InterNet Bankruptcy Library - News for February 3, 1997

Bankruptcy News For
February 3, 1997

  1. biosys announces consummation of asset sale

  2. Search Capital reports financial results for quarter and nine
    months ended December 31, 1996

  3. Banyan Systems announces fourth quarter and 1996 results

  4. Battle Mountain Gold posts loss for quarter/year; receives
    final Crown Jewel EIS; sees lower 1997 costs

  5. John H. Harland Reports Record Fourth Quarter Results

  6. FoxMeyer Health Announces Name Change to Avatex
    Corporation and Entry of Temporary Restraining Order

  7. Gander Mountain Plan Becomes Effective

  8. Copley Pharmaceutical Announces Financial Results for the
    Fourth Quarter and The Year Ended December 31, 1996

biosys announces consummation of asset sale

COLUMBIA, Md.--Feb. 3, 1997--biosys inc. (Nasdaq: BIOSQ)
Monday announced that on Jan. 17, 1997, the company
consummated a sale of substantially all of the operating assets of
the company and its wholly-owned subsidiaries, Crop Genetics
International Corp. and AgriDyne Technologies Inc., to Thermo
Trilogy Corp. ("Thermo") in accordance with an asset purchase
agreement with Thermo dated Dec. 24, 1996.

As previously announced by the company, the sale of assets
pursuant to the asset purchase agreement was approved by the
United States Bankruptcy Court on Jan. 7, 1997.

The assets sold included substantially all of the assets of the
company (including the stock of the company's subsidiary,
AgriSense- BCS Ltd.) and its subsidiaries in bankruptcy except
for: (i) cash on hand; (ii) accounts receivable; (iii) the lease of
certain office, warehouse and laboratory facilities located in
Columbia, Md. and (iv) certain avoidance claims of the company
and its subsidiaries in the bankruptcy proceeding.

As provided in the agreement, the company was paid $11 million in
cash for the assets. In addition, Thermo assumed certain executory
contracts and unexpired leases and, in connection therewith, paid
amounts necessary to cure all defaults on certain of the contracts
and leases assumed.

Thermo also conveyed to Archer Daniels Midland Corp. ("ADM")
certain of the purchased assets as an inducement to ADM to waive
its claims against the bankruptcy estates of the company and its

Pursuant to the order of the Bankruptcy Court approving the sale
of assets, the proceeds of the sale will be distributed to the
creditors of the company and its subsidiaries in accordance with
the provisions of the Bankruptcy Code, the final order regarding
cash collateral entered by the Bankruptcy Court on Nov. 27, 1996
and further orders of the Bankruptcy Court.

Upon the closing of the asset sale, the business operations of the
company and its subsidiaries in bankruptcy essentially ceased.

As previously announced by the company, after the liquidation of
all of the assets of biosys and its subsidiaries in bankruptcy, biosys
does not believe that there will be any funds remaining for biosys'
equity holders, whether preferred or common, after distribution to
secured creditors, administrative and priority claimants, and
unsecured creditors.

In a separate development, biosys announced that it had received
the resignation of Peter Stalker, III, managing director, Warburg
Pincus Capital Co., L.P. from the company's board of directors,
effective Jan. 28, 1997.

CONTACT: biosys Inc. Dr. Edwin C. Quattlebaum,
president/CEO or Michael R.N. Thomas, vice president/CFO,

Search Capital reports financial results for quarter and nine months
ended December 31, 1996

DALLAS, TX --Feb. 3, 1997--Search Capital Group, Inc.
announced today that net income before preferred stock dividends
for the nine months ended December 31, 1996 was $1,190,000
compared to an operating loss before preferred stock dividends of
$18,021,000 for the same period in 1995. The net available to
common stockholders after dividends for the nine month period in
1996 was a loss of $3,268,000, or $0.96 per share, compared to
a loss of $18,201,000, or $16.67 per share, for the same period in

George C. Evans, Search Chairman, President and Chief Executive
Officer stated, "Results for the first nine months continue to be in
line with the reorganization plan projections and reflect the success
of the turnaround of Search with a pre- dividend operating profit of
about $1.2 million versus a loss of $18 million for the same period
last year, which translates into an improvement of $19.2 million."
Evans also noted that Search achieved more than an 100%
increase in gross receivables during the nine months of 1996
resulting in gross receivables of $74.8 million as of December 31,
1996, compared to $37 million at April 1, 1996.

General and administrative expenses for the nine months ended
December 31, 1996 were reduced by $3.9 million, or 29%, to
$9.3 million from $13.2 million in 1995. Interest expense was
reduced by $4.3 million, to $1.2 million in 1996, from $5.5 million
in 1995 as a result of the conversion of debt to equity which was
completed in March 1996. Bad debt recovery was $4.6 million for
the nine months ended December 31, 1996, compared to a
provision for credit losses of $3.2 million in the same period of
1995. The nine month operating results for 1995 also included
expenses of $2.9 million for settlement of litigation and $565,000
for reorganization of certain Search subsidiaries.

Search Capital Group, Inc. is a specialized financial services
company engaged in the purchasing, financing, and servicing of
non- prime automobile installment loans originated by franchised
and independent automobile dealers. Search also engages in
non-auto consumer finance operations. Search common shares and
its 9%/7% convertible preferred shares are traded over the counter
bulletin board under the symbols "SCGI" and "SCGIP",

                       Consolidated Balance Sheets
         (All dollars in thousands except for per share

                                        December 31,     
                                        March 31,

        Gross contracts receivable              $  74,766     
         $  37,086 Unearned interest                        
        (14,045)         (6,435) Net contracts receivable     
                     60,721          30,651 Allowance for
        credit losses               (10,445)        (13,353)
        Net loan origination costs                    451     
               406 Net contracts receivable - after          
        50,727          17,704 allowance for credit losses

        Cash and cash equivalents                  15,697     
            17,817 Vehicles held for resale                   
          592             566 Property and equipment, net     
                   1,509           1,062 Goodwill, net        
                             10,705               - Notes
        receivable and other assets,            478           
         197 net

        Total assets                            $  79,708     
         $  37,346


        Lines of credit                         $  36,725   $ 
                 - Accrued settlements                        
          500             688 Dividends payable               
                   1,503             268 Accounts payable and
        other                  1,976           7,088
        liabilities Accrued interest                          
           298              15 Notes payable                  
                    5,014           2,283 Total liabilities   
                              46,016          10,342

        Stockholders' Equity                                  
                  Preferred stock                             
         201             154 Common stock                     
                    263             259 Additional paid-in
        capital                 86,081          81,784
        Accumulated deficit                       (52,853)    
           (54,043) Treasury stock                            
              -         (1,150) Total stockholders' equity    
                    33,692          27,004

        Total liabilities and stockholders'     $  79,708     
         $  37,346 equity


                  Consolidated Statements of Operations
         (All dollars in thousands except for per share

                                            Nine Months    
                                            Nine Months
                                               December 31,
                                               1996      31,

        Interest revenue                          $   7,036   
           $   7,367 Interest expense                         
            1,163           5,542 Net interest income         
                         5,873           1,825

        Recovery of (provision for) credit losses     4,611   
              (3,172) Net interest income (loss) after        

         recoveries of (provisions for) credit 
         losses                                      10,484   

        General and administrative expense            9,294   
              13,178 Settlement                               
                -           2,931 Reorganization              
                             -             565 Operating and
        other expense                   9,294          16,674

        Net income (loss) before dividends            1,190   
             (18,021) Preferred stock dividends               
             4,458             180

        Net loss to common stockholders           $  (3,268)  
          $  (18,201)

        Net loss per share attributable to common 
         stockholders (See note below)            $    (.96)  
           $   (16.67)

        Weighted average number of common shares  
         outstanding (See note below)             3,419,000   

                                             December 31, 1996
                                                    31, 1995

        Interest revenue                         $    3,138   
          $    2,589 Interest expense                         
              873             774 Net interest income         
                         2,265           1,815

        Recovery of (provision for) credit losses     1,173   
              (5,381) Net interest income (loss) after        

         recoveries of (provisions for) credit
         losses                                       3,438   

        General and administrative expense            3,372   
               4,518 Settlement                               
                -              94 Reorganization              
                             -             250 Operating and
        other expense                   3,372           4,862

        Net income (loss) before dividends               66   
              (8,428) Preferred stock dividends               
             1,512              60

        Net loss to common stockholders          $   (1,446)  
            $ (8,488)

        Net loss per share attributable to 
         common stockholders (See note below)    $     (.42)  
             $  (7.83)

        Weighted average number of common 
         shares outstanding (See note below)      3,442,000   

        Note - 1995 share and per share amounts have been
        adjusted to reflect the 1:8 reverse stock split that
        was completed effective as of November 25, 1996.

CONTACT: Jay Barta Levenson Public Relations (214)
880-0200 or James F. Leary Vice Chairman, Finance (214)

Banyan Systems announces fourth quarter and 1996 results

WESTBORO, Mass.--Feb. 3, 1997--Banyan Systems Inc.
(NASDAQ: BNYN), today announced revenue for the fourth
quarter ended Dec. 31, 1996 of $17.2 million, compared with
$28.0 million for the fourth quarter of 1995.

The company reported a 1996 fourth quarter net loss of
$26,802,000, or $1.56 per share, which included after-tax
restructuring and other charges of $13.5 million. These results
compare with a net loss of $17,308,000, or $1.03 per share,
which included after-tax restructuring and other charges of $11.1
million in the fourth quarter of 1995.

During the fourth quarter of 1996, as previously announced,
Banyan estimated that it reduced worldwide inventories of its third-
party distributors by approximately $9.0 million, resulting in lower
revenue during the quarter. As a result of these activities, combined
with lower than anticipated end-user purchases, fourth- quarter
1996 software revenues were $12.7 million, compared with $22.1
million in the same period last year. Banyan's international business
reported sales $6.2 million in fourth quarter of 1996, compared
with $7.6 million in 1995's fourth quarter.

Banyan's net loss for the fourth quarter of 1996 included a
one-time, pre-tax restructuring charge of $5.5 million, or $0.32 per
share, for severance costs related to a fifteen percent reduction of
the company's workforce, facility consolidations and other related
costs. In addition, Banyan recorded a one-time non-cash charge of
$8.0 million, or $0.47 per share, for previously recorded deferred
tax assets in the fourth quarter of 1996. Excluding these non-
recurring charges, Banyan's loss from operations for the fourth
quarter of 1996 was $12,627,000 compared with a loss of
$10,423,000 for the fourth quarter of 1995.

Revenues for the year ended Dec. 31, 1996, were $105.4 million,
compared $129.7 million in 1995. For 1996, Banyan reported a
net loss of $27,030,000, or $1.59 per share, compared with a net
loss of $21,360,000, or $1.27 per share, for 1995. Results in both
1996 and 1995 included the above-mentioned non-recurring
charges. Excluding these charges, Banyan's loss from operations
for 1996 was $13,585,000 compared with a loss from operations
for 1995 of $18,399,000. Banyan's total software revenues in
1996 were $87.3 million, compared with $105.1 million in 1995.
Total international revenues for Banyan in 1996 were $25.6 million,
compared with $29.7 million in 1995.

Jeffrey D. Glidden, acting president, stated, "The fourth quarter
was marked by a number of major changes in Banyan's business,
including the realignment of our executive management team and
the initiation of a search for a new CEO. Led by Chairman John
Burton, we have made progress in evaluating candidates, and plan
to conclude this process by the end of the first quarter."

Commenting on Banyan's fourth-quarter financial performance,
Glidden added, "Our results reflect lower revenues for the quarter
primarily due to the reduction of inventories with our third-party
distribution partners, lower than expected end-user purchases of
our VINES products, and the impact of our restructuring activities.
In addition, we have continued to make strategies investments to
expand our presence in the market for Internet-related directory
and messaging solutions."

Glidden continued, "Over the past several months, we have made
progress with our new product development initiatives. We are
encouraged by the response from both customers and industry
experts to the recent introductions of StreetTalk (r) for Windows
NT and Intelligent Messaging for Windows NT."

"The fourth quarter was highlighted by our success in achieving key
business milestones for Switchboard (r), our electronic directory
service for Internet users," said Glidden. "Specifically, we launched
display advertising services for Switchboard's business listings,
creating an innovative direct marketing tool. In addition, we
established partnerships with America Online, Digital City and
leading national Certified Marketing Representatives to
dramatically broaden the visibility and usage of Switchboard. To
fund Switchboard's growth, we created Switchboard Inc., as a
Banyan subsidiary and have received equity investments from both
America Online and Digital City."

In conclusion, Glidden added, "We are particularly pleased with
the dedication and support of our customers, employees and
business partners as we embrace and implement major change in
our company and build the foundation for long-term success."

The company noted that each of the above forward-looking
statements were subject to change based on various important
factors, including, without limitation, competitive actions in the
marketplace and buying trends by businesses. Further information
on potential factors which could affect the company's financial
results are included in the company's Form 10-K for the 1995
fiscal year, which was filed with the SEC at the end of March
1996, and the company's Form 10-Q for the period ended Sept.
30, 1996, which was filed with the SEC in November 1996.

About Banyan Systems Inc.

Banyan Systems (NASDAQ: BNYN) is a pioneer and leader in
enterprise network services. These products make it easy to find,
share and manage information and resources within enterprise
networks. Founded in 1983 and headquartered in Westboro,
Mass., U.S.A., the company markets products worldwide through
authorized network integrators, resellers and international
distributors. Banyan can be reached on the World Wide Web at

StreetTalk (r) is product of Banyan Systems Inc. and not a product
of McCarthy, Crisanti & Maffei Inc.

        Banyan Systems Incorporated
        Consolidated Statements of Operations
        (in thousands, except per share amounts)

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

         Software                   $12,688    $22,149   
         $87,281   $105,160 Support and training         4,297
              5,288     16,456     21,059 Hardware            
                   177        540      1,687      3,464
                                --------   -------    -------
          Total revenues             17,162     27,977   
          105,424    129,683

        Cost of related revenues      6,310      7,622    
        24,802     29,562

        Gross margin                 10,852     20,355    
        80,622    100,121
           %                            63%        73%       
           76%        77%

        Operating expenses:
         Sales and marketing         14,978     20,488    
         60,811     80,810 Product development          5,533
             6,730     21,875     24,502 General and
         administrative   2,968      3,560     11,521    
         13,208 Restructuring and other charges               
           5,500 (a) 15,802 (b)  5,500 (a) 15,802 (b)
                                 ------     -------    -------
           Total operating expenses  28,979     46,580    
           99,707    134,322

        Loss from operations        (18,127)   (26,225)  
        (19,085) (34,201)

        Other income/(expense), net     466      2,377     
        1,068      3,686
                                 -------    -------    -------
        Loss before income taxes    (17,661)   (23,848)  
        (18,017) (30,515)

        Provision/(benefit) from
         income taxes             9,141 (a) (6,540) (b) 9,013
         (a) (9,155) (b)
                                 -------    -------    -------
        Net loss                   ($26,802)  ($17,308)
        ($27,030) ($21,360)
                                 -------    -------    -------
        Net loss per common share    ($1.56)    ($1.03)   
        ($1.59) ($1.27)
                                 -------    -------    -------
        Weighted average number
         of common shares
         outstanding                 17,133     16,758    
         16,947     16,797
                                 -------    ------     -------


        Condensed Consolidated Balance Sheets
        (in thousands)
                                       December 31,        
                                       December 31,


        Cash and marketable securities      $19,188           
           $31,263 Accounts receivable, net             19,754
                       24,288 Income tax receivable           
                 0                 6,042 Other current assets
                        9,247                10,454 Property,
        equipment and
         other assets                        21,343           
        Deferred tax asset                        0           
        Total assets                    $69,532             


        Current liabilities                 $25,122           
           $36,378 Deferred revenue                     19,886
                       22,323 Other liabilities               
             4,202                 3,266 Stockholders' equity
                       20,322                44,342
        Total liabilities and
        stockholders' equity            $69,532             

        (a) In the fourth quarter of 1996, the company took a
        one time charge of $5,500 related to restructuring the
        company, and wrote off deferred tax assets of $8,038.

        (b) In the fourth quarter of 1995, the company took a
        one-time charge of $15,802, resulting in an after-tax
        charge of $11,061 related to restructuring the

CONTACT: Banyan Systems Inc. Jeffrey D. Glidden
508/871-2271 or Richard M. Spaulding 508/871-2271

Battle Mountain Gold posts loss for quarter/year; receives final
Crown Jewel EIS; sees lower 1997 costs

HOUSTON, TX --Feb. 3, 1997--Battle Mountain Gold Co.
(NYSE:BMG/TSE:BMC) Monday announced a fourth quarter
1996 consolidated net loss of $39.5 million, or 17 cents per share,
attributable to common shareholders.

The fourth quarter 1996 loss compares with a net loss of $0.2
million in the same period last year. For the year 1996, the
consolidated net loss was $81.8 million, or 36 cents per share,
compared with net income of $22.2 million, or 10 cents per share,
in the same period in 1995.

BMG Chairman Karl E. Elers, noting that 1996 represented a
transition year involving the merger with Hemlo Gold, said the
company was negatively impacted by increased income tax
charges; previously announced property, plant and equipment
write-offs and merger expenses; higher mine cash operating costs;
higher exploration expenditures; and increased depreciation,
depletion and amortization charges.

Elers said the fourth quarter loss was primarily the result of
unusually high income tax charges totaling $25 million; $6.4 million
of costs related to the accelerated completion of mining at San
Luis; $2.7 million of additional merger expenses related to the
election of certain executive officers to leave the company; $2
million of restructuring costs related to Niugini Mining Ltd. (NML);
and $1.4 million of asset write downs related to the Red Dome
milling operations.

The income tax charges of $25 million arise even though a pre-tax
loss of $11 million was incurred during the quarter. This relates
principally to the company's revised foreign dividend repatriation
strategy whereby retained and current earnings of the company's
Canadian operations are now expected to be repatriated to the
United States.

This decision gave rise to the need to provide Canadian
withholding taxes on such retained earnings and to provide a
valuation allowance for certain previously recognized U.S. Federal
income tax benefits which are no longer likely to be realized due to
foreign tax credits.

To a lesser extent, current quarter income tax provisions were
necessary in Canada ($3.5 million) where taxes will be paid for
which there is no consolidated benefit and for Bolivian mining taxes
($1.4 million).

Cash flows from operating activities decreased to $57 million in
1996, compared with $74 million in 1995, primarily as a result of
merger expenses paid by the company. BMG's year end cash
position was $103 million.

Capital expenditures were reduced to $58 million in 1996,
compared with $145 million in 1995 when funds were utilized in
the construction of Holloway and to provide funding for the Lihir

Attributable gold production for the fourth quarter was
approximately 218,000 ounces, compared with 193,000 ounces in
the same period a year earlier. For the year 1996, gold production
totaled 916,000 attributable ounces, compared with 843,000
ounces during 1995.

Cash production costs averaged $230 per ounce sold for the
fourth quarter and $219 for the year 1996, compared with $212
and $195 per ounce sold, respectively, for the same periods in

The higher operating expense for 1996 primarily reflects increased
operating costs at Kori Kollo and normal operations at the Golden
Giant. Elers emphasized that three new, lower cost mines --
Holloway, Vera/Nancy and Lihir -- are coming into full production
this year and are expected to help lower aggregate cash production
costs per ounce.

The new mines will replace three of the company's smaller, higher
cost mines -- San Luis, Silidor and Red Dome -- all of which will
have been phased out of operation by the second half of this year,
as reserves are depleted.

Kori Kollo Reserve Reduction and Cost Savings

A review of the reserves at the Kori Kollo mine in 1996 has
resulted in a downward adjustment of 320,000 attributable ounces,
or approximately 10 percent of the year end 1995 Kori Kollo ore

The reserve reduction is a result of refinements to the block model
incorporating data collected from the past four years mining, and
inclusion of results from 18 new diamond drill holes which has
indicated that the earlier reverse circulation drilling and block model
had overstated the reserves.

Elers said he expects no further adjustments to the Kori Kollo ore
model. BMG expects to cut production costs by approximately
$11 million at Kori Kollo in 1997, compared with 1996. It has
budgeted production of 284,000 attributable ounces at cash
operating costs of $186 per gold ounce sold this year, compared
with 270,000 ounces and $225 per ounce sold in 1996.

Operating Outlook Highlights

Looking at the company's growth profile, Elers and BMG
President Ian Bayer said that BMG's overall strategy calls for
growth to come from both exploration and value-added

The targets on both counts are 1 million ounce plus reserves, with
cash costs in the $200 per ounce or less range. While growth in
ounces is important, the primary objective is to maximize
shareholder value and cash flow, they said.

BMG's current reserve position is well diversified, with almost
two-thirds of its ounces located in North America. Based on
current development projects, by the end of the decade, some 70
percent of the company's production is also expected to come
from North America, compared with about 59 percent today.

For 1997, aggregate cash production costs are expected to
average about $200 per gold ounce sold, down some 10 percent
compared with 1996. Total aggregate operating costs are expected
to be approximately $290 per gold ounce sold. Total attributable
gold production is expected to be approximately 920,000 ounces
this year.

Operations at the Golden Giant continue on target in regard to
production and costs. Annual gold production there in 1997 is
expected to be about 360,000 ounces, with cash costs near $140
per ounce sold.

BMG has an 84.7 percent interest in the Holloway mine in
northeastern Ontario, which experienced a slower than anticipated
start-up in the fourth quarter of 1996. Attributable gold production
was 11,000 ounces at a cash operating cost of $393 per gold
ounce sold.

For 1997, production is expected to be about 80,000 attributable
ounces, with targeted cash operating costs per gold ounce sold of
$223 and total operating costs of $337. Exploration potential in the
Matheson area around the Holloway property is excellent, as well
as at the mine site itself where drilling last year identified significant
potential at depth below the main Holloway ore body.

That drilling intersected the Lightning Zone, some 600 meters
below the deepest previous hole, where it returned assays of 11.6
grams of gold over a 2.9 meter interval. This intersection confirms
the excellent potential to increase reserves at Holloway at depth.

Some additional surface drilling will be conducted this year, but the
main focus at Holloway will be on getting the new mine operating
smoothly and on budget.

At the Crown Jewel project in Washington state, the Environmental
Impact Statement (EIS) has been finalized, a favorable Record of
Decision issued, and the document is in the process of being
distributed. Work is now underway to obtain the various
development and operating permits.

Historically, there can be appeals associated with both the EIS and
the permitting process, and it is difficult to predict their duration.
Construction will begin once the process is completed.

Production at Crown Jewel is anticipated to be in the 130,000
ounce range attributable to BMG from its 54 percent interest in the
project. Cash operating costs per gold ounce sold are expected to
average about $165 over the life of the mine.

At the Battle Mountain Complex, the Phoenix permitting process is
moving ahead, and the company continues to look at alternatives to
enhance the economics of the project. Annual production is
expected to be in the 200,000 ounce per year range by the end of
this decade.

At the Vera/Nancy property in Queensland, Australia, over 1
million contained ounces of mineralization have been identified to
date. BMG has a 50 percent interest in this property together with
Normandy Mining Ltd, which will be the operating partner.

Initial production will utilize the Pajingo mill which has been
expanded to 800 tons per day capacity. Mining of the small Vera
open pit is now complete and ore has been stockpiled. Full
production from underground is anticipated in the second half of
the year at the total annual rate of approximately 100,000 ounces.

The mineralization is still open at depth below 1,300 feet and over
portions of its strike length. Additional exploration will be carried
out as the underground mining progresses. Because of the existing
infrastructure, development costs and DD&A will be relatively low.

By 1998, BMG's share of production there is targeted at about
50,000 ounces, with cash costs expected to decline to about $150
per gold ounce sold, and total costs of some $185 per ounce,
yielding excellent cash flow.

At Lihir in Papua New Guinea, work is progressing well with a
projected mid year start up of mining of the oxide ore. At the end
of the fourth quarter of 1996, engineering for the project was 99
percent complete and total construction was 67 percent complete.
Construction for the oxide ore facilities was 72 percent complete.

According to the operator, RTZ, production in 1997 is expected to
total about 18,000 ounces attributable to BMG from its net 8.6
percent interest through its 50.5 percent owned Niugini Mining
(NML) subsidiary. Processing of sulphide ore could begin as early
as October 1997.

By 1998, the company expects to realize over 50,000 attributable
ounces from Lihir and close to 70,000 attributable ounces in 1999
and 2000. Cash costs there over the next few years are anticipated
to average near $200 per ounce sold.

Exploration Priorities

BMG expects to spend about $35 million in 1997 exploring
properties which range in activity from early reconnaissance to
advanced drilling. High priority targets include El Cairo, Volta
Grande, Pajingo, and Dunkwa, as well as BMG's extensive land
holdings around the company's current operations.

At the Vera/Nancy property, ongoing exploration work is
continuing to return positive results. Drilling to the north of the
Vera/Nancy resource appears to be outlining additional high-grade
lenses, with some of the better diamond drill holes returning assays
of: 22 g/t Au over 19 meters, 44.7 g/t over 6 meters, 21.7 g/t over
9 meters and 14 g/t over 10 meters.

Battle Mountain and Normandy are continuing to test a number of
other targets comprising deep regions of known veins and related
geophysical anomalies. Chances for additional discovery are rated

BMG has an excellent land position in Mexico with a number of
quality targets. Among these is El Cairo, where the company
expects to resume drilling in February. During 1996, extensive
surface geochem and trenching work, together with 8 reverse
circulation holes, identified a target with potential for large tonnage,
bulk mineable, leachable gold deposit.

Of the eight holes drilled, seven encountered significant widths of
anomalous gold mineralization, with the best assays being: 1.05 g/t
Au over 100 meters, with the hole ending in mineralization.

Very encouraging results were reported in 1996 from the Dunkwa
property located within the Ashanti gold belt in Ghana. A total of
14 holes drilled on the Mampon prospect have outlined a 400
meter long, shallow plunging zone of mineralization. The zone is
open along strike and down dip and will be further tested by
drilling, possibly later this quarter.

Strong persistent gold-arsenic-antimony soil anomalies have been
outlined elsewhere on the Dunkwa property, which range from one
to five kilometers in strike length. Testing will begin on these targets
in February.

In Brazil, Volta Grande, located in Para State, comprises a 150
square kilometer concession underlain by Archean greenstone and
granite-gneiss terrain. Some twenty centers of garimpeiro workings
occur along a 12 by 8 kilometer belt within the area.

Multiple drill targets have been identified by BMG's JV partner,
TVX, with a current drilling program focused on a 1.8 kilometer by
200 meter, strong surface gold anomaly. Results from the current
program continue to be highly encouraging, with multiple individual
zones of mineralization ranging from 4 to 36 meters in thickness at
grades ranging from 0.6 g/t to 6 g/t Au.

Officer Changes

As previously announced, during January 1997, three senior
officers of the company announced their intentions to voluntarily
resign from BMG under terms of change-of-control severance
agreements triggered by the merger with Hemlo Gold.

The company is pleased to announce the appointment of Joseph
Baylis as Senior Vice President -- Corporate Development. Baylis
will also retain his position as President and CEO of Niugini Mining

In addition, Jeffrey Powers has been named Vice President --
Controller, and Anne Baldrige has been named Vice President --
Environmental and Governmental Affairs.

Baylis had previously served as Vice President -- Investor
Relations and General Counsel for Hemlo Gold. Powers most
recently was Controller for Battle Mountain and Baldrige served
BMG as Director of Environmental and Governmental Affairs.


In summary, the results for 1996 should not be considered
indicative of future performance, Elers said. Managements focus is
squarely on improving the performance of the company's assets
and on growth for the future. BMG is well positioned to maintain a
strong financial core.

New project financing will be largely internal from strong cash flow.
BMG has production growth in the pipeline, low cash production
costs, a well capitalized balance sheet, diversified and well funded
exploration and M&A programs, and the critical mass to respond
to opportunities that may arise.

Note: The United States Private Securities Litigation Reform Act of
1995 provides a safe harbor for certain forward-looking
statements. Operating, exploration and financial data, and other
statements in this document, are based on information that the
company believes reasonable, but involve significant uncertainties
as to future gold prices, costs, ore grades, mining and processing
conditions, and regulatory and permitting matters. Actual results
and timetables could vary significantly from the estimates
presented. Also refer to the Cautionary Statement contained in
thecompany's Form 10-Q for the most recent quarter.

                         Battle Mountain Gold Co.
                Condensed Consolidated Statement of Income
                  (in thousands, except per-share data)

                                  Three months ended     Year
                                       Dec. 31,           Dec.
                                    1996     1995      1996   

        Sales                         $107,665 $106,425 
        $423,980 $401,189

        Costs and expenses          
         Production costs               74,124   67,386  
         257,164  228,439 Depreciation, depletion
           and amortization             27,778   26,598   
           94,187   86,547
         Exploration, evaluation and
           other lease costs            11,475    8,663   
           33,532   26,019
         Merger expense                  2,705       --   
         22,703       -- Asset write-downs               1,426
               --    39,877    2,222 General and
           expenses                      6,069    4,094   
           19,019   16,339
          Total costs and expenses     123,577  106,741  
          466,482  359,566
        Operating income               (15,912)    (316)
        (42,502)  41,623

         Investment income               2,945    2,091    
         9,876   11,325 Interest (expense)             (2,019)
          (2,183)   (6,885)  (7,644) Other income (expense),
         net       263      844    (1,665)   2,692

        Income before income taxes and
          minority interest            (14,723)     436  
          (41,176)  47,996

         Income tax benefit (expense)  (24,986)   1,914  
         (37,470)  (7,489) Mining taxes                  
         (1,964)   1,674   (11,653)  (4,656) Minority interest
         in net
           (income) loss                 4,060   (2,388)  
           15,959   (6,156)

        Net income (loss)              (37,613)   1,636  
        (74,340)  29,695 Preferred dividends             
        1,869    1,869     7,475    7,476

        Net income (loss) to common
          shares                      $(39,482) $  (233)
          $(81,815)$ 22,219

        Income (loss) per common
          share                      (17 cents)      -- (36
          cents) 10 cents

        Dividends per common share          --       --   5
        cents  5 cents

        Average common shares
          outstanding for income-
          per-share purposes           229,693  229,074  
          229,561  233,385

                         Battle Mountain Gold Co.
                   Condensed Consolidated Balance Sheet
                             (in thousands)

                                             Dec. 31, 
                                      1996              1995

        Current assets
         Cash and cash equivalents    $  103,004        $
         142,202 Accounts and notes receivable    48,741      
              30,591 Inventories                      10,440  
                   6,286 Materials and supplies, at
           average cost                   28,939           
         Other current assets             12,688           
          Total current assets           203,812          

        Investments                      246,146          

        Property, plant and 
          equipment, net                 574,478          

        Other assets                      21,553           

         Total assets                 $1,045,989       

        Liabilities and Stockholders' Equity
        Current liabilities
         Short-term borrowings        $   21,800        $  
         14,835 Current maturities of
           long-term debt                 13,595           
         Accounts payable and
           accrued liabilities            44,664           
         Income and mining taxes
           payable                        18,103           
         Other current liabilities         6,119            
          Total current liabilities      104,281           

        Long-term debt                   139,206          
        169,175 Deferred income and mining taxes 116,012      
            109,754 Other liabilities                 40,996  
         Total liabilities               400,495          

        Minority interest                107,214          

        Shareholders' equity             538,280          

        Total liabilities and
          shareholders' equity        $1,045,989       

                         Battle Mountain Gold Co.
              Condensed Consolidated Statement of Cash Flows
                             (in thousands)

                                       Year ended Dec. 31,
                                        1996        1995

        Cash flows from operating activities:

        Net income (loss)                $(74,340)    $ 29,695
        Adjustments to reconcile net
          income (loss) to cash flows
          from operating activities:
         Depreciation, depletion and
           amortization                    94,187       86,547
         Gain on sale of assets              (205)     
         (5,153) Asset write-downs                 39,877     
           2,222 Deferred income tax
           expense (benefit)               12,247      
         Change in current assets and
           liabilities                     (5,790)    
         Other changes, net                (9,402)       5,988
          Total adjustments               130,914       44,167

        Net cash flows from operating
          activities                       56,574       73,862

        Cash flows used in investing activities:

         Proceeds from sale of assets         891        5,636
         Capital expenditures             (58,460)   
         (144,590) Other, net                         2,373   
        Net cash flows used in
          investing activities            (55,196)   

        Cash flows used in financing activities:

         Cash proceeds from stock
           issuances                        2,530       19,884
         Cash proceeds from borrowings     18,717       73,949
         Cash dividend payments           (22,569)    
         (26,055) Increase (decrease) in short-
           term borrowings                  8,821           --
         Debt repayments                  (50,376)    
         (77,023) Other, net                            74    

        Net cash flows used in 
          financing activities            (42,803)     

        Effect of exchange rate changes
          on cash and cash equivalents      2,227        4,387

        Net decrease in cash and cash
          equivalents                     (39,198)    
        Cash and cash equivalents at
          beginning of period             142,202      218,316

        Cash and cash equivalents at 
          end of period                 $ 103,004    $ 142,202

                         Supplemental Information
                         Battle Mountain Gold Co.
                             Operating Data /a
                (all sales and production numbers reflect
                       BMG-attributable interests)

                                   Three months ended    12
                                   months ended
                                        Dec. 31,            
                                        Dec. 31,
                                    1996     1995/b       1996

        Golden Giant

        Gold recovered (000s oz)/c        86       36         
        371     234 Silver recovered (000s oz)         6      
         1           18      13 Gold sold (000s oz)           
           86       36          371     234 Silver sold (000s
        oz)              6        1           18      13

        Cost per gold ounce sold/c 
         Cash production costs          $156     $174        
         $137    $128 Depreciation, depletion and
           amortization                   65       78         
            62      57
         Reclamation and mine-closure
           costs                           4        3         
             3       2
         Total production costs         $225     $255        
         $202    $187

        Kori Kollo (88 percent interest)

        Gold recovered (000s oz)          67       76         
        270     298 Silver recovered (000s oz)       171     
        315          801   1,153 Gold sold (000s oz)          
            66       74          274     297 Silver sold (000s
        oz)            168      307          816   1,154

        Cost per gold ounce sold/c 
         Cash production costs          $221     $186        
         $225    $178 Depreciation, depletion and
           amortization                  111       88         
           106      88
         Reclamation and mine-closure
           costs                           9        3         
             5       3
         Total production costs         $341     $277        
         $336    $269

        Holloway Joint Venture (84.7 percent interest)

        Gold recovered (000s oz)          11       --         
         11      -- Silver recovered (000s oz)        --      
        --           --      -- Gold sold (000s oz)           
            4       --            4      -- Silver sold (000s
        oz)             --       --           --      --

        Cost per gold ounce sold   
         Cash production costs          $393     $ --        
         $393    $ -- Depreciation, depletion and
           amortization                  174       --         
           174      --
         Reclamation and mine-closure
           costs                           2       --         
             2      --
         Total production costs         $569     $ --        
         $569    $ --

        Battle Mountain Complex

        Gold recovered (000s oz)          20       18         
         73      75 Silver recovered (000s oz)        30      
        54          201     207 Gold sold (000s oz)           
           22       18           73      75 Silver sold (000s
        oz)             34       54          201     207

        Cost per gold ounce sold/c
         Cash production costs          $262     $399        
         $307    $328 Depreciation, depletion and
           amortization                   33       78         
            59      63
         Reclamation and mine-closure
           costs                          40        4         
            34       4
         Total production costs         $335     $481        
         $400    $395

        San Luis/d

        Gold recovered (000s oz)           5       17         
         54      72 Silver recovered (000s oz)         4      
         8           32      32 Gold sold (000s oz)           
            6       17           54      72 Silver sold (000s
        oz)              4        8           32      32

        Cost per gold ounce sold   
         Cash production costs          $ --     $272        
         $316    $261 Depreciation, depletion and
           amortization                   --       86         
           163      96
         Reclamation and mine-closure
           costs                          --       --         
            81       6
         Total production costs         $ --     $358        
         $560    $363


        Gold recovered (000s oz)           1       11         
         28      36 Silver recovered (000s oz)         4      
         6           28      44 Gold sold (000s oz)           
            1       11           28      37 Silver sold (000s
        oz)              4        6           28      48

        Cost per gold ounce sold   
         Cash production costs          $ --     $222        
         $226    $182 Depreciation, depletion and
           amortization                   --       64         
            81      93
         Reclamation and mine-closure
           costs                          --        2         
             2       4
         Total production costs         $ --     $288        
         $309    $279

        San Cristobal (50.5 percent interest)

        Gold recovered (000s oz)           9        9         
         39      41 Silver recovered (000s oz)        19      
        24           93      97 Gold sold (000s oz)           
           10        9           39      41 Silver sold (000s
        oz)             20       25           93      97

        Cost per gold ounce sold/c
         Cash production costs          $382     $318        
         $362    $307 Depreciation, depletion and
           amortization                   44      116         
            86      96
         Reclamation and mine-closure
           costs                          --       --         
            --      --
         Total production costs         $426     $434        
         $448    $403

        Red Dome (50.5 percent interest)

        Gold recovered (000s oz)          11       17         
         43      57 Silver recovered (000s oz)        66      
        78          278     320 Copper recovered (000s lb)    
        1,116    1,288        4,618   5,514 Gold sold (000s
        oz)               21       27           44      56
        Silver sold (000s oz)            153      151         
        306     305 Copper sold (000s lb)          2,615   
        2,708        4,895   5,411

        Cost per gold ounce sold/c
         Cash production costs          $247     $138        
         $240    $144 Depreciation, depletion and
           amortization                  159      169         
           145     155
         Reclamation and mine-closure
           costs                           9        8         
            10       2
         Total production costs         $415     $315        
         $395    $301

        Silidor Joint Venture (55 percent interest)

        Gold recovered (000s oz)           7        9         
         26      31 Silver recovered (000s oz)        --      
        --           --      -- Gold sold (000s oz)           
            7        9           26      31 Silver sold (000s
        oz)             --       --           --      --

        Cost per gold ounce sold  
         Cash production costs          $297     $303        
         $333    $327 Depreciation, depletion and
           amortization                   90      120         
            75      82
         Reclamation and mine-closure
           costs                           7        4         
             4       7
         Total production costs         $394     $427        
         $412    $416

        Aggregate data

        Gold recovered BMG share
          (000s oz)                      218      193         
          916     843
        Gold sold BMG share (000s oz)    223      203         
        914     843 Gold recovered (000s oz)         247     
        230        1,034     978 Gold sold (000s oz)          
           263      249        1,034     978 Average price per
        oz realized   $381     $387         $391    $384

        Silver recovered BMG share
          (000s oz)                      300      486       
          1,451   1,866
        Silver sold BMG share (000s oz)  389      553       
        1,495   1,857 Silver recovered (000s oz)       407    
         630        1,924   2,427 Silver sold (000s oz)       
            583      768        1,998   2,403 Average price
        per oz realized  $4.56    $5.41        $5.08   $5.26

        Weighted average cost per gold ounce sold/c
         Cash production costs          $230     $212        
         $219    $195 Depreciation, depletion and
           amortization                  105      105         
            91      87
         Reclamation and mine-closure
           costs                          22        4         
            10       3
         Total production costs         $357     $321        
         $320    $285

        /a -- Effective in the second quarter of 1996, BMG
        began reporting its
          operating costs on the basis adopted earlier this
          year by The Gold Institute.  As a result, in
          addition to mining, milling and plant level G&A
          expenses, cash production costs include royalties,
          freight, smelting costs and allowances and
          production taxes.  Credits for by-product silver and
          copper are offset against these cash production
          costs.  This new North American standard also
          provides for reporting on a cost-per-gold-ounce
          basis, rather than cost-per-equivalent-gold-ounce.  
        /b -- Restated to conform with new operating cost
        reporting standard. /c -- Excludes asset write-downs
        in 1996 and 1995 and ounces produced
          and costs incurred at the Golden Giant mine during
          the 1995 strike.
        /d -- Production ceased at the operations during the
        fourth quarter
          of 1996 rendering cost per ounce information

CONTACT: Battle Mountain Gold Co., Houston Les Van Dyke,

John H. Harland Reports Record Fourth Quarter Results

ATLANTA, GA - Feb. 3, 1997 - John H. Harland Company
(NYSE:JH) today reported record sales and earnings per share for
the fourth quarter and record sales for 1996.

Sales for the fourth quarter ended December 31, 1996 were
$151.6 million, compared to $145.9 million last year. Net income
was $14.7 million or 47 cents per share for the quarter, an increase
of 50 percent compared to $9.8 million or 32 cents per share for
the same period in 1995.

Sales for the 12-month period were $609.4 million, an increase of
8.5 percent from $561.6 million in 1995. The after-tax loss for the
year was $13.9 million or 45 cents per share, compared to net
income of $46.0 million or $1.51 per share a year ago.

1996 results included second quarter charges of $92.5 million or
$1.80 per share related primarily to plant consolidations,
development of enterprise- wide information systems and the
write- down of investments associated with discontinued product
lines and $8.0 million or 26 cents per share for in- process
research and development costs related to the acquisition of
OKRA Marketing in May, 1996.

At its January 31, 1997 regular meeting, Harland's board of
directors approved management's recommendation to more closely
align the dividend payout with the overall business strategy. The
board reduced the dividend from $1.02 to 30 cents per year in
order to fuel long-term growth through acquisitions. The quarterly
dividend of 7.5 cents per share is payable March 6, 1997 to
shareholders of record February 20, 1997.

Robert J. Amman, Harland's President and CEO, said his first full
year in office was spent establishing key business initiatives to
strengthen relationships with customers and return the company to
double-digit earnings growth.

These initiatives include a major restructuring of Harland's print
infrastructure with the complementary goals of improving quality,
reducing costs and creating enhanced services in the check
business. Additionally, the Company is developing higher growth
marketing services to be integrated with its database management

Rebuilding the infrastructure is on target with all but eight of the
plants scheduled for consolidation to close by year-end 1997. The
balance of the plants will close by mid-1998.

"We will continue to develop and implement our business strategy
to reflect market needs and to capitalize on opportunities for
growth," said Amman. "As we enter 1997, we are committed to
the timely execution of our strategy and to building better solutions
for our customers."

John H. Harland Company is listed on the New York Stock
Exchange under the symbol "JH." An S&P 500 company, Harland
is a leading supplier of checks, database marketing services and
loan automation software to the financial industry.

        John H. Harland reports for the periods ended December
        31, 1996 and 1995
                (dollars in thousands, except per share

                                       December 31, 1996      
                                       December 31, 1995
        Net Sales                              $ 151,580      
                $ 145,910 Income Before Income Taxes          
             25,216                  16,588 Provision for
        Income Taxes                10,491                  
        6,760 Net Income                                14,725
                          9,828 Net Income per Common Share   
                $     .47               $     .32 Average
        Number of Shares Outstanding      31,334              

                                       December 31, 1996      
                                       December 31, 1995
        Net Sales                              $ 609,384      
                $ 561,617 Income (Loss) Before Income Taxes   
            (15,477)                 76,903 Provision For
        Income Taxes                (1,623)                
        30,886 Net Income (Loss)                       
        (13,854)                 46,017 Net Income (Loss) Per
        Common Share     $    (.45)(a)           $    1.51
        Average Number of Shares Outstanding      30,951      

            (a) Includes $63.5 million after tax, or $2.06 per
        relating to second quarter restructuring charges and
        expensing of in- process research and development
        costs resulting from the  OKRA acquisition.

SOURCE John H. Harland Company/CONTACT: Robert J.
Amman, President and Chief Executive Officer or Victoria P.
Weyand, Vice President and Corporate Secretary, John H.
Harland, 404-981-9460/

FoxMeyer Health Announces Name Change to Avatex
Corporation and Entry of Temporary Restraining Order

DALLAS, TX - Feb. 3, 1997 - FoxMeyer Health Corporation
(NYSE: FOX) today announced that it is changing its name to
Avatex Corporation. Shares of the Corporation will continue to
trade on the New York Stock Exchange under the FoxMeyer
Health name and "FOX" symbol for an interim period of
approximately two-to-three weeks; the Corporation will announce
the effective date for trading purposes of the new name and its new
stock symbol, "AAV." Existing FoxMeyer Health stock certificates
will continue to be valid and will not have to be exchanged for new
certificates with the Avatex Corporation name. The Corporation
stated that it is changing its name as part of its agreement to sell
substantially all of the assets of its FoxMeyer Drug Company
subsidiary in late 1996.

Separately, FoxMeyer Health announced that on January 13,
1997, the United States Bankruptcy Court for the District of
Delaware, presiding over the Chapter 11 case of certain of
FoxMeyer Health's subsidiaries, including FoxMeyer Corporation
and FoxMeyer Drug Company, entered a Temporary Restraining
Order in litigation filed by the Creditors' Committee against
FoxMeyer Health. The Order requires FoxMeyer Health to
provide ten days prior notice to the Committee of any proposed
(a) transfer, sale or other disposition of any assets that were
conveyed by its subsidiary, FoxMeyer Corporation, to FoxMeyer
Health on June 19, 1996 or any proceeds from any sale or other
disposition thereof, (b) transfer, sale or other disposition of any of
FoxMeyer Health's other assets except in the ordinary course of
business, or (c) encumbrance or pledge of any of such assets. The
order, however, does not affect the sale of FoxMeyer Canada
Inc., which closed in October 1996. The Court set a hearing on
March 5, 1997 on the Committee's motion for a preliminary
injunction seeking the foregoing relief.

SOURCE FoxMeyer Health Corporation /CONTACT: Edward
Massman, Chief Financial Officer, or Grady Schleier, Vice
President/Treasurer, of FoxMeyer Health Corporation, 214-365-

Gander Mountain Plan Becomes Effective

WILMOT, Wis., Feb. 3, 1997 - Gander Mountain, Inc. (Nasdaq:
GNDR) announced that its Plan of Reorganization which was
approved by the U.S. Bankruptcy Court in Milwaukee on January
23, 1997, and which provided for the sale of Gander Mountain's
twelve retail stores and substantially all of its assets to Holiday
Companies, became effective today.

Holiday Companies is paying a purchase price equal to all secured
debt, administrative expenses of the bankruptcy (including
post-petition liabilities), priority claims, reasonable post-
confirmation expenses, plus $19,500,000. $18.5 million will be
distributed among unsecured creditors, $500,000 paid pro-rata to
Gander Mountain preferred shareholders and $500,000 pro-rata
to holders of Gander Mountain common stock. All preferred and
common stock is canceled as of today. However, the right to
receive distributions shall survive the cancellation.

Holiday acquired five retail stores from Gander Mountain in July,
1996. All seventeen Gander Mountain retail stores acquired by
Holiday will continue to be operated as Gander Mountain. The
Gander Mountain stores are located in Minnesota, Wisconsin,
Michigan and Indiana.

Holiday Companies is a privately-held Bloomington, Minnesota
based retailer and wholesaler of outdoor and other sporting goods
as well as gasoline and food products. Holiday does business in
twelve states and has over 5,000 employees.

SOURCE Gander Mountain, Inc. /CONTACT: Ken Bloom,
Executive VP-Chief Financial Officer, 414- 862-3302, or Michael
Rosenbaum, of The Financial Relations Board, 312-266- 7800/

Copley Pharmaceutical Announces Financial Results for the Fourth
Quarter and The Year Ended December 31, 1996

CANTON, Mass., Feb. 3, 1997 - Copley Pharmaceutical, Inc.
(Nasdaq: CPLY) today reported its financial results for the fourth
quarter and the year ended December 31, 1996.

Net loss for the quarter was $12.0 million or $0.63 per share
compared to a net loss of $1.7 million or $0.09 per share for the
fourth quarter of 1995. In the fourth quarter, the Company
recorded recall and litigation related expenses of $12.2 million,
principally an increase in contingency reserves reflecting changes in
estimates of the Company's uninsured exposures. Additionally,
previously announced restructuring charges of $3.5 million were
recorded. Excluding these items, net income would have been a
profit of $0.5 million or $0.03 per share for the quarter compared
to a net loss of $0.8 million dollars or $0.04 per share for the
corresponding quarter in 1995 (excluding similar items).

Net sales for the quarter were $31.2 million, compared to $36.9
million for the fourth quarter of 1995. Price erosion, particularly on
glyburide, the Company's major distributed product, continues to
more than offset new product sales. Gross margin for the quarter
was 22.0 % compared to 16.9% for the fourth quarter of 1995.

For the year ended December 31, 1996, the Company reported a
net loss of $12.7 million or $0.66 per share, compared to 1995's
loss of $2.5 million or $0.13 per share. Excluding product recall,
other litigation, and restructure related items, the net loss would
have been $0.1 million or $0.01 per share. Net income for the year
1995 similarly restated to exclude recall and other litigation related
items would have been $8.2 million or $0.43 per share.

Net sales for the year were $123.5 million, a decrease of 13%
from 1995 net sales of $142.2 million. Increases in unit volumes of
existing products combined with the launches of seven new
products were insufficient to offset declining prices. This price
erosion was partially offset by reductions in cost of goods sold, but
resulted in a gross margin decrease to 23.8% of net sales
compared to 29.0% of net sales for 1995.

Copley Pharmaceutical, Inc., headquartered in Canton, MA, is a
leading manufacturer and marketer of a broad range of
multi-source prescription and over-the-counter pharmaceuticals.
The company markets its products to distributors, retail chains,
wholesalers, hospitals, government agencies, and managed
health-care entities.

Forward-looking statements (statements which are not historical
facts) in this release are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Investors are cautioned that all forward-looking statements involve
risks and uncertainties, including those risks and uncertainties
detailed in the Company's filings with the Securities and Exchange
Commission, copies of which are available from the Company.

                             COPLEY PHARMACEUTICAL, INC.
                   Condensed Consolidated Statements of Operations
                    (Dollars in thousands, except per share data)

                                            For the quarter ended   For the
        year ended

                                             December 31,          December 31,
                                           1996      1995       1996       1995

         Net sales                      $31,214    $36,885   $123,461   $142,158
         Cost of goods sold              24,354     30,651     94,031    100,889

             Gross profit                 6,860      6,234     29,430     41,269
             Gross margin                 22.0%      16.9%      23.8%      29.0%

         Operating expenses:
         Research and development         3,477      3,777     13,682     13,299
         Selling, marketing and
          distribution                    1,301      1,617      6,388      5,384
         General and administrative       1,420      3,486      9,721     10,940
         Recall related and
          litigation                     12,232      1,492     12,343     17,830
         Restructuring                    3,526       0.00      3,526       0.00

         Income (loss) from
          operations                   (15,096)    (4,138)   (16,230)    (6,184)
          Operating margin              (48.4%)    (11.2%)    (13.1%)     (4.4%)

         Interest and
          investment income                 271        145        723      1,089
         Interest expense                  (59)       (70)      (241)      (285)
         Other income
          (expense), net                    167      (404)      (144)      (175)

         Income (loss)
          before income taxes          (14,717)    (4,467)   (15,892)    (5,555)

         Provision (benefit) for
          income taxes                  (2,757)    (2,750)    (3,219)    (3,012)

         Net income (loss)            $(11,960)   $(1,717)  $(12,673)   $(2,543)

         Weighted average common
          shares outstanding:
            Primary                      19,099     19,064     19,081     18,977
            Fully diluted                19,099     19,064     19,081     18,977

         Earnings (loss) per share:
            Primary                     $(0.63)    $(0.09)    $(0.66)    $(0.13)
            Fully diluted               $(0.63)    $(0.09)    $(0.66)    $(0.13)

                             COPLEY PHARMACEUTICAL, INC.
                        Condensed Consolidated Balance Sheets
                                (Dollars in thousands)

                                                                  Dec. 31,
        Dec. 31

                                                             1996       1995
         Current assets:
           Cash and cash equivalents                        $15,974      $18,950
           Trading securities                                  0.00          950
           Available-for-sale securities                     13,757        5,147
           Accounts receivable, trade, net                   26,963       32,639
           Accounts receivable, related party                    61          826
           Inventories                                       27,131       27,226
           Prepaid income taxes                                0.00        3,259
           Current deferred tax assets                        6,548        2,900
           Other current assets                               4,241        4,789
             Total current assets                            94,675       96,686

         Property, plant and equipment, net                  52,355       55,724
         Deferred tax assets                                    215        1,484
         Other assets                                         4,482        1,351
         Total assets                                      $151,727     $155,245

         Current liabilities:
           Accounts payable, trade                           $6,360       $8,301
           Accounts payable, related party                   10,948       11,191
           Current portion of long-term debt                    300          300
           Accrued compensation and benefits                  1,398        2,003
           Accrued rebates                                    6,908        7,980
           Accrued income taxes                                 883         0.00
           Accrued recall related and litigation expenses    17,839        4,767
           Accrued expenses                                   1,860        2,779
             Total current liabilities                       46,496       37,321

         Long-term debt                                       5,100        5,400
         Total liabilities                                   51,596       42,721

         Shareholders' equity                               100,131      112,524
         Total liabilities and shareholders' equity        $151,727     $155,245

SOURCE Copley Pharmaceutical, Inc. /CONTACT: Ken
Starkweather, Vice President-Finance of Copley Pharmaceutical,
Inc., 617-575-7755/