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MICROPROSE REPORTS ON ASSESSMENT OF GERMAN OPERATIONS

 HUNT VALLEY, Md., Oct. 21 /PRNewswire/ -- MicroProse, Inc. (NASDAQ: MPRS) announced today preliminary results of an assessment of certain contingencies associated with its German operations. MicroProse believes that these matters were not disclosed by the sellers when operations of United Software GmbH were acquired by a U.K. subsidiary of MicroProse in March 1993. MicroProse has communicated to the sellers a demand to satisfy the contingencies but the ultimate resolution is uncertain.
 MicroProse may be required to record losses and charges associated with this matter for the quarter ended Sept. 30, 1993. At present, the aggregate potential exposure of such losses and charges is not expected to exceed $3 million to $5 million and could be substantially less. However, as MicroProse is continuing its assessment to determine more precisely the impact of these issues on its business and operating results, the impact could vary substantially upon such further assessment. MicroProse expects to report an operating loss for the fiscal quarter ended Sept. 30, 1993. The amount has not yet been determined.
 MicroProse is currently in discussions with both its domestic and foreign banks regarding the financial impact of the German situation. MicroProse also announced that it continues to operate under cash constraints, and depends upon continued forbearance by its domestic bank and further advances to fund current operations. In addition, the situation may reduce MicroProse's sales in Germany during the 1993 holiday season. During the 1992 holiday season, German sales accounted for approximately 5 percent of annual net revenues.
 MicroProse, Inc., designs and markets a full line of entertainment software for personal computers and video cartridge systems. Its products are available nationally and internationally through major distributors, retailers and mass merchants.
 -0- 10/21/93
 /CONTACT: Ronald J. Bueche, CEO, 410-771-6722, or fax 410-785-8963, or C. Matthew Fick, director - investor relations, 410-771-6717, or fax 410-785-8963, both of MicroProse/
 (MPRS)


CO: MicroProse, Inc. ST: Maryland IN: CPR ENT SU:

GK-MP -- NY045 -- 5112 10/21/93 11:08 EDT
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Publication:PR Newswire
Date:Oct 21, 1993
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