assuming that the last week of January sales continue on
        current trend.  Sales estimates for any period which has not yet
        occurred are subject to various risks, including adverse weather,
        general economic conditions, adverse effect of competition and the
        general retail environment.

            Andrew S. Hochberg, President of Sportmart, Inc., said, "In this
        increasingly competitive operating environment, we must continually
        examine our business to ensure we are achieving maximum operating
        efficiencies.  As a result of such examination, we have elected to
        concentrate our energy and resources on our core full-line sporting
        goods business.  Additionally, the marts we intend to close were
        both cannibalization victims of stronger performing marts in the
        local area.  

            "Company wide sales were lower than anticipated, due to lower
        than expected sales in the nine Canadian stores opened during 1995
        and lower than anticipated sales of ski related merchandise,
        especially on the West Coast.  Also, the increased promotional
        nature during the holiday season resulted in increased advertising
        expenditures and lower overall gross margins.  The lower gross
        margins in the quarter were necessary to ensure an average mart
        inventory level estimated to be $2.5 - $2.6 million at year end,
        which would approximate the prior year's level.  The Company will
        incur a loss for the quarter, both before and after the nonrecurring
        charges.  While these results are disappointing, we nevertheless
        remain confident that these nonrecurring charges together with the
        other significant changes made within our organization since mid-
        1995 should positively impact our future results."  

            The Company anticipates announcing audited fourth quarter and
        year end results in mid-March.  

     "Safe Harbor"  Statement under
        the private Securities Litigation Reform Act of 1995: The statements
        which are not historical facts contained in this release are forward
        looking statements that involve risks and uncertainties, including,
        but not limited to, product demand and market acceptance risks, the
        effect of economic conditions, the impact of competitive products
        and pricing, product development, commercialization and
        technological difficulties, capacity and supply constraints or
        difficulties, the results of financing efforts, actual purchases
        under agreements, the effect of the Company's accounting policies,
        and other risks detailed in the Company's Securities and Exchange
        Commission filings.  

        CONTACT: Company Contact:
                 Tom Hendrickson,
                 Chief Financial Officer,
                 Investor Relations Contact:  
                 John Nesbett,
                 Lippert/Heilshorn & Assoc.,
                 212-838-3777 ext. 101


            MIDLAND, Mich., Jan. 25, 1996 -- The following was
        released by Dow Chemical Company (NYSE: DOW):

                            1995 Year End Highlights

                       Fourth Quarter of 1995 Highlights

                 (In millions, except for per share amounts)
                                      3 Months Ended    12 Months Ended
                                          Dec. 31            Dec. 31
                                       1995    1994       1995    1994
        Net Sales                     $4,594  $4,612    $20,200 $16,742
        Operating Income                 663     518      3,891   1,820
        Income from  Continuing          415     181      1,884     765
        Earnings per Common Share       1.63    0.65       7.03    2.77
          from Continuing Operations
        Earnings Per Common Share       1.63    0.80       7.72    3.37

            Note:  Results for 1994 and the first quarter of 1995 have been
        restated to present Dow's pharmaceutical businesses as discontinued
        operations after their sale in the second quarter of 1995.

        Review of Annual Results

            The Dow Chemical Company today announced that 1995 sales totaled
        a record $20.2 billion, a 21 percent increase from $16.7 billion in
        1994. Increases of 4 percent in volume and 16 percent in price
        contributed to the year's sales gain.  Operating income for the year
        more than doubled to $3.9 billion from $1.8 billion in 1994.

            Earnings were $7.72 per share in 1995 versus $3.37 per share in
        1994.  Excluding earnings from discontinued operations and gains and
        charges, earnings were $8.27 per share in 1995, up 152 percent
        versus $3.28 per share in 1994.

            All of Dow's business segments - Chemicals and Performance
        Products, Plastics, Hydrocarbons and Energy, and Consumer
        Specialties - reported higher sales in 1995 compared to 1994.
        Operating income for all segments, except Hydrocarbons and Energy,
        increased versus 1994. The most significant increases were in
        Chemicals and Performance Products, with operating income rising 159
        percent, and Plastics, with an increase of 120 percent, reflecting
        solid price gains in the first half of 1995.

            The 1995 earnings were impacted by a $1.24 per share investment
        write down related to Dow Corning's
filing for protection under
        Chapter 11 of the United States Bankruptcy code, and a gain of $0.62
        per share from the sale of Dow's pharmaceutical businesses.  This
        year's earnings include $0.07 per share from discontinued
        operations.  Earnings in 1994 included a $0.46 per share charge
        related to the contemplated sale of the DowBrands Personal Care
        business, and a gain of $0.20 per share from the sale of Dow's
        investment in the Magma Power Company.  As well, in 1994 Dow
        recorded a $0.25 per share after tax loss as a result of a special
        charge taken by Dow Corning to cover
costs related to breast implant
        litigation.  The 1994 earnings include $.060 per share from
        discontinued operations.

            "We had a very strong year in 1995.  The company set a sales
        record and posted its third highest earnings,"  said William S.
        Stavropoulos, President and CEO.  "I am particularly pleased with
        the performance of our growing industrial specialties, which include
        Fabricated Products, Thermosets, and Performance Products.
        Operating income from these businesses was $1.3 billion, a 59
        percent increase over last year."

            "Throughout the year we made many significant changes to enhance
        our ability to create value growth and increase productivity over
        the long- term," said Stavropoulos.  "In addition, through a series
        of strategic acquisitions and divestitures, including the sale of
        Marion Merrell Dow, and moves to purchase production sites in Italy
        and Argentina, we are shifting our business portfolio to focus our
        resources on our core businesses.  We are well positioned for
        another good year."

        Fourth Quarter of 1995 Results

            In the fourth quarter of 1995, operating income rose 28 percent
        to $663 million compared to $518 million in the same period last
        year, on flat sales.  Sales in the fourth quarter were $4.6 billion,
        representing price gains of 2 percent and volume declines of 2

            Earnings per share from continuing operations in the fourth
        quarter of 1995 were $1.63 per share up 151 percent versus $0.65 per
        share in the same period last year.  Excluding the impact of charges
        and gains, Dow's fourth quarter 1994 earnings per share from
        continuing operations were $1.16.

            Operating income for all of the business segments improved, with
        the exception of Hydrocarbons and Energy, versus the fourth quarter
        of 1994. The fourth quarter performance improvement was the result
        of the continued strength of the industrial specialties businesses
        which contributed 55 percent of the quarter's operating income.

            Operating income for Chemicals and Performance Products was $285
        million, up 40 percent versus $204 million in the fourth quarter of
        1994.  Higher prices for caustic soda, propylene glycol and ethylene
        glycol, and lower unit manufacturing costs, were a major part of the
        improved results.

            Plastics reported operating income of $476 million, a gain of 14
        percent compared to the same period in 1994.  Lower unit
        manufacturing costs, and lower costs of purchased styrene
        contributed to this segment's gains.

            Hydrocarbons and Energy had an operating loss of $24 million.
        The decline in operating income was due primarily to the impact of
        the December, 1994 expiration of two Texas power sales agreements
        with Destec Energy Inc.

            Consumer Specialties had an operating loss of $8 million, a $29
        million improvement over the same period last year.  Improved
        manufacturing costs and continued productivity enhancements at
        DowBrands contributed significantly to this segment's results.
        Agricultural chemicals saw a volume increase of 10% overall, with
        especially strong growth in Latin America and the Pacific.

            Earnings in the fourth quarter of 1994 were impacted by a $0.25
        per share after tax loss, recorded by Dow as a result of a special
        charge taken by Dow Corning to cover
the cost of breast implant
        litigation. Earnings were also impacted by a $0.46 per share charge
        related to the contemplated sale of the DowBrands Personal Care
        business, and a gain of $0.20 per share from the sale of Dow's
        investment in the Magma Power Company.

            "As forecasted, we witnessed the effect of price softening due
        to inventory corrections for some basic chemicals and plastics in
        the second half of the year," said Stavropoulos.  "However, prices
        began to stabilize by year's end.  This, coupled with the
        implementation of our value growth initiatives and our continued
        productivity improvements, should result in another good year in

                   The Dow Chemical Company and Subsidiaries
                                     Three Months Ended  Twelve Months Ended
                                      Dec. 31   Dec. 31   Dec. 31   Dec. 31
        In millions, except
          for share amts.                1995      1994      1995      1994
        Net Sales                       $4,594    $4,612   $20,200   $16,742
        Operating Costs and Expenses
        Cost of sales                    3,227     3,361    13,337    12,131
        Insurance and finance
          co. operations, pretax income    (26)        6       (61)     (40)
        Research and development expenses  199       195       808       783
        Promotion and advertising expenses 103       101       416       411
        Selling and administrative
          expenses                         419       418     1,771     1,594
        Amortization of intangibles          9        13        38        43
        Total operating costs
          and expenses                   3,931     4,094    16,309    14,922
        Operating Income                   663       518     3,891     1,820
        Other Income (Expense)
        Equity in earnings of
         20%-50% owned companies
         (Note B)                           16       (54)       70        29
        Interest expense                  (108)      (81)     (434)    (362)
        Interest income and foreign
          exchange                          96        29       289        98
        Net loss on investments (Note B)     0       (42)     (330)     (42)
        Sundry                              27        10        43        83
        Total other income (expense)        31      (138)     (362)    (194)
        Income before provision for taxes
          on income and minority interests 694       380     3,529     1,626
        Provision for taxes on income      250       165     1,442       654
        Minority interests' share in income 27        32       196       200
        Preferred stock dividends            2         2         7         7
        Income from continuing operations $415      $181    $1,884      $765
        Discontinued Operations (Note C):
        Income from pharmaceutical business,
          net of taxes on income             0        41        18       166
        Gain on sale of pharmaceutical
          business, net of taxes on income   0         0       169         0
        Net income available
          for common stockholders         $415      $222    $2,071      $931
        Average common shares
          outstanding                    254.9     277.3     268.2     276.1
        Earnings per common share from
          continuing operations          $1.63     $0.65     $7.03     $2.77
        Earnings per common share        $1.63     $0.80     $7.72     $3.37
        Common stk dividends declared
          per shr                        $0.75     $0.65     $2.90     $2.60
        Depreciation                      $390      $351    $1,369    $1,224
        Capital expenditures (Note D)     $351      $375    $1,428    $1,183
        Notes to the Financial Statements

            Note A: The unaudited interim financial statements reflect all
        adjustments (consisting of normal recurring accruals) which, in the
        opinion of management, are considered necessary for a fair
        presentation of the results for the periods covered.  Certain
        reclassifications of prior year amounts have been made to conform to
        current year presentation.  These statements should be read in
        conjunction with the financial statements and notes thereto included
        in the Company's Form 10-K for the year ended December 31, 1994.

            Note B:  On May 15, 1995, Dow Corning
announced that
        it had filed for protection under Chapter 11 of the United States
        Bankruptcy Code with the United States Bankruptcy Court in Bay City,
        Michigan.  The Company is a 50 percent shareholder in Dow Corning

            The Company's investment in Dow Corning was $374 million at
        March 31, 1995.

            Dow Corning reported an after tax net loss of $167 million for
        the second quarter of 1995, of which the Company's share amounted to
        $83 million.  Dow Corning's second quarter loss was a result of a
        $221 million after tax charge taken to reflect a change in
        accounting method for its contribution to a breast implant global
        settlement.  The change in the method of accounting from a present
        value or discounted basis, to an undiscounted basis, resulted from
        uncertainties arising from Dow Corning's filing for protection under
        Chapter 11.

            As a result of Dow Corning's Chapter 11 filing and its 1995
        second quarter loss, the Company has recognized a pretax charge
        against income of $330 million, has fully reserved its net
        investment in Dow Corning and will not recognize its 50 percent
        share of future equity earnings while Dow Corning remains in Chapter
        11.  The charge impacted the Company's second quarter of 1995
        earnings by $1.24 per share.

            Note C: On June 28, 1995, the Company completed the sale of its
        197 million shares of Marion Merrell Dow to Hoechst for $5.1 billion
        or $25.75 per share.  In addition, subsidiaries of the Company have
        completed the sale of the Company's Latin American pharmaceutical
        business based in Argentina, Brazil and Mexico to Roussel Uclaf S.A.
        for $133 million. These two transactions, net of taxes on income of
        $382 million, increased the Company's second quarter of 1995
        earnings by $169 million or 62 cents per share.

            The Company's consolidated statements of income and cash flows
        have been restated to reflect the pharmaceutical business as
        discontinued operations.  Net sales attributable to the
        pharmaceutical business for the three months ended March 31, 1994,
        June 30, 1994, September 30, 1994, December 31, 1994 and March 31,
        1995 were $753, $808, $830, $882 and $757 million, respectively
        Taxes on income from the pharmaceutical business for the same
        periods were $25, $33, $30, $37 and $36 million respectively.

            Note D: Capital expenditures for 1995 have increased $269
        million compared to 1994 as a result of the Company investing $318
        million, in the second quarter, for assets formerly leased.

        CONTACT:  Darlene MacKinnon of Dow Chemical, 517-636-2876/

Congoleum Corporation
announces charge for Color Tile receivable

            MERCERVILLE, N.J.--Jan. 25, 1996-- Congoleum
        Corp. (NYSE:CGM) announced today that it will take a $2.5 million
        pre-tax charge to 1995 earnings related to its account receivable

Color Tile Inc.


            Color Tile
, a Fort Worth based floor covering retailer, filed
        for bankruptcy under Chapter XI yesterday.  With this charge,
        Congoleum's receivable from Color Tile will be fully reserved.
        Congoleum's sales to Color Tile in the last six months of 1995 had
        declined to approximately half the 1994 level.

            Roger S. Marcus, chairman of the board, commented, "Color Tile
        has been a customer for over 30 years.  While this charge is
        disappointing, we value our long term relationship and are pleased
        to see them taking steps to put their financial difficulties behind
        them.  We are hopeful these changes set the stage for returning our
        level of business with Color Tile to that of previous years."

            Congoleum Corp. is North America's second largest manufacturer
        of resilient vinyl flooring, serving both commercial and residential
        markets with products in a wide variety of designs and colors.  The
        company's products are used primarily by the remodeling,
        replacement, commercial, manufactured home and new residential
        markets.  The Congoleum brand name has been associated with the
        flooring industry since 1924.

            Congoleum Corp. is a 44% owned subsidiary of American Biltrite
        Inc. (AMEX:ABL).

        CONTACT: Congoleum Corporation,
                 Howard N. Feist, 609/584-3586;
                 Dewe Rogerson Inc.,
                 Debra Wasser/ Daniel Gray, 212/688-6840

Levitz Furniture Inc. announces third quarter results

            BOCA RATON, Fla.--(BUSINESS WIRE)--Jan. 25, 1996--Levitz
        Furniture Inc. (NYSE:LFI), the largest specialty retailer of
        furniture in the United States, Thursday reported that sales for the
        third fiscal quarter ended December amounted to $270.1 million as
        compared to $294.7 million last year, a decrease of 8.3%.  

        For comparable stores, the decrease was 9.7%.  
            Net loss available to common shareholders amounted to $7,254,000
        or $.25 per common share for the quarter as compared to net income
        of $5,024,000 or $.17 per common share last year.  

            Net loss for the quarter includes an after tax charge for an
        organizational restructuring of $3,200,000 or $.11 per share.  

            This restructuring charge is due to a major realignment of the
        company's field organization management structure eliminating the
        final two geographic divisions in the company.  The result
        centralized all buying, inventory management, and advertising at the
        company's home office in Boca Raton.  According to Michael Bozic,
        chairman and chief executive officer, "This new structure will
        result in clear accountability in our buying and selling
        organizations and will provide for only one layer of management
        between our stores and a company president."  Sixty-five positions
        including five senior executives were eliminated.  

            For the nine months ended Dec. 31, 1995, sales amounted to
        $763.2 million as compared to $802.1 million last year, a decrease
        of 4.9%.  For comparable stores, the decrease was 9.6%.  

            Net loss for common stockholders amounted to $15,858,000 or $.54
        per share as compared to net income of $7,345,000 or $.25 per common
        share last year.  

            Net loss for the nine months includes an after tax charge of
        $5,760,000 for two organizational restructurings or $.19 per share
        which consists of a previously disclosed after tax charge of
        $2,560,000 for the quarter ended Sept. 30, 1995 and the above
        described after tax charge of $3,200,000 for the quarter ended Dec.
        31, 1995.

                       LEVITZ FURNITURE INC. AND SUBSIDIARIES           
                      (Dollars in thousands except share data)
                           Three Months Ended      Nine Months Ended
                                Dec. 31,                Dec. 31,  
                           1995        1994        1995        1994
        Net sales             $270,117    $294,682    $763,242  $802,102
        Costs and expenses:
          Cost of sales        149,987     156,896     412,168   426,312
          SG&A expenses        106,974     110,513     306,832   305,055
          Restructuring exp.     5,000           -       9,000         -
          Depreciation and
        amortization         7,339       7,294      22,084    21,160
                           269,300     274,703     750,084   752,527
        Operating income           817      19,979      13,158    49,575
        Interest expense, net   12,150      11,996      37,935    35,275
        Income (loss) before
          income taxes         (11,333)      7,983     (24,777)   14,300
        Income tax expense
          (benefit)             (4,079)      2,959      (8,919)    5,299
        Net income (loss)
          before extraordinary
          items                 (7,254)      5,024     (15,858)    9,001
        Extraordinary items,
          net of tax benefit
          of $983                    -           -           -    (1,566)
        Net income (loss)      $(7,254)     $5,024    $(15,858)   $7,435
        Earnings (loss) per
          common share:
          Income (loss) before
          extraordinary items   $(0.25)      $0.17      $(0.54)    $0.30
        Extraordinary items         -           -           -      (0.05)
          Net income (loss)
          per common share      $(0.25)      $0.17      $(0.54)    $0.25
        Weighted average
          number of
          common shares
          outstanding       29,620,628  29,620,628  29,620,628 29,620,628
                    LEVITZ FURNITURE INC. AND SUBSIDIARIES         
                            (Dollars in thousands)
                                              Dec. 31,      March 31,
                                              1995          1995    
        ASSETS                                    (Unaudited)
          Cash and cash equivalents                $ 13,685     $  6,301
          Receivables                                34,256       33,707
          Inventories                               136,359      155,008
          Deposits and prepaid expenses               5,154        7,202
          Income taxes receivable                     2,624        3,148
        Total current assets                        192,078      205,366
        PROPERTY AND EQUIPMENT, net                 227,772      249,152
        PROPERTY UNDER CAPITAL LEASES, net          137,726      145,759
          Intangible leasehold interests             17,466       18,748
          Deferred financing fees                     7,439        8,955
          Goodwill                                   18,821       19,208
          Other                                       3,923        3,986
        Total other assets                           47,649       50,897
                                               $605,225     $651,174
          Cash overdrafts                          $ 27,641     $ 17,303
          Current portion of long-term debt           9,260       13,498
          Current portion of obligations under
        capital leases                            4,972        5,184
          Accounts payable, trade                    52,863       57,613
          Accrued expenses and other liabilities     75,812       70,885
          Deferred income taxes                       2,812        5,048
        Total current liabilities                   173,360      169,531
        LONG-TERM DEBT, net of current portion      323,559      348,908
          current portion                            84,075       87,767
        OTHER NONCURRENT LIABILITIES                 26,302       24,916
        DEFERRED INCOME TAXES                        57,961       64,329
          Common stock, at par value                    303          296
          Capital in excess of par                  212,213      210,039
          Deferred compensation                      (2,078)           -
          Retained earnings (deficit)              (270,470)    (254,612)
        Total stockholders' deficit                 (60,032)     (44,277)
                                               $605,225     $651,174

        CONTACT:  Levitz Furniture Inc., Boca Raton,
                  Patrick J. Nolan,
                  Sr. Vice President Finance & Treasurer


            EL SEGUNDO, Calif., Jan. 25, 1996 -- Unocal
        (NYSE: UCL) today reported fourth-quarter 1995 net earnings of $49
        million, or 16 cents per common share, compared with a loss of $68
        million, or 32 cents per common share, in the same period a year
        ago.  Fourth quarter revenues were $2.22 billion, compared with
        $1.98 billion a year ago.

            Earnings from operations for the fourth quarter 1995, excluding
        special items (detailed in the attached tables), were $92 million,
        or 34 cents per common share.  This compares with operating earnings
        of $86 million, or 32 cents per common share, for the fourth quarter

            "Our fourth quarter earnings benefited from a 5 percent increase
        in domestic natural gas production, record natural gas production
        levels in Thailand in late November and early December, and higher
        refinery production of light oil products," said Roger C. Beach,
        Unocal's chairman and chief executive officer.  "The effect of the
        increased gas production was magnified by stronger worldwide natural
        gas prices."

            The gain in natural gas prices in the quarter had the greatest
        impact in the U.S. Gulf Coast, a strategic focus area for Unocal.
        Approximately 40 percent of Unocal's worldwide natural gas
        production comes from this area.

            Beach added that the gains in natural gas production were more
        than offset by continuing declines in U.S. and foreign crude oil
        production. "In the U.S., the decline in crude oil production
        reflects the sale of non-strategic domestic properties and natural
        gas production declines in California and the Central U.S.," he

            For 1996, the company expects domestic natural gas production to
        be lower, reflecting the expected sale of its California upstream
        operations.  Increases in Unocal's foreign gas production,
        principally in Thailand, should more than offset the decline in
        domestic natural gas production.

            Unocal's 76 Products Company continued to show improvements in
        earnings and cash flow in the quarter.  The earnings performance was
        helped in part by higher production of gasoline, jet fuel and diesel
        at the company's refineries.

            The company's agricultural products business unit continued its
        strong performance in the fourth quarter with higher earnings from
        nitrogen-based fertilizers sales in the U.S. West Coast and Pacific
        Rim. Higher commodity prices significantly enhanced margins for the
        company's agricultural products.

            The company's reported earnings for the fourth quarter included
        a non-cash, after-tax charge of $53 million (detailed in special
        adjustments table) for adoption of Statement of Financial Accounting
        Standards No. 121.  This new accounting standard, "Accounting for
        the Impairment of Long-Lived Assets and for Long-Lived Assets to be
        Disposed of," requires that long-lived assets with book values that
        cannot be recovered by estimated future undiscounted cash flows be
        written down to fair value.  The impairment provision in the fourth
        quarter was related principally to 1995 reserve write-downs for oil
        and gas properties in the U.S., Canada and The Netherlands.

            The reported fourth quarter earnings also included one-time cash
        benefits from a bankruptcy settlement with Columbia Gas Transmission
        Corp. and the sale of oil and gas properties in Wyoming.

            For the full year 1995, net earnings were $260 million, or 91
        cents per common share.  This compares with a loss of $153 million,
        or 78 cents per common share, for 1994.  Full-year revenues were
        $8.43 billion, up from $7.97 billion last year.

            Earnings from operations for 1995, excluding special items
        (detailed in the attached tables), were $297 million, or $1.06 per
        common share. This compares with adjusted earnings of $300 million,
        or $1.09 per common share, in 1994.

                               UNOCAL CORPORATION
                                For the Three Months   For the Twelve Months
        Dollars in millions       Ended December 31      Ended December 31
         except per share amounts  1995        1994      1995          1994
        Total revenues(a)         $2,224      $1,984    $8,425       $7,965
        Costs and other
         deductions(a)             2,123       2,057     7,962        7,671
        Earnings before
         income taxes                101         (73)      463          294
        Income taxes                  52          (5)      203          170
        Earnings (loss) before
         cumulative effect of
         accounting change            49         (68)      260          124
        Cumulative effect of
         accounting change             -           -         -         (277)
        Net earnings (loss)          $49        $(68)     $260        $(153)
        Dividends on preferred stock   9           9        36           36
        Net earnings (loss)
         applicable to common shares $40        $(77)     $224        $(189)
        Earnings (loss)
         per common share:(b)
          Before cumulative effect
           of accounting change    $0.16      $(0.32)    $0.91        $0.36
          Cumulative effect of
           accounting change           -           -         -        (1.14)
        Net earnings (loss)        $0.16      $(0.32)    $0.91       $(0.78)
        (a) Includes consumer
             excise taxes of        $233        $207      $898         $893
        (b) Based on weighted average
             common shares outstanding
             (in millions)           247         244       246          243
                                                Dec. 31        Dec. 31
        Millions of dollars                      1995(a)         1994
        Cash and cash equivalents                 $94            $148
        Other current assets                    1,482           1,380
        Investments and long-term receivables   1,101             895
        Properties - net                        7,109           6,823
        Other assets                              105              91
         Total assets                          $9,891          $9,337
        Current Liabilities                    $1,316          $1,257
        Long-term debt and
         capital lease obligations              3,698           3,461
        Deferred Income taxes                     722             643
        Other deferred credits and liabilities  1,225           1,161
         Total liabilities                      6,961           6,522
        Stockholders' Equity                    2,930           2,815
         Total liabilities and
          stockholders' equity                 $9,891          $9,337
            (a) Certain amounts have been reclassified to conform to
        requirements of SFAS No. 119, "Disclosure about Derivative Financial
        Instruments and Fair Value of Financial Instruments".
                                 UNOCAL CORPORATION
                                For the Three Months   For the Twelve Months
                                  Ended December 31      Ended December 31
        Millions of dollars         1995      1994       1995        1994
          Cash flow from operations   $373     $222      $1,235      $1,256
          Working capital and
           other changes related
           to operations               228      222          42          43
            Net cash provided by
             operating activities      601      444       1,277       1,299
          Capital expenditures
           (includes dry hole costs)  (492)    (433)     (1,459)     (1,272)
          Proceeds from asset sales     74       20         204         156
           Net cash used in
            investing activities      (418)    (413)     (1,255)     (1,116)
          Net increase (decrease) in
           long-term debt and capital
           lease obligations          (194)     (33)        111         (56)
          Dividends paid               (58)     (57)       (232)       (229)
          Other                         (5)      14          45          45
           Net cash used in
            financing activities      (257)     (76)        (76)       (240)
        Decrease in cash and
         cash equivalents              (74)     (45)        (54)        (57)
        Cash and cash equivalents
         at beginning of period        168      193         148         205
        Cash and cash equivalents
         at end of period              $94     $148         $94        $148
                              SELECTED FINANCIAL DATA
                              For the Three Months    For the Twelve Months
                                Ended December 31       Ended December 31
                                1995         1994       1995         1994
        Exploration expense
         Oil & Gas
          United States          $13           $9        $39          $24
          Foreign                 39           27         96           89
         Geothermal                2            1          4            3
          Total                  $54          $37       $139         $116
        Dry hole costs
         Oil & Gas
          United States           $8           $8        $36          $45
          Foreign                  2           10         21           34
         Geothermal                0            2          4            5
          Total                  $10          $20        $61          $84
        Depreciation, Depletion
         & Amortization         $318         $218     $1,022         $947
                                 UNOCAL CORPORATION
                                OPERATING HIGHLIGHTS
                                For the Three Months   For the Twelve Months
                                  Ended December 31      Ended December 31
                                  1995         1994      1995         1994
        Net daily production(a)
         Crude oil and condensate
          (thousand barrels daily):
           United States          121.0       131.6      125.1        137.3
            Far East               86.4        92.5       85.1         87.1
            Other                  28.2        32.6       30.2         35.4
             Total Foreign        114.6       125.1      115.3        122.5
           Worldwide              235.6       256.7      240.4        259.8
        Natural gas (million
         cubic feet daily):
          United States           1,078       1,029      1,103        1,095
           Far East                 643         675        609          623
           Other                     67          29         53           48
            Total Foreign           710         704        662          671
          Worldwide               1,788       1,733      1,765        1,766
         Natural gas liquids
          (thousand barrels daily) 20.4        23.2       21.0         21.9
         Geothermal (million
          kilowatt-hours daily)    16.7        19.2       16.1         20.5
        Input to crude oil
         processing units (thousand
         barrels daily)(b)          233         233        213          231
        Sales of Petroleum
         products (thousand barrels
         daily)(b)                  287         247        259          238
        Average sales prices
         Crude oil and condensate
          (per barrel):
           United States         $14.59      $13.80     $15.03       $13.06
            Far East             $16.02      $14.78     $16.09       $14.55
            Other                $15.23      $15.35     $15.69       $14.36
             Total Foreign       $15.75      $14.97     $15.95       $14.48
          Worldwide              $15.07      $14.32     $15.40       $13.63
        Natural gas (per mcf):
         United States            $1.75       $1.57      $1.56        $1.78
          Far East                $2.13       $1.94      $2.04        $2.01
          Other                   $1.82       $1.72      $1.39        $1.76
           Total Foreign          $2.10       $1.93      $1.98        $1.99
         Worldwide                $1.89       $1.71      $1.72        $1.86
        (a) Includes production sharing agreements on a gross basis.
        (b) Restated 1994 to exclude 50% of the volumes of The UNO-VEN Co.
                                 UNOCAL CORPORATION
                            EARNINGS BY BUSINESS SEGMENT
                                4th Quarter of 1995      4th Quarter of
        Millions of dollars   Before-tax   After-tax  Before-tax   After-tax
         Exploration & Production:
          United States          $153         $95        $84           $52
          Foreign                  29          18        112            51
         Refining & Marketing:
          76 Products Company      23          16         (8)           (5)
        Geothermal &
         Power Operations           8           5         14             8
        Diversified Businesses:
         Agricultural Products     25          19         16            12
         Carbon & Minerals         17          12         14             9
         Pipelines                 19          16         15            12
         Other                     (2)         (2)         9             6
        Corporate & Unallocated
         Administrative & General (36)        (27)       (53)          (33)
         Interest expense - net   (58)        (38)       (60)          (44)
         Environmental &
          Litigation expense      (56)        (35)      (218)         (137)
         Other                    (21)        (30)         2             1
        Earnings before
         cumulative effect of
         accounting change        101          49        (73)          (68)
        Cumulative effect of
         accounting change          -           -          -             -
          Total                  $101         $49       $(73)         $(68)
            The Exploration & Production segment is engaged in the
        exploration for, the production and marketing of crude oil,
        condensate, natural gas liquids and natural gas.
        Refining & Marketing:
            76 Products Company -- principally is responsible for the
        company's West Coast petroleum refining operations, marketing and
        transportation of refined petroleum products.
            The Geothermal & Power segment is involved in the exploration
        for, and the production and sale of geothermal resources.
        Diversified Businesses:
            Agricultural Products -- manufactures and markets nitrogen-based
        fertilizers for wholesale markets.
            Carbon and Minerals - produces and markets petroleum cokes and
        specialty minerals.
            Pipelines - principally includes equity earnings from affiliated
        pipeline companies.
            Other - includes the development and sale of real estate assets
        and equity earnings from a refining and marketing joint venture.
            ..Effective in the fourth quarter 1995, certain expenses
        previously reported under Corporate and Unallocated have been
        allocated to the operating segments.  Prior Year segment earnings
        were restated to conform to the 1995 allocation.
                                 UNOCAL CORPORATION
                       1995 EARNINGS NEWS RELEASE SUPPLEMENT
                                SPECIAL ADJUSTMENTS
        Dollars in millions
         except per share       4th Quarter of 1995     4th Quarter of 1994
         amounts               Before-tax  After-tax   Before-tax  After-tax
        Reported earnings (loss)  $101         $49        $(73)      $(68)
        Less: Special items
         Exploration & Production
          United States
           Asset Sales              44          27          (7)        (5)
           FAS 121 Impairment      (44)        (27)          -          -
           Columbia Gas Settlement  55          34           -          -
           FAS 121 Impairment      (43)        (26)          -          -
         76 Products
          Asset Sales                1           1           -          -
          Litigation                 -           -          (2)        (2)
          Write-down of assets       -           -         (23)       (14)
         Diversified Businesses
           Asset Sales               4           2           -          -
           Write-down of assets     (3)         (2)          -          -
         Corporate & Unallocated
          Asset Sales                5           3           -          -
          Environmental provision  (10)         (6)       (152)       (94)
          Litigation provision     (33)        (21)        (38)       (24)
          Write-down of assets       -           -         (14)        (9)
          Deferred tax adjustment    -           -           -          -
          Mesa settlement            -           -           -          -
          Other                    (14)        (28)        (10)        (6)
         Total special items       (38)        (43)       (246)      (154)
        Adjusted earnings         $139         $92        $173        $86
        Less: Dividends on
         preferred stock                         9                      9
        Adjusted net earnings
         applicable to common shares            83                     77
        Adjusted net earnings
         per common share                    $0.34                  $0.32
                                 UNOCAL CORPORATION
                                4th Quarter of 1995     4th Quarter of 1994
        Millions of dollars    Before-tax  After-tax   Before-tax  After-tax
         Exploration & Production:
          United States            $98        $61          $91        $57
          Foreign                   72         44          112         51
         Refining & Marketing:
          76 Products Company       22         15           17         11
        Geothermal &
         Power Operations            8          5           14          8
        Diversified Businesses:
         Agricultural Products      25         19           16         12
         Carbon & Minerals          17         12           14          9
         Pipelines                  19         16           15         12
         Other                      (3)        (2)           9          6
        Corporate & Unallocated
         Administrative & General  (36)       (27)         (28)       (18)
         Interest expense - net    (58)       (38)         (60)       (44)
         Environmental &
          Litigation expense       (13)        (8)         (28)       (19)
         Other                     (12)        (5)           1          1
          Total                   $139        $92         $173        $86
                                 UNOCAL CORPORATION
                            EARNINGS BY BUSINESS SEGMENT
                               For Twelve Months        For Twelve Months
        Millions of         Ended December 31, 1995  Ended December 31, 1994
         dollars             Before-tax  After-tax    Before-tax  After-tax
         Exploration & Production:
          United States         $386       $240          $289        $180
          Foreign                330        181           407         198
         Refining & Marketing:
          76 Products Company    (12)        11            23          14
        Geothermal &
         Power Operations         47         26            57          32
        Diversified Businesses:
         Agricultural Products   113         74            42          29
         Carbon & Minerals        72         52            62          42
         Pipelines                82         66            70          56
         Other                    12          7            22          14
        Corporate & Unallocated
         Administrative &
          General               (127)       (84)         (137)        (85)
         Interest expense - net (257)      (178)         (255)       (174)
         Environmental &
          Litigation expense    (148)       (92)         (293)       (186)
         Other                   (35)       (43)            6           4
        Earnings before
         cumulative effect of
         accounting change        463       260           293         124
        Cumulative effect of
         accounting change          -         -          (447)       (277)
          Total                  $463      $260         $(154)      $(153)
                                    UNOCAL CORP.
                       1995 EARNINGS NEWS RELEASE SUPPLEMENT
                                SPECIAL ADJUSTMENTS
        Dollars in millions
         except per share  For the Twelve Months    For the Twelve Months
         amounts          Ended December 31, 1995  Ended December 31, 1994
                          Before-tax    After-tax  Before-tax    After-tax
        Reported earnings
         (loss)              $463          $260       $(154)       $(153)
        Less: Special items
         Exploration & Production
          United States
           Asset Sales         52            32         (20)         (13)
         Provision for
          abandonment and
          remediation of the
          Guadalupe oil field   -             -         (26)         (16)
          Write-down of assets(13)           (8)        (24)         (15)
          FAS 121 Impairment  (44)          (27)
          Florida and Alaska
           OCS settlement      29             18          -            -
          Columbia Gas
           settlement          55             34          -            -
          Asset Sales           6              3         23           16
          FAS 121 Impairment  (43)           (26)
        76 Products
         Asset Sales            1              1          1            1
         Litigation             -              -         (2)          (2)
         Environmental          -              -         (4)          (2)
         Write-down of assets   -              -        (32)         (20)
         Asset Sales            9              7          -            -
        Diversified Businesses
         Agricultural Products
          Asset Sales           6              4          3            2
          Asset Sales           6              3          -            -
          Write-down of assets (3)            (2)         -            -
         Corporate & Unallocated
          Asset Sales          34             21          3            2
           provision          (41)           (26)      (156)         (97)
          Litigation provision(60)           (37)       (65)         (41)
          Write-down of assets (3)            (2)       (14)          (9)
          Mesa settlement       -              -         38           24
          Other               (14)           (32)       (10)          (6)
         Cumulative effect of
          accounting change     -              -       (447)        (277)
        Total special items   (23)           (37)      (732)        (453)
        Adjusted earnings    $486           $297       $578         $300
        Less: Dividends on
         preferred stock                      36                      36
        Adjusted net earnings
         applicable to common shares         261                     264
        Adjusted net earnings
         per common share                  $1.06                   $1.09
                                 UNOCAL CORPORATION
                                For Twelve Months      For Twelve Months
        Millions of         Ended December 31, 1995  Ended December 31, 1994
         dollars            Before-tax    After-tax  Before-tax    After-tax
         Exploration & Production:
          United States        $307          $191       $359          $224
          Foreign               367           204        384           182
         Refining & Marketing:
          76 Products Company   (13)           10         60            37
        Geothermal & Power
         Operations              38            19         57            32
        Diversified Businesses:
         Agricultural Products  107            70         39            27
         Carbon & Minerals       72            52         62            42
         Pipelines               82            66         70            56
         Other                    9             6         22            14
        Corporate & Unallocated
         Administrative &
          General              (127)          (84)      (112)          (70)
           expense - net       (257)         (178)      (255)         (174)
          Environmental &
           Litigation expense   (47)          (29)       (72)          (48)
          Other                 (52)          (30)       (36)          (22)
           Total               $486          $297       $578          $300
        CONTACT:  Barry Lane of Unocal, 310-726-7731

        1995; 1995 Earnings Per Share Increase to $3.80, Excluding Fourth-
        Quarter Charge

            WILTON, Conn.--Jan. 25, 1996--Dun & Bradstreet
        today reported a 10.6 percent increase in 1995 revenue to $5.4
        billion, driven by strong revenue performances at IMS International,
        Nielsen Media Research, Gartner Group, A.C. Nielsen and D&B
        Information Services.  Underlying revenue grew by 7.5 percent.  

            Full-year 1995 earnings per share increased by 2.7 percent to
        $3.80, up from $3.70 in 1994, excluding the previously announced
        fourth-quarter 1995 one-time pretax charge of $448 million, or $1.91
        per share, in connection with the company's plan to split into three
        public corporations.  Including the charge, D&B reported full-year
        earnings per share of $1.89.  

            "This is an exciting time for Dun & Bradstreet," said Robert E.
        Weissman, chairman and chief executive officer.  "We exceeded our
        1995 revenue growth targets and took steps to implement a sweeping
        strategy to increase shareholder value by transforming D&B into
        three publicly traded, global corporations."  

            In the fourth-quarter, D&B's reported revenue increased by 10.4
        percent to $1.55 billion from $1.41 billion a year ago, driven by
        excellent revenue growth at IMS International, Moody's Investors
        Service and Gartner Group.  Underlying revenue also was up 10.4
        percent in the fourth quarter.  

            Fourth-quarter consolidated earnings per share were up 4.9
        percent to $1.29 from $1.23, excluding the charge.  Including the
        charge, D&B reported a loss of 62 cents a share for the quarter.
        (See attached tables.)

                          THE DUN & BRADSTREET CORPORATION  
                          CONSOLIDATED STATEMENT OF INCOME
                       (In millions except per share amounts)  
                                  Three Months Ended
                                     December 31                Percent
                                ---------------------           Change
                                 1995           1994            -------
                               -------         ------
        Operating Revenue         $1,554.7        $1,408.4            10.4
        Operating Costs,
         Selling and
         Administrative Expenses   1,686.4(A)      1,107.2            52.3
                              ----------       ---------
        Operating (Loss) Income     (131.7)          301.2              --
        Interest Expense - Net         1.1             3.7           (70.3)
        Other Expense - Net           13.3 (B)         4.9 (B)       171.4
                                --------       ---------
        Non-Operating Expense
         - Net                        14.4             8.6            67.4
        (Loss) Income Before
         Income Tax (Benefit)
         Provision                  (146.1)          292.6              --
        Income Tax (Benefit)
         Provision                   (40.5)           83.1              --
                                -------         -------
        Net (Loss) Income          $(105.8)         $209.5              --
                                -------         -------
        (Loss) Earnings Per
         Share of Common Stock      ($0.62)          $1.23              --
                                 ------          ------
        Dividends Paid Per Share of
         Common Stock                $0.66           $0.65             1.5
                                 ------          ------
        Average Number of
         Shares Outstanding          169.4           169.9              --
        Effective Tax Rate            27.7%           28.4%           (2.5)
        (A) Includes a one-time pre-tax charge of $448 million for costs
        principally associated with the Company's plan to reorganize into
        independent companies focused on high-growth information markets;
        financial-information services; and consumer-product market
        research.  The charge reflects a loss in connection with the
        adoption of SFAS No. 121 related to the revaluation of certain
        assets due principally to the reorganization, a provision for
        postemployment benefits and an accrual for contractual obligations
        impacted by the plan.  Excluding the effect of the charge, earnings
        per share was $1.29.  Also includes gains totalling $15 million
        related to divestitures and a $24 million one-time decline in
        employee medical benefits costs.
        (B) Includes a $6 million benefit in 1995 and a $10 million benefit
        in 1994 from tax sharing agreements with an Alaska Native
                          THE DUN & BRADSTREET CORPORATION   
                          CONSOLIDATED STATEMENT OF INCOME
                       (In millions except per share amounts)  
                                 Twelve Months Ended
                                     December 31                  Percent
                                  -----------------               Change
                                 1995           1994              ------
                                ------        -------
        Operating Revenue          $5,415.1      $4,895.7              10.6
        Operating Costs,
         Selling and
         Administrative Expenses    4,893.3 (A)   3,970.2 (B)          23.3
                                --------      -------
        Operating Income              521.8         925.5             (43.6)
        Interest Expense - Net         20.9           7.8             167.9
        Other Expense - Net            57.2 (C)      38.5 (C)          48.6
                                  ------       -------
        Non-Operating Expense - Net    78.1          46.3              68.7
        Income Before Provision
         for Taxes                    443.7         879.2             (49.5)
        Provision for Income Taxes    122.9         249.7             (50.8)
                                 ------        -------
        Net Income                   $320.8        $629.5             (49.0)
                                 ------        -------
        Earnings Per Share of
         Common Stock                 $1.89         $3.70             (48.9)
                                 --------       ------
        Dividends Paid Per Share
         of Common Stock              $2.63         $2.56               2.7
                                 --------      --------
        Average Number of
         Shares Outstanding           169.5         169.9                --
        Effective Tax Rate             27.7%         28.4%             (2.5)

        (A) Includes a one-time pre-tax charge of $448 million in the fourth
        quarter for costs principally associated with the Company's plan to
        reorganize into three independent companies focused on high-growth
        information markets; financial-information services; and consumer-
        product market research.  The charge reflects a loss in connection
        with the adoption of SFAS No.  121 related to the revaluation of
        certain assets due principally to the reorganization, a provision
        for postemployment benefits and an accrual for contractual
        obligations impacted by the plan.  Excluding the effect of the
        charge, earnings per share was $3.80.  Also includes (1) in the
        fourth quarter, gains totalling $15 million related to divestitures
        and a $24 million one-time decline in employee medical benefits
        costs, (2) a $90 million gain in the third quarter on the sale of
        Interactive Data Corp., offset by operating charges related to
        restructuring expense of $13 million and postemployment benefits
        expense of $77 million, and (3) a $28 million gain in the first
        quarter from the sale of warrants received in connection with the
        divestiture of Donnelley Marketing in 1991.  

         (B) Includes $36 million gain from sale of the assets of DunsNet
        and $39 million of charges principally for the revaluation of
        computer software and other intangible assets.  In addition, a
        change in eligibility requirements for the company's postretirement
        medical plan resulted in a curtailment gain of $26 million, which
        was largely offset by a substantial increase in spending for new
        product development.  Also includes $56 million of restructuring
        gains from the sale of Thomson Directories and the Machinery
        Information Division of Dataquest, offset by $56 million of
        restructuring expense.  

        (C) Includes a $6 million benefit in 1995 and a $10 million benefit
        in 1994 from tax sharing agreements with an Alaska Native

                         DETAILED COMMENTS ON D&B'S

            Marketing Information Services reported an 11.6 percent increase
        in fourth-quarter revenue to $675.6 million from $605.3 million a
        year ago.  Excluding the impact of the weaker dollar and
        acquisitions, revenue growth for the segment was 10 percent.  IMS
        International reported fourth-quarter revenue of $252 million, up 24
        percent on a reported basis and up 18 percent on an underlying
        basis. Revenue growth for the quarter was boosted by strong sales of
        new products and client winbacks in the U.S.  A.C. Nielsen's
        reported fourth-quarter revenue increased by 4 percent to $348
        million, and was up 2 percent on an underlying basis, reflecting in
        part the impact in Europe of weak economic conditions on customer
        expenditures and the transition to scanning data.  Nielsen Media
        Research posted strong underlying revenue growth in the fourth
        quarter, spurred by a robust advertising economy, additional
        broadcast and cable network subscribers, and new services, such as
        local Hispanic audience measurement.

                              (Dollars in millions)
                                              Fourth Quarter 1995
                                      Operating       Reported    Underlying(a)
        Segment                            Revenue        % Change      %
        Marketing Information Services      $675.6          11.6%
        Risk Management and Business
          Marketing Information Services    $471.0           7.8%
        Software Services                   $137.7          16.6%
        Directory Information Services      $152.2          -2.6%
        Other Business Services             $118.3          28.8%
        (a) Excluding the effects of acquisitions, divestitures, a weaker
        U.S. dollar and timing factors.

        Risk Management and Business Marketing Information Services
        reported fourth-quarter revenue growth of 7.8 percent to $471.0
        million from $436.9 million a year ago.  Excluding the impact of the
        weaker dollar, acquisitions and divestitures, revenue growth for the
        segment was 12 percent.  Moody's Investors Service continued to
        strengthen in the fourth-quarter, posting an excellent gain in
        reported revenue, driven by increased volume in the corporate-bond
        market.  Dun & Bradstreet Information Services (DBIS) reported
        revenue of $385 million, up 8 percent from last year and up 7
        percent on an underlying basis.  DBIS U.S.  posted a 6 percent
gain in fourth-quarter reported revenue to $200 million, driven mainly
by new products, such as Credit Scoring, Risk Assessment Manager and
        Database Marketing, as well as by an increase in new customers
        targeted by the unit's revamped sales force.  DBIS Europe had solid
        fourth-quarter revenue growth on both a reported and an underlying

        Software Services reported a 16.6 percent increase in
        fourth-quarter revenue to $137.7 million from $118.0 million a year
        ago.  Excluding the impact of the dollar and the acquisition of
        Pilot Software, Software Services had double-digit growth in
underlying revenue.  D&B Software achieved a solid increase in underlying
        fourth-quarter revenue, as strong client/server product sales met

        Directory Information Services reported a 2.6 percent decrease in
        fourth-quarter revenue to $152.2 million from $156.3 million a year
        ago, as a result of previously disclosed contractual changes.  
        Underlying fourth-quarter sales of Directory Information Services
        yellow pages directories were up modestly.  

  Other Business Services reported fourth-quarter revenue of $118.3
        million, up 28.8 percent from $91.8 million a year ago.  Gartner
        Group reported excellent growth in fourth-quarter revenue.  NCH
        Promotional Services reported a slight increase in fourth-quarter

                       DETAILED COMMENTS ON D&B'S
                     FULL-YEAR 1995 SEGMENT RESULTS

        The following comments and table reflect 1995 and 1994
        business-segment operating income excluding the impact of gains
        related to divestitures and charges related to restructuring and
        other one-time actions.

        Marketing Information Services reported a 16.9 percent increase
        in 1995 revenue to $2.39 billion from $2.04 billion in 1994.  
        Excluding the impact of a weaker U.S.  dollar and acquisitions,
        revenue growth for the segment was 9 percent.  IMS International
        reported 1995 revenue of $819 million, up 18 percent on a reported
        basis, and 11 percent on an underlying basis.  A.C. Nielsen
        reported 1995 revenue of $1.29 billion, up 17 percent on a reported
        basis, and up 6 percent on an underlying basis.  Nielsen Media
        Research posted strong underlying revenue growth for the year.  
        Operating income for the segment increased by 22 percent to $337.2
        million from $277.0 million a year ago.  

                            1995 SEGMENT PERFORMANCE
                              (Dollars in millions)
                                           Revenue      1995       Income(a)
                                 1995     % Change    Operating    % Change
        Segment                    Revenue    vs. 1994    Income(a)    vs.
        Marketing Information
         Services                 $2,388.1      16.9%       $337.2
        Risk Management and
         Business Marketing
         Information Services     $1,734.1       8.0%       $405.1
        Software Services           $457.4      12.7%        $30.3
        Directory Information
         Services                   $423.7      -3.7%       $204.0
        Other Business Services     $411.9       2.7%        $63.8
        (a) Excluding the impact of gains related to divestitures and
        charges related to restructuring and other one-time actions.

        Risk Management and Business Marketing Information Services
        reported 1995 revenue growth of 8.0 percent to $1.73 billion from
        $1.61 billion in 1994.  Excluding the impact of the weaker dollar,
        acquisitions and divestitures, segment revenue increased by 6
        percent.  Moody's reported a moderate increase in 1995 revenue,
        principally due to weakness in corporate-bond volumes and public-
        debt refundings in the first half of the year.  Dun & Bradstreet
        Information Services' (DBIS) 1995 revenue was up 10.7 percent to
        $1.39 billion on a reported basis, and rose 6 percent on an
        underlying basis.  Revenue at DBIS U.S.  increased 6 percent to $766
        million.  While DBIS Europe reported 20 percent growth in revenue
        for the year, underlying revenue was up modestly due to weakness in
        several countries.  Operating income for the segment decreased by 9
        percent to $405.1 million from $445.2 million a year ago, due in
        part to major insolvencies that resulted in increased incurred
losses of about $28 million at American Credit Indemnity, planned for
        divestiture in 1996.  Segment profits in 1995 also were dampened by
        weakness in DBIS's international operations, including the impact of
        integrating certain acquisitions and the effects of economic
        conditions in Latin America.

        Software Services reported a 12.7 percent increase in 1995
        revenue to $457.4 million from $405.9 million a year ago.  Excluding
        the impact of the dollar and the acquisition of Pilot Software,
        underlying revenue growth was 5 percent.  D&B Software posted a gain
        in revenue for the year, reflecting strong sales of client/server
        software.  Client/server revenue increased by 150 percent in 1995,
        exceeding $100 million for the year.  The Software Services segment
        posted operating income of $30.3 million, compared with a slight
        loss in 1994.

        Directory Information Services reported a 3.7 percent decrease in
        1995 revenue to $423.7 million from $440.1 million a year ago, as a
        result of previously disclosed contractual changes.  Underlying 1995
        sales of Directory Information Services were up modestly.  Operating
        income for the segment decreased by 5 percent to $204.0 million.  
        Other Business Services reported 1995 revenue of $411.9 million,
        up 2.7 percent from $401.1 million in 1994.  Underlying segment
        revenue increased by 25 percent.  Gartner Group reported excellent
        revenue growth in 1995.  NCH Promotional Services reported a slight
        decrease in 1995 revenue.  Operating income for the segment
        increased by 22 percent to $63.8 million, excluding the impact of
the third-quarter 1994 gain on the sale of the assets of DunsNet.  
        The Dun & Bradstreet Corporation is the world's largest marketer
        of information, software and services for business decision making,
        with worldwide revenue of $5.4 billion in 1995.  

        CONTACT: The Dun & Bradstreet Corporation, Wilton
                 Reid H. Gearhart, 203-834-4275


            CHICAGO, Jan. 25, 1996 --USG
        today reported 1995 net sales of $2,444 million and EBITDA of $417
        million. These results compare favorably with 1994 net sales of
        $2,290 million and EBITDA of $325 million.  For the fourth quarter
        of 1995, USG reported net sales of $602 million and EBITDA of $102
        million, up slightly and 52 percent, respectively, over the
        comparable 1994 period. (1995 fourth-quarter and full-year results
        include a $30 million pretax ($24 million after-tax) charge in
        connection with USG's previously announced exit of the insulation
        manufacturing business. This primarily noncash charge is included in
        "Other expense, net" in the Consolidated Statement of Earnings and
        is not reflected in USG's EBITDA figures discussed above.  1994
        fourth-quarter and full-year cost of products sold and EBITDA
        included a $30 million charge for previously announced asbestos
        litigation settlements.  Excluding the 1994 asbestos charge, 1995
        EBITDA increased 17 percent over 1994.)

            Commenting on USG's 1995 performance, USG Chairman Eugene B.
        Connolly said, "Demand for our products remained strong in 1995.
        Our businesses set shipment records in key product groups including
        ceiling tile,  DUROCK cement board and SHEETROCK brand joint
        compounds. The new residential construction market was down in 1995,
        but this drop was offset by growth in the repair and remodel and
        nonresidential construction markets, which also drive sales of USG

            "In 1995, we continued to focus on increasing shareholder value
        through strategic capital investments in our core businesses and
        debt reduction geared to attaining investment grade status," added
        Connolly. "We invested $147 million in our core businesses and
        reduced debt by $223 million."  Of this debt reduction, $116 million
        was attributable to 1995 cash flow, and the balance relates to the
        1994 cash sweep under the corporation's former credit agreement.
        Total debt at the end of 1995 was $926 million.

            Capital investments completed in 1995 or targeted for completion
        in 1996 include wallboard line speed-ups, which added 600 million
        square feet of capacity and reduced manufacturing costs; paper mill
        stock- cleaning equipment, which will reduce paper costs; various
        other cost reduction projects; expansion of USG Interiors, Inc.'s
        Greenville, Miss., ceiling tile plant; and introduction of new

            Debt reduction, combined with improved operating performance,
        resulted in credit rating upgrades from both Standard & Poor's
        Ratings Group and Moody's Investor Services during 1995.  Annual
        interest expense was further reduced in the third quarter of 1995
        through a debt refinancing that included a new bank credit facility,
        the issuance of $150 million of 8 1/2 percent senior notes due 2005
        and the retirement of the remaining balance of USG's 10 1/4 percent
        senior notes.  In addition, the new bank credit facility provides
        greater financial flexibility for strategic growth.

            Connolly remarked, "We are bullish about our industry's 1996
        prospects.  We believe that the U.S. will experience an elongated
        business cycle driven by favorable interest rates, as well as good
        consumer confidence and home affordability.  This should result in
        modest growth in the housing market and continued growth in repair
        and remodel activity and nonresidential construction."

        North American Gypsum

            USG's North American gypsum business reported 1995 net sales of
        $1,924 million and EBITDA of $386 million, increases of 8 percent
        and 27 percent, respectively, over 1994.

            Net sales by United States Gypsum Company of $1,309 million and
        EBITDA of $327 million represent increases of 8 percent and 32
        percent, respectively, over 1994.  Higher wallboard selling prices,
        partially offset by slightly lower shipments of gypsum wallboard,
        were primarily responsible for the higher sales, while higher waste
        paper furnish prices negatively affected EBITDA by about $28
        million.  EBITDA in 1994 included a special one-time charge of $30
        million for asbestos litigation settlements.  Excluding this charge,
        U.S. Gypsum's 1995 EBITDA increased 18 percent over 1994.

            Shipments of gypsum wallboard by U.S. Gypsum were 7.6 billion
        square feet, slightly below 1994's record of 7.7 billion square
        feet, and 1995 capacity utilization was 92 percent.  U.S. Gypsum's
        average 1995 selling price of $110.44 per thousand square feet was
        $10.36, or 10 percent, higher than 1994's average price of $100.08.
        U.S. Gypsum's wallboard plants ran at 93 percent capacity in the
        fourth quarter of 1995, and its average wallboard selling price of
        $107.70 per thousand square feet was slightly higher than in the
        fourth quarter of 1994.

            L&W Supply Corporation, USG's building products distribution
        business, reported 1995 net sales of $753 million, the highest
        annual sales in L&W's history, vs. $659 million in 1994.  EBITDA was
        $26 million compared to $15 million in 1994.  L&W achieved record
        sales levels for virtually all product lines in 1995, and all
        product lines recorded gross profit improvements over 1994 levels.
        The number of L&W distribution centers at the end of 1995 was 156,
        up 17 from the end of 1994, including the six centers acquired in
        south Florida as part of the Doby Building Supply acquisition, which
        occurred in December 1995.

            CGC Inc.'s gypsum division reported 1995 net sales of $102
        million, down 7 percent vs. 1994, and EBITDA of $11 million vs. $15
        million in 1994.  Canadian wallboard demand was depressed in 1995 as
        a result of the lowest level of housing starts in 35 years.  CGC
        partially offset low demand by increasing its Canadian market share
        and exporting more wallboard to the United States.  Higher waste
        paper furnish prices also adversely affected CGC's profitability.

        Worldwide Ceilings

            USG's worldwide ceilings businesses reported 1995 net sales of
        $609 million, up 3 percent, and EBITDA of $67 million, up 8 percent
        over 1994.  These increases were driven by the improved sales and
        EBITDA performance of USG Interiors, Inc.  Worldwide ceilings' full-
        year 1995 results reflect record ceiling tile shipments attributable
        to the improving U.S. commercial renovation market and growing
        demand from international markets.

            USG Interiors recorded net sales of $385 million and EBITDA of
        $58 million.  Adjusting for the sale of USG Interiors' access floor
        business, which occurred late in 1994, USG Interiors' net sales and
        EBITDA are up 4 percent and 10 percent, respectively, over 1994.
        USG's worldwide ceilings international units reported combined net
        sales of $263 million and EBITDA of $9 million, up 14 percent and
        unchanged, respectively, vs. 1994.

        Accounting and Earnings-Per-Share Adjustments

            As previously reported, USG emerged from bankruptcy on May 6,
        1993. The implementation of the bankruptcy plan resulted in the
        conversion of more than $1.4 billion of subordinated debt and unpaid
        interest into equity and significantly reduced USG's ongoing
        interest expense. Various adjustments were recorded to USG's
        financial results to reflect the restructuring.  One of these
        adjustments resulted in the recording of $851 million of
        reorganization value in excess of identifiable assets, which is
        being amortized over a five-year period.  Another adjustment
        relating to the difference between the face value and the market
        value of the corporation's debt was also recorded.

            Together, the amortization of these noncash adjustments and the
        one-time fourth-quarter charge relating to the exit of the
        insulation manufacturing business reduced USG's fourth-quarter and
        12-months 1995 net earnings by $67 million, or $1.49 per share, and
        $197 million, or $4.38 per share, respectively.

            USG Corporation is a Fortune 500 company with subsidiaries that
        are market leaders in their key product groups of gypsum wallboard,
        joint compound and related gypsum products; ceiling tile and grid;
        and building products distribution.

                            USG CORPORATION
             (dollars in millions except per share figures)
         Periods ended Dec. 31,
                                           Three Months     12 Months
                                           1995    1994   1995      1994
        Condensed Consolidated
            Statement of Earnings:
        Net sales                         $602     $601   $2,444   $2,290
        Cost of products sold (a)          452      480    1,841    1,773
                                         ------   ------  -------- ------
        Gross profit                       150      121      603      517
        Selling and administrative expenses 63       65      244      244
        Amortization of excess
            reorganization value (b)        42       42      169      169
                                         ------   ------  -------  ------
        Operating profit                    45       14      190      104
        Interest expense, net (c)           21       44       93      139
        Other expense, net (d)              31        2       32        3
        Taxes on income                     18        3       97       54
                                         ------    -----  -------    ----
        Net loss (e)                       (25)     (35)     (32)    (92)
                                         ------    -----  -------   -----
        Net loss per common share (e)    (0.55)   (0.79)   (0.71)  (2.14)
        Other Financial Information:
        EBITDA (f)                         102       67      417     325
        EBITDA margin, percent            16.9%    11.1%    17.1%   14.2%
        Depreciation and depletion          15       12       58      53
        Capital expenditures                53       27      147      64
        Cash and cash equivalents (As of Dec. 31)             70     197
        Principal amount
          of total debt (As of Dec. 31)                      926   1,149
        Average common
            shares outstanding        45,191,546        45,120,120
                                                45,083,005     43,243,497
        (a)  Fourth quarter and 12 months 1994 cost of sales include a $30
        million pretax ($17 million after-tax) charge for an asbestos
        (b) In connection with its 1993 debt restructuring, USG Corporation
        recorded $851 million of reorganization value in excess of
        identifiable assets, which is being amortized against earnings over
        a five-year period.
        (c)  Fourth quarter and 12 months 1994 interest expense includes a
        $16 million pretax ($9 million after-tax) write-off of
        reorganization debt discount.
        (d)  Fourth quarter and 12 months 1995 other expense includes a $30
        million pretax ($24 million after-tax) charge in connection with the
        planned sale of the Thermafiber insulation business in the United
        States and the closure of an insulation business in Canada.
        (e) The noncash amortization of excess reorganization value and
        reorganization debt discount (included in interest expense), as well
        as the fourth quarter 1995 charge disclosed above in footnote (d),
        reduced reported net earnings by $67 million, or $1.49 per share, in
        the three months ended Dec. 31, 1995, and by $197 million, or $4.38
        per share, in the 12 months ended Dec. 31, 1995.  The noncash
        amortizations, as well as the above-mentioned charges for the
        asbestos settlement and write-off of reorganization debt discount
        reduced earnings for the respective 1994 periods by $71 million, or
        $1.60 per share, and $207 million, or $4.81 per share.
        (f) EBITDA represents earnings before interest, taxes, depreciation,
        depletion, amortization and items classified as other expense, net.
        The corporation believes EBITDA is helpful in understanding cash
        flow generated from operations that is available for taxes,
        debtservice and capital expenditures.
                                 USG CORPORATION
                             (dollars in millions)
                                         Net Sales            EBITDA
                               ---------------------- ----------------------
        Periods ended Dec. 31, Three Months 12 Months Three Months 12 Months
                                1995  1994  1995  1994 1995 1994   1995 1994
        Core Business Results:
        U.S. Gypsum Company     $322 $321 $1,309 $1,209 $82  $48  $327  $248
        L&W Supply Corporation   190  174    753    659   7    3    26    15
        CGC Inc. (gypsum)         24   30    102    110   4    5    11    15
        Other subsidiaries (a)    23   25     75     90   5    8    22    28
        Eliminations             (77) (78)  (315)  (288)  -    -     -   (2)
                                ----- ----- -----  ---- ---- ----  ---- ----
        North American Gypsum    482  472  1,924  1,780  98   64    386  304
        USG Interiors, Inc.       93   97    385    400  12   11     58   53
        USG International         57   55    235    202   -    2      5    6
        CGC Inc. (interiors)       6    7     28     29   1    -      4    3
        Eliminations             (10) (10)   (39)   (37)  -    -      -    -
                                ----- -----  ----   ---- ---  ----  ---- ---
        Worldwide Ceilings       146  149    609    594   13   13     67  62
        Corporate                  -    -      -      -  (9) (10)   (36)(41)
        Eliminations             (26) (20)   (89)   (84)  -   -      -    -
                                ----- ----  -----  ----- --- ----- ---- ----
        Total USG Corporation    602   601 2,444  2,290 102   67    417  325
        (a)  Includes Yeso Panamericano, S.A. de C.V., a Mexican building
        products business, Gypsum Transportation Limited, a Bermuda shipping
        company, and USG Canadian Mining Ltd., a mining operation in Nova

        CONTACT:  Matthew P. Gonring, vice president, corporate
        communications, USG Corporate Communications Department, 312-606-


            ROCHESTER, N.Y., Jan. 25, 1996 --  Goulds Pumps, Inc.
        (Nasdaq-NNM-GULD) today announced annual earnings per share of $1.35
        exclusive of restructuring, a 40.6 percent increase over 1994
        earnings per share of $.96, also exclusive of restructuring.  The
        Company reported record orders that were 21.8 percent higher than
        last year and record sales that were 22.8 percent greater than 1994.

            Sales of $186.5 million for the quarter were 29.7 percent
        greater than the same quarter last year.  Fourth quarter orders of
        $178.6 million were 13.2 percent better than the fourth quarter of
        1994. Without the effect of Vogel, acquired in December 1994, sales
        would have increased 18.2 percent and orders would have increased
        3.1 percent over a strong 1994 quarter.  Backlog at December 31,
        1995 was $151.2 million, 32.9 percent higher than backlog at
        December 31, 1994.  Without Vogel, the increase would have been 6.9

            Earnings per share for the fourth quarter were $.28 in 1995
        before the net restructuring impact of $.49, primarily for the
        disposal of Environamics Corporation and the wind down of the
        Company's Venezuelan manufacturing operation.  Net earnings of $6.0
        million, exclusive of the impact of restructuring, were 1.9 percent
        greater than last year's fourth quarter earnings of $5.9 million,
        without a 1994 restructuring charge of $3.5 million.  The 1995
        fourth quarter earnings per share also benefited by $.07 from tax
        strategies implemented in the quarter while the 1994 fourth quarter
        earnings included a $4.2 million pre-tax credit ($.12 per share)
        resulting from changes in eligibility requirements for the Company's
        post-retirement medical and life insurance programs.

            For the year, orders of $729.2 million increased 21.8 percent;
        sales of $718.8 increased 22.8 percent and net earnings of $28.6
        million, exclusive of restructuring, increased 40.8 percent over
        last year. Without Vogel, orders would have increased 11.1 percent;
        sales would have increased 12.0 percent and earnings exclusive of
        restructuring would have increased 37.2 percent.

            The Company's 1994 financial results were impacted by a $3.5
        million pre-tax charge ($.10 per share) for legal and other fees
        related to the Company's defense of lawsuits in California alleging
        leaching of lead from submersible pumps.  This litigation was
        settled in July 1995.  The 1994 financial results also include the
        previously noted $4.2 million pre-tax credit ($.12 per share).


            Strong Industrial Products orders of $102.5 million for the
        fourth quarter resulted in record annual orders of $390.9 million
        which were 20.5 percent better than last year.  The fourth quarter
        orders were 14.6 percent greater than the strong 1994 fourth quarter
        orders.  Without Vogel, orders would have increased 11.0 percent for
        the year and 4.0 percent for the quarter.

            The industrial core markets remain strong but the quarter over
        quarter orders comparison does not show the sharp increases reported
        in prior quarters because the significant upturn in orders began in
        the fourth quarter of 1994, which was a record at that time.
        Further, an interruption in orders momentum at the Engineered
        Products business was experienced when lead times were temporarily
        lengthened during the third quarter.  These lead times have since
        been reduced to competitive levels.  For the fourth quarter, overall
        parts orders increased 7.7 percent, led by a large order booked at
        the Vertical Products business unit.

            Sales of $107.9 million for the fourth quarter of 1995 were 28.3
        percent higher than the same quarter a year ago and annual sales of
        $377.4 were 16.7 percent greater than 1994.  Without Vogel, the
        increase for the quarter would have been 16.9 percent and the
        increase for the year would have been 7.5 percent.  A factor in this
        high sales level is a throughput record set at our Engineered
        Products factory as additional manufacturing improvements, which
        were discussed in prior quarters, continue to be implemented.

            The sector's operating earnings jumped 34.2 percent for the
        quarter and 32.1 percent for the year.  These increases would have
        been 13.6 percent for the quarter and 24.4 percent for the year
        without Vogel.

            The Company has recently announced that a letter of intent has
        been signed to sell certain product lines of the Municipal Business
        Unit.  It is expected that this sale will be completed during the
        first quarter of 1996.


            Record orders and sales improved by 11.3 percent and 31.6
        percent, respectively, over the fourth quarter of last year and 23.4
        percent and 30.2 percent, respectively, for the full year.  Without
        Vogel, orders would have increased 2.0 percent for the quarter and
        11.3 percent for the year.  The sector's sales increases would have
        been 20.1 percent for the fourth quarter and 17.4 percent for the
        full year without Vogel. These strong orders and sales levels were
        mainly driven by Europe, which posted a sales increase of 27.5
        percent in local currency for the fourth quarter.

            Quarterly operating earnings for the sector increased 64.3
        percent with Vogel and 33.4 percent without Vogel.  Specifically,
        strong profitability at WTG-America and at Vogel for the quarter
        more than offset weaker operating earnings at Lowara.  For the year,
        operating earnings increased 20.9 percent with Vogel and 13.3
        percent without Vogel.

            Earlier in the week, a change in the leadership of WTG-Europe
        was announced when J. Kevin Kilbane was named as the President-
        Goulds Pumps Europe.  Kevin had previously worked for Goulds Pumps
        having held several senior level management positions.  He returned
        to Goulds Pumps from Ingersoll Dresser Pump Company where he had
        worldwide responsibilities as the President of the Engineered Pump
        Group since 1992.

        IN CLOSING

            Thomas C. McDermott, Chairman, President and Chief Executive
        Officer concluded, "1995 has been a very good year for Goulds as we
        significantly improved our profitability and even more clearly
        focused on our strategic imperatives.  The foundation for
        accomplishing these priorities is our management team which we have
        substantially strengthened during the year.  We are also pleased
        with the success from our regional organizations which have helped
        to drive worldwide growth."

            "We continue to focus on those businesses which are strategic
        and enhance profitability.  Businesses such as Environamics, the
        Municipal Business Unit and Venezuelan manufacturing have been
        targeted for divesture because they do not meet these criteria."

            "We believe that the momentum generated in 1995 will carry
        forward to 1996, which should be a strong year."

                           GOULDS PUMPS, INCORPORATED
                 Condensed Consolidated Statements of Earnings
                      (In thousands except per share data)
                                 Three Months Ended   Twelve Months Ended
                                    December 31,          December 31,
                                  1995       1994       1995       1994
        Net sales               $186,544   $143,845   $718,763   $585,476
        Costs and expenses
        Cost of sales            134,680    103,251    514,050    418,386
        Selling, general and
         administrative expenses  39,464     31,282    144,603    117,572
        Research and development
         expenses                  1,923      2,613      8,227     10,564
        Restructuring charges     18,513      3,463     18,513      3,463
        Provision for (reversal of)
         environmental litigation   (140)        --       (890)     3,454
        (Earnings) losses from
         affiliates                  (22)       155        (23)      (451)
        Interest expense           3,159      1,759     11,373      6,553
        Interest income             (446)      (276)    (1,825)    (3,038)
        Other (income)
         expense - net               298     (3,917)      (361)      (670)
        Earnings (loss) before
         income taxes            (10,885)     5,515     25,096     29,643
        Income taxes              (6,325)     1,767      7,024     11,442
        Net earnings (loss)     $ (4,560)  $  3,748   $ 18,072   $ 18,201
        Net earnings (loss)
         per common share       $   (.21)   $   .18   $    .85    $   .86
        Dividends per common
         share                  $    .20    $   .20   $    .80    $   .80
        Weighted average
         shares outstanding       21,268     21,184     21,240     21,175
                     Condensed Consolidated Balance Sheets
                           Goulds Pumps, Incorporated
                                 (In thousands)
                                            December 31,
                                        1995           1994
        Current Assets:
        Cash and cash equivalents     $  6,383      $  7,374
        Receivables - net              143,819       113,777
        Inventories                    131,693       111,508
        Deferred tax asset              18,972        12,494
        Prepaid expenses and
         other current assets           16,598        10,898
        Total current assets           317,465       256,051
        Property, plant
         & equipment - net             173,304       152,789
        Investment in Vogel                 --        17,800
        Investments in affiliates        1,207         1,178
        Other investments                9,046         6,498
        Deferred tax asset               8,834         8,125
        Goodwill - net                  29,858         1,656
        Other assets                    14,272        13,144
        Total                         $553,986      $457,241
                              Current Liabilities:
        Short-term borrowings         $ 37,904      $ 10,418
        Current portion of
         long-term debt                 21,716        24,886
        Trade payables                  71,406        47,382
        Deferred tax liability           1,514           391
        Restructuring accrual            7,701         3,224
        Other                           70,295        52,902
        Total current liabilities      210,536       139,203
        Long-term debt                  73,454        53,756
        Pension                         26,302        16,992
        Other postretirement
         benefit obligation             50,903        51,681
        Deferred tax liability
         and other                       2,477         4,322
        Shareholders' Equity:
        Common stock outstanding        21,283        21,193
        Additional paid-in capital      59,175        57,622
        Retained earnings              122,741       121,671
        Cumulative translation
         adjustments and other         (12,885)       (9,199)
        Total shareholders' equity     190,314       191,287
        Total                         $553,986      $457,241
                        Major Market Segment Information
                           Goulds Pumps, Incorporated
                                 (In thousands)
            The Company operates in two major market segments, Industrial
        Products and Water Technologies.  The Industrial Products segment
        produces and sells pumps used in various industries including pulp
        and paper, chemical processing, petrochemical, food and beverage,
        oil, mining, municipal, and electric utility and provides parts and
        repair services for various types of pumps and other rotating
        equipment.  The Water Technologies segment produces and sells pumps
        for residential, farm, irrigation and commercial/light industrial
                                 Three Months Ended     Twelve Months Ended
                                    December 31,            December 31,
                                 1995        1994         1995       1994
        Net Sales:
        Industrial Products   $107,874    $ 84,058     $377,399   $323,254
        Water Technologies      78,670      59,787      341,364    262,222
        Total net sales       $186,544    $143,845     $718,763   $585,476
        Operating Earnings:
        Industrial Products     $6,725      $5,012      $28,475    $21,556
        Water Technologies       5,538       3,370       29,601     24,477
        Total operating
         earnings               12,263       8,382       58,076     46,033
        General corporate
         expense                 1,786       1,683        6,193      7,079
        Restructuring charges   18,513       3,463       18,513      3,463
        Provision for
         (reversal of)
         litigation               (140)         --         (890)     3,454
        (Earnings) losses from
         affiliates                (22)        155          (23)      (451)
        Interest expense         3,159       1,759       11,373      6,553
        Interest income           (446)       (276)      (1,825)   ( 3,038)
        Other (income)
         expense - net             298      (3,917)        (361)      (670)
        Earnings (loss) before
         income taxes         $(10,885)   $  5,515     $ 25,096   $ 29,643
        CONTACT:  John P. Murphy Vice President and Chief Financial
        Officer, or Diana R. Kurty, Corporate Controller, of Goulds Pumps,
        Inc., 716-387-6600        


            ATLANTA, Jan. 25, 1996 -- Delta Air Lines (NYSE: DAL)
        today reported financial results for the December 1995 quarter which
        reflect year-over-year improvements because of a continuing
        commitment to cost reductions.  The December quarter is the second
        quarter of Delta's fiscal year.

            Unaudited operating income totaled $169 million.  Operating
        income in the December 1994 quarter was $18 million.  Unaudited net
        income for the December 1995 quarter was $70 million, compared to a
        net loss of $18 million in the December 1994 quarter.  Primary and
        fully diluted earnings per common share after preferred stock
        dividend requirements were $0.93, compared with a primary and fully
        diluted loss per common share of $0.79 in the December 1994 quarter.
        Operating cost per available seat mile was 8.61 cents in the
        December 1995 quarter, down four percent from 8.93 cents in the
        previous year.

            "Permanent cost reductions are the most powerful and sustainable
        way to restore financial health," said Ronald W. Allen, Delta's
        chairman, president and chief executive officer.  "We will not go
        back to business as usual, even during these relatively good
        economic times.  Delta's and the industry's current stages of
        financial recovery are too fragile for complacency.  And, our
        revenue performance underscores the fact that the highly competitive
        environment we are dealing with will make it very difficult to
        improve our financial position through revenue growth.

            "Our Leadership 7.5 cost reduction program is driving our
        improved financial performance, and we are committed to our
        financial goals," Allen said.  "We see increasing pressure on
        revenues from low-cost competitors in the core of our operation as
        well as the impact of rising fuel prices and the uncertainty of the
        economy.  Our goals are to rebuild a record of sustained, superior
        financial performance and to grow from this profitable base."

            Allen said the company's December 1995 quarter costs were
        inflated $22 million, due to a still-unresolved exemption for
        commercial aviation from a 4.3 cents per gallon jet fuel tax, which
        became effective October 1995.  "Exemption from this additional tax
        would remove a high financial hurdle now in the path of our
        industry's recovery," Allen noted.

            "Delta's current progress toward our goals is due to the
        commitment and professionalism of Delta people in every part of the
        company," Allen said.  "That became especially clear recently when
        strong holiday traffic and extreme weather conditions affected our
        operations and tested everyone at Delta.  Mechanics, flight
        attendants, pilots, airport personnel, reservations sales agents
        - everyone - worked together under very difficult circumstances.
        Our operations did not always meet our expectations and those of our
        customers, but we are using our people's experience and feedback to
        return to Delta standards."

             "The value of this teamwork, though, is being tested by recent
        actions by the Air Line Pilots Association.  The negotiating
        position put forth by ALPA last week is a cause for serious concern
        in achieving the company's goals and maintaining a cohesive work
        group," Allen said. "Delta's overall pilot block hour costs must be
        competitive if we are to remain profitable and grow.  Our most
        recent contract offer to ALPA was designed to make Delta cost-
        competitive while addressing the most significant needs of Delta
        pilots.  ALPA's counterproposal moves in the opposite direction by
        adding millions of dollars in costs.  We are committed to the
        negotiating process, and we will work diligently toward reaching a
        competitive and fair agreement quickly."

            For calendar year 1995, Delta reported unaudited operating
        income of $1.04 billion, compared to an operating loss of $217
        million in calendar 1994.  Unaudited net income for calendar 1995
        was $510 million ($8.26 primary and $6.68 fully diluted earnings per
        common share after preferred stock dividends), compared to a net
        loss of $159 million ($5.12 primary and fully diluted loss per
        common share after preferred stock dividends) in calendar 1994.

            Calendar 1994 results included a $414 million pretax
        restructuring charge related to the company's Leadership 7.5 program
        and a $114 million after-tax benefit from the adoption of a new
        accounting standard related to postemployment benefits.  Excluding
        these items, the net loss for calendar 1994 was $12 million ($2.21
        primary and fully diluted loss per common share after preferred
        stock dividends), and operating income totaled $197 million.

        December 1995 Quarter

            Operating revenues in the December 1995 quarter were $2.9
        billion, up one percent from the December 1994 quarter.  Operating
        revenue per available seat mile increased two percent to 9.14 cents.

            Passenger revenue grew two percent, due to a 3.3 percent
        improvement in the passenger mile yield, which was partially offset
        by a 1.6 percent decline in passenger traffic to 20.8 billion
        revenue passenger miles. Cargo revenue decreased 12 percent to $135

            Operating expenses in the December 1995 quarter declined four
        percent from the December 1994 quarter to $2.8 billion.  Expenses
        include $22 million in additional jet fuel taxes, due to the October
        1995 expiration of an industry exemption from a 4.3 cents per gallon
        fuel tax and the unresolved status of a further exemption.
        Leadership 7.5 initiatives contributed to reductions in most cost

            Operating cost per available seat mile declined four percent to
        8.61 cents, as operating capacity declined one percent to 32.2
        billion available seat miles.  Excluding the 4.3 cents per gallon
        jet fuel tax, operating cost per available seat mile was 8.54 cents.

            Passenger load factor for the December 1995 quarter was 64.5
        percent, compared to 65.0 percent in the December 1994 quarter. The
        break-even load factor declined to 60.5 percent from 64.6 percent.

        Calendar Year 1995

      Operating revenue in calendar 1995 increased two percent from
        calendar 1994 to $12.3 billion.  Passenger revenue was up two
        percent to $11.4 billion, as the passenger mile yield rose three
        percent to 13.38 cents and passenger traffic declined one percent to
        85.1 billion revenue passenger miles.  Cargo revenue decreased five
        percent to $537 million, due to a five percent decline in cargo ton

            Operating revenue per available seat mile increased two percent
        to 9.41 cents.

            Operating expenses totaled $11.2 billion in calendar 1995,
        compared to $12.3 billion in calendar 1994.  Calendar 1994 expenses
        include a $414 million pretax restructuring charge related to the
        company's Leadership 7.5 program.  Excluding this restructuring
        charge, calendar 1995 expenses were down six percent from the
        previous year.

            Available seat miles in calendar 1995 totaled 130.2 billion,
        essentially unchanged from the previous year.  Operating cost per
        available seat mile, excluding the calendar 1994 restructuring
        charge, decreased five percent from 9.10 cents to 8.61 cents.

            Passenger load factor for calendar 1995 was 65.4 percent
        compared to 66.2 percent in calendar 1994.  The break-even load
        factor was 59.4 percent, down from 65.1 percent excluding the 1994
        period restructuring charge.

        Delta Board of Directors Declares Cash Dividends

Delta Air Lines' Board of Directors, at their regular meeting
        held here today, declared cash dividends of five cents per common
        share and $875 per share of Series C Convertible Preferred Stock
        ($0.875 per depositary share).

            Both dividends are payable March 1, 1996, to stockholders of
        record on February 8, 1996.

        CONTACT:  Corporate Communications, 404-715-2533 or 404-715-2532,
        or Investor Relations, 404-715-6679, both of Delta Air Lines


            GRAND RAPIDS, Mich., Jan. 25, 1996 -- Guardsman Products,
        Inc. (NYSE: GPI) today announced that 1995 sales increased 24% to a
        record $250,574,000 up from $201,888,000 in 1994.  Net income before
        previously announced restructuring charges amounted to $8,067,000
        ($.85 per share) for the year ended December 31, 1995, up 37% from
        the $5,903,000 ($.70 per share) earned during 1994.  Pretax earnings
        before restructuring charges increased 34% from $9,839,000 in 1994
        to $13,138,000 in 1995.  Earnings in 1995 were impacted by
        restructuring charges, which decreased pretax income by $10,458,000
        or $.70 per share for the year.  Including the restructuring
        charges, net income totaled $1,432,000 or $.15 per share.

            Sales for the fourth quarter were a record $61,436,000 in 1995
        compared to $56,890,000 in the fourth quarter of 1994, an increase
        of 8%.  For the fourth quarter, Guardsman reported net income before
        restructuring charges of $2,377,000 ($.25 per share) up 94% from the
        $1,225,000 ($.13 per share) in 1994.  Restructuring charges recorded
        in the fourth quarter of 1995 totaled $9,988,000 or $.67 per share
        resulting in a net loss of $3,971,000 or $.42 per share for the


            Solid growth in both sales and operating profits was achieved
        from all three business groups.  These results are reflective of
        growth from ongoing operations as well as from acquisitions in the
        Metal Coatings and Consumer Products Groups.

            The Company has previously indicated that its strategic plan
        calls for a doubling of net operating margins particularly in its
        coatings businesses, and a doubling in size of its consumer
        business. It recorded steady progress on both fronts in 1995.

            "A step at a time, we are getting where we have to get on our
        strategy," commented Charles E. Bennett, President and Chief
        Executive Officer.  "Net margins, prior to restructuring charges,
        were up 37%. Once again, our Consumer Products Group achieved very
        handsome revenue gain. Additionally, strong volume increases allowed
        us to realize better returns on our ongoing fixed cost base
        reduction program.  We have set the stage for more of the same in
        1996," Mr. Bennett commented.

            "As announced on November 14, 1995, we undertook a restructuring
        of our Coatings Group and other corporate structure changes to
        increase our future gross and net operating margins.  We recorded
        the financial effect of these actions during the fourth quarter with
        a resultant one- time impact on our earnings.  As production is
        realigned within our more efficient facilities and as the
        administrative workload is consolidated or eliminated over the next
        several months, we will report continued improvement in operating
        results for 1996 and into the future," Mr. Bennett said.

                                  Quarter Ended           Year Ended
                                   December 31,          December 31,
                                  1995     1994       1995         1994
                    (thousands of dollars, except share and per share data)
        Net Sales               $61,436  $56,890    $250,574     $201,888
        Cost of Sales            39,352   38,366     165,618      132,984
        Operating Expenses       18,201   16,162      70,274       58,251
        Operating Income Before
          Restructuring Charges   3,883    2,362      14,682       10,653
        Interest Expense            516      413       2,131        1,188
        Investment Income          (153)     (94)       (587)        (374)
        Income Before
         Restructuring Charge     3,520    2,043      13,138        9,839
        Restructuring Charge      9,988               10,458
        Income Before Income
          Taxes                  (6,468)   2,043       2,680        9,839
        Income Taxes             (2,497)     818       1,248        3,936
        Net Income              $(3,971)  $1,225      $1,432       $5,903
        Income Per Share:
        Before Restructuring
         Charges                  $0.25    $0.13       $0.85        $0.70
        Restructuring Charges     (0.67)               (0.70)
        Net Income               ($0.42)   $0.13       $0.15        $0.70
        Weighted Average Shares
         Outstanding          9,550,234  9,474,283  9,515,199   8,464,639

            Founded in 1915, Guardsman Products, Inc. is a leading producer
        of custom industrial coatings to the furniture, agricultural and
        construction equipment and other markets (80% of business).  Its
        growing consumer home care products (20% of business) are featured
        in do-it- yourself, hardware, and mass merchandise stores across
        America.  Its strategy calls for margin improvements by achieving
        higher revenues from the existing asset base in its coatings
        business and accelerated homecare products growth in targeted
        distribution channels.

        CONTACT:  Henry H. Graham, Jr., Vice President of Finance and Chief
        Financial Officer of Guardsman, 616-957-2600

Phar-Mor, Inc. reports
second quarter net income   

            YOUNGSTOWN, Ohio -- Jan. 25, 1996 --
Phar-Mor, Inc.
        today announced the results for its second fiscal quarter, the
        thirteen weeks ended December 30, 1995.  For the 102 drug stores
        that the Company operates, all of which are comparable stores, net
        income for the quarter was $ 3,578,000 or $0.29 per share compared
        to, on a pro forma basis, $ 5,470,000 or $0.45 per share for the
        comparable thirteen weeks ended December 31, 1994 (giving
        retroactive effect to fresh start accounting adjustments,
        elimination of non-recurring reorganization costs and adjusting
        interest expense to give effect to the new debt of the reorganized

            Net income for the twenty-six weeks ended December 30, 1995, on
        a pro forma basis, was $ 4,468,000 or $ 0.37 per share, compared to
        $ 6,277,000 or $ 0.52 per share for the comparable twenty-six weeks
        ended December 31, 1994.  

            Sales were $ 284.3 million for the second quarter, compared to $
        305.9 million for the second quarter of the prior year, a decrease
        of 7.0 % .  The sales decrease was a result of shortfalls in
        seasonal categories of general merchandise, cosmetics and

            Sales were $ 539.2 million for the twenty-six weeks ended
        December 30, 1995, compared to $ 581.6 million for the comparable
        twenty-six weeks of the prior year, a decrease of 7.3 % .  

            Phar-Mor is a retail drug
store chain with 102 stores in 18 states.  The Company's common stock
is traded on the NASDAQ Small Cap Market under the symbol "PMOR". The
Company expects to be listed on the NASDAQ National Market following
the completion of the Securities and Exchange Commission's review of
its amended Form 10 registration statement, which was filed with the SEC
on December 15, 1995.

                                    PHAR-MOR,  INC.
                       (In  thousands,  except  per  share  amounts)
        PROFORMA :  (a)
                        Successor Company         Successor Company         
                      Thirteen Weeks Ended       Twenty-six Weeks Ended
                      12/30/95    12/31/94       12/30/95  12/31/94
           Sales          $284,318    $305,949       $539,163  $581,635     
           Income before
        income tax
        expense         $5,966      $9,116         $7,450   $10,461    
           Income tax
        expense          2,388(b)    3,646(b)       2,982(b)  4,184(b)
           Net income       $3,578      $5,470         $4,468    $6,277    
           Earnings per
        share            $0.29       $0.45          $0.37     $0.52    
        AS REPORTED:                                
                        Successor Company         Predecessor Company          
                     Thirteen Weeks Ended         Thirteen Weeks Ended          
                            12/30/95                   12/31/94          
           Sales                $284,318(c)                $405,616(c)
           Income before
        items and income
        taxes                 $5,966(c)                  $6,283(c)       
           Reorganization items       -                         247(d)
           Income before income
        taxes                  5,966                      6,530          
           Income tax expense      2,388(b)                      -(b)       
           Net income             $3,578                     $6,530
           Earnings per share      $0.29                        N/M
                            Successor Company         Predecessor Company
                           Seventeen              Nine      Twenty-six    
                          Weeks Ended         Weeks Ended   Weeks Ended    
                            12/30/95            9/2/95       12/31/94  
           Sales                $357,195(c)       $181,968(c)    $768,840(c)
           Income (Loss) before
        items, fresh start
        extraordinary item
        and income taxes      $6,112(c)        ($1,634)(c)     $2,886(c)
           Reorganization items       -            (16,798)(d)
           Fresh start revaluation    -              8,043             -    
           Extraordinary item -
        gain on debt  discharge   -            775,073             -    
           Income (loss) before
        income taxes           6,112           764,684            (56)  
           Income tax expense      2,446(b)              -(b)           -(b)
           Net income (loss)      $3,666          $764,684           ($56)
           Earnings per share      $0.30               N/M            N/M


        (a) The Company emerged from protection under Chapter 11 of the
        United States Bankruptcy Code on September 11, 1995 (the
        "Effective Date").  Consequently,  the Company has applied the
        reorganization and fresh-start reporting adjustments to the
        balance sheet as of September 2, 1995, the closest fiscal month
        end to the Effective Date.  The proforma information is for the
        102 stores that the Successor Company was operating when it
        emerged from bankruptcy on September 11, 1995.  The proforma
        information includes all retroactive adjustments for fresh start
        accounting, elimination of non-recurring reorganization items
        and adjusting interest expense to give effect to the new debt of
        the reorganized Company.                             

        (b) Due to the losses generated by  the Predecessor Company it
        was in a net operating loss carryforward position.  Further, the
        discharge of debt in conjunction with the reorganization did not
        generate taxable income.  Consequently, no provision for income
        taxes was recorded by the Predecessor Company.   The income tax
        provision for the Successor Company has been computed at the
        estimated combined Federal and state tax rate of approximately

        (c) Includes results for 143 stores for the 13 weeks and 26
        weeks ended December 31, 1994 and 102 stores for all other
        periods presented.                             

        (d) Reorganization items include charges for Chapter 11
        professional fees, the Debtor-In-Possession financing facility
        fees and costs of downsizing net of credits for interest income,
        amortization of prepetition vendor exclusivity income, gain on
        sale of an asset held for sale and an insurance claim recovery.

        EARNINGS PER SHARE for the Successor Company have been computed
        based on 12,156,250 weighted average shares outstanding for each
        period.  No earnings per share have been presented for the
        Predecessor Company  because such presentation would not be

        CONTACT: Gary Holmes,
                 (212) 484-7736


            BEAVERTON, Ore., Jan. 25, 1996 --  Epitope, Inc.(AMEX: EPT)
today reported a net loss of $0.13 per share ($1.7 million) for
        the first quarter of fiscal 1996, ended December 31, 1995, compared
        with a net loss of $0.39 a share ($4.3 million) for the first
        quarter of fiscal 1995.  Revenue for the quarter totaled $1.3
        million, compared with $1.1 million for the first quarter a year

            Sales of the company's oral specimen collection device in the
        current quarter were approximately four times the levels achieved in
        the first quarter of fiscal 1995 due to increased use of the device
        for insurance risk assessment.  That increase more than offset a
        decline in revenues from sales of the company's serum HIV Western
        blot confirmatory test.  Product revenues for the prior year
        included $393,000 from the company's fresh flower packaging
        operation that was divested in May 1995.  Product revenues for the
        company's medical products division increased 17% over the prior
        year quarter.  Grant and contract revenues in the current quarter
        included $390,000 of payments pursuant to the company's development,
        license and supply agreement with SmithKline Beecham, plc (SB).

            The company's medical products division reduced its operating
        loss as compared to the prior year first quarter by approximately $1
        million due to improved profitability of products, contract revenues
        from SB, and cost reductions as a result of the company's
        restructuring program. Operating losses in the first quarter of the
        prior fiscal year included $1.6 million related to two agricultural
        operations which were divested late in the prior fiscal year.

            Just prior to the end of the quarter, on December 22, the
        company received an approvable letter from the Food and Drug
        Administration with respect to its application to market its Western
        blot HIV-1 confirmatory test for use with specimens collected with
        its oral specimen collection device.  The FDA indicated that it will
        issue an approval order after certain information has been
        submitted, reviewed and deemed acceptable, and upon successful
        completion of a facilities inspection.  The company recently
        submitted the requested information.  An inspection is currently

            "We are pleased to have accomplished a significant reduction in
        operating losses as we execute our plan to bring the company to
        profitability," said Adolph J. Ferro, president and chief executive
        officer.  "Use of the Epitope oral specimen collection device for
        insurance risk assessment purposes continues to increase.  We
        believe that approval of the OraSure(R) Western blot test will lead
        to widespread use of our insurance testing product and in a broad
        range of professional markets to be served by our marketing partner,
        SmithKline Beecham.  SB plans to launch the OraSure oral specimen
        device to various professional markets upon FDA approval of the
        confirmatory test."

        A tabulation of results follows (in thousands, except per share data):

        EPITOPE, INC.
                                                      Three months ended
        OPERATING HIGHLIGHTS                          12/31/95   12/31/94
        Revenue                                       $ 1,311    $ 1,135
        Net loss                                       (1,652)    (4,302)
        Net loss per share                               (.13)      (.39)
        Average shares outstanding                     12,492      11,031
        SELECTED BALANCE SHEET DATA                   12/31/95   12/31/94
        Cash and marketable securities                $19,304    $14,458
        Working capital                                19,582     15,764
        Total assets                                   28,119     23,466
        Convertible notes                               3,620      4,070
        Shareholders' equity                           21,332     17,048
            Epitope, Inc. is an Oregon corporation which develops and
        markets products for the detection of HIV/AIDS and other indications
        and, through its agricultural unit, superior new plants and related

        CONTACT:  Mary Hagen or Gus Allen of Epitope, 503-641-6115/

Diamond increases offer to acquire "chap11.hayes.html">Hayes Microcomputer Products, Inc.

            SAN JOSE, Calif. -- Jan. 25, 1996 -- Diamond Multimedia
(Nasdaq: DIMD) Thursday announced that it has increased
        its offer to acquire Hayes Microcomputer
Products, Inc.
out of Chapter 11 bankruptcy reorganization.  

            The Official Committee of Unsecured Creditors of Hayes (the
        "Committee"), which has approved the Diamond offer, today filed with
        the U.S. Bankruptcy Court in Atlanta, Georgia, an amendment to the
        Plan of Reorganization of the Committee and Diamond increasing the

            The Committee and Diamond filed an amendment to the Plan on
        December 7, 1995 in which Diamond proposed to provide approximately
        $85 million in cash to creditors, representing a full pay-out of pre-
        petition claims, plus interest, and offered equity holders $92
        million in stock and $8 million in cash.  The new offer continues to
        provide cash to creditors, however, equity holders will now receive
        an aggregate of $102.4 million in stock and $8.6 million in cash.
        Diamond further reserved the right to increase the total cash
        consideration and correspondingly decrease the total stock
        consideration by any amount up to one-half of the total merger
        consideration of $111 million.  

        Diamond Multimedia

            Diamond Multimedia designs, markets and supports high-
        performance multimedia solutions for the PC and Macintosh markets.
        Products include the Stealth, Viper and SPEA brands of graphics, CAD
        and multimedia accelerators, Diamond EDGE 3D animation accelerators
        and Supra fax/modems.  

            Diamond also markets Internet kits including ISDN adapters, as
        well as sound cards and multimedia upgrade kits.  Headquartered in
        San Jose, CA, Diamond has marketing and technical support facilities
        in Vancouver (Wash.), Tokyo, Starnberg (Germany), Paris and Slough
        (U.K.) Diamond's products are sold through regional, national and
        international distributors as well as to major computer retailers,
        mass merchants and OEMs worldwide.  Diamond's common stock is traded
        on the Nasdaq National Market under the symbol DIMD.  

        CONTACT: Diamond Multimedia,
                 Gary Filler, 408/325-7333 (investors) /
                 Kim Stowe, 408/325-7204 (media),


                 Financial Relations Board,
                 Ann Trunko, 415/986-1591 (general information) /
                 Kevin Mirise, 415/986-1591 (analyst contact)

SEEQ Reports First Quarter 1996 Results

            FREMONT, Calif. -- Jan. 25, 1996 -- SEEQ Technology
        Incorporated (NASDAQ;SEEQ) today announced financial results for its
        first quarter ended December 31, 1995.  The semiconductor company
        specializing in data communication products reported a net loss of
        $293,000 or $0.01 per share, on revenues of $4,801,000 compared to a
        net profit, which includes a $285,000 credit to previously
        established restructuring reserves, of $494,000 or $0.02 per share,
        on revenues of $6,180,000 for the corresponding prior-year period.  

            Phil Salsbury, SEEQ's President and Chief Executive Officer
        commented, "We are disappointed that production during the first
        quarter of fiscal 1996 was not sufficient to meet demand.
        Consequently, product availability and revenues were significantly
        lower than planned.  During the last six months, we began production
        at three foundries while discontinuing business with another.
        Achieving adequate production ramp-up has been slowed by the effects
        of continued strong world-wide demand for semiconductor foundry
        capacity.  However, we believe we are nearing the end of this
        transition period and expect to see future improvement in wafer and
        product availability.  Gross margins for the quarter were impacted
        by higher costs relating to start-up production for several new
        product offerings.  Our financial position has remained stable as we
        reduced our outstanding debt during the quarter by almost $3 million
        and net working capital remained at approximately $6.2 million.  

            Customer interest in SEEQ's data communication products is very
        strong and our backlog of datacom orders grew to an all time high
        for the second consecutive quarter.  During the first quarter of
        fiscal 1996, SEEQ achieved a number of major accomplishments.  Of
        primary importance, we secured strategic design wins for both our
        Fast Ethernet Controllers and Ethernet Media Transceivers and also
        met important initial product delivery schedules.  We are very
        encouraged by these recent events as they support our belief that
        SEEQ has emerged as a leading provider of highly integrated, high
        performance and cost effective Ethernet solutions.  During the
        coming quarter, we expect to reach a major milestone in our Fast
        Ethernet product family when we complete introduction of our
        physical layer component for the Fast Ethernet 100Base T4 market.
        We have initiated sampling of this product and, to date, have booked
        first orders with key customers.  We are excited about these
        additions to our Fast Ethernet product line-up and are confident the
        market recognizes SEEQ's measurable cost and performance advantages
        over competing solutions."  

            SEEQ Technology Inc. is a leading manufacturer of data
        communications semiconductor products.  As a LAN pioneer, it
        introduced the first integrated Ethernet controller in 1982.  The
        company's Ethernet solutions are used in industry-leading
        applications such as Network Interface Cards, Hubs/Bridges/Routers,
        Switches, and Test Equipment.  SEEQ has recently extended its
        product families to include both Fast Ethernet (100 Base-T) and
        Asynchronous Transfer Mode (ATM) components.  SEEQ is located at
        47200 Bayside Parkway, Fremont, CA. 94538.  Telephone (510)226-7400;
        Fax: (510)657-2837.  "Safe Harbor" Statement under the Private
        Securities Litigation Reform Act of 1995

            This press release contains forward-looking statements within
        the meaning of Section 27A of the Securities Act of 1933 and Section
        21E of the Securities Exchange Act of 1934, including statements
        regarding the expectation of increased capacity, product
        availability and the timing of new product introductions during the
        remainder of fiscal 1996.  Except for historical information, the
        matters discussed in this press release are forward-looking
        statements that are subject to certain risks and uncertainties that
        could cause the actual results to differ materially from those
        projected.  Factors that could cause actual results to differ
        materially include the following: general economic conditions and
        conditions specific to the semiconductor industry, fluctuations in
        customer demand and the timing and market acceptance of new product
        introductions, SEEQ's ability to have available an appropriate
        amount of foundry capacity and product availability in a timely
        manner, the timely development of new products, and the risk factors
        listed from time to time in SEEQ's SEC reports, including but not
        limited to the report on Form 10-K for the year ended September 30,
        1995 (Management's Discussion and Analysis of Financial Condition
        and Results of Operations, Factors Affecting Future Results
        section).  SEEQ assumes no obligation to update the information
        included in this press release.

            For easy access to SEEQ's product and financial information use
        our world wide web site at " target=_new>">        

        (In thousands, except per share amounts)        
                                      Three months ended  
                                   Dec. 31,         Dec. 31,
                                     1995            1994
        Revenues                        $4,801          $6,180
        Costs and expenses:    
           Cost of revenues              3,487           4,330   
           Research and development        786             836
           Marketing, general and
        administrative                 921             855
           Restructuring and other, net     --            (285)
                                    ------          ------
        Total costs and expenses         5,194           5,736
                                    ------          ------
        Income (loss) from operations     (393)            444
        Interest expense                   (83)            (87)
        Interest and other income, net     183             142
                                    ------          ------
        Income (loss before
         income taxes)                    (293)            499
        Provision for income taxes          --              (5)   
                                    ------          ------
        Net income (loss)                ($293)           $494
                                    ------          ------
        Net income (loss) per share:    ($0.01)          $0.02
        Shares used in per share
         calculation:                   29,873          25,820
         (in thousands)    
                                    Dec. 31,        Sep. 30,
                                      1995           1995
        Current assets:     
           Cash and cash equivalents     $3,112          $3,682
           Restricted Cash                   --           3,000
           Accounts receivable,
        less allowances               3,860           3,900
           Inventories                    2,546           2,230
           Deposits and prepaid expenses    535             212
                                    -------         -------
        Total current assets             10,053          13,024
           Net property and equipment     1,574           1,500
           Other assets                   4,494           4,410
                                    -------         -------
        Total assets                    $16,121         $18,934
                                    -------         -------
        Liabilities and Stockholders' Equity     
        Current liabilities:     
           Note Payable to bank         $    --          $3,000
           Accounts payable               2,572           1,938
           Accrued salaries, wages  
        and employee benefits           341             467
           Other accrued liabilities        592             950
           Current portion of long-term
        obligations                     343             287
                                    -------         -------
        Total current liabilities         3,848           6,642
           Long-term obligations          1,490           1,524
                                    -------         -------
        Total liabilities                 5,338           8,166
                                    -------         -------
           Stockholders' equity          10,783          10,768
                                    -------         -------
        Total liabilities and
         stockholders' equity           $16,121         $18,934
                                    -------         -------

        CONTACT: SEEQ Technology Inc.,
                 Phil Barton, Investor Relations, 510/226-2919