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L.A. GEAR ANNOUNCES SETTLEMENT AGREEMENTS

 SANTA MONICA, Calif., Dec. 29 /PRNewswire/ -- L.A. Gear, Inc. (NYSE: LA) today announced that settlement agreements have been reached between the plaintiffs and the individual defendants in three separate consolidated shareholder securities class actions and two related shareholder derivative actions pending in the United States District Court for the Central District of California. These settlements are subject to court approval.
 The settlements provide for the payment to the plaintiff classes of $29.8 million, of which $500,000 is payable by the Company. Upon court approval of the settlements, the Company will receive $3.2 million in settlement of the derivative actions.
 The $500,000 payable by the Company in connection with the new settlements is in addition to the cash and Common Stock paid by the Company pursuant to a separate settlement reached with the plaintiffs in July 1992. None of the individual defendants in the class actions were parties to that separate settlement.
 In connection with the settlements announced today, the appeal filed by three of the individual defendants in the class actions with respect to the Company's July settlement has been dismissed with prejudice. Accordingly, the Company's settlement of the class actions has become final.
 Stanley P. Gold, Chairman of the Board of L.A. Gear, said, "These additional settlements complete the process started in July of this year with the Company's separate settlement of the class actions and provide for a global resolution of the class and derivative actions".
 The class and derivative actions were brought in 1990 and 1991 on behalf of persons who purchased L.A. Gear Common Stock during the periods August 2, 1989, through June 1, 1990, June 4, 1990, to January 21, 1991, and July 2, 1991, through July 25, 1991, and allege, among other matters, violations of U.S. securities laws by the Company and certain of its present and former officers and directors.
 The settlements announced today do not constitute an admission by any of the defendants that the allegations against such defendants in the class and derivative actions have any merit.
 L.A. Gear, Inc. is a leading designer, developer and marketer of a broad range of quality athletic and casual/lifestyle footwear.
 -0- 12/29/92
 /CONTACT: Michael Sitrick or Sandra Sternberg of Sitrick And Company, 310-788-2850, for L.A. Gear/
 (LA)


CO: L.A. Gear Inc. ST: California IN: TEX SU:

JB-LS -- LA019 -- 0441 12/29/92 17:53 EST
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Publication:PR Newswire
Date:Dec 29, 1992
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