InterNet Bankruptcy Library - News for January 28, 1997

Bankruptcy News For January
28, 1997

  1. America West Holdings Corporation Reports Record 4th Quarter

  2. Stratosphere Corporation Announces Filing For Reorganization
    Under Chapter 11

  3. Centura Software Corporation Announces Results for Fourth
    Quarter 1996

  4. Main Street and Main Incorporated enhances financial position
    through several strategic actions

  5. Open Text Corporation Reports Second-Quarter 1997 Results;
    Total Revenue and Gross Profit Growth Exceed 100 Percent, As
    Company Deepens Penetration of Intranet Software Market

America West Holdings Corporation Reports Record 4th Quarter

PHOENIX, AZ - Jan. 28, 1997 - America West Holdings Corporation,
(NYSE: AWA) parent company of America West Airlines, Inc., today
reported record 4th quarter pre-tax income of $16.8 million and that net
income, excluding extraordinary items, was a record $12.1 million. Fully
diluted earnings per share (EPS) was $0.26 versus $0.12 in the 4th
quarter of 1995. The 4th quarter 1995 results included a $10.5 million
pre-tax non-recurring restructuring charge.

The Company reported net income for the year of $48.7 million or $1.02
per share fully diluted, excluding a non-cash, non-recurring special
charge of $65.1 million pre-tax incurred during the third quarter. After
that charge, net income was $8.5 million for the year or $0.18 per share
fully diluted.

"Our 4th quarter earnings per share of $0.26 exceeds Wall Street's
consensus of $0.21 and reflects a welcome recovery from this year's
third quarter results which were adversely affected by revenue issues
and a large special charge," said W. A. Franke, chairman and chief
executive officer. "On a full year basis excluding the special charge, this
is the second best year the Company has ever posted."

Revenues for the 4th quarter increased 11.0 percent to a record $439.9
million from $396.3 million a year ago, bolstered by a record load factor
for the quarter of 69.1 percent. For the year, revenues increased 12.2
percent to a record $1.74 billion from $1.55 billion in 1995. Full year
1996 load factor was a record 70.9 percent.

"In addition to the improvement on the financial front, we have also seen
significant progress in our operational reliability," said Richard R.
Goodmanson, executive vice president and chief operating officer. "Our
completion factor for the 4th quarter averaged more than 98 percent
versus a low of 96 percent this past summer. These and other related
improvements can be directly attributed to the professionalism and
dedication of our employees."

Operating cost per available seat mile excluding special charges
("CASM") decreased 2.6 percent from 7.38 cents per ASM in the 4th
quarter 1995 to 7.19 cents per ASM in the 1996 quarter, despite a 23.1
percent increase in fuel price. Excluding fuel and related taxes, CASM
declined 6.3 percent versus the 4th quarter 1995.

For the year, CASM increased 4.2 percent from 7.13 cents in 1995 to
7.43 cents in 1996, primarily due to an increase in fuel costs. Excluding
fuel and related taxes, 1996 CASM increased slightly, 1.0 percent,
versus 1995.

"It is important to note that, despite economic pressures, we maintained
the lowest cost structure of any major hub and spoke carrier," said
Franke. "Indications point to a strong year ahead for the airline industry
in general and America West Airlines in particular."

Other selected accomplishments in 1996 include:

-- Completed the first year of a two year strategic growth plan, adding 8
aircraft to the airline's fleet, growing ASMs by 11 percent, and adding
service to Anchorage, Acapulco, Miami, Fort Myers, San Antonio and

- Initiated "Get The Product Right_Together," a program to improve
operational and customer service performance, including increasing the
airline's maintenance workforce by 56 mechanics, adding 2 additional
overnight maintenance stations and increasing staffing and technology at
the airline's reservations centers.

- Adopted and began implementation of new corporate identity including
first class seating on all new aircraft, new interiors and a new logo and
aircraft paint scheme.

- Initiated "Effortless Ticketing," America West's ticketless travel system
on all America West and America West Express flights.

- Formed a holding company, America West Holdings Corporation,
which became the parent company of America West Airlines.

- Reduced the airline's debt by $52 million (or 12%) and repurchased
$44 million of common stock and warrants.

- Completed a secondary public offering of approximately $140 million
of common stock owned by investors in the airline's 1994 reorganization.

- Issued $218 million of publicly traded enhanced equipment trust
certificates to refinance eight A320 aircraft.

This press release contains forward-looking statements within the
meaning of the Securities Litigation Reform Act that involve risks and
uncertainties, including competitive practices in the industry, the impact
of changes in fuel prices, relationships with employees, the impact of
industry regulation and other factors described from time to time in the
Company's publicly available SEC reports, which could cause actual
results to differ materially.

America West Holdings Corporation is an aviation and travel services
company with annual sales of more than $1.7 billion. Wholly-owned
subsidiary America West Airlines is the nation's ninth largest airline
serving more than 90 destinations in the U.S., Canada and Mexico.

The following tables outline the fourth quarter and year 1996 financial
and statistical results of America West Airlines:

                                            America West
                                            Airlines, Inc.
                                         Condensed Statements
                                         of Operations
                                       (Dollars in thousands
                                       except per
        share amounts)

                                           3 Months        3
                                             Ended Dec. 31,
                                             Ended Dec. 31,


         Operating revenues:
           Passenger                   $409,295        
           $367,098         11.5 Charter                      
            2,973            2,305         29.0 Cargo         
                          13,805           11,812         16.9
           Other                         13,836          
           15,094        (8.3)

           Total operating revenues     439,909         
           396,309         11.0

         Operating expenses:
           Salaries and related costs    94,946          
           98,162        (3.3) Aircraft Rental              
           53,245           44,644         19.3 Rentals and
           landing fees      29,696           26,987        
           10.0 Aircraft fuel                 67,747          
           47,531         42.5 Agency commissions           
           33,419           30,998          7.8 Aircraft
             materials and repairs       35,384          
             21,190         67.0
           Depreciation and
             amortization                13,323          
             12,710          4.8
           Non-Recurring special charge     ---          
           10,500          N/A Reorganization Value
             Amortization                 6,082           
             7,683       (20.8)
           Other                         80,659          
           73,184         10.2

           Total operating expenses     414,501         
           373,589         11.0

           Operating income              25,408          
           22,720         11.8

         Nonoperating income (expenses):
           Interest income                3,303           
           3,932       (16.0) Interest expense           
           (11,955)         (13,137)        (9.0) Gain (Loss)
             disposition of property      1,025           
             (220)          N/A
           Other, net                     (980)           
           (195)          N/A

           Total nonoperating expenses,
             net                        (8,607)         
             (9,620)       (10.5)

         Income before income taxes      16,801          
         13,100         28.3

         Income taxes                     4,734           
         7,112       (33.4)

         Net Income                     $12,067           
         5,988        101.5

         Earnings per share:
           Primary:                        $.27            
           $.13        107.7 Fully diluted:                 
           $.26             $.12        116.7

         Shares used for
             Primary:                47,219,542      
             48,683,075        (3.0) Fully diluted:         
             47,219,542       48,683,075        (3.0)

                                              America West
                                              Airlines, Inc.
                                         Condensed Statements
                                         of Operations
                                       (Dollars in thousands
                                       except per
        share amounts)

                                         12 Months        12
                                            Ended Dec. 31,  
                                            Ended Dec. 31,



         Operating revenues:
           Passenger                   $1,625,459    
           $1,442,864           12.7 Charter                  
                 12,303          9,397           30.9 Cargo   
                                  46,519         44,425       
               4.7 Other                           55,245     
              53,956            2.4

           Total operating revenues     1,739,526     
           1,550,642           12.2

         Operating expenses:
           Salaries and related costs     385,840       
           382,032            1.0 Aircraft Rental             
             202,238        173,571           16.5 Rentals and
           landing fees       111,947        108,264          
            3.4 Aircraft fuel                  233,522       
           174,195           34.1 Agency commissions          
             133,015        124,146            7.1 Aircraft
           maintenance materials
             and repairs                  125,766        
             65,925           90.8
           Depreciation and amortization   52,938        
           49,083            7.9 Reorganization Value
             Amortization                  25,263        
             31,958         (20.9)
           Non-Recurring Special Charge    65,098        
           10,500            N/A Other                        
            335,233        276,236           21.4 Total
           operating expenses     1,670,860      1,395,910    

           Operating income                68,666       
           154,732         (55.6)

         Nonoperating income (expenses):
           Interest income                 12,861        
           15,045         (14.5) Interest expense             
           (46,866)       (58,598)         (20.0) Gain (Loss)
           on disposition
             of property                    1,287       
             (2,734)            N/A
           Other, net                     (1,457)          
           (67)            N/A

           Total nonoperating expenses,
             net                         (34,175)      
             (46,354)         (26.3)

         Income before income taxes
           & extraordinary item            34,491       
           108,378         (68.2)

         Income taxes                      24,882        
         53,608         (53.6)

         Extraordinary Item               (1,105)         
         (984)           12.3

         Net Income                        $8,504        
         53,786         (84.2)

         Earnings per share:
           Primary:                          $.19         
           $1.16         (83.6) Fully diluted:                
              $.18          $1.15         (84.3)

         Shares used for computation:
           Primary:                    47,635,274    
           47,665,507          (0.1) Fully diluted:           
             47,944,506     47,665,507            0.6

                                        3 Months        3
                                          Ended Dec. 31,    
                                          Ended Dec. 31,


         Operating Statistics:

         Number of Aircraft at
           End of Period                      101             
           93        8.6
         Available Seat
           Miles / ASMs (000)           5,761,761      
           4,918,765       17.1
         Block Hours                      111,934         
         96,533       16.0 Average Stage Length (Miles)       
          758             684       10.8

         Revenue Passenger
           Miles / RPMs (000)           3,980,399      
           3,277,245       21.5
             Load Factor (%)                     69.1         
        2.5 point s

         Passenger Enplanements (000)       3,663          
         3,425        7.0

         Passenger Yield (Cents)            10.36          
         11.27       (8.1) Passenger Revenue Per ASM
           (Cents)                           7.16           
           7.51       (4.7)

         Operating Cost Per ASM
           (Cents)                           7.19           
           7.60       (5.4)
         ..  excluding special charges        7.19           
         7.38       (2.6) ..  excluding special charges,
              fuel and related taxes         5.91           
              6.31       (6.3)

         Average Fuel
         Cost per Gallon (Cents)            73.12          
         59.38       23.1 Fuel Gallons Consumed (000)      
         92,648          80,055       15.7 Full-Time
           Employees at End of Period       9,652          
           8,712       10.8

                                         12 Months        12
                                           Ended Dec. 31,   
                                           Ended Dec. 31,


         Operating Statistics:

         Number of Aircraft at End of Period  101            
         93         8.6 Available Seat
           Miles / ASMs (000)          21,624,599    
           19,421,451        11.3
         Block Hours                      424,312       
         373,495        13.6 Average Stage Length (Miles)     
            732            686         6.7

         Revenue Passenger
           Miles / RPMs (000)          15,321,422    
           13,312,742        15.1
             Load Factor (%)                     70.9         
        2.4 point s

         Passenger Enplanements (000)      14,699        
         13,504         8.8

         Passenger Yield (Cents)            10.69         
         10.91        (2.0) Passenger Revenue Per ASM (Cents)
          7.57           7.48         1.2

         Operating Cost Per ASM (Cents)      7.73          
         7.19         7.5 ..  excluding special charges       
         7.43           7.13         4.2 ..  excluding special
             fuel and related taxes          6.24          
             6.18         1.0

         Average Fuel
           Cost per Gallon (Cents)          66.49         
           55.82        19.1
         Fuel Gallons Consumed (000)      351,203       
         312,055        12.5 Full-Time Equivalent
           Employees at End of Period       9,652         
           8,712        10.8

         Adjustment for Amortization of Excess Reorganization
         Value (ERV)(a) (All amounts in thousands except per
         share data)

                                                     3 Months 

        Dec. 31, 1995

         Fully diluted EPS _ as reported            $.26      

         Pretax amortization of ERV               $6,082      
               $7,683 After-tax amortization of ERV(b)        
         $6,082             $7,683

         Fully diluted shares                     47,220      
               48,683 Amortization of ERV per share           
           $.13               $.16

         Fully diluted EPS _ as adjusted            $.39      

             (a) ERV is an intangible asset that was
             established upon the
         Company's emergence from financial restructuring in
         August 1994 and is being amortized over a 20-year
             (b) Amortization of ERV is a not a tax-deductible

                                America West Airlines, Inc.
                                 Condensed Balance Sheets (in
                                 thousands of dollars)

                                              Dec. 31, 1996   
                                                 Dec. 31, 1995

         Cash equivalents and
           short term investments             $176,630        
         Other current assets, net             175,183        
             Total current assets              351,813        

         PROPERTY AND EQUIPMENT, NET           670,594        

         Restricted cash                        26,433        
              31,694 Reorganization value
           in excess of amounts
           allocable to identifiable
           assets, net                         447,044        
         Deferred income tax and
           other assets                        101,766        

         TOTAL ASSETS                       $1,597,650        


           Current maturities of
             long-term debt and
             capital leases                    $46,238        
           Other liabilities                   476,482        
             Total current liabilities         522,720        

           MATURITIES                          330,148        

         OTHER NONCURRENT LIABILITIES          122,029        
             129,438 STOCKHOLDERS' EQUITY                 
         622,753             649,472

         STOCKHOLDERS' EQUITY               $1,597,650        

SOURCE America West Holdings Corporation /CONTACT: Investor
Contact: Nancy Gore, 602-693-2843, or Media Contact: Gus Whitcomb,
602-693-5729, both of America West Holdings Corporation/

Stratosphere Corporation Announces Filing For Reorganization Under
Chapter 11

LAS VEGAS, NV--Jan. 28, 1997--Stratosphere Corporation (NASDAQ:
TOWV) today announced that on Monday, January 27, 1997, it filed a
petition under Chapter 11 of the U.S. Bankruptcy Code with the U.S.
Bankruptcy Court in Las Vegas.

The company will propose a plan of reorganization based upon the terms
and conditions included in the restructuring agreement consented to by an
Ad Hoc Committee representing the holders of more than 57% of
Stratosphere's 14 1/4% First Mortgage Notes. The restructuring
agreement was filed with the Securities and Exchange Commission on
Form 8-K, January 6, 1997. The company does not believe that the
bankruptcy fling will, in the long term, adversely affect daily operations
or guest services.

Stratosphere Corporation is a casino/hotel/entertainment complex
located at the north end of the Las Vegas Strip. The complex is centered
around the Stratosphere Tower, the tallest free-standing observation
tower in the United States.

The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward-looking statements. Certain information included in
this press release (as well as information included in oral statements or
other written statements made or to be made by the Company) contains
statements that are forward-looking, such as statements relating to plan
for future expansion and other business development activities as well as
other capital spending, financing sources and the effects of regulation
(including gaming and tax regulation) and competition. Such
forward-looking information involves important risks and uncertainties
that could significantly affect anticipated results in the future and,
accordingly, such results may differ from those expressed in any
forward-looking statements made by or on behalf of the Company. These
risks and uncertainties include, but are not limited to, those relating to
development and construction activities, dependence on existing
management, leverage and debt service (including sensitivity to
fluctuations in the interest rates), domestic or global economic
conditions, activities of competitors and the presence of new or
additional competition, fluctuations and changes in customer preferences
and attitudes, changes in federal or state tax laws of the administration of
such laws and changes in gaming laws or regulations (including the
legalization of gaming in certain jurisdictions). For more information,
review the Company's filings with the Securities and Exchange
Commission, including the Company's annual report on Form 10-K and
certain registration statements of the Company.

CONTACT: Stratosphere Corporation Tom Lettero, 702/383-5207

Centura Software Corporation Announces Results for Fourth Quarter

MENLO PARK, Calif.--Jan. 28, 1997--Centura Software Corporation
("Centura") (NASDAQ: CNTR), announced today results for the fourth
quarter ended December 31, 1996. Revenues for the fourth quarter were
$17.6 million and net income was $1.2 million or $0.08 per share. For
the same period in 1995, revenues were $13.8 million with a net loss of
$34.0 million or $2.80 per share.

For the year ended December 31, 1996, Centura's revenues were $63.2
million and net income was $2.0 million or $0.15 per share. For the year
ended December 31, 1995, revenues were $65.7 million with a net loss
of $44.1 million or $3.62 per share.

"I am pleased with the continued progress demonstrated by Centura's
latest financial results. In 1996, we achieved our goal of returning
Centura to profitability on both an annual and quarterly basis. We will
continue to build upon this success." said Sam Inman, president and
CEO. "We expect that the acquisition of InfoSpinner earlier this month
will be significant in sustaining our operational and financial momentum.
Beginning this quarter, Centura will focus on what we see as a "sweet
spot" in the market with a new product line aggressively targeting the
Web. We are looking forward to a successful 1997."

"We are pleased that we increased product and service revenue 27%
compared to fourth quarter of 1995 while decreasing every category of
continuing operating expenses" said Dick Gelhaus, Senior Vice President
and CFO. "In 1996, we proved that we can improve margins and control
opertating expenses while positioning ourselves for revenue growth
through new products and the acquisition of InfoSpinner."

On January 7 of this year, Centura announced the intention to acquire
InfoSpinner, Inc. of Richardson, Texas a privately held company that
develops technologies which uniquely address the challenges of open,
scaleable Web computing. The combination of InfoSpinner and Centura
delivers the first open Web integration framework, enabling customers to
migrate, integrate and scale mission-critical business applications to the
Web. These technologies enable customers to migrate legacy systems -
such as COBOL, CICS, 3270, PowerBuilder and Visual Basic - to the
Web in days. These same customers can then integrate these applications
with Web technologies, such as Java, JavaScript, VB Script, FrontPage
and Shockwave. Finally these same applications operating in this
framework will scale to meet the unpredictable nature of doing business
on the Web.

In the fourth quarter, Centura continued to see substantial revenue
streams from core customers around the world such as Aurum Software,
Australian Bureau of Statistics, Automated Data Processing (ADP),
Citibank N.A., Deutsche Bank, German Telekom, JC Penney, PeopleSoft,
Inc. and Pivotpoint, Inc. New customers like Broderbund Software,
Iridium and TransAmerica signed up with Centura. New business
partners, like Rorke Data, RWD Consulting and MediaSoft were added
as well. In addition, key customers like Alaska Fish and Game, Ford
Motor Company, Mass Mutual, Merck and the State of Delaware
continued or completed their migration from SQLWindows to Centura
Team Developer.

This press release contains certain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. With the exception of historical
information contained herein, the matters discussed in this press release
involve risk and uncertainties, including quarterly fluctuations in
operating results, timely availability and market acceptance of new
products and upgrades, the impact of competitive products and pricing,
and other risk factors. Actual results could differ materially from those
expressed in any forward looking statements made by or on behalf of
Centura. Such factors include, among others, potential fluctuations in
quarterly results, rapid technological changes, competition, dependence
upon distribution channels, Centura's ability to continue to introduce its
new Centura line of products in a timely manner and market acceptance
of such products, market acceptance of PC client/server systems
generally, international sales and operations, product bugs, displacement
of existing products by Centura's new products, and volatility of stock
price, and the risk factors set forth in Centura's Annual Report on Form
10K for the year ended December 31, 1995.

Since its inception in 1984, Centura has enjoyed a rich history of
innovation and bringing award-winning client/server products to the
marketplace, including SQLWindows and SQLBase. Based on this
success, it has grown into a global enterprise, with 26 offices, 120,000
developers, and 1.5 million end users around the world. Today Centura
is pioneering robust technologies oriented toward the new world of the
Intranet and Internet with products such as Centura Web Developer and
Centura Application Server.

Note to Editors: Centura, Centura Ranger, Gupta, the Gupta logo, Gupta
Powered, the Gupta Powered logo, Fast Facts, Quest, QuickObjects,
SQL/API, SQLBase, SQLBase Ranger, SQLConsole, SQLGateway,
SQLHost, SQLNetwork, SQLRouter and SQLTalk are trademarks of
Gupta Corporation and may be registered in certain jurisdictions.
SQLWindows is a registered trademark and Team Windows,
ReportWindows and EditWindows are trademarks exclusively used and
licensed by Centura Software Corporation. Microsoft, Win 32,
Windows, Windows NT and Visual Basic are either registered
trademarks or trademarks of Microsoft Corporation in the United States
of America and/or other countries. Java is a trademark of Sun
Microsystems Inc. All other product or service names mentioned herein
are trademarks or registered trademarks of their respective owners.
Copyright 1997 Centura Software Corporation. All rights reserved.

                         Centura Software Corporation 
                         (formerly Gupta Corporation)
                    Consolidated Statements of Operations (in
                    thousands, except per share data)

                                    Quarter Ended         Year
                                     December 31,        
                                     December 31,
                                   1996       1995       1996
        Net Revenues:
          Product                     $ 12,450   $ 9,624  $
          45,452  $ 49,408

          Service                        5,134     4,206   
          17,781    16,306

        Net Revenues                17,584    13,830    63,233

        Cost of Revenues:
          Product                        1,514     3,178    
          5,060     8,878

          Service                        2,738     2,748    
          9,518    10,762

        Cost of Revenues             4,252     5,926    14,578
          Gross Profit              13,332     7,904    48,655

        Operating Expenses:
          Sales & marketing              8,122     9,997   
          29,106    42,931

          Research & development         2,662     5,592   
          11,032    14,420

          General & administrative       2,059     4,906    
          6,667    11,043 Acquisition expense              467
                -         467       - Litigation expense      
                 (878)   15,323      (878)   15,323

          Restructuring expense           (223)    5,350     
          (223)    5,350

        Total Operating Expenses    12,209    41,168    46,171
          Operating income (loss)    1,123   (33,264)    2,484

        Other income (expense)             265      (708)     
         21 (13) Income (loss) before
         income taxes                    1,388   (33,972)   
        Provision for income taxes         202        44      
        478     1,073

         Net income (loss)             $ 1,186 $ (34,016)  $
         2,027 $

        Net income (loss) per share     $ 0.08   $ (2.80)   $
        0.15   $ (3.62)

         Weighted average common shares 
          and equivalents               15,180    12,148   
          13,335    12,175

                         Centura Software Corporation
                         (Formerly Gupta Corporation)
                    Condensed Consolidated Balance Sheets
                                  (in thousands)

                                                  December 31,
         Cash and short term investments           $8,734     
          $19,422 Accounts receivable, Net                 
         13,574        12,174 Other current assets            
                   3,516         3,217 Total Current Assets   
                           25,824        34,813 Long term
         assets                          10,881        13,291

         Total Assets                             $36,705     

         Current portion of capital lease
          obligations                                $336     
         Accounts payable & accrued liabilities    12,480     
          16,892 Accrued litigation expenses               
         6,733       14,328 Deferred revenue                  
                21,891       28,800 Total Current Liabilites  
                        41,440       60,417 Long term
         liabilites                      12,188       11,744
         Total Liabilites                          53,628     

        Shareholders' Deficit                     (16,923)    

         Total Liabilities and Shareholders' 
          Deficit                                 $36,705    

CONTACT: Centura Software Corporation Dick Gelhaus, 415/321-9500
Centura on the World Wide Web http://www.centurasoft.comor  
Zoom Marketing Maureen Welch 510/283-9777


Main Street and Main Incorporated enhances financial position through
several strategic actions

PHOENIX, Ariz.--Jan. 28, 1997-- MAIN STREET AND MAIN
INCORPORATED (Nasdaq NM Symbol: MAIN), the world's largest
franchisee of T.G.I. Friday's(R) restaurants, today announced it has taken
several important steps to improve the Company's operating performance
and financial condition by expanding a key financing alliance, reducing
its indebtedness, and increasing its working capital.

The Company completed its second transaction with CNL Growth
Advisors, Inc. ("CNL"). The most recent transaction involves the sale by
the Company of five of its restaurants in the San Francisco area to CNL
for $10.6 million with the Company continuing to operate the restaurants
under a management agreement. In addition, CNL has committed $31
million to the Company to finance its development of new restaurants
through December 31, 1999.

The Company's primary lender has agreed to modify certain provisions
of the Company's long-term debt, including a $125,000 reduction in
quarterly principal payments, and to a forbearance with respect to a key
financial covenant through June 1997. In connection with obtaining the
modified terms, the Company raised $3.0 million in equity through the
issuance of approximately 1,520,000 shares of its Common Stock at
market prices to various investors, 50% of which was purchased by
Directors of the Company, and agreed to use $8.0 million of the $10.6
million proceeds from the CNL sale to reduce its $25.8 million loan. The
Company is exploring other modifications to, or the refinancing of, this

The Company further announced that sales have declined and expenses
increased in the fourth quarter. Accordingly, the Company expects to
record a loss for the quarter exceeding the $507,000 loss reported for the
third quarter. In addition, the Company is evaluating the realizability of
certain assets and may record an additional restructuring charge for the
fourth quarter.

Bart A. Brown, Jr., the Company's recently appointed President and
Chief Executive Officer, commented, "We have previously announced
our intention to deleverage the Company and improve its working capital
position. The actions we have taken go a long way toward accomplishing
these goals. Our expanding relationship with CNL will enable us to
accelerate our restaurant development activities. After taking a hard look
at our business, particularly in view of our recent disappointing
operating results, we are confident that we have an excellent core
business and a foundation for future growth. This confidence is reflected
by the very substantial investment that key personnel have made in the
Company's Common Stock. We will continue to evaluate other
opportunities to further improve the Company's financial condition and
operating results."

Main Street and Main Incorporated is the world's largest T.G.I.
Friday's(R) franchisee, operating 46 T.G.I. Friday's(R) restaurants and
one Front Row(R) Sports Grill restaurant.

This press release contains forward-looking statements and objectives
and steps the Company plans to achieve those strategies and objectives,
including statements regarding the Company's business strategies. These
forward-looking statements are based primarily on the Company's
expectations and are subject to a number of risks and uncertainties, some
of which are beyond the Company's control. Actual results could differ
materially from the forward- looking statements as a result of many
factors, including those set forth in the Company's filings with the
Securities and Exchange Commission.

CONTACT: Main Street and Main Incorporated, Phoenix Mark Walker,
(602) 852-9000 E-Mail: or Lippert/Heilshorn
& Associates, New York Richard Foote/Jeffrey Volk, (212) 838-3777

Open Text Corporation Reports Second-Quarter 1997 Results; Total
Revenue and Gross Profit Growth Exceed 100 Percent, As Company
Deepens Penetration of Intranet Software Market

WATERLOO, Ontario--Jan. 28, 1997--Open Text Corporation
(NASDAQ: OTEXF), a leading provider of intranet application
software, tools and services, today announced its financial results for the
second quarter of fiscal 1997.(1)

For the quarter ended December 31, 1996, Open Text reported the
highest quarterly total revenues and gross profit in the company's history.
Total revenues were US$5.2 million, a 128.8-percent increase from the
$2.3 million reported for the year-earlier quarter, and a 29.0-percent
increase from the $4.0 million reported for the quarter ended September
30, 1996. Gross profit for the quarter was $3.5 million, up 104.5 percent
from the $1.7 million reported a year ago, and up 44.6 percent from the
$2.4 million reported for the first quarter.

The net loss for the second quarter was $3.8 million, or $0.23 per share,
compared with a net loss of $23.3 million, or $2.30 per share, for the
prior-year period, and a net loss of $3.6 million, or $0.22 per share, for
the first quarter of fiscal 1997. The net loss for the second quarter of
fiscal 1996 included a one-time charge of $21.2 million for the write-off
of purchased research and development related to certain acquisitions,
including that of Odesta Corporation, the original developer of Livelink
product technology, in October 1995.

At December 31, 1996, Open Text's cash, cash equivalents and
short-term investments totaled $34.8 million.

"We continue to meet specific goals that we had identified six months
ago as key milestones to success in the emerging intranet software
market," said Tom Jenkins, Open Text's president and chief executive
officer. "In addition to expanding revenue and gross profit, we have
scored several major new customer wins, as well as follow-on wins
from existing customers, in targeted vertical markets. Of particular note,
we signed an agreement with Bell Sygma for a 13,000-seat deployment
of Livelink Intranet for Bell Canada. This is one of the largest
applications of its kind in Internet/intranet history. Of the approximately
70 Livelink Intranet installations completed to date, five accounts have
scaled up to software valued at $350,000 to $800,000 per account.

"The initial momentum of our first major accounts -- combined with the
recent deployment of Livelink Intranet Suite 7, the most powerful and
comprehensive release yet -- clearly demonstrates our potential for
market leadership and continued growth," Jenkins added. "As Interactive
Week stated in its December 16, 1996 issue, 'While almost every
software company is trying to carve out an intranet niche, Open Text
Corporation is well ahead and lengthening its lead with a new release of
its Livelink suite.'"

Expanding Intranet Business

For the second consecutive quarter since the company executed a major
restructuring of operations to focus on its core intranet business, revenue
growth was driven by increasing intranet software sales. Total intranet
software revenue for the second quarter of 1997 was $4.7 million, a
27.0-percent increase from the $3.7 million reported for the first quarter
of fiscal 1997.

In addition to Bell Sygma, major accounts during the second quarter
included BellSouth Corporation, Chiron Corporation, Conoco, Derwent
Information, Medical Economics Company, Microsoft Corporation,
Schien Pharmaceutical and the U.S. Government Printing Office. The
company also formed a strategic alliance with Siemens- Nixdorf, in
which this largest European information technology company agreed to
bundle Livelink Intranet with its intranet-server platform, providing
Open Text with potential access to Siemens-Nixdorf's 1,400 sales
people worldwide and installed base of 130,000 UNIX servers.
Recently, Open Text also formed strategic relationships with iSTAR
internet inc., the largest Internet service provider in Canada, and Netsys
Technology Group, the systems integration subsidiary of the largest
Internet service provider and second largest telecommunications
provider in Scandinavia, Netcom Systems.

During the second quarter, Open Text hired two industry veterans to
strengthen its intranet software sales management, adding Stephen Klann
as vice president of U.S. Sales and Robert Logan as vice president of
Canadian Sales.

Business Mix

For the second quarter of fiscal 1997, license revenue was $3.1 million,
up 97.8 percent from $1.6 million for the same period last year, and up
42.6 percent from the $2.6 million reported for the quarter ended
September 30, 1996. Service revenue during the quarter increased t o
$2.2 million, a 194.4-percent increasefrom $700,000 for the prior-year
period, and a 13.6-percent increase from the $1.9 million reported for
the first quarter. The year-over-year and sequential increases for both
license and service revenue reflected the initial market penetration of the
Livelink Intranet suite of products, as well as the addition of
approximately 70 new accounts deploying these products.

Gross margin for the second quarter was 66.4 percent of total revenues,
compared with 74.3 percent for the prior-year period, and with 59.3
percent for the first quarter of fiscal 1997. The year- over-year gross
margin trend reflected increased staffing costs associated with the
company's growing service business, based on a fundamental change
from Internet search engine products to intranet application software
products and the corresponding increase in pre- and post-sale consulting

Half-Year Results

For the six months ended December 31, 1996, total revenues were $9.3
million, an increase of 218.8 percent from the $2.9 million reported for
the prior-year period. Gross profit for the first half of fiscal 1997 was
$5.9 million, up 171.7 percent from the $2.2 million reported for the
same period in 1996. For the first six months of 1997, the net loss was
$7.4 million, or $0.44 per share, compared with the $26.0 million, or
$3.09 per share, reported for the period ended December 31, 1995. The
net loss for the first half of fiscal 1996 included a one-time charge of
$22.5 million for the write-off of purchased research and development
related to certain acquisitions.

The Company

Open Text Corporation is a leading provider of intranet application
software, tools and services that enable organizations to leverage the
global reach and openness of Internet technologies within a powerful,
collaborative environment for communicating, managing and working
together. Specifically, Open Text's solutions are used by Global 2000
companies to find and manage information and documents, empower
teams and drive critical business processes. Open Text: "We put the
Web to work."

(1) Reported under U.S. Generally Accepted Accounting Principles

                              Open Text Corporation
                     Consolidated Statement of Operations
                    (in thousands of United States dollars)

                               Three months ended   Six months
                                   December 31,        
                                   December 31,
                                 1996      1995      1996     

         License                    $3,064    $1,548    $5,212
             $1,780 Service                     2,152      
         731     4,046      1,124
          Total revenues             5,216     2,279     9,258

        Cost of revenues
         License                       145       164       347
                175 Service                     1,605      
         421     3,048        571
          Total cost of revenues     1,750       585     3,395
        Gross profit                 3,466     1,694     5,863

        Operating expenses:
         Research and development    1,566       401     3,050
                778 Sales and marketing         4,212    
         1,852     6,933      2,913 General and administrative
          1,468     1,074     2,716      1,476 Depreciation
         and amortization,
          including acquired research
          and development costs        435    21,746       841
         Restructuring reserve           -         -       650
          Total operating expenses   7,681    25,073    14,190
        Loss from operations        (4,215)  (23,379)  
        (8,327)   (26,086) Other income                   406
              73       964        133 Loss for the period     
          ($3,809) ($23,306)  ($7,363)  ($25,953)

        Loss per share              ($0.23)   ($2.30)  
        ($0.44)    ($3.09)

        Weighted average number of 
         Common Shares
         outstanding                16,769    10,148    16,560

                           Open Text Corporation
                         Consolidated Balance Sheet           

                  (in thousands of United States dollars)

                                               December 31, 
                                               June 30,

        Assets Current assets:
         Cash                                         $4,729  
            $2,813 Short term investments                     
          30,022      48,326 Accounts receivable - trade      
                     6,985       5,416 Other current assets   
                               1,784       2,203
          Total current assets                        43,520  

        Furniture and equipment                        4,375  
            3,536 Other investments                           
          3,408       2,227 Other assets                      
                    5,685       1,637


         Liabilities and Shareholders' Equity

        Current liabilities:
         Accounts payable - trade and other
          liabilities                                $ 7,211  
            $ 6,900
         Provision for restructuring                     883  
             2,339 Current portion of obligations under
           capital lease                                 425  
          Total current liabilities                    8,519  

        Obligations under capital leases                 540  

        Shareholders' equity:
         Share capital                                93,578  
            93,563 Other shareholders' equity                 
         (45,649)    (38,013)
          Total shareholders' equity                  47,929  

                                                 $66,158 *T

CONTACT: Open Text Corporation William N. Stirlen, 519/888-7111