SHERMAN OAKS, Calif. -- July 8, 1996 -- House of Fabrics Inc.
(HF) said today that it has asked the Court for approval to reduce
the total number of shares to be issued on the effective date of its
reorganization to 5.1 million shares from 13.7 million shares. The
company said that it decided to reduce the total number of shares to
be issued in order to increase the price of each share, thereby
attempting to satisfy certain of the requirements to allow the
company's stock to trade on a recognized exchange or the NASDAQ
National Market System.
The company said that the reduction in the total number of
shares to be issued does not materially affect any creditor or
equity security holder who is entitled to receive common stock in
accordance with the company's third amended plan of reorganization.
The proportion and total value of the stock, warrants or stock
options to be distributed to creditors and equity holders will
remain the same.
The hearing to confirm the company's plan of reorganization is
scheduled for July 10 in Bankruptcy Court in Los Angeles.
CONTACT: Sandra Sternberg of Sitrick and Company, 310-788-2850
LARGO, Fla., July 8, 1996 -- Fountain Pharmaceuticals,
Inc. (OTC Bulletin Board: FPHI) announced today that revenues for
the quarter ended June 30, 1996 were $887,000, more than a threefold
increase over the comparable 1995 period, and net income from
operations was $152,000, compared to $6,000 in the comparable 1995
The Company's CEO, John C. Walsh, said "that the strong
quarterly results were attributable primarily to expanding
acceptance of the Company's products by dermatologists in Northern
European markets, which bodes well for the products' introductions
in larger markets in late 1996 and throughout 1997." He also stated
that the Company's products were finding interest among additional
medical specialists, including podiatrists and long-term care
providers. Finally, he noted that the Company's new R&D facilities
became operational in June and that developmental work on new
projects had commenced. "We have some interesting potentials for
our technology," he said, and "We now have an operational base to
support their pursuit."
For the nine months ended June 30, 1996, as compared with the
comparable nine months of 1995, revenues were $1.5 million, an
increase of 66%, and net income from operations was $127,000, an 88%
increase. Fountain also reported that, in addition to its year-to-
date operating results, the Company had recorded one-time gains of
$337,000 related to the closure of its Chapter 11 process. The
Company noted, however, that similar gains were recorded in 1995,
and therefore, there would be no materially favorable effect from
these factors on year-to-year comparisons.
Fountain Pharmaceuticals, Inc., is a publicly traded company
based in Largo, Florida, that specializes in the application of
encapsulated delivery systems for the pharmaceutical and cosmetic
industries. The company's shares are traded in the "OTC Bulletin
CONTACT: John C. Walsh, CEO, Fountain Pharmaceuticals, Inc.,