/raid1/www/Hosts/bankrupt/TCR_Public/960307.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For - March 7, 1996



  1. KMART CORPORATION ANNOUNCES 1995 YEAR-END, FOURTH QUARTER RESULTS
  2. PLY GEM ANNOUNCES FOURTH QUARTER AND YEAR-END 1995 RESULTS
  3. MBf USA, INC. ANNOUNCES RESULTS FOR 1995
  4. BOB SWERDLING JOINS PIPER JAFFREY
  5. CONVERSE ANNOUNCES FOURTH QUARTER AND YEAR END RESULTS
  6. PANNEKOEKEN ANNOUNCES REOPENING OF ALL STORES AND FILING FOR PLAN OF REGORANIZATION
  7. ARCA REPORTS FOURTH QUARTER AND FULL-YEAR 1995 RESULTS



KMART CORPORATION ANNOUNCES 1995 YEAR-END, FOURTH QUARTER RESULTS
        


            TROY, Mich., March 7, 1996 - Kmart Corporation (NYSE: KM)
        today reported net income from continuing retail operations of $21
        million, or $0.05 per share, for the fourth quarter of 1995.  These
        results exclude a non-cash charge of $390 million, net of tax, or
        $0.85 per share, taken in the quarter for the adoption of Statement
        of Financial Accounting Standard No. 121 ("FAS 121"), reflecting
        management's assessment of the impairment of the Company's
        investment in Builders Square, and certain International operations.
        Including the FAS 121 charge, the net loss from continuing
        operations for the quarter was $369 million, or $0.80 per share.
        This compares to a net loss from continuing retail operations of $16
        million, or $0.04 per share, for the fourth quarter of 1994.

        
            In addition, during the fourth quarter of 1995, the Company
        recorded an extraordinary charge of $51 million, net of tax, or
        $0.11 per share, for a previously announced restructuring of its
        real estate and bank debt.  After these charges and including income
        and gains from discontinued operations in the prior year, Kmart
        reported a net loss of $420 million, or $0.91 per share, for the
        fourth quarter of 1995, compared with net income of $145 million, or
        $0.31 per share, for the fourth quarter of 1994.

       
            For the full year ended January 31, 1996, Kmart reported a net
        loss of $571 million, or $1.25 per share, compared to net income of
        $296 million, or $0.63 per share, in 1994.  Before the FAS 121
        charge, the net loss from continuing retail operations for 1995 was
        $100 million, or $0.23 per share.
    

    
            The following table recaps these key elements of net earnings
        for the fourth quarter and full year:
      

 
        (Amounts in millions)   FY 1995    FY 1994    4Q 1995    4Q 1994
        Net Income (Loss)
         from Continuing
         Retail Operations       ($100)     $104        $21        ($16)
        Asset Impairment Charges
         net of income taxes     ($390)       --      ($390)         --
        "Put" Debt-related
         charge, net of income
         taxes                    ($51)       --       ($51)         --
        Gain (Loss) from
         Discontinued
         Operations, net          ($30)     $192         --        $161
        Net Income (Loss)
         as Reported             ($571)     $296      ($420)       $145

        
            Commenting on 1995 results, Floyd Hall, Chairman, President and
        CEO said: "Kmart's poor financial performance reflects a major
        financial and strategic restructuring of the Company.  These results
        represent the bottoming out of Kmart's financial decline.  In 1995,
        Kmart bit the bullet by closing underperforming stores, clearing out
        discontinued inventory, and divesting non-core assets.
      

  
            "We resolved the puttable real estate debt and took the one-time
        writedown related to Builders Square and our International
        operations, and continued to make good progress in restructuring and
        strengthening our financial flexibility and stability.

        
            "We will build on last year's cost-cutting efforts by reducing
        SG&A expense by an additional $400 million.  In 1996, merchandising
        and operational initiatives already underway will result in improved
        assortments, better in-stock positions, cleaner and more orderly
        stores, and dramatic gains in customer service.  We are confident
        that our 1995 actions, our new management team, and an intense
        customer focus will produce a return to profitability in 1996 and
        longer term."
   

     
        FOURTH QUARTER 1995 RESULTS OF OPERATIONS


            Total sales in the fourth quarter of 1995 were $10.531 billion,
        an increase of 6.6% from $9.876 billion for the fourth quarter of
        1994.  On a comparable store basis, excluding the fifty-third week
        in 1995, consolidated sales were up 4.7%.  Sales in U.S. Kmart
        stores increased 5.9% on the same basis.

        
            Gross margin for the fourth quarter of 1995 was 20.4% of sales
        versus 20.3% in the prior year.  The fourth quarter gross margin was
        favorably impacted by the implementation of a previously-announced
        inventory accounting change made in the first quarter of 1995.
        Pretax LIFO credits of $43 million and $57 million were recorded
        during the fourth quarters of 1995 and 1994, respectively.  Selling,
        general and administrative expenses, as a percentage of sales, for
        the fourth quarter were 20.2% in 1995 versus 20.8% in 1994.

        
        FULL YEAR 1995 RESULTS OF OPERATIONS
   


            Total sales during 1995 were $34.389 billion, an increase of
        5.8% from $32.514 billion in the preceding year.  On a comparable
        store basis, and excluding the fifty-third week in 1995,
        consolidated sales were up 4.3%.  Sales in U.S. Kmart stores
        increased 5.6% on that same basis.
      

  
            Gross margin for the year was 21.5% of sales versus 23.5% during
        1994.  Pretax LIFO credits of $36 million and $57 million were
        recorded during 1995 and 1994, respectively, reflecting lower
        inventory and inflation levels.  Selling, general and administrative
        expenses, as a percentage of sales, were 22.0% during 1995 versus
        22.7% during 1994.

        
            Kmart Corporation serves America with 2,168 Kmart plus 167
        Builders Square retail outlets and 147 stores internationally.
        


            Kmart Corporation common stock is listed on the New York,
        Pacific, and Chicago Stock Exchanges.
        



                               KMART CORPORATION
                    Sales and Operating Results by Business
          14 Weeks Ended January 31, 1996 and 13 Weeks Ended January 25,
        1995
        
                                     SALES
        
                                                          % Change
                                                       All      Comparable
        (Millions U.S. $)       1/31/96    1/25/95   Stores       Stores(b)
        General Merchandise --
         United States         $  9,467   $ 8,793     7.7          5.9
         International              434       404     7.2          3.7(a)
        Total General
         Merchandise              9,901     9,197     7.6          5.8
        Specialty Retail --
         Builders Square            630       679    (7.2)       (10.7)
        Total Kmart            $ 10,531   $ 9,876     6.6          4.7
        
            (a) International comparable stores sales change is calculated
        on sales in the applicable local currency.
        
            (b) Comparable store sales are based on the 13-week period ended
        1/24/96.
        
                                 OPERATING RESULTS
        
        (Millions U.S. $)       1/31/96    1/25/95   % Change
        General Merchandise --
         United States            $ 124      $ 29       ---
         International(a)            (7)       14    (150.0)
        Total General
         Merchandise                117        43      172.1
        Specialty Retail --
         Builders Square(a)         (12)       (2)       ---
        Total Kmart(a)            $ 105      $ 41      156.1
        
            (a) Excludes $532 million total charges for FAS 121 in the
        fourth quarter of 1995.
        
                                 KMART CORPORATION
                      Sales and Operating Results by Business
        53 Weeks Ended January 31, 1996 and 52 Weeks Ended January 25, 1995
        
                                       SALES
        
                                                          % Change
                                                       All      Comparable
        (Millions U.S. $)       1/31/96    1/25/95   Stores       Stores(b)
        General Merchandise --
         United States         $ 30,429  $ 28,386     7.2          5.6
         International            1,284     1,177     9.1          3.0(a)
        Total General
         Merchandise             31,713    29,563     7.3          5.5
        Specialty Retail --
         Builders Square          2,676     2,951    (9.3)        (8.7)
        Total Kmart            $ 34,389  $ 32,514     5.8          4.3
        
            (a) International comparable store sales change is calculated on
        sales in the applicable local currency.
        
            (b) Comparable store sales are based on the 52-week period ended
        1/24/96.
        
                                 OPERATING RESULTS
        
        (Millions U.S. $)       1/31/96    1/25/95   % Change
        General Merchandise --
         United States            $ 262     $ 505     (48.1)
         International(a)           (17)       23    (173.9)
        Total General
         Merchandise                245       528     (53.6)
        Specialty Retail --
         Builders Square(a)         (17)       28    (160.7)
        Total Kmart(a)            $ 228     $ 556     (59.0)
        
            (a) Excludes $532 million total charges for FAS 121 in the
        fourth quarter of 1995.
        
                                 KMART CORPORATION
                       Consolidated statements of Operations
        
                                             14 Weeks     13 Weeks
                                              Ended         Ended
        (Amounts in millions,                1/31/96       1/25/95
         except per share data)
        
        Sales                                $ 10,531     $ 9,876
        Licensee fees and other income             78          91
        Total                                  10,609       9,967
        Cost of merchandise sold                8,378       7,869
        Selling, general and
         administrative expenses                2,126       2,057
        Asset impairment charges                  532         ---
        Interest expense, net                     127         120
        Loss from continuing retail operations
         before income taxes and equity income   (554)        (79)
        Equity in net income of
         unconsolidated companies                  15          20
        Income tax credit                        (170)        (43)
        Net loss from continuing retail
         operations before extraordinary item    (369)        (16)
        Income from discontinued operations,
         net of income taxes                        1          44
        Gain on disposal of discontinued
         operations, net of income taxes           (1)        117
        Extraordinary debt restructuring
         charges, net of income taxes             (51)        ---
        Net income (loss)                    $   (420)    $   145
        Earnings (loss) per common share:
         Continuing retail operations before
          asset impairment charges              $0.05      $(0.04)
         Asset impairment charges              $(0.85)        ---
          Continuing retail operations         $(0.80)     $(0.04)
         Income from discontinued operations      ---       $0.09
         Gain on disposal of
          discontinued operations                 ---       $0.26
         Extraordinary debt
          restructuring charges                $(0.11)        ---
         Net income (loss)                     $(0.91)      $0.31
        Weighted average shares outstanding     461.6       457.9
        
            .. The consolidated statement of operations for the prior period
        has been restated for discontinued operations.
        
                                 KMART CORPORATION
                       Consolidated Statements of Operations
        
                                             53 Weeks     52 Weeks
                                              Ended         Ended
        (Amounts in millions,                1/31/96       1/25/95
         except per share data)
        
        Sales                                $ 34,389    $ 32,514
        Licensee fees and other income            265         286
        Total                                  34,654      32,800
        Cost of merchandise sold               26,996      24,868
        Selling, general and
         administrative expenses                7,554       7,376
        Asset impairment charges                  532         ---
        Gain on pension curtailment              (124)        ---
        Interest expense, net                     446         493
        Loss from continuing retail operations
         before income taxes and equity income   (750)         63
        Equity in net income of
         unconsolidated companies                  38          52
        Income tax provision (credit)            (222)         11
        Net income (loss) from continuing retail
         operations before extraordinary item    (490)        104
        Income from discontinued operations,
         net of income taxes                      ---          75
        Gain (loss) on disposal of discontinued
         operations, net of income taxes          (30)        117
        Extraordinary debt restructuring
         charges, net of income taxes             (51)        ---
        Net income (loss)                    $   (571)    $   296
        Earnings (loss) per common share:
         Continuing retail operations before
          asset impairment charges             $(0.23)     $ 0.21
         Asset impairment charges              $(0.85)        ---
          Continuing retail operations         $(1.08)     $ 0.21
         Income from discontinued operations      ---      $ 0.16
         Gain (loss) on disposal of
          discontinued operations              $(0.06)     $ 0.26
         Extraordinary debt
          restructuring charges                $(0.11)        ---
         Net income (loss)                     $(1.25)     $ 0.63
        Weighted average shares outstanding     459.9       456.6
        
            .. The consolidated statement of operations for the prior period
        has been restated for discontinued operations.
        
                               KMART CORPORATION
                Consolidated Condensed Statements of Cash Flows
        
                                                   53 Weeks    52 Weeks
                                                    Ended       Ended
        (Amounts in millions)                      1/31/96     1/25/95
        
        Cash Provided by (Used for) Operations:
        Income (loss) from continuing
         retail operations                        $  (490)    $  104
        Adjustments to reconcile net income to
         net cash provided by (used for) operations
         Extraordinary item                           (51)       ---
         Asset impairment charges                     532        ---
         Depreciation and amortization                729        680
         Cash used for store restructuring
          and other charges                          (231)      (133)
         Deferred income taxes                       (109)        40
         Decrease (increase) in inventories           289       (628)
         Increase (decrease) in accounts payable     (645)       420
         Other, net                                  (269)       227
         Net cash provided by (used for)
          continuing retail operations               (245)       710
        
        Discontinued operations:
         Gain (loss) on disposal and income
          from discontinued operations                (30)       192
         Cash provided by (used for)
          discontinued operations                     307       (362)
         Items not affecting cash, net                (51)      (636)
         Total from discontinued operations           226       (806)
        
        Net cash used for operations                  (19)       (96)
        
        Investing:
         Capital additions                           (578)    (1,125)
         Proceeds from asset sales and
          subsidiary public offerings               1,093      2,431
         Other, net                                  (279)      (229)
        Net cash provided by investing                236      1,077
        
        Financing:
         Net proceeds from (repayments of)
          long-term debt and notes payable            963       (453)
         Dividends paid                              (283)      (474)
         Reduction in capital lease
          obligations and other                      (155)       (80)
        Net cash provided by (used for) financing     525     (1,007)
        
        Net increase (decrease) in cash               742        (26)
        Cash at beginning of year                     353        379
        Cash at end of year                       $ 1,095    $   353
        
            .. The consolidated cash flow statement for the prior period has
        been restated for discontinued operations.
        
                               KMART CORPORATION
                          Consolidated Balance Sheets
        
        (Amounts in millions)                      1/31/96     1/25/95
        
        ASSETS:
        Current Assets:
         Cash (including temporary investments
          of $637 and $32, respectively)          $ 1,095    $   353
         Merchandise inventories                    6,635      6,853
         Other current assets                       1,092      1,290
         Net current assets of
          discontinued operations                     ---        369
         Total current assets                       8,822      8,865
        
        Investments in affiliated retail companies     94        108
        Property and equipment -- net               5,301      6,011
        Other assets and deferred charges           1,180        913
        Net long-term assets of
         discontinued operations                      ---        745
        TOTAL ASSETS                             $ 15,397   $ 16,642
        
        LIABILITIES AND SHAREHOLDERS' EQUITY
        Current Liabilities:
         Long-term debt due within one year      $      7   $    235
         Notes payable                                ---        748
         Accounts payable -- trade                  1,993      2,638
         Accrued payrolls and other liabilities     1,076      1,158
         Taxes other than income taxes                188        268
         Income taxes                                 ---        256
        Total current liabilities                   3,264      5,303
        
        Capital lease obligations                   1,629      1,777
        Long-term debt and notes payable            3,935      2,003
        Other long-term liabilities                 1,289      1,527
        
        Shareholders' Equity:
         Preferred stock, 10,000,000 shares
          authorized; Series C, 790,287 shares
          authorized; 658,315 shares issued at
          January 25, 1995                            ---        132
         Common stock, 1,500,000,000 shares
          authorized; shares issued 486,511,184
          and 464,549,561, respectively               486        465
         Capital in excess of par value             1,624      1,505
         Retained earnings                          3,326      4,074
         Treasury shares and restricted stock         (92)       (86)
         Foreign currency translation adjustment      (64)       (58)
         Total shareholders' equity                 5,280      6,032
         TOTAL LIABILITIES AND
          SHAREHOLDERS' EQUITY                   $ 15,397    $ 16,642
        
            .. The consolidated balance sheet for the prior period has been
        restated for discontinued operations.


        CONTACT:  Robert M. Burton, Director, Investor Relations,
        810-643-1040, or Shawn M. Kahle, Vice President, Corporate Affairs,
        810-637-4201, both of Kmart


PLY GEM ANNOUNCES FOURTH QUARTER AND YEAR-END 1995 RESULTS
        


            NEW YORK, March 7, 1996 - PLY GEM Industries, Inc. (NYSE:
        PGI) today announced its results for the fourth quarter and year-
        ended December 31, 1995.
        


            Sales for the fourth quarter of 1995 declined to $174,489,000
        from $194,205,000 a year ago, reflecting product lines discontinued
        in 1995 as a result of the Company's strategic review of operations.
        Operating results for the 1995 fourth quarter include a one-time pre-
        tax charge of $12 million resulting from the implementation of the
        Financial Accounting Standards Board's newly mandated Rule 121.  The
        new rule changes the method that companies must use to value long-
        lived assets. The charge primarily relates to the Company's
        information systems and certain fixed assets, and reduces fourth
        quarter 1995 net income by $7.6 million or $.53 per share.  The net
        loss for the fourth quarter of 1995, including the nonrecurring
        charges, was $8,041,000 or $.56 per share compared to net income of
        $486,000 or $.03 per share in the year ago period.  As a result of
        the FASB Rule 121 charge, the Company's financial performance will
        be positively impacted by approximately $2 million annually
        beginning in 1996, as future amortization and depreciation of these
        assets will be reduced.

        
            Results for the year ended December 31, 1995 reflect
        discontinued product lines and the impact of the Company's
        unsuccessful 1994 restructuring program begun by previous
        management.  Sales were $741,394,000 compared to $796,419,000 a year
        ago, reflecting approximately $42 million of discontinued product
        lines in 1995.  Net income for the year 1995 was reduced by $7.6
        million or $.53 per share as a result of the charge taken during the
        fourth quarter resulting from the implementation of FASB Rule 121 as
        noted above.  The net loss for the 1995 year, including the
        nonrecurring charges, was $7,402,000 or $.51 per share compared to a
        not loss of $8,531,000 or $.62 per share in 1994.

        
            "It is important for all our stakeholders to realize that the
        fundamentals of the Company remain very strong and that the costs
        and problems associated with the 1994 restructuring have now been
        addressed and are being corrected.  Capitalizing on PLY GEM's
        historical strengths as a marketing-driven and customer-focused
        Company, combined with the profit improvement action plans currently
        underway, PLY GEM is poised for aggressive sales growth and
        significant improvement in profitability in 1996," stated Dana R.
        Snyder, President and Chief Operating Officer.

        
            The following actions were taken during the second half of 1995
        to significantly improve operating results in 1996:
   

     
        New Management:


            -- strengthened management team under the leadership of
        President and Chief Operating Officer Dana R. Snyder; a new budget
        and control process and a key management incentive plan was
        established in 1996 with greater business unit accountability for
        results;
   

     
        Profitable Sales Growth:


            -- based on a renewed commitment to delivering the highest
        levels of customer service and improvements in order fill ratios and
        on-time deliveries, the Company expects to resume its historical
        levels of double digit sales growth during 1996;

        
        Operational Enhancement:
      


            -- targeted implementation of the BPCS management information
        systems, and full implementation of the new manufacturing control
        software by the end of the second quarter of 1996, which are
        necessary to run the window businesses more efficiently;
        


        Margin Improvement:


            -- reductions in cost of goods sold through new procurement
        strategies, improved manufacturing efficiencies, process
        improvements and material utilization;
   

     
            - major reduction of administrative expenses and costs,
        including the closure of the secondary corporate infrastructure in
        Northbrook, IL created in 1994;
      

  
            - realization of fixed cost reductions from the completion of
        facility consolidations and headcount reductions, including the
        elimination of high consulting fees associated with the 1994
        restructuring; and

        
        Employee Productivity:


            -- creation and implementation of new employee productivity
        programs with a focus on key operating indicators that have linkage
        to financial performance improvements.
   

     
            PLY GEM also announced that its Studley Products, Inc.
        subsidiary will not proceed with the previously announced proposed
        joint venture with Melitta NA as the transaction could not be
        finalized under the terms previously agreed to by both entities.
        "We believe that given its newly strengthened management team, its
        strong base of North American customers, and extensive knowledge of
        product requirements, Studley Products, Inc. has the ability not
        only to maintain its market leadership position, but to outperform
        the competition in supplying quality products and service to the
        vacuum cleaner and related floor products industry," said Mr.
        Snyder.

        
        Efforts To Maximize Shareholder Value Proceeding
  


           In regard to the Company's previously announced effort to
        explore various alternatives to accelerate the maximization of
        shareholder value, including the possible sale of the entire
        Company, Chairman Jeffrey S. Silverman stated, "We are working with
        our financial advisors and reviewing several of the strategic
        alternatives available to us and will update shareholders on the
        outcome as soon as we are able to."
     

   
            Mr. Snyder added, "As part of the strategic review process we
        have conducted an exhaustive study of our organizational structure
        and associated costs.  Regardless of the course of action chosen,
        PLY GEM is taking aggressive steps to conduct its businesses with
        the lowest cost structure possible that does not jeopardize quality,
        customer service and creativity."

        
            During the fourth quarter of 1995 PLY GEM also announced that it
        had increased the number of shares authorized under a previously
        announced stock repurchase program to one million shares.  Since the
        announcement, the Company has repurchased approximately 300,000
        shares.  "The Board of Directors continues to feel that the current
        market price of our stock represents an excellent investment
        opportunity for the Company, given the strong fundamentals of our
        business and the current efforts to maximize shareholder value,"
        said Mr. Silverman.
   

     
            "Our primary mission for 1995 was to take the steps necessary to
        position PLY GEM for a dramatically improved performance in the year
        ahead.  The past year was not easy, given the costs and problems
        resulting from the 1994 restructuring, the multiple management and
        organizational changes made, and the aggressive profit improvement
        initiatives undertaken.  Many of these tasks have been accomplished
        and the fix is in sight for those in process.  We are very proud of
        our PLY GEM employees throughout the country who have been able to
        work through these difficult times and focus on the right things:
        results that lead to enhanced shareholder value.  We especially want
        to thank our shareholders for their continued loyalty and to affirm
        our commitment to maximize shareholder value in 1996," said Mr.
        Silverman.


        
                               PLY GEM INDUSTRIES
                    Consolidated Condensed Earnings Summary
                      (In thousands except per share data)
        
                                   Quarter Ended            Year Ended
                                Dec. 31     Dec. 31     Dec. 31     Dec. 31
                                 1995        1994        1995        1994
        
        Net Sales              $174,489    $194,205    $741,394    $796,419
          Cost of Sales         146,473     159,332     617,620     642,337
          Gross Profit           28,016      34,873     123,774     154,082
          Selling, General
            & Adm.               25,493      28,217     113,276     117,184
          Nonrecurring Charge        --       4,687          --      40,962
          FASB 121 Charge        11,950          --      11,950          --
        Operating Income (Loss)  (9,427)      1,969      (1,452)     (4,064)
          Interest Expense       (1,579)     (1,453)     (6,649)     (7,479)
          Investment & Other
            Inc. (Exp.)            (645)          8      (2,161)       (406)
        Pretax Income (Loss)    (11,651)        524     (10,262)    (11,949)
          Income Tax (Benefit)   (3,610)         38      (2,860)     (3,418)
        Net Income (Loss)       $(8,041)       $486     $(7,402)    $(8,531)
        
        Earnings (Loss) Per Share
          Primary                 $(.56)       $.03       $(.51)      $(.62)
          Fully Diluted           $(.56)       $.03       $(.51)      $(.62)
        
        Average Shares Outstanding
          Primary                14,435      15,874      14,445      13,870
          Fully Diluted          14,435      15,874      14,445      13,870
        
            (1) Results for the fourth quarter and year 1995 include a
        pretax charge of $12.0 million for the impairment of assets under
        FASB rule 121; after taxes the net charge was $7.6 million or $.53
        per share.
        
            (2) Results for the year 1994 include a pretax charge of $41.0
        million for restructuring and other nonrecurring items; after taxes
        the net charge was $25.7 million or $1.85 per share.  Results for
        the fourth quarter include a pretax charge of $4.7 million for
        restructuring and other nonrecurring items; after taxes the net
        charge was $3.2 million or $.20 per share.


        CONTACT:  Diane M. Cady, Vice President, Investor Relations of
        PLY GEM Industries, Inc., 212-832-1550; or Peter Rothschild,
        Sr. Managing Director, 212-272-3769, or Robert Bicknese, Managing
        Director, 212-272-3851, both of Bear Stearns & Co. Inc.


MBf USA, Inc. announces results for 1995
        


            ITASCA, Ill. -- March 7, 1996 -- MBf USA, Inc.
        (The Nasdaq SmallCap Stock Market: MBFA) today announced financial
        results including record revenues for the year ended December 31,
        1995.  
        


            MBf USA reported that revenues for the year ended December 31,
        1995 increased 20% to a record $43,258,125 over 1994 revenues of
        $36,008,062, primarily reflecting growth in glove sales by the
        Company's American Health Products Corporation subsidiary.
        Additionally, the continued high level of investment in marketing
        and international launch efforts for the Company's Playboy(R) brand
        condom business resulted in a substantial increase in condom sales
        in 1995. The Company recorded a net of loss for 1995 of $4,864,404
        compared to net income of $1,000,530 last year.  Of this loss,
        $4,295,608 occurred in the first half of 1995, and included a
        $1,808,757 charge related to the Company's management and business
        restructuring which was completed by June 30, 1995.  

        
            Under new management, losses declined in the second half,
        resulting in third and fourth quarter losses of $417,320 and
        $151,476, respectively.  The losses in the second half of 1995 were
        primarily due to expenses related to the expansion of the Company's
        international condom business and the lag period for the new glove
        price increases, instituted at the end of the third quarter, to take
        effect.  

        
            Loi Heng Sewn, Chairman of MBf USA, Inc.  stated, "The financial
        and business restructuring that took place in the first half of 1995
        has returned the Company to its core business and its impact is
        shown in its improved performance in the second half."  
   

     
            Edward J.  Marteka, who became President of MBf USA, Inc.  on
        May 31, 1995, said, "We were able to slash our losses significantly
        in the two quarters following the restructuring.  Our latex glove
        business which presently accounts for most of our sales remains
        strong, while at the same time the rapid shift to higher margin
        powder free gloves sales continues to improve gross margins.  The
        new glove manufacturing plant in Indonesia, which was slated to
        begin operation in the first quarter 1996 but has been delayed to
        the second quarter, should further lower production costs and
        improve margins."  
      

  
            MBf USA, Inc.  and its subsidiaries market Glovetex(R) brand and
        OEM medical examination gloves in the United States and the world-
        famous Playboy(R) brand condoms internationally.


        
        MBf USA. Inc.
                      For the Three Months Ended     For the Year Ended
                               December 31,              December 31,
                            1995         1994         1995         1994
        
        TOTAL REVENUES     $10,988,442  $10,017,544   $43,258,125
        $36,008,062
        
        INCOME (LOSS) FROM
          CONTINUING OPERATIONS
                          (151,476)    (326,581)   (4,796,672)     909,411
        INCOME (LOSS) FROM
          DISCONTINUED
           OPERATIONS
                                 0      (45,700)      (67,732)      91,119
        
        NET INCOME (LOSS)    ($151,476)   ($372,281)  ($4,864,404)
        $1,000,530
        
        NET INCOME (LOSS)
          PER SHARE              ($.06)       ($.15)(a)    ($2.00)
        $.41(a)
        
        WEIGHTED AVERAGE
          NUMBER OF COMMON
           STOCK AND COMMON
        EQUIVALENTS      2,432,462    2,458,473(a)  2,432,462    2,458,473(a)
        
        (a) Gives retroactive effect to the one-for-ten reverse split
        effected on December 18, 1995.  
        
        
        CONTACT: MBf USA, Inc.      
                 Loi Heng Sewn, Chairman       
                 Edward J. Marteka, President       
                 Stephen Tan, CFO   
                 (708) 285-9191
                     OR
                 MBf USA's INVESTOR RELATIONS COUNSEL:
                 The Equity Group Inc.
                 Terry Hosmer, (212) 836-9610
                 Linda Latman, (212) 836-9609

        


Bob Swerdling Joins Piper Jaffray
Inc.'s California Public Finance Group
        


            MINNEAPOLIS, MN -- March 7, 1996 -- Bob Swerdling, 43,
        has joined the California public finance group of Piper Jaffray Inc.
        a Minneapolis-based investment firm, as managing director.  

        
            Swerdling, who will continue to serve as the principal financial
        advisor to the Official Creditors Committee in the href="chap11.orange.html">Orange County
        bankruptcy
, will be responsible for helping grow Piper Jaffray's
        public finance business in California.  
        


            Piper Jaffray has significantly expanded its presence in
        California in recent years.  In addition to retail offices in San
        Francisco, Menlo Park and Sacramento, the Company has public finance
        offices and fixed income institutional sales and trading in San
        Francisco and Los Angeles.  
        


            Prior to joining Piper Jaffray, Swerdling was senior vice
        president for Sutro public finance in San Francisco.  Previously, he
        ran a short-term debt group for Standard & Poor's and served with
        the Department of Finance Administration for the state of New
        Mexico.  

        
            "Bob is a well-respected, top quality banker,"  said Frank
        Fairman, managing director and manager of Piper Jaffray's Public
        Finance department.  "His broad experience and proven track record
        will serve him well in his new role, and we feel fortunate to have
        him as a member of our organization."  

        
            A native of New York City, Swerdling attended the State
        University of New York, Stoneybrook, and has a masters in economics
        from the University of Chicago.  He, his wife, Glenda Tafoya, and
        their son, Samuel, reside in Oakland, Calif.  
   

     
            Piper Jaffray Companies Inc.  was founded in 1895 and has built
        a growing reputation as one of the nation's premier full-service
        investment companies.  Piper Jaffray Companies Inc.  is the parent
        company of Piper Jaffray Inc.  - an investment firm with 78 retail
        sales offices in 17 Midwest, Mountain, Southwest and Pacific Coast
        states.  Piper Jaffray also has capital markets offices in 15
        cities. Other subsidiaries include Piper Capital Management
        Incorporated - a money management company with approximately $9
        billion under management; and Piper Trust Company - a provider of
        trust services to individuals and institutions.  Piper Jaffray Inc.
        is a member of the New York Stock Exchange and other major stock
        exchanges.  For more information about Piper Jaffray Companies,
        visit our home page on the Internet at
http://www.piperjaffray.com/" target=_new>http://www.piperjaffray.com/">http://www.piperjaffray.com/

        
        CONTACT: Frank Fairman,Public Finance; 612/342-6657 / 1-800-333-6000
        



Converse announces fourth quarter and year end results

        
            NORTH READING, Mass. -- March 7, 1996 -- Converse
        Inc.  (NYSE:CVE) today announced financial results for the fourth
        quarter and fiscal year ended December 30, 1995.  
        


            Revenues for the fourth quarter were $76.8 million, compared to
        $83.8 million in the fourth quarter of 1994.  The loss from
        operations was $35.2 million, including restructuring costs of $13.2
        million, versus earnings from operations of $1.8 million last year.
        The net loss was $41.3 million, or $2.48 per share compared to net
        income of $0.2 million, or $0.01 per share for the fourth quarter of
        1994.  On a pro forma basis, the net loss for the fourth quarter
        1994 was $0.3 million, or $0.02 per share.  

        
            For the twelve month period, revenues were $407.5 million versus
        $437.3 million in 1994.  The loss from operations was $29.7 million,
        including restructuring costs of $14.2 million, compared to earnings
        from operations of $36.1 million last year.  The net loss for the
        year was $71.7 million, or $4.30 per share compared to net income of
        $17.6 million, or $1.05 per share.  On a pro forma basis, the net
        earnings for fiscal 1994 were $16.0 million, or $0.96 per share.  
   

     
            The Company stated that fourth quarter financial results were
        impacted by an isolated manufacturing defect in the Company's RAW
        Energy and RAW Power basketball shoes.  The Company estimates that
        the revenue loss associated with this totaled $15 million.  Results
        for 1995 include restructuring expenses of $14.2 million and a
        pretax loss of $52.2 million related to the Company's investment in
        Apex One, Inc.  
      

  
            Financial performance for the year reflects a decrease of 30.2%
        in U.S.  sales, which was partially offset by a 43.1% increase in
        international revenues.  The Company recorded substantial growth in
        its children's and cross-training categories, which were offset by
        declines in the basketball and athleisure segments.  
        


            The decline in gross profits for fiscal 1995 is primarily
        attributable to weak U.S.  sell-through of basketball and athleisure
        products which resulted in lower selling prices; reduced
        manufacturing utilization and efficiencies; and higher distribution
        expenses related to the conversion of international distributors
        from independent to Company-owned status.  
        


            Converse's backlog of firm customer orders decreased to $131.9
        million at December 30, 1995 from $174.4 million at the end of 1994,
        with domestic business showing continued weakness.  Order activity
        has recently begun to rebound on the strength of the Company's back
        to school products and as a result, the Company's backlog has
        improved by 14% since the beginning of the year.  In addition,
        orders for back-to-school shipments beginning in the third quarter
        are up substantially over a year ago.  

        
            Gib Ford, Chairman and Chief Executive Officer, said, "Although
        we are disappointed with our financial performance for the year, we
        also implemented several positive changes and accomplished important
        objectives for a return to profitability.  The restructuring
        expenses incurred in 1995 from our recently announced strategic
        restructuring and other measures have successfully reduced our
        overhead expenses by approximately $30 million on an annualized
        basis.  In addition to streamlining our operating structure, we are
        utilizing our heritage in the footwear business to improve the
        competitive positioning of the Converse brand on a global basis; to
        develop more focused product lines, and to maximize our spending
        dollars for a more efficient use of both management and financial
        resources.  We continue to maintain a strong working relationship
        with our financing sources and are in compliance with all the terms
        and conditions of our bank agreement."

        
            Mickey Bell, President, commented, "As part of our
        restructuring, we developed a single brand marketing strategy which
        allows us to capitalize on the highly recognized Converse All Star
        trademark.  Using this approach, we created an exciting new product,
        the All Star 2000, which incorporates our traditional All Star patch
        into a performance shoe.  We believe this product, combined with
        other new developments such as our new Cons Blue footwear and
        apparel line which has been very well-received, will provide
        Converse with a unique opportunity and enhanced competitive position
        in the marketplace."  
   

     
            "As evidenced by our incoming domestic orders for the third
        quarter we have started 1996 with a very positive response to our
        back-to-school product lines, particularly the All Star 2000, and
        recently concluded a successful Atlanta Super Show.  We are also
        pleased to report that our international business continues to
        demonstrate solid growth with strong increases in 1995 sales,
        particularly in Europe and the Pacific region.  In addition, we're
        very encouraged by the success of our retail store operation, where
        sales increased 15.7% in 1995.  We believe that the restructuring
        program in place, coupled with the proven strength of our global
        brand, will result in a more efficient and profitable Company going
        forward,"  Mr.  Ford concluded.  

        
            Any statements set forth above which are not historical facts
        are forward looking statements that involve certain risks and
        uncertainties that could cause actual results to differ materially
        from those in the forward looking statements.  Potential risks and
        uncertainties include such factors as the financial strength and
        competitive pricing environment of the footwear and apparel
        industry, product demand, market acceptance, the success of planned
        advertising, marketing and promotional campaigns, and other risks
        identified in documents filed by the Company with the Securities and
        Exchange Commission.


        
                             CONVERSE INC. AND SUBSIDIARIES
                       CONSOLIDATED STATEMENTS OF OPERATIONS
                 (Dollars in thousands, except per share amounts)
                                    (Unaudited)
        
                               Three Months Ended    Fiscal Year Ended
        
                               12/30/95  12/31/94   12/30/95   12/31/94   
        
        Net Sales                   $76,842   $83,800   $407,483   $437,307
        Cost of sales                68,128    58,849    293,948    286,555
        
        Gross profit                  8,714    24,951    113,535    150,752
        
        Selling, general and
          administrative expenses    35,746    28,944    146,332    128,876
        Royalty income                5,017     5,849     17,257     14,212
        Restructuring expense        13,182     -         14,182
        -        
         Earnings (loss) from
           operations               (35,197)    1,856    (29,722)    36,088
        
          
        Loss on investment in unconsolidated
          subsidiary                 10,561      -        52,160
        -      
        Interest expense              4,525     2,202     14,043      7,423
        
        Other income (expense), net  (4,521)      382     (3,966)      (504)
        
        Earnings (loss) before
         income tax                 (54,804)       36    (99,891)    28,161
        
          
        Income tax expense
         (benefit)                  (13,484)     (163)   (28,144)    10,565
        
        Net earnings (loss)       $ (41,320) $    199   $(71,747)   $17,596
        
        Net earnings (loss)
         per share                $   (2.48) $   0.01  $   (4.30)   $  1.05
        
          
        Net earnings (loss)
         per share (pro forma)              $   (0.03)             $   0.96
        Weighted average number of
          common shares             16,692     16,692    16,692      16,692
         
             
                             CONVERSE INC. AND SUBSIDIARIES
                              CONSOLIDATED BALANCE SHEETS
                    (Dollars in thousands, except per share amounts)
                                      (Unaudited)
        
                                        December 30, 1995     December 31, 1994
          
          Assets
        Current assets:
          Cash and cash equivalents             $   2,738            $
        4,992       
          Restricted cash                             443
        --
          Receivables, less allowances of
           $2,237 and $1,553 respectively          61,688
        68,921     
          Inventories                              81,903
        99,482       
          Prepaid expenses and
           other current assets                    21,059
        11,540
          Refundable Income Taxes
        
                                                   11,377
        ---        
        Total current assets                      179,208
        184,935    
        
        Asset held for sale                         3,066
        --
        Net property, plant and equipment          15,521
        20,349    
        Other assets                               26,712
        18,442    
        Total Assets                             $224,507
        $223,726
        
           Liabilities and Stockholders' Equity
        Current liabilities:
          Short-term debt                          13,906
        5,813    
          Current maturities of long-term debt      6,324
        --
          Accounts payable                         34,208
        30,540    
          Accrued expenses                         33,295
        15,887
          Income taxes payable                      1,795
        1,573       
        Total current liabilities                  89,528
        53,813
          
        Long-term debt, less current maturities   112,824
        77,087     
        Current assets in excess of
         reorganization value                      34,454
        36,532     
        Deferred postretirement benefits
         other than pensions                       10,386
        11,307     
        Stockholders' equity:
          Common stock $1.00 stated value,
           50,000,000 shares
        authorized, 16,692,156 shares
        issued and outstanding at December 31,
        1995 and December 31, 1994             16,692               16,692
          Preferred stock, no par value,
           authorized 10,000,000 shares
           none issued and outstanding
        -                    -   
          Additional paid in capital                3,528
        -
          Retained earnings (deficit)             (41,830)
        29,917       
          Foreign currency translation adjustment  (1,075)
        (1,622)     
        Total stockholders' equity (deficiency)   (22,685)
        44,987     
        Total liabilities &
          stockholders' equity                   $224,507
        $223,726

        
        CONTACT: Converse Inc.
                 Donald J. Camacho
                 Chief Financial Officer
                 508/664-1100
                        OR
                 Robert Jones/Christine DiSanto
                 Morgen-Walke Associates
                 212/850-5600
                        OR
                 Media Contact: Jennifer Murray
                 Director of Corporate Communications
                 508/664-1100
                        OR
                 Michael McMullen
                 Morgen-Walke Associates
                 212/850-5600




PANNEKOEKEN ANNOUNCES REOPENING OF ALL STORES AND FILING FOR PLAN OF
REGORANIZATION
        


            MINNEAPOLIS, March 7, 1996 -
Pannekoeken Restaurants

        announced today that it will be reopening two stores seized by the
        Minnesota Department of Revenue yesterday following meetings with
        the Commissioner of Revenue today.  The affected stores located in
        Eden Prairie and Roseville will open for regular business at 7:00
        a.m. Friday morning.  In addition, Pannekoeken announced that its
        operations at all of its other company-owned locations will continue
        normal operations.
        


            Because of the action taken on March 6 by the state taxing
        authorities yesterday in seizing cash from the Pannekoeken
        Restaurants and their bank accounts, Pannekoeken was forced today to
        voluntarily file for reorganization under Chapter 11 of the U.S.
        Bankruptcy Code. The Chapter 11 filing will allow Pannekoeken to
        continue normal operations at all sites as it seeks to solve its
        financial problems.

        
            Todd Novaczyk, President of Pannekoeken, stated that "we are
        gratified that within less than 24 hours we were able to prevail in
        our belief that it is in the best interests of the taxpayers, our
        shareholders, creditors, suppliers, and employees to permit the
        Pannekoeken chain to operate at full capacity during this
        reorganization effort."
   

     
            None of the companies five franchised restaurants are affected
        by or are party to the bankruptcy proceeding filing and the
        operations at all five of those facilities were not affected by the
        State of Minnesota's activities yesterday.
      

  
            Mr. Novaczyk further stated that he is "confident that the
        reorganization process will enable Pannekoeken to emerge on a solid
        financial base so that its 650 valued employees can continue to
        serve their loyal customers as Pannekoeken has over the last 20
        years of operations."

        
            Pannekoeken has retained its regular outside corporate counsel,
        Robins, Kaplan, Miller & Ciresi, to represent it in the bankruptcy
        proceeding.
   


        CONTACT:  Todd Novaczyk, President, Pannekoeken, 612-944-8090,
        Ext. 16
        



ARCA REPORTS FOURTH QUARTER AND FULL-YEAR 1995 RESULTS

        
            MINNEAPOLIS, March 7, 1996 - Due primarily to an $800,000
        ($1.3 million pre-tax) restructuring charge related to loss on
        impaired assets and other non-cash items that supported its electric
        utility business, Appliance Recycling Centers of America, Inc.
        (Nasdaq-NNM: ARCI) today reported a fourth quarter 1995 net loss of
        $1,045,000 or $.25 per share, compared to net income of $833,000 or
        $.20 per share in the year-earlier quarter.  Net revenues in the
        fourth quarter declined to $4,021,000, compared to $7,106,000 in the
        year- earlier period.

        
            For 1995, the Company reported a net loss of $943,000 or $.22
        per share, compared to earnings of $877,000 or $.20 per share in
        1994.  Net revenues for the current year decreased to $16,241,000
        from $20,327,000 in 1994.  The Company's net loss from operations
        for the year, excluding the one-time restructuring charge, amounted
        to $.03 per share.
   

     
            Edward R. (Jack) Cameron, president and chief executive officer,
        said the fourth quarter restructuring charge was taken after it
        became fully apparent recently that the outlook for utility-
        sponsored demand- side energy conservation programs was becoming
        increasingly negative. The Company had expected some rebound in this
        market over the next few years with the clarification of regulatory
        uncertainties.  However, the decision to take the charge at this
        time was prompted by clear indications from growing numbers of
        utilities that funding for demand- side energy conservation programs
        in the foreseeable future is increasingly doubtful.  As a result,
        the Company will focus its resources and management attention
        primarily on its emerging Encore appliance reuse business going
        forward.

        
            The Company's reduced level of utility business resulted in the
        year's lower net revenues in comparison to 1994.  The Company said
        its near-breakeven operating results before the one-time
        restructuring charge are encouraging in view of this revenue decline
        and heavy start- up investments in the new Encore business.
   

     
            The Company anticipates lower revenues and a pre-tax loss in the
        range of $.33 to $.35 per share in the first quarter of 1996,
        reflecting reduced volumes of utility business, high Encore
        conversion expenses and normal seasonal factors that affect
        retailing during the winter months following the holiday season.
        Cameron said, "As we've previously stated, the Company plans to
        absorb the majority of the expenses related to converting our
        recycling facilities to support appliance reconditioning and
        retailing during the first quarter of 1996.  We fully expect lower
        losses in the second quarter, with a return to profitability in the
        second half of the year.  Our Encore store openings are proceeding
        on plan and store sales are ramping up in line with our
        expectations."  The Company expects that approximately 22 stores
        will be open by the end of March and 35 to 45 stores will be in
        operation by year-end.

        
            Statements regarding the Company's anticipated results for 1996
        are forward-looking and therefore involve such risks and
        uncertainties as the timely opening of new Encore stores, the speed
        in which stores attain profitability, higher than planned Encore-
        related expenses and other risks detailed from time to time in the
        Company's SEC reports, including the report on Form 10-Q for the
        quarter ended September 30, 1995.

        
            ARCA, the nation's largest recycler of major household
        appliances, provides an integrated range of collection, reuse and
        recycling services.
   


        
                  APPLIANCE RECYCLING CENTERS OF AMERICA, INC.
                        CONSOLIDATED STATEMENT OF INCOME
                     TWELVE MONTHS ENDED DECEMBER 30, 1995
        
                                       Three Months Ended
                                     12/30/95      12/31/94
        Net Revenues               $4,021,000    $7,106,000
        Cost of Revenues           $3,037,000    $3,590,000
        Gross Profit                 $984,000    $3,516,000
        Selling, General, and
         Administrative Expenses   $1,377,000    $2,019,000
        Loss on Impaired Assets
         and Non-Recurring Charges $1,316,000            --
        Operating Income
         (Loss)                   ($1,709,000)   $1,497,000
        Other Income (Expense)        $22,000       $66,000
        Interest Income               $70,000       $25,000
        Interest Expense             ($92,000)    ($126,000)
        Income (Loss) Before Provision
         for Income Taxes         ($1,709,000)  ($1,462,000)
        Provision For (Benefit of)
         Income Taxes               ($664,000)     $629,000
        Net Income (Loss)         ($1,045,000)     $833,000
        Earnings (Loss) per Share       ($.25)        $0.20
         Weighted Average Number
          of Shares                 4,227,000     4,250,000
        
                                      Twelve Months Ended
                                     12/30/95      12/31/94
        Net Revenues              $16,241,000   $20,327,000
        Cost of Revenues          $10,611,000   $11,967,000
        Gross Profit               $5,630,000    $8,360,000
        Selling, General, and
         Administrative Expenses   $5,852,000    $6,607,000
        Loss on Impaired Assets
         and Non-Recurring Charges $1,316,000            --
        Operating Income
         (Loss)                   ($1,538,000)   $1,753,000
        Other Income (Expense)        $65,000       $66,000
        Interest Income              $230,000       $43,000
        Interest Expense            ($290,000)    ($320,000)
        Income (Loss) Before Provision
         for Income Taxes         ($1,533,000)  ($1,542,000)
        Provision For (Benefit of)
         Income Taxes               ($590,000)    ($665,000)
        Net Income (Loss)           ($943,000)     $877,000
        Earnings (Loss) per Share      ($0.22)        $0.20
         Weighted Average Number
          of Shares                 4,210,000     4,282,000


        CONTACT:  Kent S. McCoy of ARCA, 612-930-9000