Bankruptcy and Troubled Company News

August 12, 1996

  1. Zynaxis Issues Financial Reports
  2. Derma Sciences, Inc. reports second quarter results
  3. Sanctuary Woods Posts First Quarter Gain
  4. BCAM International Inc. reports results for the second quarter
  5. National Record Mart Reports First Quarter Results

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Zynaxis reports increased revenues, reduced losses for the three and six months ended June 30, 1996


            MALVERN, Penn.  --  Aug. 12, 1996  --  Zynaxis Inc.
        (NASDAQ:ZNXS) for the quarter ended June 30, 1996 reported a net
        loss of $703,400 or 7 cents per common share on revenues of

            This loss included research and development and marketing,
        general and administrative expenses of $1,328,700.  For the
        corresponding period of 1995, the net loss was $1,013,900, or 19
        cents per common share on revenues of $49,600, and included research
        and development and marketing general and administrative expenses of

            For the six month period ended June 30, 1996, the company's net
        loss was $1,524,400 or 15 cents per common share on revenues of
        $1,038,700 and research and development and marketing, general and
        administrative expenses of $2,784,700, compared to a net loss of
        $3,048,500 or 58 cents per common share on revenues of $172,700 and
        research and development and marketing, general and administrative
        expenses of $3,947,300 in the comparable period of 1995.

            The results of operations for the three and six months ended
        June 30, 1995 include a net gain of $1,101,300 from the sale of
        certain of the company's diagnostic technologies.  The results of
        operations for the six months ended June 30, 1995 also include a
        $347,400 restructuring charge related to the decision to terminate
        the company's diagnostic operations.

            "The comparisons with 1995 are especially gratifying since the
        1995 results include the one-time impact of the sale of our
        diagnostic businesses," commented Martyn Greenacre, chairman and
        chief executive officer.

            "Over the past year, we have made significant strides in
        optimizing our resources: on a year to date basis compared to 1995,
        our revenues are up, operating expenses are down, and our cash used
        for operations has dropped from $569,000 a month to $215,000 per

            "With the cash we anticipate receiving later this year from the
        recently announced sale of Cauldron Process Chemistry division, we
        should be well positioned to advance our delivery technologies," he

            Zynaxis Inc. develops site-directed delivery systems which
        enhance the effectiveness of vaccines, drugs and biopharmaceuticals.
        Specific applications are commercialized in conjunction with
        corporate partners.  ALK A/S, a leader in allergy immunotherapy, has
        licensed certain of the company's vaccine delivery systems for the
        field of allergy.  Proprietary vaccine delivery technologies are
        also being applied to development of oral vaccines against influenza
        and other infectious diseases.  The company's patented Zyn-Linker
        Molecules Delivery systems are being applied to improved therapy for
        cancer and restenosis and to more efficient delivery of antisense

                                 ZYNAXIS, INC.
         Results of operations and consolidated condensed balance sheets
                             Second quarter of 1996
               Consolidated condensed statements of operations
                        For the three months ended  For the six months ended
                                   June 30,                 June 30,
                               1996        1995          1996       1995
         contract and                                              
         grant revenues      $495,649     $22,810   $1,038,693     $31,479
          Sales                        -       26,789
        -      141,189
                              495,649      49,599    1,038,693     172,668
        Research and
         development          928,726   1,716,727    1,871,613   2,970,066
         and general          400,019     453,170      913,130     977,250
        Restructuring charge        -          -            -      347,436
        Cost of sales               -       7,196           -       40,261    
                            1,328,745   2,177,093    2,784,743   4,335,013
          Other Income
           (expense), net         129,680   1,113,607      221,669
          Net loss              ($703,416)($1,013,887)
          Net loss per
        common share           ($0.07)     ($0.19)      ($0.15)     ($0.58)
          Shares used in
           computing net loss
           per common share    10,153,742   5,263,556    9,917,119
        Consolidated condensed balance sheets
                                                    June 30,  December 31,
                                                      1996       1995
          Cash, cash equivalents, short-term and
          long-term securities                      $168,281   $509,143
          Collaborative, contract & grant revenue
          receivable                                 162,583    111,263
          Other current assets                           158,537     92,726
          Net property, plant and equipment            2,313,472  2,845,541
          Other long-term assets                         436,762    429,155
                                                  $3,239,635 $3,987,828
          Liabilities and Stockholders' Equity
          Current liabilities                         $1,574,077 $1,446,830
          Long-term debt and other long-term
         obligations, net of current portion         174,244    183,403
          Stockholders' equity                         1,491,314  2,357,595
     $3,239,635 $3,987,828

        CONTACT: Zynaxis Inc.
                 Martyn D. Greenacre, 610/889-2200
                 Levin Public Relations
                 Don Levin, 914/993-0900
                 George Dube, 212/873-6886

Derma Sciences, Inc. reports second quarter results


            OLD FORGE, Pa.  --  Aug. 12, 1996  --  DERMA SCIENCES,
        INC.  (NASDAQ: DSCI) (BSE/PSE: DMS) today reported revenues of
        $1,453,223 for the second quarter ending June 30, 1996, representing
        a 26% increase from $1,153,350 for the second quarter of 1995.  The
        increase is attributable to an increased demand for Dermagran
        Ointment.  Sales of Dermagran Ointment more than doubled compared to
        the same quarter in 1995.  

            Gross profit increased 8% as a percentage of sales and 38% in
        the aggregate, from $891,434 for the second quarter 1995 to
        $1,227,867 in the second quarter 1996.  Product development expense
        increased 18% to $197,710 for the second quarter 1996 from $167,647
        in the second quarter 1995, while sales and marketing expense
        increased $138,549, or 100%, to $277,372, over the same 1995 period
        expense of $138,823. The Company posted net income of $114,931, or
        $0.03 per share, compared to a net loss of $261,811, or $0.06 per
        share, for the second quarter of 1995.  Net loss for the six-month
        period ending June 30, 1996 was $0.04 per share, as compared to a
        $0.06 per share loss for the same period of 1995.  

            John T.  Borthwick, President and Chief Executive Officer of
        DERMA SCIENCES said, "Our second quarter results indicate that even
        with restructuring events taking place within Medicare, the demand
        for DERMA SCIENCES' products is increasing.  Our increased
        expenditures for sales and marketing has produced, to my knowledge,
        the first comprehensive Disease Management Program for wound care,
        showing significant savings to the Managed Care industry.  The
        results of this program should drive the Company's results through
        the end of 1996 and beyond.  In addition, through its research
        efforts, the Company has identified its core technology as having
        horizontal applications in the area of tissue regeneration and
        performance cosmetics.  We will continue to attempt to exploit these
        newly identified commercial applications through strategic alliances
        with companies specializing in the various fields of use areas."  

            DERMA SCIENCES, INC.  is engaged in the development, marketing
        and sale of primarily proprietary sprays, ointments and dressings
        for the management of certain chronic non-healing skin ulcerations
        such as pressure and venous ulcers, surgical incisions and burns.
        The Company markets its products through independent distributors,
        mainly to health care providers to the geriatric community such as
        nursing homes, similar extended care facilities, hospitals and home
        health care agencies and managed care providers throughout the
        United States.  In addition, DERMA SCIENCES, INC.  products are
        available in selected markets throughout the world through strategic
        alliances with local companies.

                                 DERMA SCIENCES, INC.
                                 STATEMENTS OF INCOME

                                 Three Months Ended     Six Months Ended
                                     June 30,              June 30,
                               1996        1995        1996        1995
        NET SALES                $1,453,223  $1,153,350  $2,496,398
        COST OF SALES               225,356     261,916     485,217
        GROSS PROFIT              1,227,867     891,434   2,011,181
        OPERATING EXPENSES:                                               
         Product development        197,710     167,647     402,286
         Selling, general & adm.    966,968     821,607   1,866,786
          Total operating expenses 1,164,678    989,254   2,269,072
        INCOME (LOSS) FROM                                     
        OPERATIONS                    63,189     (97,820)    (257,891)
        OTHER INCOME (EXPENSE):                                           
         Interest income              37,378      83,648      78,829
         Interest expense                                                 
                                 (16,065)    (14,676)    (30,547)    (27,856)
         Deferred M&A costs                0    (294,268)          0
        Total other income (expense)  21,313    (225,296)     48,282
        INCOME (LOSS) BEFORE INCOME                                       
        TAXES:                        84,502    (323,116)   (209,609)
        Income taxes                 (30,429)    (61,305)    (55,217)
        NET INCOME (LOSS)         $  114,931   $(261,811)  $(154,392)
        NET INCOME (LOSS) PER COMMON                                      
        SHARE                     $     0.03   $(0.06)     $(0.04)
        WEIGHTED AVERAGE NUMBER OF                                        
        COMMON SHARES OUTSTANDING  4,054,233   4,054,233   4,054,233

        CONTACT: JOHN BORTHWICK, CEO (717) 457-1232
                 ROBERT MOORE, PR (908) 788 9660

Sanctuary Woods Posts First Quarter Gain


            SAN MATEO, CA  --  Aug. 12, 1996  --  Sanctuary Woods
        Multimedia Corporation (VSE: SWD), which announced in April that it
        would cease development of interactive entertainment titles to focus
        solely on its educational products, today reported $342,978 in net
        income on sales of $1,920,369 for the first quarter ended June 30.

            These earnings reflect a substantial improvement in net income
        over its recent transition quarter, the result of the company's
        change to a March 31 fiscal year end.

            "We have completed the reorganization of the company around our
        curriculum-based educational products and are clearly headed in the
        right direction," said Charlotte Walker, president and CEO of
        Sanctuary Woods.

            Net income rose to $342,978 in the first quarter compared to a
        net loss of ($4,514,171) in the quarter ended March 31, 1996 and a
        ($3,262,300) loss for the quarter ended June 30, 1995.  Primary per
        share income was $0.02 compared to a loss of ($0.21) per share for
        the comparable 1995 quarter.

            Net income for the quarter ended June 30, 1996 included a gain
        of $898,000 on the sale of the company's entertainment studio in
        Victoria, British Columbia to Disney Interactive.  The company
        incurred a ($477,910) operating loss for the quarter ended June 30,
        1996 compared to an operating loss of ($3,242,754) for the same
        period last year.  The operating loss for the June 30, 1996 quarter
        included operating costs for the Victoria studio up to its sale on
        May 13, 1996 of approximately $250,000.

            Sales for the first quarter included $580,000 in licensing
        revenue from the sale of publishing rights to three entertainment
        titles: Orion Burger, The Riddle of Master Lu; and Siberian Cipher.
        In addition, the company incurred additional reserves of $250,000
        for returns and mark-downs on its previously-published entertainment

            Because the quarter ended June 30, 1996 included certain non-
        recurring transactions such as the Victoria studio sale and the sale
        of certain licensing rights, the results may not be indicative of
        future performance. Additional information on these and other
        factors which could affect the company's financial results are
        included in the company's reports on Form 10-K and 10-Q on file with
        the Securities and Exchange Commission.

            Sanctuary Woods is the developer of innovative educational
        software, including Major League Math(TM), NFL(TM)Math, Franklin's
        Reading World and Franklin Learns Math.  The company was founded in
        1988 and is headquartered in San Mateo, Calif.

            NOTE:  Sanctuary Woods is a registered trademark and the
        Sanctuary Woods tree logo is a trademark of Sanctuary Woods
        Multimedia.  NFL is a trademark of the National Football League.
        Major League Math is a trademark of Major League Baseball.  The
        Vancouver Stock Exchange has not reviewed and does not accept
        responsibility for the adequacy or accuracy of the contents of the


                  AS OF JUNE 30, 1996 AND MARCH 31,1996 (UNAUDITED)
                                                   June 30    March 31
        Cash                                       $88,447      $8,455
        Accounts receivable                        804,996     800,701
        Inventories                              1,006,967   1,384,840
        Prepaid royalties                          177,000     127,000
        Prepaid expenses                           220,492     294,203
        Total current assets                     2,297,902   2,615,199
        PROPERTY AND EQUIPMENT                     793,636   1,834,266
        DEFERRED ROYALTIES & OTHER                  93,571     144,396
        TOTAL ASSETS                            $3,185,109 $4,593,861
        Bank debt                               $1,135,904  $2,226,781
        Notes payable                                        1,563,666
        Accounts payable                         2,517,352   3,087,886
        Accrued expenses                           795,365   1,395,359
        Royalty obligations                        454,723     611,905
        Current portion of capital lease
          obligations                               27,810      28,715
        Total current liabilities                4,931,154   8,914,312
          OBLIGATIONS                               84,000     534,000
        CAPITAL LEASE OBLIGATIONS                    6,956      13,781
        Total liabilities                        5,022,110   9,462,093
        Authorized, 100,000,000 common shares,
         no par value: issued and outstanding,
         26,708,580 at June 30, 1996 and
         22,158,580 shares at March 31, 1996    34,446,006  31,763,839
        Accumulated deficit                    (35,531,136)(35,874,113)
        Accumulated translation adjustments       (751,871)   (757,958)
        Total stockholders' equity (deficit)    (1,837,001) (4,868,232)
         EQUITY (DEFICIT)                       $3,185,109  $4,593,861
        See notes to consolidated financial statements.


                THREE MONTHS ENDED JUNE 30, 1996 AND 1995 (UNAUDITED)
                                                      1996         1995
        Consumer titles                           $994,716   $1,323,763
        Licensing Revenue                          925,653     $565,132
        Publisher services                                      169,975
        Total sales                              1,920,369    2,058,870
        COST OF SALES:
        Consumer titles                            683,099      964,022
        Technology amortization                                 161,090
        Publisher services                                      145,174
        Total cost of sales                        683,099    1,270,286
        GROSS MARGIN                             1,237,270      788,584
        Research and development                   459,064      978,319
        Marketing and sales                        632,080    1,812,179
        Administration                             488,631    1,119,694
        Depreciation                               135,405      121,146
        Total operating expenses                 1,715,180    4,031,338
        OPERATING LOSS                            (477,910)  (3,242,754)
        Foreign exchange (loss) gain                (2,988)      11,480
        Interest expense, net                      (82,168)     (35,663)
        Net gain on sale and disposal of assets    875,161          203
        Other income                                30,883        4,434
        Total other income (expense)               820,888      (19,546)
        NET INCOME (LOSS)                         $342,978  $(3,262,300)
        PRIMARY NET INCOME (LOSS) PER SHARE       $   0.02       ($0.21)
        FULLY DILUTED NET INCOME (LOSS) PER SHARE $   0.01       ($0.21)
        PRIMARY SHARES USED IN COMPUTATION      20,265,464   15,837,356
          COMPUTATION                           24,282,820   15,837,356
        See notes to consolidated financial statements.


                THREE MONTHS ENDED JUNE 30, 1996 AND 1995 (UNAUDITED)
                                                      1996         1995
        Net income (loss)                         $342,978  $(3,262,300)
        Adjustments to reconcile net loss to net
         cash used in operating activities:
        Depreciation and amortization              136,230      311,630
        Warrant compensation and other              53,254
        Net gain on sale and disposal of assets   (875,161)        (203)
        Changes in assets and liabilities:
        Accounts receivable                         (4,295)     169,568
        Inventories                                377,873     (909,575)
        Prepaid royalties, expenses and
          intangibles                               73,711     (738,039)
        Accounts payable and accrued expenses   (1,095,208)   1,396,143
        Accrued royalty obligations  1/8see below 3/8   (486,870)     229,550
        Accrued Bank Payable                                    395,000
        Net cash used in operating activities   (1,477,488)  (2,408,226)
        Proceeds from sale of assets             1,900,000
        Purchase of property and equipment                     (302,045)
        Net cash provided (used) in investing
          activities                             1,900,000     (302,045)
        Proceeds from exercise of warrants         750,000
        Common stock issued                                     331,285
        Net (payments) borrowings on bank debt  (1,090,877)   2,240,000
        Payments on long-term debt                  (7,730)      (6,912)
        Net cash used (provided) in financing
          activities                              (348,607)   2,564,373
        NET INCREASE (DECREASE) IN CASH             79,992     (145,898)
        CASH, BEGINNING OF PERIOD                    8,455      268,552
        CASH, END OF PERIOD                        $88,447     $122,654
        Cash paid during the period for:
        Interest                                    $2,200      $34,266
        Income taxes                                   800
        Conversion of notes payable into
          common stock                           1,563,666
        Sale of intellectual property in
          exchange for a reduction in royalty
          obligations and issuance of
          common stock                             550,000
        Conversion of account payable into
          common stock                             196,000
        See notes to consolidated financial statements.

CONTACT:  Charlotte Walker, President & CEO of Sanctuary Woods,

BCAM International Inc. reports results for the second quarter ended June 30, 1996


            MELVILLE, N.Y.  --  Aug. 12, 1996  --  BCAM
        International Inc. (NASDAQ:BCAM) today reported results for the
        second quarter ended June 30, 1996.

            The company reported a second quarter net loss of $466,587 or (3
        cents) per share (see attached table).  Second quarter 1996 revenue
        was $108,226, a slight increase over the first quarter.  Second
        quarter 1996 operating expenses declined to $591,535 from $697,437
        in the comparable period of the prior year.  Third quarter revenue
        is expected to be substantially better than the second quarter,
        because the company is working on several major projects that have
        been deferred by our customers from the first and second quarters.

            Commenting on the results, Michael Strauss, chairman and chief
        executive officer of BCAM, stated, "During the first six months of
        1996, we have made significant progress in substantially
        strengthening and broadening our technology.  We have been informed
        by the United States Patent Office that it has allowed three
        additional applications on BCAM's "Intelligent Surface Technology",
        and that the European Patent Office has allowed our first
        applications.  We therefore now have seven patents and four pending

            In addition, said Strauss, "We are currently in the advanced
        stages of discussions with several major new customers, including
        some in the medical field, to incorporate our "Intelligent Surface
        Technology" into their products in the near future and, in fact,
        have already signed an option agreement with one of them.  It is
        expected that at least one product incorporating BCAM's technology
        will be introduced into the marketplace in 1997, from which BCAM
        will start receiving a royalty stream."

            "It has taken," said Strauss, "the new management team a year
        and a half to restructure, reposition and focus the company,
        capitalizing on the heavy investment that has been made in BCAM's
        technology over the years.  I am confident that BCAM is now poised
        for substantial growth in the near future.  I am very excited that
        we have reached this stage and look forward to an exciting second
        half of this year and beyond."

            BCAM International Inc. is a software technology company that
        specializes in ergonomic solutions for major industries.

                              BCAM International Inc.
                  Condensed Consolidated Statements of Operations

                          (All numbers in whole dollars)
                               Three Months Ended       Six Months Ended
                                    June 30,                June 30,
                                1996        1995         1996      1995
        Net revenue               $108,226    $299,631    $210,721
        Costs and expenses         591,535     697,437   1,171,163
        Interest and other income   16,722      47,302      41,534
        Net loss                 $(466,587)  $(350,504)  $(918,908)
        Net loss per share       $   (0.03)  $   (0.02)  $   (0.06) $
        Weighted average
         number of shares
         outstanding            14,859,211  14,798,991  14,858,222

        CONTACT: BCAM International
                 Michael Strauss, 516/752-3550
                 Strategic Growth International
                 Stanley Altschuler, Donald Weinberger, 516/829-7111

National Record Mart Reports First Quarter Results


            PITTSBURGH, PA  --  Aug. 12, 1996  --  NATIONAL RECORD MART, INC.
        (Nasdaq: NRMI) today reported results for the first quarter of its
        fiscal year ending March 30, 1996.  Total year to date net sales
        through June 29, 1996, totaled $20.1 million, an increase of $1.1
        million or 5.9% higher than the same period in fiscal 1995, and 2.2%
        on a comparable store sales basis. Contributing to the increase in
        sales is the Company's focus on improving its management of its
        inventory system, with an emphasis on buying deeper into product
        lines to appeal to a larger demographic customer base.

            In line with expectations, the Company recorded a net loss of
        $1,276,000, or ($.26) per share, a 13% reduction from the loss
        recorded in the first quarter of the prior year, $1,461,000, or
        ($.29) per share.  Gross profit for the first quarter increased by
        $502,000 or 6.9%.  Gross margins increased to 38.5% as a percentage
        of sales, compared to 38.1% from the first quarter ending June 24,
        1995.  As a percentage of sales, selling, general & administrative
        expenses decreased from 43.4% to 42.8% as a result of a combination
        of the Company's implementation of a new store wage control system
        and the restructuring of field personnel as well as internal
        management, including the addition of several new key personnel.
        Due to the seasonal nature of the Company's business, it typically
        operates at a net loss in the first quarter.

            Commenting on the results, William A. Teitelbaum, Chairman,
        President and CEO of the Company, stated, "we are beginning to see
        some improvement in the Company's `It's the Stores' strategy, a
        combination of improving customer service, overall store appearance
        and the quality of personnel through better training and more
        selective recruiting."   Mr. Teitelbaum further states, "while we
        are pleased with the improvement in our margins and comparative
        store sales, management believes that it must continue to focus on
        its pricing formats, development of innovative marketing programs,
        completion of its new retail design and its ongoing support of the
        Company's `It's the Stores' strategy to further position itself in
        the competitive marketplace of music retail."

            National Record Mart, Inc. is a specialty retailer of
        prerecorded music and entertainment products.  The Company is the
        ninth largest specialty retailer of prerecorded music.

                              NATIONAL RECORD MART, INC.
                              Results For First Quarter
                        Through June 29, 1996, and June 24, 1995
                    (in thousands except earnings per share amounts)
                                                       Thirteen Weeks Ended
                                                             % of
        % of
                                                06/29/96     sales
        06/24/95   sales
        Net sales                         $20,142             $19,017
        Cost of sales                      12,392     61.5%    11,769    61.9%
        Gross profit                        7,750     38.5%     7,248    38.1%
        Selling, general, and
          administrative expenses           8,615     42.8%     8,252    43.4%
        Depreciation and amortization         647      3.2%       746     3.9%
        Net interest expense                  420      2.1%       441     2.3%
        Other expenses                         61      0.3%        91     0.5%
        Total expenses                      9,743     48.4%     9,530    50.1%
        Net loss before income taxes      (1,993)     -9.9%    (2,282)  -12.0%
        Income tax benefit                    717      3.6%       821     4.3%
        Net loss                         ($1,276)     -6.3%   ($1,461)   -7.7%
        Net loss per share                ($0.26)              ($0.29)
        Weighted average number of
          common shares and common
          equivalent shares (warrants
          and options) outstanding          4,872               4,965
        Number of stores in operation         152                 149
        SOURCE  National Record Mart, Inc.

CONTACT:  Theresa Carlise, Senior Vice President/CFO of National Record
        Mart, 412-276-6200