InterNet Bankruptcy Library - News for September 27, 1996

Bankruptcy News For September 27, 1996

  1. Megafoods Reaches Agreement with Bashas'

  2. Maxwell Technologies announces fiscal 1996 fourth quarter and year-end results

  3. Difficult European economic, industry conditions will push down Whirlpool's 3Q, 1996 performance

Megafoods Reaches Agreement with Bashas'

PHOENIX, AZ Sept. 27, 1996 - Megafoods Stores, Inc. (OTC-BB: MEGFQ) and Bashas' announced today
that an agreement in principle has been reached on the sale of Megafoods' Arizona operations to Bashas'.
Under the arrangement, which is subject to completion of due diligence and Bankruptcy Court approval in
Megafoods' Chapter 11 case, Bashas' will acquire certain Megafoods assets and liabilities in Arizona. The
sale does not include other substantial assets of Megafoods, including its Texas operations.

Currently, Megafoods operates 16 stores in Arizona while Bashas' operates 73 stores in the Arizona market.
Under the agreement, Bashas' will take over the 16 Megafoods store locations. Megafoods will continue to
operate its 19 stores in San Antonio, Texas under the Handy Andy tradename.

Megafoods employs over 1,100 people in Arizona. All Megafoods employees will be encouraged to submit
applications to Bashas' and both companies will make uninterrupted customer service a top priority in the

Bashas' operates stores under the names Bashas', Bargain Basket, Bashas' Mercado, AJ's Fine Foods and Food
City. The latter two companies were successfully added to the Bashas' overall company in 1993 and 1994

Megafoods will file a motion for Bankruptcy Court approval of the sale as soon as Bashas' completes its due
diligence, which Bashas' anticipates will take approximately two weeks. Megafoods' Official Creditors'
Committee has given the preliminary approval of the sale.

SOURCE Megafoods Stores, Inc. -0- 09/27/96 /CONTACT: Investor Relations, 602-545-3227, ext. 224/

Maxwell Technologies announces fiscal 1996 fourth quarter and year-end results

SAN DIEGO, CA --Sept. 27, 1996--Maxwell Technologies Inc. (NMS:MXWL) Friday announced the results
for its fiscal 1996 fourth quarter and full year, ended July 31, 1996.

For the quarter, sales were up to $22,068,000, from $21,988,000 in the same period a year earlier. The
company reported net income of $153,000, or 5 cents a share, compared with net income of $219,000, or 8
cents a share, last year.

For the year, sales rose 8 percent to $80,911,000, from $75,004,000. After combined restructuring and asset
write-offs of approximately $14.4 million taken in the second and third quarters, the company had a fiscal
1996 net loss of $15.2 million, or $5.53 a share, compared with a net profit of $315,000, or 12 cents a share
last year.

Said Ken Potashner, president and chief executive officer of Maxwell Technologies: ``We believe that recent
news releases are indicative of the direction in which the company is headed as it enters the new year. In
recent weeks we have announced several key partnerships that will significantly improve the company's
financial performance.

``We are excited to be a partner to Yahoo! in adding value on the Internet and are highly encouraged by the
recently announced $4.5 million agreement with an international automobile manufacturer which will be
assessing our Ultracapacitors for automotive applications. In addition, our PureBright technology that
improves the quality and safety of food, beverage and medical products received FDA approval for
application to food.

``It is also important to note that several problem areas that have negatively affected our bottom line in recent
years have been effectively addressed. The environmental chemistry laboratory, which incurred substantial
losses during the past year, has been disposed of through the sale of its assets.

``The Sierra operation, which lost money in 1995 and the first half of 1996, is now profitable and growing,
and the Energy Products business unit -- which contains the elements of the former Balboa division which had
incurred several years of substantial losses -- is now approaching break-even. As a consequence of
stepped-up activities on Ultracapacitors for electric and hybrid electric vehicles, Energy Products has an
excellent opportunity for substantially improved performance next year.''

Added Potashner: ``Finally, but equally as important, a new management team has been put into place at
Maxwell, reflecting a solid build up of our marketing and manufacturing resources. Taken together, all of the
changes and new business developments put us in an excellent position for growth and profitability in 1997.''

Maxwell Technologies develops, manufactures and markets products and services involving purification
technologies, information technologies and power conversion systems and components. The company's
advanced technology solutions are used in the food processing and packaging, health care, OEM PC
manufacturing, mining, transportation and information technology markets, as well as federal and local
government applications.

                         Maxwell Technologies Inc.
           Summary of Results - Consolidated Statement of Income

        Year Ended July 31:                     1996            1995

        Sales                               $ 80,911,000    $ 75,004,000
        Net income (loss)                   $(15,176,000)   $    315,000
        Income (loss) per share             $      (5.53)       12 cents

        Quarter Ended July 31:                  1996            1995

        Sales                               $ 22,068,000    $ 21,988,000
        Net income                          $    153,000    $    219,000
        Primary earnings per share               5 cents         8 cents


CONTACT: Maxwell Technologies Inc., San Diego, Gary Davidson, 619/576-7557, URL:

Difficult European economic, industry conditions will push down Whirlpool's 3Q, 1996 performance

BENTON HARBOR, Mich.--Sept. 27, 1996-- Whirlpool Corporation (NYSE:WHR) said today that it
anticipates third-quarter operating results, excluding restructuring, will be about 35 to 40 percent below those
for the same 1995 period, and that the company has subsequently lowered its expectations for full- year

The company said the less favorable outlook is caused primarily by conditions in Europe, its second-largest
regional market, where a continued difficult economic and industry environment is contributing to a lack of
margin improvement. While third-quarter results will be significantly better than those for second-quarter
1996, the situation will lead to a small quarterly operating loss at Whirlpool Europe. Near-term prospects for
improved regional economic and industry performance are uncertain.

Whirlpool Chairman and CEO David R. Whitwam said that year-to- date results from the company's North
American and Latin American operations remain at record levels. He added that both regions are expected to
perform strongly through the remainder of the year.

The chairman said that Whirlpool will take a restructuring charge of about $30 million that will reduce net
earnings in the third quarter. The charge will be for previously announced streamlining of the company's Asian
headquarters and a North American refrigeration operation. Together, the two moves are expected to save $37
million annually once fully implemented by mid- 1997.

The company plans to announce full third-quarter results on Oct. 21.

Whirlpool Corporation is the world's leading manufacturer and marketer of major home appliances.
Headquartered in Benton Harbor, the company manufactures in 12 countries and markets products under 11
major brand names in about 140 countries.

CONTACT: Whirlpool Corp., Benton Harbor T.R. Reid, 616/923-3417