TCR_Public/960702.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For:  July 2, 1996



  1. OMC ANNOUNCES PRELIMINARY THIRD QUARTER RESULTS
  2. PINNACLE MICRO ANNOUNCES EXTENSION FROM  B OF A
  3. CANISCO RESOURCES EXITS BANKRUPTCY
  4. U.S. CAN RECOVER FROM STUDENT HEALTH LOAN BORROWER DESPITE BANKRUPTCY
  5. EDISTO RESOURCES CORPORATION ANNOUNCES WARRANTS EXERCISED EARLY
  6. SEVEN-UP/RC BOTTLING CO. OF S. CALIFORNIA, INC. CONSUMMATES SALE OF PUERTO RICO SUBSIDIARY
  7. WALTER ROSSI NAMED CEO OF HOME EXPRESS
  8. NORTHWEST TELEPRODUCTIONS, INC. ANNOUNCES EARNINGS
  9. SUN TELEVISION AND APPLIANCES, INC. REPORTS LOSS
  10. BRAUNS FASHIONS CORPORATION FILES PLAN OF REORGANIZATION
  11. NEW WORLD POWER ANNOUNCES FINANCIAL RESULTS





Return To The InterNet Bankruptcy Library Homepage


OMC ANNOUNCES PRELIMINARY THIRD QUARTER RESULTS


        


            WAUKEGAN, Ill., July 2, 1996 - Outboard Marine
        Corporation (NYSE: OM) announced today that it expects to report
        lower sales and earnings for its fiscal 1996 third quarter, which
        ended on June 30.
        


            The company said it expects to report a sales decline of
        approximately 12 percent, to $292 million, compared to the $330
        million reported for the same quarter last year.  "Industry
        shipments of engines and boats to dealers for the first nine months
        of the 1996 model year are down 6 percent and 8 percent
        respectively, far below the industry-wide expectations of 5 to 7
        percent growth in retail sales in the entire 1996 model year.
        Retail sales were strong at the end of last summer and dealers
        purchased heavily in expectation of continuing strong retail volumes
        in the 1996 season," according to Harry W. Bowman, OMC chairman,
        president and chief executive officer. "However, the softer consumer
        demand for boats and engines this year has forced the company to
        reduce production to bring shipments and inventories more in line
        with the weaker demand.  This weaker demand has resulted in reduced
        sales for OMC's fiscal third quarter and for the first nine months
        of the fiscal year, a trend which is expected to continue for the
        balance of the year."
        


            OMC also expects to report a pretax loss of approximately $6
        million, after absorbing $11.9 million in charges associated with
        its international restructuring program, versus pre-tax earnings of
        $31.7 million for the third quarter of fiscal 1995.  "This year's
        third quarter earnings were impacted by lower volumes and
        manufacturing inefficiencies resulting from those lower sales," said
        Bowman.  "Since arriving at OMC roughly a year ago, one of my
        principle concerns has been the company's inability to adjust its
        cost structure to changes in demand.  This problem has clearly
        manifested itself in this year's profit performance, and has led the
        company to embark on an extensive re-engineering effort which will
        begin in our fiscal fourth quarter.  We will continue to implement
        this program during the 1997 fiscal year. This effort is necessary
        to variabilize our costs and to improve earnings and
        competitiveness.  In combination with our investment in the new loan
        emission engine technology and in higher levels of quality of both
        our engines and boats.  OMC will become a more effective competitor
        and a more consistent financial performer in the cyclical worldwide
        marine industry."
        


            Outboard Marine Corporation is a leading manufacturer and
        marketer of marine engines, boats and accessories.
        


CONTACT:  Stanley Main, director, Strategic Planning and
        Investor Relations of OMC, 847-689-5246



PINNACLE MICRO ANNOUNCES EXTENSION FROM BANK OF AMERICA UNTIL JULY 15; SIGNED TERM SHEET WITH FIRST BERMUDA SECURITIES


        


            IRVINE, Calif., July 2, 1996 - Pinnacle Micro, Inc.
        (Nasdaq: PNCL) today announced that Bank of America has extended the
        forbearance period for the repayment of the Company's loan of
        approximately $5 million, which the Bank had previously declared to
        be in default and agreed to forbearance through July 1, 1996.  Bank
        of America has agreed to extend the date of repayment until July 15,
        1996.
        


            Pinnacle Micro is making good progress in its turnaround.  As
        previously announced, the Company is shipping the Vertex 2.6 GB
        optical storage drive and is making progress in obtaining working
        capital.  The Company announces signing of a term sheet with First
        Bermuda Securities Limited for two offshore placements of
        convertible debentures, with closing of the first placement of $10
        million, less fees and expenses, expected on or before July 12, 1996
        and of the second placement for $5 million, less fees and expenses,
        later this year.  Final terms of the placements are subject to
        completing the closing documentation.  Each financing is on a "best
        efforts" basis, which means that it is not guaranteed.
        


            In addition, Pinnacle has obtained necessary approval from
        NASDAQ to complete the two placements, as well as approval from a
        majority of the Company's stockholders.  All stockholders will
        receive written notice of the placements.
        


            Pinnacle Micro, Inc. is a recognized leader in recordable CD
        technology and optical storage systems for general data storage and
        data intensive applications such as network storage, imaging,
        desktop publishing and prepress, as well as emerging applications
        such as digital audio/video editing and commercial multimedia.
        Founded in 1987, Pinnacle Micro, Inc. is headquartered in Irvine, CA
        with offices in North America, Europe and the Pacific Rim.
        


CONTACT:   Megan Morrow, Investor Relations of Pinnacle Micro,
        800-553-7070, x3114, 714-789-3114 (direct), or http://www.pinnaclemicro.com/" target=_new>http://www.pinnaclemicro.com/">http://www.pinnaclemicro.com/
        



CANISCO RESOURCES EXITS BANKRUPTCY


        


            HERSHEY, Pa., July 2, 1996 - Canisco Resources, Inc.
        (Nasdaq: CANR) today announced that it executed a $14.9 million
        credit facility with BNY Financial Corporation completing the final
        requirements to exit bankruptcy.
        


            In an unrelated matter, the Company also announced it has
        reached a negotiated settlement in its lawsuit against Westinghouse
        that was filed in the Court of Common Pleas, Harrisburg,
        Pennsylvania.  The amount of the settlement is confidential per the
        terms of the agreement.
        


            Ralph A. Trallo, President of Canisco Resources, Inc., stated,
        "We are pleased with our new banking arrangement which will reduce
        our interest expense considerably.  Exiting bankruptcy and the
        settlement of the Westinghouse matter will allow management to focus
        on implementation of our Plan of Reorganization and enhancement of
        shareholder value."
        


CONTACT:  Ralph A. Trallo, President of Canisco Resources,
        717-533-6370



COURT RULES UNITED STATES CAN RECOVER $128,000.00 FROM STUDENT HEALTH LOAN BORROWER DESPITE BANKRUPTCY FILING


        


            BOSTON, July 2, 1996 - United States District Court Judge
        Nancy Gertner, in a case filed by the U.S. Attorney, ruled that
        filing bankruptcy does not free a former student from her
        $128,378.39 obligation to the Health Education Assistance Loan
        Program.  United States Attorney Donald K. Stern hailed the decision
        as "a victory for the taxpayer and the Health Education Assistance
        Loan Program which puts opportunities in the health care field
        within reach of all students, regardless of economic resources."
        


            The federal court decision allows the United States to pursue a
        $128,378.39 obligation owed by Gail George of 290 Quarry Street,
        Quincy, Massachusetts.  George took out four Health Education
        Assistance loans during a 3-year period in the mid-1980s to attend
        Boston University Graduate School of Dentistry Medicine.  Judge
        Gertner found George ignored numerous attempts by the United States
        to have her enter into a voluntary repayment arrangement.  When the
        United States commenced legal proceedings to recover on the debt,
        George claimed that a 1992 bankruptcy filing freed her from the
        obligation to repay.  The United States claimed a statute enacted by
        Congress in 1976 prevented the discharge of George's obligation to
        repay.
        


            Judge Gertner agreed with the U.S. Attorney's position and held
        that a Health Education Assistance Loan can be discharged in
        bankruptcy only if a bankruptcy judge finds that it would be
        unconscionable to force a debtor to repay the loan.  Stern stated
        "Judge Gertner correctly found that Congress intended to impose a
        far more stringent repayment obligation on Health Education
        Assistance Loan borrowers than are imposed on other types of student
        borrowers."
       


            Assistant U.S. Attorney Christopher Alberto, Chief of Stern's
        Financial Litigation Unit, handled the litigation.
        


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



EDISTO RESOURCES CORPORATION ANNOUNCES EXERCISE OF WARRANTS PRIOR TO EXPIRATION DEADLINE


        


            HOUSTON, July 2, 1996 - Edisto
Resources Corporation

        (AMEX:  EDT) today announced that 917,920 of its outstanding
        Warrants were exercised prior to the June 28, 1996 expiration date.
        These Warrants were issued in connection with the consummation of
        Edisto's bankruptcy on June 29, 1993 and entitled the holder to
        purchase Edisto common stock for $9.74 per share.  After the
        exercise of the Warrants, Edisto has 13,843,666 outstanding shares
        of common stock which trade on the American Stock Exchange.
        


            Edisto received $8.9 million from the exercise of the Warrants
        which adds to its existing working capital.  At March 31, 1996, the
        company had $38.3 million of cash and cash equivalents and $19.2
        million of assets from risk management activities, which is
        primarily cash on deposit with established brokerage firms and
        counterparties.
        


            Edisto Resources Corporation's consolidated activities include
        (i) natural gas marketing which is conducted through its subsidiary,
        Energy Source, Inc., and (ii) oil and gas exploration and
        production, which is conducted through its 73 percent interest in
        Convest Energy Corporation, and independent oil and gas company
        listed on the American Stock Exchange.
        


CONTACT: Jerry L. McNeill, vice president of Edisto Resources
        Corporation, 713-782-0095



SEVEN-UP/RC BOTTLING COMPANY OF SOUTHERN CALIFORNIA, INC. CONSUMMATES SALE OF PUERTO RICO SUBSIDIARY



           VERNON, Calif., July 2, 1996 - Seven-Up/RC Bottling
        Company of Southern California, Inc.
announced that it consummated
        the sale of the stock of its Puerto Rico subsidiary, Seven-Up/RC
        Bottling Company of Puerto Rico, Inc., to an investor group led by
        Center Street Capital Partners, L.P. of Little Rock, Arkansas, and
        including certain members of the current management of Seven-Up/RC
        Puerto Rico, for approximately $74 million.  As previously
        announced, the net proceeds from the sale of the Puerto Rico
        subsidiary that are expected to be distributed pursuant to the
        Company's First Amended Plan of Reorganization to holders of the
        Company's 11 .5% Senior Secured Notes due 1999 ($140 million
        principal amount) is $55 million.  The bankruptcy court has
        scheduled a confirmation hearing on the Company's First Amended Plan
        of Reorganization for August 2, 1996.
        


            Seven-Up/RC Bottling Company of Southern California, Inc. is one
        of the largest independent manufacturers and distributors of
        beverage products in the United States, with annual sales (exclusive
        of its Puerto Rico subsidiary) of $314 million in the fiscal year
        ending December 31, 1995.
        


CONTACT:  Edward Whiting of Whitman Heffernan Rhein & Co., for
        Seven-Up/RC Bottling Company of Southern California, Inc.,
        213-267-6233



WALTER ROSSI NAMED CEO OF HOME EXPRESS


        


            NEWARK, Calif., July 2, 1996 - Mr. Walter Rossi has been
        elected President and Chief Executive Officer of href="chap11.home.html">Home Express, Inc.,
        the Newark, California-based chain of Home Furnishings Superstores,
        effective August 5th.  He will continue to serve as a member of the
        Board of Directors.  He succeeds Mervyn Weich, who will continue to
        direct the Company in its Chapter 11 proceedings as Chairman of the
        Board.  Aaron Dix, Acting President, has been elected Executive Vice
        President for Home Express.
        


            Mr. Rossi, 54, joins Home Express from the Phillips-Van Heusen
        Retail Group, where he served as Chairman of its chain of 900 outlet
        stores, whose brands include Van Heusen, Izod, G.H. Bass, Gant and
        Geoffrey Beene.
        


            Prior to Phillips-Van Heusen, Mr. Rossi was President and CEO of
        Mervyn's, where he spent 16 years.  During that time, Mervyn's grew
        from 25 to 250 stores increasing from $250 million to $4.2 billion
        in sales.
        


            "With the appointment of Walter Rossi as CEO, we have now
        assembled an exceptional management team that will spearhead Home
        Express' turn-around and position the Company for future growth,"
        said Mervyn Weich.
        


            "Home Express has a strong franchise with consumers.  With a
        sharpening of its merchandise focus and the implementation of new
        operating efficiencies, I am confident that we will return the
        Company to profitability," Mr. Rossi said.
        


            Mr. Rossi began his career at Abraham & Strauss, where he spent
        12 years in merchandising and store operations.  He is a graduate of
        Boston College.
        


            Walter Loeb, a well-known retail expert and President of Loeb &
        Associates, Inc., stated that: "Walter Rossi is a dynamic merchant
        with a sense of urgency.  He is a welcome addition to the Home
        Express team. Moreover, Walter's presence will allow Mervyn Weich as
        Chairman to focus on the strategic formulation of the Company's
        Chapter 11 reorganization plan."
        


CONTACT:  Mervyn D. Weich, Acting CEO of Home Express,
        510-608-4730



NORTHWEST TELEPRODUCTIONS, INC. ANNOUNCES EARNINGS


        


            MINNEAPOLIS, July 2, 1996  - NORTHWEST TELEPRODUCTIONS,
        INC. (Nasdaq: NWTL) announced today that, consistent with its
        announcement in early April, the Company's results for its fiscal
        year ended March 31, 1996 reflect a substantial operating loss and
        significant reorganization charges and write-offs.  The Company
        reported a loss before taxes of approximately $2,850,000 which
        included before tax reorganization charges and goodwill write-offs
        aggregating approximately $1,503,000.
        


            John G. Lindell, Chairman and interim CEO, commented that as
        part of the Company's reorganization it was determined that it was
        appropriate at this time to write off goodwill of $1,060,330
        applicable to the purchase of the Company's Chicago subsidiary in
        fiscal 1990.  The Company also noted that the loss for fiscal 1996
        included $443,000 of severance and other charges of which $333,000
        represents severance costs and the remaining $110,000 covers actual
        and estimated costs for consulting services and legal services
        relating to the Company's reorganization.
        


            The Company also explained that selling, general and
        administrative expenses for its fourth quarter and its fiscal year
        ended March 31, 1996 include the expensing of $203,000 of costs
        previously capitalized in connection with the proposed purchase and
        renovation of a building in Chicago to relocate the Company's
        production facility.  These plans were deferred because of the
        Company's adverse operating performance in fiscal 1996.
        


            Presently, the Company is not in compliance with certain
        financial covenants under its bank loan agreements, but it currently
        is in discussions toward obtaining appropriate relief or waiver from
        its lender.  The lender, therefore, is entitled to accelerate
        payment, should it choose to do so.  Management presently is
        actively pursuing several alternative financing opportunities that
        would provide greater borrowing flexibility and allow for increased
        borrowing against its available collateral.  Since April 1, 1996,
        Mr. Lindell has stepped in as interim CEO to being reorganizing the
        Company and to assist in returning it to profitability while
        restructuring its financing.  The Company plans to name a permanent
        CEO in the next few months.
        


            Northwest Teleproductions, Inc., with facilities in Minneapolis,
        Chicago and Dallas, is a full service videotape and film production
        company that provides production services and produces shows for
        cable television and electronic retailing.
        



                        NORTHWEST TELEPRODUCTIONS, INC.
                             RESULTS OF OPERATIONS

        
                                Three      Three
                                Months     Months        Year       Year
                                Ended      Ended         Ended      Ended
                               March 31,  March 31,     March 31,  March 31,
                                 1996       1995          1996       1995
        
        NET SALES            $2,686,923  $3,205,336  $12,509,041 $13,203,986
        COSTS AND EXPENSES:
         Cost of products
          and services sold   2,870,728   2,503,416   10,733,791   9,888,492
         Selling, general
          and administrative    891,991     631,198    2,707,709   2,542,140
         Goodwill impairment
          charge              1,060,330          --    1,060,330          --
         Severance and
          other charges         443,000          --      443,000          --
         Litigation settlement       --          --      100,000     281,852
         Interest               123,273     100,678      487,770     379,736
        --                    5,389,322   3,235,292   15,532,600  13,092,220
        --                   (2,702,399)    (29,956)  (3,023,559)    111,766
        OTHER INCOME             11,226     (13,660)      58,582      44,567
        EARNINGS (LOSS) BEFORE
         TAXES ON INCOME     (2,691,173)    (43,616)  (2,964,977)    156,333
        TAXES ON INCOME
         (INCOME TAX CREDIT)   (439,000)     22,000     (549,000)    105,000
        NET EARNINGS (LOSS) ($2,252,173)   ($65,616) ($2,415,977)    $51,333
        NET EARNINGS (LOSS)
         PER SHARE               ($1.66)      ($.04)      ($1.78)       $.03
        

CONTACT:  Jim Steffen of Northwest Teleproductions, Inc.,
        612-835-4455


SUN TELEVISION AND APPLIANCES, INC. REPORTS FIRST QUARTER RESULTS - RESTRUCTURING CHARGE



            COLUMBUS, Ohio, July 2, 1996  - Sun Television and
        Appliances, Inc. (Nasdaq-NNM: SNTV) today reported a net loss of
        $4.6 million, or $.26 per share, for the first quarter ended June 1,
        1996, compared with net income of $.21 million, or $.01 per share
        for the year earlier first quarter ended May 27, 1995.  First
        quarter results included a one-time restructuring charge of $2.0
        million, or $.07 per share, principally related to severance pay.
        Net sales and service revenues for the first quarter ended June 1,
        1996 were $153.7 million, compared to $164.5 million recorded in the
        year earlier first quarter.  Comparable store net sales and service
        revenues were $136.8 million and $165.9 million, for the fiscal
        first quarters ended June 1, 1996 and May 27, 1995, respectively.
        The Company's gross margin as a percent of sales for the quarter
        ended June 1, 1996 was 24.2%, compared with 25.3% recorded in the
        year earlier first quarter ended May 27, 1995.  Selling, general and
        administrative expenses were 27.2% of sales in the first quarter
        1996, compared with 24.6% of sales for the comparable year earlier
        period ended May 27, 1995.
        


            James R. Copitzky, President and CEO, commented, "There are a
        number of factors which negatively impacted the first quarter, which
        was a difficult one for the entire consumer electronics and
        appliances industry.  Continued weakness in consumer spending, lower
        television, computer and appliance demand coupled with intense
        promotional activity all contributed to the quarterly results.  In
        addition, over the last twelve months we have experienced a downward
        trend in margins on televisions and computers.  SG&A expenses were
        up principally as a result of higher fixed costs as a percent of
        sales and increased promotional expenses including advertising.
        These factors, combined with the continuation of competitor entries
        into Sun's major markets, resulted in a decline in comparable store
        sales and earnings for the quarter.
        


            "In response to these factors, we recently announced new
        leadership in the critical areas of buying, marketing and finance.
        We have also just completed the restructuring of the buying,
        marketing and logistics organizations, as well as field and store
        operations.  These actions resulted in the elimination of over 60
        management positions.  We are evaluating our entire operating
        structure, focusing on further expense reductions and improving
        operating efficiency.  We expect these actions will have a very
        positive impact on the reduction of overhead expenses, more than
        offsetting the charges we have taken in the first quarter. While the
        decisions we are making today are extremely difficult, we believe
        these actions are necessary to improve our competitive position and
        profitability.
        


            "Furthermore, we are in the process of an in-depth analysis of
        individual store and market performance to ensure that we are
        earning an acceptable rate of return in each location.  In
        conjunction with this analysis, we are evaluating a number of
        potential new markets which fit our single store strategy and which,
        we believe, will provide higher rates of return on investment.  Our
        new store in Charleston, West Virginia, which opened in early June,
        has exceeded our expectations and reflects the legitimacy of this
        new strategy."
        


            Sun Television and Appliances, Inc. is a leading specialty
        retailer of high-quality, brand-name consumer electronics, home
        appliance and office products.  The Company operates 48 stores in
        Ohio, Pennsylvania, New York, West Virginia and Kentucky.
        



                        SUN TELEVISION AND APPLIANCES, INC.
                              STATEMENT OF INCOME

                      (In thousands except per-share amounts)
        
                                               For the Quarter Ended
                                                 June 1,       May 27,
                                                  1996          1995
        
        Net sales and service revenues           $153,659      $164,480
        Cost of sales                             116,502       122,841
          Gross profit                             37,157        41,639
        Selling, general and
          administrative expense                   41,825        40,435
        Amortization of intangibles                   123           123
          Income from operations                   (4,791)        1,081
        Interest income                               175           236
        Interest expense                           (1,057)         (963)
        Restructure Charge                         (2,000)          ---
        Income before income taxes                 (7,673)          354
        Income taxes                               (3,085)          143
          Net income                             $ (4,588)     $    211
        Net income per share                     $   (.26)     $    .01
        Weighted average number
          of common and common
          equivalent shares                        17,434        17,484
        

                        SUN TELEVISION AND APPLIANCES, INC.
                              STATEMENT OF INCOME

                    (In thousands except per-share amounts)
        
                                               For the Quarter Ended
                                                 June 1,       May 27,
                                                  1996          1995
        
        Net sales and service revenues           $153,659      $164,480
        Cost of sales                             116,502       122,841
          Gross profit                             37,157        41,639
        Selling, general and
          administrative expense                   41,825        40,435
        Amortization of intangibles                   123           123
          Income from operations                   (4,791)        1,081
        Interest income                               175           236
        Interest expense                           (1,057)         (963)
        Restructure Charge                         (2,000)          ---
        Income before income taxes                 (7,673)          354
        Income taxes                               (3,085)          143
          Net income                             $ (4,588)     $    211
        Net income per share                     $   (.26)     $    .01
        Weighted average number
          of common and common
          equivalent shares                        17,434        17,484
        

                         SUN TELEVISION AND APPLIANCES, INC.
                             CONDENSED BALANCE SHEETS

                                (In thousands)
        
        Assets                                   6/1/96          3/2/96
          Current assets
        
          Cash and cash equivalents             $  3,051        $ 13,583
          Receivables                             19,136          18,943
          Merchandise inventory                  140,347         114,777
          Other current assets                    14,445          14,019
        
          Total current assets                   176,979         161,322
        
          Property and equipment, net            101,467         100,563
          Deferred income taxes                    7,927           8,410
          Intangible assets                       14,924          15,047
        
        Total assets                            $301,297        $285,342
        
        Liabilities and Stockholders' equity
        
          Current liabilities
        
          Short-term borrowings                 $  5,000             ---
          Accounts payable                        42,522        $ 20,100
          Current portion of deferred revenue     17,595          18,089
          Other liabilities                       22,215          27,365
        
          Total current liabilities               87,332          65,554
        
          Capitalized lease obligations           14,564          14,651
          Long-term debt                          30,000          30,000
          Deferred revenues, noncurrent           20,595          21,621
          Stockholders' equity                   148,806         153,516
        
        Total liabilities and
          stockholders' equity                  $301,297        $285,342


CONTACT:  James R. Copitzky of Sun Television and Appliances, Inc.
        614-492-5600, or Melodye Demastus of Melrose Consulting, 614-771-
        0860


BRAUNS FASHIONS CORPORATION FILES PLAN OF REORGANIZATION


   

    
            MINNEAPOLIS, July 2, 1996 - Braun's Fashions Corporation
        (Nasdaq-NNM: BFCI) announced today that the Company and its wholly
        owned operating subsidiary, Braun's Fashions Inc., filed chapter 11
        reorganization petitions in the United States Bankruptcy Court for
        the District of Delaware.  In connection with the bankruptcy filing,
        Braun's received approval of a number of first-day motions including
        approval from the Bankruptcy Court for an interim debtor-in-
        possession financing facility with Norwest Bank to ensure that the
        Company can continue operating in the ordinary course of business.
        


            The Company is also seeking to reject at least 40 store leases.
        The losses experienced by these 40 store locations has had a
        significant negative impact on the Company's cash flow.  "Our
        reorganization provides us with an opportunity for relieving the
        Company of a significant number of unprofitable stores, and allows
        the remaining healthy stores to be even more competitive in the
        marketplace," said Nicholas H. Cook, Chairman and CEO.
        


            With a core group of profitable stores and a new $10 million
        working capital facility, Braun's expects to operate its business
        without any major interruption.  The Company expects to file a plan
        of reorganization within the next few weeks.  Mr. Cook commented
        that, "Braun's will take every necessary step to emerge quickly from
        its chapter 11 reorganization as a strong and financially viable
        corporation."
        


            Braun's Fashions Corporation, based in Minneapolis, Minn., is a
        regional retailer of women's fashions that currently operates 221
        stores in 22 states, primarily in the Midwest and Pacific Northwest.
        


CONTACT:  Stephen W. Clark, Vice President and Chief Financial
        Officer, 612-551-5106



NEW WORLD POWER ANNOUNCES FINANCIAL RESULTS FOR 1995 AND ITS CONTINUING PROGRESS IN RESTRUCTURING THE COMPANY'S OPERATIONS


        


            LIME ROCK, Conn., July 2, 1996 - The New World Power
        Corporation (Nasdaq-NNM: NWPC) announced today that its 1995
        operations resulted in a net loss of $41,319,955 as compared with a
        1994 net loss of $7,503,691.  On a per share basis, the net loss
        increased from $.90 in 1994 to $3.97 in 1995.  The operating loss
        was $8,498,239.  A larger portion of the 1995 loss was a $24,431,410
        impairment charge caused in part by the Company's plan to sell off
        operating projects and some projects under development and to wind
        down the operation and development of other projects to satisfy its
        debt requirements.
        


            The $24,431,410 impairment charge reflects the estimated
        difference between the Company's carrying value of assets and
        investments held for sale, and the estimated net realized value.
        Also included in the 1995 results is an equity loss on non-
        consolidated affiliates of $4,354,700 and a write off of
        discontinued operations of $1,468,580.
        


            Due to cash used in operating and investing activities as well
        as unforeseen delays in two of its major projects (China and Texas)
        in late 1995, the Company experienced severe liquidity and cash flow
        problems. This necessitated, in early 1996, a revision of the
        Company's business plan calling for certain core and non-core asset
        sales, significant overhead and other cost reductions, and a
        restructuring of the Company's secured debt with its two principal
        lenders.
        


            In January 1996, the Company adopted a new business plan, key
        elements of the business plan include:
        


            Restructuring its two secured loans in contemplation of this
        business plan.
        


            Refocusing on a selected, limited number of economically
        feasible development projects and deferral of any new business
        ventures until the Company improves its financial position.
        


            Sale of existing hydroelectric projects currently under
        development or construction, with the exception of its investment in
        China which the Company views to be a strategic geographical
        position.
        


            Reduction, where possible, of the Company's ownership interest
        in operating wind farms, as well as its wind farms under development
        in non-strategic geographical areas.
        


            Use of proceeds from the sale of these investments to meet its
        current and near-term debt service requirements.
        


            Pursuing future development of large scale wind farm projects in
        countries where the Company has an established presence, such as
        Mexico, Ireland and China.
        


            Integration of the Company's wireless business and sale of its
        solar subsidiaries.
        


        Reduction of its administrative staff.
        


            There are numerous risks and uncertainties surrounding
        management's plans, principally the risk that management will not be
        able to sell the investments (or subsidiaries) identified in its
        business plan within the time frame, or for the amounts, required by
        the restructured loan agreement.  There can be no assurance that the
        Company will be successful in implementing this revised plan.
        


            The Company has successfully restructured its loans and is
        proceeding with its primary course of action of asset sales in full
        compliance of its covenants under the restructured loan agreements
        with its principle secured lenders.  Short-term capital needs to
        fund the Company's operations are being made available from an
        escrow account held by one of the lenders, under restructuring,
        thereby sustaining the Company in meeting its obligations.  Pursuant
        to the business plan, the Company is focusing on those core grid and
        wireless power activities that demonstrate the best and most timely
        economic return potential.
        


            Revenues for the year ended December 31, 1995 were $16.4 million
        compared to $22.9 million for the year ended December 31, 1994.  The
        deconsolidation of Photocomm, Inc. (described below) in 1995 was
        offset by additional grid production revenues.
        


            The results of operations for 1995 compared to 1994 reflect
        significant fluctuations resulting from the methods of accounting
        used for the Company's investment in Photocomm.  During the year
        ended December 31, 1994, the Company acquired additional shares of
        common stock and other securities of Photocomm and the Company had
        control of over 51% of Photocomm's voting stock at December 31,
        1994.  Accordingly, the Company consolidated Photocomm into its
        financial statements for the year ended December 31, 1994.
        


            At December 31, 1995, the Company owned 6,612,447 shares of
        Photocomm, representing less than 50% of the voting shares of
        Photocomm. The decrease in the Company's ownership percentage from
        December 31, 1994 results principally from various Photocomm equity
        transactions in which the Company did not participate.  As a result
        of the Company no longer having controlling interest in Photocomm,
        the investment in Photocomm is accounted for under the equity method
        for the year ended December 31, 1995.  The summarized balance sheet
        and statement of operations information for Photocomm as of December
        31, 1995 and 1994 is as follows.
        



                                1995        1994
        Balance sheet:
         Current assets      $7,334,984  $5,556,770
         Total assets        10,361,409   8,081,819
         Current liabilities  2,676,483   1,985,526
         Total liabilities    3,069,579   2,787,397
        
        Statement of operations:
         Sales              $21,765,765 $15,691,847
         Cost of Sales       16,527,670  11,868,453
         Selling, general
          & administration    4,377,383   3,278,093
         Net income             839,889     491,068

        
            The Company's financial statements were prepared assuming that
        the Company will continue as a going concern.  The opinion of Price
        Waterhouse LLP on the financial statements stated that the Company's
        recurring losses from operations and limited capital resources
        "raise substantial doubt about the Company's ability to continue as
        a going concern."  The Company's 1996 Business Plan was adopted to
        deal with this and permit the Company to pursue its most desirable
        core projects.
        


            The Company further reported that it has complied with Nasdaq
        requirement to file its 10K and 10Q for the quarter ended March 31,
        1996 by July 1, 1996, thereby maintaining the Company's listing on
        the Nasdaq National Market System.
        


            The Company focuses exclusively on renewable power generation
        resources, including wind, solar and hydroelectric power, and the
        acquisition and development of renewable power generating facilities
        and the sale of renewable energy products.  In addition to activity
        in the United States, the Company has projects either operating or
        under development in the United Kingdom, Ireland, Costa Rica, Mexico
        and China.
        


CONTACT:  George P. Petrenko, Interim CEO, 860-435-4000, or Hank
        Hermann, 214-871-9445, both of The New World Power Corporation