/raid1/www/Hosts/bankrupt/TCR_Public/960130.MBX BANKRUPTCY CREDITORS' SERVICE, INC.



    Laserscope Reports Fourth Quarter and Year End
        Results
        


            SAN JOSE, Calif. -- Jan. 30, 1996 -- Laserscope
        (Nasdaq: LSCP) today announced operating results for the fourth
        quarter and year ended December 31, 1995.
        


            The Company said that product shipment delays and restructuring
        charges negatively impacted its fourth quarter results.  
        


            Laserscope said that fourth quarter shipment delays were related
        to software modifications in its laser systems and delays in receipt
        of certain letters of credit for laser system purchases.  The
        Company said both issues are being resolved and that the backlog of
        products is expected to ship in the first quarter of 1996.  
        


            "Satisfying the backlog will assist our efforts to achieve
        improved results in the first quarter of 1996," said Robert V.
        McCormick, Laserscope President & CEO.  "The Company should also
        benefit in 1996 from two very recent events.  First, our new Aura
        Laser System, commercially launched in December 1995 for the private
        practice and outpatient surgical center market, is attracting
        considerable attention in both the U.S. and Europe.
        


            "Second," said McCormick, "the U.S. Food and Drug
        Administration's December 1995 marketing clearance for a unique
        cancer treatment utilizing the Company's laser systems and the drug
        PHOTOFRIN for the palliation of certain esophageal cancers is a
        breakthrough event in patient care.  We are especially pleased to
        have the opportunity to work side-by-side with Sanofi Winthrop,
        Inc., as part of our strategic alliance with QLT PhotoTherapeutics,
        to bring this innovative therapy to market."
        


            Marketing clearance for the Company's laser systems came in
        conjunction with the FDA approval of PHOTOFRIN to treat advanced
        esophageal cancer.  PHOTOFRIN, a proprietary drug of QLT
        PhotoTherapeutics Inc., is the first light-activated drug for use in
        Photodynamic Therapy (PDT) to be approved in the United States.
        


            Sanofi Winthrop, Inc., QLT PhotoTherapeutics' newly announced
        U.S. distribution partner, will distribute PHOTOFRIN.  Laserscope
        will distribute laser systems and QLT's OPTIGUIDE fiberoptic
        delivery devices.
        


            Commenting on the 1995 results, McCormick said, "The slowdown
        which we have been experiencing in the U.S. for capital equipment
        and laser prostate surgery devices continued unabated throughout the
        year."
        


            With regard to the future outlook, he said, "We believe our new
        Aura Laser System and market opportunities in PDT, arising from the
        approval of PHOTOFRIN, provide us with good opportunities for
        revenue growth.  Additionally, the restructuring action taken in the
        fourth quarter will reduce our expense levels going forward.  As a
        result, we are hopeful for improved results for the Company."
        


            For the fourth quarter of 1995, Laserscope reported revenues of
        $7.0 million, compared to revenues $10.2 million in the fourth
        quarter of 1994.  A net loss of $1.7 million (24 cents per share)
        was reported for the fourth quarter of 1995, compared to net income
        of $0.27 (4 cents per share) in the fourth quarter of 1994.  
        


            Revenues for the year ended Dec. 31, 1995 were $30.1 million,
        compared to $36.3 million in 1994.  A net loss of $3.5 million (51
        cents per share) was reported for the year ended Dec. 31, 1995
        compared to net loss of $0.93 million (13 cents per share) for the
        year ended Dec. 31, 1994.
        


            "In conclusion," said McCormick, "our international business is
        improving, our balance sheet is virtually debt free, and we look
        forward to favorable impacts from our new Aura Laser System and the
        emerging PDT market."  
        


            Statements in this announcement about estimated results are
        preliminary and based on partial information and management
        assumptions.  Except for the historical information presented, the
        matters discussed in this news release are forward looking
        statements that involve risks and uncertainties, including timely
        development and acceptance of new products in new markets, the
        impact of competitive products and pricing, the effect and timing of
        relevant regulatory approvals, and the other risks detailed from
        time to time in the company's public disclosure filings with the
        U.S. Securities and Exchange Commission (SEC).  Copies of the most
        recent Forms 10K and 10Q are available upon request from
        Laserscope's Investor Relations Department.
        


            Laserscope designs, manufactures, sells and services an advanced
        line of medical laser systems and energy delivery devices for the
        hospital, outpatient surgical center and physician office markets.
        It sells its products in the U.S., the U.K. and France through its
        own direct sales force and serves twenty other countries in Europe,
        the Middle East and the Asia-Pacific region through regional
        distributors.

        
                             LASERSCOPE FINANCIAL SUMMARY
                          (Thousands except per share amounts)
                                     (Unaudited)
                     Condensed Consolidated Statement of Operations
        
                                Three Months Ended   12 Months Ended
                                    December 31,        December 31,
                                 1995      1994      1995         1994
        
        Net revenues                $6,991   $10,195    $30,133    $36,320
        Costs of sales               3,746     4,998     14,792     16,918
                               -------   -------    -------    -------
        Gross margin                 3,245     5,197     15,341     19,402
        Operating expenses:      
          Research and development     813       826      3,838      3,589
          Selling, general and
           administrative            3,750     4,171     14,914     16,994
        
          Restructuring expenses       419        --        419         --
                               -------   -------    -------    -------
                                 4,982     4,997     19,171     20,583
        
        Operating income (loss)     (1,737)      200     (3,830)    (1,181)
        Interest and other
         income, net                    28        71        278        250  
                               -------   -------    -------    -------
        Income (loss) before
         income taxes               (1,709)      271     (3,552)      (931)
        Provision for income taxes      --        --         --         --
                               -------   -------    -------    -------
        Net income (loss)          $(1,709)     $271    $(3,552)     $(931)
        Net income (loss)
         per share                  $(0.24)    $0.04     $(0.51)    $(0.13)
        Shares used in per share
         calculations                7,015     6,957      6,999      6,924
        
        Condensed Consolidated Balance Sheet
        
                                          December 31,    December 31,
                                               1995           1994
        
        Assets
        Current assets:
          Cash, cash equivalents &
           short-term investments                 $2,278          $6,602
          Accounts receivable, net                 5,543           8,066
          Inventories                             10,292           7,512
          Other current assets                       692           1,038
                                             -------         -------
        Total current assets                  18,805          23,218
        
        Property and equipment, net                2,663           3,320
        Other assets                               2,114             783
                                             -------         -------
        Total assets                         $23,582         $27,321
        
        Liabilities and Shareholders' Equity
          Current liabilities                    $ 6,241         $ 6,393
          Obligations under capital leases            15              27
          Shareholders' equity                    17,326          20,901
                                             -------         -------
        Total liabilities and
          shareholders' equity                   $23,582         $27,321


        CONTACT:  Laserscope
                  Richard Wood, (IR/Media)
                            or
                  Thomas Boyd, (Financial) 408/943-0636



        Augat reports fourth quarter and year end results
        including restructuring and other charges
        


            MANSFIELD, Mass. -- Jan. 30, 1996 -- Augat Inc.
        (NYSE:AUG) today reported that for the fourth quarter ended December
        31, 1995, it incurred a net loss of $9.5 million, or $0.48 per
        share, compared with net income of $7.2 million, or $0.37 per share,
        for the same period in 1994.  
        


            As reported on December 20, 1995, the fourth quarter of 1995
        included restructuring costs and other charges totaling $23 million
        pre-tax ($15.3 million after taxes, or $0.77 per share).  Excluding
        the restructuring and other charges, the Company earned $5.8 million
        in net income, or $0.29 per share, for the fourth quarter of 1995.  
        


            For the year ended December 31, 1995, Augat's net income before
        the restructuring and other charges was $22.9 million, or $1.16 per
        share.  Including the restructuring and other charges of $15.3
        million after taxes, the company reported net income of $7.6
        million, or $0.39 per share, for 1995 versus $26.2 million or $1.36
        per share in 1994.  
        


            Sales for the 1995 fiscal year increased by one percent to
        $534.9 million versus $530.7 million in 1994.  
        


            "Augat's results for 1995 were clearly mixed," said William R.
        Fenoglio, Augat's President and Chief Executive Officer.  "We have
        already taken steps, through our restructuring plan, to improve our
        competitiveness as well as our long-term return to shareholders."  
        


            During 1995, the Communications Division sales grew more than 30
        percent, with strong growth in all key geographical locations.  The
        division recently captured new business with Cox, Time Warner and
        Italy's Sirti, along with follow-on business in Korea.  
        


            "We are pleased with both the worldwide sales growth and long-
        term international business growth potential in the Communications
        Division," commented Fenoglio.  "Recent wins in Japan, Australia,
        Italy and Korea reinforce our strategy to focus our resources in the
        communications arena."  
        


            For the year, Automotive Division sales worldwide were down by
        15 percent.  However, wiring sales decreased by 30 percent due to
        the lower production run rates for both the Aerostar and the Mustang
        car platforms.  The automotive volumes were further depressed by the
        delayed ramp-up of the new Chrysler mini-van.  The weak wiring sales
        were partially offset by growth in both domestic and European
        automotive components markets.  
        


            The Interconnection Products Division's sales grew 7 percent in
        1995, excluding the acquisition of Elastomeric Technologies Inc.
        Worldwide, the division experienced strong demand in components for
        PC modems, as well as connectors for portable communications and
        high performance workstations.  
       


            "In addition, our Interconnection Products Division continued
        its performance turnaround.  Our move to a more focused product line
        strategy and pruning of non-performing commodity lines is currently
        on track," Fenoglio said.  "The restructuring announced in December
        will help us improve our overall competitiveness in our key product
        lines: switches, sockets, terminal blocks and connectors."  
        


            Augat reported that incoming orders for the fourth quarter of
        1995 were $135 million versus $140 million in the fourth quarter of
        1994.  The backlog at December 31, 1995 was $124 million compared to
        $119 million at December 31, 1994.  
        


            "Augat is well positioned for the future," said Fenoglio.  "We
        continue to introduce new products and see continued growth,
        particularly in the international segments of our business.  Our on-
        going objective is to generate at least 35 percent of our annual
        sales from products introduced within the past three years."  
        


            Fenoglio continued, "During 1995 we made two strategic
        investments: Photon Systems and Elastomeric Technologies, both of
        which are adding new dimensions to our product offerings in the
        Communications and Interconnection Products Divisions.  In December,
        we also announced our intent to acquire certain assets of Lindsay
        Specialty Products.  Lindsay Specialty Products is primarily a
        leading manufacturer and global provider of RF distribution products
        for the cable television (CATV), wired communications and wireless
        industries.  During 1996, we will continue to make investments for
        the future.  We expect to see solid earnings improvement in 1996,
        recognizing that a major unknown is the yet-unpassed U.S.
        Telecommunications Bill."  
        


            The Company also announced that the Board of Directors, on
        January 29, 1996, approved a quarterly dividend of $0.04 per share
        on the Company's common stock.  The cash dividend will be paid on
        February 29, 1996, to shareholders of record on February 12, 1996.  
        


            One of the largest manufacturers of connector products in the
        world, Augat Inc., is pursuing a strategy for growth in
        communications, automotive, computer and industrial markets through
        customer partnerships, new-product introductions, strategic
        acquisitions and ongoing productivity measures.  
        


                                    AUGAT INC.
                        STATEMENTS OF CONSOLIDATED INCOME
          For the Three Months and Twelve Months ended Dec. 31, 1995 and
        1994
                  (Dollars in thousands, except per share data)
        
                          Three Months Ended     Twelve Months Ended
                             1995       1994       1995         1994
         Net sales            $137,874   $141,195   $534,873     $530,706
         Cost of products sold 110,146    114,417    423,699      420,647
         Gross margin           27,728     26,778    111,174      110,059
         Selling, general and
          administrative
          expenses             21,201     15,313     75,998       66,219
         Restructuring costs    18,700                18,700
         Income from operations(12,173)    11,465     16,476       43,840
         Other income (expense) -
         net                   (2,243)      (900)    (4,716)      (4,140)
         Income (loss) before taxes on income                (14,416)
        10,565     11,760       39,700
        
         Provision (credit) for taxes on income                 (4,946)
        3,415      4,160       13,500
        
         Net income (loss)     ($9,470)    $7,150     $7,600      $26,200
         Earnings(loss) per
         share                 ($0.48)     $0.37      $0.39        $1.36
         Average common shares
          outstanding          19,924     19,446     19,727       19,280
         
         NOTE:
            Restructuring costs and other charges in the fourth
        quarter and twelve months ended December 31, 1995 as follow:
         
             Restructuring costs                $18,700
             Other charges                       $4,300
                     Total                      $23,000
        
        CONTACT:  Ellen B. Richstone    or  James R. Buckley
                  Chief Financial Officer   Account Executive
                  Augat Inc.                Sharon Merrill Associates, Inc.
                  508/543-4300              617/262-1800




COBRA INDUSTRIES ANNOUNCES SALE OF ASSETS;
REMAINING ASSET BEING MARKETED FOR SALE
        


            GOSHEN, Ind., Jan. 30, 1996 -- href="chap11.cobra.html">Cobra Industries, Inc. (UL:
        COI) announced today that it has closed a Court-approved agreement
        to sell substantially all of its assets to the privately-held Forest
        River Industries, Inc.  Cobra's remaining principal asset, the
        TransCon regional van conversion business in Texas, is currently
        being marketed for sale.  The company has been operating under
        Chapter 11 of the United States Bankruptcy Code since October 27,
        1995.
        


            Forest River's management, which replaces Cobra's senior
        management team effective immediately, said it plans to resume
        fulfilling customer orders as soon as possible.  Employees who have
        been on lay-off for the past few weeks are being recalled to work at
        the company's Indiana and California operations.  Forest River also
        expects to maintain the company's current network of dealers and
        suppliers.
        


            Proceeds from the sale have been used to repay Cobra's existing
        debt with Congress Financial Corporation, New York, which had
        provided debtor- in-possession (DIP) financing and a term loan.
        


            Cobra Industries, headquartered in Goshen, Indiana, was one of
        North America's largest recreational vehicle producers, with
        manufacturing facilities in Indiana, California and Texas.  The
        company produced conventional trailers, park trailers, folding
        camper trailers and van conversions.
        


        CONTACT:  James J. Roop or Robert G. Berick of Watt, Roop & Co.,
        216-566-7019



PETRIE RETAIL NAMES EDWIN J. HOLMAN PRESIDENT
AND CHIEF OPERATING OFFICER
        


            SECAUCUS, N.J., Jan. 30, 1996 --
Petrie Retail Inc.
, a
        privately held company,  announced today that Edwin J. Holman, 48,
        will join the company as President and Chief Operating Officer
        effective immediately.

        
            "We are excited to be adding an executive with Ed Holman's
        operating experience and expertise to the talented management team
        we have been assembling over the past year," said Verna Gibson,
        Chairman and Chief Executive Officer.  "Our goal was to fill the
        positions of President and Chief Operating Officer on a permanent
        basis as quickly as possible, and we have not only fulfilled that
        objective, but in the process have succeeded in attracting one of
        the most highly skilled, results-oriented retailing executives in
        the industry.  His command of virtually all aspects of the retail
        business - from operations to finance and strategic planning - is
        the ideal complement to the wealth of merchandising skill and
        experience Petrie possesses."
   

     
            Mr. Holman said, "I am very pleased to be joining an
        organization with the strength of franchise and depth of management
        that Petrie boasts.  Petrie has tremendous potential.  I joined this
        team not just to complete the reorganization, which I am eager to
        do, but to identify and build upon the exciting opportunities that
        lay ahead."
      

  
            Ms. Gibson added, "All of us at Petrie appreciate the diligent
        work of Gil Osnos, who fulfilled the roles of President and Chief
        Operating Officer on a temporary basis since November while we
        conducted our search for a long-term executive."  Mr. Osnos is
        Chairman of Osnos & Co., a leading crisis and turnaround management
        firm.
        


            Mr. Holman began his retail career in 1964 at Milgrim Food
        Stores. Most recently, he served as President and Chief Executive
        Officer of Woodward & Lothrop, a
department store chain which also
        operated John Wanamaker
Philadelphia
,  joining the company shortly
        after it filed for Chapter 11 in June of 1994.  He remained with the
        Company until the sale of its operations in December, 1995.
        


            Prior to joining Woodward & Lothrop, Mr. Holman worked for
        eleven years at Carter Hawley Hale Stores, where he ultimately rose
        to the position of Vice Chairman and Chief Operating Officer.
        During his tenure at Carter Hawley Hale, he served in a variety of
        other positions including Executive Vice President, Operations;
        Senior Vice President, Operations at the company's Neiman Marcus
        division; and Vice President and Controller.  He has also worked at
        Macy's Midwest in a variety of financial and operational positions.
        


            Mr. Holman earned his Bachelor of Arts, Bachelor of Science and
        Master of Business Administration from Rockhurst College.  He is
        married and has two children.
        


            Petrie Retail Inc., a privately held company based in Secaucus,
        New Jersey, operates women's apparel stores under the Petrie,
        Stuarts, Marianne, Jean Nicole, Winkleman's, MJ Carroll, Rave and G
        + G names. In October 1994, as a result of the difficult retailing
        environment, Petrie Retail filed a voluntary petition for protection
        under chapter 11 of the U.S. bankruptcy code.
        


        CONTACT:  Tom Daly, Dawn Dover or Adam Weiner, all of Kekst and
        Company, 212-593-2655
        



Spectravision receives five bids from parties
        interested in acquiring the company
        


            DALLAS, TX -- Jan. 30, 1996 -- href="chap11.spectra.html">Spectravision, Inc.
        announced today that it has received five bids from parties
        interested in acquiring the company as part of its solicitation of
        sponsors for its plan of reorganization.
        


            The deadline for submitting such bids was Jan. 29, 1996 as set
        in a Dec. 20, 1995 court order filed in the U.S. Bankruptcy Court in
        Wilmington, Del.

        
            Spectravision said it was evaluating the bids and would consult
        with the official committee of unsecured creditors (the "Committee")
        regarding each of the proposals.  The company said that it and the
        committee may initiate follow-up negotiations with the potential
        plan sponsors that may lead to the sponsors modifying their
        proposals.  Spectravision said that it has set Feb. 14, 1996 as the
        deadline for selecting a sponsor.
   

     
            As previously announced, Spectravision filed for protection
        under Chapter 11 of the U.S. Bankruptcy Code on June 8, 1995 in
        order to obtain additional financing and facilitate the
        implementation of its operational turnaround while it pursued a
        planned financial restructuring.  
      

  
            Spectravision, Inc. is the leading supplier of in-room, pay-per-
        view entertainment and information services to the worldwide lodging
        industry.  Through its STARPATH(TM) technology, it is the only
        company in the lodging industry delivering compressed digital video
        and digital video-on-demand to hotels in North America.  Founded in
        1971, the company markets its products and services in the U.S.,
        Canada, Mexico, the Caribbean, Australia and the Pacific Rim.
        


        CONTACT: Spectravision, Inc.,
                 Robert Mead, 212/484-6701
        



        SCO announces first quarter results
        


            SANTA CRUZ, Calif. -- Jan. 30, 1996--The Santa
        Cruz Operation, Inc. (NASDAQ NM: SCOC) today announced results for
        its first fiscal quarter ending December 31, 1995.  
        


            Revenues for the quarter were $47,914,000 compared to
        $47,982,000 for the first quarter of 1995.  Excluding the after tax
        impact of non-recurring charges of $38,363,000, relating to the
        acquisition of the UNIX business from Novell in December, 1995, net
        profits for the quarter were $2,605,000 or $0.08 per share.  Results
        for the first quarter including the non-recurring charges amounted
        to a net loss of $32,703,000 or $0.99 per share.  For the same
        quarter in 1995 a net loss of $9,328,000 or $0.30 per share was
        reported; excluding non-recurring charges related to the acquisition
        of Visionware Limited in December, 1994, net profits for the quarter
        were $3,937,000 or $0.12 per share.  

        
            The acquisition of the UNIX business from Novell was completed
        in the last month of the first quarter.  Consistent with industry
        practices a non-recurring charge of $38,363,000 was recorded,
        primarily related to purchased research and development which had
        not yet reached technological feasibility.  
   

     
            John Jarvis, chief financial officer, said, "Reductions in
        inventory levels maintained by some of the company's channel
        partners were a contributing factor to the leveling in revenues and
        came about as a result of a decision on how best to manage multiple
        product offerings in our distribution channels.  We have in this
        first quarter realized the benefit of prior action taken to reduce
        our operating costs, improve efficiency and restructure segments of
        the business: we shall continue to look for similar actions
        throughout the company, particularly as we assimilate the UNIX
        business recently acquired from Novell."  
      

  
            Alok Mohan, president and CEO of SCO, said, "We made some
        significant advances in the quarter having completed the acquisition
        of the UNIX business.  We are excited about our Client Integration
        business, our strategy for Layered Products, and our up-coming
        Internet announcements.  Additionally, we are receiving positive
        feedback from OEM's regarding our acquisition of the UNIX business,
        potential for enhanced relationships, and a consequent strengthening
        of the channel."  
        


            SCO, The Santa Cruz Operation, and the SCO logo are trademarks
        or registered trademarks of The Santa Cruz Operation, Inc. in the
        USA and other countries.  UNIX is a registered trademark in the US
        and other countries, licensed exclusively through X/Open Company
        Limited. All other brand or product names are or may be trademarks
        of, and are used to identify products or services of, their
        respective owners.

        
        THE SANTA CRUZ OPERATION, INC.
        CONSOLIDATED STATEMENTS OF OPERATIONS
        (in thousands, except earnings per share)
        
                                           Three months ended
                                             December 31,
                                           1995          1994
                                           ------------------
                                              (unaudited)
        Net revenues:
         Licenses                             $43,175     $42,628
         Services                               4,739       5,354
        Net revenues                       47,914      47,982
        
        Cost of revenues:
          Licenses                              7,707      7,964
          Services                              4,571      4,829
        Total cost of revenues             12,278     12,793
        Gross margin                       35,636     35,189
        
        Operating expenses:
          Research and development              7,945      7,451
          Sales and marketing                  19,722     18,833
          General and administrative            4,930      4,367
          Non-recurring charges                38,363     14,095
         Total operating expenses          70,960     44,746
         Operating losses                 (35,324)    (9,557)
        
        Other income (expense):
          Interest income (expense), net          629        899
          Other income (expense)                 (194)        69
        
         Loss before income taxes         (34,889)    (8,589)
        
          Income taxes (benefit)               (2,186)       739
        
         Net loss                        $(32,703)   $(9,328)
         Net loss per share                $(0.99)    $(0.30)
         Common and common equivalents
          used in computing net loss
          per share                        32,968     30,754
        
        THE SANTA CRUZ OPERATION, INC.
        CONSOLIDATED BALANCE SHEETS
        (in thousands, except for share data)
               
                                          December 31,     September 30,
                                              1995             1995
                                          ------------------------------
                                                   (unaudited)
        Assets
        Current assets:
          Cash and cash equivalents             $23,972           $32,074
          Short-term investments                 17,530            14,816
          Receivables, net                       47,767            45,009
          Deferred tax asset                      3,896             3,896
          Other current assets                   11,312             8,544
        
          Total current assets              104,477           104,339
        
        Property and equipment, net              15,249            14,991
        Other assets                             28,944            12,540
        
          Total assets                     $148,670          $131,870
        
        Liabilities and Shareholders' Equity
        Current liabilities:
          Royalties payable                      $4,673            $6,852
          Trade accounts payable                 10,908            10,207
          Income taxes payable                        6                31
          Accrued expenses and other
           current liabilities                   23,656            18,991
          Customer deposits and
           deferred revenues                      8,161             6,086
         
          Total current liabilities          47,404            42,167
        
        Other long-term liabilities               8,208             7,521
        
        Shareholders' Equity
          Common stock, net, authorized 100,000,000 shares
           Issued and outstanding 37,167,171 and
           30,844,003 shares                    127,027            83,146
          Cumulative translation adjustment        (386)              (84)
          Retained earnings                     (33,583)             (880)
        
           Total shareholders' equity        93,058            82,182
               
           Total liabilities and
            shareholders' equity           $148,670          $131,870


        CONTACT: Lippert/Heilshorn & Associates, Inc.
                 John Nesbett, 212/838-3777                          
                             or
                 The Santa Cruz Operation, Inc.
                 Monika Laud, 408/427-7421


        
        POLAROID REPORTS IMPACT OF RESTRUCTURING ON FOURTH QUARTER AND FULL
        YEAR RESULTS
     

   
            CAMBRIDGE, Mass., Jan. 30, 1996 -- Polaroid Corporation
        (NYSE: PRD) reported today that worldwide sales for the fourth
        quarter of 1995 were $674.8 million, a two percent decrease,
        compared with sales of $685.9 million in the fourth quarter of 1994.
        The net loss for the fourth quarter of 1995 was $111.0 million, or
        $2.44 primary loss per common share, compared to net earnings of
        $57.3 million, or $1.23 primary earnings per common share, in the
        fourth quarter of 1994. Excluding the pre-tax special charge for
        restructuring and other expenses of $170 million and the related tax
        effect, the primary loss per common share for the fourth quarter of
        1995 would have been $.01.
        


             The fourth quarter special charge for restructuring and other
        expenses, announced on December 19, 1995, related to the severance
        and early retirement programs and write-off of certain assembly
        equipment, fixed assets and inventory.  The special charge for this
        program is expected to total approximately $265.0 million.  Of that
        amount, $170.0 million was recorded in the fourth quarter of 1995
        and an estimated $90 million to $100 million will be charged in the
        first quarter of 1996.  The total special charge exceeds an earlier
        estimate due to the fact that the severance program is expected to
        result in the elimination of 1,600 positions worldwide, 300 more
        than originally anticipated, and will include a higher proportion of
        salaried employees. The company now expects to realize annualized
        savings of more than $110 million from the December-announced
        program.

        
             Operating profit for the fourth quarter of 1995, excluding the
        special charge, was $29.4 million, compared to $83.9 million for the
        fourth quarter of 1994.  This decrease was due to less-than-expected
        revenues, particularly in the U.S., and higher overhead expenses,
        including significant instant film marketing promotions and
        increased spending in the company's new digital imaging businesses.
        Including the special charge, the loss from operations for the
        fourth quarter of 1995 was $140.6 million.

        
             U.S. sales decreased in the fourth quarter of 1995 to $328.9
        million compared with $346.9 million in the same period last year,
        due primarily to the price promotions offered on instant integral
        film in the U.S. and Europe.  International sales were $345.9
        million in the fourth quarter of 1995, compared with $339.0 million
        for the fourth quarter of 1994.
   

     
            Retail sales of instant integral film in the United States were
        up six percent in the fourth quarter of 1995 compared with the same
        period in 1994, and were up 13 percent in December, despite the
        generally weak retail environment during the holiday season.  Dealer
        inventories of instant integral film were about ten percent lower
        than at year-end 1994.  The company believes that these retail
        indicators signal that the combination of new price promotions and
        the dealer inventory adjustment program were well received.
        Similarly, there are encouraging signs in Western Europe.
      

  
            Gary T. DiCamillo, Polaroid chairman and chief executive officer
        said, "1995 was an unusual year for Polaroid due to two major
        restructurings and the dealer inventory adjustment program.  As a
        result, we expect to reduce the employee population by approximately
        2,500 people worldwide compared to year-end 1994.  We are shifting
        our research resources to projects with the greatest potential and
        consolidating manufacturing operations for increased efficiencies.
        We have taken action to significantly reduce the losses in our new
        digital imaging businesses in 1996.  Finally, we have made major
        changes in our sales and distribution methods in markets around the
        world - inventory adjustment programs in the United States and
        Europe, direct distribution in Japan, increased investments in
        emerging markets, and increased promotional expenses.  All these
        steps will increase profits as we move forward."
        


            For the full year, 1995 worldwide sales decreased three percent
        to $2.24 billion, compared with $2.31 billion in 1994.  U.S. sales
        for the full year 1995 were $1.02 billion, compared with $1.16
        billion for 1994. International sales for the full year 1995 were
        $1.22 billion, compared with $1.15 billion in 1994.  Russia
        continued its impressive growth in 1995, with $196.3 million in
        sales, a 27 percent increase compared with $154.3 million in 1994.
        


             The company sold 5.4 million cameras in 1995, compared with 6.4
        million cameras in 1994, primarily due to lower sales of Captiva
        than in the prior year.  Instant film shipments decreased slightly
        for the full year compared to 1994, reflecting the dealer inventory
        adjustment program in the United States and Europe and a change to
        direct distribution in Japan.
        


             The net loss for the full year 1995 was $140.2 million, or
        $3.09 primary loss per common share, compared with earnings of
        $117.2 million for the full year 1994, or $2.49 primary earnings per
        common share.  The full year 1995 results include special charges
        totaling $247.0 million for the two early retirement and severance
        programs offered in 1995 and other special charges associated with
        the program announced in December 1995.  Excluding these items, the
        full year 1995 primary earnings per common share would have been
        approximately $4.5 per share.
        


             The loss from operations for the full year 1995 was $157.8
        million, compared with an operating profit of $200.3 million in
        1994.  Excluding the special charges for restructuring and other
        expenses of $247.0 million, operating profit for 1995 would have
        been $89.2 million.
        


             Total losses in Polaroid's digital imaging businesses were
        approximately $190 million compared to $180 million in 1994.
        Shipments of the new graphics imaging product, Dry Tech Imagesetting
        Film, began in October 1995, and the company plans to ship a number
        of new products for the graphic arts market in 1996.  Shipments of
        Helios medical imaging systems doubled in 1995, compared to 1994.
        Solid growth continues in the electronic imaging systems business.
        


             For the full year 1995, the effective tax rate was 30 percent,
        versus 27 percent for 1994.  For purposes of determining the after-
        tax special charges, the company applied a statutory tax rate of 35
        percent. The net after-tax foreign currency exchange loss from
        balance sheet translation for the full year 1995 amounted to $.03
        per common share, compared with a $.02 loss for 1994.
        


             Polaroid Corporation, with sales of more than $2.2 billion, is
        the worldwide leader in instant imaging.  Polaroid supplies instant
        photographic cameras and films, conventional cameras and films,
        videotapes and electronic imaging products to markets worldwide,
        including amateur and professional photography, industry, science,
        medicine, government and education.
        



                  POLAROID CORPORATION AND SUBSIDIARY COMPANIES
                  Condensed Consolidated Statement of Earnings
              Periods ended DECEMBER 31, 1995 and DECEMBER 31, 1994
                      (In millions, except per share data)
        
                                        Fourth Quarter          Full Year
                                        1995       1994       1995      1994
        
        Net sales:
         United States                $328.9     $346.9    $1,019.0 $1,160.3
         International                 345.9      339.0     1,217.9  1,152.2
        Total net sales                674.8      685.9     2,236.9  2,312.5
        Cost of sales                  400.4      388.2     1,298.6  1,324.2
        Marketing, research,
         engineering and
         administrative expenses       245.0      213.8       849.1    788.0
        Restructuring and other        170.0        ---       247.0      ---
        Total costs                    815.4      602.0     2,394.7  2,112.2
        Profit/(loss) from operations (140.6)      83.9      (157.8)   200.3
        Other income                    (0.9)       2.0         8.5      7.0
        Interest expense                13.4       13.2        52.1     46.6
        Earnings/(loss) before
         income taxes                 (154.9)      72.7      (201.4)   160.7
        Federal, state and
         foreign income tax
         expense/(benefit)             (43.9)      15.4       (61.2)    43.5
        Net earnings/(loss)          ($111.0)     $57.3     ($140.2)  $117.2
        Primary earnings/(loss) per
         common share                 ($2.44)     $1.23      ($3.09)   $2.49
        Fully diluted earnings
         per common share                 (A)     $1.16          (A)   $2.42
        Cash dividends per
         common share                  $0.15     $0.15        $0.60    $0.60
        Weighted average common shares
         used for primary earnings per
         share calculation
         (in thousands)              45,456(B) 46,590(B) 45,404(B) 46,992(B)
        Common shares outstanding at
         end of period (in thousands) 45,533    45,998    45,533    45,998
        
            (A) Fully diluted earnings per share are not stated because they
        are greater than primary earnings per common share.
        
            (B) The weighted average shares used to calculate primary
        earnings per common share include assumed conversion of options
        outstanding, as appropriate.
        
                   POLAROID CORPORATION AND SUBSIDIARY COMPANIES
                       Supplementary Financial Information
                                 (In millions)
                                                         Fourth Quarter
                                                        1995       1994
        EARNINGS STATEMENT DATA FOR FOREIGN CURRENCY
         EXCHANGE
         After-tax foreign currency exchange
          gain/(loss)                                  ($2.0)     ($4.3)
        
                                                         Twelve Months
                                                        1995       1994
        SELECTED CASH FLOW DATA
         Additions to property, plant, and equipment  $167.9     $146.7
         Depreciation                                 $132.7     $118.2
        
                                                   At End of Fourth Quarter
        BALANCE SHEET                                   1995       1994
         Current Assets:
          Cash and cash equivalents                    $73.3     $143.3
          Short-term investments                         9.8       85.6
          Receivables                                  550.4      541.0
          Inventories:
           Raw materials                               137.2      112.4
           Work-in-process                             233.7      231.2
           Finished goods                              244.6      233.8
            Total inventories                          615.5      577.4
         Prepaid expenses and other assets             208.5      141.4
          Total current assets                       1,457.5    1,488.7
        Net property, plant and equipment              691.0      747.3
        Deferred tax assets                            113.3       80.7
        Total assets                                $2,261.8   $2,316.7
        
        Current liabilities:
         Short-term debt                              $160.4     $117.1
         Current portion of long-term debt              39.7       35.9
         Payables and accruals                         274.9      275.7
         Compensation and benefits                     197.4      121.4
         Federal, state and foreign income
          taxes                                         46.6       51.8
           Total current liabilities                   719.0      601.9
        Long-term debt                                 526.7      566.0
        Accrued postretirement benefits                257.2      247.2
        Accrued postemployment benefits                 41.2       37.2
        Stockholders' equity:
         Common stock, $1 par value                     75.4       75.4
        Additional paid-in capital                     401.9      387.2
        Retained earnings                            1,525.8    1,692.1
        Less: Treasury stock, at cost                1,205.4    1,174.5
              Deferred compensation                     80.0      115.8
        Total stockholders' equity                     717.7      864.4
        Total liabilities and equity                $2,261.8   $2,316.7

        CONTACT: Robert Guenther, 617-386-3112 or guenthrpolaroid.com or
        Nancy Childs, 617-386-3122 or childsnpolaroid.com both of Polaroid/