Bankruptcy News For - May 9, 1996

  2. Dauphin emerges from bankruptcy
  8. Pinnacle Automation and Alvey Systems first quarter results

Dakotah announces first quarter results quarterly
        income reduced over $100,000 due to bankruptcy of Pacific Linen

            WEBSTER, S.D. -- May 9, 1996 -- DAKOTAH, INC.
        (NASDAQ/NMS: DKTH) announced today the operating results for the
        quarter ended March 31, 1996.  

            For the first quarter ended March 31, 1996, revenues increased
        to $7,405,000 from $6,245,000 in the same period of 1995.  The
        higher revenues are primarily related to a home furnishing industry
        improvement and sales related to Polarfleece products.  

            Net earnings for the three months ended March 31, 1996, were
        $2,000 compared to $70,000 for the same period of 1995.  The decline
        in net earnings was primarily caused by the allowance for bad debt
        related to the April 18, 1996 Chapter 11 bankruptcy filing of
        Pacific Linen.  Pacific Linen
is a west coast specialty retail chain
        based in Bothel, Washington.  

            Gross margin percentages increased slightly to 26.5% in the
        first quarter of 1996 from 26.3% for the same period of 1995.  The
        primary cause of the increase was a decrease in raw materials as a
        percentage of sales but was mitigated by increased depreciation and
        other manufacturing overhead expenses related to new manufacturing

            Troy Jones, Jr., Chief Executive Officer of DAKOTAH, INC.
        stated, "Operationally, profits were equal to expectation.  However,
        the bankruptcy of Pacific Linen significantly impacted our bottom-
        line performance.  I regret that my April 18, 1996 announcement of
        management first quarter expectations was in error, which was also
        the same day as the Pacific Linen bankruptcy filing.  The backlog
        continues to be significantly above 1995 levels."  

            DAKOTAH INC.  designs and manufactures decorative pillows,
        bedroom ensembles, decorative throws, table linens and other
        accessory products.  There are various showrooms nationwide
        including New York, Dallas, Atlanta, Los Angeles and San Francisco.

                                 DAKOTAH, INC.
                            STATEMENTS OF EARNINGS
                       (000'S), EXCEPT PER SHARE AMOUNTS
                                          For the three months ended:
                                            March 31,       MARCH 31,
                                              1996            1995
        Net Sales                           $     7,405      $    6,245
        Cost of Goods Sold                        5,441           4,604
            Gross Profit                      1,964           1,641
        Operating Expenses:                                         
        Selling                                   1,094             926
        General and Administrative                  775             632
                                              1,869           1,558
        Operating Profit                             95              83
        Other Income (Expense), net                 (92)             26
        Earnings Before Income Taxes                  3             109
        Income Tax Expense                            1              39
        NET EARNINGS                     $        2      $       70
        Net Earnings Per Share               $        0      $     0.02
        Weighted Average Common Shares            3,500           3,500

                              DAKOTAH, INC.
                        CONDENSED BALANCE SHEETS
                            (000's) UNAUDITED
                                     MARCH 31, 1996   DEC. 31, 1995
        Cash and Cash Equivalents           $        10      $      477
        Other Current Assets                     15,285          14,674
        Property, Plant & Equipment, net          2,524           2,209
        Other Assets                                775             775
                                             18,594          18,135
        Current Liabilities                $      7,940      $    7,564
        Long Term Obligations, Less
         Current Maturities                       1,132           1,051
        Stockholders' Equity                      9,522           9,520
                                       $     18,594      $   18,135
        CONTACT: Dakotah Inc.
                 Troy Jones, JR., 605/345-4646
                 L.G. Zangani
                 Leonardo Zangani, 908/788-9660

Dauphin emerges from bankruptcy

            NORTHBROOK, Ill. -- May 9, 1996 -- The U.S.
        Bankruptcy Court today confirmed href="chap11.dauphin.html">Dauphin Technology Inc.'s Third
        Amended Plan of Reorganization ("Plan").

            The Plan, which was well received and approved by an
        overwhelming number of the company's creditors and shareholders will
        enable the company to emerge from Chapter 11 Bankruptcy proceedings.

            The provisions of the Plan include a "debt for equity" swap for
        all of the company's pre-petition debt and all of the post-petition
        financing.  In addition, the Plan also provides a mechanism for all
        of the inventory held by Technology Partners, LLC to be turned over
        to the company in an effort to assist the company with the
        manufacturing of its product(s).  Such inventory was originally
        purchased by Technology Partners, LLC in May of 1995 from IBM when
        Technology Partners, LLC acquired IBM's secured claim.  

            The company will now proceed to implement its Business Plan,
        which includes diversification in products and technology via
        strategic acquisitions and partnerships.  The prior acquisition of
        Interactive Controls Inc. ("Intercon") is expected to enable the
        company to expand its products and sales in the industrial markets.
        In addition, the company is planning to promptly begin production of
        its DTR-2, a 2.5 pound palm-top computer capable of wireless
        communication, voice, pen, and keyboard input.  Markets targeted for
        DTR-2 sales include the Department of Defense, health care industry,
        Department of Transportation and others.

            Dauphin's CEO and President, Andrew Kandalepas, has been
        instrumental in rescuing the company prior to and after he joined
        management in November of 1995.  Kandalepas comments, "I am
        extremely pleased with the outcome.  It has been an unbelievable
        challenge and quite an effort.  I am especially happy for our
        shareholders whose interests we all fought so hard to preserve and
        protect."  Kandalepas continues, "This is a new era for the company.
        With the $51 million debt now a thing of the past, we can
        concentrate on our business objectives with more vigor and

            Dauphin stock is publicly traded on the Over-the-Counter
        Electronic Bulletin Board under the symbol DNTK.

        CONTACT:  Dauphin Technology Inc., Northbrook
                  Sheila A. Trendel, 847/559-8443 ext. 206


            PLEASANTON, Calif. -- May 9, 1996 -- href="chap11.hexcel.html">Hexcel
(NYSE/PSE: "HXL") today reported results for the
        quarter ended March 31, 1996.

            Results for the first quarter of 1996 include one month of
        operations of the composites business acquired from Ciba-Geigy
        Limited and Ciba-Geigy Corporation (collectively, "Ciba") on
        February 29, 1996.  Net sales for the quarter were $126.4 million,
        compared with net sales for the first quarter of 1995 of $85.2
        million.  Approximately $27.6 million of 1996 first quarter sales
        was attributable to the acquired business.  Gross margin for the
        1996 quarter was $26.8 million, or 21.2% of sales, compared with
        gross margin for the 1995 quarter of $14.8 million, or 17.4% of

            Hexcel generated net income of $1.8 million in the first quarter
        of 1996, or $0.07 per share, compared with a net loss of $2.5
        million in the first quarter of 1995, or $0.28 per share.  The 1996
        quarter includes business acquisition and consolidation expenses of
        $5.2 million, which resulted from the compensation expense
        associated with stock options granted in 1995 subject to shareholder
        approval and other acquisition-related costs.  Results for the first
        quarter of 1996 also include $1.6 million of interest expense
        attributable to the write-off of capitalized debt financing costs as
        a result of the refinancing of certain credit facilities in
        connection with the acquisition of the composites business from
        Ciba.  Other income of $2.7 million resulted from the receipt of an
        additional $1.6 million in cash in connection with the disposition
        of the Chandler, Arizona facility in 1994, and from the partial
        settlement for $1.1 million of a claim arising from the sale of
        certain assets in 1991.  Results for the first quarter of 1995
        include bankruptcy reorganization expenses of $2.1 million.  

            Commenting on the first quarter results, John J.  Lee, the
        Chairman and Chief Executive Officer of Hexcel, said, "Obviously,
        the acquisition of the composites business from Ciba had an impact
        on sales volumes and related costs, even though the quarterly
        results only reflect one month of operating activity for this
        business.  Apart from the acquisition, the real news from the first
        quarter is the solid improvement in the Company's operating
        performance.  Excluding the results of the acquired business, sales
        were more than $13 million higher in the first quarter of 1996 than
        in the first quarter of 1995, and gross margin continued to improve.
        In fact, gross margin as a percentage of sales reached its highest
        level since the third quarter of 1992.  Overall, Hexcel's operating
        performance continues to improve.  This trend reflects not only an
        improvement in the commercial aerospace market which is very
        important to the Company, but also the benefits of the restructuring
        program that was begun in 1993 and completed in 1995.  More work
        must be done, but Hexcel has demonstrated that it is capable of
        adapting to an ever-changing business environment and taking the
        actions necessary to remain an industry leader."  

            Hexcel went on to announce that its Board of Directors has
        approved a plan for consolidating the Company's operations following
        the acquisition of the composites business from Ciba.  This business
        consolidation program, which is expected to take up to three years
        to complete, will result in a second quarter charge against earnings
        of $32 million.  The total expense of the consolidation program is
        estimated to be approximately $49 million, including the $5.2
        million of expenses incurred in the first quarter of 1996 and
        additional expenses totaling as much as $12 million that will be
        recognized after the second quarter of 1996.  Cash expenditures
        necessary to complete the business consolidation program are
        expected to total approximately $44 million, net of expected
        proceeds from asset sales. The objective of the business
        consolidation program is to integrate acquired assets and operations
        into Hexcel, and to reorganize the Company's research and
        manufacturing activities around strategic centers dedicated to
        select product technologies.  The consolidation program is also
        intended to eliminate excess manufacturing capacity and redundant
        administrative functions.  Specific actions contemplated by the
        consolidation program include the previously announced closure of
        the Anaheim, California facility acquired from Ciba, the closure of
        a portion of the Welkenraedt, Belgium facility, the reorganization
        of the Company's manufacturing operations in France, the
        consolidation of the Company's U.S.  special process manufacturing
        activities, and the integration of sales and marketing resources.
        Management estimates that the consolidation program will reduce the
        Company's workforce by approximately 8% worldwide.  

            As previously announced, Hexcel has executed a definitive
        agreement to acquire the Composite Products Division of Hercules
        Incorporated, and the Company expects to complete this transaction
        by the end of the second quarter.  The acquisition of this business,
        which is subject to various conditions, would result in certain
        modifications to the actions contemplated by the business
        consolidation program.  However, these modifications are not
        expected to have a significant impact on the overall cost or timing
        of the Company's business consolidation program.  Hexcel Corporation
        is an international developer and manufacturer of lightweight, high-
        performance composite materials, parts and structures for use in the
        commercial aerospace, space and defense, recreation and general
        industrial markets.

                    Hexcel Corp. and Subsidiaries
             Condensed Consolidated Statements of Operations
        The Quarter Ended (in thousands, except     March 31,   April 2,
         per share data)                              1996         1995
        Net sales                                   $126,418    $ 85,155
        Cost of sales                                (99,635)    (70,360)
        Gross margin                                  26,783      14,795
        Marketing, general and administrative
         expenses                                    (17,482)    (12,166)
        Business acquisition and consolidation
         expenses                                     (5,211)        --
        Other income, net                              2,697         --
        Operating income                               6,787       2,629
        Interest expense                              (3,633)     (2,363)
        Bankruptcy reorganization expenses               --       (2,125)
        Income (loss) from continuing operations
         before income taxes                           3,154      (1,859)
        Provision for income taxes                    (1,306)       (510)
         Income (loss) from continuing operations      1,848      (2,369)
        Discontinued operations: Loss during
         phase-out period                                --         (112)
        Net income (loss)                            $ 1,848     $(2,481)
        Net income (loss) per share and
         equivalent share:
        Primary and fully diluted:
         Continuing operations                        $ 0.07     $ (0.27)
         Discontinued operations                         --        (0.01)
        Net income (loss)                             $ 0.07     $ (0.28)
        Weighted average shares and
         equivalent shares                            24,685       8,773

           Results for the quarter ended March 31, 1996 include the results
        of the composites business acquired from Ciba for the period from
        March 1, 1996 through March 31, 1996.

        CONTACT:  Hexcel Corp., Pleasanton
                  William P. Meehan, 510/847-9500


            LOS ANGELES, May  9, 1996 - Kerr Group, Inc. (NYSE: KGM),
        today reported a loss from continuing operations applicable to
        common stockholders before unusual items of $3,373,000 or $0.86 per
        common share for the quarter ended March 31, 1996, compared to a
        loss from continuing operations applicable to common stockholders of
        $582,000 or $0.16 per common share for the quarter ended March 31,
        1995.  The Company has restated its results to present as
        discontinued operations the Company's Consumer Products Business,
        the manufacturing assets of which were sold by the Company on March
        15, 1996.

            Net sales from continuing operations decreased to $25,096,000 in
        the first quarter of 1996 from $27,362,000 in the same period in
        1995 primarily due to lower sales of prescription packaging products
        and tamper-evident closures.

            D. Gordon Strickland, President and Chief Executive Officer,
        said the increase in the loss from continuing operations before
        unusual items in the first quarter of 1996, as compared to the first
        quarter of 1995, was primarily due to 1995 cost increases which have
        not been offset by price increases, increased reserves for customer
        rebates and inventory obsolescence, inefficiencies due to reduced
        production and lower sales.

            As previously announced, during the first quarter of 1996 the
        Company recorded an unusual loss of $7,500,000 ($4,500,000 after-tax
        or $1.14 per common share) for the costs associated with the
        restructuring of the Company, which include moving the corporate
        headquarters from Los Angeles, California to Lancaster, Pennsylvania
        and relocating the wide mouth jar operations from Santa Fe Springs,
        California to Bowling Green, Kentucky.  The pre-tax loss consists
        primarily of reserves of $3,000,000 for severance and related costs,
        $2,200,000 for losses on the sublease of two facilities, and
        $1,900,000 for asset retirements.

            In addition to the presently recorded restructuring loss, the
        Company will also incur non-recurring pre-tax losses during 1996 and
        early 1997 associated with the restructuring of approximately
        $2,400,000 ($1,440,000 after-tax or $0.37 per common share)
        primarily related to equipment and personnel relocation costs, and
        inefficiencies related to the relocation of operations.  Accounting
        rules require these costs to be expensed as incurred.

            The Company reported a net gain from discontinued operations of
        $1,431,000 or $0.36 per share for the first quarter of 1996 as
        compared to a net loss from discontinued operations of $12,000 for
        the first quarter of 1995.  The net gain in 1996 includes a pre-tax
        gain of $2,607,000 ($1,564,000 after-tax or $0.40 per common share)
        in connection with the sale of the manufacturing assets of the
        Consumer Products Business. This pre-tax gain has been reduced by
        $5,800,000 of reserves, primarily consisting of $3,800,000 for
        retiree health care and pension expense, $1,000,000 for severance
        and related costs, $500,000 for professional fees and $300,000 for
        asset retirements.

            The relocation of the corporate headquarters and wide mouth jar
        manufacturing operations are progressing on schedule.  The
        restructuring is expected to result in annualized pre-tax cost
        savings of approximately $6,500,000.  These cost savings are
        expected to be substantially realized in 1997.

            In addition to the $14,417,000 received from the sale of the
        manufacturing assets of the Consumer Products Business on March 15,
        1996, the Company expects to receive approximately $16,500,000,
        primarily during the remainder of 1996, from the sale by the Company
        of inventory and the collection of accounts receivable of the
        Consumer Products Business.

            The Company is in discussions with its lenders regarding
        extension of waivers of certain financial covenants, which expire
        May 15, 1996, and the extension of the May 15, 1996 due date of a
        $6,040,000 unsecured note.  The Company's lender indebtedness is

            Kerr, headquartered in Los Angeles, is a major producer of
        plastic packaging products.

                                KERR GROUP, INC.
               Consolidated Statements of Earnings (Loss) for the
                   Three Months Ended March 31, 1996 and 1995
                                 (In Thousands)
                                                    Three Months Ended
                                                         March 31,
                                                    1996           1995
         Net sales                                $25,096        $27,362
         Cost of sales                             22,729         21,029
            Gross profit                            2,367          6,333
         Selling, warehouse, general and
           administrative expense                   6,384         5,886
         Loss on restructuring (1)                  7,500             0
         Interest expense (2)                       1,359         1,129
         Interest and other income                   (100)          (46)
         Loss from continuing operations
           before income taxes                    (12,776)         (636)
         Benefit for income taxes                  (5,110)         (261)
           Loss from continuing operations        $(7,666)        $(375)
         Discontinued Operations:(2)
          Gain on sale of discontinued operations(3) 1,564            0
          Loss from discontinued operations           (133)         (12)
           Net earnings (loss) related to discontinued
            operations                               1,431          (12)
                   Net loss                         (6,235)        (387)
         Preferred stock dividends                     207          207
        Net loss applicable to common stockholders $(6,442)       $(594)
        Net earnings (loss) per common share,
          primary and fully diluted: (4)
            From continuing operations              $(2.00)       $(.16)
            From discontinued operations (2)           .36          .00
               Net loss                             $(1.64)       $(.16)

            (1)  During the first quarter of 1996, the Company recorded an
        unusual loss of $7,500,000 ($4,500,000 after-tax or $1.14 per common
        share) for the costs associated with the restructuring of the
        Company, which include moving the corporate headquarters from Los
        Angeles, California to Lancaster, Pennsylvania and relocating the
        wide mouth jar operations from Santa Fe Springs, California to
        Bowling Green, Kentucky. The pre-tax loss consists primarily of
        reserves of $3,000,000 for severance and related costs, $2,200,000
        for losses on the sublease of two facilities, and $1,900,000 for
        asset retirements.

            (2)  The Company sold the manufacturing assets of its Consumer
        Products Business on March 15, 1996 and, accordingly, has reflected
        the results of this discontinued business separately from continuing
        operations in the above table.  The presentation of this business as
        discontinued operations had no effect on net loss, net loss
        applicable to common stockholders and net loss per common share from
        the amounts previously reported.

            (3)  The gain on the sale of discontinued operations has been
        reduced by $5,800,000 of reserves primarily consisting of $3,800,000
        for retiree health care and pension expense, $1,000,000 for
        severance and related costs, $500,000 for professional fees and
        $300,000 for asset retirements.

            (4)  Weighted average number of common shares outstanding for
        the three months ended March 31, 1996 and 1995 were 3,933,000 and
        3,678,000, respectively.  Fully diluted net earnings per common
        share reflect when dilutive, a) the incremental common shares
        issuable upon the assumed exercise of outstanding stock options, and
        b) the assumed conversion of the Preferred Stock and the elimination
        of the related Preferred Stock dividends.  Antidilution occurred in
        the three months ended March 31, 1996 and 1995.

                                KERR GROUP, INC.
                  Condensed Consolidated Balance Sheets as of
                      March 31, 1996 and December 31, 1995
                                 (In Thousands)
                                        March 31, 1996     December 31, 1995
                                         (Unaudited)        (As Restated)
         Cash and cash equivalents         $5,044                $3,904
         Receivables                        7,906                 7,154
         Inventories                       16,052                17,748
         Prepaid expenses and other
          current assets                    2,566                 3,106
         Current net assets related to
          discontinued operations (1)      16,668                12,847
              Total current assets         48,236                44,759
        Property, plant and equipment, net 43,298                46,818
         Deferred income tax asset         11,222                 8,057
         Goodwill and other intangibles     6,476                 6,983
         Other assets                       7,515                 8,026
         Non-current net assets related to
          discontinued operations (1)           0                 4,854
                                         $116,747              $119,497
        Liabilities and Stockholders' Equity
         Short-term debt                   $6,040                $6,500
         Senior debt due 1997 through 2003
           classified as current (2)       46,460                50,000
         Other current liabilities         23,568                18,597
              Total current liabilities    76,068                75,097
         Accrued pension                   17,182                18,318
         Other long-term liabilities        4,515                 2,175
         Preferred stock                    9,748                 9,748
         Common equity before pension
          adjustment                       17,857                24,299
         Excess of additional pension
          liability over unrecognized prior
          service cost, net of tax
          benefits                         (8,623)              (10,140)
         Total stockholders' equity        18,982                23,907
                                         $116,747              $119,497

            (1)  The Company sold the manufacturing assets of its Consumer
        Products Business on March 15, 1996 and, accordingly, has reflected
        the net assets and liabilities of this discontinued business
        separately in the above table.

            (2)  The Company's outstanding senior debt due 1997 through 2003
        was classified as a current liability because the Company was in
        default of certain financial covenants for which the Company had
        received waivers only through May 15, 1996.

        CONTACT: Geoffrey A. Whynot, Vice President, Finance and Chief
        Financial Officer of Kerr, 310-284-2407


            DENVER, CO - May 9, 1996 - Coram Healthcare (NYSE: CRH) today
        reported revenues of $131.6 million for the first quarter ended
        March 31, 1996, compared to $104.8 million for the first quarter of
        1995.  Net loss for the first quarter was $17.9 million or $0.44 per
        share, compared to net income of $4.6 million or $0.11 per share for
        the first quarter of 1995.

            "Coram continues to show margin improvement and a strengthened
        balance sheet," said Donald J. Amaral, Coram's president and chief
        executive officer.  "Our total cost of service as a percentage of
        net sales declined compared to the fourth quarter, thereby
        increasing gross profit as a percentage of net sales by 1.2%.
        Eliminating the effect of a restructuring benefit which was recorded
        in the fourth quarter of 1995, operating results improved by over $8
        million from the fourth quarter of 1995 to the first quarter of

            "One of the key indicators you monitor in a turnaround is cash
        flow, and I am pleased to say that the company showed strong
        improvement," Amaral said.  "Total recurring cash flow, which was
        negative in the fourth quarter of 1995, was positive each month in
        the first quarter of 1996.  We are making progress in the
        collections area, evidenced by the fact that during the first
        quarter we collected $23 million more than we billed."

            "Our focus is on gaining profitable new business to replace
        unprofitable business," Amaral said.  "Revenues in the first quarter
        of 1996 declined by $22 million from the fourth quarter of 1995," he
        stated.  "Approximately $6.5 million of this amount was due to non-
        strategic or unprofitable businesses sold or discontinued by the
        company.  We have also been eliminating unprofitable contractual
        relationships.  In the first quarter of 1996, patient census
        declined by approximately 7% from the level we saw in the previous
        quarter. Historically, the fourth quarter has been our busiest
        season of the year.  In the fourth quarter of 1995, patient census
        increased by approximately 10% over that recorded in the third

            "Revenue growth is an important goal for Coram," Amaral
        stressed. "We are aggressively pursuing - and winning - contracts
        that allow us to provide high quality care at competitive prices, on
        terms that make business sense for Coram."

        New Contracts, New AIDS Care And Asthma Management Programs,
         Transplant Program Growing

            The company announced that during the first quarter, among other
        pieces of new business, it had signed new national agreements with
        three leading national insurers and managed care organizations
        involving 27.5 million covered lives, completed a national agreement
        with a preferred provider network of self-funded employers covering
        2 million lives, and gained an exclusive contract, which includes an
        asthma disease management program, with a new and rapidly growing
        Medicaid HMO. Coram has been exploring cooperative ventures with a
        number of integrated health care systems, and has begun managing all
        ancillary services for a major Midwestern medical center through the
        Coram Resource Network.

            Coram also introduced an innovative AIDS care management program
        with a leading Blue Cross/Blue Shield plan.  The program offers
        support services and case management for people with HIV/AIDS from
        the time they are diagnosed as HIV positive.

            "New contracts take time to produce a strong referral stream,"
        Amaral commented, "but we are confident that the relationships we
        are developing will be positive for our company, our customers, and
        the patients we serve."

            "The company showed record growth in its transplant program
        during the first quarter of 1996.  Coram is the leading provider of
        homecare for solid organ and bone marrow transplant patients," said
        Donald Amaral.  "We have literally written the book on homecare for
        the transplant patient - who requires very complex care pre- and
        post- transplant, often receiving multiple infusion therapies.  We
        also have the ability to support these patients with oral
        medications through Coram Prescription Services, which has an
        excellent patient support and compliance program for transplant
        patients, which is proving to be a major plus in the marketplace.
        Many transplant patients require lifetime therapy on anti-rejection

            "Coram's focus in the quarters to come will be to continue to
        improve productivity, so we deliver high quality care with
        increasing cost-effectiveness, focus our marketing efforts on the
        complex patient populations where we bring unique value, integrate
        our oral and intravenous drug therapies services, and continue to
        improve the efficiency of our collections," Amaral concluded.

            Coram, headquartered in Denver, is a leading provider of
        alternative site patient care - complex care provided outside the
        hospital. Coram's mission is to work with physicians, managed care
        and other providers to develop new and better models of care for
        those with serious or chronic medical problems.

                          CORAM HEALTHCARE CORPORATION
                 Condensed Consolidated Statement of Operations
                      (In Millions, Except Per Share Data)
                                                 Three Months Ended
        Results of Operations             Mar. 31,   Mar. 31,   Dec. 31,
                                            1996       1995       1995
         Net revenue                      $131.6     $104.8      $153.7
         Cost of service                    98.2       75.6       116.6
          Gross profit                      33.4       29.2        37.1
         Selling, general and
          administrative expenses           25.3       17.9        33.0
         Provision for estimated
          uncollectable accounts             8.7        4.0        12.3
         Amortization of goodwill            4.3        2.8         4.8
         Restructuring benefit             ---         (4.1)      (15.2)
          Operating income (loss)           (4.9)       8.6         2.2
         Non-operating expenses, net       (18.3)      (2.7)      (17.5)
          Income (loss) before income taxes
           and minority interest           (23.2)       5.9       (15.3)
         Provision (benefit) for
           income taxes                     (7.4)      (1.1)        0.1
         Minority interest in net income
          of consolidated joint ventures     2.1        2.4         2.2
         Net income (loss)                $(17.9)      $4.6      $(17.6)
         Net income (loss) per share       $(0.44)     $0.11      $(0.44)
         Weighted average common
          shares outstanding                40.7       40.9        40.4
                            CORAM HEALTHCARE CORPORATION
                        Condensed Consolidated Balance Sheet
                                    (In Millions)
                                                  Mar. 31,   Dec. 31,
                                                    1996       1995
          Cash and cash equivalents                $23.0      $26.7
          Restricted cash                            7.8       25.4
          Accounts receivable, net                 131.8      153.8
          Other current assets                      64.9       50.1
           Total current assets                    227.5      256.0
          Goodwill, net                            339.1      347.7
          Other assets                              73.2       84.1
           Total assets                           $639.8     $687.8
         Liabilities and Stockholders' Equity:
           Accounts payable and other
             current liabilities                   125.0      151.5
           Current maturities of long-term debt    235.7       67.1
              Total current liabilities            360.7      218.6
          Long-term debt                           266.9      439.3
          Other liabilities                          8.6       11.9
          Stockholders' equity                       3.6       18.0
           Total liabilities and
            stockholders' equity                  $639.8     $687.8

        CONTACT:  Susan Witter, Investor Relations Manager of Coram
        Healthcare, 303-672-8718


            LA CROSSE, Wis., May 9, 1996 - LaCrosse Footwear, Inc.
        (Nasdaq-NNM: BOOT) has executed a definitive agreement to purchase
        substantially all of the assets of Red
Ball, Inc.
  The proposed sale
        was approved by the Federal bankruptcy court in Louisville, KY on
        May 6, 1996.  Red Ball, Inc. has been operating under the protection
        of Chapter 11 of the Federal bankruptcy code since February 1996.
        The scheduled closing date is May 20, 1996.  Subject to working
        capital adjustments at closing, the cash purchase price is
        approximately $6.0 million.

            Red Ball, Inc. is a leading designer, manufacturer and marketer
        of branded outdoor sporting and protective footwear, sold primarily
        under the Red Ball(R) brand, used in hunting, fishing and outdoor
        activities. Red Ball's product offerings include hip boots, rubber
        bottom/leather top pac boots and appropriate accessories, totaling
        approximately $16.9 million in revenues in 1995.  In addition, Red
        Ball has developed a line of children's protective footwear, under
        the Red Ball Jets(R) brand with 1995 revenues of $5.8 million.
        Revenues in 1996 will be well below the 1995 level due to temporary
        effects of the bankruptcy.

            LaCrosse also announced, unrelated to the Red Ball, Inc.
        purchase, that it has repurchased all of its outstanding preferred
        stock, consisting of 19,574 shares at their stated value of $100 per
        share. According to Robert J. Sullivan, vice president finance and
        chief financial officer, "The repurchase will have a positive effect
        on earnings per share as the company's current borrowing cost on an
        after- tax basis is less than the preferred stock dividend."

            LaCrosse Footwear designs, manufactures, and markets premium
        quality rubber, leather and vinyl footwear for the sporting and
        outdoor, farm and general utility, occupational and children's
        markets under the LaCrosse(R) and Danner(R) brands and for private
        label customers.

        CONTACT:  Robert J. Sullivan, vice president-finance of LaCrosse
        Footwear, Inc., 608-782-3020


            WORCESTER, Mass. and WEST BRIDGEWATER, Mass., May 9, 1996
        - Cambridge Biotech Corporation
today announced that it has sold its
        reference laboratory business to Boston Biomedica Incorporated.
        Cambridge's reference laboratory provides specialized confirmatory
        testing services, including tests for HIV, HTLV and Lyme Disease to
        physicians, hospitals, blood centers and other reference labs.

            Under the agreement, Cambridge Biotech will receive an up-front
        payment and royalties on revenues from the existing client base.
        Laboratory services will be provided by BBI-North American Clinical
        Laboratories (BBI-NACL), a wholly owned subsidiary of Boston
        Biomedica. BBI-NACL is a nationally recognized leader in reference
        laboratory services in the area of infectious diseases, particularly
        retrovirology, hepatitis and Lyme Disease.

            BBI-NACL founder Dr. Richard C. Tilton commented, "This
        transaction will allow us to expand the menu of tests we currently
        provide to over 800 clients nationwide, while providing Cambridge's
        clients with many additional assays.  With our expertise in
        infectious disease testing, BBI-NACL is the natural choice to
        provide Cambridge's clients with the same level of high quality
        reference laboratory service that they expect."

            Alison Taunton-Rigby, President and CEO of Cambridge, said,
        "With this sale, we move another step forward in executing
        Cambridge's reorganization, and in focusing on our therapeutics
        business in infectious disease and cancer therapeutics as Aquila
        Biopharmaceuticals."  Dr. Taunton-Rigby noted that a key reason for
        selecting BBI-NACL was to provide Cambridge's reference laboratory
        customers with the same high quality service they have been
        receiving from Cambridge, and a seamless transition to the new
        owner.  "BBI-NACL is highly regarded in the industry," she
        continued, "and has had a working relationship with Cambridge since
        the mid eighties, which will facilitate the transition."

            Located in New Britain, CT, BBI-NACL is a licensed and
        accredited clinical reference laboratory for infectious disease
        testing, particularly in the area of retrovirology.  BBI-NACL is a
        wholly owned subsidiary of Boston Biomedica (BBI), a leader in the
        development and manufacture of quality control products and assay
        components used in infectious disease diagnostics including AIDS and
        hepatitis.  Privately owned BBI was founded in 1986, and is
        headquartered in West Bridgewater, MA.  BBI supplies diagnostic
        reagents to research and clinical laboratories, blood banks,
        diagnostic manufacturers and regulatory agencies worldwide.

            Cambridge Biotech Corporation (CBC) is a therapeutics and
        diagnostics company focusing on infectious disease and cancer.  CBC
        filed for protection under Chapter 11 of the United States
        Bankruptcy Code on July 7, 1994, and filed a reorganization plan
        with the bankruptcy court on April 10, 1996.  After bankruptcy court
        approval of CBC's reorganization plan, the assets, liabilities and
        intellectual property of CBC, relating to its biopharmaceutical
        business, will transfer to Aquila Biopharmaceuticals.  Aquila will
        focus on developing and commercializing therapeutic and prophylactic
        vaccines for infectious diseases, and immunotherapeutics for cancer.
        Aquila's therapeutics business will include the Stimulon(TM) family
        of adjuvants and proprietary vaccines.  The most advanced adjuvant,
        QS-21, is in clinical development through corporate and academic
        partners.  The proprietary vaccines include a feline leukemia
        vaccine currently on the market and vaccines in development in the
        areas of tick-borne diseases, streptococcal pneumonia, malaria,
        bovine mastitis and canine Lyme disease.  CBC recently announced the
        sale of its retroviral diagnostic business to bioMerieux Vitek, Inc.
        for $6.5 million in cash, and its enteric diagnostic business to
        Carter-Wallace for $4.5 million in cash.

        CONTACT: Alison Taunton-Rigby, President, Chief Executive Officer
        of Cambridge Biotech Corporation, 508-797-5777, or Richard
        President, Chief Executive Officer of Boston Biomedica, Inc.,
        508-580-1900, or Robert Gottlieb, Senior Vice-President of Feinstein
        Partners, Inc., 617-577-8110

Pinnacle Automation and Alvey Systems announce first quarter
results of operations

            ST. LOUIS, MO -- May 9, 1996 -- Pinnacle Automation,
        Inc. and its wholly owned subsidiary, Alvey Systems, Inc. (the
        Company) today announced record sales for the quarter ended March
        31, 1996.  

            Revenues increased to $80.7 million, a 20% improvement over the
        $67.0 million in revenues reported for the first quarter of 1995.
        The Company reported that earnings before interest, taxes,
        depreciation, amortization and extraordinary losses (EBITDA),
        excluding $13.1 million of non-recurring charges, increased to $4.4
        million for the quarter ended March 31, 1996.  These earnings
        represent an increase in EBITDA of 13% over 1995 first quarter
        results of $3.9 million.  

            New order bookings in the first quarter were $73.5 million, an
        8% increase over the $68.3 million recorded for the same period in
        1995. Order backlog at March 31, 1996 was $139.5 million or 20%
        above the $116.1 million reported at March 31, 1995.  

            After recording a non-recurring $13.1 million charge to
        operations and an extraordinary loss of $2.0 million, the Company
        reported a net loss of $14.5 million for the quarter ended March 31,
        1996.  These non-recurring items are attributable to the
        recapitalization of Pinnacle and the Company's acquisition of
        Weseley Software Development Corp. (Weseley), both of which were
        completed during January 1996.  

            Concurrent with Pinnacle's recapitalization, which was completed
        January 24, 1996, the Company recorded as an extraordinary loss a
        $2.0 million write-off, net of tax benefit, related to the debt
        issuance costs resulting from the early extinguishment of the
        Company's debt.  In addition, the Company recorded a $1.4 million
        charge to operations attributable to the early termination of a
        consulting agreement.  

            In conjunction with the acquisition of Weseley, the Company
        allocated and immediately expensed $11.7 million of the purchase
        price to purchased in-process research and development costs.  

            William R. Michaels, Pinnacle's chairman and chief executive
        officer, stated, "First quarter 1996 revenues reflect increased
        volume over the first quarter of 1995 at each of the Company's
        operating units."  Michaels continued, "The strength in order
        backlog and the demand for the Company's warehouse distribution and
        management systems has provided the basis for this significant
        revenue growth."  

            Michaels further commented, "The higher sales volume and
        continuing productivity and operating improvements at certain of the
        Company's subsidiaries have resulted in increased EBITDA, after
        excluding non-recurring charges."  In conclusion, he noted, "EBITDA
        growth did not keep pace with revenues as the Company incurred
        additional expenses associated with the management reorganization at
        one of its subsidiaries and costs associated with a major consulting
        engagement designed to improve productivity and reduce cycle times
        at its largest subsidiary."  

            The Company is a leading materials handling and information
        systems company, which produces equipment and related software and
        controls that enable manufacturers, distributors and retailers to
        operate their manufacturing plants, distribution centers and
        warehouses more efficiently.  

            NOTE: The statements contained in this release that are not
        historical facts are forward-looking statements.  Actual results may
        differ from those projected in such forward-looking statements.
        These forward-looking statements involve risks and uncertainties,
        including, but not limited to, risks associated with changes in the
        performance of the financial markets, in the demand for and market
        acceptance of the Company's products and services, and in general
        economic conditions.  

            Investors are also directed to other risks discussed in
        documents filed by the Company with the Securities and Exchange

        Alvey Systems, Inc. And Subsidiaries
        Consolidated Statement of Operations
        (dollars in thousands)
        MARCH 31,                              1996         1995
        Net Sales                           $ 80,717     $ 67,008
        Cost of goods sold                    61,235       51,485
        Gross profit                          19,482       15,523
        Selling, general and
           administrative expenses            15,309       11,828
        Research and development expenses        639          438
        Amortization expense                     438          468
        Write-off of purchased research
           and development                    11,700           --
        Other expense (income), net            1,372           48
        Operating income (loss)               (9,976)       2,741
        Interest expense                       2,504        2,074
        Income (loss) before provision
           for income taxes and
           extraordinary losses              (12,480)         667
        Income taxes                              75          341
        Net income (loss) before
           extraordinary losses              (12,555)         326
        Extraordinary losses                   1,993            0
        Net income (loss)                   $(14,548)    $    326
        Earnings per share(1)                      -            -
        (1)  Given the historical organization and capital structure of
        Alvey Systems, earnings per share information is not considered
meaningful or relevant and therefore has not been presented
        Alvey Systems, Inc. And Subsidiaries
        Condensed Consolidated Balance Sheet
         (dollars in thousands)
                                             March 31,    December 31
                                                1996         1995    
        Current assets:
         Cash and short-term investments     $  7,113      $  3,405
         Receivables                           49,844        48,778
         Accumulated costs and earnings
             in excess of billings             12,626         8,317
         Inventories                           17,790        19,686
         Other current assets                   7,399         6,364
         Total current assets                  94,772        86,550
        Property, plant and equipment, net         26,728        25,675
        Other assets                               10,181         6,031
        Goodwill                                   36,650        32,029
                                             $168,331      $150,285
        Liabilities, redeemable preferred stock,
           and net investment of parent
        Current liabilities:
         Current portion of long-term debt   $    334      $  6,915
         Accounts payable                      20,828        24,368
         Accrued expenses                      25,892        27,764
         Customer deposits                     13,808        12,107
         Billings in excess of accumulated
            costs and earnings                 16,152        13,904
         Other current liabilities              2,922         1,893
         Total current liabilities             79,936        86,951
        Long-term debt                            100,717        42,460
        Deferred income taxes and other
           long-term liabilities                   11,991         9,271
        Redeemable preferred stock                      0        27,322
        Net investment of Parent                  (24,313)      (15,719)
                                             $168,331      $150,285
        Alvey Systems, Inc. And Subsidiaries
        Consolidated Statement of Cash Flows
        (dollars in thousands)
        MARCH 31,                                     1996         1995
        Operating Activities:
        Net Income                                 $(14,548)    $    326
        Depreciation                                    716          668
        Amortization                                    438          468
        Write-off of purchased research
           and development                           11,700            0
        Unamortized debt issue costs in
           extraordinary loss                         2,963            0
        Changes in operating assets
           and liabilities                           (3,933)      (5,050)
         Net cash provided by (used for)
            operating activities                 (2,664)      (3,588)
        Investing activities:
        Acquisition of subsidiaries                 (14,972)           0
        Cash payments to dispose of Lewiston           (191)        (306)
        Software developments                          (100)           0
        Additions to property, plant and
           equipment, net                            (1,543)        (459)
         Net cash (used for) investing
            activities                          (16,806)        (765)
        Financing activities:
        Proceeds of borrowings                      102,019       13,625
        Payments of debt and capital leases         (50,343)     (11,241)
        Redemption of preferred stock               (27,600)           0
        Other                                          (898)         (12)
         Net cash provided by (used for)
            financing activities                 23,178        2,372
        Net increase in cash and short-term
           investments                                3,708       (1,981)
        Cash and short-term investments,
           beginning of year                          3,405        2,580
        Cash and short-term investments,
           end of year                             $  7,113     $    599

        CONTACT:  Pinnacle Automation, St. Louis
                  Financial Communications Center, 314/727-6857