Bankruptcy and Troubled Company News

August 22, 1996

  1. DEP Corp. reaches agreement with lender group on plan of reorganization
  2. LBMS Announces First Quarter Results...
  3. LEGACY Storage Systems International Inc. announces 1996 year end results

Return To The InterNet Bankruptcy Library Homepage

DEP Corp. reaches agreement with lender group on plan of reorganization; amended consensual plan to be filed


            LOS ANGELES, CA  --  Aug. 22, 1996  --  DEP Corp. (NASDAQ
        SmallCap:DPCAQ, DPCBQ) Thursday announced that it has reached an
        agreement with its lender group on an amended plan of

            The plan also has the support of the official committee
        representing the company's unsecured creditors.

            "We are pleased that we have been able to reach an agreement
        with our lenders that should enable the company to advance a
        consensual plan of reorganization," said Robert Berglass, chairman
        and president of DEP.  

            "Our goal from day one was to develop a plan which would
        restructure the company's long-term debt consistent with our cash
        flow and which would treat all of our creditors and stockholders
        fairly.  In our view, this plan does just that."

            The company stated that it plans to distribute an amended
        disclosure statement which incorporates the consensual plan to all
        appropriate constituents by early September 1996 and to request a
        confirmation hearing with the bankruptcy court which would allow the
        company to emerge from Chapter 11 by the end of October 1996.

        Under the plan which was announced Thursday:

            "While I would have preferred to reach an agreement that did not
        dilute current stockholders' interests at all, we believe that the
        reasonable interest rate on our long-term debt provided for in the
        plan, combined with the savings of expenses and professional fees
        which would have been incurred if the bankruptcy case were to
        continue, more than outweigh the eight percent dilution of
        stockholders' interests," Berglass stated.  

            "I especially want to thank our suppliers, retail customers and
        employees for their continued support during this challenging
        period.  I also want to acknowledge and thank the unsecured
        creditors' committee.  Their continuous faith strengthened our
        conviction to resolve this situation in the best interests of all
        constituents.  Now that we have reached an agreement, we can
        concentrate all of our resources and energies on growing our
        business and strengthening our brands."

            The company also stated it intends to continue its constructive
        fraudulent transfer case against S.C. Johnson & Son Inc. in the
        bankruptcy court.  The net proceeds of any recoveries in that action
        are pledged to the lenders to help DEP meet its debt service.

            DEP is a consumer products company that develops, manufactures
        and markets a wide variety of hair, oral and skin care products
        under 10 major brand names:  Dep, L.A. Looks, Agree, Halsa, Lilt,
        Topol, Lavoris, Natures Family, Porcelana and Cuticura.  The company
        employs approximately 300 people at its Rancho Dominguez, Calif.
        headquarters and production facility.

            The company filed to restructure under Chapter 11 of the
        bankruptcy code on April 1, 1996.

        CONTACT:  DEP Corp.,Rancho Dominguez, Calif.
                  D. Lee Johnson, 310/604-0777
                  Sitrick and Company, Los Angeles
                  Ann Julsen, 310/788-2850

LBMS Announces First Quarter Results; CEO Outlines Restructuring Plans


            HOUSTON,  TX  --  Aug. 22, 1996  --  Learmonth & Burchett
        Management Systems Plc (NASDAQ:LBMSY) (LBMS) today reported first
        quarter financial results and announced restructuring plans aimed at
        returning LBMS to profitability through focusing on the company's
        established strengths in the process management market and reducing
        operating costs outside the U.S.

            For the three months ended July 31, 1996, the company reported a
        net loss of $4.3 million, or $0.34 per American Depositary Share
        ($0.17 per Ordinary Share), on total revenue of $5.3 million,
        compared to net income of $459,000 or $0.04 per American Depositary
        Share ($0.02 per Ordinary Share) on total revenue of $9.8 million
        for the three months ended July 31, 1995.

            The decline in total revenue from the first quarter of fiscal
        1996 to the first quarter of fiscal 1997 was attributed to lower
        revenue outside of the U.S. and the historical seasonal downturn in
        the U.S. revenue for the first quarter.

            In connection with the restructuring plan described in the
        following paragraphs, the company expects to record a one-time
        restructuring charge of approximately $18 million in the three
        months ending Oct. 31, 1996.  This charge is expected to relate
        primarily to lease costs and severance costs.

        New Business Strategy

            Michael S. Bennett, the newly-appointed CEO, today outlined an
        aggressive new business strategy aimed at building on the company's
        core strengths and capitalizing on significant opportunities in the
        process management marketplace.

            LBMS' new strategic direction calls for increased investment in
        the development and marketing of Process Engineer(R), the company's
        market-leading process management tool, and the implementation of a
        more cost-effective global sales model.  With increased resources in
        the Process Engineer product line, LBMS will explore options to
        extend the company's focus to address broader process management
        market opportunities.

            "This represents a major turning point for LBMS -- a strategic
        thrust aimed at not only solidifying our leadership in process
        management, but allowing us to aggressively target new process
        management business opportunities in other markets," said Mike

        Increased Investment in Process Engineer

            At the core of the plan is an increased focus in product
        development and marketing resources on the Process Engineer product
        line, which is recognized by industry analysts as holding a
        substantial share of the process management market.  Since its
        inception in 1992, Process Engineer has been implemented by a broad
        range of Fortune 1000 companies.

            Although Process Engineer product revenue did not increase from
        the first quarter of fiscal 1996 to the first quarter of fiscal
        1997, Process Engineer product revenue has increased approximately
        70 percent annually over the last four fiscal years and the company
        expects Process Engineer product revenue to increase in the current
        fiscal year over fiscal 1996.

            LBMS will shortly announce plans for upcoming enhancements to
        Process Engineer, including three new releases of the product
        designed for specific market niches to be introduced this year.
        Additionally, the company plans for the continued expansion of
        ProcessWare(TM), a program through which LBMS partners with industry
        subject matter experts to publish best practice processes in Process
        Engineer.  New ProcessWare partners are expected to be announced in
        the next few months.

            "With this shift in focus toward Process Engineer, LBMS is
        moving to more effectively match R&D and marketing investment with
        the product line that is generating a majority of our revenue," said
        Bennett.  "We believe this is a major step in further expanding our
        lead in the process management market."

        Global Sales Model

            Outside the U.S., LBMS will transition its existing direct sales
        and service resources to distributors.  This should provide the
        company with a more cost effective method for product sales and
        service outside the U.S., continuity in customer support outside the
        U.S. and continued ability to provide product and services to
        current and prospective customers on a global basis.

            In connection with this transition, LBMS will eliminate
        substantially all on-going operational costs outside the U.S.

            In the U.S., LBMS will increase its investment in direct sales
        operations related to the Process Engineer product line and will
        reduce costs not related to these activities.

        New Management Team

            Key to the success of the company's new strategic direction is a
        strengthened management team.  On August 6, LBMS announced the
        appointment of Michael Bennett as president and CEO, and Gerald
        Christopher as chairman of the Board of Directors.  Both Bennett and
        Christopher bring extensive management and technology industry
        experience to the company.  Bennett has held senior management
        positions with Summagraphics, Dell Computer and Digital Equipment
        Corporation, while Christopher has held top positions at Amber Wave
        Systems, Extention Technology and Channel Computing.

            Except for any historical information contained herein, the
        matters discussed in this news release are forward looking
        statements that involve risks and uncertainties, including the
        timely development, release and acceptance of new products and
        alliances, the impact of competitive products and pricing, and the
        other risks detailed from time to time in the company's U.S.
        Securities and Exchange Commission reports, including the company's
        recent prospectus.  The company continues to be susceptible to
        potentially significant variations in quarterly and annual revenue
        and operating results.

            Based in Houston, LBMS, Inc. is the leading provider of Process
        Management products to Fortune 1000 companies.  LBMS' integrated
        line of Process Management products provide organizations with a
        library of "best practices" for all areas of applications
        development and a comprehensive set of tools for process definition,
        deployment, execution and improvement.  LBMS has an installed base
        of more than 21,000 users worldwide in areas such as financial
        services, technology, manufacturing, retailing, oil, government and
        utilities.  LBMS company and product information can be found on the
        World Wide Web at

            Unaudited financial information in U.S. dollars, under
        accounting principles generally accepted in the U.S., follow:

                    Learmonth & Burchett Management Systems PLC
                        Consolidated Statement of Operations
                    (in thousands, except per share information)
                                                Three Months Ended
                                                      July 31,
                                                   1996      1995
         Product licenses                           $  2,004  $  5,376
         Services                                      3,250     4,400
          Total revenue                                5,254     9,776
        Cost of Revenue:
         Product licenses                                 58       242
         Services                                      1,616     1,669
          Total cost of revenue                        1,674     1,911
        Gross margin                                   3,580     7,865
        Operating Expenses:
         Sales and marketing                           4,522     4,214
         Research and development                      2,143     1,902
         General and administrative                    1,308     1,231
         Total operating expenses                      7,973     7,347
        Operating income (loss)                       (4,393)      518
        Interest income                                  123        32
        Interest expense                                 (34)      (18)
        Other income and (expense)                         4
        Income (loss) from continuing
         operations before income taxes               (4,300)      532
        Income tax benefit (expense)                               (73)
        Net loss                                    $ (4,300) $    459
        Income (Loss) per ordinary share              $(0.17)    $0.02
        Income (Loss) per ADS (a)                     $(0.34)    $0.04
        Weighted average ordinary and ordinary
         share equivalents outstanding                25,535    23,004
        (a) Adjusted to reflect the ratio of one ADS to two ordinary
                    Learmonth & Burchett Management Systems PLC
                            Consolidated Balance Sheet
                    (in thousands, except per share information)
                                                July 31  April 30
                                                  1996     1996
        Assets                                   (unaudited) (audited)
        Current assets
         Cash and cash equivalents                  $11,386  $10,960
         Trade accounts receivable                    5,025    9,579
         Other current assets                         3,201    3,498
          Total current assets                       19,612   24,037
        Furniture, fixtures and equipment             2,902    2,982
        Other assets                                    160      160
          Total assets                              $22,674  $27,179
        Liabilities and Shareholders' Equity
        Current Liabilities
         Current maturities of indebtedness            $853   $1,003
         Accounts payable                             1,161    1,630
         Deferred revenue                             5,321    3,691
         Accrued liabilities                          4,425    5,344
         Executive Stock Option Trust indebtedness      926      903
          Total current liabilities                  12,686   12,571
        Indebtedness                                    519      524
        Other liabilities                             1,967    2,149
          Total liabilities                          15,172   15,244
        Shareholders' Equity:
         Ordinary shares, 10 pence par value          4,255    4,253
         Additional paid-in capital                  20,282   20,323
         Adjustment for ESOT                           (926)    (903)
         Cumulative translation adjustment              368      439
         Accumulated deficit                        (16,477) (12,177)
          Total shareholders' equity                  7,502   11,935
        Commitments and Contingencies
          Total liabilities and
           shareholders' equity                     $22,674  $27,179

        CONTACT:  LBMS, Inc., Houston;
                  Steve Odom, 713/625-9313 or 800-231-7515  or  
                  Samantha Lagerloef, 713/625-9334 or 800-231-7515

LEGACY Storage Systems International Inc. announces 1996 year end results and proposed 10:1 common share consolidation


            MARKHAM, Ontario  --  Aug. 22, 1996  -- LEGACY Storage Systems International Inc.
        reports financial results for the year ended May 31, 1996.  

            Results include activities of Tecmar Technologies, Inc.
        (previously Rexon Incorporated) for the three months from the date
        of acquisition (March 4, 1996).  Tecmar Technologies, Inc. is based
        in Longmont, Colorado and has operations in Europe and the Far East.
        All results are in $US.  

            Revenue for the year was $42.9 million up from $21.8 million in
        1995.  $14.3 million was contributed by Tecmar.  The loss, before
        writedown of goodwill, was $4.4 million up from $0.7 million in
        1995. In addition Legacy wrote off goodwill totaling $19.4 million
        primarily associated with the takeover of Tecmar.  This resulted in
        a net loss for the year of $23.8 million ($0.40 per share).  

            "Legacy's financial position continues to be sound"  says Legacy
        CFO Robert McQuade.  "The company has $14.4 million working capital
        and no long term debt.  We have also recently negotiated a $10
        million line of credit to finance Tecmar's capital expenditures and
        operating requirements."  

            "The quarter following the acquisition of Tecmar in March, 1996
        was extremely challenging for our management team"  says David
        Killins, Chairman and CEO of Legacy.  "The restructuring and
        rebuilding of Tecmar is a process which will take longer than we
        anticipated and will continue through the 1997 fiscal year.  We
        continue to believe, however, that our strategy of acquiring and
        developing proprietary technology and distribution capability in the
        U.S. will enable us to become a major player in the data storage
        markets in which we compete."  

            Ernie Wassmann, President and CEO of Tecmar Technologies, Inc.,
        commented: "We have taken the tough decisions necessary to make
        Tecmar successful.  The business was severely impaired during its
        time in Chapter 11 bankruptcy proceedings.  Its previous management
        team was consumed with court related matters, research and
        development had been deferred, customers had become increasingly
        concerned over unreliable product shipments and suppliers were
        demanding up front payment to secure delivery of product.
        Furthermore, on coming out of Chapter 11, the company was faced with
        absorbing a 20 percent price reduction in a key product line to
        match a major competitor's pricing."  

            Some of the actions Mr. Wassmann and his team have taken since
        the acquisition include:

            In Canada the Systems Division launched its first generation of
        large scale, near on line, data storage servers based on the
        technology developed by the Institute for Space and Terrestrial
        Science.  Legacy acquired the rights to use this technology in May

            "We are making steady progress in introducing our proprietary
        data storage server system to Canada and the US,"  says Keith Leno
        President and CEO of the Systems Division.  "We are building the
        marketing and sales infrastructure needed to capture our niche in
        these key markets."  To date 14 units had been sold.  

            Also in Canada, Storage One, which purchases data storage
        products for sale into world markets and to supply the Systems
        Division's manufacturing needs, generated $17.2 million in sales in
        1996 vs $11.9 million in 1995.  

            Legacy also announced that, subject to regulatory and
        shareholder approval, it proposes to consolidate its common shares
        on a 10:1 basis.  

            David Killins commented, "The proposed stock consolidation will
        permit trading of Legacy shares at a price level that will permit
        greater access to investments in the Company by institutional
        investors who tend not to invest below certain minimum trading
        prices."  The proposed stock consolidation will result in the
        current issued shares being reduced from 83,850,000 to 8,385,000.  

            Legacy Storage Systems International Inc.  is a global leader in
        the design, development and manufacture of data storage

CONTACT:  LEGACY Storage Systems International Inc.
                  David Killins, 905/475-1077 Ext. 225
                  905/475-1088 (Fax)
                  LEGACY Storage Systems International Inc.
                  John Thornton, Director, Investor Relations, 905/475-1077
                  Ext. 258
                  905/475-1088 (Fax)
                  LEGACY Storage Systems International Inc.
                  Robert McQuade, CFO, 905/475-1077 Ext. 224
                  905/475-1088 (Fax)