/raid1/www/Hosts/bankrupt/TCR_Public/960411.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For - April 11, 1996



  1. SOLO SERVE CORPORATION REPORTS FINANCIAL RESULTS
  2. MID AM, INC.'S FIRST QUARTER INCOME RESULTS
  3. B.U.M. INTERNATIONAL, INC. REORGANIZES AND LIQUIDATES RETAIL OUTLET BUSINESS
  4. CLAIRE'S STORES, INC. ACQUIRES ASSETS OF ACCESSORY PLACE, INC.
  5. JAY JACOBS LAUNCHES TARGETED EXPANSION
  6. Warner Insurance Services, Inc. announces results
  7. HAYES REPORTS BEST QUARTER EVER




SOLO SERVE CORPORATION REPORTS MARCH SALES, FOURTH QUARTER AND FISCAL YEAR OPERATING RESULTS

        
            SAN ANTONIO, Texas -- April 11, 1996 -- href="chap11.solo.html">Solo Serve
        Corporation
today reported sales of $9.5 million for the five
week
        period ended April 6, 1996, on the 29 Solo Serve stores continuing
        in operation, all of which were in operation in March 1995.  
        


            The Company's comparable store sales were approximately the same
        during the five week period ended April 6, 1996, as compared with
        the same period in 1995.  Total store sales for the five weeks ended
        April 1, 1995, when the Company operated 30 Solo Serve stores, were
        $9.3 million, of which $268,000 was associated with a store that is
        now closed.  The 1996 sales include the Easter selling season which
        was in April in 1995.  

        
            The Company's year-to-date sales of $15.7 million for the nine
        weeks ended April 6, 1996 represents a decrease of approximately 1
        percent from total store sales of $15.9 million for the nine weeks
        ended April 1, 1995.  The Company's year-to-date comparable store
        sales decreased 2.5 percent.  
   

     
            Separately, the Company also reported a net loss for the fourth
        quarter ended Feb. 3, 1996 of $1.5 million, or $.36 per share,
        compared to net income of $18,000, or $.006 per share, for the same
        period last year.  The net loss for the 53 weeks ended Feb.  3, 1996
        was $4.8 million, or $1.34 per share, compared to a net loss of
        $15.5 million, or $5.45 per share, for the 52 weeks ended Jan.  28,
        1995.  The fiscal year ended Feb. 3, 1996 includes a $1.8 million
        charge for the reorganization costs related to the Company's filing
        for protection under Chapter 11 of the Bankruptcy code on July 21,
        1994 and an extraordinary gain (net of tax benefits of $1.4 million)
        on discharge of debt of $2.8 million.  

        
            According to Timothy Grady, Chief Operating Officer, "For 1996,
        we have developed a business strategy which allows for improved
        financial results given recent sales trends.  Our objective is to
        target an achievable sales volume with higher gross margins.  The
        key elements of our strategy are lower average store inventories,
        quicker price reduction on slower moving merchandise, constant flow
        of fresh merchandise, more focused promotional pricing, and a
        significantly reduced cost structure.  The Company has implemented
        programs designed to achieve $3 million of cost reductions on an
        annualized basis.  The reductions principally result from programs
        designed to increase labor productivity and reduce advertising
        costs.  We are also evaluating additional non-employee expense
        reductions in a variety of areas.  We are pleased with our progress
        to date in lowering costs and increasing our gross margin as a
        percentage of sales."  

        
            Solo Serve Corporation operates a chain of off-price retail
        stores offering a wide selection of name brand and other merchandise
        at prices substantially below traditional department and specialty
        stores.  The Company currently has 29 Solo Serve stores in Texas,
        Louisiana and Alabama.  

        
         
                              SOLO SERVE CORPORATION
                             CONDENSED BALANCE SHEETS
                                   (unaudited)
        
                        Assets                January 28,     February 3,
                                                 1995            1996
                                                    (in thousands)
                                              ---------------------------
        Current Assets:
          Cash and time deposits                   $ 17,084        $    772
          Inventory                                  14,949          14,210
          Other current assets                        2,455           2,274
                                              ---------------------------
         Total current assets                    34,488          17,256
        Property and equipment, net                  18,011          15,634
         
        Goodwill and service marks, net                 530             410
         
        Receivables from factors                      1,663              --
                                              ---------------------------
        
         Total Assets                          $ 54,692        $ 33,300
                                              
         
        Liabilities and Stockholders' Equity
         
        Liabilities not subject to compromise:
         
        Current Liabilities:
          Current portion of long-term debt        $     --        $    684
          Accounts payable and accrued expenses       8,653           6,637
                                              ---------------------------
         Total current liabilities                8,653           7,321
         
          Long-term debt                                  5          15,136
         
          Post-retirement benefit obligation            501             565
         
        Liabilities subject to compromise            33,385             461
                                              ---------------------------
         
         Total Liabilities                       42,544          23,483
                                              ---------------------------
         
         Total Stockholders' Equity              12,148           9,817
                                              ---------------------------
         Total Liabilities and
          Stockholders' Equity                 $ 54,692        $ 33,300
                                              
        
                              SOLO SERVE CORPORATION
                        CONDENSED STATEMENTS OF OPERATIONS
                                   (unaudited)
         
                               Quarter Ended               Year Ended
                          (13 weeks)  (14 weeks)     (52 weeks)  (53 weeks)
                           Jan. 28,     Feb. 3,       Jan. 28,     Feb. 3,
                            1995         1996          1995         1996
                                (in thousands except per share amounts)
                         -------------------------------------------------
        Net Sales            $   34,659  $   32,126     $  138,925  $
        109,823
        Cost of goods sold
         (including buying
          and distribution,
          excluding
          depreciation
          shown below)           25,115      25,172        100,687
        83,474
                         -------------------------------------------------
         
        Gross Profit              9,544       6,954         38,238
        26,349
         
        Selling, general,
         and administrative
         expenses                 8,382       7,375         39,013
        29,620
        Depreciation and
         amortization expenses      764         653          3,748
        2,815
                         -------------------------------------------------
        Operating (loss)            398      (1,074)        (4,523)
        (6,086)
         
        Interest expense            166         435          1,090
        1,129
                         -------------------------------------------------
        Income (Loss) before
         reorganization items,
         taxes and extraordinary
         items                      232      (1,509)        (5,613)
        (7,215)
         
        Reorganization items        214          --          6,262
        1,787
                         -------------------------------------------------
        Income (Loss) before
         income taxes and
         extraordinary item          18      (1,509)       (11,875)
        (9,002)
         
        (Benefit from) Provision
         for income taxes            --          --          3,661
        (1,418)
                         -------------------------------------------------
        Net Income (Loss) before
         extraordinary item          18      (1,509)       (15,536)
        (7,584)
        
        Extraordinary item:
         gain on discharge
         of debt
        --          --             --       2,753
                         -------------------------------------------------
        
        Net (loss)           $       18  $   (1,509)    $  (15,536) $
        (4,831)
                         
        Net Income (Loss) per
         common share before
         extraordinary item  $       --  $     (.36)    $    (5.45) $
        (2.10)
        
        Extraordinary gain
         per common share            --          --             --  $
        .76
                         -------------------------------------------------
        Net (loss) per
         common share        $       --  $     (.36)    $    (5.45) $
        (1.34)
                         
        Weighted average
         common shares
         outstanding          2,843,334   4,245,015      2,849,867
        3,604,853
                         

        CONTACT: Timothy L. Grady
                 Solo Serve Corporation, 210/662-6262.


MID AM, INC.'S FIRST QUARTER INCOME
RESULTS

        
            BOWLING GREEN, Ohio, April 11, 1996 - Mid Am, Inc.
        (Nasdaq: MIAM, MIAMP) today announced record earnings of $6.6
        million for the first quarter of 1996, an increase of approximately
        $800,000 or 13.8% from $5.8 million earned in the first quarter of
        1995. Earnings per share were $.31 ($.30 fully diluted), compared to
        $.27 ($.26 fully diluted), for the same period in the prior year.
        


            First quarter earnings represent a return on common
        shareholders' equity of 15.06% and a return on average assets of
        1.23%.  This compares to ratios of 13.99% and 1.13%, respectively,
        in the prior year's first quarter.  The Company's strong earnings
        performance in the first quarter of 1996 was largely attributed to
        its mortgage banking activities generating gains in excess of $2
        million from sales of loans, compared to $600,000 in the first
        quarter of 1995.  Mortgage loan originations increased in 1996 due
        primarily to the lower interest rate environment. Mortgage loan
        sales in the first quarter of 1996 amounted to approximately $140
        million compared to $22 million for the same period in the prior
        year.

        
            Compared to the fourth quarter of 1995, first quarter net income
        increased to $6.6 million from $6.2 million.  The increase was
        primarily due to improved performance in mortgage banking, brokerage
        commissions and collection agency fees.
   

     
            At March 31, 1996, the ratios of non-accrual loans to total
        loans and non-performing loans to total loans were .56% and .64%,
        respectively.  The Company's ratios of allowance for credit losses
        to non-performing assets was 146%, versus 140% at the end of the
        prior quarter, and the Company's allowance for credit losses to non-
        performing loans was 159% at the end of the first quarter.  Non-
        performing assets were .69% of total loans plus other real estate
        owned.

        
            The Company, through its affiliates, owns approximately $6.2
        million of lease receivables representing approximately 1,000 leases
        which were purchased from and are being serviced by The href="chap11.bennett.html">Bennett
        Funding Group, Inc.
, a Syracuse-based company which recently
filed
        for bankruptcy protection.  The Company has taken steps to remove
        its leases from the bankruptcy estate and is pursuing all other
        remedies available to it. While the timeliness of future payments
        and the ultimate collectibility of the leases remains uncertain, the
        Company does not currently believe it will be subject to a material
        loss.
   

     
            Mid Am, Inc. is the ninth largest bank holding company in Ohio
        and is headquartered in Bowling Green, Ohio.  The Company's
        affiliates include Mid American National Bank and Trust Company,
        Toledo; First National Bank Northwest Ohio, Bryan; American
        Community Bank, N.A., Lima; AmeriFirst Bank, N.A., Xenia and
        Cincinnati; Adrian State Bank, Adrian, Michigan; International
        Credit Service, Toledo and CCB Services, St. Petersburg, Florida;
        MFI Investments Corp., Bryan; and Mid Am Information Services, Inc.,
        Bowling Green, the Company's technology and operations affiliate.
        On March 19, 1996, Mid Am, Inc. announced the formation of Mid Am
        Credit Corp., a full-service equipment leasing and financing unit.
        The Company will concentrate primarily on medical equipment
        financing on a nationwide basis.  Mid Am Credit Corp., as a wholly-
        owned subsidiary of Mid Am, Inc., will be headquartered in Columbus,
        Ohio, and will maintain a satellite office in Los Angeles,
        California.


        
        MID AM, INC. STATEMENT OF EARNINGS - (unaudited)
        
                                         For Three Months Ended
                                                March 31,       Percent
        (Dollars in thousands)              1996         1995    Change
        
        Interest income                   $40,939      $38,579     6.1
        Interest expense                   20,408       18,066    13.0
        
        Net interest income                20,531       20,513     0.1
        Provision for credit losses           559          410    36.3
        
        Net interest income after
          provision for credit losses      19,972       20,103    (0.7)
        
        Non-interest income
        Trust department                      368          336     9.5
        Service charges on
          deposit accounts                  1,628        1,459    11.6
        Mortgage banking                    2,842        1,493    90.4
        Brokerage commissions               3,500        1,753    99.7
        Collection agency fees              1,014          884    14.7
        Net gains on sales
          of securities                       325           34   855.9
        Other income                        1,877        1,531    22.6
        Total non-interest income          11,554        7,490    54.3
        
        Non-interest expense
        Salaries and employee benefits     10,042        8,759    14.6
        Net occupancy expense               1,291        1,271     1.6
        Equipment expense                   1,903        1,755     8.4
        Other expenses                      8,525        7,327    16.4
        Total non-interest expense         21,761       19,112    13.9
        
        Income before income taxes          9,765        8,481    15.1
        Applicable income taxes             3,158        2,673    18.1
        
        Net income                        $ 6,607      $ 5,808    13.8
        
        Net income available to
          common shareholders             $ 5,968      $ 5,080    17.5
        
        MID AM, INC.
        FINANCIAL SUMMARY - (unaudited)
        
                                         For Three Months Ended
        (Dollars in thousands,                  March 31,       Percent
          except per share data)            1996         1995    Change
        
        Earnings per common share:
          Primary                           $0.31        $0.27    14.8
          Fully diluted                      0.30         0.26    15.4
        
        Cash dividend paid on
          common share                      $0.16        $0.15     6.7
        
        Shares outstanding:
          Average primary              19,126,000   19,131,000     ---
          Average fully diluted        22,305,000   22,684,000     ---
        
        PERFORMANCE RATIOS
        
        Net interest spread - FTE            3.62         3.90     ---
        Net interest margin - FTE            4.19         4.41     ---
        Return on average common
          shareholders' equity              15.06        13.99     ---
        Return on average total assets       1.23         1.13     ---
        
        Average Balances for Three
          Months Ended March 31
        Total assets                    2,167,759    2,076,152     4.4
        Loans - net of unearned income  1,476,771    1,447,093     2.1
        Loans held for sale                19,868        8,690   128.6
        Total deposits                  1,813,709    1,721,464     5.4
        Common shareholders' equity       159,371      147,256     8.2
        Total shareholders' equity        194,675      187,302     3.9


        CONTACT:  Dennis L. Nemec, Executive Vice President, Chief
        Financial Officer, of Mid Am, Inc., 419-373-6462



B.U.M. INTERNATIONAL, INC. REORGANIZES AND LIQUIDATES RETAIL OUTLET BUSINESS
        


            RANCHO DOMINGUEZ, Calif., April 11, 1996 - href="chap11.bum.html">B.U.M.
        International Inc.
(Nasdaq: BUMM) filed for protection under
Chapter
        11 of the Bankruptcy Code in Los Angeles, CA, on April 10, 1996.
        B.U.M. International, Inc. intends to complete a restructuring
        program and has retained Sandford L. Frey, Esq. and Robyn Sokol,
        Esq. of the Los Angeles office of Epstein, Becker & Green as its
        bankruptcy attorneys.
        


            Although the Company has been unable to finalize its financial
        statements for the fiscal year ended December 31, 1995 and is
        therefore not current in its SEC reporting, the net loss for fiscal
        1995 is expected to be between $9 and $16 million.  B.U.M.'s
        operations for first quarter 1996 are expected to show further net
        losses from operations in excess of $1.7 million.

        
            B.U.M. International, Inc.'s restructuring plans include the
        orderly liquidation of its 41 retail outlet stores.  The Company
        plans to move forward as a licensing and marketing company.
   


        CONTACT:  Troy Wiseman of B.U.M. International, 847-490-6515



CLAIRE'S STORES, INC. ACQUIRES
ASSETS OF ACCESSORY PLACE, INC.; 31 STORES IN PRIME RETAIL LOCATIONS
        


            PEMBROKE PINES, Fla., April 11, 1996 - Claire's Stores,
        Inc. (NYSE: CLE) reported today it has purchased the assets of
        Accessory Place, Inc., and will
take over 31 stores.  The price of
        the all-cash transaction was not reported.
        


            Accessory Place, which had filed bankruptcy proceedings,
        operated the stores primarily in the eastern half of the United
        States.

        
            Rowland Schaefer, Chairman and Chief Executive of Claire's
        Stores, said the 31 Accessory Place stores will be refurbished and
        renamed Claire's.
   

     
            "These new stores will bring the total number of our stores in
        North America, the Caribbean, Japan and the United Kingdom to more
        than 1500," Mr. Schaefer said.  "The locations are excellent and
        they fit perfectly into our aggressive expansion program."

        
            Claire's Stores, Inc., the nation's premier retailer
        specializing in one-stop shopping for women's fashion accessories,
        currently owns and operates stores in 49 states, the Caribbean,
        Canada, Japan and the United Kingdom primarily under the names
        "Claire's," "Claire's Boutiques," "Topkapi," "Dara Michelle," and
        "Claire's Accessories."
   


        CONTACT:  Glenn Canary, Director of Investor Relations, Claire's
        Stores, Inc., 954-433-3900


        
JAY JACOBS LAUNCHES TARGETED EXPANSION WITH FIVE STORES IN
        INDIANAPOLIS, COMPANY'S FIRST NEW MARKET IN FIVE YEARS


            SEATTLE, April 11, 1996 - Rex Steffey, President and CEO
        of Jay Jacobs, Inc. (Nasdaq: JAYJ), a
Seattle-based retailer of
        young men's and women's fashion apparel, announced today the
        retailer's entry into the Indiana market with five locations in the
        greater Indianapolis area. This is the company's first new market
        since 1991, and its first major expansion effort since emerging from
        Chapter 11 protection in November 1995.  Indianapolis represents the
        first market in Jay Jacobs' strategic plan to expand nationwide over
        the next several years by adding stores in core markets and
        expanding to additional markets.  In addition to these five stores,
        the company plans to open several additional locations in the
        Indiana market in fiscal 1996.

        
            "Based on the success of our recent store openings in existing
        markets, we are committed to additional expansion and have
        identified several new markets, beginning with five stores in the
        Indianapolis area, as a key component of our post-emergence business
        plan," said Steffey.  "Introducing Jay Jacobs to Indianapolis is
        like coming home - to the city where I built my retail career, and a
        market I know very well."
   

     
            According to Steffey, Jay Jacobs provides an exciting new
        shopping alternative for contemporary young men and women in the
        Indianapolis area, and is a shopping destination where men and women
        can shop together.  Local stores range in size from 4,000 to 6,500
        square feet and will employ up to ten full and part-time associates
        per store.  The new stores will all be within a one hour drive of
        Indianapolis in the following locations:


            Four of these five locations are owned or operated by Simon
        Properties, which is based in Indianapolis.

        
             "We are extremely pleased with the performance of our two
        Indianapolis area locations which opened in late March, and are
        anticipating strong results from the remaining three stores," said
        Bill Lawrence, Chief Financial Officer.  "As an Indianapolis native
        and 20-year retail veteran, I am confident that this will be an
        excellent new market for Jay Jacobs."
   

     
            The Company is planning an official grand opening for the new
        market at its Greenwood Mall location on April 26, 1996 at 10:00 am.
      

  
            Steffey and Lawrence both joined Jay Jacobs after leading the
        turnaround efforts of Paul Harris, where they enabled the
        Indianapolis retailer to emerge from Chapter 11 protection in
        September 1992.  The management team duplicated this success at Jay
        Jacobs by refocusing the merchandising strategy to appeal to a
        broader customer base involving young professionals with a
        contemporary focus, and improving profitability through increased
        private label development and a key item strategy.

        
            Seattle-based Jay Jacobs, Inc. carries contemporary merchandise
        for young men and women in its 136 apparel stores located primarily
        in regional shopping malls in 21 states.
   


        CONTACT:  Carreen Winters of MWW/Strategic Communications, Inc.,
        201-507-9500, or e-mail, cwintersmww.com



Warner Insurance Services, Inc. announces results for year
ended December 31, 1995
        


            FAIR LAWN, N.J. -- April 11, 1996 -- Warner
        Insurance Services, Inc. (NASD OTC Bulletin Board - WISI) today
        announced revenues and net loss for the year ended December 31,
        1995.
        


            On March 4, 1996, Warner announced a series of agreements
        relating to its former Insurance Services Division ("ISD") which
        resulted in the settlement and dismissal of lawsuits with certain
        affiliates of The Robert Plan Corporation and the release of Warner
        from continuing obligations under certain contracts for the
        provision of insurance services to ISD customers.  As part of the
        restructuring, Warner transferred a predominant part of its ISD
        assets to MDA Services, Inc., a subsidiary of The Robert Plan
        Corporation, which has succeeded Warner as the servicing processor
        for the ISD customers.  As a result, effective March 1, 1996, Warner
        discontinued providing insurance processing services to the
        automobile insurance industry and has restated its prior years'
        financial statements to reflect those activities as discontinued
        operations.  

        
            The net (loss) for the years ended December 31, 1995 and 1994
        was ($11,401,835) ($1.33 per share) and ($14,220,082) ($1.60 per
        share), respectively.  With the discontinuance of ISD operations,
        Warner's continuing business is providing software products for the
        property/casualty and health care insurance industries through its
        wholly-owned subsidiary COVER-ALL Systems, Inc.  ("COVER-ALL").
        COVER-ALL revenues for the year ended December 31, 1995 were
        $4,118,754 compared with $1,926,822 for the year ended December 31,
        1994.  (Loss) from continuing operations for the years ended
        December 31, 1995 and 1994 was ($3,544,090) ($.41 per share) and
        ($7,466,445) ($.84 per share), respectively.  

        
            COVER-ALL revenues in the quarters ended December 31, 1995 and
        1994 were $1,004,156 and $658,425, respectively.  (Loss) from
        continuing operations in the quarters ended December 31, 1995 and
        1994 were ($717,580) ($.08 per share) and ($3,359,337) ($.38 per
        share), respectively.  
   

     
            As announced on April 3, 1996, the Company has entered into a
        series of transactions with Software Investments Limited ("SIL") and
        Care Corporation Limited ("Care") whereby Warner (a) sold to SIL for
        $3,022,391 (i) 1,412,758 shares of Warner Common Stock for $2.00 per
        share and (ii) five-year warrants to purchase an aggregate of
        196,875 shares of Warner Common Stock exercisable at $2.00 per share
        for $1.00 per warrant ($196,875) and (b) assigned to SIL Warner's
        rights to repurchase 50 percent of the Warner Common Stock
        (1,628,100 shares) and Warrants (to purchase 776,562 shares of
        Warner Common Stock) that Warner issued in connection with the
        transfer and discontinuance of its ISD business that was announced
        on March 4, 1996.  SIL has agreed to exercise the 776,562 warrants
        and pay to Warner an additional $1,552,124 ($2.00 per share) which
        proceeds the Company anticipates receiving by the middle of May
        1996.  The aforementioned proceeds of $3,022,391 and $1,553,124 will
        be used for working capital purposes.  In addition, Warner was
        granted by Care the exclusive license for the Care software systems
        for use in the workers' compensation and group health claims
        administration markets in Canada, Mexico and Central and South
        America.  In exchange for this license, Warner issued to Care
        2,500,000 shares of Warner Common Stock, which if during the next
        three years this license does not provide $5,000,000 of revenues or
        more, Warner can repurchase portions of the shares at $.01 per share
        based on the level of actual revenues achieved.  

        
            The effect of the agreements for the transfer and discontinuance
        of ISD and the sale of Warner Common Stock and Warrants to SIL is to
        significantly improve Warner's balance sheet by moving Warner from a
        negative net worth to a positive net worth.  In addition, Warner has
        ceased incurring the continuing losses of ISD and has settled its
        two significant lawsuits.  Warner's independent auditors' report in
        connection with Warner's consolidated financial statements which for
        the year ended December 31, 1994 contained an explanatory paragraph
        regarding going concern uncertainty with respect to litigations will
        now be unqualified for the years ended December 31, 1995 and 1994.
        Alfred J. Moccia, President and Chief Executive Officer of Warner,
        stated that "now that the Company's financial position has
        substantially improved, it can focus on marketing and enhancing its
        software products for the property/casualty and health care
        insurance industries.  The combination of the COVER-ALL TAS 2000
        technology and the Care products will offer an attractive solution
        to the administrative processing needs in the international
        marketplace."  

        
            COVER-ALL is a provider of state-of-the-art computer products
        for the property/casualty insurance industry specializing in
        strategic insurance software solutions and development tools for
        rating, coding and issuing policies, as well as administering client
        claims, direct billing, agency billing, client billing, agencies,
        general ledger, and statistical and financial reporting utilizing
        the latest client-server, relational database technology.  COVER-ALL
        continues to receive strong inquiry about its newly developed client-
        server based administration modules and tools that have been
        developed utilizing ORACLE-based products.  
   

     
         The following is a summary of operating highlights for the three
        months and year ended December 31, 1995 and 1994:

        
         
              WARNER INSURANCE SERVICES, INC. AND SUBSIDIARIES
                            OPERATING HIGHLIGHTS
         
                  Three Months Ended             Year Ended
                     December 31,                December 31,       
               -------------------------  --------------------------  
                   1995          1994          1995          1994     
               -----------  ------------  ------------  ------------
                     (Unaudited)            (Audited)     (Audited)
         
        Software
         licensing
         and main-
         tenance
         revenues  $ 1,004,156  $    658,425  $  4,118,754  $  1,926,822)
               -----------  ------------  ------------  ------------
        COSTS AND
         EXPENSES:
         Sales and
          marketing    116,261       410,544       465,045     1,584,902
         Research and
          development  425,367       722,698     1,932,920     2,499,436
         General and     
          administra-
          tive ex-
          penses     1,180,108     1,242,087     4,099,879     5,782,280
         Special
          charges       --         3,373,000     1,165,000     3,373,000
               -----------  ------------  ------------  ------------
                 1,721,736     5,748,329     7,662,844    13,239,618
               -----------  ------------  ------------  ------------
        Loss from
         continuing
         operations
         before
         income tax
         (benefit)    (717,580)   (5,089,904)   (3,544,090)  (11,312,796)
         
        Income tax
         (benefit)      --        (1,730,567)       --        (3,846,351)
         
        Loss from
         continuing
         operations   (717,580)   (3,359,337)   (3,544,090)   (7,466,445)
        Loss from
         discontinued
         operations
         less applicable
         income tax
         (benefit)  
         of none,
         ($1,541,387),
         none,
         ($923,649)    
         respec-
         tively     (1,547,888)   (7,965,591)   (7,107,987)   (6,753,637)
         
        Loss on dis-
         posal of dis-
         continued
         operations,
         including
         $1,000,000
         provision
         for operating
         losses during
         phase-out
         period,
         without tax
         benefit      (749,758)       --          (749,758)       --      
               -----------  ------------  ------------  ------------
        Net loss   $(3,015,226) $(11,324,928) $(11,401,835) $(14,220,082)
                     
        Loss per
         share from
         continuing
         operations$     (0.08) $      (0.38) $      (0.41) $      (0.84)
                     
        Net (loss)  
        per share  $     (0.35) $      (1.28) $      (1.33) $      (1.60)
                     
        Weighted
         average
         number
         of common
         shares out-   
         standing    8,560,904     8,816,271     8,559,307     8,868,926
                     
         
        Special charges represent write-down of capitalized software
        development costs and provision for facilities and excess equipment
        in the fourth quarter 1994 and the write-off of additional software
        development costs and executive and other severance costs in the
        first quarter of 1995.  

        CONTACT:  Warner Insurance Services Inc., Fair Lawn;
                  Alfred J. Moccia;   
                  President -
                  (201) 794-4808


PROFITABLE -- PERSISTENT -- PERSEVERING
PRIVATELY HELD HAYES REPORTS BEST QUARTER EVER

        
            ATLANTA, April 11, 1996 - Closing the books on its best
        quarter ever, Hayes Microcomputer
Products, Inc.
announced today its
        consolidated first quarter 1996 financial results, reporting
        operating income of $6.0 million on $77.2 million in sales for the
        quarter. Compared with the same quarter in 1995, sales increased
        16.4% while operating income increased 251%.  Including a one-time
        gain from the sale of surplus land owned by the company, net income
        for the quarter was $6.9 million versus a loss of $1.3 million the
        previous year.
        


            "With these results, we can confidently proclaim that our
        turnaround plan worked," said Dennis C. Hayes, Chairman of Hayes.
        "Since our reorganization began, this is the fifth of the last six
        quarters that the company has recorded operating profits," said
        Hayes.

        
            Reflecting on the improved financial performance and condition
        of the company, James A. Jones, Chief Financial Officer of Hayes,
        said, "We have been able to reduce our debt over the past year by
        $27.0 million through significantly improved inventory management,
        and engineering and manufacturing enhancements that have decreased
        costs and increased our margins."  Continued Jones, "In addition,
        the recent launch of three new consumer products, including a DSVD
        modem, increasing demand for our business class, PCMCIA, and network
        rack products, and unprecedented results from our international
        operations, positions Hayes for continued growth and profitability
        going forward."
   

     
            "I am proud of the employees of Hayes for their hard work and
        dedication," said Dennis Hayes.  "With every twist and turn in the
        road, the employees of this company remained focused on the
        business.  We are emerging from our reorganization efforts stronger
        than ever, focused on the future, and ready to compete."

        
            Best known as the inventor of the PC modem, Hayes is recognized
        around the globe as a leader in technical innovations, computer
        communications standards, functional and feature-rich products, and
        superior support and service.  Founded in 1977, Hayes develops,
        manufactures, and markets value-based computer communications
        solutions for software, business, network and consumer market
        segments.  The company maintains an extensive global network of
        authorized distributors, dealers, mass merchants, VARs, system
        integrators and original equipment manufacturers.  Hayes customers
        include Fortune 1000 corporations, mid-size companies and corporate
        branch offices, small and home office businesses, on-line and
        telecommunications network providers, and millions of individual PC
        users around the globe.
   


     
               HAYES MICROCOMPUTER PRODUCTS, INC. AND SUBSIDIARIES
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                 (unaudited)
                      (In thousands, except per share data)
        
                                                 Quarter Ended
                                            03/31/96         03/31/95
        Net Sales                          $ 77,178          $ 66,306
          Operating costs and expenses:
        Cost of sales                        54,594            47,887
        Selling, operating and admin.        16,561            16,703
        Operating income                      6,023             1,716
        Other income (expense)                8,456            (1,457)
        Interest, net                        (1,093)             (576)
        Income (loss) before reorganization
          expenses and income taxes          13,386              (317)
        Reorganization expenses               1,819             1,862
        Income tax expense (benefit)          4,712              (887)
        Net income (loss)                  $  6,855          $ (1,292)
        Earnings (loss) per common share   $   0.40          $  (0.07)
        Shares outstanding                   17,328            17,328

        
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                                (unaudited)
                              (In thousands)
        
                                            03/31/96          03/31/95
          Assets:
        Cash and cash equivalents          $ 16,515          $  9,445
        Receivables                          36,951            36,981
        Inventory                            35,652            42,660
        Other current assets                  2,741             6,711
        Property, plant and equipment         7,040            10,191
        Other assets                          8,019            17,463
        Total                              $106,918          $123,451
          Liabilities and Stockholders'
           Equity:
        Accounts payable and accrued
          expenses                         $ 38,246          $ 11,948
        Current maturity of long-term
          debt                                3,261            24,916
        Liabilities subject to
          compromise                         52,513            52,678
        Long-term debt                           55             5,436
        Stockholders' equity                 12,843            28,473
        Total                              $106,918          $123,451


        CONTACT:  Andrew W. Dod, Director of Corporate Communication,
        Hayes Microcomputer Products, 770-840-6808; Fax:  770-441-1238; E-
        mail:adod@hayes.com; or Web: href="http://www.hayes.com/" target=_new>http://www.hayes.com/">http://www.hayes.com/