/raid1/www/Hosts/bankrupt/TCR_Public/960911.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy and Troubled Company News


September 11, 1996



  1. Cerplex releases balance sheet for Q2





Return To The InterNet Bankruptcy Library Homepage


Cerplex releases balance sheet for Q2


        


            TUSTIN, CA  --  Sept. 11, 1996  --  Cerplex
        (NASDAQ:CPLX), a leading provider of high technology services
        outsourcing, released today its Consolidated Balance Sheets at June
        30, 1996 and Consolidated Statement of Operations for the three and
        six month periods ended June 30, 1996.
        


            These financial statements were previously included in the
        company's Form 10-Q filed with the Securities and Exchange
        Commission in August.  Cerplex had previously released is its
        estimated second quarter earnings on July 17, 1996, and the attached
        financial information does not deviate from the information included
        in the July 17 release.  
        


            The delay in announcing the financial figures was due to
        purchase accounting adjustments for Cerplex SAS in France, which was
        acquired during the second quarter.   
        


            James T. Schraith, Cerplex's president and chief executive
        officer, stated:  "We were pleased with the increase in net sales
        and our return to profitability in the second quarter.  However, the
        company is still in a transitional stage and a number of issues will
        continue to impact adversely the company's results of operations.
        


            "As previously discussed, the company anticipates write-offs
        during the third quarter associated with the closure of its Texas
        operations and the resolution of the SpectraVision bankruptcy.
        


            "Operational results for the third quarter will also be impacted
        by operating losses associated with the company's Texas operations
        and start-up costs associated with the opening of our new Ontario
        hub facility.  Due to these and other dynamics affecting its
        business, the company expects to report a loss for the third quarter
        1996."   
        


        About Cerplex
        


            Cerplex is a leading independent provider of service
        outsourcing, including repair and remanufacturing, parts and
        logistics services, and knowledge-based support services, including
        computer based training and help desk.  
        


            The company has developed extensive capabilities in these ares,
        focusing on the computer and peripherals, telecommunications and
        office automation markets.
        


            Cerplex offers custom developed programs to OEM and TPM
        customers that help to reduce their service costs, shorten response
        times, and improve customer satisfaction.  The company's
        headquarters is located in Tustin, with service facilities
        throughout the United States and Europe.  Visit Cerplex's homepage
        at " target=_new>http://www.cerplex.com">www.cerplex.com.  


            NOTE:  This release contains forward-looking statements which
        involve risks and uncertainties.  The company's actual results may
        differ substantially from the results discussed in the forward-
        looking statements.  
        


            Factors that might cause such differences include, but are not
        limited to, the effect of losses and other factors on the company's
        credit facilities, business and results of operations; the company's
        limited capital resources and its ability to fulfill its existing
        obligations and ongoing capital needs, risks associated with excess
        or obsolete inventory; the company's dependence on key customers and
        their financial viability; the impact of competition; and the
        company's ability to effectively manage growth.  These and other
        risk factors are discussed in the company's filing on Form 8-K, 10-Q
        and 10-K.  


         
                           The Cerplex Group Inc.
                              and subsidiaries
                  
                        Consolidated Balance Sheets
                    (in thousands, except per share data)
                                (Unaudited)
                                              June 30     December 30
                                               1996          1995
                                  ASSETS Current assets:
         Cash and cash equivalents              $ 27,206     $  3,807
         Accounts receivable, net                 28,252       30,102
         Inventories                              28,819       27,789
         Net assets of
          discontinued operations                  1,347        2,597
         Prepaid expenses and other                4,924        2,267
           Total current assets                   90,548       66,562
         
        Property, plant and equipment, net        28,919       17,988
        Investment in joint venture                   --        7,723
        Goodwill                                   5,817        6,647 Other
        long-term assets                     4,452        2,973
         
           Total assets                         $129,736     $101,893     
         
                      LIABILITIES & STOCKHOLDERS' EQUITY
         
        Current liabilities:
         Accounts and notes payable             $ 22,716     $ 17,024
         Accrued liabilities                      25,246       13,622
         Short-term borrowings                    45,446           --
         Current portion of long-term debt           247          536
         Income taxes payable                      1,599        2,161
           Total current liabilities              95,254       33,343
         
        Long-term debt, less current portion      17,946       68,382 Other
        long-term liabilities                6,214           --
         
        Stockholders' Equity:
         Preferred Stock, par value $.001;
          3,066,340 shares authorized;
          8,000 shares designated Series B
          Preferred Stock, all of which are
          issued and outstanding, aggregate
          liquidation preference of $16,000        7,911           --
         
         Common Stock, par value $.001;
          30,000,000 shares authorized; 13,402,467
          and 13,127,680 issued and outstanding
          in 1996 and 1995, respectively              13           13
         
         Additional paid-in capital               50,611       47,528
         Notes receivable from stockholders         (229)        (226)
         Unearned compensation                      (108)        (143)
         Accumulated deficit                     (47,897)     (47,026)
         Cumulative translation adjustment            21           22
           Total stockholders' equity             10,322          168
           Total liabilities and  
        stockholders' equity                $129,736     $101,893 -0-
                           The Cerplex Group Inc.
                              and subsidiaries
           
                    Consolidated Statements of Operations
                    (in thousands, except per share data)
                                (Unaudited)
         
                     Three months ended June 30   Six months ended June 30
                          1996       1995            1996        1995
         
        Net sales          $ 51,339   $ 32,488        $ 92,185     $ 66,489
        Cost of sales        40,370     26,479          74,285       54,438
         
         Gross profit        10,969      6,009          17,900       12,051
        Selling, general
         
          & administrative
          expenses            8,582      5,235          15,639        9,312
         Operating income     2,387        774           2,261        2,739
        Equity in earnings  
         
          from joint venture     --        644             357        1,159
        Gain on sale of  
         
          InCirT Division       450         --             450
        -- Interest expense,
         
          net                 1,658      1,221           3,169        2,445
        Income (loss) from
         
          continuing operations
          before taxes        1,179        197            (101)       1,453
        Income taxes            477         27             770          494
        Income (loss) from
         
          continuing
          operations            702        170            (871)         959
        Discontinued operations,
         
          net of income taxes:
         
         Income from operations  --        112              --          153
         Estimated loss from
          liquidation of
          discontinued
          operations             --         --              --           --
         Income from discontinued
          operations             --        112              --          153
        Net income (loss)  $    702   $    282        $   (871)    $  1,112
         
        Income (loss) per share:
         
         Continuing
          operations       $   0.05   $   0.01        $  (0.07)    $   0.07
         Discontinued
          operations             --       0.01              --         0.01
         
        Net income (loss)
         per share         $   0.05   $   0.02        $  (0.07)    $   0.08
         
        Weighted average
         common and common
         equivalent shares  
         outstanding         14,846     14,414          13,286       14,412  


        CONTACT:  Cerplex Group Inc., Tustin -  
                  Joan Kerr, 714/258-5162 or  
                  E-mail:  jk@cerplex.com