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MAI SYSTEMS CORP. FILES PLAN OF REORGANIZATION AND ANNOUNCES RESULTS

 IRVINE, Calif., Aug. 19 /PRNewswire/ -- MAI Systems Corp. ("MAI") announced today that it had filed its Plan of Reorganization with the United States Bankruptcy Court for the District of Delaware. As filed, the plan provides for the elimination of the outstanding common and preferred stock equity and the issuance of new common stock in exchange for outstanding trade and funded debt. Implementation of the plan is subject to creditor approval as well as approval of the Bankruptcy Court.
 Separately, MAI announced its operating results for the three and six month periods ended June 30, 1993. These results reflect the impact of the foreclosure in March 1993 by MAI's bank lenders on MAI's European Subsidiaries and certain other assets in full satisfaction of MAI's obligations to such lenders. This foreclosure had the effect of significantly reducing revenues and interest expense, and resulted in gain on the sale of assets and extraordinary gain of $26.5 million and $57.0 million, respectively, in the first quarter of 1993.
 MAI's revenues for the three and six month periods ended June 30, 1993 were $20.5 million and $79.7 million, respectively, as compared to $62.0 million and $135.0 million, respectively, for the comparable 1992 periods. Elimination of the European Subsidiaries represented $35.1 million of the revenue decline for the second quarter of 1993, and $37.8 million of the revenue decline for the 1993 six month period, in each case, as compared to 1992. Operating income for the 1993 periods was $3.0 million and $14.8 million (after elimination of the $26.6 million first quarter gain on the sale of assets), respectively, as compared to operating losses of $4.9 million and $2.8 million, respectively, in 1992. Net income in 1993 was $2.3 million in the second quarter and $90.1 million ($6.6 million after eliminating the first quarter gains resulting from the foreclosure) for the six month period, as compared to net losses of $6.2 million and $11.1 million, respectively, in the comparable 1992 periods.
 MAI Systems, headquartered in Irvine, Calif., operates through four independent Business Units in North and Latin America. It is a leading supplier of systems, software applications and support services to more than 15,000 users.
 -0- 8/19/93
 /CONTACT: Elliott J. Stein, chief counsel and secretary, of MAI Systems, 714-580-2344/


CO: MAI Systems Corp. ST: California IN: CPR SU: RCN ERN

LM-BP -- LA034 -- 4559 08/19/93 19:23 EDT
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Publication:PR Newswire
Date:Aug 19, 1993
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