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MICROPROSE, INC. ANNOUNCES PRELIMINARY RESULTS FOR FIRST QUARTER

 HUNT VALLEY, Md., Aug. 18 /PRNewswire/ -- MicroProse, Inc. (NASDAQ: MPRS) today announced preliminary results for the first fiscal quarter of 1994 ended June 30, 1993. The company expects to report a net loss of approximately ($8,300,000) or ($1.24) loss per share compared to a prior year loss of ($1,312,000) or ($0.19) loss per share recorded for the corresponding period in the prior year. Included in the first quarter 1994 loss are restructuring charges relating to the acceleration of the company's transformation time table to focus on niche simulation and strategy games for the IBM PC and video game markets, whereby certain products in development have been abandoned and may not be completed or marketed by the company. The discontinuance of these products, related staff separation costs, facility closing expenses and capitalized software development expenditures will be provided for in the financial statements in the amount of approximately $4,400,000 million. These restructuring actions will result in a substantial decrease in ongoing fixed costs.
 Also affecting the year-to-year decrease in earnings was the substantial increase in general and administrative expense as a result of increased professional costs and fees associated with financing transactions and other business activities of the company, as well as increased costs of goods sold as a result of a sales mix of products with higher costs of goods and increased amortization of software development costs.
 Today's announced restructuring has reduced the company's worldwide work force by approximately 30 percent to approximately 240 employees, which coupled with the previous restructuring in March of 1993, has resulted in an overall reduction of approximately 40 percent.
 Last month, the company announced that it had entered into a merger agreement with Spectrum HoloByte, Inc. Upon the consummation of the merger, each share of Spectrum common stock outstanding will be exchanged for .6 of a share of the company's common stock and the stockholders of Spectrum would own, in the aggregate, approximately 60 percent of the outstanding common stock of the company. The merger is subject to customary closing conditions, including the receipt by the company of a fairness opinion from its investment bankers. As reported earlier, in June of 1993 Spectrum invested $10 million in the company in the form of a convertible note.
 The company also announced the resignation of John W. Stealey, Sr. as chairman of the board. In addition, Frank Murnane, in a letter to the board, indicated that he was resigning as a board member so that the board could maintain an even balance of MicroProse and Spectrum HoloByte members.
 The company also announced the appointment of Stephen Muirhead as president of U.S. operations. Mr. Muirhead's recent experience includes a consulting assignment with the BBC, as well as responsibility for Technicolor's European operations. Prior to that, he was responsible for international operations for Hanna-Barbera, and had held a number of senior positions over an 18 year period with Fisher-Price, including general manager of their Canadian subsidiary and vice president-sales & marketing for Europe. Mr. Muirhead has recently accepted a position with Spectrum HoloByte as vice president for Europe, before being named as president of U.S. operations for MicroProse.
 -0- 8/18/93
 /CONTACT: Ronald J. Bueche, chief executive officer, 410-771-6722, or fax, 410-785-8963, Gerard R. Blair, vice president-marketing, 410-771-6720, or fax, 410-785-8963, both of MicroProse/
 (MPRS)


CO: MicroProse, Inc. ST: Maryland IN: CPR SU: ERN

SM-LG -- NY012 -- 3812 08/18/93 09:50 EDT
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Publication:PR Newswire
Date:Aug 18, 1993
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