InterNet Bankruptcy Library - News for February 14, 1997

Bankruptcy News For February 14,  

  1. Image Entertainment, Inc. Reports Third Quarter Financial Results

  2. Cincinnati Microwave Files for Chapter 11

  3. Boston Auto Dealer Wins Court Battle with Citizens Bank

  4. Imaginarium Names Connie Van Epps Executive Vice President &  
    Director of Merchandise

  5. Pinnacle Micro Announces Fourth Quarter and Year-End 1996 Operating  

  6. Tyler Corporation Reports 1996 Financial Results

  7. Xyvision reports third fiscal quarter 1997 results


Image Entertainment, Inc. Reports Third Quarter Financial Results

CHATSWORTH, Calif., Feb. 13, 1997 - Image Entertainment, Inc. (Nasdaq:  
DISK), the largest licensee and distributor of optical laserdisc programming in  
the United States, today reported operating results for the third quarter ended  
December 31, 1996.

For the third quarter ended December 31, 1996, net sales were $24,948,000  
versus $28,072,000 for the December 1995 quarter. Operating income was  
$1,087,000 for the December 1996 quarter versus $2,670,000 for the December  
1995 quarter. Net income was $158,000, or $.01 per share, for the December  
1996 quarter versus $2,427,000, or $.15 per share, for the December 1995  

Although the Company's exclusive release schedule for the December 1996  
quarter included hits such as "TOY STORY," "THE ROCK" and  
"POCAHONTAS," net sales were negatively impacted by weaker net sales of  
catalogue titles (previously released laserdisc titles) as compared to the same  
prior-year period. Sales of catalogue titles continue to be adversely impacted by  
declining laserdisc hardware sales. Management believes the decline in  
hardware sales is attributable to continued confusion and uncertainty in the  
laserdisc marketplace over the pending introduction of the new 5-inch Digital  
Video Disc ("DVD") format and its quality (versus laserdisc), marketability and  
ultimately consumer acceptance. Catalogue sales were also negatively impacted  
by continued softness in the retail entertainment software market.

In February, Musicland, the Company's largest customer, informed the Company  
that it was suspending, indefinitely, payment on all outstanding amounts owing  
to its trade vendors, which include the Company and several major  
entertainment companies. In response to Musicland's action and continued  
softness in the retail entertainment software market, the Company recorded a  
provision for doubtful accounts during the December 1996 quarter of  
approximately $641,000, net of taxes, or $.05 per share. The Company also  
recorded nonrecurring charges totaling approximately $650,000, net of taxes, or  
$.05 per share, relating to the write-off of acquisition expenses and costs  
associated with early retirement of debt.

For the nine months ended December 31, 1996, net sales were $62,856,000  
versus $72,208,000 for the comparable December 1995 period. Operating  
income was $2,520,000 for the nine months ended December 31, 1996 versus  
$6,228,000 for the comparable December 1995 period. Net income was  
$1,260,000, or $.09 per share, for the nine months ended December 31, 1996  
versus $5,688,000, or $.36 per share, for the comparable December 1995  

During the nine months ended December 31, 1996, the Company recorded a  
provision for doubtful accounts of approximately $889,000, net of taxes, or $.06  
per share, due to the August 1996 Chapter 11 bankruptcy filing of Camelot  
Music, the recent suspension by Musicland of payments owing to Image, and  
continued softness in the retail entertainment software market. The Company  
also recorded nonrecurring charges totaling approximately $650,000, net of  
taxes, or $.O5 per share, relating to the write-off of acquisition expenses and  
costs associated with early retirement of debt.

Martin W. Greenwald, Image's President and Chief Executive Officer, said,  
"The December 1996 quarter was our 15th consecutive quarter of net earnings -  
no small feat in a decidedly weak software sector with declining laserdisc  
hardware sales. Although revenues declined by 11%, it should be noted that  
December 1995 quarterly sales were an all-time high for the Company and  
December 1996 quarterly sales were the fourth highest. This suggests continued  
strength in laserdisc sales. I am confident in the longevity of our format and we  
continue to aggressively pursue laserdisc rights. As recently as December we  
added to our large exclusive roster signing an exclusive laserdisc output  
agreement with PolyGram Home Video.

"There were several items that eroded Image's net profit in the third quarter. The  
termination of our negotiations to acquire Essex Entertainment, Inc., resulted in  
a one-time charge of $510,000, net of taxes. In addition, we decided to  
refinance our Foothill Capital Corporation debt with a revolving credit facility  
from Union Bank of California. We recorded approximately $140,000, net of  
taxes, in accelerated amortization of deferred financing costs and a penalty  
relating to the early-termination of the Foothill debt. The Union facility allows  
for greater borrowing flexibility at lower rates, and increased availability of up  
to $20 million as compared to $15 million under the Foothill facility. The  
quarter's operating profit was also impacted by the Company recording a  
provision for doubtful accounts of approximately $641,000, net of taxes.

"In 1996, true to our acquisition and diversification strategy, we pursued  
negotiations to acquire Essex Entertainment, Inc. The negotiations were  
ultimately terminated in December. The monies spent relative to the transaction  
- primarily legal and accounting fees incurred in connection with due diligence  
efforts, are a necessary part of any acquisition process. The music industry is  
undergoing a great deal of turmoil as retailers contract and suppliers fight for  
dollars in a stagnant economy. I believe these conditions will yield new  
opportunities for us.

"Image is also well positioned to take advantage of opportunities that will arise  
with the imminent launch of the 5-inch DVD format. Our strong sales, licensing  
and distribution skills will allow us to be an active participant in the roll-out of  
this new software. As exampled by our exclusive distribution agreement with  
Thomson Consumer Electronics (RCA and GE) pursuant to which we will  
provide DVD product to participating Thomson dealers. Just as we have  
aggressively pursued laserdisc rights, we will aggressively pursue licensing and  
distribution deals in DVD.

"Finally, in December, the Board of Directors increased the maximum number  
of shares to be repurchased under the Company's stock buy back program by an  
additional 1,000,000 shares. To date, the Company has repurchased  
approximately 1,680,000 of the 2,500,000 maximum shares repurchasable by  
the Company."

Image is the largest licensee and distributor of laserdiscs in the United States,  
with the most extensive library of titles in the industry. Image has exclusive  
agreements with Disney's Buena Vista Home Video, Twentieth Century Fox  
Home Entertainment, MGM/UA Home Entertainment, New Line Home Video,  
PolyGram Home Video, Orion Home Video, The Voyager Company, Playboy  
Home Video, Hallmark Home Entertainment and other suppliers.

To visit Image Entertainment on-line, please go to


The matters discussed in this press release involving forward looking  
statements with regard to laserdisc industry hardware and software sales;  
commercialization of DVD and the Company's potential opportunities in that  
market; and, the potential financial impact of future quarterly laserdisc release  
schedules involve certain risks and uncertainties. Risks and uncertainties  
include the commercial success of DVD; third-party licensing opportunities for  
DVD rights; the popularity and marketing of new-title laserdisc releases; and the  
financial strength of the Company's largest customers. The historical results  
achieved are not necessarily indicative of future prospects of the Company.  
More information on factors that could affect the Company's financial  
performance are included in the Company's reports on Form 10-K and 10-Q  
filed with the Securities and Exchange Commission.

                              IMAGE ENTERTAINMENT, INC.


                For the Three Months Ended December 31, 1996 and 1995


                                                  1996                1995


           NET SALES                           $24,947,656 100.0%

        $28,071,730 100.0%


             Cost of laserdisc sales            19,749,866   79.2
        21,899,417   78.0

             Selling expenses                    1,142,850    4.6

        1,340,016    4.8

             General and administrative expenses 2,173,289    8.7

        1,474,383    5.3

             Amortization of production costs      794,347    3.2

        687,680    2.4

                                                23,860,352   95.6

        25,401,496   90.5

           OPERATING INCOME                      1,087,304    4.4

        2,670,234    9.5


             Interest expense                      118,038    0.5
        43,798    0.2

             Interest income                      (44,257)  (0.2)

        (70,762)  (0.3)

             Other                                 662,193    2.7

        ---    ---

                                                   735,974    3.0

        (26,964)  (0.1)


             AND EXTRAORDINARY ITEM                351,330    1.4
        2,697,198    9.6

           INCOME TAXES                             50,000    0.2

        269,800    1.0

           INCOME BEFORE EXTRAORDINARY ITEM        301,330    1.2

        2,427,398    8.6


             NET OF TAXES                          143,308    0.2
        ---    ---

           NET INCOME                             $158,022   0.6%

        $2,427,398   8.6%


         Income before extraordinary item         $.02                $.15
         Extraordinary item - costs associated
           with early retirement of debt,
          net of taxes                           (.01)                 ---

           NET INCOME PER SHARE                       $.01



         Common shares                      13,501,048          13,346,766
         Common stock options and warrants     411,734           4,301,789
                                            13,912,782          17,648,555

            The above consolidated statements of operations should be read

        in conjunction with the Financial Statements and the Notes thereto
        and Management's Discussion and Analysis of Financial Condition and
        Results of Operations in the Company's December 31, 1996 Form 10-Q.

                              IMAGE ENTERTAINMENT, INC.


                 For the Nine Months Ended December 31, 1996 and 1995


                                                  1996                1995


           NET SALES                           $62,855,934 100.0%

        $72,207,892 100.0%


             Cost of laserdisc sales            49,581,725   78.9
        56,778,266   78.6

             Selling expenses                    3,457,693    5.5

        3,251,060    4.5

             General and administrative expenses 4,988,616    7.9

        3,834,869    5.3

             Amortization of production costs    2,307,550    3.7

        2,115,785    2.9

                                                60,335,584   96.0

        65,979,980   91.4

           OPERATING INCOME                      2,520,350    4.0

        6,227,912    8.6


             Interest expense                      226,106    0.4
        123,013    0.2

             Interest income                     (188,560)  (0.3)

        (228,157)  (0.3)

             Other                                 662,193    1.1

        ---    ---

                                                   699,739    1.1

        (105,144)  (0.1)


             AND EXTRAORDINARY ITEM              1,820,611    2.9
        6,333,056    8.8

           INCOME TAXES                            417,000    0.7

        645,000    0.9

           INCOME BEFORE EXTRAORDINARY ITEM      1,403,611    2.2

        5,688,056    7.9


             NET OF TAXES                          143,308    0.2
        ---    ---

           NET INCOME                           $1,260,303   2.0%

        5,688,056   7.9%


           Income before extraordinary item           $.10
           Extraordinary item - costs associated with
         early retirement of debt, net of taxes  (.01)                 ---

           NET INCOME PER SHARE                       $.09



         Common shares                      13,617,165          13,574,462
         Common stock options and warrants     465,804           4,340,803

                                            14,082,969          17,915,265


            The above consolidated statements of operations should be read

        in conjunction with the Financial Statements and the Notes thereto
        and Management's Discussion and Analysis of Financial Condition and
        Results of Operations in the Company's December 11, 1996 Form 10-Q.

SOURCE Image Entertainment, Inc./CONTACT: Cheryl Lee of Image,  
818-407-9100, ext. 256; or Doris Banchik of Coffin Communications Group,  

Cincinnati Microwave Files for Chapter 11

CINCINNATI, OH - Feb. 14, 1997 - Cincinnati Microwave, Inc. (Nasdaq:  
CNMW) announced today that it has filed for protection from its creditors under  
Chapter 11 of the U.S. Bankruptcy Code, which provides the Company an  
opportunity to reorganize its operations or to liquidate its assets in an orderly  
manner. The action was filed in the U.S. Bankruptcy Court for the District of  
Southern Ohio- Western Division.

"Our efforts to find partners, or sell portions of the business in order to generate  
enough cash to carry the Company forward have been unsuccessful," said Erika  
Williams, president and chief executive officer. "The $10 million in excess  
inventory purchased in 1995 and the outstanding shareholder lawsuit have  
hindered our ability to attract suitable partners. We expect several interested  
parties to bid for portions of the Company's assets under court protection."

Cincinnati Microwave designs, manufactures and markets ultrahigh frequency  
and microwave wireless communications products. The Company's product  
lines include radar warning devices, digital spread spectrum cordless  
telephones and wireless data modems for use on the Cellular Digital Packet  
Data (CDPD) network.

Additional information on the Company, its products and markets can be  
obtained from the Company's worldwide web site: about Cincinnati   
Microwave also is available, free of charge via fax, by dialing 1-  
800-PRO-INFO and using ticker symbol CNMW.

SOURCE Cincinnati Microwave, Inc. - /CONTACT: Elaine Bacon of  
Cincinnati Microwave, 513-489-5400,, Bill Schmidle,  
Analyst Inquiries, 312-640-6753, or Karl Plath, General Inquiries,  
312-640-6738, both of the Financial Relations Board/

Boston Auto Dealer Wins Court Battle with Citizens Bank

BOSTON, MA - Feb. 14, 1997 - Bahig Bishay, a Boston automobile dealer,  
today announced that Citizens Bank has been sanctioned by the U.S. Bankruptcy  
Court in Boston, as a result of his charges that the bank employed illegal tactics  
in its attempts to accelerate repayment of a loan it acquired in the purchase of  
another bank.

In what Bishay characterized as a "potentially precedent- setting" decision, the  
U.S. Bankruptcy Court in Boston has ruled that Citizens Bank fraudulently  
engaged in illegitimate billing practices, in violation of Bishay's rights.

Chief Judge Carol J. Kenner also ruled that Citizens and its law firm, Brown,  
Rudnick, Freed & Gesmer, engaged in a two-tiered fee arrangement which they  
then misrepresented and concealed from both the borrower and the court.

In her decision, which followed a two-day trial, Judge Kenner imposed  
financial sanctions on Citizens for its actions, and ordered Citizens to reimburse  
Bishay of Westwood, for all legal expenses in pursuit of the court's decision.

"What we're talking about here is a bank's abuse of economic power, " said  
Bishay, president of U.S. Auto Exchange, a Boston- based dealer of pre-owned  
luxury and vintage vehicles. "I had the resources to withstand Citizens's actions,  
but others in similar circumstances may not be so fortunate."

Both the Massachusetts attorney general and the state's banking commissioner  
are aware of the federal court decision.

Bishay said the federal court ruling confirms his claims that Citizens Bank,  
headquartered in Rhode Island, had engaged in widespread improprieties  
between 1994 and 1996 in an unsuccessful attempt to force him to liquidate  
valuable assets in order to accelerate the repayment of a small loan.

Bishay cites additional testimony in the Bankruptcy Court which also reveals  

- Citizens Bank tampered with values and appraisals by threatening to withhold  
bank payment from its appraiser until the appraiser agreed to reduce the  
assessed value of Bishay's assets.

- In a separate State Court litigation which is currently pending, Bishay states  
that Citizens Bank engaged in extortion by refusing to accept full payment from  
Bishay of the outstanding loan amount, unless Bishay agreed to drop his  
counterclaim relating to the bank's improprieties.

In the State Court suit, Bishay charges the bank with attempting to undermine his  
financial status and his ability to repay the small, outstanding loan.

"I have no personal vendettas against Citizens or its agents," said Bishay, "I  
simply want to be made whole, and I want to ensure that others do not endure  
such misconduct."

He is calling upon Citizens President Lawrence Fish to "look into the  
improprieties as they relate to the internal policies of the bank, to insure that  
such violations have not befallen others and do not recur."

In sanctioning Citizens Bank under Rule 9011 (a), Judge Kenner said the bank  
and its law firm, BRF&G, misrepresented and concealed the dual fee  
arrangement from the court and Bishay, from whom they sought reimbursement.

The judge said the agreement "was intended to create a two-tier billing system  
that would impose on (the) borrower higher rates than Citizens itself agreed to  

"This is an attempt to couch in legitimacy what is in essence the illegitimate  
practice of billing the borrower for more than the lender is liable," said the  
judge. "Where this is done without disclosure of the underlying agreement, and  
the nondisclosure is intentional, I cannot distinguish it from fraud."

Judge Kenner refuted Citizens's claim that its dual rate arrangement is legal  
under Massachusetts law, and she cited several individuals for their role in  
concealing and misrepresenting the illegal arrangement.

"As an institution that routinely looked to its borrowers to pay its legal fees,  
Citizens should reasonably have put in place and used a mechanism by which its  
loan officers and attorneys could ascertain and accurately represent to the  
borrowers - and the courts - the fee arrangements that underlie their payment  
obligations," said Judge Kenner, "If Citizens had such a mechanism, there was  
no evidence of it in this case.

"The court concludes that the misrepresentations in Citizens's motion and in the  
supporting affidavit were the result of Citizens's negligence in conducting its  
inquiry into the underlying fee agreement, but also, in (the loan officer's) case,  
of reckless disregard for the truth, and, to the extent of (the attorney's)  
involvement in the process, of intent to deceive."

SOURCE Bahig Bishay /CONTACT: Alan S. Eisner or Alexander Caswell of  
Regan Communications, 617-742-8180/

Imaginarium Names Connie Van Epps Executive Vice President & Director of  

WASHINGTON TOWNSHIP, N.J., Feb. 14, 1997 - Imaginarium Inc., which  
recently emerged from Chapter 11 protection after being purchased by an  
investment group led by former Toys 'R' Us executive Ronald E. Tuchman,  
announced today that Connie Van Epps will join the new management team as  
Executive Vice President, Director of Merchandise, effective February 24,  
1997. In this position, Van Epps will lead the Company's merchandising efforts  
to further develop its niche as an upscale toy retailer specializing in creative,  
non-violent, educational merchandise that is not widely available at mass  
merchandisers and toy store chains.

"Connie is an extremely talented merchant whose knowledge of the upscale toy  
market is second to none," said Ronald E. Tuchman, Imaginarium Chairman and  
Chief Executive Officer. "Her 11 years at F.A.O. Schwarz coupled with her  
expertise in product development, sourcing and merchandise management, will  
be an important asset for the new management team as we refine the concept and  
expand nationwide."

Van Epps commented, "I am excited to join the new Imaginarium management  
team. Imaginarium is one of the few retailers that truly focuses on the upscale  
end of the toy business. I believe that Imaginarium's 3,000 s.f. store size allows  
for a truly focused upscale merchandise mix while creating a profitable model  
for the Company and a manageable shopping experience for the customers. I  
look forward to using my knowledge of the toy industry to contribute to the  
management team's efforts to make a good concept into a great Company."

In addition to sourcing and refining the merchandise mix for the 44-store, $45  
million chain, Van Epps will spearhead efforts to expand Imaginarium's  
exclusive line of creative, non-violent, developmentally appropriate toys which  
are sold under the Imaginarium label.

For the past 11 years Van Epps has served in a variety of senior capacities at  
F.A.O. Schwarz, most recently as Vice President, Merchandise Manager  
responsible for Infants, Arts & Crafts, Educational, Wood, Construction,  
Nickelodeon, Lego, Playmobil, Novelty, Clothing and Special Projects.  
Previously, Van Epps served as a Buyer for Gimbels and a Department Manager  
and Buyer Trainee at Macy's.

"Imaginarium's proprietary toy line - which was never properly developed  
under previous management - has tremendous potential to help build brand  
awareness and increase the chain's identity as the destination for upscale,  
high-quality merchandise," added Tuchman. "Connie's expertise in program and  
merchandise development coupled with her extensive background in overseas  
product sourcing, will enable us to expand this line with high quality products at  
excellent margins for the Company."

Imaginarium is an upscale specialty toy retailer of creative, non-violent,  
educationally oriented toys and other related products for children from birth to  
10 years of age. The Company operates 44 stores nationwide in states including  
California, Washington, Oregon, Ohio, Minnesota, Connecticut, Maryland, New  
Jersey, Texas, Arizona and Kentucky. At its peak, Imaginarium operated 69  
stores nationwide, but recently closed 25 underperforming stores as part of its  
bankruptcy process.

SOURCE Imaginarium Inc. /CONTACT: Michael W. Kempner,, or Carreen Winters,, both of  
MWW/Strategic Communications, Inc. Public Relations, 201-507-9500/

Pinnacle Micro Announces Fourth Quarter and Year-End 1996 Operating  

IRVINE, Calif., Feb. 14, 1997 - Pinnacle Micro, Inc. (Nasdaq: PNCL) today  
reported operating results for the fourth quarter and year ended December 28,  

Fourth Quarter Results

Revenue for the fourth quarter of 1996 was $15,895,000, compared to  
$19,658,000 in the fourth quarter of 1995. This change was primarily due to the  
decline in sales of the Company's earlier generation RCD products and the end  
of life Sierra drive, but was partially offset by shipments of Apex and Vertex  
products. Initial Apex shipments contributed to an 11 percent increase in fourth  
quarter 1996 revenue over the third quarter 1996 revenue.

The operating loss (before interest and taxes) was $3,119,000 for the fourth  
quarter of 1996, compared to an operating loss of $3,481,000 for the fourth  
quarter of 1995. The fourth quarter 1996 operating loss excluding nonrecurring  
charges was $2,982,000, an improvement of $350,000 over the third quarter of  
1996 due to improved gross margin and product mix, largely the result of Apex  
shipments. Improvements in gross margin were offset by certain expenses  
related to the relaunch of Apex and the manufacturing consolidation and  
reorganization in Colorado Springs.

Fiscal Year 1996

Revenue for fiscal 1996 was $59,921,000, compared to $81,844,000 in fiscal  
1995. The decline in sales of earlier generation RCD products and the end of  
life Sierra product in the current year was partially offset by Apex and Vertex  
sales. The operating loss was $18,463,000 for l996, compared to an operating  
loss of $3,274,000 for 1995. Excluding nonrecurring charges, the operating loss  
for 1996 was $13,742,000 compared to $1,142,000 for 1995, attributable to  
lower revenue and product mix.

"1996 was a year of transition with positive developments and progress in a  
number of areas," said Ken Campbell, president. "After a long delay Apex  
entered production. The Company addressed some of its liquidity requirements  
with the completion of two offshore private placements of convertible debt and  
a secured line of credit. Beginning in the third quarter 1996, on a sequential  
quarter to quarter basis, revenues have increased and the operating loss before  
nonrecurring charges declined. Gross margins improved and cost reduction  
steps taken in the fourth quarter are expected to reduce the Company's cost  
structure in 1997. Management believes the important relationships with  
strategic suppliers are strong. Important steps have been taken to position the  
Company to launch high capacity 5.25" optical library systems and to address  
the vertical systems market for optical drives. Our turnaround is underway,  
although a lot of work remains to be done."

The Company is not announcing its net loss for 1996 at this time because of an  
accounting issue concerning its convertible debentures. As previously reported,  
in July 1996 the Company issued $10,000,000 of convertible debentures which  
allowed conversion into common stock at a discount from market value. Late in  
the fourth quarter of 1996, the Company issued an additional $5,000,000 of  
convertible debentures with discount features. In December, at a conference  
presented by the American Institute of Certified Public Accountants,  
representatives of the Securities and Exchange Commission (SEC) presented  
their belief as to the proper accounting for similar securities. If this accounting  
treatment is applied to the issuance of the Company's convertible debentures, the  
Company understands that it would be required to record the discount as  
additional paid-in capital and amortize that amount over the earliest conversion  
period of the debentures.

The Company and its accountants have been in discussions with the SEC to  
resolve this issue. Based on the Company's current understanding, this non- cash  
interest expense for 1996 could be in the range of $1,500,000 to $2,000,000.  
This expense would not affect operating results, cash or stockholders' equity.  
The Company has no assurance as to how the issue will be resolved.

Risk Factors Associated with Forward Looking Statements The Company's  
prospects depend on Apex selling according to plan and shipments remaining on  
schedule. The Company's working capital requirements will remain high. If  
Apex demand is significantly below forecast there will be liquidity constraints.  
An adverse change in a relationship with a strategic vendor partner could  
materially affect the Company.

Pinnacle Micro, Inc. is a recognized leader in recordable CD technology and  
optical storage systems for general data storage and data intensive applications  
such as network storage, imaging, desktop and prepress, as well as emerging  
applications such as digital audio/video editing and commercial multimedia.  
Founded in 1987, Pinnacle Micro, Inc. is headquartered in Irvine, CA with  
offices in North America and Europe.

                                 PINNACLE MICRO,

                      CONDENSED STATEMENTS OF
                      OPERATING RESULTS

                                     13 Weeks

                                     Weeks Ended
                                    Dec. 28,      
                                     Dec. 30,     
                                     Dec. 28,
        Dec. 30,




          Net sales              $15,895,000    
          $19,658,000   $59,921,000

          Cost of sales           11,960,000     
          14,700,000    48,092,000

          Gross profit             3,935,000      
          4,958,000    11,829,000

          Operating expenses:

        Selling, general
              and administrative   5,433,000      
              4,993,000    19,565,000

        Research and

              development          1,484,000      
              1,920,000     6,006,000

            Nonrecurring charges     137,000      
            1,526,000     4,721,000

          Total operating

                expenses           7,054,000      
                8,439,000    30,292,000

          Operating loss        $(3,119,000)   


          Operating loss before
            nonrecurring charges$(2,982,000)   

SOURCE Pinnacle Micro, Inc./CONTACT: Megan Morrow, Investor Relations  
of Pinnacle Micro, 714-789-3114 direct, or 800-553-7070, ext. 3114,

Tyler Corporation Reports 1996 Financial Results

DALLAS, TX - Feb. 14, 1997 - C. A. Rundell, Jr., interim chief executive  
officer of Tyler Corporation (NYSE: TYL), announced today that for the year  
ended December 31, 1996, the Company had a pretax loss from continuing  
operations of $64.3 million. This loss includes a pretax charge of $52.1 million  
for the write-off of goodwill and other intangibles at Forest City Auto Parts  
("Forest City") and Institutional Financing Services ("IFS"), and $9.9 million of  
restructuring and other charges. Net sales fell 9% to $128.4 million from $140.6  

The tangible fourth-quarter charges are primarily for excess inventory at IFS  
and Forest City, store closings at Forest City, uncollectible accounts receivable  
at IFS, lease commitments on vacant corporate facilities, severance pay and  
other obligations relating to termination of employees, and settlement of an  
employee-benefit plan which was discontinued in 1996.

The Company reported a $2.0 million pretax loss from discontinued operations  
in 1996 related to claims arising from the past foundry operations of Tyler Pipe.  
Tyler Pipe is, has been and expects to continue to be, involved in different types  
of litigation, including environmental claims and claims for work-related  
injuries and physical conditions. Tyler Pipe has a suit involving silicosis claims  
at this time. Amounts expensed in 1996 include costs of investigating the  
silicosis claims and other claims and the cost of related expert studies to  
determine what, if any, liability Tyler Pipe has for these matters.

Forest City same-store sales were up 1% compared to the year-earlier period.  
"Same-store sales advanced 5% in the first half of 1996; however, competitors  
aggressively opened new stores in Forest City's markets in the second half of  
1996, adversely affecting same-store sales comparisons," Rundell stated.  
Operating profit declined from $4.0 million in 1995 to $3.8 million in 1996  
before charges for impairment of goodwill and other intangibles and  
restructuring and other charges.

Domestic sales at IFS were 18% below 1995. "The company lost market share  
as a result of competitive pressures on the profit percentages offered to school  
sponsors and turnover in its established sales force," Rundell commented. The  
company posted a $1.0 million operating loss, before charges for impairment of  
goodwill and restructuring and other charges, for 1996 versus $5.0 million of  
operating profit in 1995.

Before restructuring charges and other charges, Tyler had much lower corporate  
expense for calendar year 1996 compared to 1995. Savings came from a gain  
through sale of an asset and lower personnel expense.

"With new leadership at Forest City and the expectation of a new chief  
executive officer at Tyler, we believe that the Company is positioned to make  
significant progress in 1997," Rundell continued."Our primary focus will be on  
improving near-term operating performance at both IFS and Forest City and  
returning Tyler to profitability. In addition, corporate expense will be reduced  
significantly for the year.

"We continue to explore all available avenues to enhance shareholders' return,  
including both supplemental acquisitions for existing operations and  
acquisitions in new lines of business."

Tyler Corporation, with national headquarters in Dallas, provides products for  
fund-raising programs and retails automotive parts.

                              TYLER CORPORATION

                              (Dollars in thousands)

                                                Years ended December 31


                                                                     % of

                                               1996        1995    Change
        Net sales
         Forest City Auto Parts              $ 85,074    $ 86,893    (2)
         Institutional Financing
          Services                             43,299      53,689   (19)
                                             $128,373    $140,582    (9)
        Operating profits (losses)
         Forest City Auto Parts              $    127 (A)$  4,002    --
         Institutional Financing
          Services                             (3,631)(A)   5,031    --
                                               (3,504)      9,033    --
        Other expenses
         Goodwill amortization
           and other expense                    2,160       2,426   (11)
         Interest (income) expense, net          (290)      2,628    --
         Corporate expense                      3,242       4,126   (21)
         Goodwill and other intangibles
           impairment charge                   52,105          --    --
         Restructuring and other
           corporate charges                    3,616          --    --
                                               60,833       9,180    --
        Loss from continuing operations
         before income tax (benefit)         $(64,337)   $   (147)   --

        (A) Includes restructuring and other charges of $3,634 and $2,647 at

            Forest City and IFS, respectively

                                   TYLER CORPORATION

                     (Dollars in thousands, except per share data)

                                                  Years ended December 31

                                                                       % of
                                               1996         1995      Change

        Net sales                            $128,373    $140,582        (9)

        Costs and expenses                    193,000(B)  138,101       +40
        Interest (income) expense, net           (290)      2,628        --

        Loss from continuing operations

         before income tax (benefit)          (64,337)       (147)       --
        Income tax (benefit)                   (4,307)        560        --

        Loss from continuing operations       (60,030)       (707)       --


        Discontinued operations

         Income (loss) from discontinued
          operations, after income
          tax (benefit)                        (1,300)        365        --
         Loss on disposal of discontinued
          operations, after income tax             --      (16,631)      --

         Loss from discontinued

          operations                           (1,300)    (16,266)       --
        Net loss                             $(61,330)   $(16,973)       --

        Loss per common share

         Continuing operations               $  (3.02)   $   (.04)       --
         Discontinued operations                 (.07)       (.81)       --

        Net loss per common share            $  (3.09)   $   (.85)       --

        Average shares (thousands)             19,876      19,869

        (B) Includes $52,105 goodwill and other intangibles impairment charge

            and $9,897 restructuring and other charges

                                             Three months ended December 31


                                                                       % of

                                               1996         1995      Change

        Net sales                            $ 45,136    $ 52,810       (15)

        Costs and expenses                    103,343(C)   42,085      +146
        Interest (income) expense, net            (71)        543       --

        Income (loss) from continuing

         operations before
         income tax (benefit)                 (58,136)     10,182       --
        Income tax (benefit)                   (2,802)      5,824       --

        Income (loss) from continuing

         operations                           (55,334)      4,358       --
        Discontinued operations
         Loss from discontinued
          operations, after income
          tax (benefit)                        (1,300)       (739)      --
         Loss on disposal of discontinued
          operations, after
          income tax                              --      (16,631)      --

         Loss from discontinued

          operations                           (1,300)    (17,370)      --

        Net loss                             $(56,634)   $(13,012)      --


        Earnings (loss) per common share

         Continuing operations               $  (2.78)   $    .22       --
         Discontinued operations                 (.07)       (.87)      --

        Net loss per common share            $  (2.85)   $   (.65)      --


        Average shares (thousands)             19,877      19,873


        (C) Includes $52,105 goodwill and other intangibles impairment charge

            and $9,897 restructuring and other charges

SOURCE Tyler Corporation/CONTACT: Linda K. Hill of Tyler Corporation,  

Xyvision reports third fiscal quarter 1997 results

WAKEFIELD, Mass.--Feb. 14, 1997-- Xyvision, Inc. (NASDAQ Symbol:  
XYVI) reported revenues of $5,698,000 for the third quarter of fiscal 1997  
ended December 31, 1996.

This represents an increase of 8% from revenues of $5,288,000 for the same  
quarter of the previous year. The operating income for the third quarter of the  
current fiscal year was $185,000 compared to a net loss from operations of  
$1,782,000 for the same quarter of the previous year. For the third quarter of  
fiscal 1997, the Company reported net income allocable to common  
stockholders of $16,000, or $.00 per share, compared to a net loss allocable to  
common stockholders of $2,017,000, or $.23 per share, for the same quarter a  
year ago.

For the nine month period ended December 31, 1996, revenues of $17,208,000  
were up $237,000, or 1%, from the same period of the previous fiscal year. The  
year to date income from operations for the current fiscal year was $613,000  
compared to a net loss from operations of $2,378,000 for the same period of the  
previous fiscal year. The net income allocable to common stockholders for the  
first nine months of fiscal 1997 was $37,000, or $.00 per share, compared to a  
net loss allocable to common stockholders of $3,018,000, or $.34 per share, for  
the same period a year ago.

Xyvision develops, markets and supports publishing, document management,  
and prepress software products that automate the production of paper and  
electronic documents. Headquartered in Wakefield, Mass., Xyvision sells its  
products through a direct sales force and systems integrators in North America  
and through affiliated distributors in the rest of the world.

Third quarter financial highlights are as follows:


                                XYVISION, INC.  
                          CONSOLIDATED BALANCE
                      AT DECEMBER 31, 1996 AND
                      MARCH 31, 1996


                                          r 31,   



        Current assets:  
        Cash and cash equivalents               $
         227          $  332 Accounts receivable:
         Trade, less allowance  
         for doubtful accounts of $578 at  
         December 31, 1996 and $938 at  
         March 31, 1996                          
         6,851           5,889  
         390             377 Other current assets
                              699             756




           Total current assets                  
           8,167           7,354

        Property and equipment, net               
         718             724 Other assets, net,
         software development costs              
         2,344           2,203  
           Total assets                        
           $11,229         $10,281


        Current liabilities:  
        Note payable to a stockholder          $
        4,900        $  3,400 Current portion of
        long-term debt        2,027           
        4,064 Accounts payable and accrued
        expenses    2,930           3,588 Other
        current liabilities                2,280  
           Total current liabilities            
           12,137          14,105  
        Long-term debt, less current portion      
         177           5,420  
           Total liabilities                    
           12,314          19,525  
        Commitments and contingencies             
        --               --

        Stockholders' deficit:  
        Capital stock:  
        Series preferred stock, $1.00 par  
         value; 2,700,000 shares authorized; no
         shares issued                         --
        Series B preferred stock, $1.00 par  
         value; 300,000 shares authorized;  
         235,299 issued at December 31, 1996 and
         222,943 issued at March 31, 1996  
         (aggregate liquidation preference of
         $2,941 and $2,787, respectively)         
          235             223  
        Common stock, $.03 par value;  
         50,000,000 shares authorized;  
         14,730,857 issued at December 31, 1996
         December 31, 1996 and 9,300,037 at March
         31, 1996                         442     
                 279 Additional paid-in capital   
                   48,968          41,262
         Accumulated deficit                   
         (49,561)        (49,599)     







        Treasury stock, at cost; 476,865  
         shares at December 31, 1996 and  
         477,865 shares at March 31, 1996        
         1,169           1,172  
        Receivable from Employee Stock  
         Ownership Plan                           
          --              237  
           Total stockholders' deficit          
           (1,085)         (9,244) Total
           liabilities and  
        stockholders' deficit              
        $11,229         $10,281


                                  XYVISION, INC.  
                         CONSOLIDATED STATEMENT
                         OF OPERATIONS  
            For the three and nine months ended
            December 31, 1996 and 1995  
                        (in thousands, except per
                        share data)

                                Three Months

                                Ended    Nine
                                Months Ended Dec.
                                31,  Dec. 31,    
                                Dec. 31,  Dec.
                                 1996      1995   


        Revenues                     5,698     
        5,288      17,208    16,971  
         Cost of sales               2,940     
         3,022       8,820     8,799 Gross margin
                        2,758     2,266       
         8,388     8,172

         Research and development      797       
         879       2,266     2,416 Marketing,
         general and  
          administrative             1,776     
          2,669       5,509     7,634  
         Restructuring charge           --       
         500          --       500 Total
         operating expenses    2,573     4,048    
            7,775    10,550 Income (loss) from  
          operations                   185    
          (1,782)        613    (2,378)

        Other expense, net:   
         Interest income                 1        
          1           4         5 Interest
         expense - third  
          party                        (38)     
          (112)       (227)     (298)  
         Interest expense -  
          stockholder                 (108)     
          (102)       (383)     (284)  
         Total other expense, net     (145)     
         (213)       (606)     (577)

        Income (loss) before income  
         taxes and extraordinary item   40    
         (1,995)          7    (2,995) Provision
         for income taxes     --        --        
           --        -- Net income (loss) before  
          extraordinary item            40    
          (1,995)          7    (2,955)

        Extraordinary item:   
        Gain on the exchange of  
         convertible subordinated  
         debentures                     --        
         --         100        -- Net income
         (loss)              40    (1,995)        
         107    (2,955) Series B Preferred Stock  
          dividends                     24        
          22          70        63  
         Net income (loss) allocable  
          to common stockholders       $16  $
          (2,017)        $37  $ (3,018)

        Earnings per share:  
         Income (loss) per share      $.00   $
         (0.23)       $.00   $ (0.34)  
        Weighted average common and  
         common  equivalent shares  
         outstanding                23,505     
         8,731      18,165     8,707

CONTACT: Eugene P. Seneta Xyvision, Inc. (617) 245-4100, ext. 5234


PORTLAND, Ore.--Feb. 14, 1997--As a result of prolonged delays in payment  
by the California Department of Health Services, Benova, Inc. has been forced  
to file a petition for reorganization in U.S. Bankruptcy Court. This  
reorganization will protect the company from actions by creditors, while the  
company reorganizes and continues to seek payment from the state.

"We have built Benova into the most experienced health plan enrollment broker  
in the country, trusted by state and federal health officials to implement complex  
Medicaid and Medicare enrollment programs," said Colleen Cain, president of  
Benova, a national enrollment broker that helps Medicaid recipients make  
informed decisions about their health care. "We will survive this, pay our  
creditors, and continue to serve our customers."

"We took this action to ensure that California's failure to pay us in a timely  
manner, and the resulting financial repercussions, would not compromise our  
ability to manage our successful existing enrollment contracts. We don't believe  
our other clients or their states should be disadvantaged by what California has  
done to Benova," Cain said.

Benova currently has enrollment broker contracts with Connecticut,  
Pennsylvania, Virginia and Oklahoma to enroll Medicaid- eligible individuals  
into managed care plans, and a contract with the federal government to plan an  
enrollment broker demonstration program for the Medicare program in Denver.

Cain said Benova needs to separate its payment dispute with California from the  
ongoing operations of an otherwise healthy business, which is what the  
reorganization plan will accomplish.

The Department of Health Services owes Benova approximately $6 million in  
overdue invoices for work the company conducted on their behalf to implement  
the largest expansion ever undertaken in the nation for Medicaid managed care.  
"Once we receive payment from the state, we'll be able to pay our vendors for  
work completed," Cain said.

Last June, after a successful 12-year relationship, Benova learned a competitor  
had been selected as the state's new enrollment broker beginning January 1997.  
Despite the pending transition, California health department managers asked  
Benova to manage an unprecedented five-fold increase in enrollment and an  
expansion into 10 new California counties.

To help prevent potential service issues resulting from the rapid expansion,  
Benova asked the state for additional computer hardware and software, and  
during the expansion, repeatedly warned the state of the need for adequate  
resources. Without the state's support, Benova was able to resolve service  
issues affecting the program and, as recently as early December, the state and  
Benova were negotiating to extend Benova's contract to June 1997. The  
California Department of Health Services has been widely criticized by health  
care leaders and elected officials for its management of this program.

"We have spent millions of dollars to perform under very difficult  
circumstances," Cain said. "It is clearly the state's obligation to pay for the  
services we provided."

The state recently filed a suit against Benova over reported billing  
discrepancies, which could have been resolved if the state had followed its  
contractual agreement to share questions about invoices within 15 days of their  
receipt. The suit also asks Benova for damages related to service issues during  
the expansion. Benova believes the suit is an attempt for political purposes to  
unfairly place blame on Benova for service issues resulting from the Department  
of Health Services decision to greatly expand its Medi- Cal program.

The U.S. Bank of Oregon, Benova's largest creditor, has been cooperating with  
the company throughout this process. Benova expects the court to confirm its  
reorganization plan within six months.

Benova, based in Portland, Ore., is the most experienced enrollment broker in  
the country with more than 15 years of helping people make informed decisions  
about their health care. The company has approximately 260 employees  

CONTACT: Bowler & Associates Inc. Brian Bell or Jennifer Maxwell-Muir,