TCR_Public/960205.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


BANKRUPTCY NEWS FOR - FEBRUARY 05, 1996



  1. GRACE FULL YEAR OPERATING EARNINGS PER SHARE RISE 11 PERCENT TO $3.33; FOURTH QUARTER DECLINES 14 PERCENT TO $.95
  2. COLUMBIA GAS REPORTS STRONG ADJUSTED FOURTH QUARTER EARNINGS; RECORDS EFFECTS OF BANKRUPTCY EMERGENCE
  3. Diamond Increases Offer to Acquire Hayes Microcomputer Products, Inc.
  4. Ames acquires 10 former Jamesway locations
  5. Letter to stockholders of Dave & Buster's, Inc.
  6. MARSHFIELD ATTORNEY CHARGED WITH EMBEZZLEMENT OF BANKRUPTCY ASSETS
  7. SALES FROM SYCAMORE STORES LIQUIDATION TOP PROJECTIONS;
    RETURN TO CREDITORS NEARLY DOUBLES EARLIER GUARANTEES




GRACE FULL YEAR OPERATING EARNINGS PER SHARE RISE 11
PERCENT TO $3.33; FOURTH QUARTER DECLINES 14 PERCENT TO $.95


            BOCA RATON, Fla., Feb. 5, 1996 - W. R. Grace & Co. (NYSE:
        GRA) reported net operating earnings per share of $3.33 for the full
        year 1995, an 11 percent increase from the $3.01 per share recorded
        for 1994.  Including special items in both periods, Grace recorded a
        loss of $326 million, or $3.40 per share for the full year 1995,
        compared with net income of $83 million or 88 cents per share in
        1994.
        


            Full year sales of specialty chemicals rose 14 percent to $3.67
        billion compared to $3.22 billion in 1994.  In discontinued
        operations, sales for health care rose 11 percent to $2.08 billion,
        compared to $1.88 billion a year ago.
        


            For the fourth quarter of 1995, net operating earnings were $.95
        per share, a decline of 14 percent from the $1.10 per share earned
        in the 1994 quarter.  In addition, the company recorded special
        charges of $566 million after tax in the quarter, related to
        discontinued operations, restructuring activities, asset impairments
        and future spending for asbestos litigation and environmental
        remediation. Including the special charges, Grace reported a net
        loss of $474 million, or $4.87 per share, for the fourth quarter of
        1995.

        
            Sales for flexible packaging and specialty chemicals businesses
        in the fourth quarter declined one percent to $933 million compared
        to $944 million a year ago.
   

     
            Health care sales rose two percent to $541 million, compared to
        $529 million in the year-ago quarter.
      

  
            "The lower operating results in the recent quarter do not
        diminish our expectations for improved earnings and significantly
        higher shareholder value as we proceed through the year," said
        Albert J. Costello, chairman, president and chief executive officer.
        "As we noted in January, the shortfall in the fourth quarter was
        related to a number of factors, most of which appear to be temporary
        in nature. The agreement we announced yesterday to combine Grace's
        health care business with the dialysis operations of Fresenius AG
        will bring substantial benefits both to NMC and to Grace's packaging
        and specialty chemicals businesses.  This transaction, anticipated
        for completion by the third quarter of 1996, will create the world's
        largest fully integrated dialysis company, with exciting prospects
        for value-driven growth and continued leadership in quality of
        patient care," he said.

        
            "This transaction, combined with an expected transaction
        involving our Grace Dearborn water treatment business, will result
        in a significant reduction of Grace's debt, and more than restore
        the shareholders' equity impacted by the special charges taken in
        the fourth quarter.  Execution of the stock repurchase program will
        further enhance per share results.  In all, we will move
        significantly closer to attaining our goal of stronger, more
        predictable and sustainable growth in value," Mr. Costello
        concluded.
   

     
            In 1995, pretax operating earnings for flexible packaging and
        specialty chemicals rose 15 percent to $387 million, representing an
        all-time record for the group.  This increase was achieved despite a
        17 percent decline to $107 million in the fourth quarter.  As
        previously reported, fourth quarter results included four fewer
        selling days than in the year-ago quarter due to a change in the
        reporting calendar made at the start of 1995.  This had a volume
        impact of six percent.

        
            -  Packaging had a record year, with sales rising 19 percent to
        $1.7 billion versus 1994; operating earnings rose 20 percent.
        Packaging earnings for the quarter declined three percent, excluding
        the impact of fewer selling days.  Underlying product strength was
        more than offset by a number of factors, primarily the three-week
        French strike which ended in December, temporary weakness in U.S.
        meat markets, and increased costs resulting from new line start-up
        activity and reduction in inventory levels.
        
            -  Catalyst and silica products also had a record year, with
        sales of $687 million, up 13 percent versus 1994; operating earnings
        rose 18 percent.  Results for the quarter were mixed, excluding the
        change in selling days.  Fluid cracking catalysts were down compared
        to an exceptionally strong year-ago quarter, primarily as a result
        of refineries continuing to process light crude oils.  Silicas and
        adsorbents also declined due to several factors, while polyolefin
        catalysts rose due to strong volume and favorable costs.

        
            -  The smaller specialty chemicals businesses recorded 8 percent
        revenue gains for full year 1995 to $1.3 billion, while their
        earnings declined 22 percent.  For the fourth quarter, construction
        products earnings rose modestly versus the year-ago quarter,
        primarily due to strength in cement and concrete products and lower
        costs.  Results for both water treatment and container products
        declined, primarily due to continued high operating costs and the
        inability to raise prices.
   

     
            Pretax operating earnings from health care declined eight
        percent in the quarter due to the absence of 1994 sales and related
        earnings associated with the 1993 federal budget ("OBRA 93") that
        are no longer being recorded.  Absent the beneficial OBRA 93 impact
        in the 1994 quarter, current quarter revenues rose nine percent and
        operating income increased 27 percent.  Strong increases in dialysis
        services and medical products were partly offset by a decline in the
        homecare division due to price competition in its base infusion
        business.

        
            During the fourth quarter, the company updated analyses of
        certain contingencies.  Based on recent trends and reassessment of
        future plans and forecasts, provisions aggregating $566 million
        after tax were made as follows:
   

     
        -  Discontinued Operations - Health Care - $69 million -
            For cumulative adjustments related to changing the method of
        recording certain billing adjustments, the recognition of a greater
        than forecasted actual experience rate for certain self insurance
        liabilities and changes in the amortization rates of certain
        intangible assets.
      

  
        -  Other Discontinued Operations - $151 million -
            To reflect lower than expected net proceeds from planned
        disposition of the remaining discontinued operations, principally
        Grace Cocoa.

        
        -  Asbestos - $179 million -
            Principally for a first-time estimate of future bodily injury
        claims, updated estimates of pending property damage and bodily
        injury cases, and related insurance recovery estimates.
   

     
        -  Environmental - $50 million -
        For additional future spending for several sites.
      


   --  Restructuring, Asset Impairment and Other Costs -- $117 million
        


            To recognize costs of the previously-announced worldwide
        restructuring program along with certain asset impairments (as
        prescribed under a new accounting pronouncement - FASB No. 121
        


- Accounting for the impairment of long-lived assets) and other
        special costs, some of which related to previous divestments.

        
            Grace is a leading global supplier of flexible packaging and
        specialty chemicals, and a leading provider of specialized health
        care services.

   

     
                                    W. R. Grace & Co.
                          Consolidated Statement of Operations (a)
                               For Year Ended December 31
                             ($ Millions Except Per Share)
        
                                          Fourth Quarter        Full Year
        
                                          1995    1994       1995     1994
        Sales                            $933.4  $944.4   $3,665.5  $3,218.2
        Other income                       28.6     4.4       41.9      42.6
          Total                          $962.0  $948.8   $3,707.4  $3,260.8
        Cost of goods sold and oper.
         exp.                            $629.6   $523.5   $2,247.2 $1,900.8
        Selling, general and admin. exp.  243.9    227.2      910.8    773.6
        Depreciation and amortization      54.6     51.0      177.6    165.0
        Interest exp and related fin. cost 19.0     13.1       71.3     49.5
        Research and development exp.      30.6     24.0      120.6    106.8
        Corp. exp. prev. allocated to the
         health care segment                7.8      9.7       37.8     37.1
        Restruct. cost & asset
         impairments                      135.2       --      179.5       --
        Prov. relating to asbestos-related
          liab. and insurance coverage    275.0       --      275.0    316.0
          Total                        $1,395.7   $848.5   $4,019.8 $3,348.8
        (Loss)/income before inc. taxes ($433.7)  $100.3   ($ 312.4) ($88.0)
        (Benefit from)/prov. for inc.
         tax                             (149.4)    35.4     (115.8)  (46.6)
        (Loss)/income from cont. ops.   ($284.3)  $ 64.9   ($196.6)  ($41.4)
        (Loss)/income from disc. ops.    (189.5)    38.5    (129.3)    124.7
        Net (loss)/income               ($473.8)  $103.4   ($325.9)    $83.3
        
        (Loss)/earnings per share
        Continuing operations         $(2.92)(b) $ .69  $(2.05)(b) $(.45)(e)
        Discontinued operations        (1.95)(c)   .41   (1.35)(c)  1.33
        Net (loss)/income             $(4.87)(d) $1.10  $(3.40)(d) $ .88 (e)
        Avg. number of shares
         (millions)                    97.3      94.0    95.8      93.9
        
        (a)  1994 results have been restated to reflect the classification
             of the health care segment as a discontinued operation in the
             second quarter of 1995.
        (b)  Includes losses from special items of $3.55 per share (or
             $345.6 after-tax) and $4.08 per share (or $391.3 after-tax) for
             the fourth quarter and full year 1995, respectively.
        (c)  Includes losses from special items of $2.27 per share (or
             $220.2 after-tax) and $2.65 per share (or $253.7 after-tax) for
             the fourth quarter and full year 1995, respectively.
        (d)  Includes losses from special items of $5.82 per share (or
             $565.8 after-tax) and $6.73 per share (or $645.0 after-tax) for
             the fourth quarter and full year 1995, respectively.
        (e)  Includes $2.13 per share for the 2nd quarter 1994 provision
             relating to asbestos-related insurance coverage.
        
                               W. R. Grace & Co.
                               Operating Results
                           Quarter Ended December 31
                         ($ Millions Except Per Share)
                                                                    Percent
                                                   1995    1994     Change
        Sales - Specialty Chemicals               $ 933.4  $ 944.4    (1.2)%
        Operating Income - Specialty Chemicals    $ 107.0  $ 128.1   (16.5)
        Other Expenses/(Income):
             Interest/Financing (a)               $ 19.0   $  13.1    45.0
             Other                                 (13.8)      5.0  (376.0)
             Total Other Expenses                 $  5.2   $  18.1   (71.3)
        Pretax Operating Earnings                 $101.8   $ 110.0    (7.5)
        Corp. Exp. prev. allocated to Health Care    7.8       9.7   (19.6)
        Pretax Oper. Earnings before Special Items$ 94.0   $ 100.3    (6.3)
        Provision for Income Taxes                  32.7      35.4    (7.6)
        Net Operating Income before Special Items $ 61.3   $  64.9    (5.5)
        Special Items -after-tax- Chem./Corp.:
             Restructuring/Other Activities       (116.9)       --     ND
             Provision for Environmental Liab.     (50.0)       --     ND
             Provision for Asbestos-related Liab. (178.7)       --     ND
        Net (Loss) / Income from Continuing Ops. $(284.3)  $  64.9  (538.1)
        Net Loss from Disc. Ops.-(after-tax excl.
                               Health Care)       (151.3)       --     ND
        Net (Loss)/Inc. from Disc. Ops.-
                                 Health Care (b)   (38.2)     38.5  (199.2)
        Net (Loss) / Income                      $(473.8)  $ 103.4  (558.2)%
        
        Earnings Per Share - Oper. Earnings (before special items)
             From Operations-Specialty Chemicals  $  .63   $  .69     (8.7)%
             From Disc. Ops. - Health Care (b)       .32      .41    (22.0)
             Operating Earnings                   $  .95   $ 1.10    (13.6)%
        (Loss) / Earnings Per Share
             From Continuing Operations           $(2.92)  $  .69   (523.5)%
             From Discontinued Operations          (1.95)     .41   (575.6)
             Net (Loss) / Income                  $(4.87)  $ 1.10   (542.7)%
        
        Average Number of Shares (Millions)        97.3     94.0
        (a) After an allocation of interest/financing expenses to disc. ops.
        (b) Discontinued Operations - Health Care
              Sales                               $540.6   $ 528.5      2.3%
              Operating Income                    $ 83.6   $  90.9     (8.0)
              Interest/Financing Expenses           28.8      20.9     37.8
              Pretax Operating Earnings             54.8      70.0    (21.7)
              Provision for Income Taxes            24.1      31.5    (23.5)
              Net Income from Disc. Ops. before
                                  Special Items   $ 30.7   $  38.5   (20.3)%
              Special Items - after-tax            (68.9)       -       ND
              Net (Loss) / Income from Disc. Ops. $(38.2)  $  38.5  (199.2)%
        
                                    W. R. Grace & Co.
                                    Operating Results
                                 Year Ended December 31
                             ($ Millions Except Per Share)
                                                                     Percent
                                                    1995     1994     Change
        Sales - Specialty Chemicals              $3,665.5  $3,218.2    13.9%
        Operating Income - Specialty Chemicals   $  387.4  $  336.5    15.1
        Other Expenses:
         Interest/Financing (a)                  $   71.3  $   49.5    44.0
         Other                                      (11.3)      8.9  (227.0)
            Total Other Expenses                 $   60.0  $   58.4     2.7
        Pretax Operating Earnings                $  327.4  $  278.1    17.7
        Corp. Exp. prev. allocated to Health
         Care                                        37.8      37.1     1.9
        Pretax Oper. Earnings before Special
         Items                                   $  289.6  $  241.0    20.2
        Provision for Income Taxes                   94.9      83.4    13.8
        Net Operating Income before Special
         Items                                   $  194.7  $  157.6    23.5
        Special items - after tax - Chemicals / Corporate:
         Provision for Corporate Governance         (18.6)      --      ND
         Gain on Sale of Interest in REG              --       27.0  (100.0)
         Prov. for Environ. Costs/Staff Reduct.       --      (26.0)  100.0
         Restructuring/Other Activities            (144.0)     --       ND
         Provision for Environmental Liab.          (50.0)     --       ND
         Provision for Asbestos-related Liab.      (178.7 )  (200.0)   10.7
        Net Loss from Continuing Ops.            $ (196.6) $ (41.4) (375.0)
        Net Loss from Disc. Ops. (after-tax excl.
         Health Care)                               (151.3)     --      ND
        Net Income from Disc. Ops.-Health Care (b)   22.0    124.7   (82.4)
        Net (Loss)/Income                        $ (325.9) $  83.3  (491.2)%
        
        Earnings Per Share - Oper. Earnings (before special items)
         From Operations - Specialty Chemicals   $   2.03  $  1.68    20.8%
         From Disc. Ops. - Health Care (b)           1.30     1.33    (2.3)
         Operating Earnings                      $   3.33  $  3.01    10.6%
        
        (Loss)/Earnings Per Share
         From Continuing Operations              $ (2.05)  $  (.45) (355.6)%
         From Discontinued Operations              (1.35)     1.33  (201.5)
         Net (Loss)/Income                       $ (3.40)  $   .88  (486.4)%
        
        Average Number of Shares (Millions)        95.8      93.9
        
        (a) After an allocation of interest/financing expenses to disc.
            ops.
        (b) Discontinued Operations - Health Care
          Sales                                 $2,076.8  $1,875.1  10.8%
          Operating Income                      $  315.6  $  287.5   9.8
          Interest/Financing Expenses               93.5      60.4  54.8
          Pretax Operating Earnings                222.1     227.1  (2.2)
          Provision for Income Taxes                97.7     102.4  (4.6)
          Net Income from Disc. Oper. before
                                Special Items   $  124.4  $  124.7  (0.2)%
          Special Items - after-tax               (102.4)       -     ND
          Net Income from Discontinued Ops.     $   22.0  $  124.7 (82.4)%
        
                                   W. R. Grace & Co.
                                  Specialty Chemicals
                                    Geographic Data
                                 (Dollars In Millions)
        
        QUARTER ENDED DECEMBER 31
                                                         Pretax
                                         Sales       Operating Income
                                      1995    1994     1995     1994
        Specialty Chemicals
        North America               $  459  $  479   $   62   $   69
        Europe                         291     284       21       33(a)
        Latin America                   66      68        7        8
        Asia Pacific                   118     113       17       18
        Total Specialty Chemicals   $  934  $  944   $  107   $  128
        
        YEAR ENDED DECEMBER 31
                                                       Pretax
                                         Sales     Operating Income
                                    1995    1994    1995     1994
        Specialty Chemicals
          North America           $1,821  $1,679   $ 208    $ 192
          Europe                   1,147     955      96       69(a)
          Latin America              253     218      18       20
          Asia Pacific               445     366      65       56
          Total Specialty
           Chemicals              $3,666  $3,218   $ 387    $ 337
        
        (a)  Includes costs of $1 for the quarter and $11 year-to-date
             associated with streamlining certain European chemical
             operations.


        /CONTACT:  Chuck Suits or Mary Lou Kromer of W. R. Grace,
        407-362-2600 or 800-GRACE99/


COLUMBIA GAS REPORTS STRONG
ADJUSTED FOURTH QUARTER EARNINGS; RECORDS EFFECTS OF BANKRUPTCY EMERGENCE
        


            WILMINGTON, Del., Feb. 5, 1996 - href="chap11.columbia.html">The Columbia Gas System,
        Inc.
, (NYSE: CG) today announced that its net income for the
fourth
        quarter of 1995, after adjustments for bankruptcy-related costs and
        other unusual items, was $77.5 million, or $1.54 per share.  This
        reflects a 10 percent increase over similarly adjusted net income of
        $70 million, or $1.39 per share, during the fourth quarter of 1994.
        Operating income in the fourth quarter was $47.6 million above the
        previous period.

        
            Adjusted net income for 1995 was $153.3 million, or $3.04 per
        share, as compared to $164.9 million, or $3.26 per share, during
        1994. Operating income for the year was $390.2 million as compared
        to $384.1 million in 1994.
   

     
            Columbia System Chairman Oliver G. (Rick) Richard III said:
        "Many positive things happened to Columbia in 1995, besides our
        successful emergence from Chapter 11 with investment grade debt
        ratings.  The price of our stock appreciated over 86 percent.  Our
        cost of long-term debt (7.03 percent) is among the lowest in the gas
        pipeline industry.  Our principal pipeline company announced a major
        expansion program that will deliver an additional 500 million cubic
        feet of natural gas daily and filed its first general rate increase
        since 1991 to recover the higher operating costs it is experiencing.
        The long-idle liquefied natural gas terminal in Maryland returned to
        operation providing peaking and storage services to customers.  The
        distribution companies launched new programs designed to provide
        more cost-efficient, higher-quality service to their customers."

        
            Richard said these and other positive developments "are
        precursors of the continued growth and expansion I would expect for
        Columbia in coming years as our new, diverse management team
        develops innovative ways to better utilize the System's strong
        physical assets to grow our businesses and improve shareholder
        value.  Particular attention will be given to maximizing and
        unlocking latent potential in our nonregulated businesses."

        
            The increase in adjusted 1995 fourth quarter net income was
        principally due to increased distribution segment throughput,
        resulting from temperatures that were 32 percent colder than the
        previous year, and higher prices for oil and gas.  For the year, the
        favorable effects in the fourth quarter were more than offset by the
        effect of higher operating costs, higher interest expense, and the
        combined effect of lower oil and gas prices and reduced production.
   

     
            Prior to adjustments for the bankruptcy-related and other
        unusual items, Columbia reported a net loss of $539.7 million, or
        $10.74 per share, for the fourth quarter, as compared to net income
        of $73.2 million, or $1.45 per share, during the fourth quarter of
        1994. For the year,  Columbia reported a net loss of $360.7 million,
        or $7.15 per share, as compared to net income of $240.6 million or
        $4.76 per share in 1994.

        
            The most significant item affecting both the fourth quarter and
        the 12-month results was an after-tax charge of $638.4 million
        resulting from the recording of interest and interest on interest
        expense on prepetition debt obligations for the four and one-half
        years the company operated under Chapter 11.
   

     
            Fourth quarter and annual results also reflect a $54.8 million
        after-tax charge associated with the proposed sale of Columbia's
        southwest oil and gas company and an after-tax improvement of $71.6
        million due to the reapplication of Financial Accounting Standard
        No. 71 "Accounting for the Effects of Certain Types of Regulation"
        by the transmission subsidiaries.  This accounting statement allows
        certain costs, such as environmental charges, that previously were
        expensed, to be recognized as regulatory assets to the extent they
        are recoverable in rates and permits revenues and expenses to be
        recorded in a manner that reflects the ratemaking process.

        
                         FOURTH QUARTER RESULTS

   
         Operating income for the transmission segment in the current
        period was $60.3 million, an increase of 59 percent or $22.5 million
        over the fourth quarter of last year.  This improvement reflected
        $21.1 million for certain adjustments associated with emergence from
        Chapter 11 and the effect of lower customer settlement reserve
        additions of $17.5 million in 1995 compared to $35 million in 1994.
        While increased operating costs partially offset the favorable
        effect of these items, additional revenues resulting from a rate
        case Columbia Gas Transmission Corp. has pending before the Federal
        Energy Regulatory Commission will provide the opportunity to recover
        higher operating costs that are being incurred.
   

     
            Temperatures in the distribution segment's operating territory
        were 32 percent colder during the current period than during the
        same period in 1994, generating an 18 percent increase in
        throughput.  This, combined with higher rates and increased customer
        usage and growth, resulted in operating income that increased 43
        percent, or $24.5 million, to $80.8 million..

        
            The oil and gas segment had operating income of $4.4 million
        during the current period, an increase of $1.2 million over the same
        period in 1994.  The increase reflects a $2.8 million payment
        received as a result of an investment in an area impacted by
        Columbia Transmission's emergence from Chapter 11.  On average,
        prices received for oil ($16.31 per barrel) and natural gas ($2.09
        per thousand cubic feet) were up slightly during the current period,
        but this was partially offset by an eight percent decrease in gas
        production and an 18 percent decrease in oil production.
   

     
            Operating income for other energy operations improved $300,000
        to $6.9 million because of the favorable effect of colder weather on
        propane sales  and gas marketing activities.  This was reduced by
        lower income from cogeneration operations.

        
                          TWELVE MONTHS RESULTS

   
          The transmission segment had operating income of $214.1 million
        during 1995.  The $4.4 million increase over the previous year
        reflects the positive effect of unusual items associated with
        emergence from Chapter 11.  Operating income was reduced $35 million
        for a customer settlement reserve in 1994 compared to a reserve
        addition of $17.5 million in 1995.  Tempering these increases were
        higher operating costs not being recovered in present rates, but
        which are reflected in a rate case currently pending before the
        Federal Energy Regulatory Commission.
   

     
            Operating income for the distribution segment was $163.6 million
        in 1995.  The $35.3 million improvement over 1994 was due to the
        impact of higher rates that generated an additional $56.3 million in
        revenue, increased industrial throughput resulting from strong
        economic conditions and colder weather.  These positive effects were
        reduced by higher operating costs.

        
            The oil and gas segment had operating income of $3.7 million in
        1995, as compared to $30.6 million in 1994, due principally to a 10
        percent decrease in the average price received for natural gas and a
        21 percent decline in oil production.  The average price for oil
        increased more than a dollar per barrel between the two periods.
        Also affecting segment operating income were the 1994 reversal of a
        reserve related to a royalty dispute and the payment received
        following Columbia Transmission's emergence from Chapter 11.
   

     
            Other energy operating income in 1995 was $19.3 million, a
        decline of $4.8 million from the previous year reflecting lower
        propane margins and other miscellaneous changes.
      

  
            The Columbia Gas System, Inc., is one of the nation's largest
        integrated natural gas systems with assets in excess of $6 billion.
        Its operating units are actively engaged in all phases of the
        natural gas industry, provide marketing and fuel management
        services, and generate electric power.  Information about Columbia
        and its operating units will be available at The Energy Station on
        the World Wide Web (http://www.columbiaenergy.com ) beginning
        February 15.

        
             This press release includes forward looking statements within
        the meaning of Section 27A of the Securities Act of 1933 and Section
        21E of the Securities Exchange Act of 1934.  Although Columbia
        believes that its expectations are based on reasonable assumptions,
        it can give no assurance that its goals will be achieved.  Important
        factors that could cause actual results to differ materially from
        those in the forward looking statements herein include prolonged
        unusual weather patterns, political and regulatory actions, the pace
        of deregulation of domestic retail natural gas and electricity
        markets, the timing and extent of change in commodity prices for all
        forms of energy and the timing and extent of Columbia's efforts to
        implement changes planned by management.

        
                      THE COLUMBIA GAS SYSTEM, INC.
                 Summary of Financial and Operating Data
        
                                        Three Months      Twelve Months
                                      Ended December 31  Ended December 31
                                       1995       1994   1995        1994
        Income Statement Data
         ($ millions)
        Total Operating Revenue        783.6     748.2 2,635.2    2,747.1
        
        Income (Loss) Before
         Extraordinary item           (611.3)     73.2  (432.3)     246.2
        Net Income (Loss)             (539.7)(A)  73.2  (360.7)(A)  240.6(A)
        
        Operating Income (Loss) by Segment:
         Transmission                   60.3(B)   37.8(B) 214.1(B)  209.7(B)
         Distribution                   80.8      56.3    163.6     128.3
         Oil and Gas                     4.4       3.2      3.7      30.6
         Other Energy                    6.9       6.6     19.3      24.1
         Corporation                    (3.3)     (2.4)   (10.5)     (8.6)
        
         Total                         149.1     101.5    390.2     384.1
        
        Per Share Data
         Earnings (Loss) Before
          Extraordinary item ($)      (12.17)     1.45    (8.57)     4.87
         Earnings (Loss)
          on Common Stock             (10.74)     1.45    (7.15)     4.76(A)
         Average Common Shares
          Outstanding (millions)        50.2      50.6     50.5      50.6
        
            (A) Includes the reapplication of SFAS No. 71, "Accounting for
        the Effects of Certain Types of Regulation," in 1995 and the
        adoption of SFAS No. 112, "Employers Accounting for Postemployment
        Benefits" in 1994.
        
            (B) Includes establishing a $17.5 million reserve in 1995 and a
        $35 million reserve in 1994 for a customer settlement.
        
        Capitalization as of December 31 (in millions)    1995     1994
        
        Common Stock Equity
         Common stock, par value $10 per share -
          outstanding 49,204,025 and 50,563,335
          shares, respectively                           $506.2   $505.6
         Additional paid in capital                       595.8    601.9
         Retained earnings                                 69.8    430.5
         Less: Cost of treasury stock
          (1,416,155 shares)                               57.8      ---
         Unearned employee compensation                     ---    (70.0)
        
        Total Common Stock Equity                       1,114.0  1,468.0
        Redeemable Preferred Stock                        399.9      ---
        Long-Term Debt                                  2,004.5      4.3
        
        Total Capitalization                           $3,518.4 $1,472.3
        
                   Summary of Financial and Operating Data
        
                                            Three Months     Twelve Months
                                        Ended December 31  Ended December 31
                                             1995   1994     1995     1994
        Operating Data:
         Oil and Gas Volumes:
          Gas Production (billion cubic feet)15.6   16.9     65.4     66.7
          Oil Production (000 barrels)        674    823    2,849    3,611
        Transmission (billion cubic feet):
         Transportation:
          Columbia Transmission
           Market Area                      338.4  288.4  1,106.1  1,038.6
          Columbia Gulf
           Main-line                        155.0  114.6    605.0    590.3
           Short-haul                        61.5   23.5    221.4    225.4
          Intrasegment Eliminations       (152.5) (137.1) (596.3)  (583.2)
         Total Transportation               402.4  289.4  1,336.2  1,271.1
         Sales                                0.0    0.0      0.0      0.9
         Total                              402.4  289.4  1,336.2  1,272.0
        
        Distribution (billion cubic feet):
         Gas Sales                           99.8   75.8    290.7    280.5
         Transportation                      65.3   64.5    255.9    232.5
        Total Throughput                    165.1  140.3    546.6    513.0
        
        Degree Days-Distribution Service
         Territory
          Actual                            2,208  1,671    5,692    5,530
          Normal                            2,032  2,032    5,600    5,600
          % Colder (warmer) than normal         9    (18)       2       (1)
          % Colder (warmer) than prior period  32    (20)       3       (3)
        
        Bankruptcy-related and Unusual Items
        After-tax effect on Net Income:
        Reported Net Income (Loss)       $(539.7)  $73.2  $(360.7)  $240.6
         Less:
         Bankruptcy related items:
          Interest and customer
           settlement issues               (649.4) (22.8)  (649.4)   (22.8)
          Estimated interest costs
           not recorded on prepetition
           debt prior to emergence           28.2   39.9    158.0    149.2
          Professional fees and
           related expenses                  (3.7)  (9.0)   (26.8)   (30.1)
          Producer claim adjustment           ---    ---      ---    (35.4)
         Reapplication of SFAS No. 71
          for transmission
          subsidiaries                       71.6   ----     71.6      ---
         Estimated loss on sale
          of Southwest oil and
          gas subsidiary                   (54.8)    ---   (54.8)      ---
         Miscellaneous unusual items        (9.1)   (4.9)  (12.6)     14.8
         Total adjustments                (617.2)    3.2  (514.0)     75.7
        Net Income after adjusting
         for bankruptcy and
          unusual items                     $77.5  $70.0   $153.3   $164.9


        /CONTACT:  Bill Chaddock, 302-429-5261, or Bill McLaughlin,
        302-429-5443, or financial, Tom Hughes, 302-429-5363, or Ken Murphy,
        302-429-5471, all of Columbia Gas/


Diamond Increases Offer to Acquire
Hayes Microcomputer Products, Inc.
        


            SAN JOSE, Calif. -- Feb. 5, 1996 -- Diamond
        Multimedia (Nasdaq: DIMD) today announced that it has increased its
        offer to acquire Hayes Microcomputer
Products, Inc.
  ("Hayes") out
        of Chapter 11 bankruptcy reorganization.  The Official Committee of
        Unsecured Creditors of Hayes (the "Committee"), which has approved
        the Diamond offer, today filed with the U.S. Bankruptcy Court in
        Atlanta, Georgia, an amendment to the Plan of Reorganization of the
        Committee and Diamond increasing the offer.  

        
            The Committee and Diamond filed an amendment to the Plan on
        January 25, 1996, in which Diamond proposed to provide approximately
        $85 million in cash to creditors, representing a full pay-out of all
        pre-petition claims plus interest, and offered equity holders $102.4
        million in stock and $8.6 million in cash.  Diamond further reserved
        the right in the January 25, 1996 amendment to increase the total
        cash consideration and correspondingly decrease the total stock
        consideration by any amount up to one-half of the total merger
        consideration of $111 million.  The new offer continues to provide
        for payment of all pre-petition claims in full in cash; equity
        holders, however, will now receive an aggregate of $103 million in
        stock and $25 million in cash, and Diamond no longer reserves the
        right to substitute cash consideration for stock consideration.  The
        new offer brings the total aggregate merger consideration to $128
        million and is structured to comply with the requirements of a tax-
        free reorganization within the meaning of Section 368 (a) of the
        Internal Revenue Code of 1986, as amended.  

        
            Due to the uncertainty of the eventual outcome of the contested
        bidding process, the Company can provide no assurance that its bid
        for Hayes will prevail, or that if the Company's bid is successful
        the Company will be able to successfully integrate Hayes.  

        
        Diamond Multimedia
   

     
            Diamond Multimedia designs, markets and supports high-
        performance multimedia solutions for the PC and Macintosh markets.
        Products include the Stealth, Viper and SPEA brands of graphics, CAD
        and multimedia accelerators, Diamond EDGE 3D animation accelerators
        and Supra fax/modems.  Diamond also markets Internet kits including
        ISDN adapters, as well as sound cards and multimedia upgrade kits.
        Headquartered in San Jose, CA, Diamond has marketing and technical
        support facilities in Vancouver (Wash.), Tokyo, Starnberg (Germany),
        Paris and Slough (U.K.) Diamond's products are sold through
        regional, national and international distributors as well as to
        major computer retailers, mass merchants and OEMs worldwide.
        Diamond's common stock is traded on the Nasdaq National Market under
        the symbol DIMD.  



        CONTACT:  Diamond Multimedia   
                  Gary Filler, 408/325-7333 (investors)      
                  Kim Stowe, 408/325-7204 (media)
                  E-mail: kims@diamondmm.com
                  or
                  FRB San Francisco
                  Ann Trunko or Kevin Mirise, 415/986-1591




Ames acquires 10 former Jamesway
locations
        


            ROCKY HILL, Conn. -- Feb. 5, 1996 -- Ames
        Department Stores Inc. (NASDAQ: AMES) today announced that its $2.8
        million bid to acquire 10 locations previously operated as href="chap11.jamesway.html">Jamesway
        stores has been approved by the bankruptcy court supervising the
        Jamesway liquidation.  
        


            Ames plans to reopen the former Jamesway locations in late
        spring.  The locations are in Catskill, Chester, Liberty, Monticello
        and Napanoch, N.Y.; Flemington, Sussex and Wrightstown, N.J.; and
        Brodheadsville and Stroudsburg, Pa.

        
            President and Chief Executive Officer Joseph R. Ettore, said,
        "The acquisition of these higher-volume locations better positions
        Ames in a competitive discounting environment by building on the
        company's dominant presence in the Northeast, increasing market
        share in areas of three key states and adding an estimated $100
        million in net sales.  We intend to continue to actively pursue
        growth opportunities arising in the regional discount industry."
   

     
            Ames, which operates 307 stores in 14 Northeastern states and
        the District of Columbia, is the nation's fifth-largest discount
        retailer, with annual net sales of $2.1 billion.
      


        CONTACT:  Ames Department Stores;
                  Marge Wyrwas, 203/257-2659;
                  Bill Roberts, 203/257-2666;
                  Lynn Riemer, 203/257-2655
        



Letter to stockholders of Dave &
Buster's, Inc.
        


            DALLAS, TX -- Feb. 5, 1996 -- The following letter
        was released today by Dave & Buster's, Inc.:
        


        February 5, 1996
        


        TO OUR STOCKHOLDERS:
        


            As co-founders of Dave & Buster's, Inc., we wanted to
        communicate to you, our stockholders, a first look at the year we
        have just completed.  We are excited about the future of our Company
        and the management team we have assembled to move Dave & Buster's
        into the next century.  We would like to review for you some of the
        recent events in our short public history.  Later this year we will
        be forwarding to you our first annual report which will describe the
        1995 fiscal year in much more detail.  

        
            In June 1995 Edison Brothers Stores, Inc.  distributed its
        ownership interest in Dave & Buster's to its shareholders in a tax
        free spin-off.  On June 26, 1995, Dave & Buster's common stock
        started trading on the NASDAQ under the symbol DANB.  
   

     
            In August 1995 Dave & Buster's entered into a license agreement
        with a subsidiary of Bass Plc to license the "Dave & Buster's"  name
        and concept in the United Kingdom.  Bass expects to open seven
        stores in the United Kingdom by the year 2000.  This agreement will
        give Dave & Buster's international exposure and will open the door
        for similar type agreements in other foreign countries.  

        
            In September 1995 Dave & Buster's repaid its outstanding
        intercompany borrowings and construction advances from Edison
        Brothers with advances from a bank facility agreement.  This was a
        major step in separating our business from the Edison Brothers'
        business.  
   

     
            In October/November 1995 Dave & Buster's completed a public
        offering of common stock for the sale of 2,070,000 shares (including
        the underwriters' over-allotment) at $15.00 per share for net
        proceeds of $28,683,000, after deducting related offering costs.
        These funds along with internally generated cash flow and unused
        debt capacity will allow Dave & Buster's to continue its expansion
        plans into the future.  
      

  
            We were pleased with the results of our third quarter which
        ended October 29, 1995.  Some of the highlights were:



            We were also pleased with the results of the first 39 weeks of
        1995.  Some of the accomplishments were:
   



            In November 1995 the Company opened its sixth Dave & Buster's
        location, a 50,000 square foot store in the Chicagoland suburb of
        Addison, Illinois.  Our opening team did an excellent job in
        preparing this store for opening and, to date, it is performing at
        revenue levels higher than our expectations averaging approximately
        $300,000 per week.  

        
            We have just completed our seventh store, a 59,000 square foot
        complex in downtown Chicago (Clark Street and Oak) which opened
        January 25, 1996.  This is Dave & Buster's first venture into a
        major downtown location.  Early results have been above our
        expectations.  
   

     
            Fiscal year 1995, which ended on February 4, 1996, was the best
        year in our history with total revenues exceeding $52.5 million and
        comparable store revenues in excess of comparable amounts for last
        year.  With the addition of our two Chicago complexes and the two
        1996 store openings in Hollywood, Florida and North Bethesda,
        Maryland, we look forward to another record year.  
      

  
            At the time of the November bankruptcy filing by Edison Brothers
        Stores, Inc., some question was raised about the possible effect on
        our Company of a "fraudulent conveyance"  claim.  To date, no such
        claim has been raised.  However, even if it were, Dave & Buster's
        and its legal advisors continue to believe that any stockholder who
        bought common stock of the Company after the spin-off was completed
        or during the Company's recently completed public offering would not
        be affected.  While we continue to monitor this situation carefully,
        our primary attention is focused on managing our existing operations
        and moving forward with our development plans.  

        
            The next several quarters will be very busy for us as we
        complete our newest stores in Hollywood, Florida and North Bethesda,
        Maryland at the end of the first quarter of 1996 and the beginning
        of the third quarter of 1996, respectively.  We are also negotiating
        for three new locations in 1997 that could include the Cambridge
        Side Galleria located in Cambridge, Massachusetts, the Roosevelt
        Field Raceway Center in Westbury Long Island, the Palisades Power
        Mall, a 3 million square foot super regional enclosed mega-mall
        located in Rockland County, New York and the Santa Anita
        Entertainment Center, a 1,000,000 square foot entertainment and
        retail development located adjacent to the Santa Anita Racetrack in
        Arcadia, California.  We are also currently negotiating for sites in
        Orlando, Minneapolis, Denver, Detroit, Manhattan and Ontario,
        California.  

        
        We thank you for your support of Dave & Buster's.  

        
        Sincerely,
   

     
        Dave Corriveau             Buster Corley
        Co-founder and President   Co-founder and Chief Operating Officer
       



MARSHFIELD ATTORNEY CHARGED WITH EMBEZZLEMENT OF
BANKRUPTCY ASSETS

       
            BOSTON, Feb. 5, 1996 - A criminal Information was filed
        today charging a Marshfield attorney with embezzling funds belonging
        to a client's bankruptcy estate.

        
            United States Attorney Donald K. Stern stated that an
        Information was filed charging MARTHA B. KLEINERMAN, 47, of 8 School
        Street, Marshfield, Massachusetts, with one count of embezzling
        approximately $9,200 belonging to a client in bankruptcy, which was
        intended for payment to the client's bankruptcy creditors.
   

     
            KLEINERMAN faces a maximum penalty of five years' imprisonment
        and a $250,000 fine.
      

  
            The case was investigated by agents of the Federal Bureau of
        Investigation, was referred by the U.S. Trustee's Office in Boston,
        and is being prosecuted by Assistant U.S. Attorney Mark J.
        Balthazard of Stern's Economic Crimes Unit.
        


        CONTACT: Joy Fallon or Anne-Marie Kent of the US Attorney's Office,
        617-223-9445
        



SALES FROM SYCAMORE STORES
LIQUIDATION TOP PROJECTIONS; RETURN TO CREDITORS NEARLY DOUBLES EARLIER GUARANTEES
        


            INDIANAPOLIS, Ind., Feb. 5, 1996 - The higher than
        anticipated revenues generated by href="chap11.sycamore.html">Sycamore Stores' going-out-of-
        business sale provided a bittersweet ending for the liquidation of
        the chain, as the last of its 126 stores closed on Saturday.
        


            Since final sales commenced in December, Sycamore sold more than
        $8.4 million in merchandise, exceeding original estimates by about
        $1 million, said Erik Risman, president and CEO.  Utilizing a team
        approach under which employees of the chain liquidated the
        inventories under the direction of Cranford, N.J.-based consultant
        Fox Promotions, Sycamore generated a return for its creditors that
        was nearly double the top guaranteed offer of 30 cents on the dollar
        submitted by traditional liquidation firms.

        
            "Other liquidators we spoke with offered guaranteed returns of
        30 cents on the dollar," Risman noted.  "Fox president Fred Marech
        didn't offer us any guarantees, but told us to expect a return of
        about 50 cents on the dollar.  For the first 22 stores we closed,
        which had outdated merchandise, the return was about 51 cents.  But
        for the other 104 locations, it was closer to 58 cents."
   

     
            Because it was operating under Chapter 11 bankruptcy protection,
        Sycamore was required to seek court approval of Fox as its
        liquidator. A federal bankruptcy court judge in Indianapolis upheld
        the company's decision to retain Fox and proceed with a non-
        guaranteed sale in a Dec. 12 ruling.

        
            "The improved return was basically due to a team approach
        between Sycamore's management and field staff, and the Fox team led
        by (regional coordinator) Mark McMahan," Risman said.  "We didn't
        follow advice of other liquidators who suggested we terminate our
        staff and manage the stores through a third party, Fox's experience
        in timing the markdowns from week to week, advertising and analyzing
        individual store performance was critical to the success of the
        sale.
   

     
            "I think the general feeling among creditors is that no one is
        happy about losing money and closing the stores, but the higher than
        projected return from the sale was a pleasant surprise," he
        concluded.
      

  
            Sycamore Stores served markets throughout Indiana, Illinois,
        Ohio, Kentucky and Michigan, specializing in moderate-priced women's
        apparel. Stores were located in strip centers and regional malls.
        The company is headquartered in Indianapolis.

        
            Fox Promotions specializes in inventory liquidation, as well as
        turnaround consulting services for retail chains and independents.
   


        CONTACTS:  Erik Risman, president and CEO of Sycamore Stores,
        317-298-1600; or Fred Marech, president of Fox Promotions, 908-272-
        0155; or Bill Parness of Parness & Associates, 908-290-0121/