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PROSPECT GROUP ANNOUNCES DISTRIBUTION OF CHILDREN'S DISCOVERY CENTERS TRUST INTEREST

 PROSPECT GROUP ANNOUNCES DISTRIBUTION OF CHILDREN'S DISCOVERY
 CENTERS TRUST INTEREST
 NEW YORK, Oct. 27 /PRNewswire/ -- The Prospect Group, Inc. (NASDAQ: PROS) today announced the proposed distribution of Trust Units representing ownership of 493,125 shares of Children's Discovery Centers of America, Inc. (NASDAQ: CDCRA) common stock to its shareholders in accordance with Prospect's previously announced plan of complete liquidation and dissolution. The record date of the distribution will be Nov. 23.
 Prospect shareholders will receive units representing approximately one-fiftieth of a share of CDC for each share of Prospect stock held by them (approximately two CDC shares per 100 Prospect shares). The trust is being created in lieu of outright distribution of the CDC stock for several reasons, principally the limited number of CDC shares outstanding and the limited float. As conditions in the future warrant, the trust will distribute the shares to unit owners or will sell the shares in the market, in a private placement or in an underwritten public offering, or a combination of these options. It is expected that the sale or distribution will be completed by the end of 1995.
 Prospect shareholders will receive an information statement describing the transaction including tax matters at the time of the distribution, scheduled for the week of Dec. 7. The units will be recorded in the books of the trust and will not be represented by certificates or other documents sent to the shareholders. The units are non-transferable except by will, the laws of the intestacy, or by operation of law.
 Children's Discovery Centers is one of the country's leading day care companies, operating 100 facilities in 13 states with a licensed capacity for approximately 8,500 children. Revenues in 1991 were approximately $20 million and revenues for the first six months of 1992 were 6.5 percent ahead of the same period a year ago. The company, headquartered in San Rafael, Calif., has 1,833,604 shares outstanding, of which Prospect owns 26.9 percent.
 On Aug. 20, 1990, Prospect distributed the bulk of its assets to its shareholders under a plan of complete liquidation and dissolution adopted by the shareholders on June 27th of that year. Subsequently Prospect distributed additional assets. In accordance with its previously announced policy to retain sufficient assets to defray corporate obligations and expenses and to provide for contingencies, Prospect does not anticipate making additional liquidating distributions in the foreseeable future.
 -0- 10/27/92
 /CONTACT: Donald R. Dwight of Prospect Group, Inc., 203-661-8480/
 (PROS) CO: Prospect Group, Inc. ST: New York IN: SU:


TM-KW -- NY006 -- 5191 10/27/92 08:50 EST
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Publication:PR Newswire
Date:Oct 27, 1992
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