TCR_Public/960216.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For - February 16, 1996



  1. EL PASO ELECTRIC LIGHTS UP THE AMERICAN STOCK EXCHANGE
  2. HARRAH'S ENTERTAINMENT UPDATES STATE ON REORGANIZATION PROGRESS FOR NEW ORLEANS CASINO
  3. SAGE ANALYTICS PREPARES FOR FINANCIAL SET-BACK
  4. RADIUS ANNOUNCES FIRST QUARTER RESULTS



EL PASO ELECTRIC LIGHTS UP THE AMERICAN
STOCK EXCHANGE
        


            NEW YORK, Feb. 16, 1996 - The common shares of href="chap11.elpaso.html">El Paso
        Electric
began trading today on the American Stock Exchange.  
One of
        El Paso's oldest firms, the Company provides electrical power to El
        Paso and the areas of the Rio Grande Valley in West Texas and
        Southern New Mexico.

        
            Founded in 1901, El Paso Electric is engaged in the generation,
        transmission, and distribution of electricity.  Its service area
        extends approximately 110 miles northwest from El Paso to the
        Caballo Dam in New Mexico and 120 miles southeast from El Paso to
        Van Horn, Texas. The Texas utility services over 250,000 customers
        in the residential, commercial, industrial and wholesale markets.
   

     
            The Company was recently reorganized with its Plan of
        Reorganization and emergence from Chapter 11 rendered effective on
        Monday, February 12, 1996.  The Company had been operating under
        Chapter 11 since January of 1992.
      

  
            "We're very pleased with this new relationship between El Paso
        Electric and the American Stock Exchange," said David  H. Wiggs,
        Jr., chief executive officer and chairman of the board of El Paso
        Electric. "Along with the recent emergence of the Company from
        Chapter 11 bankruptcy, trading the new EPE stock on the American
        Stock Exchange marks an exciting new beginning for the Company."
        


            The stock will initially trade on a 'when issued' basis under
        the ticker symbol EE.WI.  The stock opened at 5/8 on 2,500 shares.
        Streicher, Lovett, Frey has been chosen as the specialist unit.

        
            As the nation's second largest exchange, the American Stock
        Exchange is the only primary marketplace for stocks and derivative
        securities.
        


        CONTACT:  Yolanda Cain of American Stock Exchange, 212-306-1671,
        ycain@amex.com
        



HARRAH'S ENTERTAINMENT UPDATES STATE ON REORGANIZATION PROGRESS FOR
        NEW ORLEANS CASINO

        
            MEMPHIS, Feb. 16, 1996 - Harrah's Entertainment, Inc.
        (NYSE: HET) today reaffirmed in writing its commitment to use its
        best efforts to bring the Harrah's
Jazz Company
(HJC) partnership's
        bankruptcy proceeding to a successful conclusion for all interested
        parties.  In support of that commitment, and in response to the
        state of Louisiana's request for more details before entering
        negotiations, Harrah's Entertainment sent the State a proposed
        outline of restructuring.
        


            In an outline summarizing the proposed restructuring of HJC, to
        be accomplished in connection with confirmation of a plan of
        reorganization supported by Harrah's Entertainment, Harrah's
        Entertainment reiterated its commitments to the project, including
        its willingness to deliver a new completion guarantee that would
        ensure completion of the project (together with a mutually
        acceptable third party guarantee or other financial support) and its
        commitment to provide debtor-in-possession financing of up to $10
        million, depending on timing of the confirmation of the
        reorganization plan.

        
            Harrah's Entertainment also stated that under a proposal
        submitted to bondholders, Harrah's Entertainment, Inc., or a
        subsidiary thereof will contribute up to $75 million of new equity
        capital and other existing partners of HJC will be given an
        opportunity to contribute part of this.  Under a proposed plan, the
        Bondholders would exchange their current $435 million of 14 1/4
        percent (plus contingent interest) First Mortgage Notes due 2001 for
        (1) $187.5 million of 8 percent (plus contingent interest)
        Subordinated Debentures due 2006, and (2) 50.1 percent of equity, of
        the restructured HJC.
   

     
            In addition, Harrah's Entertainment proposed that the State and
        a restructured HJC would effect a mutually satisfactory business
        resolution of issues surrounding the impact of riverboat casino
        operations in New Orleans.
      

  
            In the proposal, Harrah's Entertainment suggested that with
        approximately $200 million in new capital and an additional $15 to
        $20 million in soft costs, a casino of approximately 3,000 slot
        machines and 140 table games could be completed and accommodated on
        the ground floor of the existing Canal Street Casino Structure.
        Assuming a plan is confirmed by May 31, 1996,a first phase of a
        casino designed and configured for successful operation based on
        current market conditions could be open on Canal Street by year end
        when the nation's attention will be focused on the city of New
        Orleans as it hosts the Sugar Bowl National Football Championship,
        followed by the Super Bowl and later the NCAA Basketball finals.

        
            Harrah's Entertainment, Inc. looks forward to the State
        scheduling a meeting to resolve outstanding issues.  It is Harrah's
        Entertainment's hope that this meeting can lead to a mutually
        acceptable plan of reorganization that can be submitted to the
        Bankruptcy Court for approval.
   


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



SAGE ANALYTICS PREPARES FOR FINANCIAL SET-BACK

        
            SACRAMENTO, Calif., Feb. 16, 1996 - SAGE Analytics
        International, Inc. (OTC Bulletin Board: SAII) announced today that
        due to the lack of revenues, the company will be experiencing a cash
        shortage late in the second quarter unless it experiences an
        increase in product sales.  Charles R. Cole, Chairman and CEO,
        stated that the primary reason for the lack of revenue is due to the
        longer-than-anticipated sales cycle for SAGE Analytics' products,
        consequently delaying orders and revenue.  Mr. Cole stated that the
        company continues to believe in the market need for ProActive
        Discipline, a behavior management system for public schools, and
        Critical Issue Analysis, a software decision support tool designed
        for business and government.  However, due to the current budget and
        management crisis school systems are facing, many have delayed the
        purchase of ProActive Discipline in order to address problems
        perceived as more immediate.  In addition, the delay in passing a
        federal budget adversely affected certain federal agencies'
        interests in pursing Critical Issue Analysis.

        
            In light of the lack of revenues, management has already taken
        actions to implement cost savings procedures in order to conserve
        cash including the lay-off of certain personnel, salary reduction
        for management and reducing expenses.  Further, to reduce regulatory
        expenses, SAGE has filed a form suspending its duty to file reports
        with the SEC because it has less than 300 shareholders of record.
   

     
            The Board of Directors of SAGE Analytics International, Inc. is
        seeking all methods of raising cash including licensing agreements,
        debt or equity financing or sale of the company.  In the event the
        company is not successful in raising additional cash or if revenues
        do not increase within the next few months, the company may be
        required to seek protection under bankruptcy laws.


        CONTACT:  Charles R. Cole, Chairman and CEO of SAGE Analytics
        International, Inc., 916-648-3011



Radius Announces First Quarter Results


            SUNNYVALE, Calif. -- Feb. 16, 1996 -- Radius Inc.
        (NASDAQ:RDUS) today announced financial results for the first
        quarter of its 1996 fiscal year ended Dec. 30, 1995.
        


            For the quarter, Radius reported net revenues of $32.7 million
        and a net loss of $9.8 million or $0.57 per share.  The consolidated
        results for the prior year quarter, which included an extraordinary
        charge of $12.4 million related to settlement of litigation, were
        net revenues of $79.2 million and a net loss of $11.0 million or
        $0.78 per share.

        
            The company completed the sale of its monochrome monitor
        business during the quarter.  In early 1996, the company completed
        the divestiture of its Color Server Group and its Mac OS-compatible
        systems business.
   

     
            All assumptions, anticipations, and expectations contained
        herein are forward-looking statements that involve uncertainty and
        risk.  Actual results could differ materially from those projected
        in such forward-looking statements.  Each forward-looking statement
        should be read in conjunction with the company's entire Quarterly
        Report on Form 10-Q including, but not limited to, Management's
        Discussion and Analysis of Financial Condition and Results of
        Operations -- Certain Factors That May Affect Future Results, and
        with Management's Discussion and Analysis of Financial Condition and
        Results of Operations contained in the company's Annual Report on
        Form 10-K for the year ended Sept. 30, 1995.

        
            Radius Inc. delivers Super Resolution graphics cards and
        displays, the highest-quality digital video and hardware and
        software products to leading-edge computer users in the publishing,
        graphics, video and education markets.  The company's products are
        available through a worldwide network of Radius authorized
        resellers, system integrators, and distributors. -0-
   

     
            Note to Editors: Radius is a trademark of Radius Inc. which is
        registered in the United States and certain other jurisdictions.
        Super Resolution is a trademark of Radius Inc.  Mac OS is a
        trademark of Apple Computer Inc.  Other marks are the property of
        respective owners.


       
                                  Radius Inc.
                         Consolidated Balance Sheets
                                (in thousands)
        
                                  Dec. 31, 1995    Sept. 30, 1995 (1)
                                   (unaudited) Assets: Current assets:
         Cash                           $  6,990          $  4,760
         Accounts receivable, net         25,308            61,644
         Inventories                      12,564            15,071
         Prepaid expenses and
          other current assets            12,091             2,336
         Income tax receivable               517               519
        
          Total current assets            57,470            84,330 Property
        and equipment, net        2,572             3,031 Deposits and other
        assets            512               517
        
                                    --------          --------
                                    $ 60,554          $ 87,878
        
        Liabilities and shareholders'
         equity (Net capital deficiency) Current liabilities:
         Accounts payable               $ 42,886          $ 73,098
         Accrued payroll and related
          expenses                         6,083             5,815
         Accrued warranty costs            2,510             3,170
         Other accrued liabilities        11,231            11,920
         Accrued income taxes              1,636             1,665
         Accrued restructuring and
          other charges                   16,980            17,013
         Short-term borrowings            43,795            29,489
         Obligation under capital
          leases - current portion         1,524             1,494
                                     -------           -------
          Total current liabilities      126,645           143,664
        
        Obligations under capital
         leases - noncurrent portion         831             1,331
        
        Commitments and contingencies
        
        Shareholders' equity: (Net capital deficiency)
         Common stock                    117,127           113,791
         Common stock to be issued         8,695            12,022
         Accumulated deficit            (192,776)         (182,993)
         Accumulated translation
          adjustment                          32                63
          Total shareholders' equity         
          (Net capital deficiency)       (66,922)          (57,117)
                                    --------          --------
                                    $ 60,554          $ 87,878
        
         (1) The balance sheet at Sept. 30, 1995 has been derived from the
        audited financial statements at that date but does not include all
        of the information and footnotes required by generally accepted
        accounting principles for complete financial statements.
        
                                   Radius Inc.
                     Consolidated Statements of Operations
               (In thousands, except per share data; unaudited)
        
                                        Three Months Ended
                                             Dec. 31,
                                        1995            1994
        
        Net sales                       $ 32,652          $ 79,235 Cost of
        sales                     28,607            56,758
        
          Gross profit                     4,045            22,477   
        
        Operating expenses:
          Research and development         3,630             4,118
          Selling, general and
           administrative                  9,961            15,882
           Total operating expenses       13,591            20,000
        
        Income (Loss) from operations     (9,546)            2,477
        
        Other expense                        (46)             (920)
        
        Settlement of litigation               --          (12,422)
        
        Loss before income taxes          (9,592)          (10,865)
        
        Provision for income taxes           191               156
        
        Net loss                         $(9,783)        $ (11,021)
                                                             Loss per share:
        Net loss per share                $(0.57)           $(0.78)
        
        Common and common equivalent
         shares used in computing net             
          loss per share                  17,248            14,215


        CONTACT: Radius Inc., Charles W. Berger, 408/541-6100