TCR_Public/960723.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For:  July 23, 1996



  1. Saks and Isetan to investigate the feasibility of a joint plan for Barneys Inc.
  2. Tyco Toys reports improved second quarter results
  3. KNIGHT-RIDDER RELEASES SECOND QUARTER EARNINGS
  4. Melville reports 1996 second quarter results...
  5. PINNACLE MICRO ANNOUNCES SECOND QUARTER RESULTS
  6. SMITH'S FOOD & DRUG CENTERS, INC. ANNOUNCES RESULTS
  7. Barneys expresses outrage at Saks - Isetan agreement
  8. Intergraph operating results for second quarter of 1996
  9. PanAmSat revenues increase...
  10. Madison Sports to aqcuire SeaScape Cruises
  11. AMERICAN PAGING REPORTS SECOND QUARTER RESULTS





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Saks Holdings, Inc. and Isetan Company Limited to investigate the feasibility of a joint reorganization plan for Barneys Inc.


        


            NEW YORK  --  July 23, 1996 -- Saks Holdings, Inc.
        (NYSE:SKS), the holding company for Saks Fifth Avenue, and Isetan
        Company Limited, a leading Japanese retailer, today announced that
        they have agreed to investigate the feasibility of developing a
        joint Plan of Reorganization for Barneys Inc.  
        


            The two companies will not submit specific proposals for a Plan
        of Reorganization until Saks has signed a Confidentiality Agreement
        and they have completed a joint review of Barneys operations, and
        they may elect not to proceed if this review does not support the
        development of a Plan that is economically and strategically viable.
        Consequently, no assurances can be given that, upon completion of
        this review, Saks and Isetan will decide to proceed with the
        proposal of a joint Plan of Reorganization.  Barneys has been
        operating under Chapter 11 of the Bankruptcy Code since January 10,
        1996.  
        


            Under the working agreement between Isetan and Saks, any joint
        Plan proposed would provide that control of the reorganized Barneys
        would rest with Saks; that, as the owner of the Madison Avenue, NY,
        Chicago, IL and Beverly Hills, CA store locations, Isetan would
        lease such locations to the reorganized Barneys; and that Isetan
        would have continued use of and marketing rights to the Barneys
        name, trademarks, etc.  in Japan and Asia.  
        


            In a joint statement, the two companies said, "We believe that
        Saks and Isetan are the parties with the greatest potential to
        develop a Plan of Reorganization that can offer a workable solution
        for creditors while preserving the value of the Barneys franchise.
        At the same time, both parties have committed that they will only
        present a Plan if it is in the best interests of Saks and Isetan
        shareholders."  
        


            Saks operates 40 full-line stores and five resort stores in
        premier retail locations across the United States, led by its
        flagship on New York's Fifth Avenue.  In addition, Saks operates 21
        Off 5th outlet stores and Folio, a direct mail business.  
        



        CONTACT: Saks Holdings, Inc., New York
                 Jaqui Lividini, (212) 940-4245
                             or
                 Morgen-Walke Associates, New York
                 David Walke/Naomi Rosenfeld/Stacey Herschaft
                 Media Contact: Terry Rooney/Stacy Berns
                  (212) 850-5600                          



Tyco Toys reports improved second quarter results


        


            MT. LAUREL, N.J.  --  July 23, 1996  --  Tyco Toys,
        Inc. (NYSE:TTI) today reported a Net Loss of $4,658,000 or $.13 per
        share for the Second Quarter ended June 30, 1996, compared to a Net
        Loss of $9,625,000 or $.28 per share last year.
        


            The 1995 results include a pre-tax restructuring charge of $4.9
        million ($.09 per share after tax).  Net Sales for the quarter were
        $140,590,000 compared to $151,692,000 for the same period a year
        ago.
        


            For the Six Months, Net Sales were $236,358,000 compared to
        $267,752,000 for the same period a year ago.  The Net Loss for the
        Six Months was $15,682,000 or $.45 per share compared to $17,078,000
        or $.49 per share last year.  The 1995 results include the $4.9
        million restructuring charge, partially offset by a pre-tax, one-
        time gain of $2.5 million ($.05 per share after tax) from the sale
        of distribution rights for Kidsongs(R) Music Videos.
        


            Gary Baughman, president and chief executive officer, said, "The
        elimination of several 1995 product categories did result in lower
        overall sales during the Second Quarter and First Half of 1996, as
        expected.  At the same time, however, the focus on core products,
        coupled with other cost-saving initiatives, helped improve gross
        profit margins, decrease operating expenses and resulted in a modest
        operating profit.
        


            "We are particularly encouraged by the performance of the
        company's International and Preschool business units where
        significantly higher gross profit margins and lower operating
        expenses resulted in improved Second Quarter operating results," he
        said.  "Operating profit was marginally lower in the U.S. business
        unit, where lower sales and gross profit were substantially offset
        by reduced operating expenses."
        


            Baughman said the company recently began shipping several new
        product lines, including TycoVideoCam(TM), a $100 children's video
        camera; Kitchen Littles(TM), a line of die-cast kitchen miniatures;
        new Radio Control vehicles, including Dagger(TM) and Mutator(TM);
        new Matchbox(R) toys; and Tickle Me Elmo(TM), a giggling soft toy
        that is expected to be Tyco's most successful Sesame Street(R)
        introduction.
        


            "We expect Sales to increase significantly during the Second
        Half of 1996 with the introduction of these new lines and the
        continuing strong sales at retail of products such as Doodle
        Bear(TM), BabyWiggles 'n Giggles(TM), Rebound(TM) 4x4 Radio Control,
        Matchbox(R) cars and our line of Sesame Street(R) toys."
        


            Baughman continued, "Our turnaround program is beginning to
        positively impact our operating results and contributed to the very
        successful $96.6 million Preferred Stock Offering completed in June.
        


         The proceeds from the offering will help accelerate our growth and
        return to profitability by increasing new product development and
        making capital available for potential acquisitions."
        


            Tyco Toys markets a broad range of products worldwide, including
        Tyco(R) Radio Control vehicles, Matchbox(R) die-cast vehicles and
        playsets, Magna Doodle(R) drawing toys, View-Master(R) 3-D Viewers
        and a wide variety of Sesame Street(R) preschool toys.


        
                                 TYCO TOYS INC.
                       Consolidated Statements of Operations
                      (In thousands, except per share amounts)
                                                 
        
                         For the Quarters Ended   For the Six Months Ended
                                June 30,                   June 30,
                          1996            1995        1996          1995
        
        Net sales           $140,590        $151,692      $236,358
        $267,752
        Cost of goods sold    79,540          87,862       134,673
        154,819
        
        Gross profit          61,050          63,830       101,685
        112,933
        
        Marketing, advertising
         and promotion        32,429          36,239        57,396
        65,107
        Selling, distribution
         and administrative
         expenses             26,901          28,429        51,948
        55,828
        Restructuring charge      --           4,900
        --        4,900
        Amortization of
         goodwill              1,616           1,598         3,223
        3,191
        
        Total operating
         expenses             60,946          71,166       112,567
        129,026
        Operating income  
         (loss)                  104          (7,336)      (10,882)
        (16,093)
        
        Interest expense, net  5,564           6,084        10,840
        11,949
        Other (income)
         expense, net            (57)            139          (631)
        (4,190)
        
        Loss before taxes     (5,403)        (13,559)      (21,091)
        (23,852)
        
        Income tax benefit    (1,634)         (4,724)       (7,125)
        (8,348)
        
        Net loss              (3,769)         (8,835)      (13,966)
        (15,504)
        
        Preferred stock
         dividends               889             790         1,716
        1,574
        
        Net loss applicable
         to common  
         shareholders        ($4,658)         ($9,625)    ($15,682)
        ($17,078)
        
        Net loss per
         common share         ($0.13)          ($0.28)      ($0.45)
        ($0.49)
        
        Average common shares
         outstanding          34,827           34,762       34,827
        34,760
        
        
                                   TYCO TOYS INC.
                             Consolidated Balance Sheets

                                   (In thousands)
                                                      
        
                                          June 30,           Dec. 31,
                                      1996       1995          1995       
        
        Assets
        Current assets                  
         Cash and cash equivalents     $  47,269   $ 14,387      $ 27,604
         Receivables, net                159,719    189,159       187,503   
         Inventories, net                 72,332     87,641        56,710   
         Prepaid expenses and
          other current assets            18,962     22,025        19,738
         Deferred taxes                  13,008     17,271        13,008    
        
        Total current assets         311,290    330,483       304,563
        
        Property and equipment, net       32,600     42,637        33,021
         
        Goodwill, net of accumulated
         amortization                    222,418    229,420       226,112
        Deferred taxes, noncurrent        35,881     30,288        28,560
        Other assets                      21,164     21,984        22,876
        
        Total assets                $623,353   $654,812      $615,132
        
        Liabilities and
         Stockholders' Equity
        Current liabilities              
         Notes payable                   $20,226    $87,337       $60,923
         Current portion of
          long-term debt                     859      1,065         1,053  
         Accounts payable                 40,354     53,092        45,557
        
         Accrued expenses and
          other current liabilities       68,704     83,701        93,179
        
        Total current liabilities    130,143    225,195       200,712   
        
        Long-term debt, net of
         current portion                 147,064    147,590       147,180
        
        Other liabilities                  2,174      2,342         1,900
        
        Stockholders' Equity
         Preferred stock                      83          5             5
         Common stock                        350        349           350
         Additional paid-in capital      441,309    344,920       347,033
         Accumulated deficit             (73,943)   (44,910)      (58,261)
         Treasury stock                   (1,676)    (1,595)       (1,676)
         Cumulative translation
          adjustment                     (22,151)   (19,084)      (22,111)
        
        Total stockholders' equity   343,972    279,685       265,340
        
        Total liabilities and
         stockholders' equity       $623,353   $654,812      $615,132
        

        CONTACT: Tyco Toys Inc., Mt. Laurel
                 Bruce Maguire, 609/840-1384

        

KNIGHT-RIDDER RELEASES SECOND QUARTER EARNINGS


        


            MIAMI, FL  --  July 23, 1996  --  In the second quarter of 1996,
        Knight-Ridder, Inc. (NYSE: KRI) earned $.86 a share, up $.05, or
        6.2% from the $.81 reported in the same quarter in 1995.  These 1995
        results are before a $1.07 gain on the sale of the Journal of
        Commerce (JoC), but after a $.12 charge for the adjustment of the
        carrying value of certain investments. (In the second quarter of
        1995, the company earned $1.88 per share, reflecting the one-time
        gain resulting from the JoC sale.)
        


            Net income in the second quarter of 1996 was $42.4 million, up
        $2.0 million, or 4.9%, from the same period last year exclusive of
        the gain on the sale of the JoC.  Total operating revenue rose 4.3%,
        to $717.0 million, Operating income declined 5.0%., to $80.5 million
        as a result of higher newsprint prices and the impact of the Detroit
        strike.
        


            (On July 31, our previously announced two-for-one stock split
        will become effective.  Financial communications after that date
        will reflect the change.)
        


        Newspaper Division


            Total operating revenue for the  Newspaper Division rose 5.3%,
        to $595.6 million.  Operating income for the division fell 5.5%, to
        $89.5 million.
       


        Business Information Systems Division


            BIS Division operating revenue was flat at $121.4 million.
        Operating income for the division declined to $1.8 million.
       


        Comment on Operations


            Ross Jones, Knight-Ridder's chief financial officer, said, "We
        anticipated that the quarter would be adversely affected by both the
        price of newsprint, which was up 28.9% year over year, and by the
        strike in Detroit - where the operating loss for the quarter was
        less than half that of the first quarter.  Detroit is doing better
        than expected, and we are on track to be breaking even on an
        operating basis by year's end. As in the first quarter, we faced
        modest dilution from the Contra Costa acquisition.
       


            "Total advertising revenue, on a pro forma basis for the Contra
        Costa acquisition, but excluding Detroit, was up 4.0% for the
        quarter. In Philadelphia and Charlotte, the increases were 6.7% and
        11.1%, respectively, and both markets achieved their best
        performances of the year in June, up 9.9% and 11.9%, respectively.
        Miami's performance for the three months - ad revenue up 1.3% - was
        a marked improvement over the first quarter.  Detroit was steady
        during the period with total ad revenue at approximately 76% of pre-
        strike levels.  St. Paul ad revenue was up 8.5% and Akron was up
        6.8%.
        


            "San Jose's total ad revenue was up 6.1% for the quarter, even
        though tough comparisons caught up with us in May and June.
        Recruitment advertising is no longer showing the dramatic year-over-
        year increases that it did during the first four months, reflecting
        pressure on the Silicon Valley economy.  In both San Jose and Contra
        Costa, retail deteriorated during the period - a combination of the
        slowing business environment and the Emporium going out of business.
        


            "Retail advertising for the quarter, pro forma without Detroit,
        was down slightly, reflecting softness in the major markets except
        Charlotte.  A variety of out-of-business or bankruptcy situations
        account for much of the retail decline; particulars are market-
        specific. On the same basis, general and classified were both strong
        - each up just under 10% - with good results fairly evenly spread
        outside of northern California.
        


            "Operating costs in the Newspaper Division were up 7.5% for the
        quarter.  On a pro forma basis, operating costs were up 2.4%. On a
        pro forma basis without newsprint, they were down 1.1%.  On a pro
        forma basis (excluding Detroit), labor and employee benefits were
        down 1.5% and other operating costs were down 0.9%.
        


            "Business Information Services revenue reflects a modest decline
        in year-over-year results for Knight-Ridder Financial. (We announced
        in May the sale of KRF to Global Financial Inc. for $275 million,
        and that sale is expected to close this week.) Revenues for Knight-
        Ridder Information increased modestly during the quarter.
        Technimetrics had an excellent quarter.
        


            "Corporate costs for the quarter were down 17.1% versus the same
        period last year, The decline reflects in part an allocation to the
        newspapers and BIS companies of some of the reengineering costs
        associated with the new Shared Services Center.
        


            "By the quarter's end, we had 48.4 million shares outstanding,
        and we continue to repurchase shares under an authorization that
        extends to 3.0 million shares.  To date, we have purchased more than
        1.5 million of that authorization.
        


            "As we look ahead, we are encouraged by the still-improving
        newsprint story and by the cycling through of the Detroit strike.
        Although the annualization of 1995s newsprint price hikes will still
        cause year-over-year increases to be between 10% and 15%, these are
        significantly less than originally anticipated.  If, as we believe,
        current trends continue, we will pay less for newsprint in the
        second half of 1996 than we did in the second half of 1995.  Detroit
        continues to outperform expectations and, with the strike now more
        than one year old, comparisons are easier.  While the lackluster
        retail performance and northern California's stall are concerns,
        classified continues to do well and many markets are healthy.  We
        continue to anticipate a year of strong earnings growth."
        


            Knight-Ridder is an international communications company engaged
        in newspaper publishing, business news and information services,
        electronic retrieval services, news, graphics and photo services and
        newsprint manufacturing.  The company publishes 31 daily newspapers
        in the United States.  Around the world, news, advertising and
        information from Knight-Ridder reach more than 100 million people in
        more than 150 countries.
        



                     KNIGHT-RIDDER, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENT OF INCOME

                 (In thousands of dollars, except share data)
        
                                 Quarter Ended        Two Quarters Ended
                                June 30  June 25      June 30   June 25
                                 1996       1995        1996       1995
        OPERATING REVENUE
         Newspapers
          Advertising
           Retail            $ 200,651  $ 200,091   $ 382,702  $ 381,876
           General              51,101     46,951      97,337     94,322
           Classified          197,687    175,390     393,253    342,489
            Total              449,439    422,432     873,292    818,687
          Circulation          125,837    123,046     252,691    245,638
          Other                 20,305     20,248      40,354     38,534
            Total Newspapers   595,581    565,726   1,166,337  1,102,859
         Business Information
          Services             121,401    121,729     248,306    259,195
         Total Operating
             Revenue           716,982    687,455   1,414,643  1,362,054
        
        OPERATING COSTS
          Labor and employee
           benefits            278,959    274,485     562,274    554,079
          Newsprint, ink and
           supplements         127,643    107,953     254,163    202,782
          Other operating
           costs               187,103    183,155     381,440    374,712
          Depreciation and
           amortization         42,827     37,148      85,704     74,760
            Total Operating
             Costs             636,532    602,741   1,283,581  1,206,333
        
        OPERATING INCOME        80,450     84,714     131,062    155,721
        
        OTHER INCOME (EXPENSE)
         Interest expense      (19,175)   (12,612)    (38,802)   (25,013)
         Interest expense
          capitalized            1,384        366       2,579        611
         Interest income         2,094      2,270       4,675      4,403
         Equity in earnings of
          unconsolidated companies
          in joint ventures      8,815      7,393      16,570      8,344
         Minority interests in
          earnings of consolidated
          subsidiaries          (2,567)    (2,369)     (4,150)    (3,983)
         Other, net                343     82,778         246     84,104
            Total               (9,106)    77,826     (18,882)    68,466
        
        Income before
         income taxes           71,344    162,540     112,180    224,187
        Income taxes            28,992     68,420      46,310     94,394
        
        INCOME BEFORE CUMULATIVE EFFECT
         OF CHANGE IN ACCOUNTING
         PRINCIPLE              42,352     94,120      65,870    129,793
        
        Cumulative effect of
         change in accounting
         principle for
         contributions             ---       ---          ---     (7,320)
           Net income          $42,352    $94,120     $65,870   $122,473
        
        EARNINGS PER COMMON AND
         COMMON EQUIVALENT SHARE
        
        Income before cumulative
         effect of change in
         accounting principle    $0.86      $1.88       $1.33      $2.54
        Cumulative effect of
         change in accounting
         principle                 ---        ---        ---      (0.14)
           Net income            $0.86      $1.88       $1.33     $2.40
        
        DIVIDENDS DECLARED
         PER COMMON SHARE..    $   0.40   $   0.37   $    0.77  $    0.74
        
        AVERAGE COMMON AND COMMON
         EQUIVALENT SHARES
         OUTSTANDING (000s)..    49,507     50,061      49,490     50,972
        
                                   Four Quarters Ended
                                June 30         June 25
                                 1996             1995
        OPERATING REVENUE
         Newspapers
          Advertising
           Retail            $ 808,584         $ 805,486
           General             185,531           186,257
           Classified          733,460           647,834
            Total            1,727,575         1,639,577
          Circulation          502,368           487,904
          Other                 83,717            74,300
            Total Newspapers 2,313,660         2,201,781
         Business Information
          Services             490,763           516,821
         Total Operating
             Revenue         2,804,423         2,718,602
        
        OPERATING COSTS
          Labor and employee
           benefits          1,136,174        1,107,117
          Newsprint, ink and
           supplements         498,222          379,372
          Other operating
           costs               791,846          755,501
          Depreciation and
           amortization        162,556          149,726
            Total Operating
             Costs           2,588,798        2,391,716
        
        OPERATING INCOME       215,625          326,886
        
        OTHER INCOME (EXPENSE)
         Interest expense      (73,361)         (47,414)
         Interest expense
          capitalized            3,857            1,022
         Interest income         9,414            7,858
         Equity in earnings of
          unconsolidated companies
          in joint ventures     28,887           15,564
         Minority interests in
          earnings of consolidated
          subsidiaries          (8,515)          (8,530)
         Other, net               (118)          81,947
            Total              (39,836)          50,447
        
        Income before
         income taxes          175,789          377,333
        Income taxes            72,330          157,133
        
        INCOME BEFORE CUMULATIVE EFFECT
         OF CHANGE IN ACCOUNTING
         PRINCIPLE             103,459          220,200
        
        Cumulative effect of
         change in accounting
         principle for
         contributions             ---          (7,320)
           Net income         $103,459        $212,880
        
        EARNINGS PER COMMON AND
         COMMON EQUIVALENT SHARE
        
        Income before cumulative
         effect of change in
         accounting principle    $2.10           $4.21
        Cumulative effect of
         change in accounting
         principle                 ---           (0.14)
           Net income            $2.10           $4.07
        
        DIVIDENDS DECLARED
         PER COMMON SHARE..   $    1.51      $     1.48
        
        AVERAGE COMMON AND COMMON
         EQUIVALENT SHARES
         OUTSTANDING (000s)..    49,357          52,316
        
            ..  The Company declared a 2-for-1 stock split on June 21, 1996,
        to be distributed on July 31, 1996.  Common and common equivalent
        shares outstanding and dividends declared per common share do not
        reflect the 2- for-1 split of the company's Common Stock for periods
        presented.
        
                  KNIGHT-RIDDER, INC. AND SUBSIDIARIES
                     BUSINESS SEGMENT INFORMATION

                        (In thousands of dollars)
        
                               Quarter Ended       Two Quarters Ended
                            June 30    June 25    June 30       June 25
                              1996       1995      1996          1995
        
        OPERATING REVENUE
          Newspapers        $595,581    $565,726  $1,166,337    $1,102,859
          Business Infor-
            mation Services  121,401     121,729     248,306       259,195
                            $716,982    $687,455  $1,414,643    $1,362,054
        OPERATING INCOME
          Newspapers         $89,497     $94,736    $150,743      $172,465
          Business infor-
            mation Services    1,803       3,072       2,776         9,756
          Corporate          (10,850)    (13,094)    (22,457)      (26,500)
                             $80,450     $84,714    $131,062      $155,721
        DEPRECIATION AND
         AMORTIZATION
          Newspapers         $28,291     $23,809     $56,567          $47,474
          Business Infor-
            mation Services   13,567      12,785      27,231        26,200
          Corporate              969         554       1,906         1,086
                             $42,827     $37,148     $85,704          $74,760
        
                           BUSINESS SEGMENT INFORMATION
                             (In thousands of dollars)
                                   (continued)
                                             Four Quarters Ended
                                         June 30           June 25
                                           1996             1995
        OPERATING REVENUE
          Newspapers                     $2,313,660       $2,201,781
          Business Information Services     490,763          516,821
                                         $2,804,423       $2,718,602
        OPERATING INCOME
          Newspapers                     $  259,424       $  353,240
          Business Information Services       5,042           20,297
          Corporate                         (48,841)         (46,651)
                                         $  215,625       $  326,886
        DEPRECIATION AND AMORTIZATION
          Newspapers                     $  105,144       $   94,713
          Business Information Services      53,902           53,137
          Corporate                           3,510            1,876
                                         $  162,556       $  149,726
        

CONTACT:  Polk Laffoon, VP-Corporate Relations, 305-376-3838, or
        Lee Ann Schlatter, Director of Corporate Communications, 305-376-
        3839, both of Knight-Ridder, Inc.


Melville reports 1996 second quarter
results; CVS achieves record second quarter sales and earnings


        


RYE, N.Y.  --  July 23, 1996  --  Melville Corp.
        (NYSE:MES) reported today its financial results for the second
        quarter ended June 29, 1996.  
        


            As a result of the company's restructuring program, the results
        of several of Melville's divisions are reported as discontinued
        operations.   The company's results from continuing operations
        represent solely those of CVS, which will emerge as a stand-alone
        chain drug company following the spin-off of Melville's footwear
        businesses, to be known as Footstar Inc., in the third quarter.
        Subsequent to the Footstar spin-off, the company will change its
        corporate name to CVS Corp. and its stock symbol to "CVS."  The
        Company is actively working on alternatives to separate Linens 'n
        Things and Bob's from CVS Corp.
        


            Stanley Goldstein, chairman and chief executive officer of
        Melville, commented, "Melville's operating results are very
        encouraging.  We are particularly pleased with the outstanding
        performances of both CVS and Footaction during the quarter.  These
        businesses will be the growth vehicles of the two public companies
        resulting from our restructuring program.  We are very excited about
        the prospects for CVS and Footstar and we are continuing to move
        ahead as quickly as possible to complete the remaining steps in the
        restructuring process."
        


        Second Quarter
        


            Net sales from continuing operations, representing CVS, for the
        second quarter of 1996 increased 13.4% to $1.36 billion from sales
        of $1.20 billion for the comparable period last year.  CVS' same
        store sales for the quarter rose 9.8%.  Net sales from the Footstar
        businesses for the second quarter of 1996 were $473.1 million, a
        decrease of 1.0% from $478.0 million in the 1995 second quarter.
        Same store sales for the footwear businesses decreased 2.2% for the
        quarter.  Total net sales for Melville, including continuing and
        discontinued operations, were $2.10 billion, compared to $1.89
        billion in the second quarter of 1995, after adjusting 1995's sales
        to exclude the businesses that were sold.  Melville's total same
        store sales, including continuing and discontinued operations, rose
        4.7% for the second quarter.  
        


           Operating profit from continuing operations for the second
        quarter was $84.2 million, an increase of 22.2% from $69.0 million
        in the comparable period last year.  Operating profit for the
        footwear businesses, before the restructuring charge related to
        exiting Thom McAn, increased 7.8% to $48.2 million from $44.7
        million in the 1995 second quarter.
        


           Consolidated net earning from continuing operations for the
        quarter reached $45.0 million, or $.40 per share, up 35.1% from
        $33.3 million, or $.28 per share, excluding a $.43 per share gain
        from the sale in the second quarter of 1.15 million shares of TJX
        Companies Inc. Series E preferred stock received as proceeds from
        the sale of Marshalls.  An additional 350,000 shares of TJX
        Companies Inc. Series E preferred stock was sold on July 2, 1996.
        Melville continues to hold 250,000 shares of TJX Series D preferred
        stock, which it expects to monetize in the future.
        


           Melville announced several steps during the second quarter to
        accelerate the emergence of CVS as a stand-alone chain drug company
        and to further strengthen Footstar Inc.  The actions included (1)
        classifying Linens 'n Things and Bob's results as discontinued
        operations, demonstrating the company's formal plan to separate
        these divisions from CVS; and (2) a formal plan to convert 80 to 100
        of Thom McAn's stores to the highly successful Footaction format and
        to exit the Thom McAn business by mid-1997.  Primarily in connection
        with these actions, the company recorded a one-time, after-tax
        restructuring charge of approximately $148 million, or $1.40 per
        share, in the second quarter, which is included in discontinued
        operations.  Melville's total consolidated net loss, including
        continuing and discontinued operations as well as the TJX gain and
        the restructuring charge, was $62.5 million, or $.62 per share,
        compared to net earnings of $30.7 million, or $.25 per share, for
        the second quarter of 1995.  
        


        Six Months


           For the first six months of 1996, net sales from continuing
        operations, representing CVS, rose 12.5% to $2.62 billion from sales
        of $2.33 billion for the first half of last year.  CVS's same store
        sales for the six-month period increased 10.0%.  Net sales from the
        Footstar businesses for the 1996 six-month period were $848.9
        million, an increase of .4% from $845.3 million in the comparable
        period last year.  Same store sales for the footwear businesses
        increased 1.6% for the first half of 1996, fueled by the strong
        performance of Footaction.  Total net sales for Melville, including
        continuing and discontinued operations, were $3.94 billion, compared
        to $3.53 billion for the first half of 1995, after adjusting 1995's
        sales to exclude the businesses that were sold.  Melville's total
        same store sales, including continuing and discontinued operations,
        increased 6.5% in the first half of 1996.
       


           Operating profit from continuing operations was $155.6 million,
        an increase of 25.0% from $124.5 million for the comparable period
        in 1995.  Operating profit for the footwear businesses, before the
        restructuring charge related to exiting Thom McAn, reached $47.5
        million, up 15.6% from $41.1 million in the 1995 first half.
        


            Consolidated net earnings from continuing operations for the
        first half of 1996 increased 39.8% to $85.7 million, or $.75 per
        share, from $61.3 million, or $.50 per share, excluding the $.43 per
        share gain from the sale in the second quarter of 1.15 million
        shares of TJX Companies Inc. preferred stock.  Melville's total
        consolidated net loss, including continuing and discontinued
        operations as well as the TJX gain and restructuring charge, was
        $48.3 million, or $.52 per share, compared to a net loss of $41.6
        million, or $.48 per share, for the six-month period in 1995.
        


            As of June 29, 1996, Melville's operating results from
        continuing operations included 1,375 CVS stores.  The company is
        also operating, as part of discontinued operations, 3,267 stores and
        lease departments associated with the footwear businesses and 35
        Bob's and 154 Linens 'n Things locations.
        


            Since October 1995, Melville has been implementing a strategic
        restructuring program, which was the product of a strategic review
        initiated in 1994.  The main components of the restructuring include
        the creation of two publicly-traded, independent and industry-
        focused companies -- CVS Corp. in the chain drug industry and
        Footstar Inc. in the footwear industry -- a significant reduction in
        costs, the sale of Melville's mature or unrelated businesses, and
        the closing of approximately 330 underperforming stores.


        
                    Melville Corp. and Subsidiary Companies
                Consolidated Statements of Earnings
(unaudited)
               ($ and Shares in 000's, except per share amounts)
        
                                           Second Quarter Ended         
        
                                     June 29,    % of     July 1,   % of  
                                       1996      Sales     1995     Sales
        
        Net sales                      $1,363,507   100.0   $1,202,865
        100.0
        Cost of goods sold, buying
         and warehousing costs            974,991    71.5      860,127
        71.5
        Gross margin                      388,516    28.5      342,738
        28.6        
        Store operating, selling, general
         and administrative expenses      284,467    20.9      255,909
        21.3
        Depreciation and amortization      19,806     1.5       17,866
        1.5
        Operating profit from
         continuing operations             84,243     6.2       68,963
        5.7
        Gain on sale of securities         76,625     5.6
        -       0.0
        Dividend income                     2,709     0.2
        -       0.0
        Interest expense, net             (11,981)   (0.9)     (12,478)
        (1.0)
        Other income, net                  67,353     4.9      (12,478)
        (1.0)
        Earnings from continuing
         operations before income taxes
         and cumulative effect of change
         in accounting principle          151,596    11.1       56,485
        4.7
        Income tax provision               60,664     4.4       23,158
        1.9
        Earnings from continuing
         operations before cumulative
         effect of change in accounting
         principle                          90,932     0.0       33,327
        2.8
        Loss from discontinued
         operations, net                  (153,466)  (11.3)      (2,662)
        (0.2)
        Earnings before
         cumulative effect of change in
         accounting principle              (62,534)   (4.6)      30,665
        2.5
        Cumulative effect of change
         in accounting principle, net
        -        -          -       -  
        Net earnings                      ($62,534)   (4.6)     $30,665
        2.5        
        Weighted average number of common
         shares outstanding                105,697              104,938
        Earnings per share from
         continuing operations before cumulative
         effect of change in accounting
         principle (3)                    $   0.83             $   0.28
        Loss per share from
         discontinued operations, net       ($1.45)              ($0.03)   
        Earnings per share before
         cumulative effect of change in
         accounting principle               ($0.62)               $0.25
        Loss per share from
         cumulative effect of change in
         accounting principle, net              -                   -   
        Net earnings (loss)
         per common share                   ($0.62)               $0.25
        Dividends per common share        $   0.11              $  0.38


                    Melville Corp. and Subsidiary Companies
                Consolidated Statements of Earnings
(unaudited)
               ($ and Shares in 000's, except per share amounts)
        
                                             Six Months Ended         
        
                                     June 28,    % of     July 1,   % of  
                                       1996      Sales     1995     Sales
        
        Net sales                      $2,621,941   100.0   $2,331,030
        100.0
        Cost of goods sold, buying
         and warehousing costs          1,871,442    71.4    1,665,930
        71.5
        Gross margin                      750,499    28.6      665,103
        28.5        
        Store operating, selling, general
         and administrative expenses      555,327    21.2      504,414
        21.6
        Depreciation and amortization      39,575     1.5       36,182
        1.6
        Operating profit from
         continuing operations            155,597     5.9      124,507
        5.3
        Gain on sale of securities         76,625     2.9
        -       0.0
        Dividend income                     5,443     0.2
        -       0.0
        Interest expense, net             (17,505)   (0.7)     (20,645)
        (0.9)
        Other income, net                  64,563     2.5      (20,645)
        (0.9)
        Earnings from continuing
         operations before income taxes
         and cumulative effect of change
         in accounting principle          220,160     8.4      103,862
        4.5
        Income tax provision               88,727     3.4       42,582
        1.8
        Earnings from continuing
         operations before cumulative
         effect of change in accounting
         principle                         131,433     0.0       61,280
        2.6
        Loss from discontinued
         operations, net                  (179,765)   (6.9)     (80,607)
        (3.5)
        Earnings before
         cumulative effect of change in
         accounting principle              (48,332)   (1.8)     (19,327)
        (0.8)
        Cumulative effect of change
         in accounting principle, net           -        -       22,315
        1.0
        Net earnings                      ($48,332)   (1.8)    ($41,642)
        (1.8)       
        Weighted average number of common
         shares outstanding                105,352              105,109
        Earnings per share from
         continuing operations before cumulative
         effect of change in accounting
         principle(3)                     $   1.18             $   0.50
        Loss per share from
         discontinued operations, net       ($1.70)              ($0.77)   
        Earnings per share before
         cumulative effect of change in
         accounting principle               ($0.52)               $0.27
        Loss per share from
         cumulative effect of change in
         accounting principle, net              -                ($0.21)
        Net earnings (loss)
         per common share                   ($0.52)              ($0.48)
        Dividends per common share        $   0.22              $  0.76
        Number of stores open at
         end of period (CVS only)            1,375                1,339
        
        Notes:
        (1) Percentages may not foot due to rounding.
        (2) In accordance with APB opinion No. 30, the Footwear, Apparel
        and Toys and Home Furnishings segments have been classified as
        discontinued operations.  
        (3) Earnings per share from continuing operations for the second
        quarter and six month period ended June 29, 1996 includes a $.43 per
share gain from the sale of 1.15 million shares of TJX Companies
        Inc. preferred stock.
        (4) Certain reclassifications have been made to the financial
        periods of prior periods to conform to the current period
        presentation.


                      Melville Corp. and Subsidiary Companies
                      Consolidated Balance Sheets
(unaudited)
                                  ($ in 000's)
        
                                            June 29,          July 1,
                                              1996             1995
        ASSETS
        Current assets:
         Cash and cash equivalents              $ 82,255         $ 82,664
         Investments                             101,805               --
         Accounts receivable, net                189,879          219,574
         Inventories                           1,434,344        2,284,788
         Prepaid expenses                        285,616          170,216
        Total current assets                   2,093,899        2,757,242
        
        Property and equipment, net              891,879        1,495,155
        Other non-current assets                 418,119          558,539
        TOTAL ASSETS                          $3,403,897       $4,810,936
        
        LIABILITIES AND EQUITY
        Current liabilities:
         Accounts payable and accrued
          expenses                            $1,276,376       $1,117,259
         Notes payable                            91,900          805,000
         Other current liabilities                14,774           13,657
        Total current liabilities              1,383,050        1,935,916
        Long-term debt(a)                        321,435          331,229
        Other non-current liabilities            188,092          298,863
        Redeemable preferred stock                 1,330            1,330
        Shareholders' equity                   1,509,990        2,243,598
        TOTAL LIABILITIES AND EQUITY          $3,403,897       $4,810,936
        
        (a) Includes $309,400 and $323,000 related to the company's Employee
                Stock Ownership Plan in 1996 and 1995, respectively.
                Certain reclassifications have been made to the financial statements
               of prior periods to conform to current period presentation.
        

         CONTACT:  Melville Corp., Rye
                   Nancy Christal, 914/925-4385
                      or
                   Kekst & Co.
                   Jim Fingeroth or Wendi Kopsick, 212/593-2655



PINNACLE MICRO ANNOUNCES SECOND QUARTER RESULTS, COMPLETES SUCCESSFUL PRIVATE PLACEMENT AND REPORTS ON TURNAROUND PROGRESS


        


            IRVINE, Calif., July 23, 1996  - Pinnacle Micro, Inc.
        (Nasdaq: PNCL) today announced its second quarter results,
        successful closing of an offshore private placement of $10 million
        in convertible notes and reports on its turnaround progress.
        


        Second Quarter Results


            Net sales for the second quarter ended June 29, 1996 declined 29
        percent to $12,333,000 from $17,434,000 in the first quarter of 1996
        and are down 40 percent from $20,600,000 in the second quarter of
        1995.  Net loss was $3,913,000 for the second quarter of 1996, or
        $.49 per share, as compared to net loss for the first quarter of
        1996 of $3,915,000 or $.50 per share, and net income of $162,000, or
        $.02 per share, in the second quarter of 1995.  Gross margin was
        17.5 percent for the second quarter of 1996 compared to 17.9 percent
        in the first quarter of 1996 and 26.2 percent for the second quarter
        of 1995.
       


            "I am pleased with our progress so far," said Larry Goelman,
        President and CEO, "but there are critical milestones still ahead of
        us. The new management team is first rate.  I am very impressed by
        the engineers at the R&D Center.  Now it is time for us to execute,
        beginning with the planned reorganization into business units,
        restructuring of the sales organization and implementing our
        strategy. I want to thank all of Pinnacle's vendors and strategic
        partners for their patience, support and cooperation with Pinnacle
        at this point in its history."
        


            Revenue was lower in the second quarter of 1996 compared to both
        the first quarter 1996 and the second quarter 1995 primarily due to
        a decrease in volume as well as price erosion in shipments of
        existing Recordable CD products.  The Company expects these
        reductions in sales of existing products will continue to impact
        revenues and margins in the market for 2X/2X and 2X/4X speed drives.
        Management plans to introduce a next generation Recordable CD
        product in the second half of 1996.
        


            The Sierra and Tahoe lines have reached the end of their product
        lives, resulting in decreased quantities and related declines in
        revenue and margin contribution.  Vertex 2.6 GB began shipping at
        the end of the second quarter in quantities which partially offset
        the quarter to quarter reduction in sales of the Sierra product.
        


            Gross margins for the second quarter 1996 when compared to both
        the first quarter 1996 and second quarter 1995 declined as a result
        of lower sales volume and prices particularly in existing Recordable
        CD products. Gross margins in the second quarter 1996 were
        approximately the same as the gross margin reported in the first
        quarter 1996, primarily due to the Company's ability to negotiate
        cost reductions from its suppliers.
        


            The loss reported in the second quarter 1996 was approximately
        the same as the first quarter 1996 loss, primarily due to product
        cost reductions received from suppliers and reduced selling, general
        and administrative expenses in the second quarter, which management
        believes is partially a result of their new initiatives.
        


        Offshore Private Placement


            In July 1996 the Company closed the offshore private placement
        of an aggregate of $10 million of 8 percent convertible debentures,
        from which sale the Company received approximately $9.4 million
        after fees and expenses.  The notes are convertible into common
        stock of the Company in one-third increments 60, 90 and 120 days
        after closing at varying discounts from fair market value at the
        time of conversion.  The Company used a portion of the proceeds to
        pay off its outstanding indebtedness to its lender, and will use the
        balance for working capital.
       


        Risk Factors Associated With Outlook


            The Company's prospects for the rest of 1996 will depend
        significantly on Vertex sales and Apex remaining on schedule.  The
        Company anticipates that price erosion and market competition will
        continue to reduce the contributions to earnings from its existing
        Recordable CD sales.  The Company's working capital requirements
        will remain high and there is no assurance that the Company will be
        able to raise additional financing from a second anticipated
        offshore private placement.
       


            All the technical challenges of the Apex product have not yet
        been solved.  The Company is in the process of negotiating with an
        asset- based lender for a new credit facility, which if not
        finalized could constrain growth.  A breakdown of an understanding
        with a strategic vendor partner could materially adversely affect
        the Company.  The nonrecurring costs of defending the class action
        lawsuit vigorously may be significant during the remainder of the
        year.
        


            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.
        


                              PINNACLE MICRO, INC.
                            CONDENSED BALANCE SHEETS

                                  (Unaudited)
        
                                                 June 29,    December 30,
                                                    1996           1995
        Assets
        Current assets:
        Cash and cash equivalents             $2,720,000     $3,606,000
        Accounts receivable, net               8,741,000     11,354,000
        Income taxes receivable                  921,000        999,000
        Inventories                           14,337,000     11,413,000
        Prepaid expenses and other current
         assets                                1,329,000        961,000
        Deferred income taxes                  1,058,000      1,058,000
        Total current assets                  29,106,000     29,391,000
        Furniture and equipment, net           2,113,000      2,098,000
        Deferred income taxes                    213,000        213,000
        Other assets                             322,000        303,000
        Total assets                         $31,754,000    $32,005,000
        
        Liabilities and Stockholders' Equity
        Current liabilities:
        Accounts payable                     $13,929,000    $11,644,000
        Accrued expenses                       1,571,000      1,244,000
        Payroll related liabilities            1,106,000        956,000
        Note payable to bank and current
         portion of long-term debt             5,000,000          6,000
        Total current liabilities             21,606,000     13,850,000
        Long-term debt, less current portion          --         14,000
        Accrued litigation settlement            980,000      1,400,000
        Commitments and contingencies
        Stockholders' equity:
        Common stock                               8,000          8,000
        Additional paid-in capital            16,578,000     16,158,000
        Retained earnings                    (7,053,000)        775,000
        Foreign currency translation adjustment(365,000)      (200,000)
        Total stockholders' equity             9,168,000     16,741,000
        Total liabilities and stockholders'
         equity                              $31,754,000    $32,005,000
        

                              PINNACLE MICRO, INC.
                       CONDENSED STATEMENTS OF OPERATIONS

                                  (Unaudited)
                 (Dollars in thousands, except per share data)
        
                                13 Weeks     13 Weeks   26 Weeks    26 Weeks
                                  Ended        Ended      Ended       Ended
                                 June 29,     July 1,    June 29,    July 1,
                                  1996         1995        1996       1995
        
        Net sales                $12,333     $20,600     $29,767    $40,785
        Cost of sales             10,180      15,201      24,486     29,702
        Gross profit               2,153       5,399       5,281     11,083
        
        Operating expenses:
        Selling, general and
         administrative            4,429       4,106       9,681      8,798
        Research and development   1,436         891       3,028      1,680
        Nonrecurring charges          87         183         251        408
        Total operating
         expenses                  5,952       5,180      12,960     10,886
        
        Operating income (loss)  (3,799)         219     (7,679)        197
        Interest income (expense)  (114)          45       (146)         86
        Income (loss) before
         income taxes            (3,913)         264     (7,825)        283
        Income tax expense            --         102           3        109
        Net income (loss)       $(3,913)        $162    $(7,828)       $174
        
        Net income (loss) per
         share                   $(0.49)       $0.02     $(0.99)      $0.02
        
        Weighted average common
         shares outstanding        7,917       7,929       7,892      7,928
        

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


SMITH'S FOOD & DRUG CENTERS, INC. ANNOUNCES RESULTS FOR THE SECOND QUARTER AND THE FIRST HALF OF 1996


        


            SALT LAKE CITY, July 23, 1996 - Smith's Food & Drug
        Centers, Inc. (NYSE: SFD) today announced results for the second
        quarter and first half ended June 29, 1996.
        


            On May 23, 1996, Smith's Food & Drug Centers, Inc. ("Smith's" or
        the "Company") completed its acquisition by merger of Smitty's
        Supermarkets, Inc. ("Smitty's"), a 28-store Arizona supermarket
        chain and also completed a recapitalization of the Company which
        included the redemption of approximately one-half of the Company's
        Common Stock.  Accordingly, the results for 1996 reflect only five
        weeks of operations from the Smitty's stores.  As reported earlier,
        Smith's closed its California region comprised of 34 stores and a
        large distribution center during the first quarter of 1996.  The
        closure of the California region and merger with Smitty's causes the
        comparisons of quarter and first half results to the prior year's
        comparable periods not to be meaningful.
        


        SECOND QUARTER RESULTS


            Sales for the second quarter 1996 were $690.0 million, a
        decrease of 10.4% from the second quarter last year.  The sales
        decrease was primarily attributable to changes in the number of
        operating stores. Since the end of the second quarter of 1995, the
        Company closed its 34 California stores, opened an additional 10
        stores in other operating areas, and acquired 28 stores in the
        Smitty's merger.  Excluding California, net sales increased $93.2
        million, or 15.6%, from $596.8 million in 1995 to $690.0 million in
        1996.  Excluding California, same store sales for the 13 week period
        decreased .9% compared to a decline of 2.7% in the first quarter of
        1996.
       


            The Company had a net loss of $174.7 million for the quarter
        compared to net income of $9.0 million in the second quarter of
        1995. The loss was primarily attributable to one-time expenses
        resulting from the merger and recapitalization and one-time charges
        related to the California disposition totaling $183.3 million after
        tax.  Excluding these expenses and charges, net income for the
        quarter totaled approximately $8.6 million or $.39 per common share.
        The average number of common shares outstanding during the quarter
        totaled 21.3 million, compared to 25.1 million last year.  (There
        are currently 15.8 million common shares outstanding reflecting the
        recapitalization of the Company and the issuance of shares to the
        former Smitty's shareholders in connection with the merger with
        Smitty's.)  The pre-tax LIFO charge for the second quarter was $1.8
        million compared to $1.0 million last year.
        


            Excluding the expenses and charges related to the merger,
        recapitalization and California disposition, earnings before
        interest, taxes, depreciation, amortization and LIFO (EBITDA) for
        the quarter increased 13.1% to $61.4 million, or 8.9% of sales,
        compared to EBITDA of $54.3 million, or 9.1% of sales, last year.
        The increase in EBITDA resulted primarily from the 10 new stores
        which Smith's opened outside California since the end of the second
        quarter of 1995.
        


        FIRST HALF RESULTS


            Sales for the first half (26 weeks) ended June 29, 1996 were
        $1.38 billion, a decrease of 8.8%.  Excluding California, net sales
        increased $129.0 million, or 10.9% during the first six months.
        Excluding California, same stores sales for the first half decreased
        1.8%.
       


            The net loss for the first half totaled $175.8 million or $7.58
        per common share, compared to net income of $18.5 million or $.73
        per common share for the comparable period last year.  The decrease
        was attributable to the expenses and charges discussed above.
        Excluding these expenses and charges, net income for the first half
        totaled approximately $22.3 million or $.94 per common share.  The
        average number of common shares outstanding during the first half
        were 23.2 million.  The pre-tax LIFO charge for the first half
        totaled $3.5 million compared to $2.0 million for the comparable
        period last year.
        


            Excluding the expenses and charges related to the merger,
        recapitalization, and California disposition, EBITDA for the first
        half increased 9.8% to $120.5 million, or 9.2% of sales, compared to
        EBITDA of $109.7 million or 9.3% of sales, in the comparable period
        last year.
        


        EXPANSION


            During the first half of the year, the Company opened one new
        store in Cedar City, Utah, acquired the 28 Smitty's stores in
        Arizona and closed 34 stores in California.  Two of the Smitty's
        stores were subsequently leased to other retailers.  As of June 29,
        1996, the Company operated 147 stores, 135 of which were large food
        and drug combination stores, with total square footage of
        approximately 10.0 million.  The Company plans to open three
        additional new stores during the remainder of 1996, with total
        square footage of 180,000.
       


        MERGER AND RECAPITALIZATION


            On May 23, 1996, Smith's repurchased approximately one-half of
        its 25.1 million outstanding shares of Common Stock at $36.00 per
        share and issued 3.2 million shares of its Class B Common Stock in
        connection with the Smitty's merger.  To finance the transactions,
        Smith's (i) entered into a new senior secured bank credit facility
        under which Smith's borrowed $805 million of term loans and (ii)
        issued and sold $575 million of 11 1/4% Senior Subordinated Notes
        due 2007 in a public offering.
   

     
            Al Rowland, Smith's President and Chief Operating Officer, said,
        "I am satisfied with the transition we have made with the merger of
        the Smith's-Smitty's stores in Arizona.  We are looking forward to
        realizing the benefits that increased market share and operating
        synergies will provide us in the future."
        


            The Company operates stores in seven Intermountain and
        Southwestern states with principal markets in Salt Lake City,
        Phoenix, Las Vegas and Albuquerque.
        



                      SMITH'S FOOD & DRUG CENTERS, INC.
                      Consolidated Statements of Income

                                 (Unaudited)
            (Dollar amounts in thousands, except per share data)
        
                                       Thirteen                Twenty-Six
                                      Weeks Ended             Weeks Ended
                                    Jun 29,  Jul 1,        Jun 29,    Jul 1,
                                      1996     1995         1996        1995
        
         Net sales                $690,023 $770,405   $1,383,188  $1,517,078
         Cost of goods sold        533,312  597,882    1,079,918   1,176,233
                                   156,711  172,523      303,270     340,845
         Expenses:
           Operating, selling
             and administrative    130,350  116,698      241,703    229,468
           Depreciation and
             amortization           21,432   25,713       44,071     50,409
           Interest                 22,655   15,172       37,092     30,141
           Amortization of deferred
             financing costs           772      108          880        216
           Restructuring Charges   201,622               201,622
                                   376,831  157,691      525,368    310,234
         INCOME (LOSS) BEFORE
         INCOME TAXES AND
         EXTRAORDINARY CHARGE     (220,120)  14,832     (222,098)    30,611
         Income taxes (benefit)    (87,245)   5,800      (88,045)    12,100
         INCOME (LOSS) BEFORE
         EXTRAORDINARY CHARGE     (132,875)   9,032     (134,053)    18,511
         Extraordinary charge on
           extinguishment of debt,
           net of tax benefit       41,782                41,782
         NET INCOME (LOSS)       $(174,657)  $9,032    $(175,835)   $18,511
        
         Income (loss) per share of Common Stock:
           Income (loss) before
             extraordinary charge   $(6.24)   $0.36       $(5.78)     $0.73
           Extraordinary charge       1.96                  1.80
           Net income (loss)        $(8.20)   $0.36       $(7.58)     $0.73
         Average number of common
           shares outstanding
           (In thousands)           21,297   25,139       23,184     25,314
        

                       SMITH'S FOOD & DRUG CENTERS, INC.
                          Consolidated Balance Sheets

                                  (Unaudited)
                         (Dollar amounts in thousands)
        
                                                June 29, 1996   July 1, 1995
         ASSETS
         CURRENT ASSETS
           Cash and cash equivalents            $   45,379       $   13,447
           Rebates and accounts receivable          27,419           23,119
           Refundable income taxes                  40,878
           Inventories                             328,674          366,200
           Prepaid expenses and deposits            19,273           34,785
           Deferred tax asset                      110,621              300
           Assets held for sale                    111,402
         TOTAL CURRENT ASSETS                      683,646          437,851
         PROPERTY AND EQUIPMENT
           Land                                    193,086          309,261
           Buildings                               578,063          631,350
           Leasehold improvements                   52,507           57,887
           Property under capitalized leases        32,120
           Fixtures and equipment                  508,881          598,943
                                                 1,364,657        1,597,441
           Less allowances for
             depreciation and amortization         394,346          394,936
                                                   970,311        1,202,505
         GOODWILL, less accumulated
           amortization of $312,571                112,752
         OTHER ASSETS                               87,604           17,024
                                                $1,854,313       $1,657,380
        
         LIABILITIES AND STOCKHOLDERS' EQUITY
         CURRENT LIABILITIES
           Trade accounts payable               $  220,601       $  207,734
           Accrued sales and other taxes            32,936           35,217
           Accrued payroll and related benefits     67,328           56,778
           Other accrued expenses                   80,715           41,660
           Current maturities of long-term debt     26,739           20,000
           Current maturities of obligations
             under Capital Leases                    1,194
           Current maturities of Redeemable
             Preferred Stock                                            634
           Accrued restructuring costs              65,826
         TOTAL CURRENT LIABILITIES                 495,339          362,023
         LONG-TERM DEBT, less current maturities 1,374,206          709,619
         OBLIGATIONS UNDER CAPITAL LEASES,
           less current portion                     25,466
         ACCRUED RESTRUCTURING COSTS, less
           current portion                          20,900
         DEFERRED INCOME TAXES                      44,384           94,000
         OTHER LONG-TERM LIABILITIES                30,513            5,419
         REDEEMABLE PREFERRED STOCK,
           less current maturities                   3,319            4,410
         COMMON STOCKHOLDERS' EQUITY
           Convertible Class A Common Stock, par
             value $.01 per share:  Authorized
             20,000,000 shares; issued and
             outstanding, 5,195,261 shares in 1996
             and 11,925,019 shares in 1995              52              119
           Class B Common Stock, par value
             $.01 per share:  Authorized 100,000,000
             shares; issued 10,606,969 shares in
             1996 and 18,036,992 shares in 1995        106              180
           Additional paid-in capital              193,667          285,609
           Retained earnings (deficit)            (333,639)         304,555
                                                  (139,814)         590,463
           Less Treasury Shares at cost
             (4,968,454 shares in 1995)                             108,554
                                                  (139,814)         481,909
                                                $1,854,313       $1,657,380
        

                      SMITH'S FOOD & DRUG CENTERS, INC.
                    Consolidated Statements of Cash Flows

                                 (Unaudited)
                               (In thousands)
        
                                                  Twenty-Six     Twenty-Six
                                                  Weeks Ended    Weeks Ended
                                                June 29, 1996   July 1, 1995
         OPERATING ACTIVITIES:
           Net income (loss)                      $ (175,835)     $  18,511
           Adjustments to reconcile net income
             (loss) to net cash provided by
             (used in) operating activities:
               Depreciation and amortization          44,071         50,409
               Deferred income taxes (benefit)       (74,189)         5,600
               Restructuring charges                 201,622
               Other                                     303            393
                                                      (4,028)        74,913
               Changes in operating assets and
                 liabilities:
                   Rebates and accounts receivable     5,171          2,477
                   Refundable income taxes           (40,878)
                   Inventories                       112,132         23,364
                   Prepaid expenses and deposits      11,808        (18,927)
                   Trade accounts payable            (30,633)       (28,109)
                   Accrued sales and other taxes     (12,151)         3,076
                   Accrued payroll and related
                    benefits                          (8,231)       (1,949)
                   Accrued other expenses            (18,470)         4,066
                   Accrued restructuring costs       (48,636)
         CASH PROVIDED BY (USED IN)
         OPERATING ACTIVITIES                        (33,916)        58,911
         INVESTING ACTIVITIES:
           Additions to property and equipment       (64,996)       (65,697)
           Proceeds from sale of property
             and equipment                            96,846          2,648
           Other                                     (62,159)           (28)
         CASH USED IN INVESTING ACTIVITIES           (30,309)       (63,077)
         FINANCING ACTIVITIES:
           Additions to long-term debt             1,380,000         25,000
           Payments on long-term debt               (830,536)        (8,855)
           Redemptions of Preferred Stock             (1,000)          (383)
           Purchases of Treasury Stock              (452,405)        (7,845)
           Proceeds from sale of Treasury Stock        1,227          2,920
           Payment of dividends                       (3,761)        (7,412)
           CASH PROVIDED BY FINANCING ACTIVITIES      93,525          3,425
         NET INCREASE (DECREASE) IN
         CASH AND CASH EQUIVALENTS                    29,300           (741)
         Cash and cash equivalents at
           beginning of year                          16,079         14,188
         CASH AND CASH EQUIVALENTS AT END OF PERIOD  $45,379        $13,447
        
         SUPPLEMENTAL SCHEDULE OF BUSINESS ACQUISITION
           Fair value of assets acquired          $  352,745
           Value of stock issued                     (72,173)
           Liabilities assumed                    $  280,572
        

CONTACT:  Robert D. Bolinder or Matthew G. Tezak, 801-974-1400,
        both of Smith's Food & Drug Centers, Inc.


Barneys expresses outrage at Saks - Isetan agreement


        


            NEW YORK  --  July 23, 1996  --  Barney's Inc. today
        issued the following statement in response to the announcement by
        Saks Holding, Inc. and Isetan Company Limited that they have agreed
        to investigate the feasibility of developing a joint plan of
        reorganization for Barneys.
        


            We are outraged that Isetan Company Limited has entered into an
        agreement with Saks that interferes with Barneys' negotiations with
        Saks and other prospective investors during the company's exclusive
        period.  Since the commencement of the Chapter 11 cases, Barneys has
        had the exclusive right to file a plan of reorganization, and it
        expects to retain that right for the foreseeable future.  
        


            Barneys offered Saks the opportunity to sign a confidentiality
        agreement similar to that signed by other prospective investors, but
        Saks refused to do so.  
        


            Barneys is concerned that Isetan may have violated its
        confidentiality agreement with Barneys and its fiduciary duty as a
        member of the Creditors' Committee.
        


            Barneys reiterated that while it is negotiating with several
        interested investors, the company is not for sale.  
        


            Barney's Inc. and certain of its subsidiaries voluntarily filed
        a petition of reorganization under Chapter 11 on January 10, 1996.
        The company employees approximately 2000 employees in 14 stores in
        New York City and Manhasset, New York; Beverly Hills and Costa Mesa,
        California; Chicago, Illinois; Dallas and Houston, Texas; Troy,
        Michigan; Short Hills, New Jersey; Chestnut Hills, Massachusetts;
        Westport, Connecticut; Seattle, Washington; seven outlet stores,
        corporate offices in New York and a distribution center in
        Lyndhurst, New Jersey.  
        


        CONTACT:  Sitrick & Co.
                  Sandra Sternberg, 310/788-2850



Intergraph operating results for second quarter of 1996


        


            HUNTSVILLE, Ala.  --  July 23, 1996  --  Intergraph
        Corporation (NASDAQ:INGR) today reported operating results for the
        second quarter ended June 30, 1996.
        


            The Company had a net loss for the quarter of $15.2 million, or
        $.32 per share.  This compares with a net loss in the second quarter
        of 1995 of $22.0 million, or $.48 per share.  Revenue for the
        quarter totaled $268.2 million, compared with $260.2 million in the
        second quarter of 1995.  Orders for new systems totaled $185.4
        million, compared with $175.5 million in the second quarter of 1995
        and $144.3 million in the first quarter of 1996.
        


            Intergraph also announced that the Company has engaged The
        Robinson-Humphrey Company, an investment banking firm, to value and
        sell its 50% ownership interest in Bentley Systems, Inc.


        
                         Summary Financial Information
                        Quarter Ended June 30
(Unaudited)
                                  
                                            1996           19975
        Revenue                             $268,166,000   $260,167,000
        Loss before restructuring charge
         and non-operating income (expense)  (14,749,000)   (21,616,000)
        Restructuring charge                         --      (7,470,000)
        Non-operating income (expense)          (430,000)     7,128,000(a)
        Income taxes                                 --             --
        Net loss                             (15,179,000)   (21,958,000)
        Net loss per share                         ($.32)         ($.48)
        Weighted average shares outstanding   46,922,000     45,929,000
        
        (a) Includes a $5.0 million gain ($.11 per share) on the sale
        of an operating unit of the Company.      
        
                        Six Months Ended June 30 (Unaudited)
                                  
                                            1996           1995
        Revenue                             $524,872,000   $517,496,000
        Loss before restructuring charge
         and non-operating income (expense)  (31,486,000)   (44,212,000)
        Restructuring charge                         --      (7,470,000)
        Non-operating income (expense)         9,916,000(a)   7,252,000(b)
        Income taxes                                 --             --
        Net loss                             (21,570,000)   (44,430,000)
        Net loss per share                         ($.46)         ($.97)
        Weighted average shares outstanding   46,947,000     45,766,000
        
        (a) Includes a gain of $9,373,000 ($.20 per share) from the sale
        of an investment.
        (b) Includes a $5.0 million gain ($.11 per share) on the sale of
        an operating unit of the Company.
        

            Any statement contained in this report which is not a historical
        fact, or which might otherwise be considered an opinion or
        projection concerning Intergraph Corporation, whether expressed or
        implied, is meant as and should be considered a forward-looking
        statement as that term is defined in the Private Securities
        Litigation Reform Act of 1996.  Forward-looking statements are based
        on assumptions and opinions concerning a variety of known and
        unknown risks, including but not necessarily limited to fluctuations
        in customer demand, acceptance of new products, changes in
        technology, product introductions by competitors, and general
        economic conditions, as well as other risks more completely
        described in the Company's filings with the Securities and Exchange
        Commission, including its most recent Annual Report on Form 10-K.
        If any of these assumptions or opinions prove incorrect, any forward-
        looking statements made on the basis of such assumptions or opinions
        may also prove materially incorrect in one or more respects.
        


        Intergraph Background Information
        


            Intergraph Corporation (Huntsville, Ala.) is the world's largest
        company dedicated to supplying interactive computer graphics
        systems.  Products range from point solutions, meeting individual
        and departmental needs, to integrated, enterprise-wide systems.
        


            Noted for delivering interoperable systems and applications,
        Intergraph bases its products on Windows, Windows NT, and UNIX
        operating systems.


        
                 Intergraph Corporation and Subsidiaries
                           Second Quarter 1996

        
        Consolidated Balance Sheets (Unaudited)
                                                June 30,   December 31,
        (In thousands)                                1996        1995
        Assets      
        Cash and cash equivalents                   $ 37,081    $ 56,407
        Accounts receivable, net                     295,735     324,051
        Inventories                                  104,032     111,813
        Refundable income taxes                        5,715       6,391
        Other current assets                          37,619      43,190
        Total current assets                         480,182     541,852
        Investments in affiliated companies           15,167      11,636
        Other assets                                  61,539      59,900
        Property, plant, and equipment, net          195,317     212,657
        Total assets                                $751,205    $826,045
        Liabilities and Shareholders' Equity
        Trade accounts payable                      $ 36,758    $ 54,352
        Accrued compensation                          52,398      51,301
        Other accrued expenses                        59,643      72,479
        Billings in excess of sales                   53,911      63,707
        Income taxes payable                           4,793       6,720
        Short-term debt and current
         maturities of long-term debt                 27,585      32,153
        Total current liabilities                    235,088     280,712
        Deferred income taxes                          3,850       3,881
        Long-term debt                                33,062      37,388
        Total liabilities                            272,000     321,981
        Total shareholders' equity                   480,205     504,064
        Total liabilities and shareholders' equity  $752,205    $826,045
        
        Consolidated Statements of Operations (unaudited)
        
                                               Quarter ended June 30,
        (in thousands except per share amounts)        1996        1995
        Revenues
         Systems                                    $174,915    $161,646
         Maintenance and services                     93,251      98,521
        Total revenues                               268,166     260,167
        Cost of revenues        
         Systems                                     112,973     101,326
         Maintenance and services                     53,823      57,454
        Total cost of revenues                       166,796     158,780
        Gross profit                                 101,370     101,387
        Product development                           25,914      29,530
        Sales and marketing                           67,076      69,490
        General and administrative                    23,129      23,983
        Restructuring charge                             --        7,470
        Loss from operations                         (14,749)    (29,086)
        Interest expense                              (1,182)       (870)
        Interest income                                  395         348
        Other income (expense) - net                     357       7,650
        Loss before income taxes                     (15,179)    (21,958)
        Income taxes                                     --          --
        Net loss                                    ($15,179)   ($21,958)
        Net loss per share                            ($0.32)     ($0.48)
        Weighted average shares outstanding           46,922      45,929
        Systems Orders                              $185,000    $175,000
        

        This unaudited information is provided for analysis purposes
        only.  Some account headings have been abbreviated.  In the
        event of discrepancies with published financial reports, the
        published reports will be conclusive.
        


Note:  Intergraph and the Intergraph logo are registered
        trademarks of Intergraph Corporation.  Other brands and product
        names are trademarks of their respective owners.


        CONTACT:  Intergraph Corporation, Huntsville
                  Larry Laster, 205/730-2103 or 205/730-2104
                  Mary Beth Medley, 205/730-2629



PanAmSat revenues increase by 145% to $60.3 million for second quarter 1996 EBITDA margin was 72% for first six months of 1996


        


            GREENWICH, Conn.  --  July 23, 1996  --  PanAmSat
        Corporation (NASDAQ: SPOT) announced today that total revenues were
        $60.3 million for the three months ended June 30, 1996, an increase
        of 145 percent over total revenues of $24.6 million for the same
        period in 1995.  Total revenues for the first six months of 1996
        were $110.7 million, an increase of $66.9 million or 153 percent as
        compared to the same six-month period in 1995.  
        


            Earnings Before Net Interest Expense, Income Taxes, Depreciation
        and Amortization (EBITDA) for the second quarter of 1996 was $43.4
        million, an increase of 212 percent as compared to $13.9 million for
        the same three-month period in 1995.  EBITDA was $79.9 million for
        the six months ended June 30, 1996, an increase of $62.2 million or
        351 percent over the same period in 1995.  EBITDA for the first six
        months of 1995 included a charge for a non-recurring reorganization
        expense of $8.2 million.  
        


            EBITDA was 72 percent of total revenues for the first six months
        of 1996, as compared to 41 percent of total revenues for the same
        period in 1995.  
        


            PanAmSat experienced significant revenue increases during the
        second quarter of 1996 for both broadcast and business
        communications services.  Broadcast services revenue increased by
        188 percent to $49.9 million.  This increase was due primarily to
        revenues for video services on the PAS-3 and PAS-4 satellites.
        Business communications services revenue grew by 47 percent to $10.0
        million as a result of the commencement of several new data network
        and carrier service contracts.  
        


            As of June 30, 1996, PanAmSat had signed contracts of
        approximately $2.0 billion to provide satellite services on the PAS-
        1, PAS-2, PAS-3 and PAS-4 satellites.  In addition, the Company
        signed a binding letter agreement in February 1996 with certain
        partners of the Latin America direct-to-home (DTH) television
        partnership of Televisa, News Corp., Globo and Tele-Communications
        International for services on 48 transponders on the PAS-5 and PAS-6
        satellites at a minimum value of $1.2 billion.  For most of the
        transponders, this value reflects service fees that are equal to the
        company's best estimate of the cost to design, construct, launch,
        insure and operate the satellites and for the balance of the
        transponders, the value reflects service fees that are based on a
        fixed price.  On the cost-based transponders, the company also could
        receive revenue sharing from the DTH venture.  
        


            On April 2, 1996, PanAmSat announced that it had engaged a
        financial advisor to explore alternatives that would enable its
        major stockholders to meet their strategic objectives.  In that
        connection, the Company filed a registration statement with the
        Securities and Exchange Commission for an underwritten secondary
        offering by certain major stockholders of $350 million of common
        stock, which may be pursued as one of the alternatives.  As part of
        this plan to meet its major stockholders' objectives, the Company
        has also asked its financial advisor to explore other options,
        including joint ventures or alliances with other companies and the
        sale or merger of the Company.  No decision has been made regarding
        any of the alternatives.  
        


            PanAmSat is the world's first private-sector company to provide
        global satellite services.  It offers satellite-based video and data
        communications services to more than 300 customers worldwide.  The
        company currently operates a four-satellite global system: PAS-1 and
        PAS-3 over the Atlantic Ocean Region; PAS-2 over the Pacific Ocean
        Region; and PAS-4 over the Indian Ocean Region.  PanAmSat plans to
        launch four additional satellites by early 1998, which will enable
        the company to operate at least two satellites in each ocean region
        worldwide.  The next launch will deploy the PAS-6 Atlantic Ocean
        Region satellite in November 1996.


        
                             PanAmSat Corporation
                    For the Six Months Ended June 30, 1996

        
        Financial Statements
        
        Balance Sheets, June 30, 1996 (unaudited) and December 31, 1995.
        
        Statements of Operations for the Six Months Ended June 30, 1996 and
        1995 (unaudited).
        
        Statements of Operations for the Three Months ended June 30, 1996
        and 1995 (unaudited).
        
        Statements of Cash Flows for the Six Months Ended June 30, 1996 and
        1995 (unaudited).
        
        Notes to Financial Statements.
        
        
                             PanAmSat Corporation
                                BALANCE SHEETS

        
                                               June 30,       December 31,
                                                 1996            1995
        ASSETS                                    (Unaudited)
        
        CURRENT ASSETS:                                                
          Cash and cash equivalents          $    7,400,492    $
        13,562,113
          Accounts receivable, less                         
           allowance for doubtful accounts                  
           of $100,000                            8,102,437
        4,881,255
          Prepaid expenses and other                        
           current assets                        17,815,257
        5,594,999
        TOTAL CURRENT ASSETS                     33,318,186
        24,038,367
                                                     
        SATELLITES AND OTHER PROPERTY AND
         EQUIPMENT, AT COST                     850,048,043
        609,927,311
        Less:  Accumulated Depreciation                  
           and Amortization                (107,270,028)      (79,177,520)
                                            742,778,015       530,749,791
                                                     
        MARKETABLE SECURITIES                   413,489,902
        495,078,866
                                                     
        SATELLITE SYSTEMS UNDER                           
         DEVELOPMENT                            338,215,308
        377,383,581
                                                     
        DEBT ISSUANCE COSTS (Net of                      
         Amortization)                           10,434,598
        11,414,920
                                                     
        OTHER ASSETS                                512,434
        154,287
        TOTAL ASSETS                         $1,538,748,443
        $1,438,819,812
        

                                               June 30,       December 31,
                                                 1996            1995
                                              (Unaudited)          
        LIABILITIES AND EQUITY                                      
        CURRENT LIABILITIES:
         Current portion of long-term debt   $     3,965,891   $
        3,287,250
         Accounts payable                          1,125,653
        834,405
         Accrued interest                          7,109,375
        7,109,375
         Accrued liabilities and taxes             3,630,905
        7,686,452
         Deferred revenue                          6,382,678
        6,009,836
        TOTAL CURRENT LIABILITIES                 22,214,502
        24,927,318
                                                                
        LONG-TERM DEBT                           607,417,526
        575,283,661
                                                                
        DEFERRED INCOME TAXES                     43,805,000
        31,573,000
                                                                
        DEFERRED REVENUE                          71,184,356
        41,656,778
                                                                
        OTHER LIABILITIES                            777,934
        867,934
         TOTAL LIABILITIES                       745,399,318
        674,308,691
                                                                
        COMMITMENTS AND CONTINGENCIES                               
                                                                
        PREFERRED STOCK, 12-3/4% Mandatorily                        
         Exchangeable Senior Redeemable
         Preferred Stock, $0.01 par value,
         20,000,000 shares authorized, 311,134
         shares issued and outstanding, 8,281
         shares for accrued dividends            307,668,167
        287,648,667
                                                                
        STOCKHOLDERS' EQUITY:                                       
          Class A Common Stock, $0.01 par value,                    
           100,000,000 shares authorized,                           
           40,459,432 shares issued and                                    
           outstanding                               404,594
        404,594
          Class B Common Stock, $0.01 par value,                    
           100,000,000 shares authorized,                           
           40,459,431 shares issued and                                
           outstanding                               404,594
        404,594
          Common Stock, $0.01 par value,                            
           400,000,000 shares authorized,                             
           19,081,137 shares issued and              
           outstanding                               190,812
        190,812
          Additional paid-in-capital             477,297,753
        477,297,753
          Retained earnings (deficit)              7,383,205      (
        1,435,299)
        Total Stockholders' Equity               485,680,958
        476,862,454
          TOTAL LIABILITIES AND EQUITY        $1,538,748,443
        $1,438,819,812
        

                             PanAmSat Corporation
                           STATEMENTS OF OPERATIONS

                For the Six Months Ended June 30, 1996 and 1995
                                 (Unaudited)
        
                                            June 30,      June 30,
                                              1996          1995
        REVENUES:                                           
          Unaffiliated parties               $106,510,394   $41,897,278
          Related parties                       4,196,772     1,909,658
                                          110,707,166    43,806,936
        OPERATING EXPENSES:                                 
          Direct expenses-service agreements    3,724,571     2,550,818
          Sales and marketing                   7,233,472     4,194,711
          Engineering and technical services    7,772,119     4,243,250
          General and administrative           12,046,740     6,870,072
          Depreciation and amortization        29,091,687    13,949,024
          Compensation expense related to                     
        corporate reorganization                -         8,153,600
                                           59,868,589    39,961,475
                                                        
          INCOME FROM OPERATIONS               50,838,577     3,845,461
                                                        
        INTEREST INCOME                       (12,269,345)   (7,702,396)
        INTEREST EXPENSE                       14,883,918     9,390,488
          INCOME BEFORE INCOME TAXES           48,224,004     2,157,369
                                                        
        INCOME TAXES                           19,386,000     3,630,000
                                                        
          NET INCOME (LOSS)                    28,838,004    (1,472,631)
                                                        
          PREFERRED STOCK DIVIDEND             20,019,500     7,119,870
                                                        
          NET INCOME (LOSS) TO COMMON SHARES  $ 8,818,504   $(8,592,501)
                                                        
        PRO FORMA NET LOSS TO COMMON SHARES:                  
          HISTORICAL NET LOSS                               $(1,472,631)
          PRO FORMA INCOME TAX BENEFIT                       (1,207,000)
        PRO FORMA NET LOSS                                   (  265,631)
                                                        
        PREFERRED STOCK DIVIDEND                              7,119,870
                                                        
        PRO FORMA NET LOSS TO COMMON SHARES                 $(7,385,501)
                                                        
        ACTUAL AND PRO FORMA EARNINGS (LOSS)                  
         PER COMMON SHARE                       $    0.09   $     (0.09)
                                                          
        ACTUAL AND PRO FORMA WEIGHTED AVERAGE                 
         COMMON SHARES OUTSTANDING            100,359,533    85,675,677
                                     

                             PanAmSat Corporation
                           STATEMENTS OF OPERATIONS

              For the Three Months Ended June 30, 1996 and 1995
                                 (Unaudited)
        
                                            June 30,      June 30,
                                              1996          1995
        REVENUES:                                             
          Unaffiliated parties                $57,762,893   $23,691,417
          Related parties                       2,521,148       902,559
                                           60,284,041    24,593,976
        OPERATING EXPENSES:                                   
          Direct expenses-service agreement     2,313,109     1,229,545
          Sales and marketing                   4,208,541     2,274,461
          Engineering and technical services    4,300,648     2,215,940
          General and administrative            6,109,648     3,480,393
          Depreciation and amortization        15,841,368     6,860,670
          Compensation expense related to                       
         corporate reorganization              -          1,537,250
                                           32,773,314    17,598,259
                                                          
          INCOME FROM OPERATIONS               27,510,727     6,995,717
                                                          
        INTEREST INCOME                        (5,709,489)   (5,117,769)
        INTEREST EXPENSE                        7,813,399     3,111,588
          INCOME BEFORE INCOME TAXES           25,406,817     9,001,898
                                                          
        INCOME TAXES                           10,211,000     3,630,000
                                                          
          NET INCOME                           15,195,817     5,371,898
                                                          
          PREFERRED STOCK DIVIDEND             10,191,631     7,119,870
                                                          
          NET INCOME (LOSS) TO COMMON SHARES  $ 5,004,186   $(1,747,972)
                                                            
                                                          
          EARNINGS (LOSS) PER COMMON SHARE    $      0.05   $     (0.02)
          WEIGHTED AVERAGE COMMON SHARES     
           OUTSTANDING                        100,462,257    85,675,677
        

                             PanAmSat Corporation
                           STATEMENTS OF CASH FLOWS

               For the Six Months Ended June 30, 1996 and 1995
                                 (Unaudited)
        
                                                         June 30,       June 30,
                                                           1996           1995
        CASH FLOWS PROVIDED BY OPERATING ACTIVITIES:
        
          Net income (loss)                                $ 28,838,004  $
        (1,472,631)
          Adjustments to reconcile net income to                       
        net cash provided by operating activities:                   
           Depreciation and amortization                     29,091,687
        13,949,024
           Deferred income taxes                             12,232,000
        3,630,000
           Accretion of interest on senior subordinated                   
            discount notes                                   19,614,741
        17,566,302
           (Accretion) collection of interest on marketable                
            securities                                       (1,363,871)
        484,390
           Interest expense capitalized                     (16,727,322)
        (18,040,680)
           Compensation expense related to corporate                      
            reorganization
        -         8,153,600
           Changes in assets and liabilities:                             
             Increase in accounts receivable                 (3,221,182)
        (2,903,548)
         Increase in prepaid expenses and other current                 
              assets                                        (12,220,258)
        (1,640,986)
             Decrease in tax distribution receivable
        -         2,811,733
             Increase (decrease) in accounts payable            291,248
        (1,342,197)
             Decrease in accrued liabilities and taxes       (4,055,547)
        (814,394)
             Increase in deferred revenue                    29,900,420
        30,484,129
         Decrease in other liabilities                      (90,000)        -
               NET CASH PROVIDED BY OPERATING ACTIVITIES     82,289,920
        50,864,742
                                                                   
        CASH FLOWS FROM INVESTING ACTIVITIES:                          
         Expenditures for property and equipment             (8,123,439)
        (11,679,167)
         Expenditures for satellite systems under                       
           development                                     (161,180,546)
        (202,473,697)
         Purchase of marketable securities and cash
        -      (335,987,151)
         Proceeds from insurance claim receivable
        -       191,084,380
         Proceeds from maturity of marketable securities     82,952,835
        50,000,000
         Increase in other assets                              (377,004)
        (83,214)
            NET CASH USED IN INVESTING ACTIVITIES           (86,728,154)
        (309,138,849)
                                                                   
        CASH FLOWS FROM FINANCING ACTIVITIES:
        
         Proceeds from preferred stock offering
        -      275,000,000
         Preferred stock issuance costs
        -      (11,500,471)
         Repayments of long-term debt                        (1,723,387)
        (832,219)
        NET CASH PROVIDED BY (USED IN) FINANCING                           
         ACTIVITIES                                      (1,723,387) 262,667,310
                                                                   
        NET INCREASE(DECREASE)IN CASH AND CASH                           
         EQUIVALENTS                                     (6,161,621)   4,393,203
                                                                   
        CASH AND EQUIVALENTS, beginning of period            13,562,113
        22,854,209
                                                                   
        CASH AND EQUIVALENTS, end of period               $   7,400,492 $
        27,247,412
                                                                   
        SUPPLEMENTAL DISCLOSURES OF CASH FLOW                          
        INFORMATION:
          Cash received for interest                      $  10,905,475 $
        8,612,568
          Cash paid for interest                          $  11,996,785 $
        9,864,866
          Cash paid for income taxes                      $   8,459,139 $
        -
        

                             PanAmSat Corporation
                        NOTES TO FINANCIAL STATEMENTS

           

                               
                                          (1) Principles of Presentation.
        The interim unaudited Financial Statements should be read in
        conjunction with the audited Financial Statements and the
        notes thereto for the year ended December 31, 1995 included in
        the Company's Annual Report on Form 10-K, as filed with the
        Securities and Exchange Commission (Commission File Number 33-
        63284) (the "Annual Form 10-K"). The balance sheet as of June
        30, 1996, and the related statements of operations,
        stockholders' equity and cash flows for the six months ended
        June 30, 1996 and 1995 have been prepared by the Company and
        are unaudited. In the opinion of management, all adjustments
        which are of a normal recurring nature necessary to present
        fairly the financial position, results of operations and cash
        flows as of and for the three and six month periods ended June
        30, 1996 and 1995 have been made. The accounting policies
        followed during the interim periods reported are in conformity
        with generally accepted accounting principles and are
        consistent with those applied for annual periods and described
        in the Company's Annual Form 10-K.  The results of operations
        for the six month periods ended June 30, 1996 and 1995 are not
        necessarily indicative of the operating results for the full
        year.


           (2) DTH Joint Venture.


        During the third quarter of 1994, the Company announced its
        intention to provide DTH services in Latin America.  In
        connection therewith, the Company and Grupo Televisa, S.A.
        ("Televisa") signed a binding memorandum  of understanding in
        the first quarter of 1995 (the "Original MOU") to put into
        operation a digital DTH satellite television broadcasting
        business covering Latin America, the Caribbean and certain
        areas of the southern United States.
       

    
        In November 1995, the Company announced that it would serve as
        a satellite service provider for the Latin America DTH service
        ("Latin America DTH") to be offered by the Globo Organization
        ("Globo"), Televisa, The News Corporation Limited ("News Corp.")
        and Tele-Communications International, Inc. ("TCI").
           


        On February 29, 1996, the Company signed a binding letter
        agreement with Globo, Televisa and News Corp. (the "1996
        Letter Agreement") to provide service to a series of joint
        ventures (the "Latin America JVs") to be formed by them and
        TCI on 48 transponders ultimately on PAS-5 and PAS-6, with
        temporary service on PAS-3 pending the commencement of service
        on PAS-6.  This capacity would enable the Latin America JVs to
        broadcast to Latin America, the Caribbean, and certain areas
        of the southern United States approximately 500 digital
        channels and to permit distribution of program packages of
        approximately 120 digital channels to specific market areas.
        Also under the 1996 Letter Agreement, Globo, Televisa, and
        News Corp. have agreed to proportionally guarantee 100 percent
        of the fees for transponder services to the Latin America JVs.
        These guarantee obligations may be assigned to TCI and, with
        the Company's prior written consent, to new equity
        participants in the Latin America JVs. The Company will
        receive minimum service fees equivalent to the Company's best
        estimate of the cost per transponder to the Company of
        designing, launching, operating and insuring each satellite
        for the transponders used by the Latin America JVs.  The
        Company also will receive additional revenue based on
        subscriber revenues of the Latin America JVs above a certain
        threshold, except that the transponders on PAS-3 and PAS-6
        that will be used by the Latin America JV operating in Brazil
        will be charged on a fixed fee basis.
           


        Under a verbal agreement with Televisa, the Company would be
        granted an option for ten years to obtain 10- to 15-percent
        interests from Televisa in the Latin America JVs that would
        service Latin America, the Caribbean and the southern United
        States, but not Brazil.  The purchase price would be equal to
        the Company's pro rata share of Televisa's aggregate
        contributions to the Latin America JVs providing such service,
        less all distributions by such Latin America JVs to Televisa,
        plus interest.  The Company has no interest nor any options to
        acquire an interest in the Latin America JVs that will
        provide DTH service in Brazil.  Upon the execution of binding
        agreements incorporating the verbal agreements in principle and
        relating to the Spain joint venture with Televisa described
        below, the Original MOU will be terminated.
        


        The Company and Televisa have also announced their intention to
        provide DTH services through a joint venture in Spain with the
        capacity to broadcast approximately 24 to 80 digital channels to
        subscribers in Spain using small 24-36 inch (60-90 cm) antennas.
        It is anticipated that the Company will ultimately acquire up to
        49% (subject to pro rata dilution with Televisa upon admission
        of new investors, if any) of this venture for a price equal to
        the pro rata aggregate amount of Televisa's contributions to the
        venture, less all distributions by the venture to Televisa, plus
        interest.
        


        The Company has significant investments in and commitments for
        PAS-5 and PAS-6 which it intends to use in the proposed DTH
        business.  Globo, Televisa and News Corp. plan to enter into one
        or more definitive agreements to implement the terms agreed in
        and contemplated by the 1996 Letter Agreement.  The Company's
        acquisition of an option to acquire equity interests in certain
        of the Latin America JVs and the joint venture in Spain is
        subject to the execution by such parties of such definitive
        agreements and to the Company's execution of definitive
        agreements with Televisa.  No assurance can be given that such
        definitive agreements will be consummated, or that the Latin
        America JVs or the joint venture in Spain will be successful.


           (3) PAS-3 Placed in Service.


        The Company's PAS-3 satellite (a replacement for a satellite
        lost as a result of a launch failure in December 1994) was
        launched on January 12, 1996 and commenced service on February
        19, 1996.  As a result,  approximately $232 million of costs
        included in satellite systems under development was
        transferred to satellites in service and the Company incurred
        $15.0 million of long-term debt in accordance with the
        satellite performance incentive terms in its PAS-3 satellite
        construction contract during the quarter ended March 31, 1996.


           (4) Stockholders' Strategic Objectives.


        On April 2, 1996, the Company announced that it had engaged a
        financial advisor to explore alternatives that would enable
        its major stockholders to meet their strategic objectives.  In
        that connection, the Company filed a Registration Statement on
        Form S-1 on that date with the Securities and Exchange
        Commission for an underwritten secondary offering by certain
        of its major stockholders of $350 million of common
        stock, which may be pursued as one of the alternatives.
        As part of this plan to meet its major stockholders' objectives,
        the Company has also asked its financial advisor to explore
        other options, including joint ventures or alliances with
        other companies and the sale or merger of the Company.
        No decision has been made regarding any of the alternatives.
       


        CONTACT:  PanAmSat
                  Kevin Burgoyne, 203/622-6664



MADISON SPORTS AND
ENTERTAINMENT GROUP ANNOUNCES INTENT TO ACQUIRE SEAESCAPE CRUISES LTD.


        


            TANNERSVILLE, N.Y., July 23, 1996  -  Madison Sports and
        Entertainment Group, Inc. (Nasdaq Bulletin Board: MSET), today
        announced that they have signed an Asset Purchase Agreement with
        SeaEscape Cruises, Ltd., a
Bahamian Corporation, to acquire the name
        and business operations of SeaEscape.  The agreement is subject to
        approval by the U.S. Bankruptcy Court and contingent upon Madison
        making satisfactory arrangements with various concessions, operators
        and service providers.
        


            SeaEscape Cruises runs day cruises from Ft. Lauderdale, Florida
        to Freeport, Bahamas as well as daily mini-cruises to nowhere.
        Passengers experience fine gourmet dining and world class gaming
        facilities.  The SeaEscape combination of affordability and first
        quality amenities resulted in total revenues in 1995 of over $20
        Million Dollars (U.S.). SeaEscape has been sailing for 15 years and
        has carried more than 6 Million paying passengers.
        


            Joseph D. Radcliffe, Chairman of Madison states: "We welcome
        SeaEscape to the Madison family of sports and entertainment
        companies. SeaEscape fits nicely with Madison's over-all concept and
        we should be able to expand its markets significantly.  We plan to
        introduce SeaEscape as an upscale venue for corporate, shareholder
        and sales meetings to the business community.
        


            Madison Sports and Entertainment Group, Inc. is a conglomerate
        that has a number of divisions including: a snowboard division, KTL
        Financial - which has a sports apparel line, and Global Trading
        which does importing and exporting as well as closeouts.


        CONTACT:  Joe Radcliffe of Madison Sports and Entertainment Group,
        Inc., 518-589-9190



AMERICAN PAGING REPORTS SECOND QUARTER RESULTS


        


            MINNEAPOLIS, MN -- July 23, 1996 -- American Paging, Inc. (AMEX:
        APP) today announced second quarter 1996 operating results.  As
        expected, the Company posted nearly flat customer unit and service
        revenue growth as a result of its comprehensive restructuring
        initiative launched during the third quarter of 1995.
        


           Second Quarter Summary
        


            "American Paging continued to make progress on the restructuring
        initiative we began in September 1995," commented John R. Schaaf,
        president and chief executive officer.  "Prior to the restructuring,
        the Company's back office functions had been performed in 17
        geographically dispersed service centers.  Our restructuring plan
        called for the build out of our centralized Customer Telecare Center
        ("CTC") by the end of the first quarter.  We met this goal.  Our
        plan called for the transfer of our back office customer service and
        administration functions to the new CTC by the end of the second
        quarter.  We met this goal."  All of the Company's customer service
        functions, including order fulfillment, administration, billing,
        credit and collections, are now performed at the CTC, 24-hours-a-
        day, seven days-per-week.
        


            "While we anticipated slow sales growth during the first half of
        the year as we restructured the organization, the magnitude of the
        impact was greater than expected.  Now that the primary hurdles of
        the back office consolidation are behind us, we intend to re-focus
        our efforts in terms of sales and marketing, with a goal of quarter
        to quarter increases in units served and service revenue growth."

        
        Second Quarter Results:


            Service revenue increased 3 percent on a 9 percent increase in
        units in service compared to the same period in 1995.  As
        anticipated, growth has been nearly flat over the past few quarter
        due to the restructuring of the Company's field sales and service
        offices.  Also contributing to slower service revenue growth are
        competitive pricing declines, resulting in an 8 percent decline in
        the average monthly service revenue per unit ("ARPU") to $9.73 from
        $10.56 for the second quarter of 1995.
   

     
            Operating cash flow was $927,000 for the quarter.  During the
        quarter, the Company recorded pretax charges of approximately $1.5
        million related to restructuring efforts, primarily for consulting
        fees, travel, training and duplicative staffing.  Excluding these
        restructuring charges, the Company's operating cash flow would have
        been $2.4 million, or 10 percent of service revenue.
      

  
            Service operating expenses increased 20.3 percent to $30.1
        million, principally due to increased costs to serve the expanded
        customer base, higher selling costs, restructuring charges, and
        higher depreciation and amortization expense.  As a result, the
        Company incurred in operating loss of $6.6 million.  In addition,
        the Company incurred $1.4 million interest expense, net of $1.4
        million capitalized on narrowband Personal Communications Services
        ("PCS") licenses, contributing to the second quarter net loss of
        $8.3 million.
        


            American Paging, Inc., and 82.3 percent owned subsidiary of
        Telephone and Data Systems, Inc. (AMEX: TDS), is headquartered in
        Minneapolis and provides high-quality, advanced wireless messaging
        communications services to over 803,000 subscribers in 21 states and
        the District of Columbia, covering a total population base of 75
        million.
        


            American Paging's quarterly reports on Form 10-Q and Annual
        Report on Form 10-K are available without charge, to our investors,
        security analysts and other members of the investment community.
        



                             AMERICAN PAGING, INC.
                             Summary Operating Data

        
                                                          Quarter Ended
        (dollars in     June 30,   Mar. 31,  Dec. 31,  Sept. 30,  June 30,
        thousands,        1996       1996      1995      1995       1995
        except ARPU)
        8 Customer units
         in service    803,500    802,100   784,500   776,900    738,600
        Net unit growth  1,400     17,600     7,600    38,300     33,500
        ARPU             $9.73     $10.03    $10.17    $10.63     $10.56
        Average monthly
         churn rate        2.8%       2.7%      2.6%      2.6%       2.5%
        EBITDA(A)         $927     $3,083    $4,160    $4,290     $3,714
        EBITDA(A) (excluding
         restructuring) $2,392     $3,527    $4,542    $6,041     $3,714
        EBITDA margin(A)   3.9%      13.0%     17.5%     17.8%      16.2%
        EBITDA margin(A)
         (excluding
         restructuring)   10.2%      14.9%     19.1%     25.1%      16.2%
        Capital
         Expenditures   $9,515     $8,676   $11,513    $7,073     $8,436
        Baland Sheet
         Highlights:
        Assets:
         Cash and cash
          equivalents   $2,297     $1,607    $4,280    $4,160     $1,515
         Property, plant
          and equipment,
          net          $63,425    $58,437   $59,452   $56,430    $58,868
         Investment in
          PCS, net     $58,236    $56,887   $55,538   $54,797    $54,721
        Liabilities:
         Revolving credit
          agreement   $121,760   $104,914   $94,523   $87,343    $81,893
        
            (A) EBITDA or earnings before interest, taxes, depreciation and
        amortization is a commonly used measure of performance in the paging
        industry and by financial analysts and other who follow the paging
        industry.  However, it should not be considered in isolation or used
        as an alternative in the determination of the Company's operating
        performance and liquidity pursuant to generally accepted accounting
        principles.
        
                              AMERICAN PAGING, ING
                     Consolidating Statement of Operations

                                  (Unaudited)
        
                              Three Months Ended        Increase (Decrease)
                             6/30/96     6/30/96       Amount      Percent
                            (Dollars in thousands, expect per share amounts)
        Service operations
           Revenue           $ 23,493    $ 22,866      $ 627     2.7 percent
           Operating expenses
            Cost of service     7,533       5,973      1,560    26.1 percent
            Selling and
             advertising        6,377       4,309      2,068    48.0 percent
            General and
             administrative     8,697       9,019       (322)   (3.6)percent
            Depreciation and
             amortization(1)    7,494       5,724      1,770    30.9 percent
        (1) includes
        amortizations of $957
        and $923, respectively 30,101      25,025      5,076    20.3 percent
        Service operating
           loss                (6,608)     (2,159)    (4,449)    N/M
        Equipment sales
           Revenue              2,803       3,999     (1,196)  (29.9)percent
           Cost of equipment
            sold                2,762       3,850     (1,088)  (28.3)percent
           Equipment sales
           income                  41         149       (108)  (72.3)percent
        Operating loss         (6,567)     (2,010)    (4,557)    N/M
        Investment and other
         income/(expense)
         Investment loss in
          joint venture          (374)       (377)         3    (0.9)percent
         Interest income           80          39         41   101.2 percent
         Other, net                --          30        (30)  100.0 percent
        Total                    (294)       (308)        14     4.3 percent
        Loss before interest and
         income taxes          (6,861)     (2,318)    (4,543)  196.0 percent
        Interest expense -
         affiliates             1,441       1,534        (93)   (6.1)percent
        Loss before income
         taxes                 (8,302)     (3,852)    (4,450)  115.6 percent
        Income tax expense         38         175       (137)  (78.6)percent
        Net loss             $ (8,340)   $ (4,027)   $(4,313)  107.1 percent
        Weighted average
         Commons shares (000s) 20,047      20,019         28     0.1 percent
        Loss per Common share$  (0.42)   $  (0.20)   $  (0.22) 110.0 percent
        
        N/M:  Percentage change not meaningful.
        
                             AMERICAN PAGING,  ING
                     Consolidating Statement of Operations

                                  (Unaudited)
        
                           Six  Months Ended      Increase (Decrease)
                           6/30/96    6/30/96     Amount      Percent
                        (Dollars in thousands, expect per share amounts)
        
        Service operations
           Revenue           $ 47,201    $ 45,103     $2,098   4.7 percent
           Operating expenses
            Cost of service    14,119      11,425      2,694  23.6 percent
            Selling and
             advertising       11,509       8,451      3,058  36.2 percent
            General and
             administrative    17,402      18,083       (681) (3.8 percent)
            Depreciation and
             amortization(1)   14,663      11,284      3,379  29.9 percent
        
            (1) includes
             amortization of
             $1,928 and
             $1,896
             respectively      57,693      49,243      8,450  (17.2 percent)
        Service operating
           loss               (10,492)     (4,140)    (6,352)   N/M
        Equipment sales
           Revenue              5,405       7,680     (2,275) (29.6 percent)
           Cost of equipment
            sold                5,566       7,579     (2,013) (26.6 percent)
           Equipment sales (loss)/
           income                (161)        101       (262)       N/M
        Operating loss        (10,653)     (4,039)    (6,614) 163.7 percent
        Investment and other
         income/(expense)
         Investment loss in
          joint venture          (668)       (494)      (174)  35.1 percent
         Interest income          122          74         48   62.5 percent
         Other, net                33          58        (25) (43.3 percent)
        Total                    (513)       (362)      (151)  42.0 percent
        Loss before interest and
         income taxes         (11,166)    (4,401)     (6,765) 153.7 percent
        Interest expense -
         affiliates             2,519      2,322         197    8.5 percent
        Loss before income
         taxes                (13,685)    (6,723)     (6,962)(103.6 percent)
        Income tax (benefit)
         expense                   (1)        52         (53)(102.3 percent)
        Net loss             $(13,685)   $(6,775)    $(6,909) 102.0 percent
        Weighted average
         Commons shares (000s) 20,044     20,010          34    0.2 percent
        Loss per Common share  $(0.68)    $(0.34)     $(0.34) 100.0 percent

        
        N/M:  Percentage change not meaningful.


        CONTACT:  Michelle Haupt, Manager-Financial Reporting of American
        Paging, Inc. at 612-623-3100