TCR_Public/960819.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy and Troubled Company News


August 19, 1996



  1. Trans World Entertainment cuts second quarter loss by more than half
  2. Perma-Fix Environmental completes amendment and restructuring of loan agreements
  3. Elsinore reports second-quarter results
  4. SIDT reports second quarter results
  5. Checkers Announces Negotiations On Debt Restructuring
  6. Cambridge Biotech: Temporary Stay Extended By U.S. District Court
  7. The Italian Oven Announces Second Quarter Results





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Trans World Entertainment cuts second quarter loss by more than half


        


           ALBANY, N.Y.  --  Aug. 19, 1996  --  Trans World Entertainment Corporation (Nasdaq National Market: TWMC) today announced sales of $97 million for the 13 weeks ended
        August 3, 1996, compared to $104 million for the same period last
        year.  
        


            The net loss for the quarter narrowed by approximately 60% to
        $2.4 million, or ($.25) per share, compared to a net loss of $6.1
        million, or ($.63) per share, last year.  Comparable store sales for
        the second quarter of 1996 increased 3%.  
        


            For the 26-week year-to-date period of 1996, the Company
        reported total sales of $203 million compared to $216 million for
        the same period in 1995.  The net loss was $5.1 million, or ($.53)
        per share, compared to a net loss of $10.2 million, or ($1.05) per
        share for the respective 26-week periods of 1996 and 1995.
        Comparable store sales for the first half of 1996 increased 5%.  
        


            Robert J. Higgins, Trans World's Chairman, President and Chief
        Executive Officer, commented, "Trans World was the first to identify
        the overcapacity that affected the entire prerecorded entertainment
        industry and implement a restructuring program.  By moving boldly on
        several fronts reducing store count by 20%, renegotiating long-term
        debt and improving inventory mix and merchandising presentation
        Trans World is taking advantage of opportunities in prerecorded
        music and video."  
        


            Gross profit as a percentage of sales in the second quarter of
        1996 increased to 35.8% from 33.9% in the second quarter of 1995.
        Selling, general and administrative expenses decreased to 32.7% of
        sales in the second quarter of 1996 from 36.0% in the second quarter
        of 1995.  This improvement was due primarily to the comparable
        stores sales increase and to the receipt of $2.5 million upon the
        termination of a business development agreement.  
        


            Interest expense decreased to $3.1 million in the second quarter
        of 1996 from $3.8 million in the comparable period in 1995.
        Although interest rates were higher in the second quarter of 1996,
        amounts outstanding under the Company's loan agreements were lower
        than in the same period of 1995.  
        


            On July 26, 1996, the Company finalized its loan agreements with
        its lenders, at which time the Company paid down $3.5 million of its
        long-term debt and resumed normal borrowing arrangements under its
        revolving credit facilities.  
        


            Trans World Entertainment is a leading specialty retailer of
        music and video products.  The Company operates over 500 retail
        stores under Record Town, Tape World, F.Y.E., Saturday Matinee and
        Coconuts Music and Movies.



        
                  TRANS WORLD ENTERTAINMENT CORPORATION
        
        INCOME STATEMENTS:
        (in thousands, except per share data)
        
                                            Thirteen Weeks Ended
                                    August 3,   % of    July 29,   % of
                                       1996    Sales      1995    Sales
                                                 (unaudited)
        
        Sales                            $96,717   100.0%  $104,292   100.0%
        
        Cost of sales                     62,101    64.2%    68,977    66.1%
        Gross profit                      34,616    35.8%    35,315    33.9%
        
        Selling, general and
          administrative expenses         31,666    32.7%    37,558    36.0%
        
        Depreciation and amortization      3,527     3.6%     4,110     3.9%
        Loss from operations                (577)   -0.6%    (6,353)   -6.1%
        
        Interest expense                   3,106     3.2%     3,845     3.7%
        Loss before income tax benefit    (3,683)   -3.8%   (10,198)   -9.8%
        
        Income tax benefit                (1,291)   -1.3%    (4,069)   -3.9%
        
        NET LOSS                         ($2,392)   -2.5%   ($6,129)   -5.9%
        
        NET LOSS PER SHARE                ($0.25)            ($0.63)
        
        Weighted average number of
          shares outstanding               9,739              9,733
        
                                            Twenty-six Weeks Ended
                                    August 3,   % of    July 29,   % of
                                       1996    Sales      1995    Sales
                                                (unaudited)
        
        Sales                           $203,339   100.0%  $216,204   100.0%
        
        Cost of sales                    131,554    64.7%   141,235    65.3%
        Gross profit                      71,785    35.3%    74,969    34.7%
        
        Selling, general and
          administrative expenses         66,363    32.6%    76,291    35.3%
        
        Depreciation and amortization      7,180     3.5%     8,355     3.9%
        Loss from operations              (1,758)   -0.9%    (9,677)   -4.5%
        
        Interest expense                   6,143     3.0%     7,319     3.4%
        Loss before income tax benefit    (7,901)   -3.9%   (16,996)   -7.9%
        
        Income tax benefit                (2,770)   -1.4%    (6,781)   -3.1%
        
        NET LOSS                         ($5,131)   -2.5%  ($10,215)   -4.7%
        
        NET LOSS PER SHARE                ($0.53)            ($1.05)
        
        Weighted average number of
          shares outstanding               9,737              9,726
        
        SELECTED BALANCE SHEET HIGHLIGHTS:
        (in thousands, except store data)
        
                                  13 Weeks Ended       26 Weeks Ended
                               August 3,  July 29,   August 3,  July 29,
                                 1996       1995       1996       1995
        
        Cash and cash equivalents   $7,783     $8,248     $7,783     $8,248
        Merchandise inventory      168,718    207,640    168,718    207,640
        Fixed assets (net)          65,442     81,162     65,442     81,162
        Accounts payable            76,517     70,778     76,517     70,778
        Long-term debt, less
          current portion           46,024     59,716     46,024     59,716
        Shareholders' equity        89,084    109,262     89,084    109,262
        Stores in operation            503        616        503        616
        

        CONTACT: MWW/Strategic Communications Inc., East Rutherford
                 201/507-9500
                 Media Contact:
                   Michael Kempner, mkempner@mww.com
                   Carreen Winters, cwinters@mww.com
                 Investor Contact:
                   Ronald Stack, rstack@mww.com


        

Perma-Fix Environmental completes amendment and restructuring of loan agreements


        


            ATLANTA,  GA  --  Aug. 19, 1996  --  Perma-Fix Environmental
        Services Inc. (NASDAQ:PESI) Monday announced that it has completed a
        restructuring of the loan agreements with its two major lenders,
        Heller Financial Inc. and Ally Capital Corp., whereby, among other
        things, the existing events of default were waived, the financial
        covenants were amended and certain other provisions of the loan
        agreements were amended.  
        


            Dr. Louis F. Centofanti, president of PESI, stated that:  "The
        loan restructuring removes the default conditions, reduces our
        interest rate and strengthens Perma-Fix's balance sheet.  Combined
        with the improved financial performance of the company and the
        recent equity financing with an institutional investor, this puts
        Perma-Fix in a much stronger position.  These financial changes will
        allow us to continue to grow and expand in the waste and recycling
        industry."
        


            Perma-Fix Environmental Services Inc. provides hazardous, mixed
        and industrial waste management services, along with environmental
        engineering and consulting services.  The company is widely
        recognized for meeting customer needs with technologically advanced
        alternatives to traditional landfill and incinerations methods.  
        


        CONTACT:  Perma-Fix Environmental Services Inc.
                  Dr. Louis F. Centofanti, 404/847-9990
                  or
                  Search Group Capital Inc.
                  Investor Relations, 404/233-6999



Elsinore reports second-quarter results


        


            LAS VEGAS, NV  --  Aug. 19, 1996  --  Elsinore Corp.
        (ASE/PSE:ELS) Monday reported financial results for the company's
        second quarter ended June 30, 1996.  
        


            Elsinore reported revenues of $15,116,000 for the second
        quarter, compared with $14,032,000 for the comparable period of
        1995.  The company reported net income of $340,000, or $0.02 per
        share on 15,891,793 weighted average shares outstanding, compared
        with a net loss of $3,145,000, or $0.20 per share on 15,635,218
        weighted average shares outstanding, for the second quarter of 1995.
        


            For the six months ended June 30, 1996, the company reported
        revenues of $31,002,000 compared with $29,293,000 for the same
        period last year.  Net income for the six-month period was $684,000,
        or $0.04 per share on 15,891,793 weighted average shares
        outstanding, compared with a net loss of $7,277,000, or $0.48 per
        share on 15,220,853 weighted average shares outstanding for the same
        period a year ago.  
        


            Operating results and cash flows improved because of the
        increase in patronage, as discussed below, and the protection
        afforded the company by the bankruptcy laws (contractual interest as
        reflected in the accompanying condensed table of operations) as
        reorganization proceedings continued during 1996.  
        


            The company reported that second-quarter revenues from the Four
        Queens Hotel and Casino increased to $15,116,000 from $13,654,000.
        The increase resulted primarily from an overall growth in the number
        of visitors to Las Vegas and by a greater number of gaming and hotel
        patrons attracted to the downtown Las Vegas Fremont Street
        Experience, which features a 10-story "celestial vault" canopy with
        an electronic light show choreographed to music, that opened on Dec.
        13, 1995.  
        


            The Fremont Street Experience project has connected the Four
        Queens and nine other major entertainment venues in a downtown
        pedestrian mall that offers a total of 17,000 slot machines, 650
        blackjack and other table games, 41 restaurants and 8,000 hotel
        rooms.  
        


            On March 1, 1996, Elsinore announced that it had filed with the
        U.S. Bankruptcy Court for the District of Nevada, a proposed Plan of
        Reorganization and an accompanying Disclosure Statement related to
        the company's filing for Chapter 11 protection on Oct. 31, 1995
        under the U.S. Bankruptcy Code.  
        


            In a press release dated Aug. 13, 1996, the company announced
        that on Aug. 8, 1996, in the Chapter 11 proceedings of Elsinore and
        a number of subsidiaries pending in the United States Bankruptcy
        Court for the District of Nevada, the Bankruptcy Court entered an
        order (the "Confirmation Order") confirming a modified plan of
        reorganization for Elsinore and certain of the other debtors.  
        


            The confirmed plan contemplates the ongoing operation of
        Elsinore and at least three of its subsidiaries, Four Queens Inc.
        ("FQI"), Elsub Management Corporation ("Elsub") and Palm Springs
        East Limited Partnership ("PSELP").  The plan calls for a
        restructuring of the debts of the Elsinore entities, and it calls
        for a redistribution of equity interests in the companies.  
        


            Creditors and former shareholders of Elsinore, FQI, Elsub and
        PSELP will receive the distributions provided under the plan as
        modified by the Confirmation Order that was entered by the
        Bankruptcy Court.  Distributions will be made out of cash flow
        generated by the ongoing operations of the businesses, supplemented
        by a $5 million rights offering and the issuance of stock in the
        reorganized companies which is called for under the plan.  
        


            Trading in the company's common stock continues to be halted by
        the American Stock Exchange.  As previously reported, the Exchange
        intends to review the company's continued listing eligibility
        concurrently with its progress in the Chapter 11 proceeding.  There
        can be no assurance that the listings on the American Stock Exchange
        and the Pacific Stock Exchange will be continued.  
        


            Elsinore owns and operates the Four Queens, a downtown Las Vegas
        Hotel and Casino offering 690 rooms, meeting facilities, four
        restaurants, 1050 slot machines, and numerous blackjack, craps and
        other table games.  
        



                         ELSINORE CORP. (Debtor in Possession)
                    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                     (Dollars in thousands, except per share data)
                                     (unaudited)
        
                                    Three Months Ended    Six Months Ended
                                         June 30,             June 30,
                                     1996      1995        1996       1995
                                  
        Net revenues                 $ 15,116  $ 14,032    $ 31,002   $
        29,293
        Costs and expenses,
         before interest and
         reorganization items          13,921    14,666      28,665
        31,308
        Interest expense (contractual
         interest expense of $2,348
         and $4,701 for the three
         and six months periods ended
         June 30, 1996 respectively)      251     2,511         515
        5,262
                                   14,172    17,177      29,180     36,570
        
        Income loss before
         reorganization items             944    (3,145)      1,822
        (7,277)
        Reorganization items              604        --       1,138
        --
        Net income (loss)               $ 340    (3,145)        684
        (7,277)
        Income (loss) per common share  $0.02    $(0.20)      $0.04
        $(0.48)
        Weighted average number of
         common shares outstanding 15,891,793 15,635,218  15,891,793
        15,220,853
        
                             CONSOLIDATED BALANCE SHEET DATA
                                 (Dollars in thousands)
                                      (unaudited)
        
                                                 June 30,        June 30,
                                                   1996            1995
        
        Current assets                              $ 8,445          $ 6,527
        Total assets                                 38,501           65,828
        
        Current liabilities                           7,287           14,175
        Long-term debt                               62,928           56,663
        Shareholders' equity (deficit)             $(42,757)        $
        (5,199)
        

        CONTACT: Elsinore Corp.
                 Thomas E. Martin, 702/387-5110  
                    or
                 The Financial Relations Board
                 Daniel Saks, 310/442-0599



SIDT reports second quarter results and the completion of its corporate restructuring


        


            AUSTIN, Texas  --  Aug. 19, 1996  --  SI Diamond
        Technology Inc. (NASDAQ:SIDT) Monday reported its second quarter
        results and the completion of its corporate restructuring.
        


            For the second quarter, SIDT reported revenues of $2,035,985, a
        318 percent increase from the $639,127 in revenues during the 1995
        second quarter.  The net loss from continuing operations was
        $3,969,512.  The loss per share of 44 cents included an additional
        charge of $923,128 related to below market conversions of the
        company's Series E Preferred stock.  
        


            The company had a net loss from continuing operations of
        $2,652,051, or 29 cents a share for the 1995 second quarter.
        


            There were 11,169,930 weighted average shares outstanding for
        the quarter compared to 8,108,389 weighted average shares
        outstanding for the 1995 second quarter.  The increase in shares was
        due to the issuance of shares of the company's common stock in
        private placement transactions and the conversion of Series E
        Preferred stock by some holders into the company's common stock.
        


            "Our revenues have more than tripled over the same period last
        year as we continue to progress toward our goal of transforming SI
        Diamond from a research and development company to a company that is
        focused on increasing revenues in order to achieve profitability,"
        said Marc Eller, SIDT's chairman and chief executive officer.
        "Except for some fine tuning, the restructuring is essentially
        complete and we expect to reap the benefits beginning in the current
        (third) quarter."
        


            Currently the company has a contract research backlog of
        approximately $1.65 million compared with $3.6 million for the same
        period last year.  The commercial backlog as of June 30, 1996, was
        approximately $1,462,000 as compared to $896,000 for the same
        period.
        


            "Interest continues in our Diamond Field Emission Lamps and we
        expect to have a demonstrable unit for large area signage completed
        by the end of September," stated Eller.
        


            Austin based SI Diamond is an innovative developer of thin-film
        diamond technology with potential for a variety of applications
        including flat panel displays and high luminance lamps.  Through its
        Plasmatron subsidiary, the company also develops and installs
        industrial coating systems.  
        


            SIDT's Diamond Tech One subsidiary provides advanced packaging,
        assembly, and prototyping services for electronic components and
        systems.  SI Diamond trades on NASDAQ under the symbol "SIDT."
        


            This press release contains forward looking information within
        the meaning of Section 27A of the Securities Act of 1933, as
        amended, and Section 21E of the Securities Act of 1934, as amended,
        and is subject to the safe harbor created by those sections.
        


            The company's actual results could differ materially from those
        projected in the forward looking information.  Future results may be
        impacted by risk factors listed from time-to-time in SIDT's SEC
        reports.

 
        
                   SI Diamond Technology Inc. and Subsidiaries
                          Consolidated Balance Sheets
        
        ASSETS                               June 30,              Dec. 31,
                                           1996                  1995
                                       (Unaudited)
        Current assets:
         Cash and cash equivalents          $2,207,863             $293,593
         Restricted cash                       157,971              259,880
         Accounts receivable, trade          1,789,994              267,318
         Stock subscriptions receivable             --            9,583,750
         Notes receivable                       15,000              400,000
         Costs and estimated earnings
          in excess of billings on
          uncompleted contracts                374,732              300,485
         Prepaid expenses and other
          assets                               235,382              147,466
           Total current assets              4,780,942           11,252,492
         Property, plant and equipment,
          net                                3,334,362            4,147,849
         Intangible assets, net                709,847              788,530
         Net assets of discontinued
          operations and assets held
          for sale                             754,548              513,216
         Other assets, net                     130,374               36,766
           Total assets                      9,710,073           16,738,853
        
        LIABILITIES AND STOCKHOLDERS' EQUITY
        
        Current liabilities:                          
         Accounts payable                   $3,834,954             $794,154
         Notes payable                         529,751              862,513
         Capital lease obligations                  --              190,326
         Accrued liabilities                   774,742            2,215,357
         Billings in excess of costs
          and estimated earnings on
          uncompleted contracts                438,479               49,891
           Total current liabilities         5,577,926            4,112,241
        Notes payable, long-term                56,120               86,687
        Capital lease obligations, long-term        --               77,422
        Commitments and contingencies
        Stockholders' equity:
         Preferred Stock, $1.00 par value,
          2 million shares authorized;
           Series A convertible preferred,
        100 shares issued and outstanding
        at June 30, 1996, and Dec. 31,
        1995 ($100,000 aggregate
        liquidation preference)                100                  100
           Series E convertible preferred,
        843 shares issued and outstanding
        at June 30, 1996 ($8.43 million
        aggregate liquidation preference)      843                   --
        Common Stock, $.001 par value,
         120 million shares authorized,
         11,784,125 shares issued and
         outstanding at June 30, 1996;
         10,858,889 shares issued and
         outstanding at Dec. 31, 1995           11,784               10,859
        Additional paid-in capital          45,304,291           34,681,872
        Preferred stock subscribed, but         
         unissued                                   --            8,905,072
        Accumulated deficit                (41,131,134)         (30,991,571)
        Unearned compensation                 (109,857)            (143,829)
           Total stockholders' equity        4,076,027           12,462,503
           Total liabilities and             9,710,073           16,738,853
        stockholders' equity
        
        The accompanying notes are an integral part of the financial
        statements.
        
          
                   SI Diamond Technology Inc. and Subsidiaries
                      Consolidated Statements of Operations
                                  (Unaudited)
        
                               Three Months Ended      Six Months Ended
                                     June 30,              June 30,
                                 1996       1995        1996       1995
        
        Revenues                 $2,035,985    $639,127  $2,884,352
        $863,654
        Cost of sales             1,208,024     480,623   2,260,138
        622,271
        Selling, general and
         administrative expenses  2,314,074   1,464,306   4,534,652
        2,138,272
        Research and development  2,509,845   1,013,277   4,637,270
        2,138,056
        Loss on impairment of
         assets                          --          --     850,000
        --
           Operating costs and
        expenses              6,031,943   2,958,206  12,282,060   4,898,599
        Other income, net            26,446      19,028     257,645
        83,401
        Loss from continuing                                           
         operations              (3,969,512) (2,300,051) (9,140,063)
        (3,951,544)
        Discontinued operations
           Loss from discontinued
        operations                   --    (352,000)   (649,500)   (632,533)
           Provision for loss on
        disposition of
        discontinued
        operations                   --          --    (350,000)         --
           Total losses on
        discontinued
        operations                   --    (352,000)   (999,500)   (632,533)
        Net loss
        $(3,969,512)$(2,652,051)$(10,139,563)$(4,584,077)
        Less preferred stock
         dividend                  (923,128)         --   (923,128)
        --
        Net loss applicable to
         common shareholders     (4,892,640) (2,652,051)(11,062,691)
        (4,584,077)
        Net loss per common share:
           Continuing operations     $(0.44)     $(0.29)     $(0.91)
        $(0.50)
           Discontinued operations       --       (0.04)      (0.09)
        (0.08)
           Net loss per common
        share                    $(0.44)     $(0.33)     $(1.00)     $(0.58)
        Average shares
         outstanding             11,169,930   8,108,389  11,014,827
        7,908,439
        
        The accompanying notes are an integral part of the financial
        statements.
        
                  SI Diamond Technology Inc. and Subsidiaries
                     Consolidated Statements of Cash Flows
                                 (Unaudited)
        
                                                     Six Months Ended
                                                          June 30,
                                                     1996         1995
        Cash flows from operating activities:
         Continuing operations:
           Net loss from continuing operations       $(9,140,063)
        $(3,951,544)
           Adjustments to reconcile net loss to net
        cash required by operating activities:
           Stock compensation                             33,972
        19,586
         Depreciation and amortization expense       595,502      305,062
           Revaluation of stock warrants                 450,000
        --
           Loss on settlement of note receivable         300,000
        --
           Loss on impairment of net assets              850,000
        --
           Changes in assets and liabilities:           
         Accounts receivable, trade               (1,522,676)     443,309
         Costs and estimated earnings in excess
          of billings on uncompleted contracts       (74,247)      27,500
         Prepaid expenses                            (87,916)    (100,415)
         Accounts payable and accrued liabilities  1,602,425      563,723
         Billings in excess of costs and estimated
          earnings on uncompleted contracts          388,588     (160,340)
           Total adjustments                       2,535,648    1,098,425
         Net cash required by continuing
          operations                              (6,604,415)  (2,853,119)
         Discontinued operations:
           Net loss from discontinued operations        (999,500)
        (632,533)
           Increase in net assets of discontinued
        operations                                  (141,332)          --
           Net cash required by discontinued         
        operations                                (1,140,832)    (632,533)
           Net cash required by operations        (7,745,247)  (3,485,652)
        Cash flows from investing activities:
         Capital expenditures                           (595,597)
        (3,383,536)
         Proceeds from disposition of equipment           27,265
        --
         Net change in intangibles and other assets      (93,608)
        (881,575)
           Net cash required by investing           
            activities                              (661,940)  (4,265,111)
        Cash flows from financing activities:            
         Restricted cash
        --     (613,134)
         Proceeds from notes payable
        --    1,203,956
         Repayment of notes payable                     (529,167)
        --
         Proceeds of stock issuance, net of costs     10,850,624
        9,860,351
           Net cash provided by financing
            activities                            10,321,457   10,451,173
        Net increase in cash and cash equivalents      1,914,270
        2,700,410
        Cash and cash equivalents, beginning of year     293,593
        1,687,104
        Cash and cash equivalents, end of the period  $2,207,863
        $4,387,514
        
        The accompanying notes are an integral part of the financial
        statements.
        

        CONTACT: SI Diamond Technology Inc., Austin
                Trey Fecteau, 512/250-2709
        

Checkers Announces Negotiations On Debt Restructuring


        


            CLEARWATER, FL  --  Aug. 16, 1996  --  Checkers Drive-In
        Restaurants, Inc. (Nasdaq: CHKR) announced on July 30, 1996, that a
        capital management firm had successfully consummated the acquisition
        of its outstanding debt under a credit facility and that waivers of
        defaults were granted through August 15, 1996.  Checkers announced
        today that the negotiations on debt restructuring with the new
        lending group continue and that the default waivers have been
        extended through August 30, 1996.
        


            Checkers Drive-in Restaurants, Inc., celebrating its 1Oth
        Anniversary this year, is one of the largest double drive-thru
        restaurant chains in the United States.  Checkers develops, owns,
        operates and franchises restaurants that offer high-quality food,
        fast service and everyday value prices.  Checkers is headquartered
        in Clearwater, Florida and is traded on the Nasdaq Stock Market
        under the symbol "CHKR".
        


CONTACT:  James T. Holder, Vice President and Chief Financial Officer,
        Checkers Drive-In Restaurants, 813-441-3500



Cambridge Biotech Corp.: Temporary Stay Extended By U.S. District Court


        


            WORCESTER, MA  --  Aug. 19, 1996  --  Cambridge Biotech
        Corporation
(NASD-OTC-BB: CBCXQ) reported today that on August 16,
        1996, the U.S. District Court (District of Massachusetts) extended
        the temporary stay of the Bankruptcy Court's confirmation order
        until September 18, 1996.  The confirmation order had been
        previously stayed by the Bankruptcy Appellate Panel for the First
        Circuit until August 19, 1996.  At CBC's request, the appeal of the
        confirmation order was transferred to the District Court on August
        14, 1996.  The extension of the stay was requested by Institut
        Pasteur, Pasteur Sanofi Diagnostics, and Alfa Laval Agri, AB,
        pending a resolution of their motions for a temporary restraining
        order and preliminary injunction. The District Court has scheduled a
        hearing on the motions for September 18, 1996.
        


            Cambridge Biotech Corporation, which filed for protection under
        Chapter 11 of the United States Bankruptcy Code on July 7, 1994, is
        a therapeutics and diagnostics company focusing on infectious
        diseases and cancer.  The Company is developing and commercializing
        products which stimulate the immune system for use in treating
        certain infectious diseases and specific cancers.  The therapeutic
        products include the Stimulon(TM) family of adjuvants, the most
        advanced of which, QS-21, is in clinical development through
        corporate and academic partners, and proprietary vaccines.  The
        proprietary vaccines include a feline leukemia vaccine currently on
        the market, and in development human vaccines for pneumococcal
        infections, malaria and tick-borne diseases, and animal vaccines for
        bovine mastitis and canine Lyme disease.  Cambridge Biotech's
        diagnostic business (to be sold to bioMerieux Vitek under the
        Chapter 11 plan) is primarily focused on retroviral and Lyme
        diseases.
        


            Statements in this release which relate to expectations of
        management for future operations or otherwise relate to future
        performance are forward looking statements.  Actual results may
        differ from those projected as a result of the Company's success in
        emerging from bankruptcy, product demand, pricing, market
        acceptance, the effect of economic conditions, intellectual
        property, competitive products, risks in product and technology
        development, and other risks identified in the Company's Securities
        and Exchange Commission filings.
        


CONTACT: Alison Taunton-Rigby, President, Chief Executive Officer of
        Cambridge Biotech Corporation, 508-797-5777, or Peter Feinstein,
        President of Feinstein Partners, Inc., 617-577-8110



The Italian Oven Announces Second Quarter Results


        


            LATROBE, PA  --  Aug. 19, 1996  --  The Italian Oven, Inc.
        (Nasdaq: OVEN) today reported a net loss of $3.7 million or $0.85
        per share, on total revenue of $5.7 million (including restaurant
        sales of $4.8 million and franchise and royalty fees of $900,000)
        for the second quarter ended June 30, 1996.  In last year's second
        quarter, the Company had a net loss of $500,000, or $.21 per share.
        Of this net loss for the second quarter of 1996, $2 million is
        attributable to reserves, provisions for losses and non- recurring
        charges.
        


            For the quarter ended June 30, 1996, total revenue increased by
        $2.3 million to $5.7 million or 69% compared to the quarter ended
        June 30, 1995.  Restaurant sales at Company-owned restaurants
        increased by $2.3 million to $4.8 million or 95.6% for the quarter
        ended June 30, 1996, compared to the same period in 1995.  For the
        six months ended June 30, 1996, total revenue increased by $2.9
        million to $10.0 million or 41.2% compared to the six months ended
        June 30, 1995. Restaurant sales at Company-owned restaurants
        increased by $3.0 million to $7.8 million or 61.2% for the six
        months ended June 30, 1996, compared to the same period in 1995.
        


            These increases in revenues for the quarter and six months were
        largely the result of the addition of 14 Company-owned restaurants
        during 1996. Restaurant sales for same Company-owned restaurants
        declined by 6.6% during the second quarter in 1996 and by 7.8%
        during the first six months of 1996 compared to the same periods in
        1995.  Management believes that this decline is due to a number of
        factors, including adverse weather conditions in the first quarter
        of 1996, industry-wide declines in restaurant sales, and price
        increases implemented by the Company early in the second quarter of
        1996.
        


            During the second quarter, the Company recorded non-recurring
        charges of $100,000 related to the class action securities lawsuits
        recently filed against the Company, non-recurring charges of
        $150,000 for additional Workers Compensation accruals and charges of
        $500,000 for supplier contracts the Company does not believe it can
        fulfill.  The Company also recorded non- recurring charges during
        the quarter ended June 30, 1996 of $800,000 to reserve for
        employment agreements related to three Company officers that were
        terminated and for advances made to the Company's former Chairman
        and Chief Executive Officer.  The Company also reserved $400,000 for
        a loan previously made to The Italian Oven National Advertising
        Fund, Inc.
        


            During the first six months of 1996, the Company incurred losses
        from operations of $3.8 million.  The Company has also utilized all
        of the cash proceeds from the initial public offering in November
        1995, and has not been able to obtain alternate sources of financing
        to cover immediate and future cash needs for general operating
        purposes.  At June 30, 1996, the current liabilities of the Company
        exceeded the current assets by $5.6 million.  The first six months
        of 1996 has shown a decrease in cash and cash equivalents of $11.3
        million.  The notes to the Company's financial statements provide
        that these factors, among others, create a substantial doubt about
        the Company's ability to continue as a going concern.
        


            However, management is attempting to resolve the current
        shortage of operating capital by selling certain assets, seeking
        alternate sources of financing and by restructuring the corporate
        functions in an effort to reduce general and administrative costs.
        To date, the Company has taken various steps, including, as
        previously announced by the Company, terminating or suspending
        without pay 10 employees (25% of its corporate staff) at its
        Latrobe, Pennsylvania headquarters, selling its Erie and Cranberry,
        Pennsylvania restaurants and entering into agreements with
        landlords, construction contractors and trade creditors to defer
        current payables. The Company also reached agreement with its
        principal supplier to continue supplying food and restaurant
        supplies to the Company's restaurants.  In this connection, the
        Company delivered its $1.1 million note to the supplier.  This note
        requires the Company to make five daily installment payments per
        week of $30,000 through December 30, 1996, with all outstanding
        amounts due and payable on December 31, 1996.  To collateralize
        these obligations, the Company granted to this supplier a security
        interest in substantially all of the Company's assets.  In addition,
        as previously announced, the Company has engaged Wheat, First
        Securities, Inc. to assist and advise the Company in seeking to
        obtain suitable financing of up to $4 million and to explore
        potential strategic partnerships.
        


            J. Garvin Warden of Cornerstone Capital, Inc., the Company's
        interim CEO, stated: "Although results for the quarter are
        disappointing, since the end of the second quarter, when Cornerstone
        was brought in as the Company's interim manager, we have taken
        important steps to improve operations.  We have seen, and may see
        during the third quarter, reserves, provisions for losses and non-
        recurring charges of a kind customarily associated with
        restructurings of the type The Italian Oven is undertaking.  We are,
        however, pleased with the cost controls implemented by the Company
        to date, and we plan to take all appropriate steps to improve
        operations."
        


            Separately,  Michael B. Understein, the Company's COO,  added:
        "Obviously, we are not pleased with the results for the second
        quarter, but the operations of the Company's three new Kansas City
        restaurants continue to be encouraging.  These restaurants have been
        opened in free standing buildings, and each has adopted a casual
        dining concept structured to appeal more strongly to adults.  We
        have been encouraged by the strong sales at these restaurants, which
        underscore the strength of The Italian Oven concept."
        


            The Italian Oven, Inc. operates and franchises Italian-theme,
        casual dining restaurants.
        


        The Company's Statements of Operations follows (footnotes omitted):
        



                                THE ITALIAN OVEN, Inc.
                        Consolidated Statements of Operations
                                     (Unaudited)
        
                                                Quarter Ended         Six
        Months Ended
        
                                               June 30,                June 30,
                                              1996        1995         1996
        1995
        
        REVENUE:
             Restaurant sales          $4,752,965  $2,430,101
        $7,848,484$4,869,309
        
         Franchise and development fees237,000    232,832       756,125  883,832
         Royalty fees                 684,339     693,742     1,388,3091,321,988
           Total revenue            5,674,304   3,356,675     9,992,9187,075,129
        
        COSTS AND EXPENSES
        Costs of restaurant sales   1,315,957     644,767     2,132,1321,309,897
         Other restaurant expenses:
         Restaurant labor expenses  1,986,545     858,023     3,321,0451,764,159
         Occupancy and other costs  1,362,289     598,241     2,135,6381,236,646
         General and administrative 2,881,737   1,486,387     4,349,6182,996,953
         Provision for employment
          agreements                  445,000         -0-       445,000      -0-
           Provision for losses
            on advances and loans
            to related parties        732,450         -0-       732,450      -0-
           Depreciation
            and amortization          494,242     157,005       760,945  318,998
         Total costs and expenses   9,218,220   3,744,423    13,876,8287,626,653
           Loss from operations   (3,543,916)   (387,748)   (3,883,910)(551,524)
        OTHER INCOME (EXPENSE):
         Equity in loss
          of joint venture            (8,525)    (34,054)      (28,933) (65,541)
         Interest income               34,512         -0-       173,984    2,637
         Interest expense            (54,913)    (34,840)      (75,587) (66,299)
         Other income (expense), net  (3,478)      14,043       (2,885)   25,855
           Total other
            income (expense)         (32,404)    (54,851)        66,579(103,348)
        Loss before taxes         (3,576,320)   (442,599)   (3,817,331)(654,872)
        PROVISION FOR INCOME TAXES  (107,811)         -0-       (5,493)    (375)
           Net loss               (3,684,131)   (442,599)   (3,822,824)(655,247)
        UNDECLARED DIVIDENDS ON
        PREFERRED STOCK                   -0-    (53,221)           -0-(107,503)
         ACCRETION OF DISCOUNT ON
          PREFERRED STOCK                 -0-     (1,139)           -0-  (2,279)
         NET LOSS APPLICABLE TO
              COMMON STOCK           $(3,684,131)  $(496,959)
        $(3,822,824)$(765,029)
        
         NET LOSS PER COMMON SHARE    $(0.85)     $(0.21)       $(0.88)  $(0.32)
        
         SHARES USED IN COMPUTING
          PER SHARE AMOUNTS        4,351,991  2,067,168     4,339,991 2,067,166


CONTACT:  J. Garvin Warden of the Italian Oven, 412-537-5380