TCR_Public/960207.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News for - February 7, 1996



  1. TYCO TOYS REPORTS 1995 RESULTS
  2. PETRIE RETAIL RECEIVES EXTENSION ON EXCLUSIVITY PERIOD
  3. HARRAH'S ENTERTAINMENT REPORTS 1995 YEAR-END AND FOURTH QUARTER RESULTS
  4. Piercing Pagoda announces record third quarter and nine month results
  5. PENNSYLVANIA ATTORNEY GENERAL SEEKS CONSUMER RESTITUTION FROM PITTSTON COMPANY
  6. Parker & Parsley 1995 financial & operating results



Tyco Toys reports 1995 results


            MT. LAUREL, N.J. -- Feb. 8, 1996 -- Tyco Toys Inc.
        (NYSE: TTI) today reported Net Sales of $709,109,000 for the year
        ended December 31, 1995, compared to $753,098,000 for 1994.  The Net
        Loss for 1995 was $30,429,000 ($.87 per share) after restructuring
        charges of $8,900,000 compared to a Net Loss of $35,130,000 ($1.01
        per share) after a $4,700,000 special charge in 1994.  
        


            For the Fourth Quarter ended December 31, 1995, the Company
        reported Net Sales of $215,072,000 compared to $246,768,000 for the
        same period in 1994.  The Net Loss for the Fourth Quarter was
        $18,089,000 ($.52 per share) after a $4,000,000 ($.12 per share)
        restructuring charge for closing certain International facilities
        compared to a Net Loss of $13,484,000 ($.39 per share) in 1994.
        


            Gary Baughman, President and Chief Executive Officer, said
        "Modestly higher Sales in the U.S. in the Fourth Quarter and Full
        Year were more than offset by sharply lower Sales in the Company's
        International and Preschool units.  Results were affected by the
        difficult retail climate worldwide, extensive restructuring, and the
        discontinuing of action figure toys and other unprofitable product
        lines."
        


            Mr. Baughman continued, "Net Sales and Operating Profit in the
        U.S. business unit benefitted in 1995 from strong sell-through at
        retail of core brands such as Radio Control and Matchbox(R) and the
        successful introduction of new products such as Doodle Bear(TM) and
        Magna Doodle(R) 3-in-1 Play Center.  In addition, our domestic
        operations were favorably impacted by streamlined operations and
        lower overhead.
        


            Mr. Baughman noted, "While the aggressive restructuring of the
        Company's International and Preschool units negatively impacted
        sales and operating results in 1995, we expect these actions will
        generate substantial savings and improved results beginning in
        1996."
        


            Mr. Baughman also noted that despite the net loss for the year,
        the Company's positive cash flow from operations during 1995,
        partially attributable to lower inventories, resulted in a $17
        million reduction in short-term debt.  
        


            Mr. Baughman added, "We are encouraged by the very positive
        reaction to our 1996 product line at the recently concluded European
        Toy Fairs and anticipate similar strong reception to the line at
        next week's American International Toy Fair."
        


            Tyco Toys, the third largest U.S. toy manufacturer, markets a
        broad range of products worldwide, including a wide variety of
        Sesame Street(R) preschool toys, Tyco(R) radio control vehicles,
        View-Master(R) 3-D viewers, Magna Doodle(R) drawing toys and
        Matchbox(R) diecast vehicles and playsets.

        
                                  Tyco Toys Inc.
                       Consolidated Statements of Operations
                      (In thousands, except per share amounts)
                                                 
        
                         For the Quarters Ended      For the Years Ended
                              December 31,               December 31,
                          1995            1994        1995          1994
        
        Net sales           $215,072        $246,768    $709,109
        $753,098 Cost of goods sold   130,715         150,308     416,236
        445,394
        
        Gross profit          84,357          96,460     292,873
        307,704
        
        Marketing, advertising
         and promotion        51,249          57,463     160,779
        172,462 Selling, distribution
        
         and administrative
         expenses             31,572          36,977     119,066
        123,622 Restructuring charge   4,000            --         8,900
        4,700 Amortization of
        
         goodwill              1,585           1,516       6,410
        6,285
        
        Total operating
         expenses             88,406          95,956     295,155
        307,069
        
        Operating income  
         (loss)               (4,049)            504      (2,282)
        635
        
        Interest expense,
         net                   7,667           9,577      28,026
        30,913
        
        Other (income)
         expense, net          1,710           2,129      (2,074)
        1,195
        
        Loss before taxes    (13,426)        (11,202)    (28,234)
        (31,473)
        
        Provision (benefit)
         for income taxes      3,845           1,500      (1,005)
        1,500
        
        Net loss             (17,271)        (12,702)    (27,229)
        (32,973)
        
        Preferred stock
         dividends               818             782       3,200
        2,157
        
        Net loss applicable
         to common
         shareholders       ($18,089)       ($13,484)   ($30,429)
        ($35,130) Net loss per common
        
         share                ($0.52)         ($0.39)     ($0.87)
        ($1.01)
        
        Average common
         shares outstanding   34,826          34,715      34,788
        34,687 -0-
        
                                   Tyco Toys Inc.
                             Consolidated Balance Sheets
                         (In thousands, except share amounts)
                                                      
        
                                        December 31,
                                      1995       1994       
        
        Assets Current assets                   Cash and cash equivalents
        $27,604    $30,476  Receivables, net                 187,503
        211,400 Inventories, net                  56,710     66,284 Prepaid
        expenses and other
        
         current assets                   19,738     24,389 Deferred taxes
        13,008     17,231
        
        Total current assets             304,563    349,780
        
        Property and equipment, net       33,021     47,240
        
        Goodwill, net of accumulated
         amortization                    226,112    231,292 Deferred taxes,
        noncurrent        28,560     23,732 Other assets
        22,876     18,591
        
        Total assets                    $615,132   $670,635
        
        Liabilities and Stockholders'
         equity Current liabilities Notes and acceptances
         payable                         $60,923    $77,831 Current portion
        of
        
         long-term debt                    1,053      1,165 Accounts payable
        45,557     51,325 Accrued expenses and other
        
         current liabilities              93,179     95,107
        
        Total current liabilities        200,712    225,428  
        
        Long-term debt, net of
         current portion                 147,180    146,851 Other
        liabilities                  1,900      2,124  
        
        Stockholders' Equity             265,340    296,232 Total
        liabilities and
        
         stockholders' equity           $615,132   $670,635 -0-


        CONTACT: Tyco Toys Inc.,
                 Bruce Maguire, 609/840-1384
        


PETRIE RETAIL RECEIVES EXTENSION ON EXCLUSIVITY PERIOD
        


            SECAUCUS, N.J., Feb. 7, 1996 -
Petrie Retail Inc.
, a
        privately-owned company, today reported that the United States
        Bankruptcy Court for the Southern District of New York has extended
        the company's exclusive periods in which to file a plan of
        reorganization and during which to solicit acceptances of its
        reorganization plan through July 31, 1996 and September 30, 1996,
        respectively.
        


            In October 1995, as a result of the difficult retailing
        environment, Petrie Retail Inc. filed a voluntary petition for
        protection under chapter 11 of the U.S. bankruptcy code.
        


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



HARRAH'S ENTERTAINMENT REPORTS 1995
YEAR-END AND FOURTH QUARTER RESULTS
        


            MEMPHIS, Tenn., Feb. 7, 1996 - href="chap11.harrahs.html">Harrah's Entertainment,
        Inc.
(NYSE: HET) today reported record results for the year and
        quarter ended Dec. 31, 1995.  Earnings per share for the year and
        fourth quarter, before the write-down of certain gaming projects,
        were $1.34 and 23 cents per share, respectively.  After the 58 cents
        per share after tax impact of these fourth quarter write-downs,
        earnings per share were 76 cents for 1995 and a loss of 35 cents for
        the fourth quarter.

        
            EBITDA (Earnings Before Interest, Taxes, Depreciation and
        Amortization), excluding the project write-downs and preopening
        costs in both 1994 and 1995, rose 22.8 percent to $450.1 million in
        1995.  EBITDA in traditional markets was essentially even with 1994,
        but EBITDA in emerging markets rose 45.0 percent.  Overhead costs
        declined 37.1 percent.
   

     
            The company reported record revenues of $1.55 billion for the
        year and $378.4 million for the quarter, increases of 15.7 percent
        and 10.2 percent, respectively.  Excluding the project write-downs,
        records for operating income, net income and earnings per share were
        set for both the year and the quarter.
      

  
            The write-downs recorded in the fourth quarter 1995 totaled
        $93.3 million, before tax, and included write-offs of investments in
        and advances to various joint ventures, but primarily in New
        Orleans.

        
            The results for 1995 included records for revenues and operating
        income in the company's riverboat casino division for the quarter
        and year.  Leading the riverboat division results were revenue and
        operating income records in Joliet, Shreveport and North Kansas City
        for the year and quarter.  1995 results also include a full year of
        results from Harrah's Ak-Chin, operated for the Ak-Chin tribe south
        of Phoenix.
   

     
            At Harrah's Atlantic City, operating income for the quarter was
        down 7.8 percent from the prior year's fourth quarter record,
        primarily as a result of higher promotional costs and depreciation
        expense.  For the year, operating income at Harrah's Atlantic City
        was up 14.9 percent.
      

  
            Harrah's southern Nevada properties remained relatively flat
        with prior year results in both the fourth quarter and for the year.
        Harrah's Las Vegas finished the year down 1.2 percent from its prior
        year record operating income.  Laughlin's operating income edged up
        slightly during the fourth quarter from the prior year period, but
        was down for the year overall.

        
            In northern Nevada markets of Reno and Lake Tahoe, Harrah's
        operating income declined 9.9 percent from the prior year fourth
        quarter and 12.3 percent from the prior year.  The decline came from
        the Reno market, where a new competitor opened in August and bad
        weather had impacted business earlier in the year.
   

     
            "From an operations standpoint, Harrah's had a remarkable year.
        Our riverboat casino division continues to post excellent results,
        increasing its operating income by 29.3 percent over 1994," said
        Philip G. Satre, president and chief executive officer for Harrah's
        Entertainment.  "In Atlantic City, we were at our highest level
        since 1989, although we fell just short of an operating income
        record.  This excellent performance came as the property celebrated
        its 15th anniversary.
      

  
            "A pattern of improved results following investments in new
        capacity can certainly be found.  Casinos opened in emerging markets
        where we have invested heavily in the past three years showed
        substantial gains in earnings, while casinos in traditional markets
        have for the most part been unchanged.  We are now in the midst of
        further investments in some of the emerging markets, as well as
        launching several large investments in traditional markets," Satre
        pointed out.

        
            "In Nevada, we are pleased with northern Nevada results in light
        of the first significant new competition in the Reno market for
        decades. In southern Nevada, Harrah's Las Vegas has maintained a
        pace nearly equal to its record set two years ago," Satre continued.
        "It is this competitive performance in Las Vegas that encouraged us
        to announce the major expansion, renovation and repositioning of our
        property there, which will roll out over the next year and a half."
   

     
            "In addition to Las Vegas, Harrah's has begun a major hotel
        expansion and casino renovation in Atlantic City, and expansions and
        renovations in North Kansas City, Tunica and Joliet," Satre pointed
        out.
      

  
            "In New Orleans, we continue to work on a plan of reorganization
        of the Harrah's Jazz Company partnership under Chapter 11 bankruptcy
        protection," Satre commented.  "Since the result of any plan is
        undetermined at this time, the write-downs we have taken during the
        fourth quarter include our entire remaining investment in the
        project."

        
            During December, Harrah's opened a casino it is managing for the
        Upper Skagit Indian tribe north of Seattle, Washington.  Last
        weekend, Harrah's first international property, Harrah's Sky City in
        Auckland, New Zealand, opened its casino phase of a multi-use
        entertainment complex.
   

     
            Development costs were down for the year and quarter, and group
        staff costs overall declined 18.2 percent for the year and 34.0
        percent for the quarter.
      

  
            Corporate expense was down slightly for the fourth quarter 1995
        compared to the same period last year and slightly higher for the
        year.
        


            Interest expense for the fourth quarter was unchanged from prior
        year.  The 1995 fourth quarter included one and a half months of
        joint venture interest from New Orleans of $4.3 million, compared to
        $2.0 million in New Orleans joint venture interest during the same
        period in 1994.  For the year, the company's share of New Orleans
        interest expense was $19.2 million, accounting for all of the
        increase in the company's interest expense over the prior year.
        


            Both 1995 and 1994 total results include the contributions from
        discontinued hotel operations while owned by the company.  The
        company's hotel business was spun off in June 1995.  Costs
        associated with the spin-off of 21 cents per share also impacted
        1995 full year results. 1994 results were impacted by an 8 cents per
        share charge due to a change of accounting policy.
        


            Final earnings per share for 1995, including all project write-
        downs, six months of discontinued hotel results and the costs of the
        hotel spin-off were 76 cents per share compared to 76 cents per
        share in 1994.
        


            Harrah's Entertainment, Inc., the premier name in the casino
        entertainment industry, is the most geographically diversified
        casino company in North America.
        


                           HARRAH'S ENTERTAINMENT, INC.
                        CONSOLIDATED SUMMARY OF OPERATIONS
                                   (UNAUDITED)
        
                                   Fourth Quarter Ended   Fiscal Year Ended
        (In thousands, except      Dec. 31,  Dec. 31,    Dec.31,   Dec. 31,
        per share amounts)          1995      1994       1995       1994
        
        Revenues                  $378,434  $343,558  $1,550,076 $1,339,406
        
        Operating profit before
         preopening  costs, project
         write-downs and corporate
         expense                  $ 73,078  $ 63,903    $354,066 $  313,407
        Preopening costs              (450)       --        (450)   (15,313)
        Project write-downs        (93,348)       --     (93,348)        --
        Corporate expense           (9,311)   (9,832)    (30,347)   (28,907)
        
        Operating income (loss)    (30,031)   54,071     229,921    269,187
        Interest, net of interest
         capitalized               (22,314)  (22,166)    (94,416)   (78,322)
        Provision for settlement of
         litigation and related
         costs                          --   (50,942)         --    (53,449)
        Other income, including
         interest income               725       651      16,078      1,867
        
        Income (loss) before income
         taxes and minority
         interests                 (51,620) (18,386)     151,583    139,283
        Provision for income taxes  17,843   (9,746)     (60,677)   (75,391)
        Minority interests          (2,770)  (4,229)     (12,096)   (13,908)
        
        Income (loss) from continuing
         operations                (36,547) (32,361)      78,810     49,984
        Discontinued operations
         Earnings from hotel
          operations, net of tax
          provision of $9,833, $15,434
          and $22,570                  --    6,389       21,230      36,319
         Spin-off transaction expenses,
          net of tax benefit of
          $5,134                       --       --      (21,194)         --
        
        Income (loss) before cumulative
         effect of change in
         accounting  policy       (36,547) (25,972)      78,846      86,303
        Cumulative effect of change
         in accounting policy, net
         of tax benefit of $4,317      --       --           --      (7,932)
        
        Net income (loss)        $(36,547) $(25,972)    $78,846  $   78,371
        
        Earnings (loss) per share
         Continuing operations   $  (0.35) $  (0.31)      $0.76  $     0.49
         Discontinued operations
          Earnings from hotel
           operations, net             --      0.06        0.21        0.35
          Spin-off transaction
           expenses, net               --        --       (0.21)         --
         Cumulative effect of change
          in accounting policy, net    --        --          --       (0.08)
        
          Net income (loss)      $  (0.35) $  (0.25)      $0.76  $     0.76
        
        Average common shares
         outstanding              103,218   102,810     103,188     102,810


        CONTACT:  Ralph Berry, Harrah's Entertainment, Inc.,
        901-762-8629

Piercing Pagoda announces record third quarter and nine month results
; Company Announces Acquisition of 37 Locations From The Earring Tree
        


            BETHLEHEM, Pa. -- Feb. 7, 1996 -- Piercing Pagoda,
        Inc.  (Nasdaq: PGDA) today announced record operating results for
        the third quarter of fiscal 1996 which ended December 31, 1995.  
        


            Net sales in the third quarter ended December 31, 1995 increased
        36% to $49.1 million from $36.1 million in the same period last
        year. Net income increased 30% to $5.7 million, or $1.07 per share
        for the third quarter compared to pro forma net income of $4.4
        million, or $0.86 per share, a year ago.  Comparable store net sales
        increased 7% in the third quarter.  The Company ended the quarter
        with 463 stores, an increase of 122 stores, or 36%, compared to 341
        at December 31, 1994
        


            In the nine months ended December 31, 1995, net sales increased
        38% to $94.5 million from $68.4 million in the same period last year
        and comparable store net sales increased 11%.  In the first nine
        months of fiscal 1996, net income increased 44% to a record $5.9
        million, or $1.11 per share, compared to pro forma net income of
        $4.1 million, or $0.97 per share, reported in the first nine months
        of fiscal 1995.  
        


            In a separate announcement, Piercing Pagoda stated that it will
        acquire an additional 37 locations from href="chap11.earring.html">The Earring Tree, Inc.,
        which is in bankruptcy, bringing the total number of locations
        acquired to 63.  The acquisition includes the leases for 23 kiosks
        and 14 in-line stores along with the physical kiosks and fixtures at
        such locations. There will be no inventory purchased.  
        


            John F. Eureyecko, Executive Vice President and Chief Financial
        Officer, commented, "Our strong earnings performance is particularly
        gratifying given the bad winter weather in the northeast during two
        busy shopping weeks in December and the extra costs associated with
        the acceleration of our aggressive new store opening schedule.  
        


           Mr. Eureyecko continued, "The acquisition of the 37 Earring Tree
        stores provides us with an additional opportunity to add desirable
        kiosk locations to our portfolio, as well as several key in-line
        stores.  While we remain focused on our kiosk operations, our in-
        line store sales have been very successful and, subsequently, this
        acquisition allows us the opportunity to continue to expand this
        concept.  The acquisition further underscores our commitment to
        growth through store expansion and reaffirms our commitment to
        developing complimentary retail concepts."  
        


            Piercing Pagoda, Inc.  is the largest specialty retailer of
        jewelry through kiosk stores in the United States, operating 468
        Piercing Pagoda and Plumb Gold stores in regional shopping malls
        throughout the country.  The Company offers an extensive selection
        of popular-priced 14 and 10 karat gold earrings, chains, charms and
        bracelets, as well as a selection of rings and silver jewelry, all
        in basic styles at everyday low prices.

        
                                    PIERCING PAGODA, INC.
                            Summary of Operations (Unaudited)
                          (In thousands, except per share data)
        
                         Three Months Ended       Nine Months Ended
                             12/31/95  12/31/94      12/31/95   12/31/94 Net
        sales             $49,141   $36,089      $94,528     $68,395 Gross
        profit           23,244    17,016       42,409      30,461 Income
        from operations  9,753     7,611       10,463       8,117 Net income
        (loss)       5,700     4,394 (A)    5,907       4,137 (A)
        
        Earnings (loss)
         per share            $  1.07   $  0.86 (A)  $  1.11      $ 0.97 (A)
        Weighted average
        
         shares outstanding     5,350     5,098 (A)    5,319       4,280 (A)

        
        (A) Reflects pro forma results of operations.  Upon consummation of
        the Company's initial public offering in October 1994, the Company   
        was converted to a "C" corporation from an "S"corporation.  
        Accordingly, pro forma net income presents the results of
        operations as if the Company had been taxed as a "C" corporation
        for the entire period reported.  Net loss for the three month
        and nine month periods ended December 31, 1994 was $3,895 and
        $3,509 respectively.
        
        CONTACT: John F. Eureyecko
                 Executive Vice President and
                 Chief Financial Officer
                 (610) 691-0437
                         or
                 Naomi Rosenfeld/Eileen Howard/
                 Stefanie King
                 Media contact: Suzanne Miller
                 Morgen-Walke Associates
                 (212) 850-5600



PENNSYLVANIA ATTORNEY GENERAL SEEKS CONSUMER RESTITUTION
FROM PITTSTON COMPANY

        
            HARRISBURG, Pa., Feb. 7, 1996 - The Office of Attorney
        General seeks more than $100,000 in restitution for consumers in an
        action filed today against a Luzerne County home construction and
        improvement business.
        


            The suit filed in U.S. Bankruptcy Court for the Middle District
        of Pennsylvania by the Attorney General's Bureau of Consumer
        Protection identifies the defendants as A. Dan Notari and Lorraine
        Notari, doing business as Notari Construction from their home at 12
        Curtis St., Pittston.
        


            Attorney General Tom Corbett said the defendants have filed a
        Chapter 7 bankruptcy action.
        


            The suit alleges that the defendants took about $155,500 from
        four consumers for home construction and home improvement projects
        that were never completed.  Work that was completed was done in a
        shoddy fashion, according to the suit.
        


            The suit charges that the defendants' actions violated the
        state's Unfair Trade Practices and Consumer Protection Law, and it
        asks the court to order the defendants to make restitution to
        affected consumers and to pay civil penalties to the state.
        


            The action was filed by Deputy Attorney General James M. Sysko
        of the Bureau of Consumer Protection's Scranton office.
        


            "The consumers in these cases have suffered serious financial
        losses," Sysko said.  "It is our position that these debts should
        not be dischargeable under the bankruptcy action."
        


        CONTACT:  Jack Lewis, Press Secretary of the Office of Attorney
        General, 717-787-5211, or at home, 717-657-9840



Parker & Parsley 1995 financial & operating results


            MIDLAND, Texas -- Feb. 7, 1996 -- Parker & Parsley
        Petroleum Company ("Parker & Parsley") (NYSE:PDP) today announced
        financial and operating results for the quarter and fiscal year
        ending Dec. 31, 1995.  
        


            Comparing the fourth quarter of 1995 to the same period in 1994,
        production cost fell $.45 per barrel of oil equivalent (BOE),
        general and administrative (G&A) expense declined $.25 per BOE,
        interest expense was down $.04 per BOE and DD&A dropped $1.00 per
        BOE.  For the fiscal year, net cash provided by operating activities
        before working capital and other changes increased 14% to $155.2
        million.  

        
            Chairman and President, Scott D. Sheffield stated, "The fourth
        quarter cost data and the increase in cash flow for the year
        indicate material improvement in a number of key areas and are a
        direct result of the hard work and dedication of our employees.  
   

     
           "Comparing the fourth quarter of 1995 to 1994, production costs,
        general and administrative expense, and interest expense are all
        decreasing both in total dollars and on a BOE basis.  The reduction
        of these costs has improved our operating margin by $.74 per BOE and
        our net earnings by $1.74 per BOE from the fourth quarter of 1994.  
      

  
            "Except for the asset impairment charge, we would have reported
        net income in the fourth quarter of 1995.  We are extremely
        encouraged by these results and the success of our 1995 drilling
        program which contributed to the replacement of 281% of the reserves
        produced in 1995.  We will continue to build on this solid
        foundation in 1996."  
        


        Fourth Quarter 1995
        


            Parker & Parsley reported decreases in costs and expenses in
        most of the major categories when compared to the fourth quarter of
        1994. Production costs dropped to $29.1 million or $4.48 per barrel
        of oil equivalent (BOE) in 1995 from $38.2 million or $4.93 per BOE,
        a 9% decline per BOE from 1994.  
        


            Contributing to the drop was the sale of non-strategic, high
        production cost or low margin properties, as well as a concentrated
        effort to justify and reduce all operating costs.  Specific
        opportunities for significant reductions are being studied and
        should impact 1996 results.  G&A expense fell 31% to $7.4 million
        from $10.8 million and 18% per BOE to $1.14 from $1.39 in the fourth
        quarter of 1994.  G&A declined due to restructuring both the
        domestic and Australian organizations.  

        
            Interest expense was reduced to $14.7 million from $17.8 million
        because of reductions in long term debt.  The fourth quarter 1995
        DD&A expense for oil and gas properties decreased 17% on a BOE basis
        to $4.80 from $5.80 in the fourth quarter of 1994 as a result of
        impairment charges and the reserve additions from the Company's
        successful 1995 drilling program.  
   

     
            Revenues and production declined to $123.6 million and 6.5
        million BOE in the fourth quarter of 1995 compared to $146.0 million
        and 7.7 million BOE in the same period in 1994.  Daily oil
        production decreased to 33,960 barrels from 40,084 barrels and daily
        gas production decreased to 220.3 Mmcf from 264.9 Mmcf in the fourth
        quarter of 1994.  

        
            The decreased revenues and production are a direct result of the
        Company's 1995 divestiture of non-strategic assets for which
        aggregate proceeds of $175.1 million were received.  
   

     
            Parker & Parsley reported a net loss of $15.7 million ($.44 per
        share) compared to a net loss of $9.5 million ($.28 per share) in
        the fourth quarter of 1994.  The after tax effect of the non-cash
        asset impairment charge associated with SFAS No. 121 "Impairment of
        Long Lived Assets" of $19.0 million ($.54 per share) as reported in
        December 1995 was the primary cause for the increase in net loss
        from 1994.  
      

  
        Fiscal Year 1995

        
            For the year ended Dec. 31, 1995, net cash provided by operating
        activities before working capital and other changes totaled $155.2
        million in 1995, up 14% from the $135.6 million reported in 1994.  
   

     
            Increased oil and gas production coupled with stronger oil
        prices and declining production costs were the leading contributors
        to the improved cash flow.  Long-term debt dropped to $589.2 million
        at year end 1995, down $122.8 million or 17% from $712.0 million at
        year end 1994.  
      

  
            Revenues increased 4% to $513.7 million from $496.2 million in
        1994 and costs and expenses, before asset impairment charges,
        increased 3% to $533.3 million from $516.7 million.  Oil and gas
        production revenues improved 11% to $375.7 million from $337.6
        million, primarily from increased prices and higher production.
        Average oil prices improved 10% to $16.96 from $15.40 in 1994 and
        average gas prices were virtually unchanged at $1.84 in 1995 and
        $1.89 in 1994.  
        


            Production was at the highest level in Parker & Parsley's
        history despite the mid-year sale of non-strategic properties,
        increasing 7% to 27.1 million BOE from 25.4 million BOE in 1994.
        Daily oil production moved up to 35,348 barrels from 33,279 barrels
        in 1994, while daily gas production was 233.7 Mmcf, up from 218.3
        Mmcf.  
        


            International daily production, primarily Australia, averaged
        4,312 barrels in 1995 and 4,780 barrels in 1994 and 23.6 Mmcf
        compared to 25.2 Mmcf in 1994.  Non-strategic properties sold during
        1995 contributed production for approximately one half of 1995.  
        


            Year end 1995 reserves were also at record levels despite
        property sales and record production levels.  Sheffield remarked,
        "Even with production of 27.1 million BOE and property sales of 34.8
        million BOE in 1995, Parker & Parsley increased its 1995 total
        proved reserves by 5% to 297 million BOE.  We added 76 million BOE
        representing a reserve replacement rate of 281% of the 1995
        production, and the acquisition and finding cost was only $2.73 per
        BOE."  
        


            The acquisition and finding cost for 1995 contributed to a 5%
        drop in the three year average acquisition and finding cost to $4.79
        per BOE and a 7% drop in the five year average to $4.37 per BOE.  
        


            Under the Company's expanded exploitation and exploration
        program, 516 wells were spudded in 1995.  Capital expenditures in
        1995 totalled $208.1 million with $159.6 invested in drilling
        opportunities and the remainder invested in strategic property
        acquisitions at the division level.  The Company plans to drill more
        than 475 wells during 1996 with a capital budget of at least $175
        million.  

        
            Production costs per BOE declined 3% to $4.83 in 1995 from $5.00
        in 1994 primarily due to the sale of marginal properties and ongoing
        cost control efforts.  General and administrative expense, adjusted
        for $10.6 million of non-recurring charges, decreased to $1.07 per
        BOE.  
   

     
            Parker & Parsley realized a net loss of $99.8 million ($2.83 per
        share) compared to a 1994 loss of $14.6 million ($.49 per share).  
      

  
        The net loss for 1995 includes several nonrecurring items:
        


            $84.8 million after tax charge ($2.40 per share) associated with
        the early adoption of SFAS No. 121 "Impairment of Long-Lived
        Assets,"  
        


            $4.4 million after tax charge ($.12 per share) for financing
        fees associated with the Company's acquisition activities which had
        previously been capitalized and expenses associated with existing
        legal matters included in other expenses,
        


            $6.9 million ($.20 per share) after tax charge relating to the
        amortization of deferred compensation awarded in 1993 and
        organizational realignment changes included in general and
        administrative expenses, and
        


            $10.8 million ($.31 per share) after tax gain on disposition of
        non-strategic assets.  

             
            Parker & Parsley Petroleum Company is one of the largest public
        independent oil and gas exploration and production companies in the
        United States.  Parker & Parsley's oil and gas properties are
        located in the United States principally in the Permian Basin of
        West Texas, the onshore Gulf Coast region of South Texas and
        Louisiana, the Mid-Continent region, Argentina and in Australia.  
        


        CONTACT:  Parker & Parsley, Midland;
                  Hermann E. Eben, 915/683-4768