TCR_Public/960401.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For - April 1, 1996



  1. Drypers Corporation announces fourth quarter and year-end results
  2. ROADMASTER INDUSTRIES REPORTS FOURTH QUARTER AND YEAR END RESULTS
  3. InSite Vision reports fourth quarter and year-end financial results
  4. Dep Corp. files to restructure debt under Chapter 11
  5. The Hibernia Savings Bank announces extraordinary loan loss provision
  6. Grossman's Inc. releases year end results and balance sheets
  7. Watts Industries announces proposed restructuring charges
  8. Monaco Finance reports year-end and fourth quarter 1995 results
  9. Miles Homes announces earnings



Drypers Corporation announces fourth quarter and year-end results


            HOUSTON, TX -- April 1, 1996 -- Drypers Corporation
        (Nasdaq:DYPR) today reported net sales of $46.6 million for the
        fourth quarter ended December 31, 1995, compared with $46.2 million
        for the same period of 1994.  The Company recorded a net loss for
        the recent quarter of $3.4 million, or $0.51 per share, compared
        with net income of $1.3 million, or $0.19 per share, in the fourth
        quarter of 1994.  The net loss for the quarter of 1995 included
        unusual expenses of $2.1 million related to the write-down of idled
        equipment and professional fees associated with the Company s recent
        refinancing.  

        
            The net loss also reflected continued pricing pressures due to
        competitive conditions in the market for disposable baby diapers and
        related products, coupled with higher pulp prices than in the same
        period a year ago.  The Company noted, however, that the fourth
        quarter's results reflected an improvement over the 1995 third
        quarter, with net sales rising 7.6% and the net loss before unusual
        expense declining to $1.3 million, or $0.19 per share.  This
        improvement was attributed to gains in market share and unit volume,
        as well as achieving planned reductions in operating costs.  

        
            As announced in the Company s March 1 press release, the Company
        recently closed a financing package comprised of a revolving credit
        facility, with a borrowing base of up to $21 million and
        approximately $9 million of new equity in the form of convertible
        preferred stock.  
   

     
            Walter V. Klemp, Chairman and Co-Chief Executive Officer, noted,
        "We are excited by the continued improvement in the operating
        environment we experienced during the fourth quarter of 1995.  Our
        grocery store market share has risen to record high levels and we
        have seen a continuation of declining raw material prices.  We
        expect raw material prices to decline further as we move into this
        fiscal year.  As a result of a very successful cost cutting program
        and a significant increase in consumer approval of our new thin
        product design, we returned to positive operating income, before
        unusual expenses, in the fourth quarter.  In fact, we saw our
        quarterly EBITDA before unusual expenses improve by $4.2 million
        from the second to the fourth quarter of 1995."  

        
            Mr. Klemp, added, "Looking toward the first quarter of 1996, we
        anticipate this positive trend in operating gains will continue.
        However, this trend will be masked in our first quarter as results
        will reflect the effects of the relocation of our training pant line
        and residual effects of costs related to our debt refinancing."  
   

     
            Mr. Klemp, concluded, "Going forward, Drypers should benefit
        significantly from the combined effects of major cost cutting
        programs, improved competitive position and declining raw material
        prices.  We believe this should allow us to show a significant
        improvement in operating profit in the second quarter and positive
        net income in the second half of the year."  
      

  
            The Company also announced that for the year ended December 31,
        1995, net sales were $164.0 million compared with $173.6 million for
        1994.  The net loss for 1995 was $15.5 million, or $2.35 per share,
        compared with net income before extraordinary item of $6.8 million,
        or $1.09 per share, in fiscal 1994.  The net loss for the 1995
        period included a restructuring charge of $4.3 million related to
        the elimination of diaper production at Drypers' Houston plant, as
        well as an unusual expense of $3.2 million for promotional and other
        expenses related to the repositioning of the Company's premium brand
        products and professional fees associated with the refinancing.  Net
        income for 1994 included an unusual expense of $1.1 million related
        to one-time legal expenses incurred in connection with the defense
        of a patent infringement lawsuit, and an extraordinary charge of
        $3.7 million, or $0.59 per share, related to the redemption of debt.

        
            Drypers Corporation manufactures and markets disposable baby
        diapers and related products under the Drypers brand name.  The
        Company's products are sold through grocery stores and mass
        merchants throughout the United States, Latin America and other
        international markets.  The Company also produces price value
        branded and private label diapers and related products.


        
                        DRYPERS CORPORATION (NASDAQ: DYPR)
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                      (In Thousands, Except Share Amounts)
        
                               Three Months Ended     Year Ended     
                                 December 31,        December 31,
                                 (Unaudited)          (Audited)
                                1995      1994      1995      1994  
        
        NET SALES                $ 46,554 $ 46,168   $163,947  $173,552
        
        COST OF GOODS SOLD         31,162   29,225    114,075   106,130
        
         Gross profit          15,392   16,943     49,872    67,422
        
        SELLING, GENERAL AND
         ADMINISTRATIVE EXPENSES   14,533   13,422     53,691    48,081
        
        UNUSUAL EXPENSES              827       --      3,185     1,141
        
        RESTRUCTURING CHARGE        1,283       --      4,255        --
        
           Operating income (loss) (1,251)   3,521    (11,259)   18,200
        
        INTEREST EXPENSE, net       2,169    1,746      8,035     7,685
        
        OTHER INCOME                   --       82      --          434
        
        INCOME (LOSS) BEFORE INCOME
         TAX PROVISION (BENEFIT)
         AND EXTRAORDINARY ITEM    (3,420)   1,857    (19,294)   10,949
        
        INCOME TAX PROVISION
         (BENEFIT)                    (27)    543      (3,829)    4,151
        
        INCOME (LOSS) BEFORE
         EXTRAORDINARY ITEM        (3,393)  1,314     (15,465)    6,798
        
        EXTRAORDINARY ITEM,
         net of taxes                  --      --         --     (3,688)
        
        NET INCOME (LOSS)        $ (3,393) $ 1,314   $(15,465) $  3,110
        
        COMMON AND COMMON
         EQUIVALENT SHARES
         OUTSTANDING             6,628,137 7,031,199 6,587,698 6,246,087
        
        INCOME (LOSS) PER
          COMMON SHARE:
        
         Before extraordinary
          item                     $ (0.51)  $  0.19   $ (2.35)  $  1.09
        
         Extraordinary item            --        --         --     (0.59)
        
         Net income (loss)        $  (0.51)  $   0.19  $ (2.35)  $  0.50

        
                                DRYPERS CORPORATION
                            CONSOLIDATED BALANCE SHEETS
                                  (In Thousands)
                                     (Audited)
        
                                                   
                                                   December
                                                     1995
                                                   Pro forma
                                       December       for          December
                                         1995    Refinancing(a)     1994   
        
        ASSETS:
        
        CURRENT ASSETS                     $ 40,625     $ 40,625       $
        40,735
        
        PROPERTY AND EQUIPMENT, net of
         depreciation and amortization       36,375       36,375
        34,853
        
        OTHER ASSETS                         60,420       60,420
        56,143
                                       $137,420     $137,420       $131,731
        
        LIABILITIES AND STOCKHOLDERS' EQUITY:
        
        CURRENT LIABILITIES                $ 44,222     $ 35,422      $
        22,773
        
        LONG-TERM DEBT                       47,350       47,350
        46,632
        
        OTHER LIABILITIES                     4,026        4,026
        5,559
        
        STOCKHOLDERS' EQUITY                 41,822       50,622
        56,767
        
                                       $137,420     $137,420      $131,731
        
        (a) Reflects the pro forma effect of the private placement of $8.8
        million of Series A Senior Convertible Cumulative 7.5% Preferred
        Stock completed on February 29, 1996.  
        
        
        CONTACT: Drypers Corporation
                 Walter V. Klemp
                 Chairman & Co-Chief
                 Executive Officer
                 (713) 682-6848
                   or
                 Lynn Morgen/Howard Zar/
                 Melissa Garelick
                 Press: Leslie Feldman
                 Morgen-Walke Associates
                 (212) 850-5600



ROADMASTER INDUSTRIES REPORTS FOURTH QUARTER AND YEAR END
RESULTS ; 1995 Results Include Restructuring And Special Charges For -
Fitness Operations; Company To Record Gain In 1996 On Previously Reported
Sale Of - Camping Division


            ATLANTA, GA -- APRIL 1, 1996 -- ROADMASTER INDUSTRIES,
        INC.  (NYSE: RDM) today announced its fourth quarter and full-year
        results for the period ended December 31, 1995.  
        


            Included in the results are details of restructuring and other
        special charges totaling $50.5 million, pre-tax, with an after tax
        impact of $32.0 million, primarily relating to its Diversified
        Products ("DP") and Vitamaster fitness operations.  In its recently
        reported sale of its Nelson/Weather-Rite Camping Division to
        Brunswick Corporation (NYSE: BC), the company noted it will record a
        $59.4 million taxable gain in the first quarter of fiscal 1996 ended
        March 31.  The financial reporting gain is expected to be $32.4
        million.  All of the net proceeds were used to reduce outstanding
        bank indebtedness resulting in an approximate one-third reduction in
        total outstanding debt.  

        
            "The preponderance of the 1995 operating losses were incurred in
        our fitness operations,"  said Roadmaster Chief Operating Officer,
        Edward Shake.  "Our primary focus in 1996 is the restoration of
        profitability in this area.  The previously announced closure of
        Roadmaster's Tyler, Texas fitness facility and its consolidation
        into the Opelika, Alabama plant is a necessary first step to reduce
        fixed cost levels and to enhance our competitiveness.  This
        initiative is presently underway and will be completed by mid- year.
        The difficulties in integration of the DP acquisition combined with
        a weak retail sales environment, intense competitive pressures, and
        rising commodity prices proved too much to overcome in 1995,"  Mr.
        Shake added.  

        
            The company stated that its bicycle and toy business units,
        despite unprecedented material price increases and the competitive
        environment, posted strong performance and market share gains in
        1995.  On a stand-alone basis, these units were profitable.  The
        company attributed this strong performance to the success of its new
        products, enhancements of existing product lines, building its
        Flexible Flyer brand name, and cost reductions.  Revenues in the
        bicycle and toy categories totaled $278.7 million in 1995 compared
        to $250.8 million in the Company's fitness operations.  
   

     
            The restructuring and special charges discussed above primarily
        relate to the company's fitness operations: Primarily non-cash in
        nature, these include a $23.5 million pre-tax charge related to
        goodwill resulting from the 1994 acquisition of Diversified
        Products; a $7.5 million restructuring charge identified to the
        closing of Roadmaster's Tyler, Texas fitness manufacturing facility,
        the elimination of approximately 600 positions and consolidation of
        all of the Company's fitness operations at the Opelika, Alabama
        plant and special charges for inventory and warranty of $13.2
        million.  

        
            In the fourth quarter, loss before restructuring and special
        charges was $9.7 million or $0.20 per share, compared with a profit
        of $170,000, or $0.00 per share, in the prior year.  During the
        fourth quarter, the company recorded a one time primarily non cash
        after-tax charge of $32.0 million or $0.65 per share to reflect
        restructuring and special charges.  After the effect of these
        charges, the net loss was $41.7 million or $0.85 per share.  
   

     
            As expected, the net loss for 1995, before restructuring and
        other special charges, was $19.0 million or $0.39 per share,
        compared with earnings of $5.0 million or $0.16 per share for the
        year ended December 31, 1994.  

        
            Total revenues for 1995 increased 60% to $730.9 million from
        $455.7 million reported for fiscal 1994.  The net loss for 1995
        totaled $51.0 million or $1.04 per share compared to net income of
        $5.0 million or $0.16 per share for the year-ago period.  
   

     
            As a result of the loss in 1995 and the other charges necessary
        to improve the Company's cost position, significant tax losses were
        generated and are expected to be substantially utilized in
        realization of the gain on divestiture of Roadmaster's Camping
        Division.  
      

  
            President and CEO Henry Fong commented, "Roadmaster had one of
        its more challenging years in 1995.  The restoration of
        profitability during 1996 is our paramount objective.  We are
        presently evaluating various organizational initiatives within our
        fitness operations to enable us to better focus on the resolution of
        our internal issues and to be more responsive to changing industry
        demographics."  Mr.  Fong added, "The Company will enter the second
        quarter with substantially improved liquidity enabling it to
        complete its restructuring efforts and continue to capitalize on the
        strong brand equities it has built."  

        
            Roadmaster, one of the largest manufacturers of bicycles, is
        also a leading producer of fitness equipment, and is a leading
        producer and distributor of toys and team sport equipment.  The
        trademarks or brand names under which Roadmaster sells its products
        include Roadmaster, Flexible Flyer, Vitamaster, MacGregor, DP,
        Hutch, Reach and Forster.  


        
                 ROADMASTER INDUSTRIES, INC. AND SUBSIDIARIES
                        Selected Income Statement Data
                     (in thousands, except per share data)
                                       
                          Three Months Ended           Twelve Months Ended
                       Dec. 31, 1995 Dec. 31, 1994 Dec. 31, 1995 Dec. 31, 1994
         
        Net Sales               207,395     151,705      730,876     455,661
        Cost of Sales           188,899     131,082      644,268     388,871
           Gross Profit          18,496      20,623       86,607      66,790
         
        Selling, general and
         administrative expenses 37,924       14,161      92,814      37,976
         
        Impairment loss          23,500         --        23,500          --
         
        Restructuring expense     7,521         --         7,521          --
         
        Other expense, net:
        Interest expense          9,395       6,084       35,470      21,312
         
        Other, net                5,522         272        7,785       (394)
         
        Earnings (loss) before
         income tax expense     (65,366)        106      (80,483)     7,896
         
        Income tax expense
         (benefit)              (23,621)        (64)     (29,479)     2,896
           Net earnings (loss)  (41,745)        170      (51,004)     6,000
         
        Earnings per common share:
           Primary                (0.85)       0.00       (1.04)       0.16
           Fully diluted          (0.85)       0.00       (1.04)       0.16
         
        Weighted average common shares
           outstanding and common stock
           equivalents:
           Primary              49,177       35,466      49,004      31,878
           Fully diluted        49,177       35,466      49,004      31,878
         
        
        CONTACT: Lippert/Heilshorn & Associates
                 Richard Foote, ext. 119, Jeffrey Volk, ext. 102
                 212/838-3777
                       or
                 ROADMASTER INDUSTRIES, INC.
                 Jeff Hinton, 404/586-9000




InSite Vision reports fourth quarter and year-end financial results

        
            ALAMEDA, Calif. -- April 1, 1996 -- InSite Vision
        Incorporated (NASDAQ: INSV) today reported its financial results for
        the fourth quarter and year ended Dec. 31, 1995.  
        


            InSite Vision recorded revenues of $15,000 and a net loss of
        $3.0 million ($0.33 per share) in the fourth quarter ended Dec. 31,
        1995.  In the 1994 fourth quarter, the company had revenues of
        $21,000 and a net loss of $3.6 million ($0.40 per share).  In the 12
        months ended Dec. 31, 1995, InSite Vision recorded revenues of
        $65,000 and a net loss of $12.6 million ($1.38 per share).  These
        results compare to revenues of $112,000 and a net loss of $13.9
        million ($1.55 per share) in the year ended Dec. 31, 1994.  At Dec.
        31, 1995, InSite Vision had cash and short-term investments of $3.9
        million.  In January 1996, the company completed a private placement
        of securities which increased cash and short-term investments by
        $4.8 million.  

        
            These results are consistent with company expectations.  The
        decline in revenues in 1995 was due principally to the completion of
        a contract research arrangement.  Included in the 1995 fourth
        quarter net loss was a $1.0 million one-time charge related to a
        corporate restructuring implemented in November.  In connection with
        the restructuring, InSite Vision reduced its workforce by
        approximately 50%, reduced substantially self-funded product
        development, and elected not to proceed with plans to establish its
        own sales and marketing organization.
   

     
            InSite Vision is an ophthalmic pharmaceutical company focused on
        the development of improved and entirely new eye medications based
        on its proprietary DuraSite drug delivery platform.


        
                       InSite Vision Incorporated     
            Condensed Consolidated Statements of Operations
        For the Quarters and Years Ended Dec. 31, 1995 and 1994
          (in thousands, except per share amounts; unaudited)
        
                                      Three Months           Year
                                    1995        1994    1995      1994
        
        Revenues                       $    15   $    21   $    65   $   112
        
        Operating expenses:
           Research and development      1,502     2,696     8,079     9,944
           General and administrative      561     1,120     3,801     4,961
           Restructuring                 1,031        --     1,031        --
         Total                       3,094     3,816    12,911    14,905
        
        Loss from operations            (3,079)   (3,795)  (12,846)
        (14,793)
        Interest - net                      36       169       224       845
        Net loss                       $(3,043)  $(3,626) $(12,622)
        $(13,948)
        
        Net loss per share             $ (0.33)  $ (0.40)  $ (1.38) $
        (1.55)
        
        Shares used to calculate net
         loss per share                  9,207     9,061     9,160     8,998
        
                      InSite Vision Incorporated     
                 Condensed Consolidated Balance Sheets
                       At Dec. 31, 1995 and 1994
                       (in thousands; unaudited)
        
                                              1995                1994
        
        Assets:
        Cash and short term investments(a)     $  3,867            $ 17,546
        Property and equipment, net               3,625               3,014
        Prepaid expenses                            151                 706
        Total assets                           $  7,643            $ 21,266
        
        Liabilities and stockholders' equity:
        Current liabilities                    $  1,642            $  1,983
        Other liabilities                           154               1,330
        Stockholders' equity                      5,847              17,953
        Total liabilities and equity           $  7,643            $ 21,266
        
        (a) In January 1996, the company completed a private placement of
        securities which increased cash and short-term investments by
        $4.8 million.

        
        CONTACT:  InSite Vision
                  Kumar Chandrasekaran Ph.D., 510/865-8800
      

Dep Corp. files to restructure debt under
Chapter 11 ; disclosure statement, plan of reorganization included in
filing; provides 100% payment to creditors


            LOS ANGELES, CA -- April 1, 1996 -- Dep Corporation
        (NASDAQ SmallCap: DEPCA/DEPCB) said today that it has filed to
        reorganize and restructure its long-term debt under Chapter 11 of
        the federal Bankruptcy Code.  The filing, which was made in the
        United States Bankruptcy Court, the District of Delaware, included a
        disclosure statement and a plan of reorganization which provides for
        payment in full, with interest, to its secured lenders and its
        unsecured creditors.  
        


            Dep blamed the filing primarily on its acquisition of Agree and
        Halsa from S.C. Johnson & Son, Inc., currently the subject of a
        lawsuit by Dep against Johnson.  
        


            The Company said that the combination of cash on hand and cash
        flow from operations is expected to be more than adequate for it to
        purchase goods and services and to fund day-to-day operations for
        the foreseeable future.  Accordingly, at this time it does not
        require debtor-in-possession (DIP) financing.  

        
            Robert Berglass, president and chief executive officer of Dep,
        said that the Company has had and continues to have positive cash
        flow from operations, despite the fact that for more than two years
        the Company's operations and profitability have been severely
        affected by its purchase of Agree and Halsa from S.C. Johnson & Son,
        Inc.  
   

     
            ``Quite simply, the brands have not even generated enough sales
        to cover the principal and interest on the bank debt incurred as a
        result of the purchase.  Accordingly, it became clear that even
        though we were cash flow positive, in order to remain a viable
        company, we had to restructure our debt,'' he said.  
      

  
            Mr. Berglass said that the Company has been negotiating with its
        lenders on a debt restructuring for more than two years.  He said
        that even though Dep has made timely payment of all of its principal
        and interest due under its credit facility, as amended from time to
        time, it was not able to reach an agreement which was acceptable to
        all concerned.  

        
            ``When we finally determined that we would be unable to reach a
        mutually satisfactory agreement with our secured lenders, the
        Company concluded that, although it would have preferred not to have
        to resort to the courts, it was in the best long-term interests of
        its constituents to effect a court-supervised restructuring,'' he
        said.  ``By utilizing the Chapter 11 process, we believe we can
        restructure the Company's debt to be consistent with our cash
        flow.''
   

     
            Mr. Berglass said that Dep will continue to pursue all legal
        rights against S.C. Johnson and that Dep's breach of contract
        lawsuit is presently scheduled for trial in May, 1996 in Riverside,
        California.  At that time, Dep shall be seeking $20 million in
        monetary damages, which is the maximum breach of contract damages
        provided for in its purchase agreement with S.C. Johnson.  

        
            Mr. Berglass said that the severe decline in Agree and Halsa
        sales had not been anticipated, based upon the information Dep
        received from S.C. Johnson.  Since the acquisition of Agree and
        Halsa, the sales of those products unexpectedly plummeted from $65
        million to less than $25 million annually.  
   

     
            ``This, when combined with the interest costs associated with
        their purchase, has resulted in losses for the company,'' he said.
        ``In addition, our capital structure was adversely affected by a
        $25.2 million write-off of asset value in April of 1995.''
      

  
            Mr. Berglass emphasized that ``the filing should have no effect
        on the company's customers or its employees.  Daily operations,
        including shipments to our retail customers, will continue as usual
        and all aspects of the business will go on as before the filing.
        Paychecks will be issued as before.  We will continue to rigorously
        support our brands through advertising and promotional programs, as
        well as continue with our successful history of developing and
        introducing innovative products into the marketplace.''

        
            He stated that Dep has ``contacted many of our suppliers to
        discuss the company's various options and they have indicated their
        support during this period.  While federal law prohibits the Company
        from paying for goods and services received before the filing,
        payments for goods and services received after the filing date are
        given priority status by the Bankruptcy Code.''
   

     
            Mr. Berglass added, ``Over the past 12 months we have made many
        of the tough decisions and have developed a turn-around strategy
        that, once fully implemented, should result in a stronger, more
        efficient and profitable business.  During this period, we have
        reduced overhead and expenses by more than $3 million on an annual
        basis, including a 20% headcount reduction.  The Company continues
        to review its operations and implement programs aimed at reducing
        costs and improving profitability.  

        
            ``We have reviewed and will continue to review every aspect of
        our business with the goal of increasing sales and profitability,''
        he stated.  ``We already have begun implementing programs to achieve
        that objective, in addition to developing new and creative
        advertising and promotional plans to enhance the sell-through of our
        brands at retail.  We have our work cut out for us, but I am
        optimistic that, with the continued outstanding support of our
        suppliers, the hard work of our employees and the loyalty of our
        retail customers, we will come through this process a stronger, more
        competitive Company than before.''
        


            Dep Corporation is a consumer products company that develops,
        manufactures and markets a wide variety of hair, oral and skin care
        products under 10 major brand names: Dep, L.A. Looks, Agree, Halsa,
        Lilt, Topol, Lavoris, Natures Family, Porcelana and Cuticura.  It
        employs approximately 300 people.  


        CONTACT:  Sitrick and Company, Los Angeles
                  Michael Sitrick or Ann Julsen
                  310/764-2247 or 310/788-2850



The Hibernia Savings Bank announces
extraordinary loan loss provision


            QUINCY, Mass. -- April 1, 1996 -- The Hibernia
        Savings Bank (NASDAQ:HSBK) has announced an extraordinary loan loss
        provision for the first quarter ended March 31, 1996 of $1,000,000.
        


            On Friday, March 29, 1996 Bank officers became aware through
        published newspaper reports that the U.S. Attorney's office in New
        York City had filed a lawsuit against the Bennett Funding Group,
        Inc. and Patrick R. Bennett, Chief Financial Officer of the company,
        for securities fraud and perjury in connection with an offering by
        the company of $80 million in short and medium term notes.  In
        addition, the Securities and Exchange Commission also filed a
        lawsuit against The Bennett Funding Group Inc. for misrepresentation
        and factual omissions related to the selling of more than $570
        million in equipment leases and promissory notes to investors since
        1991.  The SEC lawsuit charged that Bennett Funding Group Inc. had
        sold investors tens of millions of dollars of assignments on office
        equipment leases that didn't exist, as well as fraudulently selling
        leases that had already been sold.  On Monday, April 1, 1996 Bennett
        Funding Group Inc. filed for Chapter 11 bankruptcy protection and
        stated that the company will cease payments to investors.

        
            Between January 28, 1994 and March 17, 1995 the Hibernia Savings
        Bank entered into three separate commercial equipment contracts with
        the Bennett Funding Group Inc. for an aggregate original investment
        of $2,599,929 by which the bank acquired 374 leases secured by
        office equipment originated by the Bennett Funding Group Inc. with
        initial outstanding balances due totaling $3,085,287.  In
        conjunction with each of the contracts the Bennett Funding Group
        Inc. provided a payment guaranty and servicing of the individual
        leases.  The initial due diligence conducted by the bank included
        contacting by telephone approximately 25 percent of the lessees to
        verify that the equipment was in place and that the lease agreement
        was a valid business transaction.  The bank is in the possession of
        all the original lease agreements.  Up to this point, the bank has
        received all scheduled payments of principal and interest due under
        each contract in accordance with the original terms and conditions.
        Currently, the Bank has a balance of $1,409,950 outstanding from its
        initial investment in the commercial equipment contracts and there
        are 311 leases with total outstanding balances of $1,922,978
        remaining.  These leases are the only assets of this nature on the
        bank's books at this time.

        
            Immediately upon becoming aware of the charges against the
        Bennett Funding Group Inc. the bank exercised its rights under the
        agreements by terminating the servicing arrangement with the Bennett
        Funding Group Inc. and notified the individual lessees that all
        future payments should be forwarded directly to the bank.  In
        addition the bank is in the process of contacting every lessee by
        telephone.  To date, the bank has reached by telephone 120 lessees.
        In each instance the lessee has affirmed that the equipment is in
        place and that the lease obligation is a valid business transaction.
        The bank has no information to this point that would allow it to
        conclude that any of the leases acquired are fraudulent.  However,
        the bank's expectation is that as a result of confusion and
        uncertainty on the part of the individual lessees created by the
        foregoing events that there will be an interruption in the normal
        flow of payments due under the leases.  Also, as a result of the
        bankruptcy filing of the Bennett Funding Group Inc. and the
        probability of litigation it is very likely that an extended period
        of time will be required to unravel the situation.  The bank intends
        to pursue all of its claims against all of the parties involved.

        
            Mark A. Osborne, chairman of the board stated, "given all of the
        circumstances involved the most prudent position that this company
        could take to deal with this problem would be to charge off the
        remaining balance of our investment in these leases of $1,409,950
        against our allowance for loan losses.  This action is being taken
        to preserve the integrity of our balance sheet even though we
        believe the 311 leases currently outstanding for $1,922,978 are
        valid business transactions and fully enforceable and that
        consequently there is a substantive recoverable value to these
        assets.  In conjunction therewith, we will also book an
        extraordinary provision for loan losses of $1,000,000.  It has been
        our posture to maintain our loan loss allowance on a conservative
        basis which when combined with the fact that our core earnings have
        continued to improve results in the bank being well positioned to
        absorb this charge without interrupting our efforts to achieve our
        strategic business initiatives.  In the absence of this event,
        operating results for the first quarter would have been solid.
        After taking the steps outlined we will still be marginally
        profitable, earnings when released should fall within a range of
        $50,000 to $100,000."

        
            As of March 30, 1996, the Bank had one loan delinquent thirty
        days or more totaling $120,942.  In addition, also as of March 30,
        1996 and exclusive of the Bennett Funding Group Inc. situation
        discussed above, the Banks nonperforming assets totaled $951,660 or
        .27 percent of total assets.  The components of nonperforming assets
        at that date were nonperforming loans of $951,660, the bank had no
        other real estate owned.
   

     
        The Hibernia Savings Bank, founded in 1912, is a full service,
        state-chartered, stock savings bank.  The main office of the Bank is
        located at 731 Hancock Street, Quincy, Mass.  The Banks
        administrative offices are located at 730 Hancock Street, also in
        Quincy.  Retail branch banking facilities are located in Boston,
        Quincy, Braintree, Weymouth, Hingham and Stoughton and loan centers
        are located In Quincy and Braintree.  All deposits are insured in
        full by the Federal Deposit Insurance Corp. (FDIC)/Deposit Insurance
        Fund (DIF).


        CONTACT: Hibernia Savings Bank
                 Gerard F. Linskey, 617/479-5001



Grossman's Inc. releases year end results and balance sheets
        


            CANTON, Mass. -- April 1, 1996 -- Grossman's Inc.
        (NASDAQ-GROS) today announced results for the quarter and year ended
        December 31, 1995.  The Company reported a loss of $198 thousand, or
        1 cent per share, for the year on sales of $670 million, as compared
        with a loss of $1.9 million, or 7 cents per share, for the year
        ended December 31, 1994.  For the fourth quarter of 1995, the
        Company reported a loss of $5.9 million, or 23 cents per share,
        versus a loss of $1.0 million, or 4 cents per share, for the same
        quarter a year ago.  
        


            The 1995 results include a pre-tax gain on the sale of the
        Company's former headquarters site of $18.1 million and a provision
        for the closing of 11 Eastern Division stores of $4.5 million.  The
        1994 results include a provision of $6.5 million for the closing of
        18 Eastern Division stores.  

        
            Last week the Company announced a major restructuring and
        refinancing plan.  The remaining 60 Grossman's stores in eight
        Northeastern states are being closed and inventories are being
        liquidated over an estimated eight to ten week period.  Expansion of
        the Company's Contractors' Warehouse Division in the West and
        Midwest and the Mr.  2nd's Bargain Outlet Division in the East will
        continue in 1996 and future years.  The Company indicated that it
        plans to convert a limited number of the former leased Grossman's
        stores into Mr. 2nd's Bargain Outlet stores during 1996.  
   

     
            The actions enabled the Company to obtain a commitment for a
        mortgage loan to be repaid from the proceeds from the sale of 55
        owned properties in the Northeast, including 40 of the stores being
        closed.  The Company also announced that it had reached an agreement
        with the holders of the Company's 14% Debentures, curing a January
        default.  Lastly, the Company stated that it had sold a $15.8
        million note receivable from Kmart Corporation for $13 million, its
        approximate book value.  The Company expects to reflect a
        restructuring charge of approximately $40 million in the first
        quarter of 1996.  

        
            Grossman's operates 39 stores in four Northeastern states,
        California, Indiana, Nevada and Ohio under the names Contractors'
        Warehouse and Mr. 2nd's Bargain Outlet.


        
                            Grossman's Inc.
                Consolidated Statements of Operations
                (in thousands, except per share data)
                             (Unaudited)
         
                         Three Months Ended      Year Ended   
                            December 31,        December 31,   
                         ------------------  ------------------
                           1995      1994      1995      1994  
                           ----      ----      ----      ----
        SALES                $155,161  $177,824  $669,899  $759,156
        COST OF SALES         118,407   134,401   510,220   572,095
                         --------  --------  --------  --------
          Gross Profit         36,754    43,423   159,679   187,061
         
        OPERATING EXPENSES
          Selling and
           administrative      40,078    39,614   156,995   164,495
          Depreciation and
           amortization         2,571     3,041    11,221    12,625
          Store closing            -         -      4,500     6,500
          Preopening expense      262       643       724     1,378
                         --------- --------- --------- ---------
                           42,911    43,248   173,440   184,998
                         --------- --------- --------- ---------
        OPERATING INCOME
         (LOSS)                (6,157)      125   (13,761)    2,063
        OTHER EXPENSES
         (INCOME)
          Interest expense      1,773     1,755     8,211     7,376
          Net gain on disposals
           of property            (32)      (11)  (18,345)     (364)
          Other                (1,545)     (719)   (4,095)   (3,322)
                         --------- --------- --------- ---------
                              196     1,025   (14,229)    3,690
        EQUITY IN NET LOSS
         OF UNCONSOLIDATED
         AFFILIATE                183       252       666       490
                         --------- --------- --------- ---------
        (LOSS) BEFORE INCOME
         TAXES                 (6,536)   (1,152)     (198)   (2,117)
        (CREDIT) FOR INCOME
         TAXES                   (634)     (115)       -       (212)
                         --------- --------- --------- ---------
        NET INCOME (LOSS)    $ (5,902) $ (1,037) $   (198) $ (1,905)
                            
        NET INCOME (LOSS)
         PER COMMON SHARE
          (Primary and Fully
           Diluted)          $  (0.23) $  (0.04) $  (0.01) $  (0.07)
                            
        WEIGHTED AVERAGE
         SHARES AND
         EQUIVALENT SHARES
         OUTSTANDING         
           (Primary and
        Fully Diluted)     26,028    25,762    25,946    25,752
                            
        
                            Grossman's Inc.
                     Consolidated Balance Sheets
                           (in thousands)
                            (Unaudited)
         
         
                                    December 31,    December 31,
                                        1995            1994
                                    ------------    ------------
         
        ASSETS                       
                                   
        CURRENT ASSETS
        Cash and cash equivalents        $  2,536         $  3,034   
        Receivables, net                   23,940           19,449   
        Inventories                       102,009          116,602   
        Note receivable, net               13,000               -
        Other current assets                6,512            9,048
                                     --------         --------
         
          Total current assets            147,997          148,133   
         
        PROPERTY, PLANT AND          
         EQUIPMENT, NET                    94,256          114,897   
        OTHER ASSETS                        1,276            3,590   
                                     --------         --------
          
           TOTAL ASSETS                  $243,529         $266,620   
                                                 
         
         
        LIABILITIES AND STOCKHOLDERS'
        INVESTMENT
         
        CURRENT LIABILITIES
        Accounts payable and
         accrued liabilities             $ 91,308         $ 89,816   
        Accrued interest                    1,403            1,555
        Current portion of
         long-term debt and
         capital lease obligations         20,445           13,278   
                                     --------         --------
         
          Total current liabilities       113,156          104,649   
         
        REVOLVING TERM NOTE
         PAYABLE                           32,844           29,888
        LONG-TERM DEBT AND CAPITAL
         LEASE OBLIGATIONS                  5,668           30,039
        PENSION LIABILITY                   8,270            4,348
        OTHER LIABILITIES                   9,796           17,051   
                                     --------         --------
         
          Total Liabilities               169,734          185,975   
         
        STOCKHOLDERS' INVESTMENT           73,795           80,645   
                                     --------         --------
        TOTAL LIABILITIES AND        
         STOCKHOLDERS' INVESTMENT        $243,529         $266,620   
                                                 

        CONTACT:  Steven L. Shapiro,
                  Vice President - Controller;
                  (617) 830-4020

        
Watts Industries announces proposed restructuring charges
and plans to divest waterworks businesses
        


            NORTH ANDOVER, Mass. -- April 1, 1996 -- Watts
        Industries Inc. (NYSE:WTS) announced today that it expects to record
        unusual charges to third quarter earnings aggregating approximately
        $85 to $90 million (after-tax) in connection with its previously
        announced restructuring, consolidation and downsizing  program.

        
            Since a majority of these charges and costs are non-cash items,
        the company estimates that after-tax cash impact will be
        approximately $5 - $10 million.  The specific amount of these
        charges will be announced concurrently with the company's release of
        third quarter results in mid-April.  The charges will result in a
        net loss for the third quarter and the full fiscal year.  The
        company also expects that earnings from continuing operations in the
        third quarter will be less than last year.
   

     
            In addition to these charges, approximately $2 to $4 million
        (after-tax) related to the downsizing and relocation of
        manufacturing facilities will be recorded in subsequent periods, the
        majority of which is expected to be recorded in the fourth quarter,
        in compliance with applicable accounting rules requiring recognition
        of these restructuring expenses as they are incurred.
        


            Timothy P. Horne, chairman, president and chief executive
        officer of Watts, stated that, "Approximately $63 million of the
        third quarter charges is expected to result from write-down of
        assets, including goodwill recorded in prior acquisitions,
        reflecting the company's adoption of Financial Accounting Standards
        No. 121, `Accounting for the Impairment of Long-Lived Assets and for
        Long-Lived Assets to be Disposed of.'  A majority of this goodwill
        write-down is expected to relate to the company's Italian
        operations."  "The balance of the charges," Horne added, " is
        primarily related to our company-wide restructuring and will consist
        of costs to consolidate manufacturing, downsize our organization and
        write-down inventory.  The company expects the results of this
        restructuring plan to have positive financial impacts beginning in
        fiscal 1997."

        
            As part of its overall restructuring program, Watts also
        announced plans to sell its waterworks related valve businesses and
        engaged Schroder Wertheim & Co. to manage the divestiture process.
        Watts' waterworks valve companies include the Henry Pratt Co.,
        headquartered in Aurora, Ill; James Jones Co., located in El Monte,
        Calif.; and Edward Barber & Co. Ltd. (EBCO), located in Tottenham,
        England.  These companies had sales of approximately $83 million for
        the 12 months ended Dec. 31, 1995.  Horne added, "This divestiture
        strategy has been undertaken to reallocate our financial resources
        towards our primary markets of plumbing, heating, industrial, and
        oil and gas.  We intend to continue to seek out acquisitions which
        would be complementary to these core businesses."


        CONTACT: Watts Industries Inc.
                 Kenneth J. McAvoy, 508/688-1811



Monaco Finance reports year-end and fourth quarter 1995
results


            DENVER, CO -- April 1, 1996 -- Monaco Finance, Inc.
        (Nasdaq National Market: MONFA), a leader in sub-prime automobile
        financing, today announced results of operations for its fourth
        quarter and fiscal year ended December 31, 1995.  

        
            For the year ended December 31, 1995, the company reported that
        its net income from continuing operations was $537,000, or $.10 per
        share, on revenues of $14.0 million.  After a restructuring charge
        of $1.9 million relating to the previously announced discontinuation
        of the company's CarMart division, which sold and financed used
        cars, the company reported a net loss for 1995 of $1.3 million, or
        ($.24) per share.  For 1994, the company's net income from
        continuing operations was $731,000, or $0.13 per share, on revenues
        of $8.1 million.  The company's net income was $1.1 million, or $.19
        per share, for 1994.  
   

     
            For the fourth quarter of 1995, the company reported a net loss
        from continuing operations of $182,000, or ($.03) per share, on
        revenues of $3.6 million.  After the fourth quarter share of the
        restructuring charge of $1.6 million, the company reported a net
        loss for the fourth quarter of 1995 of $1.8 million, or ($.29) per
        share. For the fourth quarter of 1994, the company's net income from
        continuing operations was $169,000, or $.03 per share, on revenues
        of $2.7 million.  The company's net income was nil for the fourth
        quarter of 1994.  

        
            The company's net interest margin (interest income less interest
        expense) improved to $8.8 million in 1995 from $5.7 million in 1994.
        


            As of December 31, 1995, the gross carrying value of the
        company's automobile receivables portfolio was $67.3 million, up
        from $43.9 million as of December 31, 1994.  As of December 31,
        1995, the company's loan loss reserves were $6.7 million, comparedto
        $2.6 million as of December 31, 1994.  Cash and cash equivalents
        totaled $7.2 million as of December 31, 1995, up from $27,000 as of
        December 31, 1994.  
        


            Morris Ginsburg, Chairman, President and Chief Executive Officer
        of Monaco stated, "Our primary goal for 1996 is to increase, by
        purchases through our dealer network, the number and amount of high
        quality, low discount automobile installment contracts of the type
        for which only the most creditworthy sub-prime borrowers are
        eligible.  To achieve this goal we intend to add sales
        representatives in the states we currently are servicing and add new
        territories in order to substantially increase our dealer base.  We
        also intend to employ our substantial capital resources -- including
        funds freed up by discontinuing CarMart -- to further increase our
        portfolio of quality automobile receivables.  We also intend to
        evaluate strategic opportunities that may exist in the sub-prime
        automobile finance industry."  

        
            "Monaco has developed new loan programs and management systems
        to improve the quality and performance of our portfolio,"  Mr.
        Ginsburg added.  "We are continuing to refine our underwriting
        criteria and to improve our collection techniques.  We soon will
        inaugurate a sophisticated credit modeling system that we developed
        in 1995, and by the end of the second quarter of 1996 plan to fully
        implement our recently-installed computerized predictive dialing
        system.  All of these actions will make Monaco stronger than ever."

        
            Mr. Ginsburg further commented, "In 1995 we saw the economy
        weaken and delinquencies increase, and decided to tighten credit
        standards resulting in the purchaseof fewer loans than in our 1995
        business plan.  Our goals for 1996, in addition to increasing our
        portfolio of Contracts, include reducing delinquencies and charge-
        offs by concentrating on higher-quality receivables."  
   

     
            Monaco Finance, Inc. is a leading indirect lender to car buyers
        who cannot obtain bank financing.  Under its specialized automobile
        finance programs it acquires sub-prime automobile installment sales
        contracts, primarily from franchised car dealerships.


        
                             Monaco Finance, Inc.
                             Financial Highlights
                                (unaudited)
                     Consolidated Statements of Operations
                                  
        (dollars in              Twelve months ended   Three months ended
        thousands, except per       December 31,          December 31,
        share amounts)
                              1995        1994      1995         1994
           Revenues                                                  
        Interest                $12,501      $7,144    $3,277       $2,381
        Fee and other income      1,523         949       312          274
         Total revenues      14,024       8,093     3,589        2,655
                                                                      
        Costs and expenses                                                
        Provisions for credit  
         losses                   1,635       1,094       344          440
        Operating expenses        7,845       4,337     2,500        1,328
        Interest expense          3,686       1,494     1,035          617
         Total costs and     
          expenses           13,166       6,925     3,879        2,385
        Income (loss) from                                                
         continuing operations    
         before taxes               858       1,168     (290)          270
                                                                      
        Income tax expense        
         (benefit)                  321         437     (108)          101
                                                                    
        Income (loss) from   
         continuing operations      537         731     (182)          169
                                                                      
        Income (loss) from                                                  
         discontinued                                                      
         operations net of   
         applicable income taxes   (720)        331     (476)        (145)
                                                                        
        (Loss) on disposal of                                               
         discontinued business                                             
         net of applicable
         income taxes            (1,158)           -   (1,158)            -
                                                                        
        Net income (loss)       ($1,341)      $1,062  ($1,816)         $24  
                                                                        
        Net earnings (loss)                                                
         per share
        Earnings (loss) from   
         continuing operations    $0.10       $0.13    ($0.03)       $0.03  
        Earnings (loss) from  
         discontinued operations  (0.13)        0.06    (0.08)       (0.03)
        
        (Loss) on disposal of                                               
         discontinued  
         operations               (0.21)           -    (0.18)            -
        Net earnings (loss)  
         per share               ($0.24)       $0.19   ($0.29)        $0.00
        
                                                                       
        Weighted average      
        shares outstanding    5,603,689    5,467,586  6,368,990   5,200,150
        
        
                             Monaco Finance, Inc.
                            Financial Highlights
                                 (unaudited)
                                  
                       Operating Highlights and Ratios
        
                           Twelve Months ended     Three months ended
                               December 31,            December 31,
                            1995        1994        1995       1994
                                                                
        Contracts from                                                  
         Company dealerships    1,480       1,606         302        382
        Contracts from          
         Dealer Network         4,892       2,880         880        851
          Total contracts       6,372       4,486       1,182      1,233
        Dollar Value of                                                 
        Contracts Acquired $53,572,424  $38,611,549  $9,784,739  $10,539,101
        Average Amount   
         Financed              $8,407      $8,607      $8,278     $8,548
        Operating Expenses                                              
         as a % of Revenues       56%         54%         70%        50%
        Net Interest Margin                                             
        % - Annualized          16.2%       17.1%       14.8%      17.3%
        
                  Condensed Consolidated Balance Sheet
        
        (dollars in thousands)                             December 31,
                                                   1995         1994
             Assets                           
        Cash and cash equivalents                     $7,248          $27
        Restricted cash                                3,695        1,594
        Finance receivables - net of allowance                           
         for doubtful accounts of $6,662 (1995)
         and $2,559 (1994)                            60,668       41,324
        Repossessed vehicles held for sale             2,461          408
        Income tax receivable                             24        
        Deferred income taxes                             43          123
        Furniture and equipment, net of                                  
         accumulated depreciation of $701
         (1995) and $356 (1994)                        1,615          945
        Net assets of discontinued operations          1,838        2,912
        Other assets                                   1,759          918
                                                 $79,351      $48,251
        Total assets
        Liabilities and Stockholders' Equity
        Notes Payable  - Citicorp                    $     -       $3,090
        Accounts payable                                 453          533
        Accrued expenses and other liabilities            93           87
        Income taxes payable                               -          549
        Convertible subordinated debt                  1,385        2,615
        Senior subordinated debt                       5,000        5,000
        Auto receivable-backed notes                  49,670       22,205
         Total liabilities                        22,750       14,172
         Total stockholders' equity               56,601       34,079
         Total liabilities and stockholders'
          equity                                 $79,351      $48,251
        
        
        CONTACT: Monaco Finance Inc., Denver
                 Irwin Sandler, Executive Vice President, 303/592-9411
                                 or
                 MWW/Strategic Communications, Inc.
                 Tel. (201) 507-9500
                 Media:  Michael W. Kempner - (mkempner@mww.com)
             Investors:  Ronald Stack - (rstack@mww.com)



Miles Homes announces earnings
        


            CHESHIRE, Conn. -- April 1, 1996 -- Miles Homes,
        Inc.  (NASDAQ NMS:MIHO) today reported a net loss of $27.7 million,
        or $2.56 per share for the year ended December 31, 1995, as compared
        to a net loss of $9.9 million or $.94 per share for the year ended
        December 31, 1994.  The losses reported for 1995 and 1994 include
        non-recurring charges of $18.0 million and $6.0 million,
        respectively, including restructuring expenses and losses from
        discontinued operations.  
        


            Net loss for the fourth quarter of 1995 was $17.0 million, or
        $1.57 per share, compared to a net loss of $7.7 million or $.73 per
        share for the fourth quarter of 1994.  Losses for the fourth quarter
        of 1995 include non-recurring restructuring charges and losses from
        discontinued operations of $13.5 million or $1.25 per share.  Total
        revenue from continuing operations for the fourth quarter increased
        to $18.0 million from $14.0 million in 1994.  

        
            Miles Homes Services shipped 1,246 homes in 1995 versus 1,018
        homes in 1994, an increase of 22%.  Gross orders received in 1995
        were 3,153 vs.  2,445 in 1994 (a 29% increase).  During the first
        quarter of 1996, the order rate continued to show growth with orders
        taken substantially exceeding 1995 first quarter activity.  
   

     
            As previously reported on November 27, 1995, Miles has decided
        to rapidly phase out of and close down its wholly-owned subsidiary,
        Patwil Homes, Inc.  Patwil had been engaged in the marketing,
        construction and sale of single-family detached homes.  It is
        expected that Patwil will complete its orderly liquidation of
        operations in June 1996.  Peter R. DeGeorge, Chief Executive
        Officer, indicated "although we felt Patwil could be made profitable
        over the next 12 months, we made the difficult decision to close
        that operation in order to protect and preserve the core business of
        Miles Homes.  Miles Homes Services, the 'jewel' of the Company, has
        experienced record first quarter order activity in 1996.  To have
        the Company continue to fund the turnaround of Patwil, which we
        believe could never have matched the return on investment potential
        of Miles Homes Services, would have been a mistake."  

        
            The Company is currently dependent upon cash flow from the sale
        of construction loans to a mortgage finance company for its working
        capital needs.  Losses for the year ended December 31, 1995, and
        write-offs occasioned by the discontinuance of operations of Patwil
        Homes, have caused the Company to violate the minimum tangible net
        worth covenant in the agreement with the mortgage finance company.
        Although a waiver has not been obtained, since being verbally
        notified of the minimum net worth covenant violation, the mortgage
        financing company has continued to purchase construction loans from
        the Company.  Further, management believes that a waiver of the
        covenant can be obtained and that the agreement can be revised based
        on the Company's anticipated operating results.  However, there can
        be no assurance that this will come to pass.  If the mortgage
        financing company should stop purchasing construction loans, a
        serious working capital shortage would result.  

        
            During 1995 the Company's Miles Homes Services subsidiary began
        to move certain operations from Plymouth, MN to Cheshire, CT.  On
        February 7, 1995, Miles sold its corporate facilities in the
        Minneapolis, MN area where operational and administrative functions
        are performed.  For the years ended December 31, 1995 and 1994
        respectively, Miles has recorded restructuring costs of $1.4 million
        and $903,000.  
   

     
            Miles provides building plans, building materials, construction
        monitoring and support services and construction financing to
        customers who act as their own general contractors and assist in the
        building of their own homes.


        
                              MILES HOMES INC.
                   CONSOLIDATED STATEMENTS OF OPERATIONS
        
                           Three Months Ended         Years Ended
                                Dec. 31,                Dec. 31,
                             1995      1994         1995       1994
                                                         
        
        Net housing revenue $16,706,668 $12,107,852  $59,629,566 $55,461,668
        Financial services
         revenue              1,321,822   1,859,002    5,844,483   6,215,809
           Total revenue     18,028,490  13,966,854   65,474,049  61,677,477
        
        Costs and expenses:
         Cost of sales       11,079,426   7,918,494   38,270,146  34,818,866
         Selling              3,524,067   3,128,675   12,971,903  10,592,150
         General &
          administrative      4,087,539   4,057,768   14,164,065  12,645,697
         Provision for credit
          losses                367,000     336,000    1,475,000   1,512,000
         Interest expense     1,591,049   1,757,132    7,557,420   7,726,204
         Other (income)
          expense              (463,989)    796,660     (539,513)     26,323
         Restructuring
          expense             1,357,713     684,986     1,357,713    903,115
        
        Income (loss) from  
         continuing
         operations before
         income taxes        (3,514,315) (4,712,861)
        (9,782,685)(6,546,878)
        Income tax benefit
         (provision)         (1,272,000)  1,174,595    (1,272,000) 1,702,000
        
        Income (loss) from  
         continuing
         operations          (4,786,315) (3,538,266)
        (11,054,685)(4,844,878)
        Discontinued
         operations-Patwil
         Homes Inc.
         tax benefit       
         Income (loss) from  
          operations         (3,959,137) (4,139,043)
        (8,412,717)(5,053,956)
         Estimated loss on
          disposal during the
          phase out period   (8,205,824)         -     (8,205,824)         -
        
        Net income (loss)  $(16,951,276)$(7,677,309) $(27,673,226)
        $(9,898,834)
        
        Earnings per
         common share:
        Income (loss) from
         continuing operations
         before discontinued
         operations        $      (0.44)$     (0.34) $      (1.02) $
        (0.46)
        Income (loss) from
         discontinued
         operations               (1.13)      (0.39)        (1.54)
        (0.48)
        
        Net income (loss)  $      (1.57)$     (0.73) $      (2.56) $
        (0.94)
        
        
        CONTACT:  Miles Homes Inc., Cheshire
                  Herbert L. Getzler, 203/271-0011