Bankruptcy News For - March 29, 1996

  1. Genta Announces Fourth Quarter and Year End 1995 Results
  3. Leslie Fay reports operating profit in fiscal 1995
  4. Sequoia Systems announces weakness in third quarter revenue

Genta Announces Fourth Quarter and Year End 1995 Results

            SAN DIEGO, CA -- March 29, 1996 -- Genta Incorporated
        (NASDAQ:GNTA) announced today its operating results for the fourth
        quarter and year ended December 31, 1995.  The company reported a
        net loss of $25.4 million (before preferred stock dividends of $2.6
        million) or $1.43 per common share for the year ended December 31,
        1995 including $4.8 million in charges (primarily non-cash) incurred
        in the first and second quarters of 1995 associated with the
        expansion of Genta Jago, the company's drug delivery joint venture
        with Jagotec AG.  The net loss for 1995 also included approximately
        $1 million in non-recurring costs and expenses primarily
        attributable to the company's rest ructuring efforts and related
        workforce reductions.  The net loss for 1995 compares to a net loss
        of $23.4 million (before preferred stock dividends of $2.6 million)
        or $1.90 per common share for the year ended December 31, 1994,
        which amount included $1.85 million in charges related to the
        expansion of Genta Jago.  For the fourth quarter ended December 31,
        1995, the company's net loss totaled $5.1 million (before preferred
        stock dividends of $638,000) or 25 cents per common share compared
        to a net loss of $7.2 million (before preferred stock dividends of
        $638,000) or 56 cents per share for the fourth quarter of 1994.  The
        net loss for the fourth quarter of 1995 included approximately
        $400,000 of the aforementioned non-recurring costs and expenses
        while the net loss for the fourth quarter of 1994 was impacted by
        $850,000 in charges associated with the expansion of Genta Jago.  

            Charges associated with the expansion of Genta Jago relate to
        rights acquired during 1995 which may allow Genta Jago to develop
        and commercialize an additional 35 controlled-release products.
        With these expanded product rights, Genta Jago now maintains the
        rights to develop controlled-release formulations of approximately
        60 products using Jagotec's GEOMATRIX technology.  Genta Jago has
        several potential products in various stages of development, the
        majority of which are inte nded to be generic versions of successful
        brand-name drugs currently marketed by others in a controlled-
        release format.  One of these potential products is being developed
        through a collaboration formed earlier in March 1996 with Apothecon,
        Inc., the multisource subsidiary of Bristol-Myers Squibb, while
        another product is being developed through a collaboration with
        Gensia, Inc. and its collaborative partner, Boehringer Mannheim
        Pharmaceuticals Corporation.  

            Exclusive of the charges associated with the expansion of Genta
        Jago, the company reported reductions in net losses during the
        fourth quarter and year ended December 31, 1995 relative to 1994,
        primarily due to lower operating costs largely attributable to
        Genta's restructuring and related cost savings measures implemented
        in the first half of 1995.  These reductions in research and
        development and selling, general and administrative expenses during
        the fourth quarter and year ended December 31, 1995 relative to 1994
        were, however, partially offset by the aforementioned non-recurring
        charges recorded during these periods and by reductions in the level
        of collaborative research funding and interest income during 1995.  

            Earlier this month, the company raised gross proceeds of $6
        million in a private placement of preferred stock sold to
        institutional investors.  Reflecting the net proceeds from this
        financing, the company's cash and cash equivalents are anticipated
        to be sufficient to finance its presently planned operations into
        the third quarter of 1996.  Since the company does not presently
        have sufficient cash to finance its operations through December 31,
        1996, Genta's auditors have included an emphasis paragraph in their
        opinion on the 1995 financial statements with respect to the
        company's ability to continue as a going concern.  

            The company is, however, negotiating with potential corporate
        partners regarding collaborative agreements and is actively seeking
        additional equity and ot her financing arrangements which, if
        successfully completed, would provide additional financial support
        for its drug development programs.  

            Except for the historical information contained herein, the
        matters discussed in this press release are forward-looking
        statements that involve risks and uncertainties, including
        unexpected changes in the company's capital needs, the ability of
        the company to obtain sufficient financing to maintain the company's
        operations and the other risks detailed from time to time in Genta's
        Securities and Exchange Commission (SEC) reports and filings,
        including the company's annual report on Form 10-K for the year
        ended December 31, 1995 and its Registration Statements on Form S-3.
        Actual results may differ materially from those projected.  These
        forward-looking statements represent Genta's judgment as of the date
        of this release.  Genta disclaims, however, any intent or obligation
        to update these forward-looking statements.  

            Genta Incorporated is an emerging integrated biopharmaceutical
        company developing a diversified product portfolio.  The products
        furthest along in the pipeline are GEOMATRIX oral controlled-release
        drugs being developed by the joint venture between Genta and Jagotec
        AG.  Genta's long-term research focuses on the development of its
        proprietary Anticode technology intended to block or regulate
        diseases at their genetic source.  

                                GENTA INCORPORATED
                       (In thousands, except per share data)
                            Three months ended       Years ended
                                December 31,         December 31,          
                              1995       1994       1995       1994   
        Consolidated Statements of Operations Data:  
         Product sales           $ 970     $ 741       $ 3,782   $ 3,574
          research and
          development              ---       448         1,125     3,141
                             -----     -----        ------    ------
                               970     1,189         4,907     6,715
        Costs and expenses:
         Cost of products sold     490       370         1,899     1,710
         Research and
          development            2,064     3,529        11,277    13,533
         Charge for acquired
          in-process research
          and development          ---       850         4,762     1,850
         Selling, general and
          administrative         1,372     1,769         5,439     6,376
                            ------    ------        ------    ------
                             3,926     6,518        23,377    23,469
        Loss from operations    (2,956)   (5,329)      (18,470)  (16,754)
        Equity in net loss
         of joint venture       (2,157)   (1,923)       (6,913)   (7,425)
        Other income, net          (30)       88            17       731
        Net loss               $(5,143)  $(7,164)     $(25,366) $(23,448)
        Dividends on
         preferred stock          (638)     (638)       (2,551)   (2,550)
        Net loss applicable
         to common shares      $(5,781)  $(7,802)     $(27,917) $(25,998)
        Net loss per
         common share            $(.25)    $(.56)       $(1.43)   $(1.90)
        Shares used in
         computing net loss
         per common share       23,082    13,875        19,519   13,710
                                           December 31,              
                                        1995          1994    
        Consolidated Balance Sheets Data:
        Cash, cash equivalents and
         short-term investments            $     272       $ 11,103
        Working capital (deficit)             (3,153)         5,597
        Total assets                          15,631         23,908
        Notes payable and capital lease
         obligations, less current portion     2,334          1,871
        Total stockholders' equity             5,399         14,076
        (1) Excludes $2.8 million in proceeds from the company's private
        placement of Series B Convertible Preferred Stock, reported as a
        receivable from sale of preferred stock at December 31, 1995.  

        CONTACT: Genta Incorporated
                 Howard Sampson, 619/455-2700


            NEW YORK -- March 29, 1996 -- Belding Heminway
        Company, Inc.  (NYSE:BHY) today announced its financial results for
        the fourth quarter and year ended December 31, 1995.  The results
        for both periods reflect the Company's previously announced decision
        to divest its Home Furnishings Division, and account for the
        Division as a discontinued operation, effective with the 1995 fourth
        quarter.  In addition, and also as previously reported, the Company
        initiated a number of programs to improve the efficiency and
        productivity of its Thread Division, which resulted in an after-tax
        charge of $22.5 million, or $3.04 per share, representing primarily
        a write-down of goodwill ($17.4 million) and impaired assets, in the
        fourth quarter of 1995.  

            The Company reported 1995 fourth quarter sales from continuing
        operations of $22.9 million, an increase of 8% from comparable sales
        of $21.3 million in the fourth quarter last year.  The net loss
        applicable to common shares from continuing operations and before
        the Thread Division's one-time charge was $1,221,000, or $0.16 per
        share after provision for preferred dividends.  This compares with a
        net loss applicable to common shares from comparable operations of
        $581,000, or $0.10 per share after provision for preferred dividends
        in the year ago quarter.  The loss from continuing operations before
        the one-time charge and provision for preferred stock dividends was
        $891,000 compared to a loss from comparable operations of $60,000 in
        the year ago period.  Preferred stock dividends were $330,000, and
        $521,000 in the fourth quarter of 1995 and 1994, respectively.
        Weighted average common shares outstanding increased 28% compared to
        the 1994 fourth quarter due to the conversion of preferred stock
        into common shares in December 1994.  

            Reflecting the Home Furnishings Division as a discontinued
        operation, the Company recorded a loss, primarily non-cash and
        including goodwill, from discontinued operations of $18,377,000, or
        $2.48 per share, net of income tax benefits, in the fourth quarter.
        The 1995 fourth quarter loss reflects both the estimated loss on the
        sale of the discontinued business as well as its operating losses
        through the date of its expected disposition.  

            For the year ended December 31, 1995, sales from continuing
        operations were $88.7 million versus sales from comparable
        operations of $76.8 million in the year ago period, an increase of
        15%.  The net loss applicable to common shares from continuing
        operations and before one-time charges was $307,000, or $0.04 per
        share, versus a net loss applicable to common shares from comparable
        operations of $315,000, or $0.06 per share last year.  Income from
        continuing operations before one-time charges was $975,000 before
        provision for preferred stock dividends of $1,282,000 versus net
        income from comparable operations of $2,027,000 before provision for
        preferred dividends of $2,342,000 last year.  Weighted average
        common shares outstanding increased 41% compared to 1994 due to the
        conversion of preferred stock into common shares in December 1994.  

            The net loss applicable to common shares from continuing
        operations including one-time charges of $25,000,000 was $22,835,000
        after provision for preferred stock dividends.  

            The Company noted that its Button Division's continuing
        operation's sales increased by 7.4% in 1995 compared to 1994, which
        was partially attributable to the Company's sales of its three
        dimensional buttons.  

            Gregory Cheskin, President and Chief Executive Officer said:
        "The full year and particularly our fourth quarter results reflect
        lower demand for thread used primarily by the automotive, furniture,
        and footwear industries.  Our results were also impacted by lower
        than historical margins in our Thread Division due to increased raw
        materials pricing, increased labor costs, and certain operating
        inefficiencies which have been identified in our restructuring
        program.  Our restructuring program is designed to aggressively
        address margin and operating efficiency improvements at the Thread
        Division, and to provide the Thread operations with the capability
        to increase profitability even during soft market conditions, such
        as now exist.  Our Button Division continued to perform well,
        reflecting the strength of our brand franchise and talent of our

            Separately, the Company announced that it has amended its credit
        facility agreement effective March 15, 1996.  The Company previously
        announced that it had been in violation of certain covenants under
        its credit agreement at December 31, 1995, which have been waived
        under the terms of the amended agreement.  

            Among other provisions, the amended agreement includes both
        higher annual interest and administrative costs as compared with
        those costs in the original agreement.  The maturity date of the
        amended agreement also has been changed to July 1, 1997 from its
        original maturity date of December 31, 1999.  

            In addition, the amended agreement provides for the payment of
        significant fees if certain repayment targets in respect to the
        credit facility are not met, and also contains certain covenants
        which directly relate to its planned disposition of assets
        associated with its Home Furnishings Division.  Details of the
        amended credit facility agreement are described in the Company's
        1995 form 10-K filing with the Securities and Exchange Commission

            Belding Heminway manufactures and markets industrial and
        consumer threads, and consumer sewing and crafts products,
        principally buttons.  In addition to its headquarters in New York
        City, it has manufacturing or distribution facilities in Lansing,
        Iowa, Hendersonville, North Carolina, Watertown and Winsted,
        Connecticut, and Bronx, New York.  Belding's Home Furnishings
        division manufactures decorative home furnishings fabrics through
        its manufacturing and distribution facilities in Emporia, Virginia.

                         BELDING HEMINWAY COMPANY, INC.
                                AND  SUBSIDIARIES
                  (Amounts in thousands, except per share data)
                                  Three Months Ended         Year Ended
                                     December 31,            December 31,
                                   1995        1994          1995     1994
        Net sales from continuing
         operations                  $22,885     $21,287       $88,654
        Operating income before non-
        recurring charges          $     283    $  1,252      $  7,133 $
        Net income (loss) to common
        stockholders - continuing
         operations (1)              (23,749)      ( 581)      (22,835)
        Discontinued operations
        (net of tax)                 (18,377)        730       (18,000)
        Net income (loss) applicable
        to common stockholders      ($42,126)    $   149      ($40,835)$
        1,182 (2)
        Earnings per common share:
          Continuing operations (1)  $ (3.21)   $  (0.10)     $ (3.08)
          Gain on preferred
        redemption                   --         0.71          --       0.78
          Discontinued operations      (2.48)       0.12       (2.43)
        Total                         ($5.69)      $0.73      ($5.51)
        Weighted average common shares
         (in thousands)                7,409        5,802      7,414
            (1) - The net loss applicable to common stockholders from
        continuing in 1995 operations includes a pre-tax impairment charge
        of $25 million, which is associated with the Company's Thread
        Division. (2) - Excludes gain of $4.099 million resulting from the
        conversion of preferred stock into common shares in December 1994.  

                             (Dollars in thousands)
                                  December 31, 1995   December 31, 1994
        Current Assets                       $32,356          $ 31,518
        Total Assets                         $94,124          $128,452
        Current Liabilities                  $22,570          $ 21,163
        Total Liabilities                    $86,622          $ 81,393
        Stockholders' Equity:
          Preferred                         $ 22,179          $ 20,897
          Common                            $(14,677)         $ 26,162

                 Gary Silverman, 212/556-4700
                 Morgen-Walke Associates
                 Investor Contact:
                 June Filingeri, Robert Weiner
                 Media Contact: Leslie Feldman, Suzanne Miller            

Leslie Fay reports operating profit in
fiscal 1995

            NEW YORK -- March 29, 1996 --
Leslie Fay
        Companies, Inc.
today reported improved financial results for the
        fourth quarter and full year of fiscal 1995 as compared with the
        same periods in 1994.  

            For the 52 weeks ended December 30, 1995, Leslie Fay reported an
        operating profit of $1.2 million, compared with an operating loss of
        $27.3 million in the prior year.  This gain was the result of
        actions Leslie Fay has undertaken to reduce overhead and other
        corporate expenses and to strengthen gross profit by reducing
        markdowns and production costs.  

            Leslie Fay's net sales in fiscal 1995 were $445.2 million,
        compared with $535.3 million in fiscal 1994.  Contributing to this
        decrease were the restructuring actions, including the closing of
        several divisions, implemented by the company in 1994 and 1995,
        which have resulted in a smaller, more focused business.  On a
        comparable business basis, excluding closings, divestitures and new
        businesses, the company had a net sales increase of $15.4 million,
        or 3.6 percent, over 1994.  

            After reorganization costs, interest and financing costs, and
        taxes, Leslie Fay reported a net loss of $17.8 million, or $0.95 per
        share, in fiscal 1995, compared with a net loss of $149.5 million,
        or $7.97 per share, in fiscal 1994.  

            For the 13 weeks ended December 30, 1995, Leslie Fay reported an
        operating loss of $3.6 million on sales of $78.5 million, compared
        with an operating loss of $25.8 million on sales of $106.0 million
        in the fourth quarter of fiscal 1994.  After reorganization costs,
        interest and financing costs, and taxes, Leslie Fay reported a net
        loss of $3.2 million, or $0.17 per share, in the 1995 fourth
        quarter, compared with a net loss of $113.5 million, or $6.05 per
        share, in the same quarter of 1994.  

            As previously announced, Leslie Fay and the Official Committee
        of Unsecured Creditors of Leslie Fay have jointly filed a plan of
        reorganization with the U.S. Bankruptcy Court for the Southern
        District of New York.  The plan provides for the company to emerge
        from chapter 11 by separating its Sassco Fashions business from its
        Leslie Fay Dress, Leslie Fay Sportswear, Outlander and Castleberry
        businesses.  If this proposed plan is consummated, Leslie Fay's
        current equity will be extinguished.  

            John J. Pomerantz, Chairman and Chief Executive Officer of
        Leslie Fay, said, "We are pleased by the company's improved
        financial performance in 1995, which can be attributed to profitable
        growth in the Sassco and Leslie Fay sportswear divisions and better
        margins in the Leslie Fay dress division.  We are also extremely
        encouraged by the response to our product by the consumer.  We are
        working diligently to conclude the chapter 11 process and emerge
        from bankruptcy protection as soon as possible."  

            Founded in 1947, The Leslie Fay Companies, Inc., is one of the
        nation's leading manufacturers of women's apparel, including
        dresses, suits and sportswear.  Its brand names include Leslie Fay,
        Albert Nipon, Kasper for A.S.L., Castleberry, Outlander, and HUE.

                              (Debtor in Possession)
                      (In thousands, except per share data)
                        Statements of Operations Data:
                    Fifty-Two Weeks Ended        Thirteen Weeks Ended
                  Dec. 30,         Dec. 31,    Dec. 30,        Dec. 31,
                    1995             1994        1995            1994
        Net Sales     $ 445,204       $ 535,333   $  78,551      $ 106,020
          Income (Loss)   1,235         (27,278)     (3,622)       (25,843)
        Interest and
          Costs           3,262           5,512         689          2,400
        (1995 and 1994
         interest of
         $18,031 and
         $18,240, and
         $4,507 and
         respectively) Reorganization
          Costs          16,575        115,769       (1,282)        85,124
        Loss before
          for income
          taxes         (18,602)      (148,559)      (3,029)      (113,387)
          (benefit) for
          income taxes     (761)           981          126            143
        Net Loss       ($17,841)     ($149,540)     ($3,155)     ($113,510)
        Net Loss per
          share of
          common stock   ($0.95)        ($7.97)      ($0.17)        ($6.05)
        Weighted average
          common shares
          outstanding    18,772         18,772       18,772         18,772
         Balance Sheet Data:              December 30,      December 31,
                                         1995              1994
          Total Assets                  $   245,980      $    281,634
          Total Liabilities                 401,888           419,569
          Stockholders' Deficit            (155,908)         (137,935)

        CONTACT:  Kekst and Company;
                  James Fingeroth;
                  Michael Freitag;
                  (212) 593-2655

Sequoia Systems announces weakness in third quarter revenue

            MARLBOROUGH, Mass. -- March 29, 1996 -- Sequoia
        Systems Inc. (NASDAQ:SEQS) announced today that expected revenue for
        its third quarter of Fiscal 1996 ending March 31, 1996 will be
        approximately 15 percent - 20 percent lower than the revenues of the
        previous two quarters, which were $27.5 million and $27.9 million
        consecutively.  Fiscal 1995 third quarter revenue totaled $30.2
        million, buoyed by strong sales to one telecommunications customer.

            The company attributed the weakness primarily to an order rate
        reduction by its largest telecommunications customer and softer
        demand in its Enterprise Systems and ruggedized industrial product
        lines.  However, initial order rates for the recently introduced
        HARDBODY mobile computer offering exceeded shipments in the quarter.

            The company had previously announced its intentions to implement
        cost reduction programs this quarter.  As a result of the weakness
        in orders, the company expects to record total charges of
        approximately $4 - 5 million for severance and other costs of
        restructuring operations following the 1995 merger with
        TexasMicrosystems, and for reducing the carrying value of certain
        assets.  Excluding these charges the company expects to report an
        operating loss of under $1M for the third quarter of Fiscal 1996.
        Third quarter Fiscal 1995 profits were $0.8 million or $.05 per

            Final results for the third quarter of Fiscal 1996 are expected
        to be released on April 24, 1996.

            Sequoia Systems Inc. provides computing technology from the
        desktop to the mainframe for environments in which fast response,
        system availability and data integrity are critical.  Sequoia
        Enterprise Systems provides fault-tolerant and highly available
        computers and servers for enterprise computing.  Under the Texas
        Micro brand, Sequoia provides ruggedized, mission-critical PCs,
        mobile computers, rack-mounted systems and components that are Intel
        and SPARC-based.  Sequoia's (SEQS) common stock is traded on Nasdaq.

        CONTACT: Sequoia Systems Inc.
                 Richard B. Goldman, 508/480-0800 x1557


            MOORESTOWN, N.J. -- March 29, 1996 -- href="chap11.todays.html">Today's Man,
(Nasdaq: TMANQ) operating under the protection of Chapter
11 of
        the U.S. Bankruptcy Code as a Debtor-In-Possession, announced sales
        and operating results for the fourth quarter and twelve months ended
        February 3, 1996.  

            Sales for the quarter were $82.7 million, a 10% increase
        compared with sales of $75.4 million for the fourth quarter last
        year.  The loss for the quarter was $30,684,900 or $2.83 per share,
        compared with net income of $2,277,900 or $0.21 per share, for the
        same period a year ago.  The loss includes a restructuring charge of
        $19,248,700, or $1.77 per share, comprised primarily of asset write-
        off and lease rejection costs associated with the Company's
        previously announced decision to exit operations in the Greater
        Chicago market, to close three additional underperforming stores;
        two located in the greater New York market and one located in the
        greater Washington D.C.  market and the outlet center in Sawgrass
        Mills, Florida.  The current year's fourth quarter included 14 weeks
        as compared to 13 weeks in the same period a year ago.  Weighted
        average shares outstanding were 10,861,005 and 10,828,094

            Sales for the twelve months ended February 3, 1996 were $263.3
        million, a 21% increase compared with sales of $216.9 million for
        the twelve months last year.  The loss for the twelve months was
        $35,677,900, or $3.29 per share, compared with net income of
        $4,607,900 or $0.43 per share, for the same period a year ago.  In
        addition to the $19.2 million fourth quarter restructuring charge,
        the Company's 1995 results reflect certain charges that are not
        anticipated to be incurred in future periods, including $1.9 million
        of severance payments related to the departure of certain executive
        officers of the Company and $0.8 million of asset related write-
        offs. The current year included fifty-three weeks as compared to
        fifty-two weeks during the prior year.  Weighted average shares
        outstanding were 10,846,971 and 10,818,956 respectively.  

            Comparable store sales for the fourth quarter decreased 7% and
        for the twelve months decreased 1%.  Today's Man operated 35
        superstores at February 3, 1996 compared with 28 stores at January
        28, 1995.  

            "The Company's results were impacted by a variety of factors
        including significant restructuring charges related to store
        closings, a disappointing holiday season and heavy mark-downs in the
        first quarter of last year,"  said David Feld, Chairman and Chief
        Executive Officer.  "While we are disappointed with these results,
        we believe that the measures the Company has taken -- including
        improved merchandising and sourcing strategies, the exit from the
        Chicago market and the closing of three underperforming stores
        -- support our efforts to improve the Company's performance and
        return to profitability."  

            Today's Man is a men's apparel superstore retailer offering a
        wide selection of tailored clothing, furnishings, accessories and
        sportswear at every day low prices.  Upon completion of the
        previously announced store closings, the Company will operate 25
        locations in the greater New York , Philadelphia and Washington,
        D.C. markets.

                                 Today's Man, Inc.
                               For         For           For            For
                            Fourteen     Thirteen      Fifty-Three    Fifty-Two
                           Weeks Ended  Weeks Ended    Weeks Ended   Weeks Ended
                              Feb. 3, 1996  Jan. 28, 1995  Feb. 3, 1996
        Jan. 28, 1995
        Net Sales              $82,747,800   $75,445,000   $263,256,000
        Cost of goods sold      62,135,700    47,946,200    180,928,200
        Gross profit            20,612,100    27,498,800     82,327,800
        Selling, general and
         expenses               33,814,700    23,049,500    100,747,200
        Restructuring charges   19,248,700             -     19,248,700
        (Loss)/income from
         operations            (32,451,300)    4,449,300    (37,668,100)
        Interest expense         1,192,000       506,600      3,557,300
        Other expense, net         554,000       656,000        653,500
        (Loss) income before
         income tax
         (benefit)/provision   (34,197,300)    3,286,700    (41,878,900)
        Income tax
         (benefit)/provision    (3,512,400)    1,008,800     (6,201,000)
        Net (loss)/income     $(30,684,900)   $2,277,900   $(35,677,900)
        Net (loss)/income
         per share                 $ (2.83)      $  0.21        $ (3.29)
        $  0.43
        Weighted average
         shares outstanding     10,861,005    10,828,094     10,846,971
        CONTACT: Frank E. Johnson
                 Vice President and
                 Chief Financial Officer
                 (609) 722-6380 or
                 MWW/Strategic Communications, Inc.
                 Public Relations - Tel. (201) 507-9500
                 Michael Kempner --
                 Carreen Winters --


            BOGOTA, N.J., March 29, 1996 - DVL, Inc. (OTC-Bulletin
        Board: DVLN) reported net income of $2,120,000 ($.21 per share) on
        operating revenue $3,237,000 for the fiscal year ended December 31,
        1995.  This compares to a net loss of $11,175,000 ($1.34 per share)
        on operating revenue of $3,784,000 for the fiscal year ended
        December 31, 1994.

            DVLN's net income in 1995 was the result of an extraordinary
        gain on settlement of indebtedness of $7,900,000, which includes a
        $6,100,000 gain recognized on settlement with DVLN's final unsettled
        creditor.  If certain payments are made by DVLN in 1996 and 1997 to
        such creditor, then DVLN will recognize additional extraordinary
        gains in the future of approximately $7,400,000.  As a result of
        these settlements, DVLN no longer has any debt obligations that are
        in default.

            On March 28, 1996, DVLN entered into a Loan Agreement with NPM
        Capital LLC ("NPM") pursuant to which NPM will lend DVLN the
        necessary funds to repay four existing creditors and to make
        principal payments to a fifth creditor.  The new loan will be
        repayable over a six year term. DVLN expects NPM will be required to
        advance between $5,000,000 and $6,500,000 to accomplish the
        repayment of these loans.

             In connection with the transaction, DVLN and NPO Management LLC
        ("NPO") - an affiliate of NPM have entered into an Assest Servicing
        Agreement pursuant to which NPO will provide DVLN with
        administrative and advisory services relating to the assets of DVLN
        and its affiliated partnerships.  DVLN anticipates that by
        outsourcing such services it will be able to reduce its existing
        overhead, thereby offsetting the costs of such services.  The
        principals of NPO have substantial experience in finance, real
        estate and partnership management.

            Furthermore, certain affiliates of NPM have agreed, upon funding
        of the new loan, to acquire 1,000,000 shares of DVLN common stock
        for $200,000, which represents approximately seven percent of DVLN's
        outstanding common stock.  DVLN will also issue to NPM warrants to
        purchase up to an additional 42% of the outstanding common stock of

            Consummation of the new loan, Asset Servicing Agreement, stock
        purchase and warrant agreements are subject to shareholder approval.
        If approved by the shareholders, a closing is anticipated in the
        third quarter of 1996.

                                   DVL, INC.
                          ANNUAL RESULTS OF OPERATIONS
                        (in thousands except share data)
                                            1995         1994
        Operating revenues                $3,237        $3,784
        Loss before extraordinary gain   $(5,780)     $(13,110)
        Extraordinary gain on the
         settlements of indebtedness       7,900         1,935
        Net income (loss)                 $2,120      $(11,175)
        Earnings per share data:
         Loss before extraordinary gain    $(.58)       $(1.57)
         Extraordinary gain on the
         settlements of indebtedness        $.79          $.23
        Net income (loss)                   $.21        $(1.34)
        Average shares outstanding     9,980,565     8,336,640
        Fully Diluted
         Loss before extraordinary gain   $(.58)        $(1.57)
         Extraordinary gain on the
         settlements of indebtedness        .79            .23
        Net income (loss)                  $.21         $(1.34)
        Average shares outstanding    9,980,565      8,336,640

        CONTACT:  Joel Zbar of DVL, Inc., 201-487-1300