TCR_Public/960229.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For - February 29, 1996



  1. THE KRYSTAL COMPANY REPORTS 4TH QUARTER AND ANNUAL RESULTS
  2. GRAND PALAIS DISCLOSURE STATEMENT APPROVED
  3. STROH TO ACQUIRE ALL G. HEILEMAN BREWING ASSETS
  4. CONSUMAT SYSTEMS ANNOUNCES REORGANIZATION PLAN CONFIRMED BY BANKRUPTCY COURT
  5. U.S. ATTORNEY ANNOUNCES LOCAL CHARGES AS PART OF NATIONAL BANKRUPTCY FRAUD INITIATIVE, "OPERATION TOTAL DISCLOSURE"
  6. MIDISOFT REPORTS 1995 RESULTS
  7. IRS PARTICIPATES IN BANKRUPTCY FRAUD KICK-OFF DAY
  8. WAINOCO REPORTS 1995 RESULTS
  9. BUCKS RACEHORSE OWNER INDICTED FOR MAIL FRAUD IN KILLING OF RACEHORSE; ALSO CHARGED WITH BANKRUPTCY FRAUD



THE KRYSTAL COMPANY REPORTS 4TH
QUARTER AND ANNUAL RESULTS
        


            CHATTANOOGA, Tenn., Feb. 29, 1996 - href="chap11.krystal.html">The Krystal Company
        (Nasdaq-NNM: KRYSQ), an operator and franchisor of quick-service
        hamburger restaurants, today reported a loss for the quarter ended
        December 31, 1995, of $1,135,000, or 15 cents per share.  The prior
        year's fourth quarter net income was $1,417,000, or 19 cents per
        share. The quarter's loss in 1995 was a result of a charge of $3.9
        million recorded to write down certain restaurant locations to
        estimated realizable values.  Disregarding this charge, the Company
        would have reported net income of $1,290,000, or 17 cents per share.

        
            Year to date for the twelve months ended December 31, 1995, the
        Company had a loss $5,324,000, or 71 cents per share, compared to
        net income of $6,189,000, or 82 cents per share for the twelve
        months ended January 1, 1995.  Without a third quarter 1995 special
        charge of $10 million for certain wage and hour litigation to which
        the Company is a party and the fourth quarter 1995 charge of $3.9
        million, net income for the twelve months ended December 31, 1995
        would have been $3,301,000, or 44 cents per share.  The Company also
        recorded a special charge of $2.0 million at year end 1994 for the
        wage and hour litigation.  Without that special charge, fourth
        quarter 1994 and total year 1994 earnings per share were 35 cents
        and 99 cents, respectively.

        
            Total revenues for the fourth quarter were $63.8 million, up
        approximately 0.7% from the previous year.  Total revenues for the
        twelve months ended December 31, 1995 were $248.0 million, compared
        with the previous year's $248.3 million.  Restaurant sales for the
        fourth quarter increased 1.0% to $61.8 million.  Restaurant sales
        for the total year 1995 were $239.4 million compared to $239.1
        million for the total year 1994.
   

     
            Company-owned same restaurant sales for the fourth quarter of
        1995 were down 0.6% versus the same period in 1994.  For the total
        year 1995, same restaurant sales were down 2.9% versus 1994.  The
        Company had 256 restaurants open at the end of the fourth quarter of
        1995 compared to 252 at the end of 1994.  Ten double drive-through-
        only Krystal Kwik restaurants are included in the same restaurants
        open in each year.
      

  
            The Company opened six new restaurants in 1995 versus 18 in
        1994, and franchisees opened 23 new restaurants in 1995 compared to
        22 in 1994.

        
            Fourth quarter 1995 revenues included franchise fees and
        royalties of $816,000 compared with $737,000 in the fourth quarter
        of 1994, an increase of 10.7%.  Franchise fees and royalties for the
        year 1995 were $3,038,000, compared with $2,676,000 for 1994, an
        increase of 13.5%. Krystal began franchising in late 1990 and had 80
        franchised restaurants in operation at the the end of 1995 comapared
        to 65 at the end of 1994.  Sales by franchisees were $15.6 million
        for the fourth quarter 1995, up 28.0% over the same period in 1994.
        Total 1995 sales by franchisees were $54.0 million, up 27.5% over
        1994.
   

     
            On December 15, 1995, the Company filed a voluntary petition
        under Chapter 11 of the United States Bankruptcy Code for the
        purpose of completely and finally resolving various claims filed
        against the Company by current and former employees alleging
        violations of the Fair Labor Standards Act (FLSA).  The Company is a
        debtor-in-possession for purposes of the bankruptcy case.
        Currently, approximately 5,100 current or former employees have
        filed claims in unspecified amounts alleging that they worked time
        for which they were not compensated.  The Company expects to contest
        any claims which it believes to be invalid.  The Bankruptcy Court
        has established 90 days following the mailing of notice as the bar
        date by which all claimants must file their claims or have them
        forever barred, and it is estimated that the notice will be mailed
        on or before March 8, 1996.  The Company will file a proposed
        Chapter 11 Plan as soon as practicable thereafter.  Four previously
        disclosed lawsuits filed against the Company under the FLSA have
        been stayed by the bankruptcy filing.

        
            The Krystal Company operates 256 restaurants in Alabama,
        Arkansas, Florida, Georgia, Kentucky, Mississippi, South Carolina
        and Tennessee. Krystal franchisees operate 80 restaurants located in
        Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana,
        Mississippi, North Carolina, South Carolina, Tennessee, and
        Virginia.

        
            Founded in 1932, Krystal is one of the oldest fast-food chains
        in the United States.  The Krystal Company's common stock is traded
        on the Nasdaq National Market under the symbol KRYSQ.

   
     
                          THE KRYSTAL COMPANY
        
                                               Fourth Quarter
                                            1995           1994
        
        Revenues                        $63,823,000    $63,386,000
        Net income before special chgs. $ 1,290,000    $ 2,657,000
        Net (loss) income               $(1,135,000)   $ 1,417,000
        Average shares                    7,539,000      7,510,000
        Net income per share before
         special charges                $       .17    $       .35
        Net (loss) income per share     $      (.15)   $       .19
        
                                               Twelve Months
                                            1995           1994
        
        Revenues                       $248,028,000   $248,322,000
        Net income before special
         charges                       $  3,301,000   $  7,429,000
        Net (loss) income              $ (5,324,000)  $  6,189,000
        Average shares                    7,517,000      7,512,000
        Net income per share before
         special charges               $        .44    $       .99
        Net (loss) income per share    $       (.71)   $       .82
        
                      Consolidated Statements of Operations
                      (In thousands, except per share data)
                                   (unaudited)
        
                                           3 mos. ended      12 mos. ended
                                       12/31/95  1/1/95  12/31/95   1/1/95
           Revenues:
        Restaurant sales               $61,789  $61,152  $239,376  $239,104
        Franchise fees                     114      195       618       796
        Royalties                          702      542     2,420     1,880
        Other revenue                    1,218    1,497     5,614     6,542
        Total                           63,823   63,386   248,028   248,322
           Costs and expenses:
        Cost of restaurant sales        50,347   48,782   196,831   192,256
        Deprec. and amort. expense       3,034    2,993    12,311    11,213
        Gen. and admin. expenses         6,920    5,977    26,154    25,775
        Other expenses, net              1,016    1,116     4,417     4,946
        Provision for loss on
         restaurant closings and other
         property write-downs            3,911      ---     3,911       ---
        Special charge                       0    2,000    10,000     2,000
        Total                           65,228   60,868   253,624   236,190
        
        Operating income/(loss)         (1,405)   2,518    (5,596)   12,132
        Interest expense                (1,004)  (1,030)   (4,134)   (3,801)
        Interest income                    153      277       718       820
        Income/(loss) before provision
         /(benefit) for income taxes    (2,256)   1,765    (9,012)    9,151
        Provision/(benefit) for income
         taxes                          (1,121)     348    (3,688)    2,962
        Net income/(loss)              $(1,135) $ 1,417  $ (5,324) $  6,189
           Earnings/(loss) per
            common share:              $ (0.15) $  0.19  $  (0.71) $   0.82
        Wtd. avg. number of common
         shares outstanding              7,539    7,510     7,517     7,512
        
            NOTE:  This is not a complete set of financial statements.  The
        1995 statements are subject to further audit and reclassifications.
        
                            Consolidated Balance Sheets
                                  (In thousands)
        
                                                       12/31/95     1/1/95
           ASSETS                                     (Unaudited)  (Audited)
           Current Assets:
        Cash and temporary investments               $ 13,713   $ 14,804
        Receivables                                     1,752      2,158
        Income tax receivables                            609        ---
        Net investment in direct financing leases -
         current portion                                  856        766
        Inventories                                     2,322      2,137
        Deferred tax asset                              5,553      2,319
        Prepayments and other                             830        781
        Total current assets                           25,635     22,965
        Net investments in direct financing leases,
         excluding current portion                        867      1,723
        Property, buildings and equipment, net         98,546     98,798
        Leased properties, net                          1,863      2,090
           Other assets:
        Cash surrender value of life insurance          5,117      4,429
        Other                                             667        781
        Total other assets                              5,784      5,210
        Total assets                                 $132,695   $130,786
        
           LIABILITIES AND SHAREHOLDERS' EQUITY       12/31/95    1/1/95
           Current Liabilities:                      (Unaudited) (Audited)
        Accounts payable                             $  1,681   $  7,104
        Accrued liabilities                             8,962     12,803
        Current portion of long-term debt                 432      3,472
        Current portion of capital lease obligations      653        621
        Income taxes payable                              ---        318
        Total current liabilities                      11,728     24,318
        Liabilities subject to compromise              57,480        ---
        Long-term debt, excluding current portion       3,621     40,053
        Capital lease obligations, excluding current
         portion                                        2,754      3,438
        Deferred income taxes                           2,719      4,495
        Other long-term liabilities                     7,746      6,846
           Shareholders' equity:
        Preferred stock, without par value; 5,000,000
         shares authorized; no shares issued and
         outstanding                                      ---        ---
        Common stock, without par value; 15,000,000
         shares authorized; shares issued and
         outstanding:  7,509,848 at Jan. 1, 1995
         and 7,526,808 at Dec. 31, 1995                40,830     40,909
        Retained earnings                               8,195     13,438
        Deferred compensation                          (2,378)    (2,711)
        Total shareholders' equity                     46,647     51,636
        Total liabilities and shareholders' equity   $132,695   $130,786
        
            NOTE:  This is not a complete set of financial statements.  The
        1995 statements are subject to further audit and reclassifications.

        
        CONTACT:  Cam Scearce, Krystal Company, 423-757-1510


GRAND PALAIS DISCLOSURE STATEMENT APPROVED
        


            BILOXI, Miss., Feb. 29, 1996 - Casino America, Inc.
        (Nasdaq: CSNO) and Grand Palais
Riverboat, Inc.
, a wholly owned
        subsidiary of Hemmeter Enterprises, Inc., announced today that the
        Bankruptcy Court in the Eastern District of Louisiana today approved
        the Disclosure Statement submitted by Grand Palais.  Approval to the
        Plan of Reorganization will now be solicited from all parties.  A
        hearing to confirm the Plan has been scheduled for March 26, 1996.
        


            The closing of the transaction is subject to a number of other
        conditions, including regulatory approvals and other consents and
        approvals.  The parties are currently anticipating a closing of the
        transaction to occur within 60 days.

        
            Casino America, Inc. owns and operates four riverboat and
        dockside casinos.  The Company currently operates the Isle of Capri
        Casino in Biloxi, Mississippi, the Isle of Capri Casino in
        Vicksburg, Mississippi, and the Isle of Capri Casino in Bossier
        City, Louisiana.  The Isle of Capri Casino in Bossier City,
        Louisiana, is a joint venture between Casino America, Inc. and
        Louisiana Downs.  This joint venture also has a separate joint
        venture with Crown Casino Corporation to operate an Isle of Capri
        Casino near Lake Charles, Louisiana.
   


        CONTACT:  Allan B. Solomon, Executive Vice President, 601-436-7005,
        or Rex Yeisley, Chief Financial Officer, 601-436-7054, or Douglas
        Draper, Counsel for Grand Palais, 504-581-9595


        
STROH TO ACQUIRE ALL G. HEILEMAN BREWING ASSETS

        
            DETROIT and ROSEMONT, Ill., Feb. 29, 1996 - The Stroh
        Brewery Company and G. Heileman Brewing Company, Inc., announced
        today that Stroh and Heileman have signed a letter of intent
        providing for the acquisition by Stroh of all Heileman assets.
        


            The transaction, which is expected to be completed by July 1996,
        includes Stroh's acquisition of Heileman's five breweries located in
        LaCrosse, Wisconsin; Baltimore, Maryland; Portland, Oregon; Seattle,
        Washington; and San Antonio, Texas; and a beverage manufacturing
        facility in Perry, Georgia.  Stroh also will acquire all of
        Heileman's brands, including Special Export, Old Style, Rainier,
        Henry Weinhard, Schmidt's, Lone Star, Champale, Colt 45, and
        Mickey's.
        


            "We are extremely pleased to be acquiring Heileman," said
        William L. Henry, President and Chief Executive Officer of The Stroh
        Brewery Company.  "The combination of the companies' employees, high-
        quality brand portfolios, and strategically located breweries will
        create significant strengths.  We will become a stronger competitor
        in a highly competitive industry, both domestically and
        internationally."

       
            Thomas 0. Hicks, Chairman and Chief Executive Officer of Hicks,
        Muse, Tate & Furst Incorporated, Heileman's current controlling
        shareholder, said:  "Since we acquired Heileman in 1994, we have
        awaited a rebound of the beer industry and an improvement in
        Heileman's financial performance, neither of which, for various
        reasons, has yet occurred.  Accordingly, we have determined to focus
        our resources elsewhere.  While the performance of our investment in
        Heileman has been disappointing, we are proud that, reflecting the
        outstanding performance of the rest of our investment portfolio, the
        overall performance of our Equity Fund II - even after our loss on
        Heileman of approximately $54 million - is an indicated internal
        rate of return of at least 30 to 40 percent."
    

    
            M.L. Lowenkron, President and Chief Executive Officer of G.
        Heileman Brewing Company, Inc., said:  "Although this was a
        difficult decision to make, I believe that, in light of our current
        financial position, this transaction is not only a positive move for
        Stroh, but also for many employees of Heileman.  It helps to ensure
        that our fine beer brands will continue to be available to our
        customers and it strengthens the position of the combined enterprise
        as a viable, long term competitor in the beer industry."
       


            Under the letter of intent, Stroh, upon consummation of the
        transaction, will retire Heileman's bank debt, assume all trade and
        other specified liabilities of Heileman, and issue a combination of
        Stroh debt and equity securities that Heileman will exchange for its
        outstanding bonds and common stock.  The Stroh securities to be
        issued include an estimated $60 million to $70 million of ten-year
        senior subordinated notes bearing interest at 425 basis points over
        treasury securities of corresponding maturity (with the exact amount
        of such notes to be determined by a formula); $5 million of 11%
        junior subordinated notes; and ten-year warrants for 7.5% of the
        outstanding Stroh common stock.  The warrants would be subject to a
        put-call arrangement in five years based upon appraised fair market
        value.

        
           The letter of intent is subject to negotiation of definitive
        agreements, regulatory approvals, Heileman stockholder and
        bondholder approval, and other conditions.  The closing of the
        transaction is expected to take place by July 1, 1996, subsequent to
        a pre-arranged bankruptcy filing by Heileman, which will be used to
        confirm the restructuring of Heileman's existing senior subordinated
        notes and of its equity.  All trade liabilities will be assumed by
        Stroh.  A majority of Heileman's stockholders, and an informal
        noteholder committee consisting of holders of approximately 50% of
        Heileman's outstanding senior subordinated notes, have indicated
        their full support of the transaction and the restructuring.

        
            "The acquisition of Heileman is an integral part of Stroh's
        long- range plans," Mr. Henry said.  "We recognize the challenges
        facing the combined company, but are confident that we can lead an
        expedited, smooth transition and meet those challenges effectively
        and efficiently," he concluded.
   

     
            The Stroh Brewery Company, family owned and operated since 1850,
        is the nation's fourth largest brewing company, with brewing
        facilities in St. Paul, Minnesota; Longview, Texas; Lehigh Valley,
        Pennsylvania; Winston-Salem, North Carolina; and Tampa, Florida.
        Stroh produces a number of high-quality beer brands including
        Stroh's, Old Milwaukee, Schlitz, Schaefer and Schlitz Malt Liquor.

        
            G. Heileman Brewing Company, Inc., founded in 1858, is the fifth
        largest brewing company in the United States.  Since January 1994,
        the controlling shareholder of Heileman has been an affiliate of
        Hicks, Muse, Tate & Furst Incorporated, a private investment firm
        with offices in Dallas, New York, St. Louis, and Mexico City.
   


        CONTACT:  Lacey Logan of Stroh, 313-446-3118; or Roy Winnick
        of Kekst and Company, 212-593-2655, for Heileman



CONSUMAT SYSTEMS ANNOUNCES
REORGANIZATION PLAN CONFIRMED BY BANKRUPTCY COURT
        


            RICHMOND, Va., Feb. 29, 1996 - href="chap11.consumat.html">Consumat Systems, Inc.
        (OTC-Bulletin Board: CSMT), the Richmond, Virginia based
        incineration and pollution control equipment manufacturer, announced
        today that its Second Amended Plan of Reorganization has been
        confirmed by the United States Bankruptcy Court for the Eastern
        District of Virginia in Richmond.  Robert L. Massey, President and
        Chief Executive Officer of Consumat, stated that "the votes from
        both our creditors and our stockholders were overwhelmingly in favor
        of the Plan."
        


            As previously reported, the Company filed for protection under
        Chapter 11 of the United States Bankruptcy Code on October 6, 1995.
        The filing was precipitated by several pieces of protracted
        litigation and difficulty in raising capital due to the litigation.
        Sirrom Capital Corporation (Sirrom), a small business investment
        company based in Nashville, Tennessee, has provided $1 million in
        capital to the Company during the bankruptcy case.  Sirrom has
        agreed to provide an additional $500,000 to the Company to fund the
        Plan of Reorganization and to fund the future growth of the
        business.

        
            The Company also announced preliminary unaudited results for the
        year ended December 31, 1995, which indicate net income of $89,126
        on revenues of $4,399,309.  Audited results for this period should
        be released prior to the end of March.  Mr. Massey stated that "we
        are very pleased with these results since they were achieved despite
        significant professional fees associated with litigation and the
        bankruptcy."  He further stated that "the quarter ended December 31,
        1995 was the sixth consecutive quarter of profitable operations and
        backlog has continued to improve with the infusion of new capital."
   


        CONTACT:  Robert L. Massey or Mark E. Hills of Consumat Systems,
        Inc., 804-746-4120




U.S. ATTORNEY ANNOUNCES LOCAL CHARGES AS PART OF NATIONAL BANKRUPTCY
FRAUD INITIATIVE, "OPERATION TOTAL DISCLOSURE"

        
            BOSTON, Feb. 29, 1996 -  As part of a national crackdown
        on bankruptcy fraud announced by U.S. Attorney Janet Reno today,
        U.S. Attorney Donald K. Stern and F.B.I. Special Agent-in-Charge
        Richard S. Swensen announced that four federal criminal cases have
        been filed in Boston against current and former Massachusetts
        residents, charging them with bankruptcy fraud.  These cases were
        referred by the U.S. Trustee's Office.
        


            U.S. Attorney Donald K. Stern explained the importance of the
        cases to Massachusetts:  "The number of bankruptcy cases filed in
        Massachusetts remains high, so the potential for abuse is great.
        Ten years ago only a few thousand bankruptcy cases were filed here
        each year, but in the late eighties and early nineties the numbers
        soared and have remained high through today, topping over 14,000.
        The dollars at stake are also significant: in the last 2-1/2 years,
        over $100 million has been collected and distributed to creditors by
        the bankruptcy Trustee in Massachusetts.  This volume of continued
        bankruptcy business means we must remain vigilant against anyone
        tempted to cheat the system."

        
            "The bankruptcy system is a good one, if it works fairly,"
        explained Stern.  "Deserving debtors get a fresh start, or at least
        some breathing room to get back on their feet.  Creditors who are
        owed money receive their fair share of whatever assets the bankrupt
        had."
   

     
            "But," continued Stern, "in the criminal cases announced today,
        the bankrupt debtors cheated their creditors, by hiding assets,
        keeping monies for themselves, or not allowing the creditors, who
        are often small businesses, to receive what was fairly owed to
        them."
      

  
            Stern commented, "Debtors shouldn't get a false start. They
        should get a fresh start."

        
            The federal criminal bankruptcy fraud charges announced today in
        Massachusetts are against JEROME ROSEN, 77, of 36 Bullard Road,
        Weston, Massachusetts; JAMES D. KINKEAD, 57, of Florida, and
        formerly of 48 Birch Road, Natick, Massachusetts; DAVID M. FLANAGAN,
        41, of 640 Central Avenue, Leominster, Massachusetts; and JAMES D.
        CROWLEY, 44, of 131 Jefferson Street, Braintree, Massachusetts.
   

     
            Attorney JEROME E. ROSEN was charged in a four-count mail fraud
        indictment with trying to defraud creditors by concealing over
        $500,000 which he and others were to receive from the sale of land
        in Maine owned by bankruptcy debtor N.E. Tri-State.
      

  
            JAMES D. KINKEAD was charged in a two-count bankruptcy fraud
        indictment with having concealed, during his personal bankruptcy
        proceedings, his ownership of a computer equipment sales business
        called Express U.S.A., Inc., and of his interest in a Maine
        condominium.  According to the indictment, KINKEAD tried to hide the
        ownership interest in the computer company by incorporating it in
        his then wife's name, without her knowledge or consent, to protect
        the business from his creditors.  After his personal bankruptcy
        proceeding was concluded, KINKEAD caused ownership to be conveyed to
        himself.
        


            DAVID M. FLANAGAN was charged in a four-count bankruptcy fraud
        indictment with concealing nearly $100,000 in assets in his
        bankruptcy. He is alleged to have concealed his ownership of real
        property located at 640 Central Street, Leominster, Massachusetts;
        with making a false statement concerning his ownership of a
        corporation called Corporate Realty, Inc., which owned an apartment
        building at 100-104 Daniels Street, Fitchburg; Massachusetts;  with
        making false statements in his bankruptcy schedules falsely denying
        that he was an officer of Corporate Realty Inc., when in fact he
        was;  and with falsely representing that he paid rent for his
        personal residence, when in fact, he paid no such rent and actually
        owned the property.

        
            JAMES R. CROWLEY was charged in a one-count information with
        fraudulently concealing money belonging to bankruptcy debtor
        Colonial Color Corporation, a company he controlled, by taking
        checks worth about $27,000 for himself, although the checks were
        really assets of Colonial Color Corporation.
   

     
            The four defendants announced today face maximum penalties of
        five years' imprisonment and a $250,000 fine on each of the counts
        charged.
      

  
            In addition to the four new criminal cases in Massachusetts
        announced today, other bankruptcy fraud convictions have been
        obtained by the U.S. Attorney's Office in Massachusetts during the
        last year, including the following:

        
            Earlier this month, Attorney MARTHA KLEINERMAN pleaded guilty to
        having embezzled about $9,200 in funds belonging to a bankruptcy
        debtor client.
   

     
            In January, 1996, JOHN J. SNELL, Sr., pleaded guilty to having
        concealed jewelry and a bank account, with a total value of about
        $40,000 in his bankruptcy.
      

  
            Also in January, MAURICE LAVOIE pleaded guilty to having
        concealed furniture inventory of bankruptcy debtor Linwood Mills,
        Inc., a company he owned and operated.
        


            In 1995, Attorney JOHN A. MAIONA, who was formerly a bankruptcy
        trustee, was convicted of having embezzled more than $1 million from
        bankruptcy debtors for which he was serving as trustee.
        


            In 1995, bankruptcy debtor IAN EDWARDS was convicted by a jury
        for having concealed his interest in a Barbados condominium.

        
            In 1995, bankruptcy debtor MICHAEL SHADDUCK, a financial
        advisor, was convicted by a jury for concealing his ownership of
        more than $100,000 which he had given to a friend to hold while he
        filed for bankruptcy;  and for falsely denying the existence of life
        insurance policies, a pension plan and a bank account.  His wife,
        ANDREA SHADDUCK, a co-debtor in bankruptcy, was also convicted of
        one count of making a false statement in the bankruptcy schedules
        concerning the bank account.
   

     
            Nationwide, as part of "Operation Total Disclosure" announced
        today, criminal charges were filed in 123 defendants in 36 federal
        districts.
      

  
            Across the country, as of September 30, 1995, there were 883,000
        bankruptcy cases pending in federal courts, involving $7 billion in
        assets and several times that in claims.  Among the largest
        creditors is the U.S. Treasury which is owed over $12 billion.

        
            "Operation Total Disclosure" was the result of a multi-agency
        effort involving the United States Trustee Program, U.S. Attorneys,
        the FBI and the Criminal Division and Tax Division of the Department
        of Justice, in close coordination and participation with the
        Internal Revenue Service and the Postal Inspection Service.  There
        are 21 U.S. Trustees who are responsible for overseeing the
        administration of cases filed under the United States Bankruptcy
        Code throughout the United States.
   

     
            Attorney General Reno said that the Justice Department's
        intensified bankruptcy fraud enforcement efforts would continue
        indefinitely.  She praised the U.S. Attorneys and U.S. Trustees for
        giving additional resources and priority to the crackdown on
        bankruptcy fraud.
      

  
            The four new charges announced today in Massachusetts were
        investigated by agents of the Federal Bureau of Investigation, were
        referred by the U.S. Trustee's Office in Boston and Worcester, and
        are being prosecuted by Assistant U.S. Attorney Mark J. Balthazard
        of Stern's Economic Crimes Unit.

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



Midisoft reports 1995 results


            ISSAQUAH, Wash. -- Feb. 29, 1996 -- Midisoft
        Corporation (Nasdaq National Market: MIDI) today reported financial
        results for its fourth quarter and year ended December 31, 1995.  
        


            Revenues for the year ended December 31, 1995 were $5,420,000
        compared to $4,989,000 in the prior year.  After a non-recurring
        restructuring charge of $3,898000, or $.84 per share, the Company
        reported a net loss of $12,132,000 or $2.60 per share compared to
        net income of $118,000 in 1994.  

        
            As previously reported, in the second half of 1995 Midisoft
        significantly restructured its operations, including the ending of
        support for products not directly related to the Company's core
        competencies in audio and music software; comprehensive management
        changes; and workforce reductions.  In this regard, included in the
        non- recurring restructuring charge for 1995 was the write-off of
        capitalized software associated with prior investments in
        educational and presentation products.  In addition the company
        incurred significant severance expenses associated with recent
        management changes and workforce reductions.  Also during 1995,
        additional costs were incurred in sales and marketing and research
        and development related to discontinued and restructured areas of
        the Company's business.  
   

     
            On February 27, 1996, Midisoft announced that it settled,
        without admission of wrongdoing, the class action securities lawsuit
        filed against it in March 1995.  Pursuant to the settlement, the net
        loss in the fourth quarter and year ended December 31, 1995 included
        a charge of $1,643,750, the value of the cash and common shares
        contributed by Midisoft in the settlement.  

        
            Also contributing to the Company's increased expenses in 1995
        were higher accounting and legal costs associated with the above
        noted shareholder suit; increases in sales and marketing associated
        with several new product releases and upgrades; higher expenses from
        amortization of capitalized software; and settlement of a 1993
        lawsuit with a former employee.  These higher expenses could not be
        offset by the modest increase in sales, particularly in the second
        half of 1995, which were the result of the late introduction of
        certain new products and the increased allowances for returns of
        older products.  
   

     
            Larry Foster, Midisoft's new President and Chief Operating
        Officer, commented, "1995 was a year of profound change for
        Midisoft. Although these changes had a negative impact on the
        Company's financial results for the year, we believe Midisoft has
        entered 1996 as a conservatively managed technology company which
        has retained its focus and leadership position in the market for
        audio, music and media integration software.  We have eliminated non-
        performing business areas and personnel while significantly
        strengthening our product development, channel sales and marketing
        capabilities.  Throughout this aggressive program, we have carefully
        managed our assets and remain in a stable financial position, with
        cash and investments of $3.7 million, working capital of $5 million
        (excluding settlement accrual to be resolved with common stock), and
        no debt.  With our streamlined organization and significantly lower
        expenses expected in 1996, which should result in a positive cash
        flow for the first time in the Company's history, we believe we are
        sufficiently capitalized to meet our 1996 business plan."  

        
            With respect to the outlook for sales in 1996, Mr. Foster noted
        that existing distribution channels for Midisoft products had been
        largely cleared of older and discontinued products by the 1995 year-
        end.  Commenting on new products, he said, "By the end of 1995,
        Midisoft offered a roster of 13 innovative multimedia and music
        products for the consumer, professional and OEM markets.  We expect
        a growing revenue contribution to the Company this year from these
        products which include the upgraded, Windows 95-compliant 4.0
        version of our flagship Midisoft Studio(TM) and the Midisoft Play
        Piano(TM) CD-ROM, which has novice musicians playing popular songs
        in just hours.  

        
            Mr. Foster added that the Company has recently strengthened its
        base of retailers.  "In addition to our ongoing relationships with
        such leading names as Computer City, Best Buy and Incredible
        Universe, already this year we have added a significant new retail
        channel for Midisoft products, Tower Records, with more than 90
        stores, and have expanded the number of Midisoft products carried at
        major software retailers including Electronics Boutique, CompUSA and
        MediaPlay Stores.  The Midisoft MediaWorks multimedia product suite
        for business solution, is being sold to leading OEMs, including NEC,
        Acer and IBM, for integration with their computer products.  We will
        soon introduce an upgraded version of MediaWorks which further
        leverages Midisoft's audio expertise and positions the Company for
        growth in this expanding market."  

        
            Raymond Bily, Midisoft's Chairman and Chief Executive Officer,
        said, "Contributions from the new members of our management team
        cannot be underestimated.  Larry Foster and Melinda Bryden, our new
        CFO, leveraged their many years of experience in their respective
        areas of expertise to help Midisoft complete its reorganization and
        return to our core competencies."  
   

     
            Mr. Foster concluded, "Our refocus on our core strengths in
        audio and music technology combined with our significantly reduced
        expense structure, position Midisoft to improve its operating
        results this year.  We will work diligently to increase our sales
        and manage our capital."  
      

  
            Midisoft is a leader in audio, music and media integration
        software sold at retail and licensed to hardware manufacturers.


        
                            MIDISOFT CORPORATION
                          STATEMENTS OF OPERATIONS
                     (In thousands except per share data)
        
                                 (Unaudited)              (Audited)
                              Three Months Ended          Year Ended
                                 December 31,             December 31,
        
                               1995         1994        1995         1994
        
        Revenues               $     959      $     685    $ 5,420     $
        4,989
        Cost of revenues             790            275      2,490
        1,082
        Gross profit                 169            410      2,930
        3,907
        
        Operating expenses:
         Sales and marketing       1,149            680      4,097
        2,142
         General and
          administrative           1,261            578      4,015
        1,160
         Research and development    565            253      1,787
        617
         Restructuring charge      1,529              -      3,898
        -
         Settlement expense        1,644              -      1,644
        -
         Total operating expenses  6,148          1,511     15,441
        3,919
        
        Operating income (loss)   (5,979)        (1,101)   (12,511)
        (12)
        
        Interest and other income     40            126        379
        183
        
        Income (loss) before
         taxes                    (5,939)          (975)   (12,132)
        171
        
        Provision for income
         taxes                         -           (331)
        -          53
        
        Net income (loss)      $ (5,939)      $   (644)   $(12,132)    $
        118
        
        Net income (loss)
         per share             $  (1.27)      $  (0.14)  $  (2.60)     $
        0.03
        
        Weighted average shares
         outstanding             4,685           4,549      4,665
        3,850
        
        NOTE: EPS for each quarter are based upon on the weighted average of
        shares outstanding for each period and the sum of quarters may not
        necessarily be equal to the full year.  


                            MIDISOFT CORPORATION
                              BALANCE SHEETS
                              (In thousands)
        
        ASSETS
        
                                       December 31,
                                        Audited
                                    1995        1994
        
        Current assets:
        
         Cash and cash equivalents      $2,143     $ 9,601
         Short term investments          1,540           -
         Accounts receivable             2,329       3,844
         Inventories                       494         679
         Prepaid and other expenses        266         276
         Deferred income taxes               -         283
          Total current assets           6,772      14,683
        Property & equipment               562         447
        Capitalized software and
         other costs, net                1,230       1,634
            Total assets            $8,564     $16,764

        
        LIABILITIES & SHAREHOLDERS' EQUITY
        
                                       December 31,
                                    1995        1994
        
        Current liabilities:
        
         Trade accounts payable       $   429      $   467
         Accrued wages & payroll taxes    260          140
         Other accrued expenses         1,804          115
         Deferred revenue                 807          785
        Total current liabilities   3,300        1,507
        Deferred income taxes               -          291
        
        Shareholders' equity
         Common stock                  17,106       14,676
         Retained earnings (deficit)  (11,842)         290
          Total shareholders' equity    5,264       14.966
          Total liabilities and
           shareholders' equity       $ 8,564      $16,764
        

        
        CONTACT: Midisoft Corporation            
                 Melinda Bryden, CFO            
                 (206) 391-3610 (ext. 440)         
                   or
                 MIDI'S INVESTOR RELATIONS COUNSEL:
                 The Equity Group Inc.
                 Tamara Ehlin      (212) 836-9607
                 Robert Goldstein      (212) 371-8660


        
IRS PARTICIPATES IN BANKRUPTCY FRAUD KICK-OFF DAY

        
            SEATTLE, Feb. 29, 1996 - The Internal Revenue Service is
        pleased with the Department of Justice's announcement of its
        intention to vigorously enforce bankruptcy laws by prosecuting
        individuals who file fraudulent bankruptcy petitions.
        


            Nationwide, bankruptcy filings have more than tripled from
        300,000 in 1980 to approximately 1,000,000 in 1994.  The increase in
        bankruptcy filings has also resulted in a correlative increase in
        fraudulent bankruptcy filings.  The Executive Office for the United
        States Trustees estimates that 10 percent of bankruptcy filings
        involve some type of fraud.

        
            Each year fraudulent bankruptcy filings cost U.S. taxpayers
        millions of dollars in uncollectible taxes.  In an effort to protect
        tax revenues, the Internal Revenue Service has focused its attention
        on the growing bankruptcy fraud issue.  In Washington state the
        Examination and Collection Divisions are keeping alert to and
        reporting potential illegal activity relating to questionable
        bankruptcy filings to the Internal Revenue Service's Criminal
        Investigation Division.  In addition, professionals who willfully
        assist debtors in filing false bankruptcy petitions will also be
        pursued.
   

     
            "Debtors who file bankruptcy and do not accurately report assets
        or otherwise defraud creditors impacts everyone.  As taxpayers we
        expect everyone to pay their fair share and these persons may not.
        As citizens, anyone able to get out of paying their debts results in
        the costs of those lost debts being added to the costs of goods
        sold.  So everyone pays for the bankruptcy bad debts somehow," says
        Judy Monahan, IRS spokesperson in the Seattle District.


        CONTACT:  Judy Monahan of the Internal Revenue Service,
        206-220-5782



WAINOCO REPORTS 1995 RESULTS

        
            HOUSTON, Feb. 29, 1996 - Wainoco Oil Corporation (NYSE:
        WOL) announced the results of its operations for the full year and
        fourth quarter of 1995.  A loss of $7.1 million was incurred in the
        fourth quarter including a charge of $1.7 million related to a
        corporate reorganization resulting in a net loss for 1995 of $19.1
        million ($.70 per share).  In 1994, Wainoco reported a net loss of
        $12.6 million ($.46 per share). In the fourth quarter of 1994 the
        loss was $18.7 million which included a $17.3 million charge
        relating to the termination of its U.S. E & P business.
        


            For 1995, Wainoco's operating income before depreciation and the
        fourth quarter charge was $24.1 million, compared to $51.4 million
        in 1994.  Refining operations contributed $10.0 million and oil and
        gas operations contributed $16.8 million, of which $12.4 million was
        generated by Canadian operations.  The comparable numbers were $30.7
        million, $23.3 million and $16.3 million, respectively, in 1994.
        Operating income was $1.0 million versus $7.4 million for 1994.
        Cash flow from operations before changes in working capital was $3.0
        million in 1995 compared to $31.8 million in 1994.

        
            Wainoco's poor financial results in 1995 were due to the lowest
        refining operating margins in nine years at Frontier and the
        collapse of natural gas prices in Canada.  Our average product
        spread dipped from $5.88 per sales bbl in 1994 to $4.03 in 1995 and
        Canadian gas prices dipped from $1.31 (C$1.79) per mcf in 1994 to
        $.90 (C$1.24) in 1995.
   

     
            On the positive side, the refinery ran at the highest rate it
        has ever achieved and posted an 8 percent reduction in operating
        costs per barrel.  The Company's focus on crude oil exploration in
        1995 resulted in the discovery of 1.3 million bbls of oil, replacing
        442 percent of its liquids production.  Its finding cost for the
        year was $3.42 per boe and its finding and development cost was
        $4.50 per boe.  Also, Wainoco's total debt at year end was $146
        million, $25 million lower than year end 1994 and the company had no
        bank debt.  Additionally, the reorganization announced in December
        1995 will reduce general and administrative expense by approximately
        $2.5 million beginning in 1996.
      

  
            Wainoco Oil Corporation is a North American oil and gas
        exploration, production and refining company with operations in the
        United States and western Canada.  Wainoco's common shares are
        listed on the New York Stock and Alberta Stock Exchanges under the
        symbol "WOL".
        



                             WAINOCO OIL CORPORATION
        
                                        Year Ended       Three Months Ended
                                        December 31,         December 31,
                                    1995        1994       1995      1994
        
        FINANCIAL (Financial information in thousands except per share)
         Revenues
          Refining Operations   $  331,953  $  313,187  $  84,608 $  81,840
          Oil and Gas Operations
              - Canada              21,096      24,133      4,821     5,640
          Oil and Gas Operations
              - United States        9,817      16,395      1,297     3,941
           Total                   362,745     353,715     90,736    91,421
          Operating income before
           depreciation and fourth
           quarter charge
          Refining Operations       10,013      30,721      2,550     5,747
          Oil and Gas Operations
             - Canada               12,378      16,272      2,213     3,685
          Oil and Gas Operations
             - United States         4,377       7,004        395     1,998
           Total                    24,120      51,394      4,569    10,650
         Operating income (loss)
          Refining Operations        1,542      23,019        337     3,746
          Oil and Gas Operations
             - Canada                2,737       6,145         25     1,172
          Oil and Gas Operations
             - United States          (623)    (19,206)    (1,900)  (17,655)
           Total                     1,008       7,355     (2,127)  (13,517)
          Net loss                 (19,125)    (12,607)    (7,069)  (18,695)
          Loss per share              (.70)       (.46)      (.26)     (.68)
          Net cash provided by
           operating activities
           before changes in
           working capital           3,020      31,816        500     6,563
          Net cash provided by
           operating activities      9,878      32,108      9,867    13,781
          Average shares
           outstanding              27,254      27,335     27,256    27,250
          Average exchange rate
          (US$/C$)                   .7290       .7322      .7380     .7308
        
        OIL AND GAS
         Oil production (bbls)
             - Canada              284,000     224,000     87,000    52,000
             - United States       409,000     696,000     77,000   166,000
         Gas production (mmcf)
             - Canada               15,359      15,325      3,511     3,972
             - United States           593       2,993         96       775
         Average oil price ($/bbl)
             - Canada                14.46       12.80      14.58     13.62
             - United States         15.94       14.99      15.76     15.55
         Average gas price
          (Canadian$/mcf)             1.24        1.79       1.22      1.55
        
        REFINING (bpd)
         Total charges              40,344      37,295     41,230    39,581
         Gasoline yields            17,263      16,106     17,903    16,806
         Distillate yields          13,744      13,094     15,125    14,906
          Total sales               40,813      38,789     41,960    40,702
        
        RESERVES (At year end)                Canada         United States
                                          1995      1994     1995     1994
        
         Oil (mbbls)                     2,352     1,308        -     3,284
         Gas (bcf)                       112.7     120.9        -      35.3
         Pretax future net income at constant
         prices, discounted at 10 percent
         (in thousands)               $ 63,852  $ 68,865        -  $ 36,020
        
        KEY TERMS
        bbl   barrel
        bpd   barrel per day
        mbbls      thousand barrels
        mcf   thousand cubic feet
        mmcf  million cubic feet
        bcf   billion cubic feet

       
        CONTACT:  Larry E. Bell of Wainoco Oil Corporation, 713-658-9900


BUCKS RACEHORSE OWNER INDICTED FOR MAIL FRAUD IN KILLING OF
RACEHORSE; ALSO CHARGED WITH BANKRUPTCY FRAUD
        


            PHILADELPHIA, Feb. 29, 1996 - The following was issued by
        the U.S. Attorney's Office, Eastern District of Pennsylvania:
        


            A Bucks County racehorse owner and trainer has been indicted by
        a federal grand jury for mail fraud in connection with the alleged
        killing of one of his racehorses, and five counts of bankruptcy
        fraud.
      

  
            The indictment was announced today (Feb. 29, 1996) by Michael R.
        Stiles, U.S. Attorney, Eastern District of Pennsylvania; John R.
        Stonitsch, Acting United States Trustee, and Bob C. Reutter, Special
        Agent in Charge, Federal Bureau of Investigation.
        


            It is part of a nationwide campaign called "Operation Total
        Disclosure" launched today by Attorney General Janet Reno that is
        aimed at prosecuting people who illegally conceal assets, file
        fraudulent bankruptcy petitions, or otherwise abuse the bankruptcy
        system.

        
            The indictment charges Robert P. Deo, DOB: 3/14/58, of
        Buckingham, Bucks County, PA, with five counts of concealment of
        bankruptcy estate assets and false statements in bankruptcy
        proceedings, and one count of mail fraud.
   

     
            According to the indictment, the mail fraud arises from a scheme
        to defraud the Lloyds Livestock Insurance Company of London,
        England, of approximately $75,000 in insurance proceeds on the death
        of a racehorse Deo owned named "Oblige."
      

  
            Oblige, the indictment charges, had a promising racing career.
        But in the spring of 1994, the horse was plagued by lameness and was
        no longer a profitable investment for Deo, who then took various
        measures to kill the horse and collect on the insurance.

        
            In the spring and early summer of 1994, Deo tried to enlist
        someone at Philadelphia Park to make Oblige "disappear."  He then
        tried to poison the horse by causing it to ingest turpentine.  And
        he routinely tried to break the horse down by continuing to run it
        while it was lame and sore.
   

     
            Finally, according to the indictment, on June 15, 1994, Oblige
        was stricken with an acute painful and massive infection of the
        foreleg that resulted from the lethal introduction of E Coli
        bacteria (commonly found in fecal matter) into the horse's knee
        joint.
      

  
            Deo, the indictment charges, was responsible for causing this
        fatal infection.  Oblige was euthanized on June 22, 1994, when
        veterinarians could not save the animal.

        
            Deo is also charged with filing for bankruptcy and concealing
        his assets - four thoroughbred racehorses including Oblige - from
        the Bankruptcy Court and his creditors.
   

     
            Deo created a sham corporation called "Zeus Equestrian" and
        transferred the horses to this corporation.  Deo, however,
        maintained defacto ownership and control over the animals, the
        indictment charges.
      

  
            In the bankruptcy proceedings, Deo failed to identify the horses
        as assets, or otherwise disclose them in the financial papers filed
        with the court.
        


            The indictment reflects increased attention by law enforcement
        authorities in this district to bankruptcy fraud in recent years.
        Prosecutions have ranged from debtors such as Ronald Galati, who
        received a four-year sentence after being convicted of racketeering
        and providing false information to the bankruptcy trustee, to
        attorneys and trustees such as David Fishbone, a Philadelphia
        bankruptcy attorney who pleaded guilty and received a 53-month
        sentence for embezzling $2.24 million from bankrupt estates in the
        largest embezzlement case ever brought against a bankruptcy
        attorney.

        
            The United States Trustee's Office also has been actively
        involved in pursuing affirmative legal action against "bankruptcy
        petition preparers" who assist debtors in preparing bankruptcy
        petitions for a fee.
   

     
            Action is taken in these cases in order to prevent
        unsophisticated individual debtors from being victimized by the
        unscrupulous and illegal practices of many "bankruptcy petition
        preparers."
      

  
            As a result of the efforts of the United State Trustee's Office,
        the Bankruptcy Court has enjoined numerous petition preparers from
        continuing to assist debtors in filing bankruptcy cases.

        
            In one such case, United State Trustee v. Legal Aid Services,
        the United State Trustee was successful in obtaining a nationwide
        injunction against the defendant and having the court impose civil
        penalties against the defendant.
   

     
            The Legal Aid Services case is noteworthy because it was one of
        the first cases in which relief was obtained under the newly enacted
        Bankruptcy Code Section 110, which now authorizes the Bankruptcy
        Courts to regulate the conduct of non-attorneys who assist debtors
        in filing bankruptcy.
      

  
            In announcing "Operation Total Disclosure," the Attorney General
        said, "Our economy depends on there being a trustworthy system that
        protects lenders and is fair to everyone.  Bankruptcy fraud
        victimizes all of us."

        
            As of Sept. 30, 1995, there were 883,000 bankruptcy cases
        pending in the nation's federal courts, involving $7 billion in
        assets and several times that in claims.  Among the largest
        creditors is the U.S. Treasury which is owed more than $12 billion.
   

     
            The Deo case was handled by Assistant U.S. Attorney Suzanne B.
        Ercole.  Joesph Minni, Senior Staff Attorney, United States Trustees
        Office, assisted in the case.  The Thoroughbred Racing Protective
        Bureau assisted in the investigation.
     


        CONTACT:  Fred Hamilton, public affairs officer of the U.S.
        Attorney's Office, 215-451-5636