TCR_Public/961113.MBX




InterNet Bankruptcy Library - News for November 13, 1996






Bankruptcy News For November 13, 1996



  1. Drypers Corporation third quarter net sales grow 27%; Profitability increases for second consecutive
    quarter

  2. Electrosource Announces Positive Earnings

  3. The Men's Wearhouse signs agreement to purchase assets of C&R Clothiers

  4. Detroit-Area Women to Launch Michigan Insolvency and Restructuring Network at November 14 Luncheon
    Meeting

  5. Noted Strategic Communications Expert Michael Sitrick to Receive Jewish Television Network Vision
    Award

  6. Linda's Diversified Holdings reports third quarter results

  7. Sun Sportswear Inc. announces third quarter 1996 results; agrees to merge with BSI Holdings Inc.

  8. TFC Enterprises Reports Financial Results For Third Quarter 1996




Drypers Corporation third quarter net sales grow 27%; Profitability increases for second consecutive quarter


HOUSTON, TEXAS--November 13, 1996-- Company Reaches Agreement on Mexican Acquisition


Drypers Corporation (Nasdaq: DYPR) today reported improved results for the third quarter and nine months
ended September 30, 1996.


For the quarter, net sales increased 27% to $55.1 million compared with $43.3 million for the same period of
1995. Net sales during the quarter reflected strong consumer demand in domestic markets for the Company's
premium diapers and training pants, due in part to the strong positive response to the Company's recently
introduced line of diapers with baking soda. In the quarter, revenues also reflected international sales growth in
Puerto Rico, Argentina and via the Company's contract manufacturing arrangement in Mexico.


The Company's net income, which increased for the second consecutive quarter, grew to $2.0 million, or $0.12
per share, compared with a net loss of $2.7 million, or $0.40 per share, in the third quarter of 1995. The
Company's earnings reflected the benefits of expanded margins due to reduced pulp prices, a reduction in raw
materials usage, and lower conversion costs. The Company also benefited from reduced promotional spending on
a per unit basis as well as improved leverage of the Company's fixed cost base over an increased level of sales.
Common and common equivalent shares outstanding increased to 16,118,794 in the quarter from 6,600,866 in the
year-ago period as a result of the Company's refinancing in the first quarter of 1996.


For the first nine months of 1996, net sales increased 30% to $152.9 million compared with $117.4 million for
the same period of 1995. The Company recorded a net loss for the nine months of $611,000, or $0.15 per share,
compared with a net loss of $12.1 million, or $1.84 per share, in the comparable 1995 period. There were
6,640,084 equivalent shares outstanding in 1996 versus 6,574,218 shares in 1995.


Walter V. Klemp, Chairman and Co-Chief Executive Officer, noted, "We are very pleased with our results this
quarter as they represent our Company's return to ongoing profitability. We are on track to post similar positive
results for the fourth quarter, making a modest profit achievable for the fiscal year."


Mr. Klemp continued, "Our new diaper with baking soda, in its first full quarter of production, continued to be
well received by retailers and consumers. The product significantly enhanced Drypers' profile with grocery
stores and was, in part, responsible for the opening of 12 new accounts during the quarter. We expect shipments
to these new customers to ramp up in the fourth quarter."


Mr. Klemp added, "International markets continue to play an important part in our ongoing growth strategy. Sales
in Argentina increased 7.7% this quarter and we continued to benefit from our contract manufacturing
arrangement in Mexico. The diaper market in Central and Latin America remains underpenetrated and we
anticipate continued growth there."


The Company also announced that it has reached agreement, subject to certain conditions, to acquire Pannolini de
Mexico, S.A. de C.V., its contract manufacturer in Mexico. This will allow Drypers to expand its production in
Mexico, as currently only one-third of Pannolini's production is for Drypers. Pannolini's current annual net sales
run rate is approximately $15 million, inclusive of the contract manufacturing for Drypers. The acquisition is
expected to be modestly accretive to earnings beginning with the first quarter of 1997 and should allow Drypers
to improve its profitability and expand its market share in Mexico.


Additionally, the Company has signed a letter of intent with a leasing company to finance the first of two new
production lines for use in its Vancouver, Washington plant. The new line is expected to be ready for production
in the first quarter of fiscal 1997.


Mr. Klemp concluded, "We remain very optimistic about the prospects for our business going forward. We are
developing new products for introduction in the coming fiscal year and continue to work on joint venture
opportunities in the Latin American market. As well, our new diaper lines will allow us to increase capacity in
response to growing sales. This is an exciting time for our Company. We believe that the investments we have
made provide the potential to facilitate growth and enhance shareholder value."


This press release contains forward-looking information that is subject to certain risks and uncertainties that
could cause actual results to differ materially from those projected. Some of the more significant factors noted in
the Company's Reports on Form 10-K and 10-Q, include changes in raw material prices for diaper components,
price reductions initiated by the Company's major competitors, and fluctuations in currency values and economic
conditions in international markets.


Drypers Corporation manufactures and markets disposable baby diapers and related products under the Drypers
brand name. The Company's products are sold through grocery stores and mass merchants throughout the United
States, Latin America and other international markets. The Company also produces price value branded and
private label diapers and related products.


                            DRYPERS CORPORATION
                   CONSOLIDATED STATEMENTS OF EARNINGS
                   (In Thousands, Except Share Amounts)
                               (Unaudited)
        

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

        NET SALES                 $ 55,066    $ 43,295    $152,929
        $117,393
        COST OF GOODS SOLD          33,192      30,478      93,306
        82,914
         Gross profit               21,874      12,817      59,623
        34,479
        SELLING, GENERAL                           
         & ADMINISTRATIVE EXPENSES  17,535      13,334      53,249
        39,158
        UNUSUAL EXPENSE
        --          --          --       2,358
        RESTRUCTURING CHARGE
        --          --          --       2,972
         Operating income (loss)     4,339        (517)      6,374
        (10,009)
        RELATED PARTY INTEREST EXPENSE  88          92         264
        278
        OTHER INTEREST EXPENSE, net  2,122       1,983       6,347
        5,587
        INCOME (LOSS) BEFORE INCOME
         TAXES                       2,129      (2,592)       (237)
        (15,874)
        INCOME TAX PROVISION (BENEFIT) 173          64         374
        (3,803)
        

        NET INCOME (LOSS)            1,956      (2,656)       (611)
        (12,071)
        

        PREFERRED STOCK DIVIDEND      (172)                   (392)
        

        NET INCOME (LOSS) ATTRIBUTABLE
         TO COMMON STOCKHOLDERS   $  1,784   $  (2,656)    $ (1,003)
        $(12,071)
        

        Common and common equivalent
          shares outstanding    16,118,794(a) 6,600,866    6,640,084
        6,574,218
        

        Net income (loss) per
          common share            $   0.12   $    (0.40)   $  (0.15)  $
        (1.84)
        -0-
        

        (a) Common and common equivalent shares for the three months ended 
            September 30, 1996, includes 9,000,000 common shares issuable
            upon conversion of 90,000 shares of convertible preferred shares
            issued in February, 1996.  Given the loss for the nine months
            ended September 30, 1996, such common stock equivalents have
            not been included since the impact would be antidilutive.  
        

                           DRYPERS CORPORATION
                       CONSOLIDATED BALANCE SHEETS
                              (In Thousands)
        

                                             September 30,  December 31,
                                                  1996         1995     
                                              (unaudited)    (audited)
        

        ASSETS:
        CURRENT ASSETS                                45,588       40,625
        PROPERTY AND EQUIPMENT, net of
         depreciation and amortization                36,959       36,375
        OTHER ASSETS                                  59,113       60,420
        

                                                $141,660     $137,420     
        

        LIABILITIES AND STOCKHOLDERS' EQUITY:
        

        CURRENT LIABILITIES                           41,171       44,222
        TERM LOAN                                        750        1,000
        SENIOR TERM LOAN                              44,079       43,950
        LONG-TERM SUBORDINATED DEBT                    2,400        2,400
        OTHER LIABILITIES                              3,618        4,026
        STOCKHOLDERS' EQUITY                          49,642       41,822
        

                                                $141,660     $137,420
        

CONTACT: Drypers Corporation Walter V. Klemp Chairman & Co-Chief Executive Officer (713) 682-6848 or
Morgen-Walke Associates Howard Zar/Melissa Garelick Press: Leslie Feldman/Suzanne Miller (212) 850-5600




Electrosource Announces Positive Earnings


SAN MARCOS, Texas--Nov. 13, 1996--Electrosource, Inc. (NASDAQ: ELSI), manufacturer of HORIZON(R)
energy storage technologies, reported today financial results for its third quarter, ending Sept. 30, 1996.


Revenue for the three months ended Sept. 30, 1996, was $2,696,845 (which included a special payment from
Chrysler Corporation (NYSE: C), compared to $427,277 in 1995, a 530 percent increase. Net income for the
quarter was $17,168, the Company's first quarterly profit, compared to a net loss of $5,496,586 for the same
period a year ago. Revenue for the nine months ended Sept. 30, 1996, was $3,201,011, an increase of 9 percent
compared to $2,928,714 (which included a $1 million license fee) for the same period in 1995.


Net loss for the nine months ended Sept. 30, 1996, was $5,185,045 ($1.44 per share) compared to $13,465,631
($7.11 per share) for the same period in 1995. Shareholder equity increased to $6,092,469 in September 1996
from $1,239,849 in December 1995, a 390 percent increase. The third quarter results include partial recognition
of a $3 million payment received from Chrysler, program revenue from OEMs (original equipment
manufacturers), battery sales, and reflect a continued reduction in operating expenses.


Electrosource Chairman, CEO, and President, Michael G. Semmens, commented, "The positive third quarter
results represent management's commitment to increasing revenues and reducing expenditures, and we made tough
choices in cutting costs. We have a strong management team executing our business plan to build strategic
business relationships with major OEMs, identify new energy storage products, obtain research and development
contracts to pay for the development of those products, and move the products into full-scale production. We
believe the plan is working."


Electrosource customers are validating the HORIZON(R) technology and working closely with Electrosource
engineering teams to develop a number of exciting new products. The Company expects many of these programs
to transition from product development contracts to the production purchase order stage. It will ultimately be
volume production sales from these contracts that generate consistent earnings for Electrosource. Semmens said,
"The confidence level of the entire team has never been stronger."


"Electrosource has addressed a number of financial issues and overcome technical challenges, emerging now as a
company positioned to capitalize on the growing $20 billion rechargeable energy storage market," said Semmens,
adding, "The HORIZON(R) battery technology continues to out- distance the competition on a cost/performance
basis and our manufacturing capabilities are sound and evolving. Management's resolve in carrying out the plan is
making the critical difference."


Electrosource also announced it has received Commissioners' approval necessary for permit issuance from the
Texas Natural Resource Conservation Commission to expand its San Marcos, Texas, manufacturing facility when
needed. In keeping with the Company's business plan to substantially increase capacity to meet anticipated
demand, this permit will allow Electrosource to expand the San Marcos plant to a full-scale manufacturing
facility.


Statements regarding future product development and sales growth are forward-looking statements that involve
risks and uncertainties that could cause actual results to differ materially from those set forth in the
forward-looking statements, including delays in shipment or cancellation of orders, timing of future orders,
customer reorganization, fluctuations in demand and the other risks detailed from time to time in the Company's
reports which are filed with the Securities and Exchange Commission.


Electrosource designs, manufactures and markets proprietary advanced energy storage technologies and is
headquartered in San Marcos, Texas, where it operates a state-of-the-art environmentally responsible
manufacturing facility.


                             Electrosource, Inc.
                Condensed Statements of Operations (Unaudited)
        

                            Three Months Ended       Nine Months Ended
                               September 30,           September 30,
                            ------------------       -----------------
                            1996          1995       1996         1995
                            ----          ----       ----         ----
        

         Revenues            $2,696,845 $   427,277  $ 3,201,011  $
        2,928,714
         Costs and expenses   2,679,677   5,923,863    8,386,056
        16,274,345
                         ---------- -----------  -----------  ------------
         Income (loss) before
          income taxes           17,168  (5,496,586)  (5,185,045)
        (13,345,631)
                         ---------- -----------  -----------  ------------
        Income taxes
         (foreign)                0           0            0       120,000
                         ---------- -----------  -----------  ------------
         Net income (loss)   $   17,168 $(5,496,586) $(5,185,045)
        $(13,465,631)
                              

         Net income (loss)
          per common share   $      .00 $     (2.53) $     (1.44) $
        (7.11)
                                 

        Average common
          shares outstanding  3,829,031   2,170,579    3,607,548
        1,894,623
                              

CONTACT: Electrosource Inc. Robin Roberson, 512/753-6500, or rrroberson@aol.com; or Liviakis Financial
Communications John Liviakis, 916/448-6084




The Men's Wearhouse signs agreement to purchase assets of C&R Clothiers


FREMONT, Calif.--Nov. 13, 1996--The Men's Wearhouse (NASDAQ:SUIT) announced today that it has signed
an asset purchase agreement to acquire certain assets and leasehold interests of C&R Clothiers, Inc., Los
Angeles, which filed its Chapter 11 case under federal bankruptcy law today.


Under the proposed agreement, which is subject to the approval of the bankruptcy court, The Men's Wearhouse
would assume for cash leases for up to 19 C&R stores in Southern California, enter into a lease for C&R's
current distribution center in Culver City, California, and acquire its existing inventory and certain other assets.
Depending upon the ultimate number of leases assumed and remaining levels of inventory at the time the
transaction closes, the total cost of the transaction could be up to $13.5 million.


The Men's Wearhouse said that if the proposed acquisition is approved by the bankruptcy court, it will use the
transaction to launch a new division selling lower-priced men's apparel which would operate under the name
C&R Clothiers.


Additionally, the company said it plans to utilize its three existing The Men's Wearhouse Warehouse outlets in
Houston, Dallas and Atlanta in this new division.


The new division would be headed by Neil Dinerman, who is currently president of C&R Clothiers.


"This transaction would provide us the opportunity to quickly begin operating a new, opening price point concept
and penetrate a different segment of the discount men's apparel market," said David Edwab, chief operating and
financial officer for The Men's Wearhouse. "In addition, it would expand our presence in the greater Los Angeles
area, the nation's second largest television market, where we already operate 33 Men's Wearhouse stores."


"We believe that because this concept addresses a different and new market segment, it will have minimal impact
on our core Men's Wearhouse business," Edwab added.


Edwab said this transaction will not impact the company's plans to open 45 to 50 Men's Wearhouse stores per
year in fiscal 1996 and 1997, and that the company plans to roll out additional C&R units throughout the country
in the near future.


"We have become," he continued, "a major force in men's tailored business attire as the consolidation within our
industry continues. We believe that this new opportunity will enhance our ability to not only grow revenues and
market share but also make us a more dominant player in men's clothing. In addition, we believe we have the
administrative capabilities in place to support growth of both The Men's Wearhouse and C&R concepts."


Dinerman, 49, has served as president of C&R for the past three years. Prior to that, he was a senior vice
president for Macy's South. He spent 11 years with Macy's, in both Atlanta and San Francisco, and held a variety
of merchandising management positions in areas such as menswear, footwear, young men's and boy's
merchandising and women's accessories where he directed record revenue growth for his departments.


Dinerman also served as chairman of Macy's Creative Council which conceptualized and implemented storewide
fashion promotions and related advertising campaigns. He began his retailing career with A&S, and was
merchandise vice president of men's and women's footwear, boyswear and women's accessories. Dinerman
attended Fairleigh Dickinson University in Teaneck, New Jersey, and the Fashion Institute of Technology.


Edwab stated, "This new chain will seek to attract the more price-sensitive clothing customer and allow The
Men's Wearhouse the opportunity to clear merchandise so that we can maintain the integrity of our everyday, low
pricing strategy."


The company noted that because the acquisition is subject to court approval in the C&R bankruptcy case, the
consummation and timing of the acquisition remained uncertain.


Founded in 1973, The Men's Wearhouse is one of the country's largest off-price specialty retailers of men's
tailored business attire. The stores carry a full selection of both brand name and private label suits, sport coats,
slacks, furnishings and accessories.


The company's convertible subordinated notes trade on the NASDAQ SmallCap market under the symbol
"SUITG".


This press release contains forward looking information. The forward looking statements are made pursuant to
the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward looking
statements may be significantly impacted by various factors described herein and in the company's annual report
on Form 10-K filed with the Securities and Exchange Commission for the year ended February 3, 1996.


CONTACT: Kalt Rosen & Assoc. David Edwab, 510/657-9821




Westinghouse Announces Spin-Off of Industrial Business


PITTSBURGH, PA - Nov. 13, 1996 - Westinghouse Electric Corporation (NYSE: WX) reported today that its
Board of Directors approved a plan to separate its $4.6 billion industrial business by way of a tax-free spin-off
to shareholders, forming a new publicly traded company to be called Westinghouse Electric Company (for
brevity, hereafter referred to as WELCO). It also plans a public offering by Thermo King of up to 20 percent of
the stock of Thermo King, its transport temperature control company, which will become a majority- owned
subsidiary of WELCO.


Commenting on the WELCO spin-off, Michael H. Jordan, Chairman and Chief Executive Officer of Westinghouse
Electric Corporation, said: "We will create a company with several significant advantages. The new company
will focus on two major technologies: transport temperature control and power generation, including nuclear.
Well capitalized and with strong investment programs for each of its businesses, WELCO will be a reliable,
high-performing supplier to its customers. With historical obligations now clearly defined and a rapidly declining
cost base, WELCO will be particularly attractive to investors."


The remaining business of Westinghouse Electric Corporation will consist of its $4.2 billion broadcasting
company which has major holdings in radio, television broadcasting and syndication, and cable.


Headquarters for WELCO will be Pittsburgh, Pennsylvania, the current home of Westinghouse Electric
Corporation. The broadcasting company will be headquartered in New York. After the spin-off, each company
will have its own board of directors, officers, and publicly traded stock.


The Separation Plan Commenting on the separation decision, Mr. Jordan said, "We will create for our
shareholders two companies with solid market positions and first-rate operations. They will be structured and
financed to compete and win in their respective markets, with the management talent and investment potential to
provide maximum value and return to all of our shareholders."


For the past several months, the Westinghouse management team has been addressing various options with the
objective of:


1. Maximizing the value to shareholders of each of its major businesses: broadcasting, power systems, and
Thermo King.


2. Rationalizing the structure to recognize that Westinghouse's broadcasting and industrial businesses are
operating in vastly different environments and are being managed as two separate companies today. 3.
Discharging obligations of the past in the most economically favorable manner.


4. Optimizing the approximate $1.8 billion tax net operating loss carry forward (NOL).


After reviewing a number of options, the management team recommended, and the Board of Directors approved,
a plan that is expected to maximize the long- term after-tax value for Westinghouse shareholders. The plan
capitalizes each business appropriately to reflect respective business opportunities and risks.


Specifically, the broadcast company will retain all debt obligations of the current Westinghouse Electric
Corporation as well as the tax NOL. WELCO will assume most of the unfunded pension obligations and other
non-debt obligations ("legacies") generated by Westinghouse's industrial companies in earlier years. The
proceeds of the Thermo King public offering will provide initial cash funding for WELCO.


Commenting on the benefits of the proposed transaction, Fredric Reynolds, Westinghouse's Executive Vice
President and Chief Financial Officer, said, "This is a pragmatic structure that creates real strategic and
operational advantages for the two companies, while maximizing benefits for our shareholders. For our broadcast
company, it creates a very attractive pure- play media stock that maximizes the value of the NOL. For our
industrial company, it launches WELCO with a strong balance sheet and illuminates the significant value of
Thermo King to both our existing shareholders and new investors."


Completion of the separation is subject to a number of conditions, including a favorable ruling from the Internal
Revenue Service that the transaction will not be taxable to Westinghouse's shareholders or to Westinghouse and
registration of the WELCO stock with the Securities & Exchange Commission. The company anticipates it will
take approximately nine months to formally separate the two companies, with the planned Thermo King public
offering taking place prior to the formal separation.


The Broadcasting Company After the spin-off, Westinghouse Electric Corporation (the current parent company)
will consist of CBS Inc., the largest television and radio broadcaster; Group W Satellite Communications
Company, a leading cable television marketing and distribution company; and Infinity Broadcasting when this
previously announced acquisition is completed.


With approval of the U.S. Department of Justice announced yesterday, closing of the Infinity transaction is
expected by end of this year, subject to FCC approval and the approval of Westinghouse and Infinity
Shareholders.


Mr. Jordan said, "We believe that our Broadcasting Company is superbly positioned to provide attractive
long-term growth. Under the leadership of Peter Lund, CEO of CBS, and his management team, our TV network
and station business is well on the way to a major turnaround. In radio, one of the fastest growing broadcast
media, CBS and Infinity each continues to outpace the industry's revenue growth and operating margins. With Mel
Karmazin, CEO of Infinity Broadcasting, at the helm of our radio operations after the acquisition is completed,
we are confident that excellent performance will continue."


The New Westinghouse Electric Company (WELCO) WELCO will consist of four business units, each with
significant market positions and strong technology leadership in its respective industries: Thermo King, Power
Generation, Energy Systems and Government Operations.


Thermo King is the world leader in mobile transport temperature control equipment for trucks and trailers and is
a strong participant in the related markets for bus air-conditioning and seagoing containers. Thermo King's
product quality, outstanding service support and global presence are expected to continue its outstanding revenue
and profit growth over the next decade.


Westinghouse Power Generation holds market and technology leadership positions for steam and combustion
turbines in a global market expected to experience 60% growth in new capacity additions over the next ten years.
Its technology represents 25 percent of the world's installed power generation capacity - the second largest
worldwide. Although it faces a difficult domestic market, Westinghouse Power Generation maintains its strong
positions in the high-growth markets of Asia and Latin America that are expected to yield sustained profitable
growth.


Westinghouse Energy Systems helped pioneer the commercial nuclear power business and today holds the
premier position for nuclear fuel, services and technology in the $9 billion annual global market. The unit has an
unparalleled record of supporting the nuclear utility industry to achieve high levels of safety, operating, and cost
performance. It has translated its strong global franchise into performance and market leadership.


Westinghouse Government Operations manages Department of Energy sites and Army chemical de-militarization
operations as well as provides development and support services for the Navy's nuclear powered vessels. The
unit's strong nuclear technology base and its experience in handling, stabilizing and safely storing nuclear waste
have resulted in contracts that extend beyond the turn of the century and position it for a significant share of this
growing business.


Concurrent with the separation plans, Westinghouse announced that it is divesting its Security Systems businesses
and restructuring its Pittsburgh corporate headquarters and other industrial businesses to significantly reduce
WELCO's overhead and operating costs. The staffs of the corporate and industrial group headquarters and a
number of administrative functions in the business units will be consolidated. Several operations and processes
in the Energy Systems business unit have also been reengineered to improve productivity and to address changing
market conditions in the power industry. Total personnel reductions will be approximately 1100, about five
percent of WELCO's workforce, excluding its government operations employees. A one-time restructuring charge
of approximately $125 million will be taken in the 4th quarter to cover severance and related costs.


Management Michael H. Jordan will be Chairman and CEO of the broadcasting company and non-executive
Chairman of WELCO for a transition period. A successor to Mr. Jordan as chief executive officer of WELCO
will be chosen prior to the separation.


Until the separation, Mr. Jordan will continue to serve as Chief Executive Officer of both WELCO and the
broadcast company. He will be assisted by the current operating management of the two companies.


The Westinghouse Board of Directors has appointed Gary M. Clark, President of Westinghouse, to the additional
post of Vice Chairman. Mr. Clark will work closely with Mr. Jordan and Francis J. Harvey, Chief Operating
Officer of WELCO, to ensure a smooth transition and to further our strong partnership with our customers and
host communities.


SOURCE Westinghouse Electric Corporation /CONTACT: Mimi Limbach, 212-975-2081, or Kevin Ramundo,
212-975- 5418, both of Westinghouse; or Gil Schwartz of CBS Trade Press, 212-975-2121; or Vaughn Gilbert of
Westinghouse Industrial Trade Press, 412-642-5564; or Roy Morrow of Westinghouse Pittsburgh & Communities
Press, 412-642- 3005/




Detroit-Area Women to Launch Michigan Insolvency and Restructuring Network at November 14 Luncheon
Meeting


DETROIT, Nov. 13, 1996 - Two specialists in bankruptcy, restructuring and crisis management, Sheryl L. Toby
and Debra E. Kuptz, have formed the Michigan Network of the International Women's Insolvency and
Restructuring Confederation (IWIRC). They will launch the group with a luncheon and networking session at
noon Thursday, November 14, at the Detroit Club.


IWIRC is an international professional association that explores and enhances the position of women
professionals in the insolvency, restructuring and related fields. Members include insolvency attorneys,
accountants and bankers. The Michigan Network's goal is to create a networking and support system for local
women insolvency professionals, with opportunities to meet in a relaxed social atmosphere.


The founders of the Michigan Network of IWIRC bring to their new group long-standing experience and expertise
in the areas of insolvency and restructuring.


Sheryl Toby, a partner in the Detroit law firm of Honigman Miller Schwartz and Cohn, specializes in bankruptcy
and commercial law. Her experience ranges from representing lenders and large corporate creditors to serving as
counsel to trustees and debtors. She has developed special expertise in the interplay between employee benefits -
particularly health care - and bankruptcy, including the ways federal employment law, state insurance law, state
tort law and ERISA relate to health and medical claims in bankruptcy.


Debra Kuptz is a principal in the corporate turnaround and crisis management firm of Jay Alix & Associates in
Southfield, specializing in crisis communications, public relations and marketing. She helps clients develop
strategic communications programs during their restructuring and reorganization, targeting the programs for each
constituency - from employees and shareholders to customers, suppliers and lenders.


Founded in December 1993, IWIRC is a not-for-profit professional association. In addition to several state
networks nationwide, networks have formed in other countries including Australia and Canada.


Any professionals whose work is related to the insolvency and restructuring fields are invited to attend the
inaugural luncheon meeting on Nov. 14. The Detroit Club is located at 712 Cass Avenue, between Lafayette and
Fort streets in downtown Detroit. The luncheon cost is $20.00.


Reservations for the luncheon and additional information on the Michigan Network are available by calling
Sheryl L. Toby at Honigman Miller Schwartz & Cohn, 313-256-7898.


SOURCE Michigan Network of International Women's Insolvency and Restructuring Confederation /CONTACT:
Debra Kuptz of IWIRC, 810-358-4420, or J.B. Dixson of DurocherDixsonWerba, 313-259-9770/




Noted Strategic Communications Expert Michael Sitrick to Receive Jewish Television Network Vision Award


LOS ANGELES, Nov. 13, 1996 - The Jewish Television Network (JTN) announced today that the recipient of its
1996 Vision Award, which recognizes outstanding individuals who have made a significant contribution to the
use of television in promoting intergroup harmony and positive Jewish identity, is Michael S. Sitrick, founder and
chief executive officer of Sitrick And Company, one of the nation's largest independent public relations agencies.
The award will be presented to Mr. Sitrick, who is a member of JTN's Board of Directors, at a gala dinner in his
honor on November 19 at the Loews Santa Monica Beach Hotel.


JTN Executive Director Jay Sanderson said, "Despite an unbelievable schedule which finds him in New York
one day, Washington, D.C. the following day and in San Jose, California, the next, Michael always manages to
find time for both his family and the community. In less than eight years, he has built one of the most powerful
public relations firms in the nation, which, along with one or two others, literally dominates the crisis and
sensitive situation markets. Yet, he remains active in both Jewish and community affairs. He has not only made
his own time available to JTN and the Jewish community, as a whole, but the resources of his firm, as well. He
has proven both a valuable resource and a role model to the rest of the community."


Sitrick And Company, based in Century City, California, specializes in corporate, financial, transactional and
crisis communications. While the firm has an active and successful practice in each of those areas, it is best
known for its work in crisis and sensitive matters. In its eight years, the firm has represented more than 400
clients, including some of the highest profile situations in the nation. Matters with which Sitrick And Company
have been involved include Orange County's bankruptcy, the aftermath of the FBI raid on National Medical
Enterprises, Kim Basinger's Chapter 11, Barneys Chapter 11 filing, Credit Lyonnais's $1.5 billion lawsuit against
billionaire Kirk Kerkorian, the Herbert Haft family lawsuit and the Altus Finance purchase of Executive Life.
Other clients of Sitrick include billionaire Marvin Davis, fight promoter Don King, Guess?, Inc. and the City of
Beverly Hills.


Mr. Sitrick founded Sitrick And Company in 1989, after serving for seven years as a senior vice president of
Wickes Companies, Inc., heading public relations and public affairs for National Can Corporation and serving as
a member of the Mayor Richard J. Daley administration in Chicago.


Over the past decade, Mr. Sitrick and his firm have become synonymous with crisis public relations, with Mr.
Sitrick being recognized as one of the industry's foremost practitioners. Recently, the National Union Fire
Insurance Company, one of the nation's largest underwriters of corporate liability insurance, named Sitrick And
Company one of only five crisis management public relations firms in the nation whose costs it would cover for
its customers as part of its corporate liability policy. Sitrick was the only firm named that is headquartered
outside of New York.


In addition to his work for the Jewish Television Network and other community organizations, Mr. Sitrick
chaired "Liberation '95" a sell-out concert starring, among others, Billy Crystal and Bob Saget, at the Dorothy
Chandler Pavilion in Los Angeles commemorating the survival of the Jewish people and other victims of the
Holocaust.


Mr. Sitrick said that he was flattered by JTN's award. "I had been taught long ago that one has a responsibility not
only to his family and his business, but to his community," he said. "I have always tried to achieve a balance and
am pleased to be in a position to be able to give something back. JTN is doing important, meaningful work. I am
proud to be a part of such a worthwhile organization and to be able to contribute to its success."


The Jewish Television Network was founded in 1981, and is currently seen on cable channels in Southern
California and Washington, DC. In 1996 it embarked on an expansion plan that in 1997 will bring JTN
programming to major cities coast to coast and, soon thereafter, to Israel. Its programming lineup includes
newscasts, current event analysis and commentary, celebrity interviews and talk shows, and children's programs.
One of JTN's children's productions, "Alef... Bet... Blast-off: A Chanukah Mitzvah," about a small boy's search
for the meaning of Chanukah, has been nominated for a 1996 Cable ACE Award.


The Vision Award dinner will be emceed by actor and stand-up comedian Glenn Hirsch, who has appeared
professionally in feature films, television series and in comedy clubs nationwide. Entertainment will be provided
by The Tokens, whose 1961 hit "The Lion Sleeps Tonight" has become a classic.


SOURCE Jewish Television Network /CONTACT: Jay Sanderson, Executive Director, or Jonathan Schreiber,
Director of Development and Marketing, 310-273-6841; or Anne DeWolfe or James Bourne of Sitrick and
Company, 310-788-2850/




Linda's Diversified Holdings reports third quarter results


CRANFORD, N.J.--Nov. 13, 1996--Linda's Diversified Holdings Inc. (NASDAQ:LINCU,LINCA) today
reported results for the third quarter and nine months ended Sept. 30, 1996.


For the third quarter ended Sept. 30, 1996, Linda's Diversified Holdings reported a net loss of $471,000 (20
cents per share) compared to a net loss of $584,000 (36 cents per share) for the third quarter of 1995. The
company noted that this year's third quarter included expenses of approximately $285,000 related to the start-up
of its newly-formed subsidiary, National Home Guaranty ("NHG"). For the first nine months of 1996, net loss
was $1,907,000 (92 cents per share) compared to $1,546,000 (96 cents per share) in the same period last year.
The company noted that the current year loss included a $267,000 restructuring charge relating to the closing of a
restaurant and $902,000 in expenses incurred in the start-up and test operations of NHG.


Restaurant sales and franchise revenue for the third quarter and nine months ended Sept. 30, 1996, totaled
$297,000 and $948,000, respectively. This compares with $644,000 and $1,921,000, for the third quarter and
first nine months of 1995, respectively. The company noted that the total sales decline was due in part to having
five company-owned restaurants open through the third quarter of 1995 compared with three and two restaurants
for the second and third quarters of 1996, respectively. Same store restaurant sales for the nine months ended
Sept. 30, 1996, decreased $127,000 (17%) from the same period in 1995, due in part to a temporary increase in
sales during the summer of 1995 resulting from a Buy 1 Get 1 Free chicken meal promotion that was not in effect
in 1996.


The company noted that during the past year it has been increasingly focused on its franchising business. In
September, Linda's opened the first of up to 18 restaurants under a multi-unit franchise agreement in Flemington,
N.J. In addition, two other franchised restaurants are scheduled to open in Oakland and South Orange, N.J. in
November and December, respectively.


To provide the company with a diversified source of sales and income, and capitalize on management's
experience in the home finance and remodeling industries the company formed NHG earlier this year. NHG
provides homeowners with a single source for both federally guaranteed and conventional home improvement
loans, as well as recommending qualified contractors to the borrowers. The company recently launched
operations in the New York metropolitan area and is currently operating in Massachusetts, Connecticut, New
Hampshire, Rhode Island, New Jersey, Pennsylvania, Delaware and Maryland.


Beginning in May 1996, NHG began receiving revenue from test marketing. For the period ending Sept. 30, 1996,
revenues amounted to $39,000 derived from loans totaling $506,000. NHG derives revenue from marketing fees
from participating contractors representing a percentage of each completed contract and receives premiums from
the sale of resulting loans to third-party lenders.


Commenting on the results, Peter Weissbrod, President and Chief Executive Officer of Linda's Diversified
Holdings said, "1996 continues to be the transition year we expected. As a result of the progress we have made to
date curtailing the losses in our restaurant business by closing some company stores and focusing on franchising,
combined with the momentum building at NHG, we remain optimistic about Linda's future growth."


Linda's Diversified Holdings Inc. is a holding corporation consisting of restaurant operations, restaurant
franchising and home- equity loan operations.


Except for the historical information contained above, the matters set forth in this press release are forward
looking and involve a number of risks and uncertainties. Among the factors that could cause actual results to
differ materially are the following: business conditions and growth in the industry, general economic conditions,
product development, competition, government regulations, rising costs for food and paper supplies, the risk of
franchising and all the risks associated with start-up businesses as it relates to the activities of NHG, and the risk
factors listed from time to time in the company's Registration Statement filed on Form S-3 on July 24, 1996 and
reports on Form 10-Q for the quarter ended Sept. 30, 1996.


           Linda's Diversified Holdings Inc. and Subsidiaries
                  Consolidated Statements of Operations
                               (Unaudited)
        

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

        Revenues                $ 986,310  $1,921,244   $311,659   $644,217
        Costs and expenses           
        Restaurant operations  (1,023,001) (2,201,247)  (282,111)  (781,563)
        Loan operations          (902,469)      --      (285,726)     --
        General and admin.       (743,773) (1,255,511)  (231,077)  (371,307)
        Restructuring            (266,987)    (95,000)     --       (95,000)
        Net loss               (1,906,954) (1,546,159)  (471,489)  (583,688)
        Net loss per share          (0.92)      (0.96)     (0.20)     (0.36)
        Average number of shares
         outstanding            2,076,333   1,615,000  2,415,000  1,615,000
        

CONTACT: Linda's Diversified Holdings Inc. Peter Weissbrod, 908/276-2080 ext. 19 or Rubenstein Investor
Relations Dina Silva, 212/843-8057




Sun Sportswear Inc. announces third quarter 1996 results; agrees to merge with BSI Holdings Inc.


KENT, Wash.--Nov. 13, 1996--Sun Sportswear Inc. ("Sun" or the "Company") (NASDAQ:SSPW) today
announced third quarter 1996 results and the signing of an agreement to merge with BSI Holdings Inc. ("BSI").


Merger with BSI


Sun has entered into a definitive merger agreement with respect to the merger (the "Merger") of the Company and
BSI Holdings Inc., which has been approved by the boards of both companies. The Merger would position the
combined entity as one of the leading character apparel licensees in the United States.


The terms of the agreement provide for Sun stockholders, other than Seafirst Bank ("Seafirst"), to receive cash in
the amount of $2.20 per share for 50% of their shares. The non-Seafirst shareholders will retain the remaining
50% of their shares, subject to the right to elect to retain 100% of their shares and forgo the cash consideration.
Seafirst, the owner of 3.8 million shares or 66.1% of the outstanding common stock of the Company, will have
48.3% of its shares exchanged for $2.20 per share of cash and a convertible promissory note. Seafirst will retain
its remaining shares, subject to adjustment based on the elections of the non-Seafirst shareholders.


The Merger is structured as a tax free exchange of shares (except to the extent Sun common stockholders receive
cash or notes).


BSI, through its primary operating subsidiary Brazos Sportswear Inc., is a manufacturer and distributor of
decorated sportswear with annualized revenues of approximately $200 million. BSI operates facilities in 10
states and sells products throughout the United States to over 15,000 customers. All shares of BSI will be
converted into shares of Sun common stock, which upon closing of the Merger will represent approximately 88%
of Sun's outstanding shares, after taking into consideration warrants and options to purchase such shares.


The Merger is conditioned upon certain regulatory approvals and approval of the shareholders of both
companies. The Merger is expected to be completed by Feb. 28, 1997.


Bill Wiley, president and chief executive officer of Sun, stated, "We are excited about the future prospects that
will result from a Sun and BSI combination. The organizations are a strong complement to each other and will
result in a larger customer base, a broader license portfolio, broader manufacturing capabilities and improved
utilization, an expanded sales force, and stronger domestic and international sourcing."


Third Quarter 1996 Results of Operations

Sun posted net sales of $9.1 million for the three months ended Sept. 30, 1996, compared to $16.2 million in the
same period of 1995. Net loss was $2.2 million, or $0.39 per share, for the 1996 quarter, versus a net loss of
$2.9 million, or $0.52 per share, in the same quarter of 1995.


Wiley stated, "Sales in the third quarter of 1996 were hampered by a soft retail environment in certain sectors of
the screenprinted apparel market."


The loss was lower in the 1996 quarter due to lower operating expenses, which resulted from a restructuring plan
implemented by the Company earlier in 1996; lower interest expenses, which resulted from concerted efforts by
the Company to operate in 1996 with lower levels of inventory; and the Company's much lower inventory
markdown reserves in the third quarter of 1996 (third quarter 1995 included a $2 million -- pre-tax -- inventory
markdown).


For the nine months ended Sept. 30, 1996, net sales were $53.6 million compared to $72.5 million in 1995. Net
loss for 1996 decreased to $1.9 million, or $0.34 per share, compared to the 1995 net loss of $2.6 million, or
$0.46 per share.


The Company noted that sales for the fourth quarter of 1996 are anticipated to be below fourth quarter 1995
levels.


Sun supplies its line of imprinted, dyed and decorated casual sportswear for adults and children, primarily to
customers in the mass merchandising and mid-tier segments such as Wal-Mart, Target, Kmart, JC Penney and
Montgomery Ward.


                               SUN SPORTSWEAR
                             Financial Highlights
                     (In thousands, except per-share data)
        

                                For the quarter      For the nine months
                                     ended                  ended
                                   Sept. 30,              Sept. 30,
                                1996       1995        1996      1995
                                   Unaudited              Unaudited
        

        Net Sales                 $  9,134  $  16,225    $ 53,602  $ 72,527
        Gross Margin                    33       (873)(a)   7,005
        7,596(a)
        Operating Expenses           3,333      3,505       9,499    10,794
        Interest and Other Expense      68        153         441       797
        Net Loss                    (2,224)    (2,990)     (1,937)   (2,636)
        Earnings Per Share           (0.39)     (0.52)      (0.34)    (0.46)
        Weighted Average Shares
         Outstanding                 5,749      5,749       5,749     5,748
        

        (a) Includes a $2 million inventory markdown reserve recorded in 
        the third quarter of 1995 to cover expected losses on the sale of
        surplus inventory.
        

                                      Sept. 30, 1996  Dec. 31, 1995
        

        Inventories                           $ 19,416      $ 23,631
        

CONTACT: Sun Sportswear Inc. Kevin James, 206/251-3565




TFC Enterprises Reports Financial Results For Third Quarter 1996


NORFOLK, Va., Nov. 13, 1996 - TFC Enterprises, Inc. (Nasdaq: TFCE) today reported a third quarter 1996 net
loss of $(0.9) million, or $(.08) per common share. This compares to net income of $2.1 million, or $.18 per
common share, in the third quarter of 1995. Results reported for the first nine months of 1996 were a net loss of
$(0.5) million, or $(.05) per common share, compared to net income of $5.8 million, or $.52 per common share,
in the first nine months of 1995.


The loss for the 1996 third quarter and first nine months was caused primarily by $1.8 million in severance
benefits associated with the termination of four senior executives effective September 30, 1996, as part of the
Company's previously announced restructuring plans to reduce operating expenses. The Company estimates that
the executive terminations will reduce operating expenses, consisting primarily of salaries and benefits, by
approximately $1.0 million each year for the next three years.


Also as part of its restructuring plans, the Company has implemented the previously announced closing of its
Southwest Regional Service Center in Dallas, effective the first week of November, with the transfer of this
center's servicing activities to the Norfolk, Virginia and Jacksonville, Florida service centers. The Company
estimates that this realignment will reduce annual operating expenses by approximately $1.9 million while still
maintaining its presence in the Southwest region through a Loan Production Office in the Dallas area. The
estimated expense of closing the Dallas service center, and the previously announced relocation of the Company's
accounting office from Manassas, Virginia, to Norfolk, is $0.6 million, which will be incurred in the fourth
quarter of 1996.


"These actions mark the completion of the most significant steps in our restructuring plans to return our business
to its historic pattern of profitable growth," said Robert S. Raley, the Company's Chairman, President and Chief
Executive Officer. "Barring unforseen circumstances, we are optimistic that 1997 will be a profitable year for
TFC, driven by renewed growth in our traditional military point of sale and civilian portfolio purchase
businesses," added Mr. Raley.


Gross contracts purchased or originated totaled $42.6 million in the third quarter of 1996, or 51.4% below the
$87.7 million purchased in the third quarter of 1995. For the first nine months of 1996, gross contract volume
totaled $98.0 million, or 60.9%, below the $250.7 million volume for the first nine months of last year. The
decrease in gross contract volume in the third quarter and first nine months of 1996, relative to the comparable
periods in 1995, was primarily attributable to a significant reduction in point of sale purchases, resulting from
adjustments to the Company's credit and pricing guidelines in late 1995, and to increased competition from other
lenders. The adjustments to the Company's credit and pricing guidelines were directed toward reducing the rate
of future charge-offs and delinquencies.


Net interest revenue for the third quarter of 1996 totaled $6.3 million, a decrease of 37.8% compared with the
$10.1 million reported in the third quarter of 1995. For the first nine months of 1996, net interest income was
$21.3 million, down 21.2% from $27.0 million in the first nine months of 1995. The decreases were attributable
to a reduction in interest earning assets and a decrease in the net interest margin.


Average interest earning assets for the third quarter of 1996 were $176.1 million, a decrease of 23.4% compared
to the third quarter 1995 level of $229.9 million. For the first nine months of 1996, average interest earning assets
were $194.7 million, down 5.4% from $205.8 million in the first nine months of 1995.


The net interest margin was 14.2% in the third quarter of 1996, compared to 17.5% in the third quarter of 1995.
For the first nine months of 1996, the net interest margin was 14.6%, compared to 17.5% in the first nine months
of 1995. The decreases were attributable to a reduction in the yield on interest earning assets and an increase in
the cost of interest bearing liabilities.


The yield on interest earning assets decreased from 23.4% in the third quarter of 1995 and 23.2% in the first nine
months of 1995 to 21.5% and 21.7% in the third quarter and first nine months of 1996, respectively. The
decreases were primarily attributable to reductions in the amount of contract purchase discount accreted to
interest revenue as a yield enhancement.


The cost of interest bearing liabilities was 9.7% in the third quarter of 1996 and 9.5% in the first nine months of
1996, compared with 8.6% in the third quarter of 1995 and 8.5% in the first nine months of 1995. The increase
was primarily attributable to higher interest rates charged to the Company under forbearance agreements with its
lenders.


As a result of the Company's net losses in the second and third quarters of 1996, the Company is not in
compliance with certain aspects of forbearance agreements with lenders. The Company is currently in
discussions with its lenders to resolve the out-of-compliance situations. Although the Company is not able to
predict what the ultimate resolution of the discussions will be, certain of the remedies available to the lenders as
a result of the defaults include repricing and/or foreclosure of the loans, which could have a material adverse
effect on the Company's business, financial condition and results of operations, as well as its ability to continue
as a going concern.


The Company's credit and forbearance agreements with lenders are discussed in more detail in the TFC
Enterprises, Inc., 1995 Annual Report on Form 10-K.


Operating expense was $8.2 million and $20.6 million in the third quarter and first nine months of 1996,
respectively. This compares with $6.0 million and $17.4 million in the third quarter and first nine months of last
year. The increases were primarily attributable to the $1.8 million in severance benefits, described above, and to
higher repossession expenses. Also contributing to the increase in operating expense was the growth of First
Community Finance, Inc., the company's subsidiary engaged in the business of originating and servicing small
consumer loans.


Operating expense as an annualized percentage of average interest earning assets increased from 10.4% in the
third quarter of 1995 to 14.5% in the third quarter of 1996. For the first nine months of 1996, operating expense
represented 12.9% of average interest earning assets, on an annualized basis, compared to 11.3% in the first nine
months of 1995. The increase in the percentage for the three and nine month periods was caused by increased
expenses and a decrease in net contract receivables as a result of decreased gross contract volume. The $1.8
million of severance benefits discussed above that were incurred in the third quarter of 1996 have been excluded
from these ratio calculations.


Provision for credit losses was zero and $2.5 million in the third quarter and first nine months of 1996,
respectively. Provision for credit losses of $1.3 million was recorded in the third quarter of 1995 and $1.5
million was recorded during the first nine months of 1995. The Company's primary business involves purchasing
installment sales contracts at a discount to the remaining principal balance. A portion of the discount is typically
held in a nonrefundable reserve against which credit losses are first applied. Additional provisions for credit
losses, if necessary, are charged to income in amounts sufficient to maintain the combined allowance for credit
losses and nonrefundable reserve at an amount considered adequate to absorb future credit losses.


At September 30, 1996, the combination of the Company's allowance for credit losses and nonrefundable reserve
totaled $26.4 million, or 15.7% of gross contract receivables net of unearned interest. This compared to $43.5
million, or 19.7%, at December 31, 1995, and $37.6 million, or 15.5%, at September 30, 1995. In addition, the
refundable dealer reserve, which is available to absorb losses relating to contracts purchased from certain
dealers, totaled $1.8 million at September 30, 1996, compared to $3.3 million at December 31, 1995, and $4.2
million at September 30, 1995.


Net charge-offs to the allowance for credit losses and nonrefundable reserve were $8.0 million in the third
quarter of 1996, representing an annualized rate of 19.1% of average contract receivables net of unearned
interest. This compares to $9.2 million, or 15.9%, in the third quarter of 1995. For the first nine months of 1996,
net charge-offs were $31.4 million, or 22.5% of average contract receivables net of unearned interest, compared
to $21.2 million, or 13.5%, in the first nine months of 1995. The increase in net charge-offs in the third quarter
and first nine months of 1996, relative to the comparable prior year periods, was primarily attributable to higher
charge-offs relating to assets purchased prior to 1996. This was offset, in part, by an increase in recoveries.
Recoveries increased to $1.4 million in the third quarter of 1996 and $5.5 million in the first nine months of
1996. This compares to $.7 million in the third quarter of 1995 and $2.1 million in the first nine months of 1995.
Gross contract receivables that were 60 days or more past due totaled $15.8 million, or 7.9% of gross contract
receivables at September 30, 1996, compared to $18.4 million, or 6.8%, at December 31, 1995, and $23.3
million, or 7.8% at September 30, 1995.


In addition to historical information, this press release contains forward looking statements that are subject to
risks and uncertainties that could cause the Company's actual results to differ materially from those anticipated in
these forward looking statements. Readers are cautioned not to place undue reliance on these forward looking
statements, which reflect management's current analysis. For example, during 1997 the Company's operations
could be materially adversely affected if interest rates were to rise, if credit experience deteriorated, or the
Company were to face increased competition.


TFC Enterprises, Inc., through its wholly-owned subsidiary, The Finance Company, specializes in purchasing and
servicing installment sales contracts originated by automobile and motorcycle dealers. Through First Community
Finance, Inc., another wholly-owned subsidiary, TFC Enterprises, Inc. is involved in the direct origination and
servicing of small consumer loans. Based in Norfolk, VA, TFC Enterprises, Inc. also has offices in Dallas, TX,
Jacksonville, FL, San Diego, CA, and throughout Virginia and North Carolina.


NOTE: Detailed supplemental information follows.


                                 TFC ENTERPRISES, INC.
                             CONSOLIDATED BALANCE SHEETS
                                     (Unaudited)
        

                                       9/30/96    12/31/95    9/30/95
        

        (dollars in thousands)
        Assets
        Cash                         $  8,929    $ 12,507   $  3,617
        Net contract receivables      139,082     171,051    197,413
        Recoverable income taxes        3,126       3,904        219
        Property and equipment, net     3,171       2,256      2,303
        Goodwill, net                  11,046      11,656     11,860
        Other intangible assets, net    2,388       2,596      2,666
        Deferred income taxes           2,178       6,911      8,083
        Other assets                    2,128       4,265      2,588
        

         Total assets                $172,048    $215,146   $228,749
        

        Liabilities and shareholders'
          equity
        Liabilities:
        Revolving line of credit     $ 68,757    $ 59,475   $ 98,234
        Term notes                     25,000      50,000     50,000
        Automobile Receivables-
          Backed notes                 21,569      47,252        --
        Subordinated notes, net        13,780      13,732     14,961
        Accounts payable and
          accrued expenses              4,525       4,146      6,880
        Income taxes payable               --          --      5,031
        Refundable dealer reserve       1,181       3,250      4,232
        Other liabilities                 104         887        703
        

         Total liabilities            135,553     178,742    180,041
        

        Shareholders' equity:
          Common stock, $.01 par value,
           40,000,000 shares authorized;
           11,290,308, 11,283,954, and
           11,282,719 shares outstanding
           at 9/30/96, 12/31/95 and
           9/30/95, respectively            49          49         49
          Additional paid-in capital    54,910      54,279     54,277
          Retained deficit              18,464     (17,924)   ( 5,618)
        

         Total shareholders' equity     36,495      36,404     48,708
        

         Total liabilities and
          shareholders' equity        $172,048    $215,146   $228,749
        

                                  TFC ENTERPRISES, INC.
                              CONSOLIDATED INCOME STATEMENTS
                                       (Unaudited)
        

                                 Three Months Ended      Nine Months Ended
                                 9/30/96    9/30/95      9/30/96   9/30/95
        

        (in thousands, except per share amounts)
        

        Interest and other
         finance revenue         $ 9,459   $13,420      $31,707   $35,770
        Interest expense           3,189     3,341       10,440     8,780
        

        Net interest revenue       6,270    10,079       21,267    26,990
        

        Provision for
         credit losses                --     1,250        2,500     1,500
        

        Other revenue                375       633        1,383     1,778
        

        Operating expense:
         Salaries                  3,318     3,270        9,634     9,613
         Employee benefits           457       485        1,465     1,519
         Occupancy                   271       199          753       504
         Equipment                   326       348          946       842
         Amortization of
          intangibles                273       273          819       819
         Severance benefits        1,804        --        1,804        --
         Other                     1,750     1,408        5,226     4,138
        

        Total operating
         expense                   8,199     5,983       20,647    17,435
        

        Income (loss)  before
         income taxes             (1,554)    3,479        ( 497)    9,833
        

        Provision for(benefit
         from)income taxes         ( 638)    1,409           43     3,988
        

        Net income (loss)        $ ( 916)  $ 2,070     $   (540)  $ 5,845
        

        Net income (loss) per
         common share             $  (.08)  $   .18      $   (.05)  $   .52
        

        TFC ENTERPRISES, INC.
        FINANCIAL HIGHLIGHTS
        (Unaudited)
        

                                 Three Months Ended      Nine Months Ended
                                 9/30/96    9/30/95      9/30/96   9/30/95
        

        (dollars in thousands)
        

        CONTRACT PURCHASES
         Point of sale          $ 19,150  $ 68,274     $ 52,215  $197,746
         Portfolio                23,472    19,385       45,755    52,983
         Total                  $ 42,622  $ 87,659     $ 97,970  $250,729
        

        AVERAGE BALANCES
         Interest earning
          assets                 $176,097  $229,895     $194,699  $205,803
         Total assets             174,952   220,221      189,920   196,579
         Interest bearing
          liabilities             131,723   156,023      145,841   138,406
         Equity                    36,909    47,686       37,041    45,715
        

        PERFORMANCE RATIOS..
         Return on average
          assets                       NM     3.76%            NM     3.96%
         Return on average
          equity                       NM    17.37%            NM    17.05%
         Yield on interest
          earning assets           21.49%    23.35%        21.71%    23.17%
         Cost of interest
          bearing liabilities       9.68%     8.56%         9.54%     8.46%
         Net interest margin       14.24%    17.54%        14.56%    17.49%
         Operating expense/
          Interest earning
          assets                  14.53%    10.41%       12.90%    11.30%
        

         Total net charge-offs
          to average gross
          contract receivables,
          net of unearned
          interest                19.11%    15.93%        22.52%    13.54%
         60 day delinquencies
          to gross contract
          receivables, period
          end                      7.94%     7.76%        7.94%     7.76%
         Total allowance and
          nonrefundable reserve
          to gross contract
          receivables net of
          unearned interest,
          period end              15.71%    15.46%       15.71%    15.46%
        

         Equity to assets,
          period end              21.14%    21.29%       21.14%    21.29%
        

        ..Annualized as appropriate
        TFC ENTERPRISES, INC.
        CONTRACT RECEIVABLES SUMMARY
        (Unaudited)
        

                                        9/30/96    12/31/95    9/30/95
        

        (dollars in thousands)
        

        Gross contract receivables     $198,455    $271,039   $299,744
        

        Less:
        

          Unearned interest revenue      30,489      49,878     56,810
        

          Unearned discount                 567       1,320      1,704
        

          Unearned commissions            1,243       2,193      2,057
        

          Unearned service fees             179        (210)        12
        

          Payments in process                (2)      2,906      3,571
        

          Escrow for pending
           acquisitions                     503         419        620
        

          Allowance for credit losses    12,504      23,046      4,401
        

          Nonrefundable reserve          13,890      20,436     33,156
        

           Net contract receivables    $139,082    $171,051   $197,413
        

SOURCE TFC Enterprises, Inc./CONTACT: Robert S. Raley, JR., of TFC Enterprises, 757-858-4054/