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HERITAGE LIFE SETTLES CALIFORNIA LAWSUIT

 OIL CITY, Pa., Jan. 4 /PRNewswire/ -- Heritage Life Insurance Company, a subsidiary of Quaker State Corporation (NYSE: KSF), has reached an out-of-court settlement with the owners of the Wescal Credit Insurance Agency that sets aside a $21.7 million California court verdict, the company announced today.
 Heritage has agreed to pay $9.95 million to Wescal to settle the breach of contract lawsuit, which was brought in Orange County, Calif., by Wescal, a general agent of Heritage Life from 1984 to 1990.
 The company said that a reserve of $5 million had been recorded in the third quarter of 1993 in anticipation of possible liability from the case. This reserve, combined with certain capital gains realized in the fourth quarter, adequately covers the settlement amount in 1993.
 Quaker State officials stressed that the out-of-court settlement does not imply Heritage's guilt, but rather represents a decision made solely on the basis of the costs associated with a protracted legal battle.
 "This settlement will enable Quaker State and Heritage Life to concentrate on our respective growth plans for 1994 without the distraction of a prolonged legal battle," said Herbert M. Baum, chairman and CEO of Quaker State. "We now are able to go into the new year without the uncertainty of this lawsuit's possible impact on our 1994 earnings."
 The settlement will have no effect on Heritage's ability to maintain normal operations and to continue to provide credit insurance policies to customers across the country.
 During 1993, Heritage Life undertook a series of successful actions to bolster its financial position in light of the lawsuit. The insurance underwriter projects that its statutory basis capital and surplus as of Dec. 31, 1993, after provision for the Wescal settlement, will be slightly higher than at year-end 1992.
 Quaker State Corporation is principally a producer of branded motor oil and lubricants and a marketer of products and services in the automotive aftermarket. Subsidiaries provide efficient and inexpensive fast lube services, produce crude oil and natural gas, and manufacture safety lighting equipment for cars and trucks. The Heritage Life subsidiary markets credit life and indemnity insurance policies chiefly through auto dealers.
 -0- 1/4/94
 /CONTACT: R. Scott Keefer, vice president/finance and chief financial officer of Quaker State Corporation, 814-676-7825; or Timothy R. Trainer of Ketchum Public Relations, 412-456-3713, for Quaker State/
 (KSF)


CO: Heritage Life Insurance Company; Quaker State Corporation; Wescal
 Credit Insurance Agency ST: California, Pennsylvania IN: INS AUT SU:


KC -- PG003 -- 8755 01/04/94 08:32 EST
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Publication:PR Newswire
Date:Jan 4, 1994
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