TCR_Public/960220.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For - February 20, 1996



  1. UNILAB CORPORATION ANNOUNCES 1995 RESULTS
  2. BANKS INFORM MODEL IMPERIAL THAT THEY WILL NOT ADVANCE ADDITIONAL FUNDS
  3. LANCE ANNOUNCES FOURTH-QUARTER AND YEAR-END RESULTS



Unilab Corporation announces 1995 results
        


            TARZANA, Calif. -- February 20, 1996 -- Unilab
        Corporation (Nasdaq:ULAB) today announced results for the fourth
        quarter and year ended December 31, 1995.  
        


            For the full year, net sales increased 25% to $189.0 million
        from $151.8 million a year ago.  The Company reported a net loss for
        the year of $41.8 million, or $1.17 per common share, which included
        previously announced charges totalling $42.6 million, or $1.19 per
        share, as discussed below.  This compares with 1994 net income
        results of $4.5 million, or $0.12 per share which included an
        acquisition related charge of $1.3 million, or $0.04 per share.  

        
            For the fourth quarter ended December 31, 1995, Unilab's
        revenues rose 25% to $48.7 million from $38.9 million a year
        earlier.  The Company reported a net loss of $5.1 million, or $0.14
        per common share, which included a previously announced $2.0
        million, or $0.05 per share, charge related to the conclusion of the
        Trylon arbitration.  This compares with 1994 net income of $309,000,
        or $0.01 per share.  
   

     
            As previously announced, the Company recorded $42.6 million in
        charges during the year, primarily related to its efforts to focus
        on and build its market presence in California.  These charges
        included a $36.5 million non-cash charge related to the sale of the
        Company's equity investment in UGL, its European lab venture; a $1.2
        million restructuring charge in the second quarter associated with
        the integration of its MLN acquisition; a total of $3.2 million in
        charges related to the Trylon arbitration proceedings; and a $1.7
        million write-off of deferred financing fees.  

        
            Commenting on results, Andrew Baker, Chairman and Chief
        Executive Officer of Unilab, said, "Although we continue to make
        significant progress in building Unilab's base of business, we are
        not satisfied with our operating performance.  Our recent results
        reflect both unusually weak seasonal volumes in the latter half of
        the last quarter, as well as expense levels which have declined at a
        slower pace than we had anticipated.  Near term, our main objective
        is to accelerate expense reduction efforts in order to become a
        leader not only in market share, but more importantly, in
        profitability.  To this end, we are intensifying the cost reduction
        initiatives begun over the past two quarters.  More of our
        administrative efforts are being centralized to facilitate tighter
        spending control and eliminate corporate redundancy.  We are also
        capping our growing investment in marketing, though remain confident
        that our existing sales and marketing team can continue to drive the
        top line performance."  
   

     
            Baker continued, "During the past year, we have seen significant
        improvement in Unilab's positioning within the California lab
        industry, driven by our strategic initiatives to build our market
        presence and reputation.  We have invested in our sales and
        marketing organization, which has played a key role in generating
        approximately 15% growth in our core sales over the prior year.
        This strong internal growth, coupled with the integration of the
        recently acquired MLN operations, has widened our market share
        leadership to roughly twice that of the next largest competitor in
        California.  We have continued to build on the significant steps
        taken over the past two years to establish a strong operating
        platform and to strengthen our marketing efforts.  We believe that
        these efforts will enable Unilab to benefit from the economies of
        scale inherent in our business and will enhance the long-term value
        of our unique franchise in the California lab industry in the years
        to come."  

        
            Unilab Corporation is the largest provider of clinical testing
        services in California through its full-service, central testing
        laboratories in Los Angeles, San Jose and Sacramento and its
        extensive network of patient service centers, STAT labs and couriers
        throughout the state.


        
                                 Unilab Corporation
                       Consolidated Statement of Operations
                    (Amounts in thousands, except per share data)
                                       
        
                               Three Months Ended         Year Ended     
                              12/31/95   12/31/94     12/31/95   12/31/94
        
        Revenue                  $ 48,727    $ 38,888     $189,042
        $151,820   
          
        Operating Expenses         49,658      36,899      180,103
        141,401
        
        Legal and Acquisition       2,000         ---        4,400
        1,282
         Related Charges    
        Operating Income (Loss)    (2,931)      1,989        4,539
        9,137   
           
        
        Other Income (Expenses):           
        Interest Expense, net      (2,125)     (1,482)      (8,333)
        (5,192)
        Equity in Earnings of
          Affiliate                   ---        (198)         250
        570
        Loss on Sale of Equity
         Investment                   ---         ---      (36,499)
        ---
        
        Income (Loss) Before Income
         Taxes and Extraordinary
           Item                    (5,056)        309      (40,043)
        4,515
        
        Tax Provision
        ---         ---          ---        ---
        Extraordinary Item - Writeoff
         of Deferred Financing Fees   ---         ---        1,732
        ---
        
        Net Income (Loss)          (5,056)        309      (41,775)
        4,515      
        
        Preferred Stock Dividends      36          36          144
        144    
        
        Net Income (Loss) Available to      
        Common Shareholders       ($5,092)       $273     ($41,919)
        $4,371    
        
        Net Income (Loss)
         per Common Share (a)      ($0.14)      $0.01       ($1.17)
        $0.12
        
        Weighted Average Common
         Shares Outstanding    36,124      35,412       35,918     35,069
        
        (a) Excluding the legal and acquisition related charges, the
        extraordinary item and the loss recorded from the sale of the
        Company's equity investment, net income (loss) per common share
        would
        have been ($0.09), $0.01, $0.02 and $0.16 per share respectively.  

        
                                  Unilab Corporation
                              Consolidated Balance Sheet
                                (Amounts in thousands)
        
                                        12/31/95      12/31/94
        
        Accounts Receivable, net            $ 40,334      $ 27,348
        Amounts Due from UGL/UniHolding       15,000           ---
        Other Current Assets                   4,250         5,292
        Total Current Assets              59,584        32,640
        
        Fixed Assets, net                     18,326        12,450
        
        Goodwill and Other
         Intangible Assets                   113,019        82,736
        
        Investment in Equity Affiliate           ---        65,049
        Other Assets                           5,245         3,532
        
        Total Assets                    $196,174      $196,407
        
        Total Current Liabilities            $49,273       $31,686
        
        Long-term Debt,
         net of current portion               87,207        67,660
        Other Liabilities                      3,364         1,727
        
        Total Shareholder's Equity            56,330        95,334
        
        Total Liabilities and
         Shareholders' Equity               $196,174       $196,407


        CONTACT:  Unilab Corporation
                  Richard A. Michaelson
                  Senior Vice President, Finance
                  (201) 525-1000
                             or
                  Morgen-Walke Associates
                  Betsy Brod/Alex Gleeson
                  (212) 850-5600
        
  

BANKS INFORM MODEL IMPERIAL THAT THEY WILL NOT ADVANCE ADDITIONAL FUNDS

        
            BOCA RATON, Fla., Feb. 20, 1996 - Model Imperial, Inc.
        (Nasdaq: MODL) today announced that its bank lenders had informed
        the Company, following meetings to address the Company's continuing
        financing requirements, that, given the present circumstances, they
        would not advance additional funds to the Company under existing
        loan and security agreements.  In addition, the banks have advised
        the Company to immediately explore other alternatives, including
        replacement financing, a sale or merger of the Company or protection
        under Chapter 11 of the Bankruptcy Code.  The Company had previously
        announced an anticipated loss of between $7.5 and $8.5 million for
        the year ended December 31, 1995, and that it was not in technical
        compliance with a number of loan covenants contained in its loan
        agreements with such bank lenders.  The Company has commenced
        discussions with additional lenders in an effort to secure
        replacement financing in the near future, if available at all.  As
        of the date hereof, the Company owes approximately $50 million to
        its bank lenders under its existing loan agreements.

        
            Model Imperial, Inc. is one of the largest wholesale
        distributors of brand-name fragrances in the United States.  The
        Company primarily distributes prestige fragrances, but also offers
        mass market fragrances and certain cosmetic and beauty care
        products, for men and women.  The Company is also one of the largest
        operators of licensed retail departments in the country with over
        650 retail locations throughout the U.S.  The Company's principal
        customers include many of the nation's leading mass merchants,
        discount retailers and drug store and supermarket chains, as well as
        numerous independent pharmacies and other specialty retailers.
        Model Imperial's fragrance and cosmetic distribution product line
        comprises approximately 4,000 individual brand-name items.
   


        CONTACT:  Stephen J. Kesh, Chief Financial Officer of Model
        Imperial, 407-241-8244; or IR Contact:  Lynn Morgen or Howard Zar,
        or Press:  Leslie Feldman of Morgen-Walke Associates, 212-850-5600



LANCE ANNOUNCES FOURTH-QUARTER AND YEAR-END RESULTS; RESTRUCTURING
        PLAN PROGRESSING ON SCHEDULE
        


            CHARLOTTE, N.C., Feb. 20, 1996 - Lance, Inc. (Nasdaq-NNM:
        LNCE) today announced fourth-quarter and year-end results that
        included lower sales and a net loss.
        


            The company's restructuring plan, announced in December, is
        progressing on schedule, including the closing of one manufacturing
        plant and a reduction of operations at a second facility.
        


            Pretax write-downs and expense provisions related to the
        restructuring totaled $43.0 million in the fourth quarter, which
        ended Dec. 30, 1995, resulting in a net loss for the quarter of
        $21.9 million. Lance earned a net income of $7.3 million in the
        fourth quarter of 1994. The net loss for the quarter was 72 cents
        per share versus a net income per share of 24 cents in the same
        quarter last year.  Fourth-quarter 1995 net sales and other
        operating revenues were $143.3 million compared with $154.7 million
        in the final quarter of 1994.

        
            For the year, net sales and other operating revenues were $477.5
        million compared with $488.0 million in 1994.  The net loss for the
        year was $6.9 million, or 23 cents per share, compared with net
        income of $27.0 million, or 88 cents per share, last year.
   

     
            "Sales were reduced in the fourth quarter mainly as a result of
        the elimination of certain territories and product lines that were
        unprofitable," said Paul A. Stroup III, president and chief
        executive officer.  "There were also fewer year-end sales promotions
        than in 1994. In addition, the fourth quarter and fiscal year were
        shorter by one week versus the comparable periods of 1994,
        accounting for approximately $5 million in lower sales.
      

  
            "These results are in line with our expectations, given the
        restructuring that is underway and the extremely challenging sales
        environment in the snack-food industry during 1995," said Stroup.

        
            As a first step in the company's restructuring plan, Lance has
        closed its manufacturing plant in Columbia, S.C., and eliminated
        manufacturing operations at its facility in Greenville, Texas.  The
        closures are part of a downsizing that is expected to generate
        annualized pretax savings of approximately $10 million.
   

     
            "We have done what we said we would do and we are progressing
        with our plan for the company's future," said Stroup.  "We expect
        sales to decline further in 1996 as we continue to focus on
        strengthening our core snack-food franchise and returning the
        company to profitability. We expect to begin to reap the benefits of
        the restructuring by the fourth quarter of this year and into 1997."
      

  
            Stroup said that Lance will become more customer-focused in
        1996, investing more resources into database research, sales and
        marketing. It is also reviewing its sales and distribution channels.

        
            Lance, Inc., is engaged in the manufacturing and sale of snack
        foods throughout most of the United States.
   

     
                                   LANCE, INC.
                          CONSOLIDATED INCOME STATEMENT
        
                                        For the Quarter Ended
                                      December 30,  December 31,  Percent of
                                         1995          1994         Change
        
        Net Sales & Operating Revenue $143,328,500 $154,664,488      -7%
        
        Income (Loss) Before Income
         Taxes                         (34,731,586)  12,342,730
        
        Net Income (Loss)              (21,908,588)   7,314,109    -400
        
        Earnings (Loss) Per Share            (0.72)        0.24
        
        Average Number of Common
         Shares Outstanding             30,342,979   30,534,077
        
                                          For the Year Ended
                                      December 30,  December 31,  Percent of
                                         1995          1994         Change
        
        Net Sales & Operating Revenue $477,467,968 $487,981,812      -2%
        
        Income (Loss) Before Income
         Taxes                         (10,100,059)  44,327,988
        
        Net Income (Loss)               (6,939,221)  26,983,619    -126
        
        Earnings (Loss) Per Share            (0.23)        0.88
        
        Average Number of Common
         Shares Outstanding             30,399,534   30,774,472


        CONTACT:  J.W. Helms of Lance, Inc., 704-554-1421