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MCORP REPORTS SECOND QUARTER FINANCIAL RESULTS

 DALLAS, Aug. 17 /PRNewswire/ -- MCorp today reported a net loss of $2.7 million for the second quarter of 1993 compared with net income of $4.9 million for the second quarter of 1992. MCorp has completed the sale of all of its banking subsidiaries except for one. MCorp is currently the subject of a voluntary reorganization case under Chapter 11 of the United States Bankruptcy Code.
 The MCorp's second quarter 1993 net loss of $2.7 million resulted primarily from interest income of $2.9 million offset by interest expense of $.1 million and non-interest expense of $5.5 million.
 The net income of $4.9 million reported in the second quarter of 1992 resulted primarily from a $7.9 million gain on the settlement of certain pre-petition liabilities at less than their recorded amounts. Excluding this gain, MCorp had a loss from continuing operations of $3.1 million, primarily resulting from interest income of $4.1 million offset by interest of $.2 million and non-interest expense of $5.7 million.
 On April 9, 1993 MCorp filed revised plans for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The disclosure statement was approved by the court on May 18, 1993. An overwhelming majority of the creditors voted to accept the plans and hearings on the plans were concluded in July, 1993. The plans generally provide for the liquidation of all three companies.
 MCorp (Pacific Stock Exchange: M.P) is a Texas-based financial services organization.
 MCORP AND SUBSIDIARIES
 Condensed Consolidated Balance Sheets
 (Dollars in thousands, except per share amounts )
 6/30/93 6/30/92 12/31/92
 Assets:
 Cash and cash equivalents $ 329,597 $ 298,050 $ 314,216
 Assets held for sale:
 Other investments 19,954 54,920 31,486
 Land and other real estate owned 10,089 15,491 12,165
 Loans and other 2,321 6,446 3,428
 Other assets 9,167 11,350 13,773
 Total $ 371,128 $ 386,257 $ 375,068
 Liabilities and stockholders' deficit
 Liabilities:
 Accounts payable and accrued
 liabilities $ 22,832 $ 24,894 $ 20,895
 Other liabilities 17,952 18,142 18,163
 Long-term debt 3,124 7,663 7,663
 Liabilities deferred pursuant
 to Chapter 11 reorganization
 proceedings:
 Long-term debt 459,417 465,538 459,417
 Other liabilities 43,366 44,822 43,366
 Total liabilities 546,691 561,059 549,504
 Stockholders' deficit:
 Preferred stock; $1.00 par value;
 20,000,000 shares authorized; 959,920
 shares issued; aggregate liquidation
 preference $234,095, $227,847 and
 $231,496, respectively 960 960 960
 Common stock; $5.00 par value;
 100,000,000 shares authorized;
 42,790,257 issued 13,951 213,951 213,951
 Capital surplus 596,957 596,957 596,957
 Accumulated deficit (983,572) (982,811) (982,445)
 Treasury stock, at cost;
 218,660 shares (3,859) (3,859) (3,859)
 Total stockholders' deficit (175,563) (174,802) (174,436)
 Total $ 371,128 $ 386,257 $ 375,068
 The accompanying notes are an integral part of the financial statements.
 MCORP AND SUBSIDIARIES
 Condensed Consolidated Statements of Operations
 (Dollars in thousands, except per share amounts)
 Periods ended Three Months Six Months
 June 30 1993 1992 1993 1992
 Interest income $ 2,921 $ 4,059 $ 6,147 $ 7,459
 Other income -- 71 -- 73
 Total income 2,921 4,130 6,147 7,532
 Interest expense 114 203 228 406
 Personnel expense 766 1,190 1,280 3,142
 Net occupancy expense 37 37 74 78
 Professional fees 3,647 3,381 5,040 7,635
 Net realized losses, (gains),
 writedowns and expenses of
 investments and other assets
 held for sale 204 329 (961) 349
 Other expense 806 789 1,613 1,902
 Total expense 5,574 5,929 7,274 13,512
 Loss from continuing operations
 before claims settlements (2,653) (1,799) (1,127) (5,980)
 Claims settlements -- (1,300) -- (1,300)
 Loss from continuing
 operations (2,653) (3,099) (1,127) (7,280)
 Extraordinary item:
 Gain on settlements of pre-
 petition debt and interest
 payable, net of tax -- 7,975 -- 7,975
 Net income (loss) $(2,653) $ 4,876 $(1,127) 695
 Per common share (A):
 Loss from continuing
 operations $ (0.06) $ (0.07) $ (0.03) $ (0.17)
 Net income (loss) (0.06) 0.12 (0.03) 0.02
 (A) Common stockholders may not receive a distribution from the bankrupt estate of MCorp.
 The accompanying notes are an integral part of the financial statements.
 -0- 8/17/93
 /CONTACT: W. Mack Goforth of MCorp, 214-939-5892/


CO: MCorp ST: Texas IN: FIN SU: ERN

SM -- NY024 -- 3439 08/17/93 09:39 EDT
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Date:Aug 17, 1993
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