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PARAMOUNT SUED IN FEDERAL COURT FOR EXTENSIVE SUPERFUND CLAIMS

 NEW YORK, Oct. 11 /PRNewswire/ -- Horsehead Industries, Inc., announced today that it has field lawsuits against Paramount Communications, Inc. (NYSE: PCI), in the Federal District Court for the Middle District of Pennsylvania asserting extensive Superfund environmental clean-up claims. Horsehead is seeking to recover from Paramount past Superfund costs and to establish Paramount's responsibility for all future Superfund clean-up costs at a former Paramount site sold to Horsehead in 1981. These costs could reach hundreds of millions of dollars.
 The former Paramount site, located in Palmerton, Pa., was previously a part of Paramount's new liquidated Gulf + Western Natural Resources Group, which had extensive metals and mining holdings throughout the United States and abroad. As one of the first divestitures under Paramount's liquidation of the Natural Resources Group, the site was purchased by Horsehead in late 1981. The site was subsequently put on the Superfund list by the U.S. EPA 14 months later in 1983.
 This Superfund designation at Palmerton was the result of a 33 million ton, 2-1/2 mile long, 100 foot high cinder bank generated by 80 years of primary zinc smelting operations. This smelter was permanently closed by Gulf + Western in 1980, prior to Horsehead's purchase of the property. The cinder bank was not transferred to Horsehead as part of the purchase. Gulf + Western (now Paramount Communications) originally purchased the site in February 1966 when it acquired The New Jersey Zinc Company, then a blue chip, New York Stock Exchange-traded company. One of the largest acquisitions of its time, Gulf + Western's purchase of New Jersey Zinc gave it the asset and revenue base that facilitated Gulf + Western's purchase of Paramount Pictures Corporation only nine months later. In April 1977, almost four years prior to Horsehead's purchase of the site, The Wall Street Journal ran a story on the extensive contamination in Palmerton where they reported that "the zinc wastes have also ravaged the once lush vegetation on Blue Mountain and Stony Ridge" and "for those living near the blighted area, it's `like being in an old Western movie.'"
 Although Paramount has been named by EPA as a "Potentially Responsible Party" for clean-up costs at the site under Superfund law, Horsehead claims Paramount has not borne its share of substantial past costs and has refused to enter into an agreement to do so for past and future costs.
 -0- 10/11/93
 /CONTACT: Peter W. Nelson of Horsehead Industries, 212-527-3000, or fax, 212-527-3008/
 (PCI)


CO: Horsehead Industries, Inc.; Paramount Communications, Inc. ST: New York, Pennsylvania IN: ENV SU:

SH-TW -- NY036 -- 0744 10/11/93 15:06 EDT
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Publication:PR Newswire
Date:Oct 11, 1993
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