Centrix Entertainment and Communications Inc. signs letter of intent.

Embotelladora S.A. (BAESA)(NYSE:BAE;BSE:BAES) Monday announced results (under U.S. generally accepted accounting principles) for the third quarter and first nine months of fiscal 1995 (ended June 30, 1995).

Although economic conditions in Argentina continue to affect volume growth and profitability, a strong sales performance by BAESA's Brazilian subsidiary has increasingly contributed to the company's overall operating performance. However to position BAESA for the more profitable stronger spring and summer seasons, the company has taken measures which had an impact of approximately $2.3 million against the third quarter fiscal 1995 earnings as a result of a workforce reduction program and other measures in the Argentine franchise territories. These measures should reduce future operating costs and enhance future earnings.

Net sales for the third quarter of fiscal 1995 rose 54% to $139.7 million, compared to $90.9 million during the third quarter of fiscal 1994. This growth is principally attributable to the addition of and volume growth in the Brazilian franchise territories. BAESA incurred a loss from operations during the third quarter of $0.7 million, compared to income from operations of $3.3 million reported during the prior fiscal year period.

Profitability was impacted by a decline in sales volume in Argentina, increases in the costs of certain raw materials in all territories, higher fixed costs as a result of expanding production capacity over 25% during the last year in Buenos Aires, Argentina, pricing pressures and the restructuring charge for across-the-board personnel reductions in the Argentine franchise territories. Operating cash flow from all operations increased from $11.4 million during the third quarter of fiscal 1994 to $16.4 million during the same quarter of fiscal 1995.

Net income was $0.2 million, or $0.01 per ADS, during the third quarter of fiscal 1995, similar to the estimated net income that the company had previously announced at the end of June 1995. This compares to net income of $8.4 million, or $0.23 per American Depositary Share (ADS), during the third quarter of fiscal 1994, which included a gain in other income of approximately $5.3 million, or $0.15 per ADS, from the company's entry into various speculative foreign currency futures contracts. The weighted average number of shares outstanding during the third quarter of both fiscal 1994 and 1995 totaled 72.5 million, or 36.25 million ADSs.

For the nine months ended June 30, 1995 net sales increased 39% to $506.2 million, compared to $363.8 million during the same period of the prior fiscal year, again driven by the addition of the Brazilian franchise territories. Income from operations reached $54.7 million, compared to $52.4 million reported during the prior fiscal year period. Operating cash flow totaled $97.8 million during the first nine months of fiscal 1995, compared to $74.8 during the same period of fiscal 1994.

Net income for the first nine months of fiscal 1995 totaled $39.4 million, or $1.09 per ADS, compared to $42.7 million, or $1.32 per ADS, during the same period of fiscal 1994. The weighted average number of shares outstanding during the first nine months of fiscal 1995 was 72.5 million, or 36.25 million ADSs, compared to 64.5 million, or 32.25 million ADSs, outstanding during the prior fiscal year period.

Sales volumes during the third quarter of fiscal 1995 reflect the tripling of volumes in the Brazilian franchise territories. Sales volumes for the consolidated company during the third quarter increased 43% to 44.27 million eight-ounce cases from 31.01 million cases on a proforma basis, which includes sales volume from the previous PepsiCo bottlers in the southern Brazil and Cordoba franchise territories. For the nine month period ended June 30, 1995, sales volumes climbed 25% to 149.57 million cases, compared to 119.34 cases on a proforma basis during the prior fiscal year period.

Commenting on the third quarter results, Charles H. Beach, chairman and chief executive officer of BAESA stated: "Although the recessionary economic conditions in Argentina affected profitability during the seasonally slower third quarter, our consolidated results are increasingly reflecting the growth in the Brazilian operations which continue to meet our aggressive expectations. As we are currently serving roughly half of the retailers in the metropolitan areas of Sao Paulo, Rio de Janeiro and Porto Alegre, and in July began selling in Blumeneau/Florianopolis, Santa Catarina, there remain ample opportunities to grow within these cities and expand throughout these states, as well as into the state of Minas Gerais by March 1996."

Beach continued: "We remain firmly committed to controlling costs, as evidenced by our recent measures to reduce payroll costs of the Argentine operations, and feel confident of our abilities to approach the stronger spring and summer seasons well positioned to turn around our Argentine operations and to continue growing our Brazilian operations. If the Argentine economy continues to show improvement and as our cost reduction measures begin to generate savings, we expect our consolidated results for the fourth quarter of fiscal 1995 to be comparable to last year's fourth quarter results."

Operating Highlights by Country -------------------------------

Argentina

During the third quarter of fiscal 1995 in Argentina, net sales were $68.2 million, loss from operations was $3.8 million, operating cash flow was $4.0 million, and sales volume was 17.9 million eight-ounce cases.

The recessionary economic conditions in Argentina have continued to restrict retailers' liquidity and consumer spending, suppressing volume growth and creating pricing pressure which impacted the company's margins. The value-added tax was increased from 18% to 21% on April 1, 1995, and much of this increase was absorbed by BAESA. These factors contributed to the lower margins experienced in the Argentine operations.

As a result of an injection machine being damaged during shipment in late 1994, the Argentine operations were required to purchase preforms from a third party vendor at an incremental cost of approximately $1.5 million. This injection machine, with an annual capacity of 80 million preforms, has since been installed in July 1995 in Colonia, Uruguay. To solve this supply shortage to meet demand during the summer season, BAESA is installing two new injection machines with an annual capacity of 100 million preforms each in the Buenos Aires South plant in early fiscal year 1996.

Taking further measures to control costs, BAESA is restructuring its Argentine operations, permanently eliminating approximately 185 positions by completion of the program. These permanent payroll reductions will provide the company with annual payroll savings estimated at $4.0 million before taxes. Additionally, BAESA is focusing on increasing efficiencies in all areas of its operations and expects to generate monthly savings of $1.0 million, including the payroll savings.

Sales volumes during July in Buenos Aires have shown some improvement and the company believes that the country's economy is showing tangible signs of a gradual recovery. Additionally, in August, BAESA plans to introduce a new line of Kas drinks, which contain a higher level of natural fruit juices than most flavored products. The Kas drinks have also been previously launched in Spain and have done very well in that market.

Brazil

In Brazil, where BAESA commenced operations in December 1994, the third quarter ended June 30, 1995, produced net sales of $61.9 million, income from operations of $7.2 million, operating cash flow of $15.2 million, and sales volume totaling 23.0 million cases.

. 7, 1995--Centrix Entertainment and Communications, Inc., a subsidiary of the publicly traded National Industrial Security Corporation (symbol:NISC) has signed letters of intent to purchase three communications companies. Each acquisition is subject to finalizing a definitive purchase agreement and meeting various contingencies such as financing and due diligence. Two of the companies are Salt River Production Group, Inc., and Pickett Productions, Inc. All are in St. Louis, Mo. Under terms of the agreement, the identity of the third company cannot be disclosed to the public until the purchase agreement is completed. The companies are engaged in the production of animation, cable, television and corporate programming.

Combined revenues from the acquired companies could increase NISCO's consolidated revenues from $1.4 million in 1994 to between $5-7 million after the acquisitions. The company also is having discussions to make further acquisitions in the communications field in order to capitalize on opportunities available both nationally and worldwide. "We intend to be a formidable competitor in the production and dissemination of quality information," said Dennis C. Deering, executive vice president of Centrix. "The formation of Centrix will allow NISCO to enter an area of substantial growth and in which the management of Centrix has extensive experience".

FOR REPEATS CALL WIRE NEWS 314/231-2104

CONTACT: Dennis C. Deering, 314/962-1414

Centrix Entertainment and Communications, Inc.