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ORTHO MATTRESS FORMALLY EMERGES FROM CHAPTER 11 BANKRUPTCY: COMPANY'S SURVIVAL DEFIES ALL THE ODDS

 GARDENA, Calif., Dec. 29 /PRNewswire/ -- Ortho Mattress Inc. has formally emerged from voluntary Chapter 11 bankruptcy protection, defying the odds that indicate 95 percent of all furniture companies in Chapter 11 bankruptcy never survive.
 "Ortho has been able to beat the probabilities because the support from each of our employees and suppliers has been unwavering. Everyone has made substantial sacrifices so that our 35-year-old company can survive and continue to provide jobs for the community. I can't begin to express my thanks adequately to them," said Howard Roeder, Ortho president and chief operating officer.
 "We have survived, and we will continue to build on our reputation as California's largest factory direct retailer of bedding," Roeder added.
 Ortho filed a voluntary Chapter 11 bankruptcy petition on Dec. 4, 1991. Ortho, which earlier this month consolidated its corporate headquarters, manufacturing, warehousing and distribution operations into a single facility in Gardena (south of Los Angeles), makes quality mattresses and sells them and other bedding items at 43 factory-direct outlets in California. The company employs about 200 people statewide.
 As part of Ortho's recovery process, the facilities relocation and consolidation was completed on Dec. 21. The move provides direct integration between the manufacturing and distribution branches, opening the door for the introduction of new state-of-the-art manufacturing and distribution equipment. These new additions include the latest technology in conveyor systems, quilting machines, bagging machines and a multilevel racking system that provides greater product flow into and out of the facility.
 By combining management, manufacturing, warehousing and distribution under one roof, Ortho has streamlined its operations, implemented management changes and eliminated unnecessary product handling, allowing the company to operate more efficiently.
 On Oct. 21, 1992, U.S. Bankruptcy Judge William J. Laserow confirmed Ortho's reorganization plan. Under the plan, creditors' claims will be satisfied with new notes, two new classes of preferred stock and a new issue of common stock.
 -0- 12/29/92
 /CONTACT: Deanna Rowan of Ortho Mattress, 310-527-6555; or Les Kumagai, Hill and Knowlton, 213-937-7460/


CO: Ortho Mattress Inc. ST: California IN: SU: BCY

JB-LS -- LA022 -- 0473 12/29/92 20:12 EST
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Date:Dec 29, 1992
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