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L.A. GEAR ANNOUNCES RESOLUTION OF CUSTOMS CLAIMS

 L.A. GEAR ANNOUNCES RESOLUTION OF CUSTOMS CLAIMS
 LOS ANGELES, Oct. 30 /PRNewswire/ -- L.A. Gear Inc. (NYSE: LA)


announced today that it has reached an agreement with the U.S. Attorney for the District of Massachusetts regarding the resolution of all customs claims arising with respect to the importation of footwear from Taiwan during 1986 and 1987 through an independent agent. Pursuant to such agreement, a subsidiary of the company will enter a guilty plea in the United States District Court in Boston, Mass., with respect to two counts charging the underpayment of duties on such shipments. The agreement also provides that the U.S. Attorney will recommend that no criminal fines be imposed on the company or its subsidiary. The plea agreement is subject to court approval. The court is not obligated to follow the recommendations of the U.S. Attorney. A hearing date has not yet been set by the court.
 In addition, the company's subsidiary paid $1.3 million in settlement of all potential civil claims arising from the 1986 and 1987 shipments from Taiwan. The settlement will not result in a charge against earnings in the current fiscal year as a sufficient reserve had previously been established during the 1991 fiscal year in connection with the customs matter.
 Stanley P. Gold, chairman of the board of L.A. Gear, said, "The events and activities which gave rise to the customs investigation by the federal authorities took place under the company's prior management. The plea agreement and related civil settlement allow us to put ancient history behind us. We are confident that the improvements in the company's internal auditing procedures and policies enacted by L.A. Gear's new management team will serve to prevent the recurrence of incidents of this nature."
 L.A. Gear Inc. is a leading designer, developer and marketer of a broad range of quality athletic and casual/lifestyle footwear.
 -0- 10/30/92
 /CONTACT: Michael Sitrick or Jeff Lloyd of Sitrick and Co., 310-788-2850, for L.A. Gear/
 (LA) CO: L.A. Gear Inc. ST: California IN: TEX SU:


BP-JL -- LA036 -- 7350 10/30/92 17:26 EST
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Publication:PR Newswire
Date:Oct 30, 1992
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