TCR_Public/960716.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For:  July 16, 1996



  1. COURT APPROVES SMITH CORONA DISCLOSURE STATEMENT
  2. ELCOTEL ANNOUNCES YEAR END RESULTS...





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COURT APPROVES SMITH CORONA DISCLOSURE STATEMENT; SOLICITATION TO BEGIN AUGUST 2; HEARING SET FOR SEPTEMBER 9


        


            NEW CANAAN, Conn., July 16, 1996 - Smith Corona
        Corporation
reported today that it has received approval from the
        U.S. Bankruptcy Court on three significant motions: the company's
        Disclosure Statement for the second amended Plan of Reorganization;
        the sale of Smith Corona labeler machine manufacturing capability
        and technology to Kroy, Inc.; and the extension of exclusivity to
        the earlier of September 27, 1996 or confirmation of a Plan of
        Reorganization.
        


             The approval of the Disclosure Statement paves the way for
        Smith Corona to commence the solicitation of votes for its Plan of
        Reorganization.  Plan materials and ballots are expected to begin
        mailing on or about August 2; the deadline for ballots is August 30.
        All impaired creditor classes will be entitled to vote on the Plan.
        A September 9 date has been set for the hearing to confirm the Plan.
        


             Ronald Stengel, president and chief executive officer of Smith
        Corona, acknowledged that "We are very pleased to offer a consensual
        Plan which the members of our unsecured creditors' committee have
        approved.  With their support, we anticipate that the Plan will be
        confirmed as early as mid-September, and Smith Corona will emerge
        from Chapter 11 as a smaller but stronger, reorganized company.
        


             "We have made great strides in our 12 months under Chapter 11.
        Manufacturing has been consolidated, excess assets have been sold
        successfully, liquidity improved, bank loans fully repaid, and
        operating expenses reduced to fit current sales activity.  The net
        results of these actions is the availability of more than $10
        million to the estate to repay creditors, and a significantly
        stronger balance sheet."
        


             Under the terms of the Plan, holders of secured claims will
        receive payment in full in cash or any other such treatment as may
        be agreed by the creditor and the reorganized company.  Holders of
        general, allowed unsecured claims, estimated to total approximately
        $25,700,000, will receive pro rata cash distributions from a pool of
        $10,280,000, as well as 85 percent of the common stock in the
        reorganized company, without taking into account the effect of
        warrants.  Unsecured "convenience" claims of $1,500 or less will
        receive cash payments equal to 60 percent of the allowed claim.
        


             The amended Plan also calls for current equity holders to
        receive warrants to purchase new common stock in the reorganized
        company.  The Plan provides for one warrant for every  share of
        common stock outstanding as of August 15, 1996.  Warrants may be
        exercised at any time between  six months and two years following
        the effective date of the Plan.  The exercise price of the warrants
        will be determined, at the earliest, when the company's Plan is
        confirmed; the price will take into account the cash payouts on
        allowed claims, interest and expenses incurred by the class of
        general unsecured creditors
        


CONTACT:  Rivian Bell of Sitrick And Company, Inc., 310-788-2850
        (24 hours), or 800-686-1910 (pager)



ELCOTEL ANNOUNCES YEAR END RESULTS AND A WRITE-OFF OF $1.1 MILLION


        


            SARASOTA, Fla., July 16, 1996 - Elcotel, Inc. (Nasdaq:
        ECTL), a company that develops, manufactures and markets smart
        payphone products and software for both domestic and international
        telephone networks, announced results of operations for the fourth
        fiscal quarter and twelve months ended March 31, 1996.
        


            For the fiscal year ended March 31, 1996, the Company's net
        revenues totaled: $21,462,000, compared with $25,090,000 the
        previous fiscal year.  Net loss was $1,291,000, or ($0.16) per share
        versus a net profit of $3,524,000, or $0.45 per share reported for
        fiscal year 1995.  Fiscal 1996 after-tax results reflect a write-
        down of $1,106,000 for the proposed settlement of the $3,152,000
        debtor obligation of Amtel Communications under a Chapter 11 plan
        for reorganization.
        


            C. Shelton James, Chief Executive Officer of Elcotel, indicated,
        "The fourth quarter net revenues totaling $5,089,000, compared to
        $6,134,000 a year earlier, continued to reflect lower-than-expected
        sales and shipments to our independent owner/operator customers.
        Fourth quarter results reflect a net loss of $1,415,000, or ($0.18)
        per share compared with a net profit of $1,366,000, or $0.17 per
        share for the previous period.  The fourth quarter results reflect
        the after-tax effects of the $1,106,000 Amtel Communications write-
        down in the proposed Chapter 11 reorganization plan.  Adverse
        weather conditions in the Northeast delayed installations and was
        generally disruptive to our independent payphone customers'
        operations.  We believe our customers have been involved in
        extensive 'grooming' of their operations and satisfying growth
        through the redeployment of existing phones.  This has been an
        industry-wide process in fiscal year 1996 and we believe is a major
        factor in the sales shortfall which we experienced in the previous
        six months in our domestic markets.
        


            International shipments in the fourth quarter were far short of
        our expectations due to delays in development of programs in Chile,
        Philippines, Mexico, Canada and Morocco.  Each of these programs
        continue to develop and represent significant opportunities for
        future business.  In the fourth quarter, shipments to international
        customers produced revenues of $553,000 and total fiscal year
        international sales of $1,536,000.  While these results are lower
        than anticipated, the Company continues to be optimistic about the
        potential the international markets represent."
        


            Mr. James continued, "As we indicated previously, fiscal year
        1996 was a year of adjustment and transition, for both Elcotel and
        the industry.  Elcotel continues to be the dominant supplier of
        smart payphones to the independent payphone operators in the U.S.,
        not withstanding the lower than anticipated sales in fiscal year
        1996, and has increased its market share in the independent payphone
        market to over 45%.  The Company initiated new marketing efforts and
        related development programs to address a rapidly changing market in
        the U.S. regulated telephone markets.  The Telecommunications Reform
        Act of 1996 signed in February, 1996 contains a number of provisions
        which will benefit the independent payphone operator and require the
        telephone companies to organize and manage their payphone operations
        on 'an arms length basis' to ensure a more equitable and competitive
        market.  These provisions have stimulated economic expansion in the
        industry and are responsible for a more optimistic outlook over the
        next few years. Initial results for the period ending June 30, 1996
        tend to confirm this with sales of approximately $5,700,000, an
        increase of 12% over the fourth quarter."
        


            Mr. James concluded, "On the international front, we have
        expanded our development capability in support of international
        programs and have added to our product line with improved prepaid
        card phones and systems. We continue to see the international
        markets as holding significantly more growth opportunity and we are
        encouraged by the performance of our technology as we enter these
        markets.  Our alliance with Lucent Technologies continues to show
        promise and present new opportunities with current technology as
        well as the potential for a cooperatively developed technology for
        emerging applications.  We expect to see substantial growth in the
        revenues from international contracts through these efforts in
        fiscal year 1997 and beyond."
        



                               Operating Results
                                  (Unaudited)
        
        (In thousands, except per share amount)
        
                                Fourth Quarter Ended   Twelve Months Ended
                                      March 31               March 31
                                 1996          1995      1996        1995
        Net Revenues           $ 5,089       $ 6,134   $21,462     $25,090
        Net Profit/(Loss)
         before Inc. Taxes    ($ 2,343)      $   434  ($ 2,152)    $ 3,050
        Income Tax Provision/
         (Benefit)            ($   928)     ($   932) ($   861)   ($   474)
        Net Profit/(Loss)     ($ 1,415)      $ 1,366  ($ 1,291)    $ 3,524
        Net Profit/(Loss) per
         common share         ($  0.18)      $  0.17  ($  0.16)      $0.45
        Weighted Avg. number
         of common and common
         equivalent shares
         outstanding             7,941         8,054     7,830       7,847
        

            The statements contained in this release which are not
        historical facts contain forward looking information with respect to
        plans, projections or future performance of the Company, the
        occurrence of which involve certain risks and uncertainties that
        could cause the Company's actual results to differ materially from
        those expected by the Company, including the risk of adverse
        regulatory action affecting the Company's business or the Company's
        customers, competition, the risk of obsolescence of its products,
        the ultimate outcome of the Amtel bankruptcy proceeding and
        uncertainties detailed in the Company's filings with the securities
        and exchange commission.
        


CONTACT:  Tracey L. Gray, President & COO of Elcotel, Inc.,
        941-758-0389, or Tom Ennis of Cameron Associates, 212-644-9560