IRVINE, Calif., July 18, 1996 - Pinnacle Micro, Inc.
(Nasdaq: PNCL) today announced the sale of approximately $8 million
of an aggregate of $10 million, less fees and expenses, of
convertible notes through an offshore private placement. The sale
of the remaining balance of convertible notes and completion of
closing documents is expected to occur on or before July 22, 1996.
The Company used a portion of the proceeds received to payoff
the Company's outstanding loan from Bank of America, and will use
the remainder for working capital. The Company had been operating
pursuant to a forbearance agreement following Bank of America's
declaration of a default, as previously announced. The Company is
actively engaged in negotiations for a replacement lender.
"This is an important milestone for the Company and a
significant step in our progress," said Roger Hay, chief financial
officer. "This placement indicates confidence on the part of the
investors in the new management team, and in management's ability to
accomplish its goals. In addition to obtaining needed capital, I am
pleased to report that Vertex is now in full production and shipping
in quantities sufficient to fulfill the backlog and current orders."
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, ext. 3114, or direct: 714-789-3114, or
NEW ALBANY, Ind. -- July 18, 1996 -- Robinson
Nugent, Inc. (OTC:RNIC) announced that it anticipates a net loss for
the fourth quarter and year ended June 30, 1996.
The Company stated the following major reasons for the negative
quarter: lower revenues in the U.S. and Europe, severance and
restructuring charges associated with a work force reduction, and
additional equipment depreciation.
Robinson Nugent, Inc. designs, manufacturers, and markets
electronic connectors, integrated circuit sockets and cable
assemblies. Its products are sold throughout the world for use by
manufacturers of computers, networks and telecommunications
equipment, automobiles and industrial controls, and a wide variety
of other products to interconnect components of electronic systems.
CONTACT: Robinson Nugent, Inc., New Albany
Larry W. Burke or Anthony J. Accurso, 812/945-0211
SEATTLE, July 18, 1996 - Immunex Corporation (Nasdaq:
IMNX) today reported a net loss of $6.3 million, or 16 cents per
share, for the quarter ended June 30, on total revenues of $41.6
million. In the second quarter of 1995, the company reported a net
loss of $2.6 million, or seven cents per share, on total revenues of
In the first half of 1996, revenues increased seven percent, to
$83.4 million from $78.1 million for the same period in 1995. The
company reported a net loss of $12.5 million in the six-month period
of 1996, or 31 cents per share. The loss included special charges
of $1.5 million recorded in the first quarter. Excluding these
charges, the loss would have been $10.9 million, or 28 cents per
share, which compares to a loss of $6.6 million, or 17 cents per
share in the first half of 1995.
"Over the past year, we have increased research investments in
order to capitalize on opportunities with new and existing
products," said Ed Fritzky, Immunex chairman and CEO. "In keeping
with the strategy of optimizing our research spending, we have
announced a restructuring of the oncology research agreement with
American Home Products."
R&D expenses for the second quarter were $25.3 million, compared
to $25.0 in the first quarter of 1996, and $20.6 million for the
second quarter in 1995.
As announced yesterday, research expenses under collaborative
agreements are expected to decline beginning in the second half of
1996, as a result of a revised oncology research and development
collaboration between Immunex and its majority shareholder, American
Home Products Corporation (AHP). Effective July 1, Immunex's
obligations to contribute to discovery oncology research at AHP will
be re-set at a maximum $16 million annual rate (adjusted for
inflation in the years after 1996). Immunex paid $13 million under
the prior agreement for the first six months of 1996, and is
projected to pay $8 million under the new agreements for the last
six months of 1996. Thus, Immunex's total contribution for 1996
will be approximately $21 million, versus $26.1 million for the full
year specified under the prior agreement. Immunex's contribution for
1997 will be $16 million, plus 50 percent of shared development
costs if an AHP oncology product is selected for clinical testing.
The prior agreement called for Immunex to contribute up to $38.3
million, provided that this amount was at least 50 percent of AHP's
oncology research and development expenses.
"Our research investments are focused on new opportunities,"
said Fritzky. "During the second quarter, Immunex launched the
first Phase III trial with a new agent for rheumatoid arthritis, the
TNF receptor. We also filed data with FDA seeking approval for
Novantrone(R) (mitoxantrone) in the treatment of hormone refractory
prostate cancer. FDA has stated that Novantrone would qualify for
priority review of six months, since there is no currently approved
chemotherapy for this indication."
Sales, general and administrative expenses were $16.7 million in
the second quarter compared to $14.6 million a year earlier. The
company has increased its investment in marketing and product
promotion to capitalize on new claims and indications for existing
Net sales of oncology products in the quarter increased to $35.3
million from $34.4 million in the second quarter of 1995, and from
$32.0 million in the first quarter of 1996. Increased revenue was
due primarily to increased shipments of Leukine(R) (sargramostim),
the company's flagship biologic drug. Net sales of Leukine were
$13.1 million in the second quarter of 1996, compared to $10.7
million in the first quarter of 1996 and $9.1 million for the second
period in 1995. In the current quarter, a new and convenient five-
vial package was introduced. Distributors increased inventories to
stock the new package configuration.
At the end of the first six months, cash and marketable
securities totaled $40.8 million.
CONTACT: Valoree Dowell or Robin Shapiro, of Immunex,
NEW YORK, July 18, 1996 - Marvel Entertainment Group,
Inc. (NYSE: MRV) announced today that it had made significant
progress during the first half of 1996 in implementing numerous
strategic initiatives intended to strengthen and improve the results
of its publishing and trading card businesses. However, soft
conditions in some markets and slower timing in realizing benefits
from various restructuring programs and other new business
activities have delayed the Company's anticipated improvement in
performance. Meanwhile, Toy Biz, Inc. continues on track.
As a result, Marvel expects to report a loss of approximately
($0.11) per share for the second quarter ended June 30, 1996 as
compared to a net loss of ($0.17) per share for the year ago
quarter. The Company added that it continues to foresee improved
second half results. For the full year 1995, the Company reported a
net loss of ($0.48) per share, but expects to return to
profitability in 1996. Results for the second quarter will be
released in early August.
Recently announced new business activities based on the
continuing worldwide popularity of the Marvel characters include:
Marvel Entertainment Group, Inc. (NYSE: MRV) is a leading
creator, publisher and distributor of youth entertainment products
for domestic and international markets based on action adventure
characters owned by Marvel, licenses from professional athletes,
sports teams and leagues and popular entertainment characters owned
by third parties.
Forward Looking Statements: Statements in this news release
which are not historical are forward-looking statements that involve
risks and uncertainties. Such statements include, without
limitation, Marvel's expectation as to financial performance for the
remainder of 1996. In addition to factors that may be described in
Marvel's Securities and Exchange Commission filings, the following
factors, among others, could cause Marvel's financial performance to
differ materially from that expressed in any forward-looking
statements made by, or on behalf of, Marvel: (i) the failure of fan
interest in baseball to return to traditional levels prior to the
1994 baseball strike, thereby negatively impacting the Company's
baseball card business; (ii) continued weakness in the comic book
market which can not be overcome by the Company's new editorial and
production initiatives in comic publishing; (iii) continued weakness
in the trading card market which can not be overcome by the
Company's new initiative in trading card distribution; (iv) a
decrease in the level of media exposure of the characters on which
Marvel's animated television series are based, resulting in a
corresponding decrease in Marvel's licensing revenues; and (v) the
lack of continued commercial success of properties owned by major
licensors which have granted Marvel licenses for its sports and
entertainment trading card and sticker businesses.
CONTACT: Media: Terry Stewart, Executive Vice President of Marvel
Entertainment Group, Inc., 212-696-0808; or Investor Relations:
Gary Fishman or David Pasquale, Investor Relations, 212-685-6890k, for
Marvel Entertainment Group
WORCESTER, Mass., July 18, 1996 -- Cambridge Biotech
Corporation (OTC BB: CBCXQ) (CBC) announced today that the U.S.
Bankruptcy Court has confirmed the company' plan of reorganization
under Chapter 11. A new company, Aquila Biopharmaceuticals, Inc.,
has been formed to advance the development and commercialization of
CBC' therapeutic programs. These therapeutic programs are focused
on products which stimulate the immune system to treat infectious
diseases and cancer.
Final consummation of the reorganization plan, including the
sale of CBC's remaining retroviral diagnostic operations and
issuance of new stock in Aquila in exchange for CBC stock and claims
against CBC, is scheduled to occur within 30 days.
"We are excited about emerging from Chapter 11, and we are
looking forward to building Aquila," said Alison Taunton-Rigby,
Ph.D., President and CEO of Aquila (and of Cambridge Biotech). "The
court ruling allows us to focus fully on advancing our therapeutic
programs. These include the Stimulon(TM) family of adjuvants, led
by QS-21, and our proprietary vaccines for tick-borne diseases,
streptococcal infections and malaria, and in the animal health area,
vaccines for feline leukemia, canine Lyme disease and bovine
On the consummation date, CBC will transfer to Aquila all of its
assets, liabilities and intellectual property except for the
retroviral diagnostic operations assets. As previously announced,
CBC will then be sold to bioMerieux Vitek, Inc., for $6.5 million
Aquila will be capitalized initially with 5 million shares of
common stock. The court set the reorganizathe creditors and class
action shareholder s. Unsecured creditors who elected to receive
cash will receive cash payments equal to 51 percent of their claims.
Other unsecured creditors will receive shares of Aquila common stock
of a value (at $9.50 per share) equal to 100 percent of their
claims. Under a previously announced settlement agreement relating
to a shareholder class action, the settlement class will receive
1.25 million shares of Aquila common stock representing 25 percent
of the equity of Aquila. In addition, Aquila shares will be
distributed to employees under the court approved incentive plan to
retain key employees during the Chapter 11 reorganization.
Under the court approved plan, Aquila will offer rights to its
shareholders to purchase units consisting of one share of Aquila
common stock and a three year warrant to purchase one additional
share of Aquila common stock. The rights, which are transferable,
will be exercisable for a 20-day period after the consummation date.
Confirmation of the reorganization plan followed a hearing on
July 15, during which the court overruled all objections to the plan
confirmation and objections to the assumption and assignment of
licenses and executory contracts.
Cambridge Biotech Corporation, which filed for protection under
Chapter 11 of the United States Bankruptcy Code on July 7, 1994, is
a therapeutics and diagnostics company focusing on infectious
diseases and cancer. The company is developing and commercializing
therapeutic and prophylactic vaccines for infectious diseases and
immunotherapeutics for cancer. The company's therapeutics business
includes the Stimulon(TM) family of adjuvants, the most advanced of
which, QS-21, is in clinical development through corporate and
academic partners, and proprietary vaccines. The proprietary
vaccines include a feline leukemia vaccine currently on the market
and vaccines in development in the areas of tick-borne diseases,
streptococcal infections, bovine mastitis and canine Lyme disease.
Cambridge Biotech's remaining diagnostic business (to be sold to
bioMerieux Vitek under the Chapter 11 plan) is primarily focused on
retroviral and Lyme diseases.
Statements in this release which relate to plans and objectives
of management for future operations or which otherwise relate to
future performance are forward looking statements. Actual results
may differ from those projected as a result of the company's success
in emerging from bankruptcy, product demand, pricing, market
acceptance, the effect of economic conditions, intellectual
property, competitive products, risks in product and technology
development, and other risks identified in the Company's Securities
and Exchange Commission filings.
CONTACT: Alison Taunton-Rigby, President & Chief Executive Officer
of Cambridge Biotech Corp., 508-797-5777 or Robert Gottlieb, Senior
Vice President of Feinstein Partners, Inc., 617-577-8110
BOCA RATON, Fla., July 18, 1996 - Model Imperial, Inc.
(OTC Bulletin Board: MODL) today announced that it had filed a
voluntary petition seeking protection under Chapter 11 of the
Bankruptcy Code. The voluntary petition was filed in the United
States Bankruptcy Court for the Southern District of Florida. The
Company indicated that the Chapter 11 filing became necessary to
allow the Company to continue operations while it attempts to
reorganize, a process that was begun with the Company's secured
lenders and trade creditors pursuant to a forbearance agreement
entered into in April of this year. The Company also announced that
it intends to propose and confirm a plan of reorganization which
will allow the Company to emerge from bankruptcy proceedings.
The Company also announced that it had been unable to reach a
definitive written agreement with Perfumania, Inc. incorporating the
terms of a Letter of Intent between the Company and Perfumania, Inc.
pursuant to which the Company was to sell a 51% equity interest to
Model Imperial, Inc. is one of the largest wholesale
distributors of brand-name fragrances in the United States. The
Company primarily distributes prestige fragrances, but also offers
mass market fragrances and certain cosmetic and beauty care
products, for men and women. The Company is also one of the largest
operators of licensed retail departments in the country with over
650 retail locations throughout the U.S. The Company's principal
customers include many of the nation's leading mass merchants,
discount retailers and drug store and supermarket chains, as well as
numerous independent pharmacies and other specialty retailers.
Model Imperial's fragrance and cosmetic distribution product line
comprises approximately 4,000 individual brand- name items.
CONTACT: Leonard Silverstein, Model Imperial, 407-241-8244/
MINNEAPOLIS, July 18, 1996 - Braun's Fashions Corporation
(Nasdaq-NNM: BFCI) today announced results for the first quarter
ended June 1, 1996. Sales were $21,504,000, down 2 percent from
$21,967,000 for the same period last year. Same store sales
decreased 2 percent. The net loss for the first quarter was
$218,000 or $.06 per share, compared to a net loss of $659,000 or
$.17 per share for the same quarter last year.
The reduced first quarter loss was the result of significantly
higher gross margins realized in all three months. Sales, however,
were adversely affected by an unseasonably cold spring. Nicholas H.
Cook, Chairman and Chief Executive Officer stated, "Our strategy at
the end of last year to minimize our remaining inventory of fall and
holiday merchandise paid dividends in the first quarter in the form
of reduced markdowns and higher gross margins."
The Company also reported that it has filed its Plan of
Reorganization in the United States Bankruptcy Court for the
District of Delaware. This Plan of Reorganization follows the
Chapter 11 petition filed with the Bankruptcy Court on July 2 and
outlines the proposed terms and conditions for the treatment of the
Company's various creditors as the Company attempts to emerge from
The Company has also begun final liquidation sales in the 39
unprofitable store locations for which it has rejected leases under
the provisions of Chapter 11. Further, negotiations have been
initiated with landlords to restructure lease terms of certain
remaining stores which very likely will result in additional store
closings where landlords are unwilling to modify lease terms.
Mr. Cook further noted, "As predicted, the early filing of our
Plan of Reorganization and our move to restructure our store
organization are clear indications of our desire to emerge quickly
from Chapter 11 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 219
stores in 22 states, primarily in the Midwest and Pacific Northwest.
Braun's Fashions Corporation
(Dollars in thousands, except per share amounts)
Three Months Ended
June 1, 1996 May 27, 1995
Net sales $21,504 $21,967
Net income (loss) $ (218) $ (659)
Net Income (loss) per common share(a)$ (0.06) $ (0.17)
Three Months Ended
% of % of
June 1, 1996 Sales May 27, 1995 Sales
Net sales $ 21,504 100.0 $ 21,967 100.0
Cost of sales 14,798 68.8 15,867 72.2
Gross profit 6,706 31.2 6,100 27.8
Selling, general and
administrative 5,936 27.6 6,066 27.6
Depreciation and amortization 763 3.6 786 3.6
Operating Income (loss) 7 0.0 (752) (3.4)
Interest, net 359 1.6 310 1.4
Income (loss) before
income taxes (352) (1.6) (1,062) (4.8)
Income tax provision (benefit) (134) (0.6) (403) (1.8)
Net income (loss) $(218) (1.0) $(659) (3.0)
Net income (loss) per
common share (a) $(0.06) -- $(0.17) --
CONTACT: Stephen W. Clark, Vice President and Chief Financial
Officer of Braun's Fashions, Inc., 612-551-5106
CINCINNATI, July 18, 1996 - Eagle-Picher Industries, Inc.
(OTC: EPIHQ.U) today announced that a Second Amended Consolidated
Plan of Reorganization (the "Plan") was filed late in the day of
July 17, 1996.
The previous plan that was filed on April 9, 1996 provided that
each holder of a prepetition general unsecured claim (including
environmental claims) would receive its pro rata share of the cash,
notes, and stock to be distributed under the plan to all such
claimants and to a trust to be established to satisfy all present
and future asbestos and lead-related personal injury claims against
the Company. The Plan provides that each holder of a prepetition
general unsecured claim will receive its pro rata share of the value
of the aggregate consideration, which consists of cash, notes and
stock of the reorganized company (the "Distribution Value"), to be
distributed under the Plan to holders of general unsecured claims,
environmental claims, asbestos and lead personal injury and asbestos
property damage claims. Each such holder shall have the option of
receiving the amount of such pro rata share as follows: (a) 1/2 of
such pro rata share in cash and 1/2 of such pro rata share in notes
with a three year maturity; or (b) 1/6 of such pro rata share in
cash, 1/2 of such pro rata share in notes with a three year
maturity, and 1/3 of such pro rata share in stock of the reorganized
The Plan also modifies the consideration to be distributed to a
trust that will be established to resolve and satisfy asbestos
property damage claims. That trust will receive $3 million in cash
if the class of asbestos property damage claims accepts the Plan.
If the class rejects the Plan, however, the aggregate value of
asbestos property damage claims will be estimated and, based on such
estimated amount, the trust will receive its pro rata share of the
Distribution Value in the form of debentures of the reorganized
Company having a ten year maturity.
Pursuant to the Plan the trust to be established to resolve and
satisfy all asbestos and lead-related personal injury claims will
receive all of the Distribution Value that is not distributed to
Based on the decision of the Bankruptcy Court (which currently
is on appeal) which estimated the Company's liability with respect
to present and future asbestos-related personal injury claims at
approximately $2.5 billion, and the Company's estimate that all
other prepetition unsecured claims aggregate approximately $157
million, the Company estimates that the percentage of the
Distribution Value that will be distributed to the trust established
to resolve and satisfy asbestos and lead-related personal injury
claims will be approximately 94% and the percentage of the
Distribution Value that will be distributed with respect to other
prepetition general unsecured claims will be approximately 6%.
As was the case with the previous plan, the Company's equity
security holders will receive no distribution under the Plan and
their shares will be cancelled.
CONTACT: J. Rodman Nall of Eagle-Picher Industries, 513-721-7010