TCR_Public/960724.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy and Troubled Company News


July 24, 1996



  1. Investors boost Finger/Matrix financial strength in March quarter
  2. Foodbrands America reports second quarter, six month results





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Investors boost Finger/Matrix financial strength in March quarter



            DOBBS FERRY, N.Y.  --  July 24, 1996  --  Finger/Matrix
        Inc.
(NASDAQ EBB:FINX), an electronic fingerprinting pioneer that
        exited Chapter 11 bankruptcy a year ago under new management,
        Wednesday reported that exercise of warrants by stockholders and
        other investments resulted in substantial improvement in its
        financial condition during its second fiscal quarter ended March 31,
        1996.
        


            Thomas T. Harding, president and chief executive officer, said
        current assets more than trebled during the period while current
        liabilities declined, leaving the current ratio at 1.22 to one and
        reversing the Dec. 31 ratio of one to 2.77.
        


            The company also moved from a negative net worth on Dec. 31 of
        $806,902 to a positive figure of $426,159 on March 31, Harding said.
        Cash increased from $406,126 on Dec. 31, to $1,367,433 at the end of
        the March quarter.
        


            The company recorded no sales during the period, since its major
        electronic fingerprinting systems, all completely re-engineered to
        embody its newest patented technology, are just being introduced to
        the marketplace this month.
        


            They are being shown for the first time at the International
        Association for Identification exhibition July 22-25 in North
        Carolina.  Aggressive marketing of these systems both here and
        abroad will begin in the current quarter, Harding said.
        


        CONTACT: Molesworth Associates Inc.
                 Gordon Molesworth, 520/625-0035



Foodbrands America reports second quarter, six month results


        


            OKLAHOMA CITY, OK  --  July 24, 1996  --  Foodbrands
        America, Inc. (NYSE: FDB) today announced results for the second
        quarter and six months of fiscal 1996, ended June 29, 1996.  
        


            Sales increased 37% in the second quarter to $200.7 million from
        $146.6 million reported in the same period last year.  Income from
        continuing operations for the second quarter was $8.7 million or
        $0.70 per share.  These amounts include a tax benefit from the
        reduction of the deferred tax valuation allowance of $6.7 million.
        Excluding the tax benefit, earnings from continuing operations were
        $2.0 million, or $0.16 per share, compared to $1.9 million, or $0.16
        per share, reported in the second quarter of 1995.  Net income for
        the second quarter was $3.7 million, or $0.29 per share, and
        includes an extraordinary loss of $5.1 million, net of taxes,
        incurred with the early extinguishment of debt associated with the
        debt refinancing completed during the quarter.  This compares to a
        net loss in the second quarter of fiscal 1995 of $38.4 million, or
        $3.07 per share, related primarily to the loss on the disposal of
        the Company's Retail Division in May of 1995.  Operating income in
        the second quarter was $11.4 million compared to $7.8 million in the
        second quarter of 1995. During the second quarter, the Company
        determined that a valuation allowance established against its
        deferred tax asset relating primarily to the Company's ability to
        utilize its net operating loss carry forwards (NOLs) in future
        years, was no longer appropriate and was therefore reduced.
        According to Fresh Start Reporting, the tax benefit associated with
        pre-reorganization NOLs was used to eliminate excess reorganization
        value or bankruptcy goodwill and other intangible assets arising
        from bankruptcy.  The remaining $6.7 million resulting from post
        reorganization NOLs was recognized as a tax benefit on the Company's
        income statement.  
        


            For the six months ended June 29, 1996, sales increased 35% to
        $386.7 million from the $286.0 million reported in the first six
        months of fiscal 1995.  Income from continuing operations, including
        the previously discussed tax benefit, was $10.8 million, or $0.87
        per share, for the six month period.  Excluding the tax benefit,
        earnings from continuing operations were $4.1 million or $0.33 per
        share compared to $3.7 million, $0.30 per share, reported in the
        same period of the prior year.  Net income increased to $5.8
        million, or $0.46 per share, from a loss of $38.9 million, or $3.12
        per share reported in the first six months of fiscal 1995.  Included
        in 1995's net loss was the loss from the operations and the disposal
        of the Company's Retail Division of approximately $42.6 million.
        Operating income was $22.8 million compared to $15.5 million in the
        first six months of the prior year.  
        


            Sales and operating income increases in both the quarter and six
        month periods were a result of the acquisitions of KPR Holdings,
        L.P. and TNT Crust, Inc.  completed in December 1995.  The increase
        in sales was also attributable to growth in the Company's existing
        businesses resulting from an increase in unit volume and higher
        product pricing due to an increase in raw material costs.  The
        abrupt increase in the price the Company pays for certain raw
        material resulted in lower earnings for its Deli and Food Service
        Divisions.  
        


            Commenting on second quarter and six month results, R.  Randolph
        Devening, Chairman, President and Chief Executive Officer, stated,
        "While business fundamentals in the Company's Divisions are strong,
        the rapid increase in our raw material costs prevented the earning's
        progression we were targeting.  Higher sales volumes, strict cost
        containments, and increases in product pricing offset much of the
        pressure on margins.  Raw material risk management strategies were
        in place, but could only mitigate part of the adverse impact of the
        dramatic increase in raw material costs.  As we move into the second
        half of the year, the unsettled raw material markets will continue
        to apply margin pressure.  We have modified our pricing and
        implemented other strategies to help reduce the impact.  "  
        


            Mr.  Devening continued, "Operating income, in the second
        quarter, was negatively impacted at the Specialty Brands Division by
        additional charges resulting from ineffective promotion programs,
        which were subsequently eliminated by the Division's new sales
        management team.  Operating income was benefited during the quarter
        by the elimination of accruals no longer required due to the
        settlement of certain patent litigation and second quarter asset
        dispositions.  While progress continues on the repositioning of the
        Specialty Brands Division, performance is not currently at desired
        levels and we anticipate that it will require most of the year
        before the programs initiated to boost momentum are fully reflected
        in the Division's results."  
        


            In a separate announcement, the Company stated that it has
        acquired a new production facility in Concordia, Missouri to meet
        the growing demand for specialty ham products marketed by both the
        Food Service and Deli Divisions.  The facility will be in startup
        phase during the third quarter and in full production during the
        fourth quarter of 1996.  
        


            Foodbrands America produces, markets and distributes frozen and
        refrigerated products targeted to growth segments of the foodservice
        market.  The Company's products include pepperoni, beef and pork
        toppings as well as partially baked pizza crusts, marketed to the
        pizza industry, appetizers, Mexican and Italian foods, sauces,
        soups, and side dishes, and branded and processed meat products.
        Customers include large multi-unit food chains, major foodservice
        distributors, warehouse clubs and grocery store delicatessens.

 
        
                                FOODBRANDS AMERICA, INC.
              Condensed Consolidated Statement of Operations
- Unaudited
                       (in thousands, except per share figures)
        
                                  Three Months Ended   Six Months Ended
                                 6/29/96      7/1/95   6/29/96   7/1/95
        
        Net sales                   $200,710    $146,582   $386,707
        $285,994     
        Cost of sales                160,660     113,995    307,348
        222,242     
        Gross profit                  40,050      32,587     79,359
        63,752     
        
        Operating expenses:
        Selling                   20,454      17,267     38,734    33,736     
        General and
         administrative            6,446       6,484     14,370    12,345     
        Amortization of
         intangible assets         1,723       1,081      3,470     2,162     
         Total operating expenses 28,623      24,832     56,574    48,243     
        Operating income              11,427       7,755     22,785
        15,509     
        
        Other income (expense):
        Interest and
          financing costs         (7,662)     (4,352)   (15,081)   (8,707)     
        Other, net                  (214)       (175)      (396)     (332)     
        Income from continuing operations
        before income taxes        3,551       3,228      7,308     6,470      
        
        Income tax provision
          (benefit)                   (5,156)      1,296     (3,521)
        2,746     
        Income from continuing
         operations                8,707       1,932     10,829     3,724     
        
        Discontinued operations:
        Income (loss) from operations of
        the Retail Division
          (less applicable
          income tax benefit
          1995)                      --       (1,766)       --     (4,121)    
        
        Loss on disposal of
         the Retail Division
         (plus applicable income
         tax expense
         of $10,300)                 --      (38,526)       --    (38,526)    
        
        Extraordinary loss - early
         extinguishment of
         debt (less applicable
         income tax benefit)           (5,051)        --      (5,051)
        --
        
        Net income (loss)            $  3,656   $ (38,360)  $  5,778
        $(38,923)    
        
        Earnings (loss) per share
         - primary and fully diluted:
        Income from
         continuing operations       $   0.70   $    0.16   $   0.87  $
        0.30  
        
        Loss from discontinued
         operations                        --       (0.14)
        --      (0.33)
        
        Loss on disposal of
         discontinued operations           --       (3.09)
        --      (3.09)
        
        Extraordinary loss -
         early extinguishment
        of debt                     (0.41)        --       (0.41)      --  
        Net income (loss)           $    0.29    $  (3.07)   $  0.46   $
        (3.12)
        
        Weighted average number
         of common and
         common equivalent shares outstanding
         - primary and fully diluted   12,471       12,448     12,470
        12,448     
        

        CONTACT:  Bryant Bynum
                  Vice President - Finance,
                  Treasurer and Secretary
                  405/879-4100
                        or
                  Naomi Rosenfeld/Stefanie King
                  Media contact: Stan Froelich
                  Morgen-Walke Associates
                  212/850-5600