TCR_Public/960209.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For - February 9, 1996



  1. L.A. Gear reports financial results for fourth quarter and fiscal year
  2. Figgie International reports 1995 and fourth-quarter results
  3. INBRAND Corporation expands European presence
  4. Grand Union announces third quarter and 40 weeks results
  5. Huntway Partners, L.P. announces fourth-quarter results
  6. Spectrum Information Technologies announces earnings; files proposed plan of reorganization



L.A. Gear reports financial results for fourth quarter and fiscal year


           Santa Monica, Calif. -- Feb. 9, 1996 -- L.A. Gear
        Inc. (NYSE: LA) Friday announced its financial results for the year
        and fourth quarter ended Nov. 30, 1995.  
        


            Net sales for the year ended Nov. 30, 1995 were $296.6 million
        compared to $416.0 million for the prior year.  The Company reported
        a 1995 net loss before preferred dividends and a loss applicable to
        common stock of $51.4 million ($2.24 per share) and $59.1 million
        ($2.58 per share), respectively, compared to a 1994 net loss before
        preferred dividends and a loss applicable to common stock of $22.2
        million ($0.97 per share) and $29.7 million ($1.29 per share),
        respectively.  

        
            For the quarter ended Nov. 30, 1995, the Company reported a net
        loss before preferred dividends of $34.3 million ($1.49 per share)
        and a loss applicable to common stock of $36.3 million ($1.58 per
        share) on net sales of $53.8 million.
   

     
            During the year-earlier period, net sales were $84.7 million,
        the net loss before preferred dividends was $14.9 million ($0.65 per
        share) and the loss applicable to common stock was $16.8 million
        ($0.73 per share).  
      

  
            The corporate reorganization plan adopted by the Company in
        September 1995 resulted in a restructuring charge of $5.1 million in
        the fourth quarter of 1995, primarily relating to the elimination of
        approximately 160 full time jobs, the closure of the Company's
        retail outlet division and the consolidation of office space at the
        corporate headquarters.  
        


            In addition, during the fourth quarter of 1995 the Company
        incurred non-recurring charges of $5.6 million in connection with
        (i) a $4.6 million increase in the reserve for unused barter credits
        and (ii) a $1.0 million write off of goodwill related to the
        acquisition of its Mexican business in June 1994.  
        


            Fiscal 1994 results included non-recurring charges of
        approximately $2.5 million related to the realignment of senior
        management.  Domestic net sales decreased by 35.3 percent from the
        prior year primarily from, among other things, lower domestic sales
        of children's lighted product, a decrease in the average selling
        price per pair and an overall drop in the total number of pairs
        sold.
        


            International net sales, which accounted for approximately 35.1
        percent and 28.5 percent of the Company's total net sales for 1995
        and 1994, respectively, decreased by 12.1 percent from the previous
        year.  
        


            This decrease was primarily due to reduced sales in Mexico,
        Central and South America and Poland partially offset by increased
        sales by the European subsidiaries and by the Company's Far East
        joint venture.  
        


            The gross margin increased to 29.9 percent for 1995 from 29.7
        percent in 1994 primarily due to higher margins recognized on
        international sales of children's lighted products, partially offset
        by domestic sales of, and reserves for, selected discontinued
        styles.
        


            Exclusive of restructuring and non-recurring charges, total
        selling, general and administrative expenses decreased by $10.5
        million or 7.4 percent to $130.9 million during 1995 from $141.4
        million during 1994.  The reduction was primarily due to general
        cost control and containment efforts and lower product sourcing fees
        as a result of less sales.  
        


            Cash and cash equivalent balances totaled $36.0 million and
        $49.7 million at Nov. 30, 1995 and 1994, respectively.  There were
        no domestic borrowings under the Company's bank facility at any time
        during fiscal 1995.  
        


            The Company had a combined domestic and international order
        backlog of $88.0 million and $170.5 million at Dec. 31, 1995 and
        1994, respectively.  
        


            The lower backlog at Dec. 31, 1995 is primarily due to (i) the
        inclusion in the backlog at Dec. 31, 1994 of the entire $80 million
        minimum purchase commitment for fiscal 1995 under the Company's
        agreement with Wal-Mart and (ii) an approximate $19.6 million
        decrease in orders for children's lighted product.  
        


            The backlog at Dec. 31, 1995 includes the balance of Wal-Mart's
        $80 million minimum purchase commitment for fiscal 1995 ($29.5
        million), substantially all of which the Company expects Wal-Mart to
        fulfill in the first quarter of the Company's fiscal 1996.  
        


            L.A Gear designs, develops and markets a broad range of quality
        athletic and lifestyle footwear for adults and children.


        
                    L.A. Gear Inc. and subsidiaries
                 Consolidated Statements of Operations
               (in thousands, except per share amounts)
        
                                    Three months ended       Year ended
                                        Nov. 30,              Nov. 30,
                                      (unaudited)      
                                   1995        1994       1995       1994
        
        Net sales                    $ 53,791   $ 84,732   $ 296,551  $
        415,966
        Cost of sales                  43,294     62,141     207,802
        292,629
          Gross profit             10,497     22,591      88,749    123,337
        Selling, general and
         administrative expenses       43,992     34,863     141,603
        143,913
        Litigation settlements, net       (18)     1,932      (2,323)
        (1,268)
        Interest expense, net             700        504       2,190
        2,993
          Loss before income
           taxes and
           minority interest      (34,177)   (14,708)    (52,721)   (22,301)
        Income taxes
        --         --          --         --
        Minority interest                 (83)      (221)      1,324
        106
          Net loss                (34,260)   (14,929)    (51,397)   (22,195)
        Dividends on mandatorily
         redeemable preferred stock    (1,998)    (1,875)     (7,746)
        (7,500)
          Loss applicable
           to common stock       $(36,258)  $(16,804)   $(59,143)  $(29,695)
        Loss per common share
         before preferred dividends  $  (1.49)  $  (0.65)   $  (2.24)  $
        (0.97)
        Loss per common share        $  (1.58)  $  (0.73)   $  (2.58)  $
        (1.29)
        Weighted average common
         shares outstanding            22,937     22,937      22,937
        22,937
        -0-
        
                        L.A. Gear Inc. and subsidiaries
                    Selected Consolidated Balance Sheet Data
                                (in thousands)
        
                                             Nov. 30,     Nov. 30,  
                                              1995         1994
        
        Cash and cash equivalents              $ 35,956      $ 49,710   
        Accounts receivable, net                 46,630        77,284
        Inventories                              51,677        57,597
        Working capital                         103,999       147,848
        Convertible subordinated debentures      50,000        50,000
        Mandatorily redeemable preferred
         stock plus accrued and
         unpaid dividends                       107,746       100,000
        Accumulated deficit                    (169,281)     (110,138)
        Total shareholders' (deficit) equity    (40,627)       18,149
        

        CONTACT:  L.A. Gear, Inc.,
                  Jeffrey Rotondo, 310/581-7568  
        

Figgie International reports 1995 fourth quarter
earnings of 13 cents per share from continuing operations and loss of 31 cents
from discontinued operations; 1995 full-year net loss is 89 cents per share


            WILLOUGHBY, Ohio -- Feb. 9, 1996 -- Figgie
        International Inc. (NASDAQ/NMS: FIGIA and FIGI) today reported 1995
        fourth quarter income from continuing operations of $2.4 million, or
        13 cents per share, compared with a 1994 fourth quarter loss of
        $48.1 million, or $2.74 per share, from continuing operations.  
        


            Losses from discontinued operations in 1995's fourth quarter
        were $5.6 million, or 31 cents per share, compared with 1994 fourth
        quarter losses from discontinued operations of $64.6 million, or
        $3.68 per share.  

        
            Net losses for 1995's fourth quarter were $3.2 million, or 18
        cents per share, compared with 1994 fourth quarter net losses of
        $112.7 million, or $6.42 cents per share.  
   

     
            Figgie International Chairman and CEO John P. "Jack" Reilly
        said, "On a continuing operations basis, steady progress has been
        made in each succeeding quarter in 1995, moving progressively from
        first and second quarter losses of 44 cents and 32 cents per share
        to third and fourth quarter profits of 5 cents and 13 cents per
        share.  Continued improvements in both sales and earnings in 1996 is
        anticipated.  
      

  
            "Our fourth quarter reserve adjustment from discontinued
        operations reflects a 1% addition to our restructuring plan," Reilly
        added.  "Those adjustments include the results of a recently
        completed auction of excess equipment.  

        
            "The restructuring plan announced on Feb. 15, 1995, was
        exceedingly ambitious, and I'm pleased it was virtually completed
        last year.  We've made excellent progress with our strategic
        business plan that was designed to sell 16 business units to pay
        down debt.  Interstate Engineering and Hartman Electrical remain to
        be sold, and we currently expect these transactions to be completed
        in the first quarter."  
   

     
        Fourth Quarter Results
      

   
            Fourth quarter sales from continuing operations in 1995
        increased 7% to $92.7 million versus $86.5 million in the fourth
        quarter of 1994.  Third quarter 1995 sales from continuing
        operations were $92.3 million.  
        


            The company's three operating segments -- Interstate
        Electronics, Snorkel and Scott/Taylor Environmental -- were all
        profitable in the fourth quarter.  Consolidated operating income
        totaled $5.5 million, compared with a $4.4 million loss in 1994's
        fourth quarter.  
        


            Refinancing costs in the fourth quarter of 1995 were $1.0
        million, down significantly from the first and second quarter's $4.5
        million and $5.5 million and comparable to $756,000 in 1995's third
        quarter.  First and second quarter costs were predominantly lender
        fees related to the August 1, 1994 Override Agreement and March 31,
        1995 Override Extension.  On Dec. 19, 1995, Figgie International
        announced an agreement with GE Capital Services on a new $75 million
        credit facility that replaced the company's Override Agreement.  

        
            Interest expense for the fourth quarter of 1995 was $6.3
        million, compared with fourth quarter 1994's interest expense of
        $10.9 million.  The downward trend resulted from significantly
        reduced debt levels.  For the year, interest expense was $29.4
        million, compared with $42.1 million in 1994.  
   

     
        1995 Full-Year Results
      

   
            Net sales from continuing operations in 1995 totaled $359.0
        million, a 12% increase over 1994's net sales from continuing
        operations of $319.4 million.  
        


            "Although we hit our 1995 corporate sales target, I am not
        totally satisfied with our overall performance," said Reilly.
        "Interstate Electronics' sales were lower, although more than offset
        by higher sales at Snorkel and Scott Aviation."  
        


            The company reported a full-year 1995 after-tax loss from
        continuing operations of $10.5 million, or 58 cents per share,
        versus a 1994 after-tax loss of $85.2 million, or $4.81 per share.  
        


            The 1995 net loss, including discontinued operations, was $16.1
        million, or 89 cents per share, compared with 1994's net loss of
        $166.7 million, or $9.41 per share.  
        


            Selling, General and Administrative expenses for 1995 were $55.6
        million, a 19% improvement over 1994's SG&A of $68.5 million.  SG&A
        expenses as a percentage of net sales in 1995 were 15.5%, compared
        with 21.4% in 1994.  Significant reductions in corporate general
        administrative expenses were responsible for most of the
        improvement.
        


            Research and development costs for 1995 were $14.0 million, down
        24% from 1994's $18.5 million.  The primary reason for the drop was
        high initial development costs of Interstate's new commercial
        products in 1994.  
        


            "Reducing corporate G&A costs continued to be a top management
        priority," said Reilly.  "We achieved a 47% savings this year in
        headquarters expense reductions and realized benefits from actions
        taken in 1994 to eliminate consultants and corporate aircraft.
        Additional corporate expense reductions are planned for this year,
        reducing 1995's corporate overhead of $18.4 million to a targeted
        $15 million."  
        


        Debt Progress
         


            As of Dec. 31, 1995, total debt was $214.3 million with no short-
        term debt outstanding.  This debt consists of: $174 million in
        9.875% Senior Notes due in October 1999; $8 million of 10.375%
        Subordinated Debentures due in April 1998; and $30.3 million in
        mortgages that extend into the next century.  
        


            Since June 30, 1994, the company has eliminated $564 million in
        debt and leases.  It has paid down $317 million in funded lender
        debt, eliminated $208 million in off balance sheet leases, paid down
        $33 million in mortgages, and reduced capital leases by $6 million.
        


            In addition, by the end of January 1996, $16 million of
        mortgages and $9 million of leases were eliminated.  
        


        Segment Performance
         


            Summarizing comparable segment performance for the fourth
        quarter and full year:
        


            Interstate Electronics recorded 1995 fourth quarter sales of
        $22.6 million, compared with 1994 fourth quarter sales of $33.3
        million.  For the 1995 full year, Interstate had sales of $98.3
        million versus $113.6 million 1994.  Interstate's sales reflect
        lower levels of military spending for several IEC programs,
        including strategic weapons and Global Positioning Satellite (GPS)
        systems, and delayed introduction of GPS and bandwidth-on-demand
        satellite communication products for the commercial marketplace.  

        
            Gross profits for 1995's fourth quarter were $6.7 million, or
        29.6% of sales, compared with 1994 fourth quarter gross profits of
        $10.6 million, or 31.8% of sales.  For the full 1995 year,
        Interstate had gross profits of $27 million, or 27.5% of sales,
        versus 1994 gross profits of $30.8 million, or 27.1% of sales.  
   

     
            "Interstate aggressively managed its costs," said Reilly.
        "While development and regulatory approval of Interstate's new
        commercial products took three to six months longer than
        anticipated, we still have a high confidence level in the viability
        of these products in the commercial market."  
      

  
            Snorkel, benefiting from strong industry-wide demand for aerial
        work platform products, recorded 1995 fourth quarter sales of $35.7
        million, compared with 1994 fourth quarter sales of $21.6 million.
        For the 1995 full year, Snorkel had sales of $130.0 million versus
        $87.0 million in 1994.  
        


            Snorkel's domestic market continued to be robust.  In addition,
        international sales were strong in Southeast Asia, Latin America and
        Middle East markets.  At the end of 1995, Snorkel's backlog was $81
        million, representing a more than twofold increase over 1994's year-
        end backlog of $34 million.  
        


            Snorkel's gross profits for 1995's fourth quarter were $7.2
        million, or 20.3% of sales, compared with 1994 fourth quarter gross
        profits of $1.9 million, or 8.6% of sales.  For the full year,
        Snorkel had gross profits of $23.7 million, or 18.2% of sales,
        compared with $13.2 million, or 15.2% of sales, in 1994.  
        


            "Snorkel's unit production registered steady gains throughout
        the year," said Reilly.  "These gains, coupled with the elimination
        of manufacturing inefficiencies, resulted in improved gross margins.
        Snorkel's margins should continue improving in 1996.  The backlog
        reflects a mix change toward the more profitable aerial booms, and
        the company is introducing several exciting new products."  

        
            Scott/Taylor Environmental recorded 1995 fourth quarter sales of
        $34.4 million, compared with 1994 fourth quarter sales of $31.6
        million.  For the full year, Scott/Taylor Environmental had sales of
        $130.8 million versus $118.8 million in 1994.  
   

     
            Gross profits for 1995's fourth quarter were $10.7 million, or
        31.0% of sales, compared with 1994 fourth quarter gross profits of
        $9.9 million, or 31.5% of sales.  For the full year, Scott/Taylor
        Environmental had gross profits of $42.0 million, or 32.1% of sales,
        versus 1994 gross profits of $38.7 million, or 32.6% of sales.  
      

  
            "Scott Aviation registered very strong sales for its aviation
        business," said Reilly.  "Scott is benefiting from the depletion of
        surplus inventory from bankrupt and consolidated airlines and the
        crackdown by the Federal Aviation Administration on non-certified
        parts.  In addition, Scott had strong government sales for its
        Emergency Escape Breathing Devices.  Sales of Scott's signature
        product line of self-contained breathing apparatus also remain
        strong.  
        


            "Scott is an outstanding division with excellent prospects for
        growth bolstered by new product introductions and a $48 million 1995
        year-end backlog compared with $21 million in 1994.  
        


            "Taylor Environmental's sales were flat, affected by weakness in
        the retail hardware market.  An aggressive cost-reduction program
        has helped improve gross margins.  Taylor will also benefit from new
        product introductions planned for 1996."  

        
        1996 Outlook
   

      
            "The restructuring program is essentially behind us," said
        Reilly.  "We anticipate continued sales growth at Scott/Taylor
        Environmental and Snorkel, and a return to growth at Interstate
        Electronics driven by recently launched commercial products.  
      

  
            "Each of our four core businesses is a market leader, possessing
        significant growth opportunities, particularly in international
        markets.  New product introductions are an integral part of our
        growth strategy.  Our challenge for 1996 is to capitalize on this
        potential in a timely manner and convert it to revenue and profit
        growth.  Our companywide focus is on delivering enhanced shareholder
        value from a dramatically restructured operating and financial
        base," stated Reilly.

        
                        FIGGIE INTERNATIONAL INC.
                             FINANCIAL DATA
          For the Periods Ended December 31, 1995 and 1994
          (In thousands of dollars except per share data)
        
                                  For the Three Months Ended December 31
                                               1995          1994    
        Continuing Operations
        Net Sales                               $  92,727      $  86,487
        
        Pretax Income (Loss)                        2,401        (61,011)
        
        Income Tax Benefit                            ---         12,933
        
        Net Income (Loss) before Discontinued
          Operations                                2,401        (48,078)
        
        Loss from Discontinued Operations,
          net of tax                               (5,597)       (64,601)
        
        Net Loss                               $   (3,196)     $(112,679)
        
        Weighted Average Shares                    18,285         17,553
        
        Earnings per Share
        Income (Loss) from Continuing Operations    $0.13         ($2.74)
        Loss from Discontinued Operations          ($0.31)        ($3.68)
        Net Loss                                   ($0.18)        ($6.42)
        
                                 For the Twelve Months Ended December 31
                                               1995          1994    
        Continuing Operations
        Net Sales                               $ 359,032      $ 319,420
        
        Pretax Income (Loss)                      (10,493)      (108,233)
        
        Income Tax Benefit                            ---         22,986
        
        Net Income (Loss) before
          Discontinued Operations                 (10,493)       (85,247)
        
        Loss from Discontinued Operations,
           net of tax                              (5,597)       (81,483)
        
        Net Loss                                $ (16,090)     $(166,730)
        
        Weighted Average Shares                    18,202         17,723
        
        Earnings per Share
        Income (Loss) from Continuing
           Operations                              ($0.58)        ($4.81)
        Loss from Discontinued Operations          ($0.31)        ($4.60)
        Net Loss                                   ($0.89)        ($9.41)
        
                           Figgie International
                        Consolidated Balance Sheet
                        December 31, 1995 and 1994
                          (Amounts in Thousands)
        
                                                1995            1994   
        Current Assets
           Cash and Cash Equivalents              $ 25,583        $ 28,611
           Restricted Cash                             273          18,716
           Accounts Receivable - net                56,668          46,914
           Inventory - net                          46,458          38,845
           Prepaid Expenses                          1,537           3,225
           Recoverable Income Taxes                  9,924           8,108
           Net Assets Related to Discontinued
              Operations                            35,864         298,411
        
                                               176,307         442,830
        
        Property, Plant & Equipment - net           91,067         106,083
        
        Other Assets
           Deferred Divestiture Proceeds            33,935          19,190
           Intangibles                              19,447          20,244
           Prepaid Rent on Leased Equipment         17,075          17,075
           Prepaid Pension Costs                     9,892           9,964
           Other                                    17,185          25,078
                                                97,534          91,551
        
        Total Assets                              $364,908        $640,464
        
        Current Liabilities
           Debt Due Within One Year           $        ---        $171,641
           Accounts Payable                         30,512          55,398
           Accrued Expenses                         52,359          77,595
           Current Maturity of Long-Term Debt       19,373           7,179
                                               102,244         311,813
        
        Long-Term Debt                             194,955         234,491
        
        Other Long-Term Liabilities                 18,116          28,938
        Total Liabilities                          315,315         575,242
        
        Stockholders' Equity                        49,593          65,222
        
        Total Liabilities & Equity                $364,908        $640,464


        CONTACT:  Figgie International Inc., Willoughby,
                  Keith Mabee/Ira Gamm, 216/953-2810                            

       
INBRAND TO ACQUIRE ASSETS OF FRENCH- BASED MANUFACTURER
OF ADULT INCONTINENCE PRODUCTS AND BABY DIAPERS; COMPANY HAS AGREEMENT IN
PRINCIPLE TO ACQUIRE MARKETING ORGANIZATION IN NETHERLANDS
        


            ATLANTA, GA -- Feb. 9, 1996 -- INBRAND Corporation
        (Nasdaq/NM:INBR) today announced two actions which will
        significantly expand the Company's operating presence in Europe.
        INBRAND initially entered the European market through the
        acquisition in July 1995 of Hygieia Healthcare Holdings and related
        companies based in Newcastle, England.  The agreements announced
        today are expected to add in excess of $100 million to the Company's
        annual sales which, for the fiscal year ended July 1, 1995, totaled
        $85.0 million.  
        


            Through a newly formed subsidiary, INBRAND Europe, the Company
        has made a successful bid to purchase certain assets of Celatose,
        S.A., a French-based manufacturer of adult incontinence products and
        baby diapers.  Celatose has been operating under the protection of
        the French bankruptcy act, and the Company's bid was accepted by the
        French court.  Terms of the Company's offer were not disclosed.  
        


            In a related development, INBRAND has signed an agreement in
        principle to acquire Julian T. Holding B.V., a marketing
        organization based in the Netherlands.  Completion of a definitive
        purchase agreement is subject to certain conditions, including the
        satisfactory due diligence by INBRAND relating to the transaction.
        Terms of the agreement include a contract with the principals of
        Julian T. Holding B.V. covering management of INBRAND Europe as well
        as a minority ownership in that subsidiary.  INBRAND will have an
        option to purchase that minority interest based on the future
        profitability of INBRAND Europe.  
        


            "These transactions represent an exceptional opportunity to
        build on our current European base,"  remarked Garnett A. Smith,
        chairman and chief executive officer of INBRAND.  "Although Celatose
        had recent financial difficulties, we are confident that the
        underlying facilities and organization can be operated profitably.
        With our bid, we submitted a comprehensive restructuring plan which
        we believe will serve as an effective blueprint for the management
        of these assets.  Celatose had a leading market position in the
        manufacturing of adult incontinence products and disposable baby
        diapers.  Our plan is to capitalize on that standing.  Julian T.
        Holding B.V., which is a well-established marketer of these products
        in the Benelux countries through its Vital Disposables subsidiary,
        is expected to be an important catalyst in executing our strategy.
        Our plans include organizing the European operations which we are
        acquiring as INBRAND Europe, and we are pleased that Jan van
        Grinsven, founder of Julian T. Holding B.V., will be the managing
        director of this new operating unit."  
        


            Smith indicated that these new operations fit well with the
        Company's Hygieia organization.  "We believe there are considerable
        opportunities to blend Hygieia's expertise with technologically
        advanced feminine hygiene products with Celatose's product line.
        This will essentially enable us to offer retailers a complete line
        of disposable, absorbent products.  This acquisition also provides
        us immediate marketing access to the National Health Service in the
        United Kingdom which is an important customer of Julian T. Holding's
        subsidiary there.  

        
            "From a broader perspective, these steps serve importantly to
        enhance INBRAND's overall competitive position.  Although our focus
        through fiscal 1995 had been entirely on customers in the United
        States, we had recognized that the market for our products was
        international in scope.  The Hygieia acquisition served as an
        initial point of entry into other geographic areas, and we will now
        accelerate that initiative by acquiring these established
        organizations."  
   

     
            INBRAND provides a broad line of disposable adult incontinence
        products to both the retail and clinical markets.  Retailers
        generally market INBRAND's products as their private brand of
        incontinence products.  Sales to healthcare providers and other
        clinical users are primarily through the Company's Medical
        Disposables trademark.  Including the acquired operations, INBRAND
        has manufacturing and distribution operations in the U.S., Canada,
        U.K., Belgium, Norway, France and Holland.
      

  
        CONTACT:   INBRAND Corporation, Atlanta,
                   James R. Johnson, 770/422-3036, Ext. 232
        



Grand Union announces third quarter and 40
weeks results


            WAYNE, N.J. -- Feb. 9, 1996 -- The
Grand Union
        Company
, a regional retail food company, announced that sales for
        the 12 weeks ended Jan. 6, 1996, totaled $543.6 million, compared to
        $563.3 million for the 12 weeks ended Jan. 7, 1995.  
        


            Operating Cash Flow (EBITDA) was $31.1 million, or 5.7% of
        sales, for the 12 weeks ended Jan. 6, 1996, compared to  $21.8
        million, or 3.9% of sales, for the 12 weeks ended Jan. 7, 1995.
        


            Sales for the 40 weeks ended Jan. 6, 1996 totaled $1,787.9
        million compared with $1,867.6 million for the 40 weeks ended Jan.
        7, 1995.  EBITDA was $108.4 million, or 6.1% of sales, for the 40
        weeks ended Jan. 6, 1996 compared to $120.7 million, or 6.5% of
        sales, for the 40 weeks ended Jan. 7, 1995.  

        
            The sales decline for the 12 and 40 week periods ended Jan. 6,
        1996, compared with the same periods of the prior year, principally
        resulted from the sale or closure of 24 stores last year which were
        not replaced and from same store sales declines, offset by sales
        from new stores.
   

     
            Same store sales declined 1.3% and 1.2% for the 12 and 40 week
        periods ended Jan. 6, 1996.  The trend in same store sales
        comparisons reflects improvement over the 2.8% decline in this
        year's second quarter, as well as the 3.2% and 4.2% declines for the
        12 and 40 week periods ended Jan. 7, 1995.  Same store sales for
        this year's 12 and 40 week periods were negatively influenced by (a)
        the company's strong promotional programs during last year's second
        and third quarters and (b) the temporary effects of the company's
        previously announced decision to close two distribution centers
        servicing its metropolitan New York area stores.  Same stores sales
        were positively influenced by (a) the Northern Region marketing
        program, which includes both lower everyday shelf process and
        stronger sales promotion programs, begun on a limited basis last
        year and fully implemented on May 1, 1995, (b) additional marketing
        and store service programs introduced in the second quarter of this
        year in the metropolitan Albany, N.Y. and Bergen County, N.J. areas
        which particularly emphasize the company's strengths in perishable
        merchandising and (c) the severe snowstorms which struck the New
        York metropolitan area in late December and early January.
        Additionally, the 40 week period was positively influenced by the
        timing of the pre-Easter holiday shopping period which was included
        in this year's first quarter but not in last year's first quarter.

        
            EBITDA was positively influenced for the 12 weeks ended Jan. 6,
        1996, as a percentage of sales, by (a) the savings generated by the
        closing of the company's Northern Region Distribution Center and
        contracting with C&S Wholesale Grocers Inc. to perform all functions
        associated with the supply of product to the Northern Region stores,
        and (b) the restoration this year of vendor promotional allowances
        and other vendor support which were not available to the company
        last year subsequent to the company's announcement on Nov. 29, 1994
        that it would pursue a capital restructuring.  EBITDA was negatively
        influenced, as a percentage of sales, by (a) reduced gross margins
        and increased advertising costs both associated with the previously
        mentioned Northern Region marketing program and (b) increased store
        labor relating to the company's metropolitan Albany, N.Y.. and
        Bergen County, N.J. marketing and store service programs, offset by
        the benefits of the company's special voluntary resignation
        incentive programs ("SVRIP") completed during the second quarter.
        Additionally, EBITDA for the 40 week period was negatively impacted
        by bankruptcy related items including the inability to be fully
        invested in forward buy inventory throughout most of last year's
        fourth quarter which negatively impacted gross profit in the first
        quarter.

        
            Joseph J. McCaig, president and chief executive officer, said,
        "During the third quarter we continued our process of reducing costs
        and increasing efficiencies in our business.  We entered into an
        agreement with C&S Wholesale Grocers Inc.  to perform the functions
        associated with supplying grocery and perishable products to our New
        York region stores.  Formerly, the company operated distribution
        centers in Mt.  Kisco, N.Y.  and Carlstadt, N.J.  to supply our
        stores.  Closing agreements were entered into with the three union
        locals who represented the employees in the distribution centers,
        and most of these employees have now been terminated.  Within the
        next few weeks, we will complete the transition to C&S and fully
        close the distribution centers.  
   

     
            "Additionally, we entered into another supply agreement with C&S
        to supply all of our stores with general merchandise products from
        our warehouse in Montgomery, N.Y.  This agreement will enable us to
        minimize our working capital needs for general merchandise.

        
            "Finally, on January 24, we announced a corporate reorganization
        which consolidates our two regional profit centers into a
        centralized support structure.  This reorganization will reduce
        annual administrative expenses by approximately $5 million beginning
        in the fourth quarter and will enable us to manage our company more
        efficiently and more effectively."
   

     
            McCaig said, "The second and third quarters have been transition
        quarters as we have made enormous changes in the way we operate our
        business.  In the past six months we have eliminated virtually all
        of our distribution operations, simplified our organizational
        structure thus reducing our overhead, completed the SVRIP program,
        repositioned our pricing in our northern stores and implemented
        marketing programs in select areas, emphasizing our perishable
        merchandising strengths.  
   

     
             "All of these changes are a part of our new overall strategic
        plan.  Although not all of our marketing and cost reduction programs
        have matured, most of our transition period is completed and
        therefore, we expect that EBITDA for the fourth quarter will improve
        compared to the average of the first 40 weeks."
      

  
            Roger E. Stangeland, chairman of the board, noted that the
        company has taken a significant number of steps over the course of
        this fiscal year to reduce costs and implement new marketing and
        store service programs.  Stangeland said that by the end of this
        fiscal year, the company will be well positioned to make significant
        progress in sales and EBITDA in the future.  

        
            McCaig said that the company opened a replacement store in
        Valatie, N.Y., a new store in Tannersville, N.Y. and completed
        enlargements of its Darien, Conn. and West Islip, N.Y. store during
        the quarter, and has recently completed an enlargement of its Lake
        Placid, N.Y. store.  The company expects capital spending this year
        to be $45 to $50 million, including capitalized leases other than
        real estate leases.
   

     
            The company reported a net loss of $41.0 million for the 12
        weeks ended Jan. 6, 1996 ($4.10 per share).  Included in the loss
        was a provision of $15.0 million relating to the decision to close
        the New York Region distribution centers.  The company's loss before
        amortization of excess reorganization value was $16.4 million ($1.64
        per share).  Net income for the 40 weeks ended Jan. 6, 1996 totaled
        $744.9 million and included an extraordinary gain on debt discharge
        of $854.8 million, amortization of excess reorganization value of
        $59.4 million, reorganization expenses of $18.6 million, provisions
        for voluntary resignation incentives of $4.5 million and the
        previously mentioned provision to close the New York Region
        distribution centers of $15.0 million.

        
            As previously announced, Grand Union emerged from bankruptcy on
        June 15, 1995.  As of June 15, 1995, the company adopted "fresh-
        start"  reporting in accordance with American Institute of Certified
        Public Accountants Statement of Position 90-7, "Financial Reporting
        by Entities in Reorganization under the Bankruptcy Code."  Adoption
        of fresh-start reporting resulted in an adjustment of the basis of
        assets, liabilities and equity to their respective fair values.
        Under fresh-start reporting, the company is required to separate the
        results of its pre-emergence operations from its post-emergence
        periods.  Accordingly, pre-emergence periods are not comparable with
        post-emergence periods.  The company has combined the pre-emergence
        and post-emergence operations for press release purposes and because
        of the lack of comparability of net earnings, the company has chosen
        to discuss Sales and EBITDA since these measures are generally
        unaffected by the restructuring.  EBITDA is defined as earnings
        before LIFO provision, depreciation and amortization, amortization
        of excess reorganization value, unusual items, interest expense,
        income taxes and extraordinary gain on debt discharge.  

        
            The company currently operates 230 retail food stores in six
        Northeastern states.  Its common stock is traded under the GUCO
        symbol on the NASDAQ National Market.

        
                                   THE GRAND UNION COMPANY
                             CONSOLIDATED STATEMENT OF OPERATIONS
                                        (unaudited)
                                   (in thousands of dollars)
        
                              12 Weeks Ended         40 Weeks Ended
                             Jan. 6,   Jan. 7,      Jan. 6,    Jan. 7,
                              1996      1995         1996       1995
        
        Sales                   $543,617   $563,281  $1,787,873  $1,867,636
        Gross profit (a)         167,163    154,692     547,421     556,929
        Operating and
         administrative
         expense (a)            (136,035)  (132,890)   (439,003)   (436,250)
        Earnings before LIFO
         provision, depreciation
         and amortization,   
         amortization of excess
         reorganization value,
         unusual items, interest
         expense, income tax
         benefit and
         extraordinary gain
         on debt discharge
         (EBITDA)                 31,128     21,802     108,418      120,679
        LIFO provision              (300)      (225)     (1,000)
        (750)
        Depreciation and
         amortization            (16,547)   (21,204)    (57,719)
        (67,224)
        Amortization of excess
         reorganization value    (24,578)      --       (59,405)        --
        Unusual items (b)        (15,000)   (12,512)    (38,127)
        (12,512)
        Earnings (loss) before
         interest expense,
         income tax benefit and
         extraordinary gain on
         debt discharge          (25,297)   (12,139)    (47,833)      40,193
        Interest expense         (23,537)   (47,379)    (75,307)
        (154,158)
        Loss before income
         tax benefit and
         extraordinary gain on
         debt discharge          (48,834)   (59,518)   (123,140)
        (113,965)
        Income tax benefit         7,840       --        13,212         --
        Loss before extraordinary
         gain on debt discharge  (40,994)   (59,518)   (109,928)
        (113,965)
        Extraordinary gain on
         debt discharge             --        --        854,785         --
        Net income (loss)        (40,994)   (59,518)    744,857
        (113,965)
        Accrued preferred
         stock dividends            --       (6,469)
        --         (18,173)
        Net income (loss)
         applicable to common
         stock                  $(40,994)  $(65,987)   $744,857
        $(132,138)
        
        (a) Gross profit and operating and administrative expenses reflect
        certain reclassifications made for the 40 and 12 week periods
        ended Jan. 7, 1995 to conform to current year presentation.
        
        (b) Unusual items consist of a (i) a $15,000 provision for warehouse
        closures for the 12 and 40 weeks ended Jan. 6, 1996, (ii) a
        $10,630 provision for store closures for the 12 and 40 weeks
        ended Jan. 7, 1995, (iii) $18,627 of reorganization expense for
        the 40 weeks ended Jan 6, 1996, (iv) $1,882 of reorganization
        expense for the 12 and 40 weeks ended Jan 7, 1995 and (v) a
        $4,500 provision for voluntary resignation incentives for the
        40 weeks ended Jan. 6, 1996.


        CONTACT: The Grand Union Company, Wayne
                 Donald C. Vaillancourt, 201/890-6100

        

        HUNTWAY PARTNERS L.P. REPORTS FOURTH QUARTER OPERATING PROFIT BEFORE
        WRITE DOWN OF SUNBELT REFINERY
     

   
            NEWHALL, Calif., Feb. 9, 1996 -  Huntway Partners, L.P.
        (NYSE: HWY) reported today that it earned $543,942, or $.05 per
        unit, in the fourth quarter of 1995 excluding a $9,492,000, or $.82
        per unit, write down of the Sunbelt Refinery in Arizona.  As a
        result of the write down, the company reported a loss for the
        quarter of $8,948,058, or $.77 per unit, compared to a net loss of
        $1,174,777, or $.10 per unit, in the fourth quarter of 1994.
        Revenues in the fourth quarter of 1995 were $22,384,728 versus
        $19,082,472 in the same quarter a year ago, when results were
        negatively impacted by unusually high levels of rainfall in
        California.

        
            The company attributed the better operating performance to
        improved asphalt pricing and margins resulting from the backlog of
        road work created due to the heavy rainfall that continued into the
        first half of 1995.  Prices and margins for the company's light-end
        products also improved in the fourth quarter commensurate with
        higher margins for finished gasoline and diesel fuel in the state.
   

     
            Huntway President and Chief Executive Officer, Juan Forster,
        said, "The company expects demand for its products to continue
        strengthening, benefiting Huntway's operating performance throughout
        1996."  He added that Huntway decided to write down the Sunbelt
        refinery because it appears unlikely that it will operate Sunbelt as
        a full-blown refinery in the future, but very well may operate it as
        a terminal, possibly as early as next year.  The company wrote down
        the carrying value of the refinery in accordance with FASB 121,
        "Accounting for the Impairment of Long-Lived Assets."

        
            For the year ended December 31, 1995, Huntway reported a loss of
        $14,461,762, or $1.25 per unit, on revenues of $83,068,985 versus a
        loss of $3,003,740, or $.26 per unit, on revenues of $79,139,334 in
        1994. Excluding the Sunbelt write down, the 1995 loss was
        $4,969,762, or $.43 per unit.
   

     
            Forster said that operating results for the full year were
        affected both by the devaluation of the Mexican Peso, which severely
        depressed Huntway's export business, and the record rains in
        Northern and Southern California.  However, the backlog of road work
        unleashed in the last two quarters of 1995 resulted in Huntway
        earning $704,387 before the Sunbelt write down on revenues of
        $49,729,741 for the second half of 1995 versus a 1994 second-half
        loss of $971,319 on revenues of $45,192,196.

        
            He added that talks continue between Huntway and its lenders on
        a restructuring of its debt and that the company expects to close
        the transaction sometime in the first half of 1996.
   

     
            Huntway Partners, L.P. owns and operates two refineries at
        Wilmington and Benicia, California, which primarily process
        California crude oil to produce liquid asphalt for use in road
        construction and repair, as well as smaller amounts of gas oil,
        naphtha, kerosene distillate and bunker fuels.  The company's third
        refinery, at Coolidge, Arizona, which is temporarily shut down, is
        configured to produce a similar product slate, as well as jet fuel
        and diesel fuel.  It may be reopened as a terminal in 1997 or
        beyond.

        
            The company's preference units are traded on the New York Stock
        Exchange under the symbol HWY.
   

     
                             HUNTWAY PARTNERS, L.P.
                            SELECTED FINANCIAL DATA
                     FOR THE THREE AND TWELVE MONTHS ENDED
                               DECEMBER 31, 1995
        
                      (in Thousands Except Per Units Data)
        
                                 Three Months Ended   Twelve Months Ended
                                Dec. 31     Dec. 31    Dec. 31     Dec. 31
                                   1995        1994       1995        1994
        
         Revenues               $22,385     $19,082    $83,069     $79,139
         Crude Oil and
          Processing             18,979      17,477     76,644      70,621
         Impairment Loss on
          Refinery Assets         9,492          --      9,492          --
        
         Selling and Administration 999         977      3,819       4,182
         Interest Expense         1,293       1,241      5,177       4,984
         Depreciation and
          Amortization              570         562      2,399       2,356
         Net (Loss)            $(8,948)(a) $(1,175)  $(14,462)(a) $(3,004)
        
         Loss Per Unit          $(0.77)(a)  $(0.10)    $(1.25)(a)  $(0.26)
        
         Equivalent Units
          Outstanding            11,673      11,673     11,673      11,673
        
         Barrels Sold             1,129       1,084      4,400       4,584
        
            (a)  Includes $9,492 or $0.82 per unit charge relating to write
        down of refinery assets.
        
                               HUNTWAY PARTNERS, L.P.
                             CONSOLIDATED BALANCE SHEET
        
                                      December 31,   December 31,
                                              1995           1994
        
         Cash                               $4,304         $5,984
         Accounts Receivable                 4,820          2,485
         Inventory                           3,320          4,044
         Prepaid Expenses                      676            749
         Property, Net                      58,677         69,857
         Other Assets                        2,595          2,677
         Total Assets                      $74,392        $85,796
        
         Accounts Payable                   $6,582         $5,984
         Accrued Liabilities                 3,530          2,135
         Debt                               94,795         93,730
         Partners' Capital                (30,515)       (16,053)
         Total Debt and Partners' Capital  $74,392        $85,796
        
                               HUNTWAY PARTNERS, L.P.
                        CONSOLIDATED STATEMENT OF CASH FLOWS
        
                                                           1995        1994
        
         Net Loss                                     $(14,462)    $(3,004)
         Add: Depreciation and PIK Notes                  2,399       6,255
         Changes in Working Capital                       2,136         135
         Cash Provided/(Used) by Operating Activities   (9,927)       3,386
         Cash Provided/(Used) by Investing Activities     8,875       (669)
         Cash Used by Financing Activities                (628)     (4,478)
         Net Decrease in Cash                           (1,680)     (1,761)
         Cash at Beginning of Year                        5,984       7,745
         Cash at End of Year                             $4,304      $5,984
        
        CONTACT:  Thomas E. Siebert of Siebert & Associates, 818-865-1594;
        or Warren J. Nelson, Executive Vice President and Chief Financial
        Officer of Huntway Partners, 805-286-1582





        SPECTRUM INFORMATION TECHNOLOGIES ANNOUNCES EARNINGS; FILES PROPOSED
        PLAN OF REORGANIZATION
        


            PURCHASE, N.Y. Feb. 9, 1996 - href="chap11.spectrum.html">Spectrum Information
        Technologies, Inc.
announced earnings as reported in its
Quarterly
        Report on Form 10-Q for the quarter ended December 31, 1995, the
        third quarter of its fiscal year.  Spectrum also announced that it
        has filed a Proposed Consolidated Plan of Reorganization, together
        with a Disclosure Statement, for itself and its Spectrum Cellular
        subsidiary, in its bankruptcy case pending before the United States
        Bankruptcy Court of the Eastern District of New York.

        
            Spectrum reported an operating loss of $1.4 million on revenues
        of $504 thousand for the three month period ended December 31, 1995,
        as compared with an operating loss of $3.3 million on revenues of
        $953 thousand for the same quarter last fiscal year.  For the nine
        months of fiscal 1996 ended December 31, 1995, Spectrum reported
        operating losses of $3.4 million on revenues of $2.2 million,
        compared to an operating loss of $8.5 million with revenues of $2.2
        million for the same period last fiscal year.
        
            For the nine months ended December 31, 1995, Spectrum reported a
        net loss of $123 thousand.  The Company reported a loss from
        continuing operations of $4.2 million for the nine month period, of
        which $2.5 million was attributable to professional fees associated
        with its Chapter 11 case.  This loss from continuing operations was
        offset by $4.1 million in gains from the sale of non-core assets and
        discontinued operations.

        
            In January 1995, Spectrum filed a voluntary Chapter 11 petition
        in the Bankruptcy Court and has since been reorganizing its
        business.  The Proposed Plan of Reorganization and Disclosure
        Statement filed today describe Spectrum's proposed business plan and
        recapitalization immediately following confirmation of the Plan.
        The Disclosure Statement discusses Spectrum's strategy to shift its
        focus from a licensing and royalty business to a wireless
        communications software business.  Consistent with the agreement in
        principle on a framework to settle the class action securities
        litigation that has been pending against the Company since 1993, the
        Proposed Plan of Reorganization, if approved, would result in a
        substantial dilution to holders of Spectrum common stock.  The
        Proposed Plan does not include outside investment, which would have
        further diluted the current shareholders' interests. The Proposed
        Plan is being discussed with the committee representing Spectrum's
        unsecured creditors and may be amended before the hearing on the
        adequacy of the Disclosure Statement, which is scheduled for March
        7, 1996 at 11:00 a.m. before the Bankruptcy Court.  Following court
        approval, Spectrum will distribute copies of the Plan and Disclosure
        Statement to its shareholders and creditors.


        CONTACT:  Media -- Michael Freitag of Kekst and Company,
        212-593-2655, or Investors - Investor Relations of Spectrum
        Information Technologies, 914-251-1800, ext. 182