TCR_Public/961111.MBX




InterNet Bankruptcy Library - News for November 11, 1996





Bankruptcy News For November 11, 1996



  1. Tom Brown reports third quarter results

  2. IVAX Announces 1996 Third Quarter Results; Records $104 Million in Asset Write-Downs and $14
    Million Restructuring Charge

  3. Physicians Clinical Laboratory Reaches Arrangement with Secured Creditors for Restructuring of Debt;
    Receives Commitment for $9.8 Million in Financing

  4. Converse announces third quarter and nine month results

  5. Gibraltar Packaging Group Announces Results for First Quarter of Fiscal 1997 and Completion of Bank
    Refinancing




Tom Brown reports third quarter results


MIDLAND, Texas--Nov. 11, 1996--Tom Brown Inc. (NASDAQ:TMBR) today reported net income of $122,000,
or $.01 per share, on revenues of $14,773,000 for the third quarter of 1996 compared to net income of
$1,500,000, or $.09 per share, on revenues of $12,082,000 for the third quarter of 1995.


Included in the third quarter of 1995 was a gain of approximately $4.3 million on the sale of the company's
Arkoma Basin properties. The company's cash flow was $5.2 million for the three months ended Sept. 30, 1996
as compared to $2.0 million for the comparable period in 1995.


The company's natural gas production was 3,837 million cubic feet ("MMcf") for the three months ended Sept.
30, 1996 as compared to 2,540 MMcf for the comparable period in 1995, which represents a 51 percent
increase. Oil production for the three months ended Sept. 30, 1996 increased 17 percent to 117 thousand barrels
("MBbls") as compared to 100 MBbls for the same period in 1995.


The company benefited from higher oil and gas prices in the third quarter, but experienced slightly lower gas
production due to compressor maintenance in its Muddy Ridge and Pavillion fields. Three recently completed
wells in the Val Verde Basin began production in September and October at combined rates in excess of 20
MMcfd (8 MMcfd net to the company). Three additional wells are currently drilling and three more are
scheduled for drilling prior to year-end. The company anticipates record production and revenues in the fourth
quarter of this year due primarily to the new production in the Val Verde Basin and higher fourth quarter gas
prices.


A 76 square mile 3-D seismic survey has commenced on the company's east Texas acreage in the Cotton Valley
Pinnacle Reef Trend. The drilling of the company's first well is anticipated in the summer of 1997. The company
plans to retain a 60 percent working interest.


The company's acreage position in the Wind River Basin reached 1,072,000 gross (631,000 net) acres with the
signing of the company's license agreement with the Eastern Shoshone and Northern Arapaho Tribes. On Oct. 28,
1996, the company and Louisiana Land and Exploration Co. announced the formation of a joint exploration
alliance in connection with this agreement.


On Nov. 4, 1996, the company and KN Energy Inc. closed on the acquisition of the Williams Field Services'
gathering and processing assets in western Colorado and eastern Utah. This acquisition gives Wildhorse a
significant upstream position in an area of the Rocky Mountains that has great potential for developing additional
natural gas reserves and deliverability.


A confirmation hearing on Presidio Oil Co.'s Chapter 11 bankruptcy proceeding is scheduled for Nov. 13, 1996.
This bankruptcy follows a definitive agreement signed Aug. 6, 1996 between the company and Presidio whereby
the company would acquire Presidio through a Chapter 11 bankruptcy proceeding. The company's obligation to
consummate the transaction is conditioned upon, among other things, the receipt of a final bankruptcy court
confirmation order approving the transaction by Nov. 15, 1996.


Tom Brown Inc. is an independent energy company engaged in the domestic exploration for, and the acquisition,
development, production and sale of, natural gas and crude oil. Its stock is traded in the over-the-counter market
and appears on the NASD National Market system under the symbol "TMBR".


                    Tom Brown Inc. and Subsidiaries
             Consolidated Statements of Operations (Unaudited)
        

                        Three Months Ended       Nine Months Ended
                           September 30,            September 30,
                        1996         1995         1996         1995
        Revenues:
        Gas and oil
         sales          $ 8,040,000  $ 4,920,000  $24,797,000  $15,041,000
        Marketing,
         gathering and
         processing       6,340,000    2,792,000   16,629,000   10,772,000
        Gain on sales
         of properties      239,000    4,234,000      267,000    4,322,000
        Interest income
         and other          154,000      136,000      356,000      537,000
        Total revenues   14,773,000   12,082,000   42,049,000   30,672,000
        

        Costs and expenses:
        Gas and oil
         production       1,610,000    1,256,000    4,697,000    3,536,000
        Taxes on gas and
         oil production     670,000      467,000    1,844,000    1,515,000
        Cost of gas sold  5,693,000    2,224,000   13,179,000    9,082,000
        Exploration costs   827,000    1,062,000    1,753,000    3,010,000
        Impairments of
         leasehold costs     49,000      140,000      116,000      484,000
        General and
         administrative   1,409,000      968,000    4,166,000    2,994,000
        Depreciation,  
         depletion and
         amortization     3,672,000    2,669,000   11,369,000    7,375,000
        Writedown of
         properties               -            -            -    8,368,000
        Interest expense      1,000      951,000       18,000      978,000
        Total costs and
         expenses        13,931,000    9,737,000   37,142,000   37,342,000
        Income (loss)
         before income
         taxes              842,000    2,345,000    4,907,000   (6,670,000)
        Income tax provision:
        Recognition of
         deferred tax
         asset                    -            -            -   13,967,000
        Income tax
         expense            282,000      845,000    1,668,000      994,000
        Net income      $   560,000  $ 1,500,000  $ 3,239,000  $ 6,303,000
        Preferred stock
         dividend       $   438,000  $         -  $ 1,235,000  $         -
        Net income available
         to common  
         shareholders   $   122,000  $ 1,500,000  $ 2,004,000  $ 6,303,000
        Weighted average
         number of
         common shares
         outstanding     21,133,494   16,153,277   21,123,007   16,131,345
        Net income per
         common share   $       .01  $       .09  $       .09  $       .39
        Natural gas  
         production (MMcf)    3,837        2,540       12,058        7,870
        Crude oil
         production (MBbls)     117          100          375          300
        Average natural
         gas sales price
         ($/Mcf)        $      1.45  $      1.31  $      1.45  $      1.27
        Average crude
         oil sales
         price ($/Bbl)  $     21.09  $     16.05  $     19.52  $     16.80
              

CONTACT: Tom Brown Inc., Midland Donald L. Evans, 915/682-9715




IVAX Announces 1996 Third Quarter Results; Records $104 Million in Asset Write-Downs and $14 Million
Restructuring Charge


MIAMI, FL - Nov. 11, 1996 - IVAX Corporation (AMEX: IVX) today announced a net loss for the 1996 third
quarter of $178.7 million, or $1.47 per common share, compared to net income of $27.6 million, or $.23 per
common share, for the third quarter of 1995. These results include a $104.3 million pre-tax charge relating to the
write-down of goodwill and certain fixed assets of its U.S. generic drug distribution business and certain product
lines of its specialty chemicals business, and $14 million in pre-tax charges associated with a restructuring
program commenced and announced in commenced and the 1996 third quarter.


Financial Results

Net revenues for the 1996 third quarter were $222.7 million, compared to $310.2 million for the 1995 third
quarter. Gross profit for the third quarter of 1996 was $31.0 million, compared to $126.7 million for the third
quarter of 1995. Loss before income taxes, minority interest and extraordinary items in the 1996 third quarter was
$218.5 million, compared to income before income taxes, minority interest and extraordinary items of $29.9
million for the 1995 third quarter.


Primary net loss per share for the first nine months of 1996 was $1.31, compared to primary net earnings per
share of $.67 for the same period of 1995. Fully diluted net loss per share for the first nine months of 1996 was
$1.31, compared to fully diluted net earnings per share of $.66 for the first nine months of 1995. Net loss for the
first nine months of 1996 was $158.8 million, compared to net income of $79.0 million for the same period in
1995. Net revenues for the first nine months of 1996 were $830.6 million, compared to $898.0 million reported
for the first nine months of 1995. Gross profit for the first nine months was $258.3 million, compared to $376.3
million for the same period in 1995. Loss before income taxes, minority interest and extraordinary items was
$205.9 million in the first nine months of 1996, compared to income before taxes, minority interest and
extraordinary items of $100.2 million for the same period in 1995.


Industry Issues

IVAX' actual loss from operations for the third quarter significantly exceeded the loss for the quarter estimated by
IVAX' in its September 30, 1996 press release. Several factors relating to IVAX' U.S. generic drug business
adversely affected its 1996 third quarter results. These factors were generally comparable to factors experienced
in the 1996 second quarter. First, customer inventory levels continued to be high, so customer re-orders were
depressed. Second, in order to reduce customer inventory levels and their impact on IVAX results, IVAX cut
back on promotional activities, thereby further reducing sales. Third, prices continued to decline for generic drug
products. Fourth, price reductions at a time of elevated customer inventories increased shelf stock adjustments
credited to customers to levels well above more typical quarters. Fifth, reserves for returns and inventory
write-offs were well above typical quarters. The aggregate adverse effect of these factors ultimately was
significantly greater than IVAX anticipated when it offered its September 30 earnings estimate.


In addition, as announced on September 30, [FoxMeyer Corporation, et al.,] a wholesaler customer who owed
IVAX approximately $16 million filed a Chapter 11 bankruptcy petition during the 1996 third quarter.
Accordingly, in the third quarter, IVAX supplemented its existing second quarter reserve of approximately $6
million relating to this account with additional reserves of approximately $7 million.


Charges

IVAX' third quarter results include a $104.3 million pre-tax charge relating to the write-down of goodwill and
certain fixed assets of its U.S. generic drug distribution business and certain product lines of its specialty
chemicals business. Due to the recent financial performance of those businesses, it was determined that the value
of certain assets was not recoverable and, accordingly, IVAX wrote off these amounts in the 1996 third quarter.
Of the $104.3 million charge, $55.9 million relates to IVAX' U.S. generic drug distribution business (Goldline),
and $48.5 million relates to certain product lines of its specialty chemicals businesses (IVAX Industries and
subsidiaries). The write-downs will reduce depreciation and amortization expenses by approximately $1.1
million in the 1996 fourth quarter and by approximately $3.7 million annually, and will increase annual net
income by approximately $4.3 million.


As announced in IVAX' September 30, 1996 news release, IVAX incurred a pre-tax charge of $14.0 million in
the 1996 third quarter relating to a corporate restructuring initiated in the third quarter. The restructuring involves
facility shut downs, consolidations and other measures designed to ultimately reduce costs on an annualized basis
by approximately $20 million, and is proceeding as scheduled.


Amendment to Credit Facility IVAX is a party to a revolving credit facility with a syndicate of 19 participating
banks. As a result of IVAX' recent results, IVAX is presently out of compliance with the provisions of this
agreement. Accordingly, the $305.0 million outstanding under the facility as of September 30, 1996, ordinarily
classified as long term debt on IVAX' balance sheet, has been classified as short term debt. IVAX has been
working closely with the bank syndicate, and believes of procuring the requisite majority vote of syndicate
participants shortly. Notwithstanding this development, IVAX believes it maintains that an amendment to the
agreement will be executed shortly. Once amended, all amounts outstanding under the facility will be reclassified
as long-term debt.


No Declaration of Dividends

IVAX' Board of Directors omitted IVAX' semi-annual dividend for the second half of 1996. On June 3, 1996,
IVAX paid a semi-annual dividend of $.05 per share to shareholders of record on May 10, 1996.


Concurrent Announcements

In a separate news release this morning, IVAX announced that it had executed a definitive merger agreement with
Bergen Brunswig Corporation, one of the largest pharmaceutical and hospital products distributors in the nation,
forming the nation's only fully integrated manufacturer and distributor of products to the pharmaceutical and acute
care communities.


IVAX also announced this morning that it had signed a Memorandum of Understanding to amend and expand its
existing license agreement with Glaxo Wellcome for IVAX' patented breath activated inhaler known as
Easi-Breathe(TM). The license will be exclusive worldwide to Glaxo Wellcome, except as provided for in
existing agreements with other companies.


General

IVAX Corporation, headquartered in Miami, Florida, is a holding company with subsidiaries engaged primarily
in the research, development, manufacture and marketing of health care products, including generic and branded
pharmaceuticals, intravenous solutions and related products, and in vitro diagnostics.


                                   IVAX Corporation
                                Results of Operations
                              Period Ended September 30
                        (in thousands, except per share data)
        

                                             Three Months          Nine Months
                                               1996        1995     1996
        1995
        

            Net revenues                  $222,720     $310,212   $830,648
        $897,976
        

            Cost of sales                  191,713      183,469    572,361
        521,680
        

             Gross Profit                   31,007      126,743    258,287
        376,296
        

        Selling, general and
             administrative                102,807       75,577    269,163
        212,887
        

            Research and development        18,894       15,836     53,501
        47,500
        

            Amortization                     2,774        2,394      8,134
        7,336
        

        Restructuring cost and
             asset write-downs             118,315           --    118,315
        --
        

            Merger expense                      --           --        184
        --
        

             Total operating expenses      242,790       93,807    449,297
        267,723
        

             Income (loss) from operations(211,783)      32,936   (191,010)
        108,573
        

             Total other expense, net       (6,694)      (3,025)   (14,933)
        (8,390)
        

         Income (loss) before income
          taxes, minority interest and
              extraordinary items         (218,477)      29,911   (205,943)
        100,183
        

        Provision (benefit) for
             income taxes                  (40,553)       1,291    (53,886)
        17,944
        

         Income (loss) before minority
          interest and extraordinary
              items                       (177,924)      28,620   (152,057)
        82,239
        

            Minority interest                 (745)      (1,038)    (4,647)
        (3,229)
        

         Income (loss) before
              extraordinary items         (178,669)      27,582   (156,704)
        79,010
        

        Extraordinary items - Gains
        (losses) on extinguishment
             of debt, net of tax                --           --     (2,073)
        34
        

            NET INCOME (LOSS)            $(178,669)     $27,582  $(158,777)
        $79,044
        

        EARNINGS (LOSS) PER SHARE:
         Primary:
         Earnings (loss) before
              extraordinary items           $(1.47)       $0.23     $(1.29)
        $0.67
        

             Extraordinary items                --           --      (0.02)
        --
        

             Net earnings (loss)            $(1.47)       $0.23     $(1.31)
        $0.67
        

        Fully Diluted:
         Earnings (loss) before
              extraordinary items           $(1.47)       $0.23     $(1.29)
        $0.66
        

             Extraordinary items                --           --      (0.02)
        --
        

             Net earnings (loss)            $(1.47)       $0.23     $(1.31)
        $0.66
        

        AVERAGE SHARES OUTSTANDING:
             Primary                       121,467      119,312    120,774
        118,842
        

             Fully Diluted                 121,467      120,692    120,774
        120,578
        

                                 Condensed Balance Sheets
                                      (In thousands)
        

                                                          September 30,
        December 31,
        

                                                         1996            1995
        

        Assets
            Current assets                                   $708,199
        $676,818
        

            Property, plant and equipment, net                406,740
        385,419
        

            Other assets                                      242,228
        273,073
        

             Total assets                                  $1,357,167
        $1,335,310
        

        Liabilities and Shareholders' Equity
            Current portion of long-term debt                $307,139
        $3,521
        

            Other current liabilities                         232,172
        202,392
        

            Long-term debt                                    110,904
        298,857
        

            Other long-term liabilities                        20,921
        26,314
        

            Minority interest                                  14,089
        15,054
        

            Shareholders' equity                              671,942
        789,172
        

             Total liabilities and shareholders' equity    $1,357,167
        $1,335,310
        

                          Business Segment Financial Highlights
                                Period Ended September 30,
                                      (In thousands)
        

                                          Three  Months            Nine Months
                                             1996        1995        1996
        1995
        

        NET REVENUES:
             Pharmaceuticals              $98,351    $191,547    $458,478
        $532,043
        

             Intravenous products          81,554      82,713     249,597
        253,552
        

             Other operations              43,376      36,382     124,039
        113,253
        

         Intersegment
              eliminations                   (561)       (430)     (1,466)
        (872)
        

              Total                      $222,720    $310,212    $830,648
        $897,976
        

        GROSS PROFIT:
             Pharmaceuticals             $(18,186)    $79,934    $114,803
        $227,180
        

             Intravenous products          28,414      30,581      84,811
        99,570
        

             Other operations              20,779      16,228      58,673
        49,546
        

              Total                       $31,007    $126,743    $258,287
        $376,296
        

        INCOME (LOSS) FROM OPERATIONS:
             Pharmaceuticals            $(164,174)    $29,909   $(143,195)
        $90,760
        

             Intravenous products           4,495       5,250      12,553
        24,723
        

             Other operations             (46,486)        852     (43,878)
        3,151
        

         Corporate expenses
              and other                    (5,618)     (3,075)    (16,490)
        (10,061)
        

              Total                     $(211,783)    $32,936   $(191,010)
        $108,573
        

Statements made in this press release, including those relating to the amendment of the credit agreement and the
annualized savings expected from the restructuring, are forward looking and are made pursuant to the safe harbor
provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties which
may cause results to differ materially from those set forth in these statements. Among other things, the credit
agreement is subject to the discretion of the bank syndicate and the annualized cost savings are subject to the
successful and timely implementation of the restructuring. In addition to the factors set forth elsewhere in this
release, the economic, competitive, governmental, technological and other factors identified in IVAX' filings with
the Securities and Exchange Commission, could affect the forward looking statements contained in this press
release.


SOURCE IVAX Corporation/CONTACTS: Michael W. Fipps, Senior Vice President-Finance and Chief
Financial Officer, 305-575-6123, or Joseph C. Jones, Vice President-Investor Relations, 305-575-6042/




Physicians Clinical Laboratory Reaches Arrangement with Secured Creditors for Restructuring of Debt; Receives
Commitment for $9.8 Million in Financing


SACRAMENTO, Calif., Nov. 11, 1996 - The board of Directors of Physicians Clinical Laboratory, Inc. ("PCL")
(Nasdaq: PCLI) announced today that it has filed a chapter 11 case in Los Angeles to facilitate a restructuring on
its debt and the acquisition of the Company by an investor group. The investor group intends to make an
immediate $9,800,000 cash infusion to provide adequate working capital and to assure continuity of operations
and quality of service.


An additional $5,000,000 of capital will be injected into the Company upon completion of the restructuring,
which is anticipated to take five to six months.


Jack Burgis, Chairman of the Board, said: "This restructuring is an extremely positive development for the
Company. It will provide the Company with adequate liquidity and ensure the long-term viability of PCL. This
restructuring will enable us to satisfy our customers and satisfy our creditors in a forward-going basis."


Under the proposed terms of the restructuring, the interests of the Company's existing stockholders and the
interests of the holders of the Company's debentures would be significantly and substantially diluted and possibly
eliminated.


Physicians Clinical Laboratory is a full service clinical laboratory and operates in the Sacramento, San
Francisco Bay Area, Central Valley, and Los Angeles markets. Based in Sacramento, the Company maintains one
full service laboratory, two day laboratories, seventeen Stat facilities, and 225 patient service centers, and
employs approximately 1,200 people throughout California.


SOURCE Physicians Clinical Laboratory, Inc./CONTACT: J. Marvin Feigenbaum or Richard Brooks of
Physicians Clinical Laboratory, Inc., 916-648-3500/




Converse announces third quarter and nine month results


NORTH READING, Mass.--Nov. 11, 1996--Converse Inc. (NYSE:CVE) today announced financial results for
the third quarter and nine month period ended September 28, 1996.


Revenues for the third quarter were $113.3 million compared to $110.1 million in the third quarter of 1995.
Income from operations was $3.1 million versus a loss from operations of $2.2 million for the same period last
year. The net loss in the third quarter narrowed to $3.0 million, or $0.18 per share, compared to a net loss of $6.6
million, or $0.39 per share, for the third quarter of 1995.


U.S. sales in the third quarter increased 9.8% and international sales decreased 4.5%, in each case compared to
the third quarter 1995. The Company posted substantial increases in its children's and basketball categories of
28.4% and 14.3%, respectively, which were partially offset by declines in athleisure and cross-training sales.


For the nine month period, revenues were $279.8 million versus $330.6 million for the same period last year.
Income from operations was $5.6 million, including a restructuring credit of $2.2 million in the second quarter of
1996, compared to income from operations of $5.5 million for the nine months ended September 30, 1995. The
net loss for the nine month period improved to $10.0 million, or $0.60 per share, versus a net loss of $30.4
million, or $1.82 per share, for the same period last year.


For the nine month period, selling, general and administrative expenses were $88.6 million, a net reduction of
$22.0 million from the $110.6 million for the same period in 1995. Royalty income for the nine months rose
43.4% to $17.5 million from $12.2 million last year.


Fueled by the success of the All Star 2000, incoming orders for the third quarter increased by 32.0% over last
year. As a result, Converse's backlog as of September 28, 1996 increased to $173 million, a 16% increase versus
a year ago. The increase in the backlog is attributable to futures orders for the first quarter of 1997. The backlog
for fourth quarter shipments is down slightly as compared to September 30, 1995.


Commenting on the results, Glenn Rupp, Chairman and Chief Executive Officer, stated, "Although we posted only
a modest operating profit in the third quarter, our results mark the second consecutive quarter of operating
earnings improvement versus the year-ago period. We are continuing to realize the benefits of our restructuring
plan, which led to further reduction in SG&A for the period, resulting in higher operating earnings on a slight
increase in sales."


"We have seen improvement in our operating earnings for the second and third quarters of 1996 and we expect
continued improvement in our operating earnings for the fourth quarter of 1996 as compared to the fourth quarter
1995."


Mr. Rupp continued, "The overwhelming response to our All Star 2000 product has reinvigorated the Company
and has proven that the underlying strength of the Converse brand, combined with the right product and the right
marketing program, can be successful. Over the past few months, we have seen increasing strength in our order
activity and the reception to our Spring '97 lines has been very enthusiastic. In particular, four of our new
basketball shoes -- The Dr. J. 2000, The Springfield, The Tourney, and the Canvas All Star 2000 -- have
generated an excellent response from our retail customers."


"Looking ahead, we are very excited about the recent addition of Jim Solomon to head our worldwide marketing
effort. We believe that Converse is regaining a solid market position and Jim's expertise will play an integral
role in our ability to generate additional momentum for our brand. With the successful implementation of the
restructuring plan and the recent order momentum, the Company is well-positioned to have a strong year in
1997," Mr. Rupp concluded.


Converse Inc., the largest U.S. manufacturer of athletic shoes, is a leading designer, manufacturer and marketer of
high quality athletic and leisure footwear and is a licensor of sports apparel and accessories that are distributed
worldwide through over 9,000 athletic specialty, sporting goods, department and shoe stores.


Any statements set forth above which are not historical facts are forward looking statements that involve certain
risks and uncertainties that could cause actual results to differ materially from those in the forward looking
statements. Potential risks and uncertainties include such factors as the financial strength and competitive pricing
environment of the athletic footwear and apparel industries, product demand, market acceptance of this
Company's products and, the success of planned advertising, marketing and promotional campaigns.


                               CONVERSE INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                     (Dollars in thousands, except per share amounts)
                                        (Unaudited)
        

                                Three Months Ended       Nine Months Ended
                               Sept. 28,   Sept. 30,   Sept. 28,   Sept. 30,
                                 1996        1995        1996        1995
        

        Net Sales                 $113,318     $110,121    $279,776
        $330,641
        Cost of sales               83,388       80,783     205,342
        225,820
        Gross profit                29,930       29,338      74,434
        104,821
        Selling, general and
         administrative expenses    33,153       36,026      88,588
        110,586
        Royalty income               6,301        4,489      17,546
        12,240
        Restructuring expense (credit)   0            0      (2,209)
        1,000
        Earnings (loss) from
         operations                  3,078       (2,199)      5,601
        5,475
        Loss on investment in
         unconsolidated subsidiary       0            0         515
        41,599
        Interest expense             4,827        3,525      12,921
        9,518
        Other (income) expense, net    229          962       1,726
        (555)
        Earnings (loss) before
         income tax                 (1,978)      (6,686)     (9,561)
        (45,087)
        Income tax expense (benefit) 1,033         (103)        452
        (14,660)
        Net earnings (loss)       $ (3,011)    $ (6,583)   $(10,013)  $
        (30,427)
        Net earnings (loss)
         per share                $  (0.18)    $  (0.39)   $  (0.60)  $
        (1.82)
        Weighted average number
         of common shares           16,707       16,692      16,697
        16,692
        

        -0-
        

                               CONVERSE INC. AND SUBSIDIARIES
                           CONDENSED CONSOLIDATED BALANCE SHEETS
                      (Dollars in thousands, except per share amounts)
                                        (Unaudited)
        

                                               Sept. 28,         Dec. 30, 
                                                 1996              1995
        Assets
        Current assets:
         Cash and cash equivalents                 $   4,051        $
        2,738
         Restricted cash                                 903
        443
         Receivables, less allowances of
          $2,237 and $1,720 respectively              81,274
        61,688
         Inventories                                  82,899
        81,903
         Refundable income taxes
        --            11,377
         Prepaid expenses and other current assets    25,245
        21,059
        Total current assets                         194,372
        179,208
        Asset held for sale
        --             3,066
        Net property, plant and equipment             17,095
        15,521
        Other assets                                  23,634
        26,712
                                                $235,101         $224,507
        

        Liabilities and Stockholders' 
         Equity (Deficiency)
        Current liabilities:
         Short-term debt                              20,173
        13,906
         Current maturities of long-term debt          6,392
        6,324
         Accounts payable                             42,674
        34,208
         Accrued expenses                             28,328
        33,295
         Income taxes payable                          2,771
        1,795
          Total current liabilities                  100,338
        89,528
          

        Long-term debt, less current maturities      123,708
        112,824
        Current assets in excess of
         reorganization value                         32,896
        34,454
        Deferred postretirement benefits
         other than pensions                          10,269
        10,386
        

        Stockholders' equity (deficiency):
         Common stock, $1.00 stated value,
          50,000,000 shares authorized,
           16,772,156 shares issued and
         outstanding                              16,772           16,692
         Preferred stock, no par value,
          authorized 10,000,000 shares,
           none issued and outstanding
        --               --    
          Additional paid in capital                   3,755
        3,528
          Retained earnings (deficit)                (51,843)
        (41,830)
          Foreign currency translation adjustment       (790)
        (1,075)
        Total stockholders' equity (deficiency)  (32,107)         (22,685)
                                                $235,101         $224,507  
        

CONTACT: Converse Inc., North Reading

Investor Contact: Donald J. Camacho

Chief Financial Officer 508/664-1100

Media Contact: Ellen Pulda 508/664-1100 or Morgen-Walke Associates, New York

Investor Contact: Christine DiSanto/Caroline Babbitt 212/850-5600

Media Contact: Stacy Berns/Michael McMullan 212/850-5600




Gibraltar Packaging Group Announces Results for First Quarter of Fiscal 1997 and Completion of Bank
Refinancing


WESTPORT, Conn., Nov. 11, 1996 - Gibraltar Packaging Group, Inc. (Nasdaq: PACK), today announced results
for its first fiscal quarter ending September 30, 1996.


Gibraltar reported a net loss for the Company's first quarter of fiscal 1997 of $173,000 or $0.03 loss per share
after providing for an extraordinary after-tax loss of $107,000 or $0.02 per share. The extraordinary loss reflects
the write-off of the unamortized cost of a previous financing. Before this extraordinary item, the loss was $66,000
or $0.01 loss per share. This compares with net income in the prior year's first quarter of $471,000 or $0.09 per
share.


"As the Company expected and as announced in the previous press release, reduced demand continued into the
first quarter of fiscal 1997. However, we believe that the marketing and sales initiatives taken earlier in 1996 are
starting to produce results. In this industry, it takes some months to turn prospects into shipments and with the
usual seasonal downturn, we do not expect sales to increase significantly until the second half of the fiscal year,"
said Walter Rose, President and Chief Executive Officer.


The Company completed its refinancing in late September 1996. The new facility consists of a seven year $25
million term loan and a five year $10 million revolving credit facility. The terms include initial interest rates that
are more than 3 percent lower than the Company had been recently paying. Mr. Rose added, "We are very
pleased to have Harris Trust and Savings Bank as our new lender. In addition to providing lower interest rates,
they are providing us with the flexibility that will allow the Company to grow to its full potential."


This press release includes forward looking statements. Actual results might differ materially from those
projected in the forward looking statements. Reference is made to the Company's filings with the Securities and
Exchange Commission, including the Company's annual report for fiscal 1996 on Form 10-K, for a description of
factors that could cause actual results to differ materially from those in the forward looking statements.


Gibraltar Packaging Group, Inc. headquartered in Westport, Connecticut is a paperboard packing manufacturer
specializing in folding cartons, specialty laminated containers, tubular spiral-wound paper packaging, flexible
polyethylene film packaging, contract packaging and filling and pressure- sensitive labels.