TCR_Public/960201.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


BANKRUPTCY NEWS FOR FEBRUARY 01, 1996



  1. EGGHEAD ANNOUNCES THIRD-QUARTER RESULTS
  2. TORCHMARK CORPORATION REPORTS 1995 EARNINGS
  3. ZEIGLER REPORTS FOURTH QUARTER, YEAR-END RESULTS
  4. DISCOVERY ZONE MAKES ANNOUNCEMENT
  5. MEDIA ARTS GROUP ANNOUNCES THIRD QUARTER RESULTS
  6. EDISON BROTHERS COMPLETES SALE OF MALL ENTERTAINMENT
    DIVISION

  7. ELTRAX SYSTEMS TO ACQUIRE ASSETS OF APPLIED COMPUTING
    DEVICES




Egghead announces third-quarter results
        


            SPOKANE, Wash. -- Feb. 1, 1996--Egghead Inc.
        (NASDAQ: EGGS) today reported operating results for its fiscal third
        quarter ended Dec. 30, 1995, and the roll-out of its new retail
        stores.  
        


            The company's consolidated revenue for the third quarter of
        fiscal 1996 was $216.4 million, a decrease of 15 percent from the
        $254.3 million in revenue for the same period of fiscal 1995.  Net
        loss for the quarter was $941,000, or 5 cents per share, compared to
        net earnings of $3.8 million, or 22 cents per share, for the same
        period of the previous year.  Net earnings for the third quarter
        last year were boosted by a non-recurring insurance recovery of
        $1.65 million, or 6 cents per share.
        


            For the nine months ended Dec. 30, 1995, the company reported
        consolidated revenue of $582.2 million, a 9 percent decrease from
        the $642.4 million in revenue for the same period of fiscal 1995.
        The net loss for the first nine months of fiscal 1996 was $7.6
        million, compared to net earnings of $1.7 million for the same
        period of the previous year.  

        
            The company's losses during the third quarter and year-to-date
        included approximately $712,000 and $4.3 million, respectively, of
        non-recurring charges to complete the move of its operations to
        Spokane and continue re-engineering the company.  The restructuring
        includes hiring a majority of new staff and management, implementing
        new business and information systems, and the roll-out of Egghead's
        new retail stores.  
   

     
            Comparable store sales for the third quarter of fiscal 1996
        decreased 6.6 percent from the same period last year.  Total retail
        sales for the third quarter were $115.3 million, a decrease of 8
        percent.  The decline in comparable store sales was attributable to
        a poor holiday season for retail and significant disruptions as a
        result of relocating the company's merchandising and advertising
        departments, as well as its Sacramento distribution center.  Total
        retail sales were also adversely effected by a reduction in the
        number of overall stores in full operation to 169, down from 177 in
        the same period last year.  
      

  
            During the third quarter, Egghead rolled out 11 new stores on
        both replacement and new sites, for a total of 12 new stores in
        operation to date.  
        


            "We are extremely excited about the new stores," stated Terry
        Strom, chairman and chief executive officer.  "Our new format is
        easier to shop, better organized and far more comfortable than
        superstores.  It offers all customers a stronger product selection,
        software demonstration stations and more informative signage.  We've
        got a winning 21st-century retail formula.  We plan to keep
        executing and to roll out another eight new stores by April, and
        another 20 during the next fiscal year."  
        


            Corporate, government and educational (CGE) sales for the
        quarter were $94.7 million, a decrease of 19 percent over the same
        period for the previous year.  The decline in CGE sales was
        attributable to the loss of a number of corporate customers as a
        result of the company's relocation.  "In the near term," said Strom,
        "we are tightening CGE's focus on improving outbound telemarketing
        and sales training, and concentrating on higher margin and cross-
        selling opportunities."
        


            "While we are disappointed with our sales performance," noted
        Brian Bender, vice president and chief financial officer, "our
        balance sheet remains strong and we continue to execute our long-
        range plan. The company has current assets of $303 million and no
        long-term debt. We can continue to fund the roll-out of our
        promising new stores and electronic commerce program.
        


            "Despite a soft retail season and disruptions with corporate
        customers, we see positive returns on the relocation and
        restructuring of the company.  Our selling, general and
        administrative expenses have declined 9.5 percent from one year ago
        and we expect to achieve even greater efficiencies in the coming
        periods."  
        


            Egghead Inc. is a leading retailer of computer software and
        accessories, with 169 retail stores located throughout North
        America.  The company also serves businesses, government agencies
        and educational institutions through a field sales force.  Its
        corporate staff and call center are headquartered in Spokane.
        ELEKOM is a subsidiary of Egghead developing on-line commerce and
        procurement systems.

        
                             Consolidated Statements of Operations
                          (Amounts in thousands, except per share data)
        
                                  13 Weeks Ended        39 Weeks Ended
                                   (unaudited)            (unaudited)
                                Dec. 30,  Dec. 31,    Dec. 30,  Dec. 31,
                                  1995     1994         1995     1994
                                                  
        Net sales                  $216,364  $254,283    $582,216  $642,442
        
        Cost of sales, including
         certain buying, occupancy,
         and distribution costs     193,085   222,444     519,933   566,061
        
        Gross margin                 23,279    31,839      62,283    76,381
        
        Selling, general, and
         administrative expense      22,808    25,210      69,164    68,461
        
        Depreciation and amortization
         expense, net of amounts
         included in cost of sales    2,436     2,236       7,228     7,000
        
        Operating income (loss)      (1,965)    4,393     (14,109)      920
        
        Theft insurance recovery          0     1,650           0     1,650
        
        Other income (expense):
         Interest income                358       168       1,949       506
         Interest expense               (37)      (16)        (74)      (27)
         Other, net                      84        55        (253)     (206)
        
        Income (loss) before
         income taxes                (1,560)    6,250     (12,487)    2,843
        
        Income tax (provision)
         benefit                        619    (2,437)      4,870    (1,109)
        
        Net income (loss)          $   (941) $  3,813    $ (7,617) $  1,734
        
        Earnings (loss) per share  (5 cents) 22 cents   (44 cents) 10 cents
        
        Weighted average common shares
         and common equivalent shares
         outstanding                 17,541    17,380      17,401    17,231
        
                        Egghead Inc. and Subsidiaries
                         Consolidated Balance Sheets
                           (Dollars in thousands)
        
                                            Dec. 30,   Dec. 31,
                                              1995       1994
                                                (unaudited)
        
        ASSETS
        Current assets:
          Cash and cash equivalents            $ 16,408     $ 24,323
          Accounts receivable, net of
           allowance for doubtful accounts      101,764       91,983
          Merchandise inventories               169,581      168,323
          Prepaid expenses and other
           current assets                         8,686        3,429
          Current deferred income taxes           6,760        7,077
         Total current assets               303,199      295,135
        Property and equipment, net              30,345       21,269
        Non-current deferred income taxes         2,918        3,320
        Other assets                              1,876        2,244
                                           $338,338     $321,968
        
        LIABILITIES AND SHAREHOLDERS' EQUITY
        Current liabilities:
          Notes payable to banks               $     --     $     --
          Accounts payable                      172,975      149,810
          Accrued liabilities                    21,042       24,256
          Income taxes payable                       --          605
          Current portion of capital
           lease obligations                        262          292
         Total current liabilities          194,279      174,963
        Capital lease obligations, less
         current portion                            355          153
        Deferred rent                             1,267        1,421
         Total liabilities                  195,901      176,537
        
        Commitments and contingencies
        
        Shareholders' equity:
          Common stock, 1 cent par value:
           50 million shares authorized;
           17,543,072 and 17,166,031 shares
           issued and outstanding, respectively     175          172
          Additional paid-in capital            124,082      120,572
          Retained earnings                      18,180       24,687
         Total shareholders' equity         142,437      145,431
                                           $338,338     $321,968
        
        CONTACT:  Egghead Inc., Spokane
                  Brian Bender, 509/891-4851
                           or
                  Fi.Comm Ltd.
                  Michael Newman, 800/790-0569
      
        


TORCHMARK CORPORATION REPORTS 1995 EARNINGS

        
            BIRMINGHAM, Ala., Feb. 1, 1996 - Torchmark Corporation
        (NYSE: TMK) announced today that it is exploring a strategic
        restructuring that could include dividing Torchmark into separate
        publicly-traded operating companies.  R. K. Richey, Chairman and
        CEO, said that "the current operating environment has led us to
        conclude that this may be the best way to maximize shareholder
        value."  The investment banking firm of Morgan Stanley has been
        engaged as Torchmark's financial advisor for this purpose.

        
            Torchmark also reported that in addition to its previously
        announced plans to sell Torch Energy Advisors, it has decided to
        dispose of its Black Warrior investment and to account for both as a
        discontinued operation, thus modifying the presentation of its
        financial results in 1995 and prior periods to set forth separately
        the results attributable to the discontinued energy segment.  Black
        Warrior was written down in the fourth quarter of 1995 to its
        estimated realizable value concurrent with Torchmark's decision to
        dispose of its energy segment.  The writedown was primarily due to
        disappointments in obtaining significant gas production from lower
        coal seams.  An after-tax charge of $130 million, or $1.82 per share
        for Black Warrior is included in loss from discontinued operations.

        
            1995's net operating income from continuing operations was $3.93
        per share, up 5% from $3.74 in 1994 (as modified to reflect
        discontinued operations).  The fourth quarter's net operating income
        from continuing operations was $1.03 per share, up 13% from $.91 (as
        modified) in 1994's comparable period.
   

     
            1995's net loss from discontinued operations was $1.80 per
        share, compared to $.07 of income in 1994 (as modified).  The fourth
        quarter's net operating loss from discontinued operations was $1.84
        per share, versus $0.02 of income (as modified) in 1994's comparable
        period.
      

  
            1995's operating income before adjustment for discontinued
        operations and the writedown of Black Warrior was $3.95 per share,
        up 4% from $3.81 in 1994.  The fourth quarter's operating income per
        share from continued and discontinued operations was $1.01 per
        share, up 9% from $.93 in the same period in 1994.

        
            1995's net income, which includes the income or loss from
        discontinued operations, realized investment losses, and the related
        adjustment to deferred policy acquisition costs, was $143 million,
        or $2.00 per share, versus $269 million, or $3.72 per share, last
        year.  The fourth quarter's net loss was $56 million, or $.79 per
        share, compared to $64 million of income, or $.89 per share, last
        year.  Net of acquisition costs, American Income's contribution to
        net income was $.24 per share for 1995 and $.06 per share for the
        fourth quarter.
   

     
            Pre-tax operating income from insurance operations (excluding
        Liberty's litigation) increased 15% to $486 million, led by American
        Income, Globe and United Investors:
      

  
                                Dollars in Millions
                                              Excluding American Income
                  Twelve         Twelve        Twelve         Twelve
                  Months  % of   Months  % of  Months % Of    Months % Of
                   1995  Premium  1994 Premium  1995 Premium  1994  Premium
        Underwriting
         income before
         administrative
         expenses
          Life     $212.1  27.5   $166.8  27.7   $165.6  26.8  $160.2 27.6
          Health    150.4  19.9    148.9  19.2    135.5  19.0   146.5 19.1
          Annuity    12.5            9.4           12.5           9.4
                    374.9          325.1          313.5         316.1
        
        Other income  3.1            3.8            3.1           3.8
        Administrative
         expenses
         excluding
         Liberty's
         litigation (98.8) (6.4)   (86.3) (6.2)   (90.5)  (6.7) (85.0)(6.2)
        Underwriting
         income excluding
         Liberty's
         litigation  279.2         242.6          226.1         234.9
        Net Investment
         Income      396.2         346.8          356.6         340.9
        Required
         investment
         income on
         net
         liabilities (189.8)      (165.8)        (176.1)       (163.8)
        Pre-tax operating
         income from
         insurance
         operations
         excluding
         Liberty's
         litigation  $485.7       $423.6        $406.6        $412.0
        
            Excluding American Income, underwriting income declined due to
        lower health insurance premiums ($714 million versus $767 million).
        
            The following chart illustrates Torchmark's emphasis on life
        insurance, where life insurance sales were up $68 million, or $45%,
        to $218 million (sales were up $24 million, or 17%, excluding
        American Income) and life annualized premium in force was up $72
        million, or 9%, to $869 million:
        
                                       Dollars in Millions
                           Premium Issued               Premium In Force
                           Twelve     Twelve          At     At
                           Months     Months  %   Year End  Year End   %
                            1996       1994 Change  1995      1994   Change
        Direct response     $63.9      $48.3    23   $180.5    $154.1  17
        American Income
         Agency              51.2        7.4   592    169.6     147.0  15
        United American
         Agencies            26.2       11.6   125     49.8      39.1  27
        Liberty National
         Home Service        48.5       51.5    (6)   297.4     291.8   2
        United Investors
         Agency              10.6        8.7    22     78.7      73.1   8
        Other                17.6       22.3   (21)    93.4      91.9   2
                           $218.0     $149.8    45   $869.4    $797.0   9

        
            Health insurance sales were $103 million, down 15% (23%
        excluding the effect of the purchase of American Income).  Medicare
        Supplement sales decreased 26% to $65 million.  Health insurance
        annualized premium in force was $755 million, down 7% from a year
        ago.
      

  
            Life premiums grew 28% to $772 million.  Health premiums were
        $755 million, down 2%.  Total revenue increased 10% to $2.1 billion.
        Adjusting for the purchase of American Income and the classification
        of the energy operations as discontinued, life premiums were $618
        million, up 7%, health premiums were $714 million, down 7%, and
        total revenue was flat at $1.8 billion.

        
            Total investment income, excluding that from American Income,
        was even with last year.  This was due to growth in invested assets
        and portfolio restructuring, offset by a decline in new money rates.
   

     
            Pre-tax litigation costs at Liberty National were $12 million,
        or $.17 per share, for the year and $4 million, or $.06 per share,
        in the fourth quarter.  There is no discernible trend upon which to
        predict future litigation amounts.  Currently, there are 170 cases
        (excluding stayed cancer cases) pending in Alabama which seek
        punitive damages.  In December, the Alabama Supreme Court
        unanimously affirmed the previously reported settlement in the
        Robertson cancer policy class action lawsuit. A petition for
        rehearing has been filed in the case.

        
            Noninsurance pre-tax operating income grew 12% to $91 million
        due to increased investment management fees in Waddell and Reed.
        For the quarter, Waddell and Reed's pre-tax operating income
        increased 25% from the year-ago period to $25 million.  Investment
        product collections were even with last year at $1.2 billion.
        Fourth quarter collections were $354 million, up 20% from the third
        quarter and up 39% from 1994's fourth quarter.  Total assets under
        management increased 26% to $18.3 billion.
   

     
            Return on equity (excluding the effect of SFAS 115 and
        discontinued operations) was 18.5% versus 19.7% last year.  Total
        assets at December 31, which includes net assets in discontinued
        operations of $156 million, were $9.3 billion and shareholders'
        equity was $1.6 billion. Book value per share was $22.17 ($20.33
        excluding the effect of SFAS 115).
      


        /CONTACT:  Lee Bartlett of Torchmark Corporation, 205-325-4204/



ZEIGLER REPORTS FOURTH QUARTER, YEAR-END RESULTS

        
            FAIRVIEW HEIGHTS, Ill., Feb. 1, 1996 - Zeigler Coal
        Holding Company (NYSE: ZEI) today released the following:
        



                                     Financial Summary Table
                               (In millions, except per share data)
                               Quarter Ending          Twelve Months
                             12/31/95  12/31/94     12/31/95    12/31/94
                              (Unaudited)                (Unaudited)
        
        Tons Sold                9.0      9.2          36.9        40.0
        Total Revenues        $191.6   $196.6        $784.1     $ 870.9
        
        Net Income (loss)      (50.8)     6.5         (11.2)       25.1
        Net Income before
         Special Items..         13.3     11.4          43.1        38.6
        Earnings (loss)
         Per Share             (1.79)     .23         (.40)        1.01
        Earnings Per Share
         before Special Items..   .47      .40          1.52        1.55
        
        EBITDA before
         Special Items....        41.1     45.1         152.8       167.4
        EBITDA Per Share
         before Special
         Items....                1.45     1.59          5.38        6.72

      


            Zeigler Coal Holding Company today reported net income of $43.1
        million, or $1.52 per share, for the year ended December 31, 1995,
        excluding special items that materially impacted results.
   

     
            Excluding non-cash special items (after taxes) consisting of a
        $61.8 million charge for asset impairments and a $2.3 million charge
        for the quarterly SAU revaluation, Zeigler's fourth quarter net
        income was $13.3
      

  
        million, or 47 cents per share, on 28.4 million shares.  In the same
        quarter last year, net income before a charge for debt prepayment of
        $8.4 million and a benefit from the SAU revaluation of $3.5 million,
        was $11.4 million, or 40 cents per share, on 28.4 million shares.
        


            Including special items for the full year, Zeigler reported a
        loss of $11.2 million, or 40 cents per share, on 28.4 million
        shares, versus income in 1994 of $25.1 million, or $1.01 per share,
        on 24.9 million shares.  For the quarter, Zeigler's loss of $50.8
        million, or $1.79 per share, compared with 1994 earnings of $6.5
        million, or 23 cents per share.

        
            In the fourth quarter, the company adopted the provisions of
        Statement of Financial Accounting Standards (SFAS) No. 121,
        "Accounting for the Impairment of Long-Lived Assets and for Long-
        Lived Assets to be Disposed Of."  This adoption, along with other
        associated mine closing costs, resulted in a fourth quarter 1995
        after-tax charge to earnings of $61.8 million, or $2.18 per share.
        This includes a $36.8 million charge primarily related to three Old
        Ben Coal Company operations in Southern Illinois that are expected
        to close or become idle in 1996.  It also includes an additional $25
        million charge related to asset write-downs and accelerated accruals
        at Wolf Creek Collieries Company in Eastern Kentucky, which was
        idled on October 1, 1995.  For the year, the company also recognized
        a second quarter gain of $9.9 million, or 35 cents per share, on
        settlement of a contract dispute with SIGECO.

        
            Fourth quarter revenues totaled $191.6 million, compared to
        $196.6 million in 1994, a 2.5% decrease.  For the year, total
        revenues were $784.1 million, compared to $870.9 million in 1994.
   

     
        Better-performing coal assets point to positive future

      
        For the fourth quarter, coal revenues totaled $184.2 million,
        down 4% from the fourth quarter of 1994.  Coal revenue for the year
        was $754.5 million, down 11% from 1994.
        


            Average production costs of $16.67 per ton in the second half of
        1995 showed a 9% improvement from first half costs, largely
        resulting from the company's strategies to reduce exposure to
        uncommitted high-sulfur coal and to close the Wolf Creek mine.
        Average production costs per ton for the year decreased 42 cents
        (2%) from $17.94 in 1994 to $17.52 in 1995. Reductions were driven
        mainly by a larger percentage of overall production from lower-cost
        Powder River Basin coal; aggressive liability management; and
        operating improvements at certain operations in the Midwest and
        Appalachia.

        
            According to Zeigler President and Chief Executive Officer Chand
        B. Vyas, "I am pleased with our performance in 1995, following a
        first half that was marred by poor market conditions, particularly
        in the Midwest, and higher costs associated with the Wolf Creek
        mine.  1995 was an important transition year, and in the second half
        we made the difficult but necessary decisions to idle Wolf Creek and
        close or idle four Illinois Basin mines.  This will reduce exposure
        to low-margin sales in the spot market, enhance our cost-reduction
        efforts and allow us to operate in areas where we can earn an
        improved return on our investment."
   

     
            In particular, major areas of improvement targeted in 1996
        include: 1) increased productivity at certain Appalachian
        operations, 2) improved profitability from coal sales previously
        supplied by Wolf Creek Collieries Company, 3) enhanced returns in
        the Midwest as the company increases its mix of committed, higher-
        margin sales, and 4) reinvestment of cash flows to higher-margin
        businesses.
      

  
        Non-mining contributions dramatically increase in 1995
        


    Non-mining revenues climbed $2.2 million, or 42%, in the fourth
        quarter.  For the year, non-mining revenues rose $8.1 million, or
        38%, primarily due to a continued increase in the export terminal
        business resulting from rising global demand for U.S. coal.  Other
        non-mining improvements included increased contributions from the
        ENCOAL clean coal plant, gains due to continued pruning of non-
        performing surplus assets, increased farm and timber income and
        higher coal leaseouts. Non-mining earnings before interest and taxes
        totaled $9.2 million, more than quadrupling the company's 1994
        performance.
        


            "Our non-mining businesses had an outstanding year in 1995,
        which resulted from our strategic moves last year to manage these
        assets as core businesses," said Vyas.  "These non-mining
        businesses, together with greater contributions from our improved
        coal properties and a sharpened focus on marketing and new business
        development, give me great optimism for a very strong earnings
        performance in 1996 and beyond."

        
            Zeigler's SG&A expenses for the year increased $4.1 million,
        primarily relating to increased legal costs associated with contract
        disputes and the settlement of a lawsuit involving Zeigler
        subsidiaries and Alma Land Company, as well as the incremental costs
        of operating as a public company.
   

     
        Strong cash flow leads to 1995 debt reduction of $105.3 million
      


       Zeigler continued to demonstrate its strong cash-generating
        ability in 1995, experiencing record cash flow from operating
        activities of $171.4 million.  Even after excluding the after-tax
        proceeds from the contract settlement with SIGECO, cash flow from
        operating activities established a new high for the company.
        Excluding special items in both years, earnings before interest,
        taxes, depreciation, depletion and amortization (EBITDA) totaled
        $152.8 million in 1995, compared with $167.4 million in 1994.

        
            Operating cash flow was used to pay down $13 million in long-
        term debt in the fourth quarter.  Since the end of 1994, the company
        reduced long- term debt by $105.3 million and experienced $14.7
        million in lower interest expense for the year.
   

     
            Zeigler expands focus on acquisitions, new business development
        beyond coal
      

  
            "Over the past few years, we have completed a dramatic
        transformation of our company from what was essentially a high-
        sulfur coal producer to a company with an overwhelming low-sulfur
        profile," said Vyas.  "In 1996, our reputation as a nimble, action-
        oriented company continues as we explore consistent, sustainable
        growth and high-return opportunities."

        
            To further capitalize on these opportunities, Vyas said the
        company is putting the finishing touches on a corporate
        reorganization whereby the company has reorganized its core
        corporate services staff and created three distinct growth units:
        Coal, Non-Mining, and Marketing/New Business Development.
   

     
            Vyas said these growth units will be primarily responsible for
        enabling the company to meet its goals of consistent, sustainable
        growth through a major multi-pronged effort to:  1) increase the
        revenue and earnings contribution from coal mining businesses; 2)
        continue to boost contributions from non-mining operations; and 3)
        capitalize on new opportunities in coal and related industries where
        Zeigler can best leverage its existing resources and skills.
      

  
            "Zeigler has succeeded to date not only because we excel at coal
        mining and marketing, but because we manage our businesses as
        shareholders who understand the need to create value," said Vyas.
        "Moving forward, the company is exploring various opportunities both
        domestically and overseas within mining, power and other industries
        where Zeigler can position itself in higher value-adding segments,
        improve returns on investment, reduce earnings volatility and maintain
consistent growth and higher valuation for Zeigler shareholders."
        


            Zeigler, headquartered in the metropolitan St. Louis area,
        controls more than 1.3 billion tons of economically recoverable coal
        reserves, including 1 billion tons of low sulfur and compliance
        coal.  The Zeigler family of companies currently operates 11
        underground and surface coal mining complexes, located in Illinois,
        Kentucky, Ohio, West Virginia and Wyoming, which mine primarily
        steam coal.  Industry-wide, steam coal is used to produce
        approximately 56 percent of the nation's electrical power. In
        addition, Zeigler subsidiaries own and operate import/export
        terminals in Virginia and South Carolina and the ENCOAL clean coal
        technology plant in Wyoming.

        
                           ZEIGLER COAL HOLDING COMPANY
           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
                    Three and Twelve Months Ended December 31,
                       (In millions, except per share data)
        
                                 Three Months Ended     Twelve Months Ended
                                     December 31,           December 31,
                                  1995        1994       1995         1994
        REVENUES:
        Coal sales             $ 184.2      $ 191.4     $ 754.5     $ 849.4
        Other revenues             7.4          5.2        29.6        21.5
          Total revenues         191.6        196.6       784.1       870.9
        
        COSTS AND EXPENSES:
        Cost of coal sales       139.6        140.9       594.1       667.0
        Selling, general and
         administrative expenses   7.8          6.8        24.1        20.0
        Revaluation of stock
         appreciation units        2.9         (4.7)        3.2         8.8
        Depreciation, depletion
         and other amortization   17.1         17.6        68.6        69.4
        Provision for asset
         impairment               82.4           --        82.4          --
        Other costs and expenses   3.1          3.8        13.1        16.5
        
          Total costs and
           expenses              252.9        164.4       785.5       781.7
        
        OTHER INCOME:
        Gain on contract
         settlement                 --           --        13.2          --
        
        EARNINGS BEFORE
         INTEREST & TAXES        (61.3)        32.2        11.8        89.2
        
        INTEREST INCOME (EXPENSE):
        Interest on borrowings    (6.1)        (8.9)      (27.1)     (39.3)
        Amortization of deferred
         financing costs           (.2)         (.3)        (.8)      (4.7)
        Interest income             .1           .7          .4        1.8
        Net interest expense      (6.2)        (8.5)      (27.5)     (42.2)
        
        INCOME (LOSS) BEFORE
         INCOME TAXES AND
         EXTRAORDINARY ITEM      (67.5)        23.7       (15.7)      47.0
        
        INCOME TAXES (BENEFIT)   (16.7)         8.8        (4.5)      13.5
        INCOME (LOSS) BEFORE
          EXTRAORDINARY ITEM   $ (50.8)        14.9       (11.2)      33.5
        
        EXTRAORDINARY ITEM:
         Early extinguishment
         of debt, net of tax        --         (8.4)         --       (8.4)
        
        NET INCOME (LOSS)      $ (50.8)     $   6.5    $  (11.2)   $  25.1
        
        WEIGHTED AVERAGE
         SHARES OUTSTANDING       28.4         28.4        28.4       24.9
        
        NET INCOME (LOSS)
         PER COMMON SHARE
        Income before
         extraordinary item    $ (1.79)     $   0.53   $  (0.40)   $   1.35
        Extraordinary Item          --         (0.30)        --      (0.34)
        Net income (loss)      $ ( 1.79)    $   0.23   $  (0.40)   $   1.01
        
                           ZEIGLER COAL HOLDING COMPANY
                CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
                         (In millions, except share data)
        
                                             December 31,      December 31,
                                               1995               1994
        
        ASSETS
        CURRENT ASSETS:
          Cash and cash equivalents        $   23.3            $  15.6
          Receivables:
          Trade accounts receivable
          (net of allowances of
          $2.6 and $13.4)                      67.2               84.8
        Other receivables                       4.9                3.2
        
          Total receivables                    72.1               88.0
        
        Inventories:
         Coal work in process                   7.3                9.1
         Coal finished goods                   20.1               25.4
         Mine supplies                         23.0               31.6
          Total inventories                    50.4               66.1
        
        Income taxes receivable                  --                 .9
        Deferred income taxes                   8.4               16.1
        Other current assets                    3.4                4.5
          Total current assets                157.6              191.2
        
        PROPERTY, PLANT AND EQUIPMENT:
          Land and mineral rights             633.1              664.3
          Prepaid royalties                    21.3               25.9
          Plant and equipment                 506.9              514.4
        Total at cost                       1,161.3            1,204.6
         Less - accumulated depreciation,
         depletion and amortization          (302.7)            (251.2)
        
        Property, plant and equipment, net    858.6              953.4
        
        OTHER ASSETS:
         Prepaid pension expense                9.5               12.5
         Deferred financing costs, net          2.7                3.3
         Other long-term assets                 7.0                5.1
           Total other assets                  19.2               20.9
        
        TOTAL ASSETS                      $ 1,035.4          $ 1,165.5
        
                           ZEIGLER COAL HOLDING COMPANY
                CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
                       (In millions, except per share data)
        
                                            December 31,      December 31,
                                               1995               1994
        
        LIABILITIES AND STOCKHOLDERS' EQUITY
        
        CURRENT LIABILITIES:
         Accounts payable - trade        $     56.2         $     51.8
         Dividends payable                      1.4                1.4
         Income taxes payable                   2.3                 --
         Other taxes payable                   24.0               22.7
         Accrued payroll and
          related benefits                     24.0               29.4
         Other accrued expenses                19.8               18.3
        
           Total current liabilities          127.7              123.6
        
        LONG - TERM DEBT                      344.8              450.1
        
        ACCRUED POSTRETIREMENT BENEFIT
         OBLIGATIONS                          255.8              252.5
        
        ACCRUED PNEUMOCONIOSIS BENEFITS        49.4               73.2
        
        ACCRUED MINE CLOSING COSTS            105.7               87.3
        
        DEFERRED INCOME TAXES                    --               22.5
        
        OTHER LONG - TERM LIABILITIES          70.5               57.9
        
        COMMITMENTS and CONTINGENCIES            --                 --
        
          Total liabilities                   953.9            1,067.1
        
        STOCKHOLDERS' EQUITY:
          Common stock - $0.01 par value -
           50,000,000 shares authorized;
           28,355,616 shares issued and
           outstanding at December 31, 1995
           and 1994                              .3                 .3
          Capital in excess of par value       71.9               71.9
          Retained earnings                     9.3               26.2
        
            Total stockholders' equity         81.5               98.4
        
        TOTAL LIABILITIES AND
         STOCKHOLDERS' EQUITY             $ 1,035.4          $ 1,165.5
        
                           ZEIGLER COAL HOLDING COMPANY
           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                         Twelve Months Ended December 31,
                                  (In millions)
        
                                                      1995             1994
        CASH FLOWS FROM OPERATING ACTIVITIES:
        Net Income (loss)                          $ (11.2)          $ 25.1
        Adjustments for differences between
         income flows and cash flows from
         operating activities:
           Extraordinary item, early debt
            extinguishment                              --              7.3
           Depreciation, depletion and other
            amortization                              68.6             69.4
           Amortization of deferred financing costs     .8              4.7
           Mine closing costs                         (9.7)          (17.5)
           Provision for asset impairments            82.4              --
           Proceeds from contract settlement          45.5              --
           Net gain on contract settlement           (13.2)             --
           Postretirement benefits                     3.3             12.9
           Pneumoconiosis benefits                   (23.8)           (5.2)
           Workers' compensation                       8.9              4.3
           Stock appreciation units                    2.5              8.4
           Deferred income taxes -
            noncurrent portion                       (22.4)             7.1
           Other noncash items                         2.2            (2.0)
           Changes in working capital:
            (Increase) decrease in receivables        15.6           (11.9)
            Decrease in income taxes receivable         .9              6.5
            (Increase) decrease in inventories         7.8           (11.7)
            (Increase) decrease in other
              current assets                           9.1            (1.9)
            Increase in accounts payable - trade       4.4              3.2
            Decrease in deferred revenue                --             (.8)
            Decrease in accrued expenses and other
             current liabilities                       (.3)           (6.8)
            (Increase) decrease in working capital    37.5           (23.4)
            Total adjustments to net income          182.6             66.0
            Net cash provided by
             operating activities                    171.4             91.1
        
        CASH FLOWS FROM INVESTING ACTIVITIES:
          Additions to property, plant,
           and equipment                             (56.3)          (45.6)
          Proceeds from sales of property,
           plant and equipment                         3.6              4.0
            Net cash used in investing activities    (52.7)          (41.6)
        
        CASH FLOWS FROM FINANCING ACTIVITIES:
          Net proceeds from public offering
           of common stock                              --             68.6
        
          Payment of debt acquisition costs             --             (.6)
          Net repayments of long-term debt          (105.3)         (164.8)
          Payment of dividends                        (5.7)              --
           Net cash used in financing activities    (111.0)          (96.8)
        
        NET INCREASE (DECREASE) IN CASH AND
         CASH EQUIVALENTS                              7.7           (47.3)
        
        CASH AND CASH EQUIVALENTS, BEGINNING          15.6             62.9
        
        CASH AND CASH EQUIVALENTS, ENDING          $  23.3          $  15.6
        
                           ZEIGLER COAL HOLDING COMPANY
                        KEY STATISTICAL DATA  (UNAUDITED)
                    Three and Twelve Months Ended December 31,
                        (In millions, except per ton data)
        
                                 Three Months Ended     Twelve Months Ended
                             Dec 31,  Sept 30,   Dec 31,     December 31,
                              1995     1995       1994    1995         1994
        
        SALES VOLUME (tons):
         Appalachia Mines      3.2      3.1        3.3    13.2        14.4
         Midwest Mines         2.4      2.8        3.0    10.7        12.8
         Powder River Basin    2.9      3.2        2.6    11.5        10.9
         Purchased Coal        0.5      0.5        0.3     1.5         1.9
        
           Total               9.0      9.6        9.2    36.9        40.0
        
        AVERAGE PRICE PER TON SOLD:
         Appalachia Mines   $ 34.23  $ 34.48    $ 32.66 $ 33.79     $ 32.47
         Midwest Mines        19.46    18.74      20.99   19.60       21.49
         Powder River Basin    4.71     5.12       4.77    5.07        4.97
         Purchased Coal       27.63    29.49      27.02   28.29       27.39
        
           Average          $ 20.51  $ 19.84    $ 20.72 $ 20.47     $ 21.22
        
        PRODUCTION VOLUME (tons):
         Appalachia Mines      2.9      3.3        3.6    12.9        14.3
         Midwest Mines         2.4      2.2        3.1    10.6        13.2
         Powder River Basin    2.9      3.3        2.7    11.6        11.0
        
           Total               8.2      8.8        9.4    35.1        38.5
        
        AVERAGE PRODUCTION COST PER TON:
         Appalachia Mines   $ 27.86  $ 29.00    $ 28.11 $ 28.70     $ 28.03
         Midwest Mines        16.23    19.24      16.22   18.23       18.34
         Powder River Basin    4.33     4.41       3.96    4.49        4.24
        
           Average          $ 16.24  $ 17.20    $ 17.18 $ 17.52     $ 17.94


        CONTACT:  Vic Svec, 618-394-2430, or Jacqueline E. Burwitz,
        618-394-2570, both of Zeigler Coal Holding Company


DISCOVERY ZONE MAKES ANNOUNCEMENT


        FORT LAUDERDALE, Fla., Feb. 1, 1996 -- Discovery Zone, Inc.
        (Nasdaq: ZONE) announced today that in light of a disappointing
        operating performance in January, it is uncertain whether a
        renegotiation of its credit facility can be achieved.  As previously
        disclosed, the company has been in discussions with lenders
        regarding its credit facility. The company said it now believes that
        such credit facility would need to be significantly greater than the
        amount previously negotiated with its lenders.  As a result the
        company is considering all alternatives to meet its cash
        requirements, including a reorganization under Chapter 11 of the
        United States Bankruptcy Code, to allow it to access additional
        working capital and restructure its indebtedness. The company is
        continuing discussions with its lenders. Discovery Zone said that
        since the change in operating management last April, it has achieved
        significant corporate overhead reductions and substantially improved
        the quality of operations.  Despite this progress, the company said
        it is unlikely that it will be able to generate sufficient cash
        flows from operations to remain viable in the long term, unless it
        can reduce its debt burden, lower its interest expense, and improve
        its operating cost structure.  Such improvements would require
        closing a number of unprofitable locations and renegotiating
        unfavorable existing leases. Steven R. Berrard, chief executive
        officer of Discovery Zone, stated, "Discovery Zone remains the
        leading player in the industry with a strong core operation.  We are
        optimistic that we will find a solution to achieve a solid and
        sustainable business." Discovery Zone is the leading operator of
        children's indoor entertainment and fitness facilities, with 330
        facilities in 34 states.



MEDIA ARTS GROUP ANNOUNCES THIRD QUARTER RESULTS

        
            SAN JOSE, Calif., Feb. 1, 1996 - Media Arts Group, Inc.
        (Nasdaq: ARTS) announced today results for the fiscal third quarter
        and nine months ended December 31, 1995.
        


            Media Arts Group, Inc., posted revenues of $15,044,000 for the
        recent quarter, a 10% gain in comparison to $13,727,000 in revenues
        for the same period last year.  Net income for the recent quarter
        was $826,000 or $0.09 per share representing a 5% increase in
        comparison to income before discontinued operations and
        extraordinary items of $785,000 or $0.08 per share for the third
        quarter a year ago.  The recent quarter included non-recurring
        expenses of $190,000 (before tax effect) for severance benefits
        related to the company's continuing efforts to reduce operating
        expenses.
        


            For the nine-month period ended December 31, 1995, revenue
        decreased by 2% to $39,636,000 compared to revenue of $40,636,000
        for the same period in 1994.  The company reported a net loss of
        $152,000 or ($0.02) per share for the nine months compared to income
        before discontinued operations and extraordinary items of $3,845,000
        or $0.44 per share for the comparable nine-month period last year.
        Included in net income for the recent nine-month period were non-
        recurring expenses of $790,000 (before tax effect) for costs related
        to reduction in headcount and the restructuring of the company's
        independent sales force to an in-house sales force.  Included in net
        income for the nine-month period last year were non-recurring
        deferred tax credits of $638,000.

        
            Revenues for the third quarter were $15,044,000, an increase of
        $3,412,000 or 29% compared to revenues of $11,632,000 in the second
        quarter.  Third quarter gross profit was up 38%, or $2,462,000 from
        $6,399,000 to $8,861,000 and operating expenses were down
        approximately 11%, or $800,000 compared to the previous quarter this
        year.
   

     
            "We believe that our growth in sales this quarter over the third
        quarter a year ago reflects the continued demand for Thomas Kinkade
        products and the advantages of our move to an in-house sales force,"
        said Ken Raasch, chairman and chief executive officer of Media Arts
        Group.  "We also remain optimistic about the potential impact of our
        new products, although the Company has not yet seen the effect."

        
            Sales of Thomas Kinkade products for the recent quarter
        (excluding sales by Thomas Kinkade Stores) were $8,367,000,
        representing an increase of $3,389,000 or 68% as compared to
        revenues of $4,978,000 for the previous quarter this year, and an
        increase of $1,394,000 or 20% as compared to revenues of $6,973,000
        for the same period a year ago. Sales for Thomas Kinkade Stores for
        the recent quarter were $3,101,000 an increase of $988,000 or 47%
        compared to the previous quarter and an increase of $539,000 or 29%
        compared to the same period last year (excluding sales of galleries
        acquired in the current year).  "We continue to see the demand
        increase for Thomas Kinkade products evidenced by our growth in
        sales in Thomas Kinkade Stores," said Raasch. "We are enthusiastic
        about plans for expanding the store concept as it is an important
        part of our comprehensive strategy to continue to increase brand
        name awareness and sales of Kinkade's products."

        
            The company expects to continue its efforts, begun in September
        1995, to reduce expenses in various areas including staffing,
        facilities and manufacturing.  The majority of the company's cost
        reduction efforts have been focused on the operations of John Hine
        Limited.  For the recent quarter, sales of John Hine Limited
        products were down 30% as compared to the same period a year ago.
        The company is currently implementing steps intended to return John
        Hine Limited to profitability and is evaluating goodwill writedowns
        and restructuring alternatives available to the U.K. subsidiary.
        "We will continue to seek operational efficiencies throughout the
        Company," stated Raasch.
   

     
            The company has experienced covenant defaults in its financing
        agreements with senior and senior subordinated lenders.  The company
        is in discussions with senior and senior subordinated lenders
        regarding those matters.

        
            Based in San Jose, Media Arts Group, Inc., designs,
        manufactures, distributes and licenses gifts, collectibles, and home
        decor accessories based on exclusive licenses and brand names,
        through its four subsidiaries:  Lightpost Publishing, John Hine
        Limited, Thomas Kinkade Stores and MAGI Entertainment Products.
        Media Arts Group products are sold through more than 4,500
        independently-owned stores and stores and galleries worldwide.
   


        CONTACT:  Sue Edstrom of Media Arts group, 408-947-4680; or Wayne
        Brown or Sheila Whitman of Carl Thompson Associates, 303-494-5472



EDISON BROTHERS COMPLETES SALE OF MALL ENTERTAINMENT DIVISION
        


            ST. LOUIS, Feb. 1, 1996 - Edison
Brothers Stores Inc.

        said today that it completed the sale of its mall entertainment
        division to Namco Cybertainment, a wholly owned subsidiary of Namco
        Ltd., of Tokyo, Japan.  Edison Brothers received approval of the
        previously announced sale Tuesday from the U.S. Bankruptcy Court in
        Wilmington, Del.
        


            The sale included selected assets and stores of Edison Brothers
        Mall Entertainment and Horizon Entertainment, which operated 128
        game rooms and larger entertainment centers.  Namco will now operate
        105 of these units.
        


            "The completion of this sale is a turning point for the
        company," Senior Executive Vice President Peter Edison said.  "It
        signals the company's return to our core footwear and apparel
        businesses.  The sale will enable us to move forward with the
        company's other restructuring initiatives."
        


            Edison Brothers Stores Inc. filed for voluntary reorganization
        under Chapter 11 on November 3, 1995.  The company operates
        approximately 2,000 apparel and footwear specialty stores
        nationwide.
        


        CONTACT:  David B. Cooper, Jr., Chief Financial Officer, 314-331-
        6531 or Amy Calvin, Communications, 314-331-7996, both for Edison
        Brothers



Eltrax Systems Inc. announces Letter of Intent to acquire assets of
Applied Computing Devices Inc. (ACD),through bankruptcy proceeding
        


            ST. PAUL, Minn. -- Feb. 1, 1996 -- Eltrax Systems Inc., a
developer and marketer of patient card systems for the
        health care industry announces the signing of a Letter of Intent for
        Eltrax to acquire substantially all of the assets of href="chap11.applied.html">Applied Computing Devices Inc. (ACD) of Terre
Haute, Indiana, subject to,
        among other things, completion of a definitive purchase agreement
        and approval by the Bankruptcy Court in Indianapolis, IN.
        


            ACD is a leading provider of network Operations Support Systems
        used by telephone companies worldwide in fault monitoring, traffic
        engineering and trunk/line provisioning.  ACD's architecture is
        object-based, protocol independent and fully scalable, creating off-
        the-shelf network operations support tools.

        
            Pursuant to the Letter of Intent, which was signed yesterday,
        Eltrax will acquire substantially all of the assets of ACD
        (excluding cash, accounts receivable, and real estate) for a
        purchase price of $1.1 million, on or before March 1, 1996.  The
        Bankruptcy Court proceedings allow other offers to purchase ACD's
        assets to be submitted and evaluated prior to the hearing on the
        final approval of the sale by the Bankruptcy Court, which is
        expected to occur on Feb. 14, 1996.  Eltrax management is aware that
        there are other interested, potential purchasers of ACD's assets,
        and therefore, the completion of this acquisition is uncertain at
        this time.
   

     
            Eltrax Systems Inc., headquartered in St. Paul, markets its
        products nationwide.  The Company went public in December, 1992 and
        its shares are traded on the Nasdaq Smallcap Market under the symbol
        ELTX.
      


        CONTACT: Eltrax Systems Inc.,
                 Mack V. Traynor, III, 612/633-8373