DAUPHIN rolls out its DTR-2
PALATINE, Ill.--Dec. 2, 1996--DAUPHIN Technology Inc. announced today that it
has successfully completed its production pilot run of the DTR-2.
The DTR-2, a lightweight, handheld computer with voice, pen, and keyboard
recognition, is now available for sale to a number of targeted markets. The company
is preparing to ramp-up production in quantities necessary to meet anticipated
demand. Recently, DAUPHIN, entered into a manufacturing agreement with
Sigmatron International Inc. located in Elk Grove Village, Ill., and SMT Unlimited
L.P., a Sigmatron affiliate, located in Fremont, Calif., to produce the DTR- 2 for the
Andrew Kandalepas, chairman of the board and CEO of the company, commented
Management is extremely pleased with the company's post-bankruptcy progress, the
timely availability of the product, and the sales potential of the DTR-2 as evidenced
during its presentation at the Fall Comdex Show in Las Vegas last week. The interest
and attendance of potential clients at DAUPHIN's booth far-exceeded management's
Also, the company has signed a sales and marketing agreement with Command
Marketing Inc., a global network of sales and marketing representatives. This
agreement will greatly enhance DAUPHIN's existing sales and marketing effort, and
will serve as an extension of corporate sales staff.
As of Dec. 2, 1996 DAUPHIN has complied with all requirements of the confirmed
plan of reorganization.
Dauphin is publicly traded and listed on the NASDAQ over-the- counter bulletin
board under Stock Symbol DNTKQ.
CONTACT: DAUPHIN Technology Inc., Palatine Sheila A. Trendel, 847/358-4406
Dow Corning Settlement Won't Cover Women's Medical Costs
WASHINGTON, DC--Dec. 2, 1996--Sybil Niden Goldrich, representing women
with breast implants on the Dow Corning tort claimants committee, today called
funds earmarked for women in the company's new reorganization plan "simply and
totally inadequate even to pay the women's medical bills just to remove ruptured or
"This settlement offer would not even cover the full cost of needed surgery to remove
leaking implants," Goldrich explained, in commenting on the $600 million Dow
Corning proposes to set aside for women who choose early settlement because of
mechanical failure or local problems (as opposed to auto-immune or other diseases
that may be caused by implants).
It is not widely known, but even Dow Corning, after years of promising implants
would "last a lifetime," changed its package inserts in the early 1990s to warn that
most implants are unlikely to last more than 10 years. This means the majority of
women with implants will need surgery to take them out -- even before questions are
settled about the impact of implants on auto-immune and other diseases.
Goldrich said that Dow rushed forward with its plan today after learning that the tort
claimants committee is in the final stage of negotiating a new, consensual plan of
reorganization for the company with representatives of other Dow Corning creditors
in the bankruptcy case. "The tort claimants committee hopes these negotiations will
be completed, and a new, balanced and fair plan will be announced within the next
two weeks," Goldrich added.
Over 300,000 women received Dow Corning implants. The $600 million would
represent $2,000 per woman -- most of whom can expect the need for surgery to
remove ruptured, leaking or expired implants. Most scientific studies show 35-70
percent of implants will rupture after 10 years or less, with some studies showing
higher failure rates the longer implants remain in the body. (These studies are
referenced at the end of this press release). "It has been suggested that a reasonable
life span may be 10 years...," according to the patient information booklet from Dow
Corning updated in the early 1990s.
As for the additional $1.4 billion Dow Corning proposes to set aside if a panel of
scientists agree implants cause disease, this is also "tremendously inadequate,"
added Goldrich, head of the Command Trust Network for women with implants. "It
would be $20,000 per woman if one-third those with Dow implants get sick. It's not
enough to pay even their medical bills over the length of their disease. And this is a
company that knowingly sold products that rupture and leak while promising they
would last a lifetime, and suppressed evidence that silicone affects the immune
system. Certainly some punitive damages are called for here."
Dow Corning, although under Chapter 11 protection, had 1995 sales of $2.5 billion,
with profits after taxes of $190.6 million (up 31.4 percent over 1994).
Although a small number of epidemiological studies of insufficient size and duration
have failed to show a connection between implants and classic diseases (as opposed
to the possibility of symptoms constituting a new, man-made illness from silicone),
these have been deemed "inconclusive" by Dr. David Kessler, FDA Commissioner.
They have been widely touted by the manufacturer in full page newspaper ads as
proof breast implants do not cause illness. However, many dozens of other studies,
published in peer- reviewed journals like Lancet and FACEB, do show that silicone
affects the immune system. Dow Corning's internal studies also showed immune
effects, but were suppressed by the company for many years.
Studies which show rupture and failure rates of implants have been published by Dr.
Gordon Robinson in the Annals of Plastic Surgery (rupture rate of 70 percent), and
presented by Dr. Michael Middleton of UC-San Diego (36 percent) and Dr. Lu-Jean
Feng of Case Western Reserve (68 percent in implants ten years or older), among
For further information, contact Suzanne Turner or Kristin Hyde at Fenton
Communications at 202-745-0707.
CONTACT: Fenton Communications Suzanne Turner of Kristin Hyde, 202-745-0707
Dow Corning Files Plan of Reorganization; Plan Balances Competing Interests of
Women with Implants, Other Claimants, Employees and Company
MIDLAND, Mich., Dec. 2, 1996 - Dow Corning today announced that it has filed its
Plan of Reorganization (POR) and Disclosure Statement with the U.S. Bankruptcy
Court in Bay City, Mich. These documents describe how the company proposes to
satisfy all allowed claims against it and emerge from bankruptcy.
"Our plan is based on three important concepts," said Richard A. Hazleton, chairman
and chief executive officer of Dow Corning. "First, it provides choices for women
with implants on how to resolve their claims with flexible options while still
preserving their right to a jury trial, should they want it. The plan also provides fair
treatment for all women by eliminating any bias in favor of who was first with a
court date, who filed in a specific court, or with a specific attorney.
"Second, we believe the value of breast implant claims should be based on the best
and most compelling scientific evidence available. That is why the plan provides a
fair process to resolve the central legal controversy of whether breast implants cause
"We believe that a court-appointed, independent panel of doctors and scientific
experts should assess all of the available studies to determine if there is legitimate
and sufficient proof of a connection between silicone breast implants and disease. In
addition, we propose that a causation trial be held at which a jury can hear testimony
from the court-appointed, independent scientific panel and then decide whether
claims that breast implants cause disease should be compensated by Dow Corning,"
"Third, the plan demonstrates our commitment to treat everyone with legitimate
claims fairly and at the same time preserves the viability of the company, for our
customers, employees and others who rely on us," Hazleton said.
Under the Dow Corning $3 billion plan anyone with an allowed claim would be paid
in full. The plan includes $1 billion to compensate commercial claims, which would
be paid in full plus interest, and $2 billion to compensate product liability claims.
Included in the product liability compensation is a $600 million fund designed to
favor settlement over litigation to resolve product liability claims flexibly and
efficiently. It offers five settlement choices available over a multi-year period to
process and resolve the claims.
Expedited Payment Option: Those who prove a physical injury arising from a Dow
Corning implant could
resolve their claims quickly by obtaining an expedited cash payment. Explant Option:
Those wanting to have their implants removed could obtain an Explant Certificate for
an explant procedure.
Scheduled Review Option: Those who have claims that meet an established range of
criteria could obtain a cash payment. The precise definition of the criteria and the
payment schedule would be dependent on the outcome of a causation trial.
Individual Evaluation Option: Those who do not settle their claim through the
previous options, could choose an individual evaluation of their claim. This option
requires a higher level of proof, including the possibility of an independent medical
Mediation Option: Those rejecting prior options could agree on non-binding
mediation as an alternative to proceeding with the expense and uncertainty of a jury
Ultimately, the Trustees of the Settlement Trust will make the determination of the
value of individual claims.
The plan also provides up to $1.4 billion in a contingent fund that largely depends on
the outcome of a causation trial on whether or not breast implants cause disease.
Dow Corning believes that the scientific evidence does not support the claim that
breast implants cause disease. However, Dow Corning recognizes that the issue of
causation is controversial and has proposed a causation trial as an objective,
streamlined mechanism to resolve it.
A common issue causation trial, including independent scientific experts who can
advise the Court on the validity of the scientific evidence, provides a fair and
straightforward manner to resolve this legal controversy and avoids time-consuming
and costly litigation on a case-by-case basis, the company said. If that trial finds any
liability based on a link between implants and disease, women could then pursue
disease claims and this contingent fund would be available to satisfy those claims.
"The December 2, 1996 filing of Dow Corning's POR - the company's vision for how
Dow Corning will emerge from Chapter 11 - was a major milestone," Hazleton said.
The next steps to move the plan to acceptance include:
- An estimation hearing, including a causation trial, if approved by the Court -- A
hearing to approve the Disclosure Statement -- Mailing of the POR and the
Disclosure Statement to all claimants -- A solicitation period for voting on the plan --
The confirmation hearing -- An effective date for the POR
"Dow Corning's POR is a step we're taking to move toward a conclusion. We
believe it is a reasonable plan that forms a good basis for consensual resolution.
While it is difficult to predict the exact timing of how the above events will unfold in
the next several months, if all parties involved can reach consensus on resolving the
case, we believe this plan could be confirmed within 12 to 18 months," Hazleton
Dow Corning Corp., a global leader in silicon-based materials, is a Michigan
corporation with shares equally owned by The Dow Chemical Co. and Corning Inc.
More than half of Dow Corning's sales are outside the U.S.
SOURCE Dow Corning Corporation /CONTACT: T. Michael Jackson of Dow
Corning Corporation, 517-496-6443/
3,000 Jobs Saved for Holiday Season; Software Etc. and Babbage's Back in
DALLAS, TX - Dec. 2, 1996 - The holidays will be a little bit brighter for many
workers in Software Etc. and Babbage's stores across the U.S. and its Grapevine,
A group of investors led by Leonard Riggio, chairman and founder of Barnes &
Noble, Inc., has purchased the assets of NeoStar Retail Group, which had recently
filed for bankruptcy after an unsuccessful attempt to reorganize in Chapter 11. The
move saves 3,000 jobs.
"Going into this process, we had two objectives in mind," said Leonard Riggio, who
was the founder and principal owner of Software Etc. before it merged with
Babbage's in 1994. "The first was to save the jobs of many good people; the second
was to save a company with a proud and accomplished history.
"I believe that the software business, despite its title-driven sales fluctuations,
remains a very viable retail concept, especially in the major American shopping
malls," Riggio continued. "Shortages in supplies of hot new titles, especially video
games, are just one indicator of what we believe will be a promising future."
The assets purchased include the company headquarters facilities, inventory, and 460
stores operated under the trade names of Software Etc. and Babbage's. The new
entity is called Babbage's, Etc. and is based in Grapevine, Texas.
All 460 stores will be open and well-stocked and staffed for the holiday season.
Plans call for the immediate replenishment of depleted store inventories and
purchases of important seasonal merchandise are expected to arrive beginning in the
first week of December. The company anticipates obtaining the full cooperation of
suppliers and believes it will adequately satisfy the needs of its many loyal
Although the company is presently planning to operate 460 stores whose leases were
purchased in the bankruptcy proceedings, many of the 200 stores which were not
purchased may be included, subject to discussions with landlords.
Riggio will serve as company chairman of Babbage's, Etc. R. Richard (Dick)
Fontaine, formerly the chief executive officer of Software Etc. during its successful
expansion in the late 80's and early 90's, returns as chief executive officer of the new
company. Daniel A. DeMatteo is president and chief operating officer.
"For me, this is a lifetime opportunity," said Fontaine. "I am coming back to a
business I know and love - this time as an owner, as well as chief executive. I'll be
working within an industry I believe has great upside potential - it's everything I
could ask for.
"I plan to revitalize the company in every respect, and to provide opportunities for
professional growth to the hundreds of management people who have been the
backbone of the company," Fontaine stated. Most recently, Fontaine served as
president of Barnes & Noble Mall Group, and he has been an executive with Ingram
Video and Michaels Stores Inc.
The new company, Babbage's, Etc. will operate in the office building and warehouse
formerly occupied by NeoStar in Grapevine, Texas. The 150 headquarters employees
formerly employed by NeoStar will be offered jobs with the new company, Fontaine
SOURCE Software Etc.; Babbage's /CONTACT: Mary Li1ja of Li1ja Inc. for
United States Brass Corporation files Third Amended Plan of Reorganization
DALLAS, Texas--Dec. 2, 1996--Eljer Industries, Inc. (ELJ:NYSE) announced today
that its indirect, wholly-owned subsidiary, United States Brass Corporation ("U.S.
Brass"), filed its Third Amended Plan of Reorganization and Proposed Amended
Disclosure Statement in its Chapter 11 bankruptcy case. Eljer Manufacturing, Inc., the
parent of U.S. Brass, and Eljer Industries, Inc., parent corporation of Eljer
Manufacturing, are also proponents of the Third Amended Plan. U.S. Brass filed for
Chapter 11 bankruptcy protection on May 23, 1994 in the United States Bankruptcy
Court for the Eastern District of Texas. The purpose of the Chapter 11 filing was to
resolve systematically issues resulting from polybutylene plumbing systems
manufactured by U.S. Brass and related litigation.
The proposed Third Amended Plan incorporates the tentative agreement reached last
year in connection with national settlements in the Cox class action dealing with
polybutylene plumbing systems in which Shell Chemical and Hoechst Celanese
agreed to make up to $950 million available to repair such systems. Under the terms
of the Third Amended Plan, U.S. Brass will contribute an amount equal to the
proceeds it receives, if any, from certain insurance policies to a trust (the "Brass
Trust") to be created pursuant to the Third Amended Plan. If the Bankruptcy Court
approves a proposed settlement between Eljer Industries, Eljer Manufacturing, U.S.
Brass (collectively the "Companies") and the Brass Trust, Eljer Industries and Eljer
Manufacturing will contribute or cause to be contributed 17.5% percent of Eljer
Industries' equity, $17.4 million in cash, a note for $20 million payable over ten
years and proceeds they may receive from certain insurance policies to the Brass
Trust and U.S. Brass will remain a wholly-owned subsidiary of Eljer Manufacturing.
Also contained in the Plan is a proposed settlement between the Companies, the
Brass Trust and the plaintiffs in the Cox class action pursuant to which the
Companies will be released from all claims held by the Cox class and the Brass
Trust will contribute a portion of its assets to the Consumer Plumbing Recovery
Center established pursuant to the Cox settlement. Finally, the Third Amended Plan
contains a proposed settlement between the Companies, the Brass Trust, Shell and
Celanese pursuant to which a portion of the cash contained in the Brass Trust will be
paid to Shell and Celanese in exchange for mutual releases.
The Bankruptcy Court recently issued an Order requiring parties to update their
previously filed Plans and Disclosure Statements or file new Plans and Disclosure
Statements by November 29, 1996, and setting a hearing on the new or amended
filings on January 22, 1997.
In a related matter, the Bankruptcy Court has set the Official Polybutylene Claimants'
Committee's Motion to Convert the U.S. Brass Case to a Chapter 7 Liquidation for
hearing on January 14, 1997. If the Bankruptcy Court grants the Motion, U.S. Brass
would cease to be a subsidiary of Eljer Manufacturing. U.S. Brass, Eljer
Manufacturing and Eljer Industries have opposed the Committee's Motion.
Eljer Industries, Inc. is a leading manufacturer and marketer of high quality building
products, including plumbing, heating and ventilation products, for the residential and
commercial construction, remodeling and repair, and do-it-yourself markets.
CONTACT: ELJER INDUSTRIES, INC. George W. Hanthorn Vice
President-General Counsel (214) 407-2600 or Morgen-Walke Associates Lynn
Morgen/June Filingeri Media contact: Stan Froelich (212) 850-5600 Ken Pieper
Mall sales increase by 11.9% during Thanksgiving weekend
NEW YORK, NY---Dec. 2, 1996--Sales per square foot in specialty stores at the
nation's malls over the Thanksgiving weekend increased by 11.9% over the same
period last year, according to a national sample of 57 malls reported by the
International Council of Shopping Centers (ICSC).
Last year, sales per square foot were flat over the three-day weekend compared with
The council said part of the gain should be attributed to the fact that the three-day
weekend fell five days closer to Christmas than it did last year and nearer to the Dec.
5 start of the Jewish celebration of Chanukah. Also, the sample reflects increased
productivity at malls due to the closing of several underperforming specialty stores
that were in Chapter 11 proceedings at this time last year.
"Although it is not likely that sales will remain in double digits for the season, this
was an outstanding start," said John Konarski, vice president of research for ICSC.
"It was the best three-day weekend since we began tracking mall sales in 1993."
Summary of results for Nov. 29-30 and Dec. 1 by category:
- Cards/Gifts/Books 15.1
- Jewelry 15.0
- Home Furnishings 14.7
- Footwear 12.9
- Apparel 11.1
- Music/Entertainment/Software 11.0
- Food/Food Courts 5.7
The ICSC holiday report includes revenue from specialty stores in more than 3,000
stores in 57 regional malls across the country. The national sample does not include
department stores and other mall "anchors."
The council will be reporting weekly holiday sales figures from this database each
Monday through Dec. 26. Founded in 1957, ICSC is the not-for-profit trade
association of the shopping center industry. It serves its 32,000 members in 60
countries by assisting in the development of their businesses through professional
education, conference and conventions, publications, research and legislative action.
CONTACT: ICSC, New York Mark J. Schoifet/Karen Killeen 212/421-8181 ext.
RIDGEFIELD PARK, N.J., Dec. 2, 1996 - MobileMedia Corporation (Nasdaq:
MBLM) today announced that, in order to conserve cash for operations, the interest
payment on its 9 3/8% Senior Subordinated Notes due November 1, 2007 was not
made during the grace period ending November 30, 1996.
The Company is in on-going discussions with its bank lenders regarding Events of
Default under its Credit Agreement arising from covenant violations and the failure to
pay interest on the 9 3/8% Notes. The Company is continuing to work on a business
plan to solve its operational problems. This plan will serve as the basis for
restructuring discussions with the Company's bank lenders and bondholders.
The Company's Board of Directors has established a Restructuring Committee to
oversee the Company's restructuring efforts. The Committee, which will report to the
entire Board of Directors, is chaired by Mitchell R. Cohen and its other members are
David A. Bayer and Clifford A. Bean.
The Company has retained Donaldson, Lufkin & Jenrette as financial advisor to
complete a comprehensive review of the strategic alternatives available to the
Company and to assist the Company in developing a plan to restructure its
indebtedness. In addition, the Company has retained Sidley & Austin as restructuring
counsel, and is also being advised by Ernst & Young, and by its outside corporate
counsel, Latham & Watkins.
The potential consequences of the Company's decision not to pay the interest on the 9
3/8% Notes and other important information regarding the Company's financial
condition are contained in the Company's Quarterly Report on Form 10-Q for the
period ended September 30, 1996, which was filed with the Securities and Exchange
Commission and is publicly available.
MobileMedia Corporation is the second largest provider of paging and personal
communications services in the United States, offering local, regional and nationwide
coverage to approximately 4.5 million subscribers in all 50 states, Canada, and the
Caribbean. The company operates two one-way nationwide networks and owns two
nationwide narrowband PCS licenses.
Statements contained in this release that are not based on historical fact are "forward
looking statements" within the meaning of the Private Securities Litigation Reform
Act of 1995. The "Risk Factors" and cautionary statements identifying important
factors that could cause actual results to differ materially from those in the forward
looking statements are detailed in the Company's 1995 10- K filing with the
Securities and Exchange Commission.
SOURCE MobileMedia Corporation /CONTACT: Santo J. Pittsman, Senior Vice
President & CFO, 201-393-4693, or Laura E. Wilker, Investor Relations,
201-462-4959, both of MobileMedia Corporation/