TCR_Public/960315.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For - March 15, 1996



  1. Hills Stores reports its year-end and fourth quarter financial results
  2. TELULAR CORPORATION RESPONDS TO STOCKHOLDER INQUIRIES...
  3. TCBY reports improved operating results for first quarter
  4. KERR ANNOUNCES 1995 RESULTS
  5. COURT MAKERS RULING REGARDING SPECTRUM INFORMATION PLAN
  6. Boston Restaurant Associates, Inc. announces third quarter results
  7. ATARI CORPORATION ANNOUNCES RESULTS FOR THE YEAR AND FOURTH QUARTER 1995
  8. McLOUTH STEEL PRODUCTS COMMENCES ORDERLY SHUTDOWN EFFECTIVE MARCH 16
  9. U.S. Electricar reports second quarter 1996 financial results
  10. TESORO COUNTERS DISSIDENT GROUP'S LATEST CLAIMS IN LETTER TO STOCKHOLDERS



Hills Stores reports its year-end and
fourth quarter financial results

        
            CANTON, Mass. -- March 15, 1996 -- href="chap11.hills.html">Hills Stores
        Company
(NYSE:HDS) today released its fiscal 1995 fourth
quarter and
        year end results.
        


            Fiscal 1995 was a 53 week fiscal year for Hills with the fourth
        quarter containing 14 weeks versus 13 weeks the prior fiscal year.
        


            Total sales for the 14 week quarter ended Feb. 3, 1996 increased
        3.9% over the previous year to $699.8 million and, excluding the
        14th week, comparable sales decreased 4.7% to $625.8 million.  Gross
        profit decreased slightly to $188.9 million from $189.4 million and
        declined as a percentage of sales from 28.1% to 27.0%.  Selling and
        administrative expenses increased by $0.9 million to $114.9 million
        from $114.0 million in the fourth quarter of fiscal 1994 but
        declined as a percentage of sales to 16.4% from 16.9%.

        
            The Company recorded an adjustment of $9.4 million in the fourth
        quarter of 1995 increasing the estimated cost associated with the
        July change in control.  These costs relate primarily to various
        disbursements made to prior executives in July and the Company's
        position relative to the recovery of those amounts.  The Company
        believes that a portion of these disbursements may be recoverable
        and is pursuing its remedies.  The increase in interest expense for
        the quarter reflects additional borrowings associated with the
        Company's repurchase of shares in the first fiscal quarter and the
        payment of change in control costs.  Other income in the prior year
        fourth quarter earnings included $9.6 million of income related to a
        reversal of liabilities established in "fresh-start" accounting
        partially offset by $2.2 million of additional amortization of
        deferred financing costs and $2.2 million paid to holders of the
        Company's Senior Notes in connection with the Company's self-tender.

        
           For the quarter, the Company generated net earnings of $7.4
        million, or $0.66 per share on a fully-diluted basis, versus $33.5
        million, or $2.26 per share the prior year.  Fourth quarter earnings
        before interest, taxes, depreciation and amortization, as defined in
        Notes B and G to the 1995 Summary of Operations table that follows
        ("EBITDA"), were $76.7 million versus $75.6 million last year.
   

     
            Total sales for the 53 week year ended Feb. 3, 1996 increased
        1.5% over the previous year to $1,900.1 million and, excluding the
        53rd week, comparable sales decreased 3.9% to $1,777.0 million.
        Gross profit decreased to $515.7 million from $531.8 million and
        declined as a percentage of sales from 28.4% to 27.1%.  Selling and
        administrative expenses increased by $9.5 million to $399.9 million
        from $390.4 million but remained relatively flat as a percentage of
        sales at 21.0% versus 20.9% last year.  The prior year selling and
        administrative expenses include a $4.5 million pension gain.
        Excluding this item, the Company's selling and administrative
        expenses increased $5.1 million and declined as a percentage of
        sales to 21.0% from 21.1%.

        
            The current year's earnings reflect a charge of $45.5 million in
        costs related to the change in control.  The increase in interest
        expense for the year reflects additional borrowings associated with
        the Company's repurchase of $75.0 million of stock in the first
        fiscal quarter and the payment of the change in control costs.  For
        the year, the Company generated a net loss of $16.7 million, or
        $1.66 per share versus earnings of $40.4 million, or $2.73 per share
        the prior year.  For fiscal 1995, EBITDA was $119.3 million versus
        $138.1 million last year.
   

     
            Gregory K. Raven, the President and Chief Executive Officer,
        stated "Although we were disappointed with our sales in 1995, it was
        a difficult year for many discount retailers, and we believe our
        performance, relative to the industry as a whole, was above average.
        Significant competitive pricing pressures in hardlines and a mix
        shift due to softer sales than normal in the apparel business,
        resulted in a decline in gross margin rates for the year.  To offset
        that decrease, the Company continued to aggressively manage its
        expenses and was able to reduce its selling and administrative
        expenses (after excluding the one-time pension gain of $4.5 million
        in fiscal 1994) as a percentage of sales.

        
            "Hills also actively adjusted its inventory purchases throughout
        the year, resulting in inventory levels at year-end of $331.7
        million, which was below plan.  The inventory actions taken have
        resulted in no significant clearance markdown exposure in the
        Company's ending inventory.  There were no borrowings under the
        Company's credit facility at year-end and trade payables were $82.6
        million.
   

     
            "The 1995 results were generated during a year in which Hills
        experienced significant non-business related distractions.
        Excluding the cost of the change in control, Hills was profitable in
        1995.  We are entering 1996 with a strong balance sheet and the
        financial resources, both internal and external, to drive the
        business.  We are confident that, with the support of our associates
        and our vendors, Hills' strategies will enable the Company to
        improve our operating results."

        
            Hills Stores Company is a leading regional discount retailer
        operating 164 stores in 12 Mid-Western and Mid-Atlantic states.


        
        1995 Summary of Operations (unaudited)
        ($ in 000's, except per share amounts)
        
                             1995(a)    1994(e)   $ Change   % Change
        Fourth quarter
        Sales                  $699,785   $673,580     $26,205     3.9%
        EBITDA                   76,687(b)  75,598(g)    1,089     1.4%
        Operating earnings       54,242     66,052     (11,810)  -17.9%
        Net earnings              7,405     33,467     (26,062)  -77.9%
        Earnings per share        $0.66      $2.26      ($1.60)  -70.8%
        Shares outstanding       11,221     14,837      (3,616)  -24.4%
        
                             1995(c)    1994(f)
        Year
        Sales                 $1,900,104  $1,872,021   $28,083     1.5%
        EBITDA                   119,344(b)  138,133(g)(18,789)  -13.6%
        Operating earnings        31,168     105,755   (74,587)  -70.5%
        Net earnings (loss)      (16,666)     40,431   (57,097) -141.2%
        Earnings (loss) per share ($1.66)      $2.73    ($4.39) -160.8%
        Shares outstanding (D)    10,029      14,832    (4,803)  -32.4%
        
        (a) Operating earnings, net earnings and earnings per share include
        a $9.4 million pre-tax charge for costs, primarily additional taxes,
        
        associated with the July 5, 1995 change of control.
        
        (b) Represents FIFO earnings before interest, taxes, depreciation
        and amortization, and change in control costs.
        
        (c) Operating earnings, net loss and loss per share include a $45.5
        million pre-tax charge related to severance expenses paid to certain
        
        senior officers and employees of the Company, and legal and other
        expenses, associated with the July 5, 1995 change of control.
        
        (d) Fully diluted average shares outstanding for the year ended
        February 3, 1996 do not include 1,231,795 shares of preferred stock
        as their effect would be anti-dilutive.
        
        (e) Net earnings and earnings per share include $9.6 million of
        income related to a reversal of liabilities established in
        "fresh-start" accounting, $2.2 million of additional amortization of
        
        deferred financing costs and $2.2 million paid to holders of the
        Company's Senior Notes in connection with the Company's self-tender.
        
        (f) In addition to the items noted in (e) above, operating earnings,
        
        net earnings and earnings per share include a gain of $4.5 million
        from the elimination of the Company's pension benefit obligation.
        
        (g) Represents FIFO earnings before interest, taxes, depreciation
        and amortization; and also excludes a gain of $4.5 million from the
        elimination of the Company's pension benefit obligation recorded in
        the
        first quarter of 1994, $9.6 million of income related to a reversal
        of liabilities established in "fresh-start" accounting, $2.2 million
        
        of additional amortization of deferred financing costs and $2.2
        million paid to holders of the Company's Senior Notes in connection
        with the Company's self-tender.
        
        
                       HILLS STORES COMPANY AND SUBSIDIARIES
                       CONSOLIDATED STATEMENTS OF OPERATIONS
                     (in thousands, except per share amounts)
                                                                      
                            Quarter ended               Year ended
                       February 3,  January 28,  February 3,  January 28,
                          1996         1995         1996         1995
                      (14 weeks)    (13 weeks)   (53 weeks)   (52 weeks)
                      (unaudited)   (unaudited)
        
        Net sales           $699,785     $673,580    $1,900,104   $1,872,021
        Cost of sales        510,847      484,194     1,384,421    1,340,221
        
          Gross profit       188,938      189,386       515,683      531,800
        
        Selling and
         administrative
         expenses            114,860      114,024       399,934      390,397
        Depreciation
        
         and amortization      8,494        7,064        31,297       26,662
        Amortization of
        
         reorganization
         value in excess of
         amounts allocable
         to identifiable
         assets                1,939        2,246         7,755        8,986
        Costs related to
        
         change in control     9,403          --         45,529
        --       
        
          Operating earnings  54,242       66,052        31,168      105,755
        
        Other income
         (expense): Interest expense on
         capital leases      (3,453)       (3,622)      (14,066)
        (14,707)   
        
         Other interest
          expense            (9,364)       (6,457)      (35,431)
        (24,005)   
        
         Other income, net    2,682         7,171         4,850        9,241
        
                        (10,135)       (2,908)      (44,647)     (29,471)   
        
        Earnings (loss)
         before income
         taxes               44,107        63,144       (13,479)      76,284
        Income tax
        
         provision          (36,702)      (29,677)       (3,187)
        (35,853)    Net earnings (loss)   
        
         applicable to
         shareholders        $7,405       $33,467      ($16,666)     $40,431
        Primary earnings
        
         (loss) per common
          share               $0.66         $2.37        ($1.70)       $2.87
        
         Fully- diluted
          earnings (loss) per
          common share        $0.66         $2.26        ($1.66)       $2.73
        Primary shares      
        
         outstanding         11,221        14,111         9,810       14,105
        Fully-diluted shares
        
         outstanding         11,221        14,837        10,029       14,832
        EBITDA - FIFO
        
         (unaudited)        $76,687       $75,598      $119,344     $138,133
        

        
        CONTACT: Hills Stores Co. Canton,
                 William K. Friend
                 617/821-1000, Ext. 1189
                     or
                 The Bromley Group Inc., New York
                 Alan Bromley
                 212/807-0878
         REGARDING
TELULAR CORPORATION RESPONDS TO STOCKHOLDER
INQUIRIES...TRADING IN
STOCK; REPORTS INTENTION BY PRINCIPAL STOCKHOLDER TO PURCHASE SHARES
        


            BUFFALO GROVE, Ill., March 15, 1996 - Telular Corporation
        (Nasdaq: WRLS) announced today, in response to numerous inquiries by
        stockholders, that it is not, at this time, aware of any significant
        adverse change in the Company's business or prospects that has not
        been previously disclosed.  Telular's stock has experienced a
        significant decline, with the trading price ranging from $10.25 to
        $2.00 since the first of the year.  Telular believes that this
        decline is attributable, to a considerable extent, to extensive
        conversion and sale of shares pursuant to convertible debentures
        issued by Telular in a Regulation S offering last December.  Of the
        $18 million in debentures issued in December, approximately $6
        million representing roughly 2,000,000 shares have been converted as
        of March 13, 1996.

        
        Current Outlook


            Telular also announced that while final results are not
        available for the fiscal quarter ended March 31, 1996, the Company
        currently expects revenues for the quarter to be in the range of
        $4.0 to $6.0 million.  This compares to revenues during the
        comparable quarter of fiscal 1995 of $8.2 million.  With lower
        comparable revenues and higher costs, resulting primarily from
        restructuring charges, the Company anticipates the loss for the
        current quarter to be greater than the loss of seventeen cents per
        share reported for the same quarter in fiscal 1995.  The Company
        expects that its cash reserves, with no short- term borrowings, to
        be no less than $17.0 million at March 31, 1996. Earnings are
        dependent, in part, on the amount and timing of orders that cannot
        be predicted with assurance.  Telular will announce final results
        for the quarter when they become available.

        
        Columbia Capital Principals Announce Intention to Purchase Shares


            The Company also announced that it has been advised by Columbia
        Capital Corporation, one of the Company's major stockholders, that
        principals of Columbia Capital have begun to purchase stock in the
        market in accordance with capital rule 10b-18 under the Securities
        Exchange Act of 1934, in the belief that current market prices do
        not reflect the real value of the Company.  These principals expect
        the amount and timing of their purchases to depend, in considerable
        part, upon market conditions in effect from time to time.
        


        Recent Announcements


            The Company has previously announced a significant restructuring
        of its operations and expects to incur $7-9 million in charges,
        primarily of non-cash write-offs.  The restructuring is in process
        and completion is expected by June 30, 1996.  Telular announced on
        March 8, 1996 a purchase order of $25 million, under an existing
        sales agreement with Motorola.  During 1996, $19 million of its
        PhoneCell SXH fixed wireless terminals are scheduled for deployment
        in Hungary, with the balance slated for shipment in early calendar
        1997.
        


            Founded in 1986, Telular has developed telecommunications
        interface technology that switches a standard phone system, fax,
        computer modem or monitored alarm system to available wireless
        service for either primary or back-up communications.  The line of
        fixed wireless products developed and marketed by Telular includes
        the PhoneCell(TM) line of products, the modular PhoneCell CPX(TM),
        the PCSone(TM) intelligent docking station and the AXCELL cellular
        mobile data interface.
        


        CONTACT:  Timothy L. Walsh, Vice President and Treasurer, or Steve
        McConnell, Vice President, Financial Analysis & Operations
        Accounting, of Telular Corporation, 847-465-4500


TCBY reports improved operating results for first quarter
        


            LITTLE ROCK, Ark. -- March 15, 1996 -- TCBY
        Enterprises, Inc. (NYSE:TBY) announced its results improved from a
        net loss of $4,435,290, or $.17 per share, in the first quarter of
        fiscal 1995 to a net loss of $504,677, or $.02 per share, in the
        first quarter of fiscal 1996.
        


            First quarter 1995 results include a loss of $.06 per share due
        to the adoption of a new accounting standard.  The improvement in
        results reflects a reduction in selling, general and administrative
        costs primarily achieved through the Company's restructuring, the
        sale of Company-owned stores, and a focus on geographic regions
        where the Company's hardpack products can be delivered and marketed
        in a more efficient manner.  Sales and franchising revenues for the
        first quarter of 1996 were $17,277,653 compared to $27,952,759 in
        the first quarter of 1995.  The decline in sales and franchising
        revenues is primarily attributable to a decrease in sales to the
        retail grocery trade as a result of the sale of the Company's
        refrigerated yogurt line during the second quarter of fiscal 1995,
        and the execution of the Company's decision to franchise or close
        the 88 Company-owned stores in operation as of first quarter 1995.
        


            As of February 29, 1996, there were 2,693 "TCBY"(R) locations
        worldwide.  These locations are comprised of 1,208 traditional
        domestic stores, 1,267 non-traditional domestic locations, 192
        international locations, and 26 Company-owned stores.  The Company
        continues to franchise its Company-owned stores as announced in
        December 1995 and expects to complete this process in fiscal 1996.
        


            Also in December, 1995, the Company announced the authorization
        by its Board of Directors to purchase up to three million shares of
        its outstanding common stock and has purchased over 325,000 shares
        since that time.  Purchases have been made utilizing the Company's
        available cash resources.
        


            "We are encouraged by our first quarter results in light of the
        harsh winter experienced across the country," said Herren
        Hickingbotham, President and Chief Operating Officer.  "Many changes
        were announced in December, and we are seeing immediate improvements
        as a result of the implementation of these plans.  We are also
        excited about our development opportunities in 1996 through new
        international and non-traditional locations, as well as through
        continued conversions and expansion of the TCBY Treats program in
        our traditional stores."

        
            Subsequent to the close of the first quarter, the Company
        announced its international division had finalized a franchise
        agreement for Israel.  In addition, it was announced that a national
        development agreement had been reached with Citgo Petroleum
        Corporation to pursue co-branding opportunities in Citgo locations
        across the country.
   

     
            The Board of Directors of the Company declared a $.05 per share
        cash dividend payable on April 12, 1996 to stockholders of record as
        of March 29, 1996.
      

  
            TCBY Enterprises, Inc., through subsidiary companies,
        manufactures and sells soft serve frozen yogurt, hardpack frozen
        yogurt and ice cream, novelty products, and markets foodservice
        equipment.  The Company is the largest manufacturer-franchisor of
        frozen yogurt in the world.


        
                          TCBY Enterprises, Inc.
                       Selected Financial Highlights
                  (In Thousands, Except Per Share Amounts)
                               (Unaudited)
        
                                                 Three Months Ended
                                              February 29  February 28
                                                 1996         1995
        Operating results
        Sales & franchising revenues               $ 17,278     $ 27,953
        Net loss                                   $   (505)    $ (4,435)
        Net loss per share                         $   (.02)    $   (.17)
        Average shares outstanding                   25,564       25,596
        Dividends paid per share                   $    .05     $    .05
        
                                              February 29  November 30
                                                 1996         1995
        Financial position
        Current assets                             $ 47,697     $ 51,357
        Current liabilities                        $ 13,349     $ 14,668
        Property, plant & equipment, net           $ 45,023     $ 45,710
        Total assets                               $106,651     $111,625
        Long-term debt                             $ 12,112     $ 12,641
        Stockholders' equity                       $ 79,052     $ 82,179
        
                        Consolidated Balance Sheets
                                (Unaudited)
        
                                             February 29   November 30
                                                1996          1995
        Current assets:   
        Cash and cash equivalents               $    500,558  $  5,565,654
        Short-term investments                    11,275,252     8,824,163
        Receivables:             
        Trade accounts                             9,883,909    10,114,935
        Notes                                      2,907,644     2,918,762
        Allowance for doubtful accounts
         and impaired notes                       (1,589,587)   (1,592,607)
                                             ------------- -------------
                                              11,201,966    11,441,090
        
        Refundable income taxes                    4,697,990     4,418,936
        Deferred income taxes                      2,463,089     2,463,089
        Inventories                               12,444,173    12,920,468
        Prepaid expenses and other assets          2,266,520     2,098,366
        Assets held for sale                       2,847,756     3,625,375
        
        Total current assets                      47,697,304    51,357,141
        
        Property, plant, and equipment:
        Land                                       2,866,820     2,866,820
        Buildings                                 23,710,187    23,402,389
        Furniture, vehicles, and equipment        47,417,615    47,325,993
        Leasehold improvements                     3,319,745     3,214,117
        Construction in progress                     218,892        31,483
        Allowance for depreciation and
         amortization                            (32,510,728)  (31,130,608)
                                             ------------- -------------
                                              45,022,531    45,710,194
        Other assets:
        Notes receivable, less current portion
         (less allowance for doubtful notes
         of $9,484,673 in 1996 and $9,585,410
         in 1995)                                  7,001,935     7,035,259
        Intangibles (less amortization of
         $1,561,773 in 1996 and $1,514,068
         in 1995)                                  3,579,581     3,517,942
        Other                                      3,349,377     4,004,707
                                             ------------- -------------
                                              13,930,893    14,557,908
        
        Total assets                            $106,650,728  $111,625,243
        
        Liabilities and stockholders' equity
        Current liabilities:
        Accounts payable                        $  3,115,777  $  2,455,127
        Accrued expenses                           7,061,569     9,041,380
        Current portion of long-term
         debt                                      3,171,448     3,171,448
        
        Total current liabilities                 13,348,794    14,667,955
        
        Long-term debt, less current
         portion                                  12,112,330    12,640,904
        
        Deferred income taxes                      2,137,617     2,137,617
        
        Commitments and contingencies
        
        Stockholders' Equity:
        Preferred stock, par value $.10
         per share; authorized 2,000,000
         shares                                            -             -
        Common stock, par value $.10
         per share; authorized 50,000,000
         shares; issued - 1996 - 27,062,345;
         1995 - 27,062,345                         2,706,235     2,706,235
        Additional paid-in capital                25,547,184    25,547,184
        Retained earnings                         61,874,839    63,661,235
                                            ------------- -------------
                                              90,128,258    91,914,654
                                             
        Less treasury stock, at cost
         (1,705,869 shares in 1996 and
         1,387,069 in 1995)                      (11,076,271)   (9,735,887)
        
        Total stockholders' equity                79,051,987    82,178,767
        
        Total liabilities and stockholders'
         equity                                 $106,650,728  $111,625,243
        
                 Consolidated Statements of Operations (Unaudited)
                 
        
                                                 Three Months Ended
                                                    February 29
                                                 1996         1995
        Sales                                   $ 15,052,899  $ 26,036,075
        Cost of sales                              9,451,986    15,826,334
        
        Gross profit                               5,600,913    10,209,741  
        
        Franchising revenues:
        Initial franchise and
         license fees                                532,750       195,900
        Royalty income                             1,692,004     1,720,784
        Total franchising revenues                 2,224,754     1,916,684
                                            -------------  -------------
                                               7,825,667    12,126,425
        Selling, general and
         administrative expenses                   8,659,113    16,465,479
        Loan impairment charge                             -     2,466,922
                                            -------------  -------------
                                               8,659,113    18,932,401
        
        (Loss) income from operations               (833,446)   (6,805,976)
        
        Other income (expense):
        Interest expense                            (262,754)     (298,451)
        Interest income                              275,778       274,440
        Other income (expense)                        43,996        25,444
                                            -------------  -------------
                                                  57,020         1,433
        
        (Loss) income before income taxes           (776,426)   (6,804,543)
        
        Income tax expense (benefit)                (271,749)   (2,369,253)
        
        Net (loss) income                        $  (504,677) $ (4,435,290)
        
        Net (loss) income per share              $     (0.02) $      (0.17)
        
        Average shares outstanding                25,563,836    25,595,638
        
        Cash dividends paid per share            $      0.05  $       0.05
        
        CONTACT:  TCBY Enterprises, Inc., Little Rock
                  Stacy Duckett, 501/688-8229

        
KERR ANNOUNCES ASSET SALE, DEBT REDUCTION, RESTRUCTURING
PROGRAM, A NEW CHIEF EXECUTIVE OFFICER, AND 1995 RESULTS
        


            LOS ANGELES, March 15, 1996 - Kerr Group, Inc. (NYSE:
        KGM), announced today the sale of certain assets of the Consumer
        Products Business, a reduction of debt and extension of waivers by
        lenders, a restructuring program, a new Chief Executive Officer, and
        1995 financial results.
        


        SALE OF ASSETS


            Roger W. Norian, Chairman, President and Chief Executive
        Officer, said that the Company had sold certain assets of the
        Consumer Products Business to Alltrista Corporation for a purchase
        price of $14.5 million. He said that the Company also expects to
        receive approximately $16.5 million, primarily during the remainder
        of 1996, from the Company's sale to its customers of the inventory
        and from the collection of the accounts receivable of the Consumer
        Products Business.  These proceeds will be utilized for working
        capital, to reduce debt, including $3.5 million of debt secured by
        liens on certain fixed assets of the Company, and to fund costs of
        the restructuring program.
   

     
        DEBT REDUCTION


            Mr. Norian said that the debt holders had agreed to extend,
        until May 15, 1996, waivers with respect to defaults under certain
        financial covenants in loan agreements with the Company and to
        extend the maturity of a $6.0 million note due April 15, 1996, until
        May 15, 1996.  He also stated that discussions with the Company's
        lenders were continuing regarding further amendments of terms,
        including the further extension of the maturity of the $6.0 million
        note, and additional reduction of indebtedness.  He said that the
        indebtedness of the Company is unsecured.

        
        RESTRUCTURING PROGRAM


            Mr. Norian said that he had recommended to the Board of
        Directors a restructuring of the Company which would include moving
        the corporate headquarters from Los Angeles, California to
        Lancaster, Pennsylvania, where the Plastic Products Business is
        headquartered, and the consolidation of certain manufacturing
        facilities.  He said this restructuring would result in annualized
        cost savings of approximately $6.5 million.  These savings will be
        substantially realized in 1997.
   

     
            Mr. Norian said that he had told the Board of Directors that,
        after more than 20 years with the Company in its Los Angeles office,
        first as Chief Financial Officer and then as Chief Executive
        Officer, he had decided not to move to Lancaster.  He said that he
        had recommended that D. Gordon Strickland, Senior Vice President,
        Chief Financial Officer and General Manager of the Consumer Products
        Business, be elected as President, Chief Executive Officer, and a
        Director of the Company.  Mr. Norian said that the Board had
        approved the restructuring program, accepted his decision not to
        move to Lancaster, and approved his recommendation with respect to
        Mr. Strickland.  Mr. Norian said that effective today, he had been
        succeeded by Mr. Strickland.  Mr. Norian said that he would continue
        as a Director but had resigned as Chairman.
      

  
            In connection with the sale of Consumer Products Business assets
        and the restructuring program, the Company will report in the first
        quarter of 1996 a one time pretax charge of approximately $4.8
        million, which is comprised of a $2.9 million gain on the sale of
        the Consumer Products assets and a restructuring charge of $7.7
        million.  In addition to this charge, the Company will incur
        additional non-recurring pretax charges of $2.4 million during 1996
        and early 1997 for restructuring related costs that accounting rules
        do not permit to be accrued at the time of announcement of a
        restructuring.

        
        1995 FINANCIAL RESULTS


             Kerr reported a loss applicable to common stockholders of
        $6,136,000 or $1.60 per common share for the year ended December 31,
        1995, compared to earnings applicable to common stockholders for the
        year ended December 31, 1994 of $2,575,000 or 70 cents per common
        share.  The loss in 1995 includes an unusual loss of $602,000 after
        tax, or $0.16 cents per common share, related to the write-down in
        the book value of land formerly used by the Company as a glass
        container manufacturing plant.

        
            The decline in earnings in 1995, as compared to 1994, was due
        primarily to lower earnings in both the Plastic Products and
        Consumer Products Businesses, and higher interest expense.  Earnings
        of the Plastic Products Business decreased in 1995 compared to 1994,
        primarily due to cost-price pressures, including substantially
        higher resin costs and competitive pricing.
   

     
            The current price the Company is paying for resin has declined
        significantly since July 1995.
      

  
            Earnings of the Consumer Products Business decreased in 1995
        compared to 1994, primarily due to the sale of higher cost inventory
        produced during 1994, higher customer rebates, and lower sales
        volume due to adverse weather conditions.
        


            Net sales amounted to $138,995,000 in 1995 compared to
        $139,156,000 in 1994.
        


            Net sales of the Plastic Products Business increased to
        $109,187,000 in 1995 compared to $106,792,000 in 1994.  Segment
        operating earnings of the Plastic Products Business decreased to
        $4,842,000 in 1995, compared to $12,055,000 in 1994.
        


            Net sales of the Consumer Products Business decreased to
        $29,808,000 in 1995 from $32,364,000 in 1994.  Segment operating
        earnings of the Consumer Products Business decreased to a loss of
        $1,590,000 in 1995, compared to earnings of $3,213,000 in 1994.

        
            For the three months ended December 31, 1995, the Company had a
        loss applicable to common stockholders of $3,744,000 or 95 cents per
        common share, compared to earnings applicable to common stockholders
        of $24,000 or 1 cent per common share in the three months ended
        December 31, 1994. The decline in earnings in 1995 was primarily due
        to lower earnings in both the Plastic Products and Consumer Products
        Businesses. Earnings of the Plastic Products Business declined
        primarily due to cost-price pressures and lower production volume.
        Earnings of the Consumer Products Business decreased primarily due
        to the sale of higher cost inventory produced in 1994, higher
        customer rebates, and lower sales volume.  The loss in the fourth
        quarter of 1995 includes an unusual loss of $602,000 or $0.15 cents
        per common share related to the write-down in the book value of
        land.
   

     
            Net sales were $27,692,000 in the fourth quarter of 1995 as
        compared to $28,148,000 in the same period in 1994.

        
        Kerr is a major producer of plastic packaging products.


       
                                KERR GROUP, INC.
               Consolidated Statements of Earnings (Loss) for the
        Three Months and Twelve Months Ended December 31, 1995 and 1994
                                 (In Thousands)
        
                                  Three Months Ended    Twelve Months Ended
                                      December 31,           December 31,
                                  1995          1994     1995         1994
                                      (Unaudited)             (Audited)
        
        Net sales                $27,692       $28,148  $138,995    $139,156
        Cost of sales             24,101        19,607   108,964      96,356
         Gross profit              3,591         8,541    30,031      42,800
        Selling, warehouse,
         general and
         administrative expense    6,931         7,098    32,037      32,435
        Loss on revaluation
         of land (1)               1,000             0     1,000          0
        Interest expense           1,587         1,258     6,047      4,985
        Interest and other income    (90)          (72)     (228)      (369)
        Earnings (loss)
         before income taxes      (5,837)          257    (8,825)     5,749
        Provision (benefit)
         for income taxes         (2,301)           25    (3,518)     2,345
         Net earnings (loss)     $(3,536)         $232   $(5,307)    $3,404
        Preferred stock dividends    208           208       829        829
        Net earnings (loss)
         applicable to
         common stockholders     $(3,744)          $24     $(6,136)  $2,575
        Net earnings (loss)
         per common share,
         primary and
         fully diluted:(2)        $(0.95)        $0.01      $(1.60)   $0.70

        
            (1)  During the fourth quarter of 1995, the Company incurred a
        pretax loss of $1,000,000 (after-tax loss of $602,000 or 15 cents
        per common share) related to the write-down in the book value of
        land held for sale formerly used by the Company as a glass container
        manufacturing plant.
      

  
            (2)  Weighted average number of common shares outstanding for
        the three months and twelve months ended December 31, 1995 were
        3,933,000 and 3,842,000, respectively, and for the three months and
        twelve months ended December 31, 1994 were 3,677,000 and 3,674,000,
        respectively. Fully diluted net earnings per common share reflect
        when dilutive, a) the incremental common shares issuable upon the
        assumed exercise of outstanding stock options, and b) the assumed
        conversion of the Preferred Stock and the elimination of the related
        Preferred Stock dividends.  Antidilution occurred in the three
        months and twelve months ended December 31, 1995 and 1994.


        CONTACT:  D. Gordon Strickland, President and Chief Executive
        Officer of Kerr Group, 310-284-2585



COURT AUTHORIZES SPECTRUM INFORMATION
TECHNOLOGIES TO SEEK CREDITOR AND SHAREHOLDER APPROVAL OF PLAN OF REORGANIZATION
        


            PURCHASE, N.Y. March 15, 1996 - href="chap11.spectrum.html">Spectrum Information
        Technologies, Inc.
(Nasdaq-NNM: SPCL) today announced that the
        Honorable Conrad B. Duberstein of the U.S. Bankruptcy Court of the
        Eastern District of New York has authorized the Company to go
        forward with its plan to seek creditor and shareholder approval of
        its proposed plan of reorganization.
        


            In a hearing yesterday, the court ruled that the Amended
        Disclosure Statement describing the Amended Proposed Plan of
        Reorganization filed by Spectrum for itself and its Spectrum
        Cellular subsidiary was adequate for distribution.  Accordingly,
        Spectrum will mail the proposed plan, together with a disclosure
        statement, to all of the company's creditors and shareholders on or
        before March 22, 1996.  The court has set a deadline of April 22,
        1996 to receive any objections to the proposed plan.  A hearing to
        confirm the proposed plan has been scheduled for 9:30 a.m. on May 3,
        1996.

        
            Spectrum filed a voluntary Chapter 11 petition in the Bankruptcy
        Court in January 1995 and has since been reorganizing its business.
        The proposed plan of reorganization and disclosure statement
        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 mobile 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 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.


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



Boston Restaurant Associates, Inc. announces third quarter results
        


            BOSTON, MA -- March 15, 1996 -- BOSTON RESTAURANT
        ASSOCIATES, INC. (NASDAQ: BRAI, BRAIW) (BSE: BNR, BNRW) today
        announced the Company's third quarter results.  

        
            In the third quarter, BOSTON RESTAURANT ASSOCIATES, INC.
        reported a $1,401,738 loss of which $821,598 is associated with the
        closure of its Framingham location.  This loss represents
        depreciation, amortization and goodwill attributable to Capucino's
        Framingham.  In addition, overhead reflects legal fees associated
        with various real estate transactions, including the closure of
        restaurants in Cambridge, Brookline, and Wellesley locations.  The
        write down was the result of restructuring BOSTON RESTAURANT
        ASSOCIATES, INC. which will concentrate on building Pizzeria
        Regina's and refining the Polcari's North End concept.  

        
            George R. Chapdelaine, Chief Executive Officer of BOSTON
        RESTAURANT ASSOCIATES, INC., said, "We have spent fiscal year 1996
        restructuring BOSTON RESTAURANT ASSOCIATES, INC. for the future.  In
        an effort to maximize our resources and management we have
        positioned BOSTON RESTAURANT ASSOCIATES, INC. to fuel growth through
        the Pizzeria Regina concept.  In February, we opened a Pizzeria
        Regina in Brookline featuring brick oven pizza and a large selection
        of microbrews.  Sales to date have exceeded our forecast.  In
        addition, Polcari's North End Restaurant has seen positive results
        from refinement in the concept and the additions of JP's Jukebox
        Lounge.  I believe with the completion of restructuring in 1996, we
        can look forward to a strong future."


        
             BOSTON RESTAURANT ASSOCIATES, INC. AND SUBSIDIARIES
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (UNAUDITED)
                                   
                      Thirteen Weeks Ended   Thirty-Nine Weeks Ended
                    January 28   January 29   January 28   January 29
                       1996         1995         1996         1995
         
        Sales           $2,325,664  $2,970,371    $8,407,824  $9,928,315
               
        Cost Of Food
        
         And Beverage     $557,635    $741,567    $2,019,968  $2,474,645
               
        Payroll           $856,854  $1,075,063    $2,919,929  $3,489,464
               
        Other Operating
        
         Expenses         $958,601  $1,075,549    $2,932,171  $3,165,773
                                                                        
        General and
          Administrative  $531,349    $405,851    $1,371,415  $1,255,048
                                                                        
        Loss From Store
          Closure         $821,598          $0      $821,598          $0
                    ----------  ----------    ---------- -----------
        Loss From
          Operations   ($1,400,373)  ($327,659)  ($1,657,257)  ($456,615)
                                                                                      
        Other(income)      ($3,355          $0      ($53,698)         $0
           
        Interest(income)   ($2,144)   ($37,864)      ($5,305)   ($50,275)
              
        Interest Expense    $6,864      $8,278       $17,098    $212,501
                    ----------  ----------   -----------  ----------
         Net Loss      ($1,401,738)  ($298,073)  ($1,615,352)  ($618,841)
                            
         Loss Per Share     ($0.28)     ($0.06)       ($0.32)     ($0.17)
                              
        


        BOSTON RESTAURANT ASSOCIATES, INC. owns and operates a chain of
        eight pizzerias under the name Pizzeria Regina and two Italian
        restaurants named Bel Canto and Polcari's North End.  The
        restaurants are located in the Boston area.  


                                   
        CONTACT:  Boston Restaurant Associates Inc.
                  Fran V. Ross, (617) 720-5684
                  George R. Chapdelaine, (617) 720-5684
                                    or
                  L.G. Zangani Inc.
                  Leonardo G. Zangani, (908) 788-9660
     



ATARI CORPORATION ANNOUNCES RESULTS FOR THE YEAR AND FOURTH
QUARTER 1995

        
            SUNNYVALE, Calif., March 15, 1996 - Atari Corporation
        (AMEX: ATC) reported today its results for the year and fourth
        quarter ended December 31, 1995.
        


            For the year ended 1995, NET SALES were $14.6 million compared
        to $38.7 million for the year ended 1994.  The sales decrease was
        due to the poor sales of Jaguar, the Company's 64-bit multi-media
        interactive entertainment system, and related software.  The Company
        reported a NET LOSS for 1995 of $49.6 million compared to NET INCOME
        for 1994 of $9.4 million.  The loss for 1995 is principally
        attributable to substantial writedowns of inventory and software
        development costs as well as substantially lower sales for the
        Jaguar and related software.

        
            For the fourth quarter ended December 31, 1995, NET SALES were
        $2.8 million compared to $14.9 million for the fourth quarter of
        1994. The Company reported a NET LOSS for the fourth quarter of 1995
        of $27.7 million compared to NET INCOME of $17.6 million in the
        fourth quarter of 1994.  The income in the fourth quarter of 1994
        was primarily from licensing technology to Sega Enterprises.  The
        loss for the 1995 quarter is attributable to substantial writedowns
        of inventory and software development costs as well as substantially
        lower sales for the Jaguar and related software.
   

     
        PRELIMINARY FIRST QUARTER NEWS



            In the first quarter of 1996, the Company sold the remaining
        balance of its holdings in a publicly traded security, and realized
        a gain of $6.1 million.  Sales of Jaguar in the first quarter of
        1996 continue to be poor.  The Company, in late 1995, reduced the
        price of the Jaguar to $99.95 and is presently test marketing
        different price points and software bundles for the Jaguar in an
        attempt to sell its inventory of such products.  The Company has
        also substantially reduced its workforce and curtailed its sales and
        marketing and research and development activities.

        
        ATARI CORPORATION AND JTS CORPORATION TO MERGE



            On February 13, 1996, Atari Corporation and JTS Corporation
        announced plans to merge the two companies.  JTS is a manufacturer
        of personal computer hard disk drives.  "This merger puts us in a
        great position to capitalize an a very experienced management team
        and a rapidly growing disk drive market.  JTS is using innovative
        technology, particularly in the 3" disk drive market, and we are
        excited about its prospects," said Jack Tramiel, Chairman of Atari.
        Under the terms of the agreement, the new corporation will operate
        under the name of JTS Corporation and the officers of JTS will
        become the officers of the merged company.  The Atari entertainment
        business and the JTS disk drive business will operate as separate
        divisions of the new merged company.

        
            In connection with the merger Atari has extended a bridge loan
        to JTS in the amount of $25 million.  In the event that the merger
        is not consummated, the bridge loan may be convertible into shares
        of JTS Series A Preferred Stock at the option of Atari or JTS and
        subject to certain conditions.
   

     
            As a result of the transaction, Atari stockholders will hold
        approximately 60% of the outstanding shares of the new company
        following the merger.  The transaction is structured to qualify as a
        tax-free reorganization and will be accounted for as a purchase.
      

  
            The boards of directors of Atari and JTS have approved the
        definitive merger agreement.  The merger is subject to certain
        shareholder and regulatory approvals and other conditions to
        closing. It is anticipated that the transaction will close toward
        the end of the second calendar quarter of 1996.

        
            Atari Corporation markets Jaguar, the only American made,
        advanced 64-bit entertainment system, and licenses and markets
        software in the multi-platform, multimedia market.  Atari is located
        in Sunnyvale, California.
   

     
            The above statements regarding the disk drive industry and JTS'
        prospects are forward looking statements and involve a number of
        risks and uncertainties.  Among the factors that would cause actual
        results to differ materially are the following: business conditions
        and growth in the portable computer industry and in the general
        economy; competitive factors, including pricing pressures;
        availability of components from third parties; risks associated with
        manufacturing of products in India or other overseas jurisdictions
        and risks associated with JTS' ability to ramp its manufacturing
        operations, including cost and yield issues.


        
                                ATARI CORPORATION
                 Condensed Consolidated Statements of Operations
                        (in thousands, except per share)
        
                                     Quarter Ended     Twelve Months Ended
                                   Dec. 31,   Dec. 31,  Dec. 31,  Dec. 31,
                                     1995      1994       1995      1994
        
        Net Sales                  $  2,801  $ 14,921   $ 14,626  $ 38,748
        Operating Income (loss)    $(29,816) $(12,595)  $(53,665) $(24,047)
        Exchange Gain (loss)             15        (5)        13     1,184
        Other Income (Expense) Net    1,543        77      2,670       484
        Settlement of Patent
         Litigation                      --    29,812         --    32,062
        Interest Income Net Of
         Interest (Expense)              28       316        824      (289)
        Income (Loss) Before
         Extraordinary Credit      $(28,230) $ 17,605   $(50,158) $  9,394
        Extraordinary Credit - gain
         on extinguishment of
         convertible subordinated
         debentures                $    535  $     --   $    582  $     --
        Net Income (loss)          $(27,695) $ 17,605   $(49,576) $  9,394
        Earnings Per Common and
         Equivalent Share:
        Income (loss) before
         extraordinary credit      $  (0.44) $   0.30   $  (0.79) $   0.16
        Net Income (loss)          $  (0.43) $   0.30   $  (0.78) $   0.16
        Weighted Average number of
         shares used in computation  63,686    59,460     63,697    58,962


        CONTACT:  Jack Tramiel of Atari Corporation, 408-328-0900


McLOUTH STEEL PRODUCTS COMMENCES
ORDERLY SHUTDOWN EFFECTIVE MARCH 16
        


            TRENTON, Mich., March 15, 1996 - href="chap11.mclouth.html">McLouth Steel Products
        Corporation
announced today that effective March 16, 1996, it
would
        commence an orderly shutdown of its operations to a hot-idle stage.
        The Company, which has been operating under Chapter 11 of the U. S.
        Bankruptcy Code since September 29, 1995, said it had exhausted
        funds available for a continued operation.
        


            The Company also announced that it plans to fulfill all existing
        customer orders for which steel has been produced and plans to ship
        those orders in the coming weeks.  The Company is currently in the
        process of informing customers and other constituencies as to the
        current developments.

        
            Over the past months, McLouth Steel has been in discussions with
        potential investors regarding an acquisition and modernization of
        the Company's operating facilities.  The Company said that these
        investors are in the midst of their due diligence investigations and
        will continue these efforts over the next weeks.
   

     
            McLouth Steel, based in Trenton, Michigan, is an integrated
        steel manufacturer with operations in Trenton and Gibraltar,
        Michigan.  The Company has annual steelmaking capacity of
        approximately 1 million tons.
      


        CONTACT:  McLouth Corporate Offices, 313-246-4002



U.S. Electricar reports second quarter 1996 financial
results and preliminary creditor restructuring results
        


            SAN FRANCISCO, CA -- March 15, 1996 -- U.S. Electricar
        Inc. (Symbol:ECAR) today announced its financial results for the
        second quarter of fiscal year 1996 which ended Jan. 31, 1996.
        


            For the quarter ended Jan. 31, 1996, U.S. Electricar reported
        net sales of $917,000 and a net loss of $2,456,000 or $0.04 per
        share, compared with fiscal year 1995 second quarter net sales of
        $3,715,000 and a net loss of $16,495,000 or $0.90 per share.
        


            The company indicated that the decline in both sales and net
        loss could be attributed to the lack of available funding for
        marketing and production and corporate downsizing which has occurred
        since the company announced a restructuring of its operations, in
        March 1995.

        
            The company also announced that to date, creditors representing
        approximately 75 percent of the outstanding unsecured trade debt,
        have submitted aceptances to the debt restructuring plan.  The
        company is currently processing these acceptances.
   

     
            The company is also negotiating with its major lenders to extend
        the maturity dates of the approximately $20.0 million in convertible
        debt and accrued interest, much of which is secured by the assets of
        U.S. Elctricar.  A significant portion of this debt was previously
        restructured and matures in March and April 1996.
      

  
            U.S. Electricar develops and manufactures electric vehicles for
        markets in the United States and internationally, with products
        ranging from converted sedans and light trucks to transit buses and
        indutrial/commercial vehicles.


        
        U.S. Electricar Inc. & Subsidiaries
        Consolidated Statements of Operations
        (Unaudited)
        (In thousands, except for per share and share data)
        
                           Three Months Ended      Six Months Ended
                               Jan. 31,                 Jan. 31,
                            1995        1996       1995         1996
                      
        Net Sales               $3,715     $  917    $  9,897     $ 3,011
        Cost of Sales            7,725      1,168      15,089       3,489
        Gross Margin            (4,010)      (251)     (5,192)       (478)
        
        Other costs and expenses
         Research & Development  2,512        380       4,977         716
         Selling, general &
          administrative         5,087      1,446       8,794       2,683
         Interest and financing
          fees                   2,608        486       3,709         913
         Provision for facility
          closures, consolidation
          of operations &
          contract terminations  2,278         --      2,778           --
          
          Total other costs and
           expenses             12,485      2,312      20,258       4,312
        
        Loss before gain on
         debt restructuring    (16,495)    (2,563)    (25,450)     (4,790)
        Gain on debt
         restructuring               --       107           --        390
        Net Loss              $(16,495)   $(2,456)   $(25,450)    $(4,400)
        
        Per common share:
         Loss before gain on
          debt restructuring  $  (0.90)   $(0.044)   $  (1.48)    $(0.084)
         Gain on debt
          restructuring              --     0.002           --      0.007
          Net loss per
           common share       $  (0.90)   $(0.042)   $  (1.48)    $(0.077)
        
        Weighted average
        shares outstanding  18,361,287 58,220,984  17,237,013  56,873,171
        
        
        CONTACT: U.S. Electricar,
                 Roy Y. Kusumoto, 415/656-2400  (President)
        

TESORO COUNTERS DISSIDENT GROUP'S LATEST CLAIMS IN LETTER TO STOCKHOLDERS
        


            SAN ANTONIO, Texas, March 15, 1996 - Tesoro Petroleum
        Corporation (NYSE: TSO) today said its Board of Directors is sending
        a letter to all Tesoro shareholders, urging careful consideration of
        the facts before acting upon materials recently mailed to them by a
        dissident group led by Kevin Flannery. The board reiterated its
        recommendation that shareholders support Tesoro's current leadership
        and strategy, and to either not give consents or revoke any consents
        given to the Flannery group.
        


            In the letter, Tesoro President and Chief Executive Officer
        Bruce A. Smith tells stockholders: "Don't let the Flannery Group
        mislead you into giving them control of your investment.  Don't give
        them the keys to the company so they can generate wealth for
        themselves!"

        
        The full text of Tesoro's letter follows.


            Tesoro Petroleum Corporation is a natural resource company
        engaged in natural gas exploration and production, petroleum
        refining and marketing, and marine services.
   

     
        March 15, 1996
      

  
        Dear Fellow Shareholder:
        


            The Stockholders' Committee for New Management of Tesoro
        Petroleum Corporation (the "Flannery Group") JUST DOESN'T
        UNDERSTAND!  Recently, they wrote to you raising several issues to
        which we want to respond.
        


        WHAT HAS HAPPENED TO THE VALUE OF OUR STOCK?
        


            While shareholder value is ultimately measured by the increase
        in the price of Tesoro's stock, most investors understand that the
        drivers of value are future earnings  and cash flow.  Since your
        board put this management team in place in 1992, earnings and cash
        flow have increased each year to record levels in 1995.  So why
        hasn't the stock price increased?  It has, almost tripling since
        1992.  But what the Flannery Group fails to tell you, or understand,
        is the negative impact that the 1995 Tennessee Gas decision by the
        Texas Supreme Court had on our stock price.  We believe much of the
        30% decline they talk about can be linked to this adverse decision's
        expected effect on future earnings.  They want to avoid the issue
        because, in management's view, this litigation might have been
        settled were it not for Flannery's interference which led Tennessee
        Gas to suspend negotiations with the company and close a window of
        opportunity to settle the matter.  If they don't understand the
        fundamental effect of this issue on the stock (and debt), do you
        want them working for you to create shareholder value?

        
        THE REFINING AND MARKETING BUSINESS
   

     
            The Flannery Group criticizes expenditures for Tesoro's refining
        and marketing business.  In earlier communications, the group
        criticized the high-return, quick-payback vacuum unit, which has had
        a positive impact that resulted in a contribution of approximately
        $14 million in 1995. Excluding capital expenditures related to the
        vacuum unit, Tesoro has generated positive operating cash flow in
        excess of expenditures during the last three years.  They also
        criticize the $90 million of debt attributed to the refinery.  This
        is another half-truth since two-thirds of that amount represents the
        settlement of a claim by the State of Alaska against the company for
        approximately $100 million which threatened to bankrupt the company
        and would have left shareholders with little or no value!

        
        THE BOB WEST FIELD


            The Flannery Group provides more half-truths concerning the
        company's sale of a part of its Bob West Field interests.  First
        they criticized the sale.  Then they applauded the sale.  Now, they
        criticize the sale again because the buyer announced it had
        successfully drilled two new wells. The Flannery Group doesn't
        understand economics.  A successful well doesn't mean an adequate
        return on investment will be received by shareholders.  In fact, the
        sale looks even better today because the sold properties are
        producing below what we predicted and new wells are not even being
        drilled as quickly as we predicted.  Aggregate production from the
        sold properties is almost 25% below levels at the time we sold.   Do
        you really want the lack of understanding demonstrated by the
        Flannery Group to be applied to your investment in Tesoro?
   

     
        A NEW BOARD OF DIRECTORS


            The Flannery Group criticizes the director retirement plan,
        which many public corporations the size of Tesoro have.  But he says
        it will potentially prompt "what will amount to a boardroom exodus."
        Yet, he wants your consent to throw out the entire current board!
        What does he really want?  Under the governance guidelines adopted
        by your board, by the 1996 annual meeting, Tesoro's Board of
        Directors is expected to be comprised of two directors elected in
        1996, one director named in 1995, three directors named in 1992, and
        one director named in 1983.  This is a new board!


        
        THE FLANNERY GROUP HAS NO CREDIBLE PLAN FOR TESORO PETROLEUM
        -- JUST TALK



        Their only recommendation for increasing shareholder value is:

        
        "The Alaskan Refining Business Should be Divested."
        Original Mailing to Shareholders by Flannery Group
   

     
            Now, after reading the company's materials, the Flannery Group
        has changed its mind calling for
      

  
        "Disposition of the Refining Business at the appropriate time...."
        Latest Mailing to Shareholders by Flannery Group
        


            The Flannery Group has finally agreed with us that a refinery
        sale under current industry conditions destroys shareholder value.
        Tesoro's management and industry experts have said that selling a
        refinery now is a bad idea.  Our refining and marketing business can
        add value and we have a strategy which focuses on higher margin
        products and expanding our marketing efforts while minimizing future
        capital investment.  Good management finds ways to improve cash flow
        and earnings - that increases shareholder value!
        


        THE FLANNERY GROUP ADMITS ITS "PLAN" MAY PRODUCE NO RESULTS FOR
        SHAREHOLDERS



            They have stated in their mailing that "the trading price of the
        Common Stock is, of course, influenced by many factors and,
        therefore, it is impossible to say with certainty that its price
        will increase or to predict the amount of any such increase that
        might occur."

        
            It's obvious from 1995 results that management is having an
        impact on what is in its control, but the same external forces that
        have impacted the stock price under Tesoro's current management
        would undoubtedly have a similar influence for the Flannery Group.
   

     
        SEND THE GREEN CARD NOW



            Don't let the Flannery Group mislead you into giving them
        control of your investment.  Don't give them the keys to the company
        so they can generate wealth for themselves!

        
            THE BOARD URGES YOU NOT TO SUPPORT THE FLANNERY GROUP IN ITS
        ATTEMPT TO REMOVE AND REPLACE YOUR BOARD OF DIRECTORS AND URGES YOU
        TO REVOKE ANY WHITE CONSENT CARD THAT MAY HAVE BEEN GIVEN.
   

     
            If you have previously returned a white consent card, you have
        every right to change your mind and revoke your consent by signing,
        dating and returning the accompanying GREEN revocation of consent
        card, using the enclosed postage-paid envelope.  Even if you have
        not previously signed or returned a white consent card to the
        Flannery Group, you may sign and return a GREEN revocation of
        consent card to Tesoro, which will have no legal effect but would
        assist us in monitoring the progress of the Flannery Group's consent
        solicitation.

        
        Thank you for your support,
        /s/ Bruce A. Smith
   

     
        Bruce A. Smith
        President and Chief
        Executive Officer


        CONTACT: Greg Wright of Tesoro Petroleum Corporation, 210-283-2440