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PROSPECT GROUP ANNOUNCES REPAYMENT OF WOOD RIVER CAPITAL CORPORATION'S DEBT

 NEW YORK, Jan. 7 /PRNewswire/ -- The Prospect Group, Inc. (NASDAQ: PROS) today announced that its wholly owned subsidiary, Wood River Capital Corporation, had completed the sale of 1,178,000 common shares of Stratacom, Inc. (NASDAQ: STRM) held by Wood River and had repaid all of its remaining debt and interest, totaling $10.8 million.
 Following the sale of the Stratacom shares and the repayment of indebtedness, Prospect estimates that the net ultimate realizable values of Wood River's other investments will exceed the $1.0 million value previously assigned to Wood River's equity.
 The valuation of Wood River's assets is currently under review in conjunction with Prospect's year-end closing. Prospect said that as of Dec. 31, 1991, Wood River had valued these assets at $3.8 million based on fair value method accounting, but that such values may be different in Prospect's statement of net assets in liquidation at Dec. 31, 1992, which is based upon generally accepted accounting principles as they apply to liquidation accounting, as well as changes in value stemming from the companies' operations during 1992.
 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 27 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 liquidation distributions in the foreseeable future.
 -0- 1/7/93
 /CONTACT: Donald R. Dwight of The Prospect Group, 203-661-8480/
 (PROS)


CO: The Prospect Group, Inc.; Wood River Capital Corporation ST: New York IN: SU:

PS-AH -- NY042 -- 2607 01/07/93 11:12 EST
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Publication:PR Newswire
Date:Jan 7, 1993
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