PAGE   
77                            LEVEL 1 - 12 OF 30 STORIES                           


                 Copyright 1992 PR Newswire Association, Inc.                                    
PR Newswire

                            October  5, 1992, Monday

SECTION: Financial News

DISTRIBUTION: TO BUSINESS EDITOR

LENGTH: 431 words

HEADLINE:  SEIDL TO RESIGN AT MAXXAM, KAISER ALUMINUM, KAISER ALUMINUM & 
CHEMICAL, AND PACIFIC LUMBER; HURWITZ, HUTCHCRAFT TO TAKE ON ADDED POSTS

DATELINE: HOUSTON, Oct. 5

KEYWORD: bc-MAXXAM-Kaiser-Alum 

 BODY:     MAXXAM Inc. (AMEX: MXM) announced today that, effective the 
end of the year, John M. Seidl will resign as  president of MAXXAM,  as 
chairman and chief  executive officer  of its subsidiary companies, 
Kaiser Aluminum Corp. (KAC) (NYSE: KLU) and Kaiser Aluminum & Chemical 
Corp. (KACC), and as chairman of MAXXAM-owned The Pacific Lumber Co.  
Seidl also will resign as a  director of  MAXXAM,  the Kaiser companies, 
and Pacific Lumber.

   Charles Hurwitz,  MAXXAM's  chairman and chief  executive officer,  
will take on the added positions of  president of MAXXAM  and chairman of 
Pacific Lumber. A.S. Hutchcraft, Jr., KAC and KACC president, will assume 
the added positions of chairman and chief executive officer of KAC and 
KACC.

   "I have been lucky enough to have held interesting and exciting 
leadership positions in a number of companies in American business and 
industry since 1978," Seidl said.  "Those fourteen years have been great 
fun.  I also have had the good fortune to have enjoyed challenging 
positions in the academic world and the federal government in Washington, 
D. C., before my business career.  1993 is the right year for me to 
reflect on all those experiences and decide how I wish to spend the next 
ten to fifteen years of my life."

   "Mick Seidl has made a major contribution to our organization, and we 
wish him well," Hurwitz said.  "We are very fortunate to have an 
individual of Steve Hutchcraft's experience and competence on board to 
move into Mick's Kaiser responsibilities."

   Seidl, 53, joined the MAXXAM organization in January of 1989 as 
chairman and chief executive officer of Kaiser Tech Ltd., the predecessor 
to KAC, and its operating subsidiary, KACC.  He was named president of 
MAXXAM and chairman of Pacific Lumber in 1990.  Seidl came to MAXXAM from 
Enron Corp., a diversified energy-based corporation, where he was 
president.

   Hutchcraft, 62, is a 36-year Kaiser veteran.  He has been president of 
KAC since 1988 and a director since 1991, and he has been president, 
chief operating officer, and a director of KACC since 1982.  Prior to 
1982, he served KACC in a variety of managerial capacities, including 
general manager of the Aluminum Raw Materials and Reduction Division and 
general manager of the Aluminum

                                                                       
PAGE   78                           PR Newswire, October 5, 1992                          


Fabricated Products Division. Hutchcraft is a graduate of Yale 
University.

   MAXXAM is a Fortune 200 company that operates in aluminum, through 
87.3-percent-owned KAC and KACC; forest products, through wholly owned 
Pacific Lumber; and real estate management and development through 
various subsidiaries.

ORGANIZATION: MAXXAM Inc.; Kaiser Aluminum; Kaiser Aluminum & Chemical; 
Pacific Lumber Co.

TICKER-SYMBOL: MXM; KLU

SUBJECT: Personnel Announcements

GEOGRAPHIC: California

CO:  KAISER ALUMINUM CORP; MAXXAM INC; PACIFIC LUMBER CO; 

TS:  KLU (NYSE); MXM (AMEX); 

IND:  324 ALUMINUM REFINING;                                                                        
PAGE   79                                                        PR 
Newswire

                          September  9, 1992, Wednesday

SECTION: Financial News

DISTRIBUTION: TO BUSINESS EDITOR

LENGTH: 152 words

HEADLINE:   MAXXAM  ELECTS  OFFICER 

DATELINE: HOUSTON, Sept. 9

KEYWORD: bc-MAXXAM-officer 

 BODY:     MAXXAM Inc. (AMEX: MXM) announced today that its board of 
directors has elected Ronald L. Reman to the newly created position of 
vice president, taxes.

   Reman, 34, had been the company's  director  of taxes since joining  
MAXXAM in 1986. Prior to that, he had been employed in the New York 
offices of Coopers & Lybrand and Price Waterhouse.

   Reman earned a B.S. in Accounting from Arizona State University in 
1977.  He is a New York State Certified Public Accountant.

   MAXXAM is a FORTUNE 500 company that operates in three industries: 
aluminum (through Kaiser Aluminum Corp., an 87.3 percent-owned, fully 
integrated aluminum producer); forest products (primarily through The 
Pacific Lumber Co., a wholly owned subsidiary); and real estate 
management and development (primarily through MAXXAM Property Co. and 
various wholly owned subsidiaries). CONTACT: Scott Lamb of MAXXAM, 
713-267-3826

ORGANIZATION: MAXXAM

TICKER-SYMBOL: MXM

SUBJECT: Personnel Announcements

GEOGRAPHIC: Texas

INDUSTRY: Mining; Metals




                                                                       
PAGE   80                            LEVEL 1 - 14 OF 30 STORIES                           


                           Houston Business Journal                                             
August  24, 1992

SECTION: Vol 22; No 14; Sec 1; pg 1

LENGTH: 1492 words

HEADLINE: Will County Bet on Racetrack Bonds?

BYLINE: Leah

DATELINE: Houston; TX; US

 BODY:    A group of businesspeople stands at the gate, tempting Harris 
County commissioners to place their bets on the proposed Sam Houston Race 
Park.

   Many of them are familiar names in Houston's business community, like 
Houston Astros owner John McMullen,  Maxxam  Inc. Chief  Executive 
Officer  Charles Hurwitz and plaintiff attorney John O'Quinn. Others are 
smaller players, hoping their days at the races will reap them a huge 
payoff.

   This partnership is asking county commissioners to spur a $ 198 
million bond issue that would buy them out of their racing license, 
making county taxpayers the owners of an ultra-modern horse racing 
palace. County commissioners are expected to vote on the deal Tuesday.

   The racing promoters claim the track would pump at least $ 3.5 million 
a year into county coffers for the next quarter century, draw $ 2 million 
worth of new drivers every year onto the Harris County Toll Road and 
create 1,500 jobs. They've promised it's a win-win proposition, without 
risk to county taxpayers.

   A closer look at the mechanics behind the deal reveals that this 
coalition of racetrack promoters--who have wagered little investment 
money--would hit a daily double worth more than $ 100 million. Other than 
the racetrack license itself, they would lose virtually nothing in 
exchange for a chance at a spectacular payoff.

   The gamble is more risky for Harris County. Taxpayers would indeed 
face no direct fiscal danger. The bonds would be backed only by track 
revenues, so if the facility fails the bondholders would have no legal 
recourse except to foreclose on the park.

   But financial experts who have analyzed the deal point out that a 
failed racetrack could significantly damage Harris County's bond rating. 
That would drive up interest rates the county pays on future bond issues.


   And although the racetrack promoters promise big payoffs for Harris 
County, they're keeping their feasibility studies a secret. Their 
economic impact numbers come from a KPMG Peat Marwick report, which they 
refuse to release to county officials or the public. And they base their 
$ 103 million asking price upon an Arthur Andersen & Co. study that 
supposedly values their license at $

                                                                       
PAGE   81                    Houston Business Journal, August 24, 1992                    


164 million--another study they refuse to release.

   Nonetheless, a laundry list of business groups is backing the deal, 
from The Greater Houston Partnership to the Greater Houston Convention & 
Visitors Bureau. Everyone from contractors to restaurateurs to travel 
agencies agrees the racetrack would be a boon to the economy of northwest 
Harris County.

   "Harris County, by owning that racetrack, creates tons of jobs, 
tourism, new industries and could make a ton of money off it to support 
other county services," says Gerald Holtzman, a major partner in the 
group that owns the license.

   HANDICAPPING THE DEAL

   Here's how the deal would work: Harris County would establish a 
five-member sports authority to build and operate the racetrack. The 
sports board would issue $ 198 million in tax-exempt bonds.

   Out of that $ 198 million, $ 65 million in first lien mortgage bonds 
would finance the track's construction and operation. Another $ 30 
million would pay back the bond buyers for the first two years, covering 
the debt payments until the track is built and starts generating 
revenues. The remaining $ 103 million in subordinate bonds would go to 
the racetrack promoters pitching this deal, basically compensating them 
for their license.

   After that, Harris County would own the license and the racetrack. The 
pony palace would be built and operated by the sports authority. Each 
county commissioner would appoint one member to the authority's board.

   No doubt, those appointments would be coveted political plums. These 
board members would dole out contracts for construction, concessions, 
management and any other lucrative business flowing from the racetrack.

   As the revenues flow in, the bond holders would have first claim. 
After the bond holders are paid, the county would receive its $ 3.5 
million guaranteed minimum profit. The promoters would be last in line to 
collect a cut.

   The track would have to net about $ 40 million a year to move into the 
black. After that, all of the profits would flow into the county 
treasury.

   The arrangement would be unlike anything in county history. The only 
comparable deal involves The Astrodome, which the county flatly leases to 
McMullen's Houston Sports Association. By contrast, HSA would operate the 
racetrack, but the county would collect an ongoing cut of the profits.

   "We've never seen a deal like this suggested or proposed before," says 
Assistant County Attorney Marsha Floyd. "It may murky the waters of a 
clean, non-profit governmental authority."

   However, there are comparable deals cooking in other parts of the 
state. In the Dallas suburb of Grand Prairie, voters narrowly passed a 
half-cent sales tax dedicated to building a racetrack. And in Selma, near 
San Antonio, revenue bonds have been authorized to pay for a $ 60 million 
track. In both cases, unlike Harris County, the local governments will 
not hold the license or operate the track.

                                                                       
PAGE   82                    Houston Business Journal, August 24, 1992                    


   A cautionary example of the dangers behind public financing of 
racetracks comes from Polk County, Iowa. In 1987, county officials there 
issued $ 40 million in bonds to build the Prairie Meadows Horse Racing 
Track. The bonds were supposed to be paid off with lease payments from 
the track operators. But the track failed, the bonds went into default 
and Polk County's bond rating was downgraded from "AA" to "A-" by 
financial institutions.

   That track has never been able to support itself since opening in 
1989. It has stayed afloat only because the county has kept it on a 
resuscitator with $ 9.3 million in government subsidies. Now Polk County 
officials want to issue general obligation bonds to pay off the racetrack 
debt. And a group of Polk County taxpayers is suing county officials to 
block them from issuing general obligation bonds to pay off the racetrack 
debt.

   Polk County voters never had a chance to approve their government's 
racetrack deal. Here in Houston, State Rep. Ron Wilson--an outspoken 
critic of the Sam Houston Race Park deal has called for a referendum.

   "This is worse than writing hot checks," he says. "And it's on 
somebody else's account."

   Skeptical criticism like that raises the hackles of racetrack partner 
Holtzman.

   "This is not a scam," Holtzman says. "This is a legitimate business 
opportunity. This a good deal for all involved."

   THE SURE BET

   That raises a significant question. If this is such a great deal, why 
are the racetrack's license owners willing to hand it over to the county?


   The answer is simple. Dealing with the county will be easier and much 
more profitable. Private financing would be more expensive and 
time-consuming. It would also force the racetrack's promoters to assume 
personal liability for the track's debts.

   Most importantly, without the county's help, there's a strong 
possibility the track will never be built. Bond experts say there's no 
assurance enough institutions would buy the bonds if they aren't 
tax-exempt.

   "There's not really a market for (private racetrack) bonds," says 
Steve Claiborne, a managing director with the Houston office of Lehman 
Brothers. "You can't call up a broker and place those bonds."

   Even some government-backed bonds are having trouble finding buyers in 
the current market. Indeed, Claiborne points out that the county's 
backing wouldn't necessarily make the Sam Houston Race Park bonds 
attractive enough to lure institutional investors.

   "The market is pretty smart," he says. "People who would buy these 
bonds are going to give these studies a one, two or 10 times look over."

   Holtzman admits the bonds would carry a higher risk than usual county 
bond issues. But he says the KPMG Peat Marwick projections should sell 
the project.

                                                                       
PAGE   83                    Houston Business Journal, August 24, 1992                    


   "The real issue, and the only issue, is should Harris County make 
money that way?...We say, 'Why not?'"

   County Commissioner Steve Radack has come up with plenty of reasons 
why the county should be cautious about this deal. He worries that the 
county would essentially lose control over the sports authority that 
would run the racetrack, creating the same type of troubles county 
commissioners like Radack have run into with the Harris County Hospital 
District. Besides, he says, running a racetrack is a complicated 
enterprise.

   "What are we going to have here?" Radack asks. "Are we going to be 
sitting in commissioners court settling gambling debts? If we have to 
decide a photo finish, imagine how many calls I'll get."

   Telephone calls have already been pouring into county offices. 
Commissioner Jerry Eversole says callers opposing the racetrack deal have 
outnumbered supporters by a 3-to-2 margin.

   While the bets for and against the racetrack still continue to trickle 
in, Eversole and his fellow commissioners are weighing the odds and 
preparing to make a decision on the bond issue this week.

SUBJECT: Racing; Local government; Investments; Government securities; 
Southwest

GEOGRAPHIC: Southwest Region; Houston; TX; US

COMPANY: Sam Houston Race Park; SIC: 7948

LOAD-DATE-MDC: September 22, 1992

 Extel Financial Limited                                      AFX News

                             July  14, 1992, Tuesday

SECTION: Company News; General Company News; Company News; General 
Company News

LENGTH: 129 words

HEADLINE: CONTINENTAL AIRLINES NEGOTIATING 350 MLN DLR SHARE SALE

 BODY:     COPENHAGEN (AFX) - Continental Airlines is negotiating to sell 
72 pct of  its shares for 350 mln U.S. dollars to Houston based investor 
group  Maxxam Inc, Continental's  partner  Scandinavian Airlines System 
said.     SAS spokesman Gerhard Dall said negotiations started last week, 
but are now being dealt with by Continental's creditors and the courts, 
which have to give approval before a deal can be struck, said Dall. 
Continental suspended  payments to creditors under Chapter 11 
legislation.     SAS holds a 100 mln dollar stake in Continental, bought 
in 1988 and 1990.  The stake is written down to zero, said Dall, but he 
said the investment is  still of benefit to SAS because of the traffic 
route possibilities it gives.

TICKER-SYMBOL: DKLK.EU

GEOGRAPHIC: United States; Denmark; Sweden

INDUSTRY: Aerospace


                                                                       
PAGE   85                            LEVEL 1 - 16 OF 30 STORIES                           


                                        The San Francisco Chronicle

                     JULY  14, 1992, TUESDAY, FINAL EDITION

SECTION: BUSINESS; Pg. B1

LENGTH: 1912 words

HEADLINE: Timber Firm Has Growth Problem Environmentalists stymie Pacific 
Lumber bid to harvest old-growth

SERIES: THE TIMBER INDUSTRY

BYLINE: Jeff Pelline, Chronicle Staff Writer

 BODY:     (Second of two parts)

   Few industries have undergone more changes or have been more in the 
public eye than the multibillion-dollar lumber industry in the Pacific 
Northwest. And no company has been more in the spotlight than Pacific 
Lumber.

   As the biggest private owner of old- growth redwoods, it has been a 
key target of environmentalists. And since it was taken over by an 
out-of-state conglomerate controlled by a multimillionaire Texas 
investor, the Scotia-based company has come to symbolize the 
more-controversial leveraged buyouts of the 1980s.

   In fewer than seven years, Charles Hurwitz, chief  executive  of 
Houston- based  Maxxam  Inc., has built an empire generating more than $ 
2.2 billion in annual revenues. Its principal assets include not only 
Pacific Lumber, but also Oakland-based Kaiser Aluminum. And last week, a 
Hurwitz-led group agreed to invest $ 350 million to buy a majority stake 
in Continental Airlines.

   When he bought Pacific Lumber Co. in 1985, Hurwitz saw the company as 
undervalued, with gratifyingly little debt and a dominant position in its 
market.

   But Hurwitz, 52, celebrated by some as an ingenious investor, didn't 
envision the controversy that would erupt from his plan to harvest the 
company's most valuable commodity over a 20- year period -- the largest 
remaining private stand of old-growth redwoods, some of which may be more 
than 2,000 years old. ''I clearly underestimated what would happen,'' 
Hurwitz said.

   Hurwitz wanted to double the company's timber cut to pare the 
acquisition debt. What he underestimated was the strength of the 
opposition from environmentalists. Lawsuits by environmental groups have 
blocked nine of the Hurwitz regime's plans to cut old- growth timber on 
2,500 acres.

   In addition, Pacific Lumber has temporarily agreed not to harvest a 
3,000-acre plot 10 miles southeast of Eureka known as the Headwaters 
forest, because of opposition from environmentalists. The company owns 
195,000 acres of timberland all told, but the old- growth acreage is the 
most valuable, according to Pacific Lumber President John Campbell.

                                                                       
PAGE   86                    The San Francisco Chronicle, JULY 14, 1992                   


   Industry consultants estimate that the timberland locked up in 
litigation is worth about $ 300 million, and the Headwaters forest is 
valued at $ 500 million to $ 700 million. Between them, these properties 
account for perhaps a third of the company's assets.

   ''We already have manipulated 96 percent of the forested area in 
California, so the ancient forests are critical to maintain those threads 
of diversity that existed beforehand,'' said Charles Powell, a director 
of EPIC, the environmental group that has filed numerous suits against 
Pacific Lumber. ''People also are touched by these forests -- many of 
them feel they are the embodiment of God's wonder.''

   Pacific Lumber is facing a new challenger to its harvesting plans: a 
coastal seabird called the marbled murrelet. In March, the California 
Department of Fish and Game decided to list the murrelet as an endangered 
species. Last month, Fish and Game inspectors reported that the company 
may have inadequately surveyed the bird's habitat before starting to cut 
a 240-acre stand of old-growth redwoods.

   Pacific Lumber says that it was in full compliance with harvesting 
regulations, but has agreed to stop cutting in the stand for at least a 
month, while it conducts further surveys. In the meantime, Pacific Lumber 
is suing the Fish and Game department, charging that the murrelet was 
listed on inconclusive evidence.

   Some wildlife biologists say that the black-brown-and-white- speckled 
bird poses a greater threat to timber harvesting than the spotted owl, 
because it seems to be more dependent on old- growth forests.

   The challenges to the company's timber-harvesting ''create some 
uncertainty, no doubt,'' said Pacific Lumber Chairman John Seidl, 
Hurwitz's hand-picked manager. ''But we think we're managing very well 
with that uncertainty.''

   Last month, the California Supreme Court agreed to review a case that 
environmental groups often cite in legally challenging timber-harvesting 
plans. In the case, which involved Pacific Lumber, the state appellate 
court ruled that regulators have the authority to require extensive 
wildlife surveys beyond those specified in timber- harvesting 
regulations.

   Many legal experts, mindful of recent property-rights rulings in other 
states, predict that the high court will scale back or overturn the 
lower-court decision, making it easier for the companies to harvest their 
timber. A decision is expected early next year.

   Pacific Lumber is looking to increase profits by cutting whatever 
trees it can. These include second- and third-growth redwoods and Douglas 
firs, and so-called residuals -- old-growth trees left standing from cuts 
made years ago.

   Last year, for the first time since Hurwitz bought Pacific Lumber, the 
company posted a decline in profits and revenues. Its operating income 
fell to $ 51.1 million from $ 61.8 million, while its revenues fell to $ 
192.2 million from $ 193.2 million. The company said that the declines 
stemmed largely from the recession, but also from increased regulatory 
costs.

   This year, earnings are rebounding. The company earned $ 11.9 million 
on sales of $ 47.2 million for the quarter ended March 31 -- up from $ 
8.5

                                                                       
PAGE   87                    The San Francisco Chronicle, JULY 14, 1992                   


million on revenues of $ 39.1 million for the year- earlier period.

   ''The tremendous cutback in federal land sales has made a huge 
difference in terms of prices and volumes for redwoods, so the first 
quarter has been unbelievably strong,'' Seidl said. ''We think this is 
going to be a strong year for us, and 1993 will be better.''

   An earthquake that struck the region in April -- and shut down one of 
the company's sawmills for about a month -- dampened second-quarter 
results. But higher prices are helping to offset the lower production, 
which fell about 4 million board feet below projections.

   Pacific Lumber has been expanding its operations. In February the 
company bought 300 acres of timberland -- property seized by the 
government after its previous owner was found guilty of growing 
marijuana.

   Two years ago, the company bought Arcata-based Britt Lumber, a major 
manufacturer of redwood fence-and-deck lumber. And last year it built a 
new, so-called edge-and-glue plant at Scotia, enabling it to make wood 
products from short and narrow boards that formerly were tossed out.

   The company's capital investments have totaled more than $ 100 million 
since Hurwitz took control, including a $ 50 million, 30-megawatt 
cogeneration power plant. The number of workers involved in lumber 
operations has increased by one-third -- to 1,250.

   On the other hand, the company's cutting and welding business, which 
had employed nearly 2,000 people in Southern California, Texas, Kansas 
and Massachusetts, was sold for $ 325 million in 1987 to cut debt. Its 
former headquarters building in San Francisco was sold for more than $ 30 
million.

   Pacific Lumber is seeking to strengthen its balance sheet. The company 
is negotiating with lenders this week to refinance its high debt load, 
which grew nearly 14- fold when Hurwitz took over.

   The debt has been cut by about $ 90 million -- to $ 545 million.  Cash 
flow has been averaging more than $ 90 million annually -- enough to 
cover the company's interest payments of about $ 70 million per year. A 
total of $ 377 million in debt becomes payable in 1995 and 1996, and the 
company plans to refinance that debt at a lower interest rate and extend 
the maturity dates.

   Pacific Lumber also is working to rebuild the company-owned town of 
Scotia. The town and the company's operations suffered an estimated $ 16 
million in earthquake damage three months ago. The shopping center and 45 
of 272 employee houses were damaged.

   The company expects to begin rebuilding the shopping center, which 
included a grocery store, hardware store, pharmacy and coffee shop, by 
the fall, and will complete the work in a year. All the homes should be 
repaired by the end of summer.

   Before the arrival of Hurwitz, it was Pacific Lumber's policy to never 
harvest more timber than it grew in any given year. The company also 
practiced selective harvesting, where the largest trees in a stand are 
periodically removed, leaving the younger ones to grow further. The 
practice is repeated

                                                                       
PAGE   88                    The San Francisco Chronicle, JULY 14, 1992                   


indefinitely, producing what lumbermen call an ''uneven-aged'' forest.

   ''We always took a very conservative look at our forests and the 
harvesting and managing of them,'' said Stan Murphy, whose family 
controlled the company before it was listed on the New York Stock 
Exchange.  When Maxxam took control, it abruptly doubled the cut to pay 
off debt, and stepped up the controversial practice of clear-cutting, 
where an entire stand of trees is removed down to the stump. Pacific 
Lumber was met by protests from environmental groups, who once had 
regarded the company as highly sensitive to their concerns. A group of 
former employees and local politicians support a new plan, called the PL 
take-back proposal, to slow down the cutting of old-growth trees and 
wrest the company from Hurwitz's control.

   Campbell defends the company's harvesting practices. Clear- cutting, 
he notes, is practiced on less than 10 percent of the company's 
timberland -- mainly where the land has been damaged by wind, fire or 
insects. It is widely practiced elsewhere in the industry, he adds.

   Campbell said that Pacific Lumber's harvesting, though increased, 
remains within the industry norm when considered as a percentage of total 
timber holdings. And in 20 years, Pacific Lumber plans to reduce its 
harvesting to pre-Hurwitz levels, he said.

   Most of the old-growth trees, he adds, are dying and should be cut 
down.  He also makes the point that the best of the redwoods -- some 
157,000 acres worth of virgin growth -- have been preserved in parks.

   Critics contend that Pacific Lumber's plan to eliminate its old- 
growth timber will lead to job cuts. Old-growth trees, generally defined 
as those more than 200 years old, are larger and harder to handle than 
others, and therefore more labor-intensive.

   Campbell concedes that jobs -- perhaps hundreds of them -- will be 
lost over a decade as the transition occurs. But he thinks most of the 
cuts will be achieved through attrition. He said that the company plans 
to expand its timberlands, which could mean added jobs.

   The issue of pension security has bedeviled the company and its 
employees. Last year, the trustee of Pacific Lumber's annuity plan, First 
Executive Life Insurance, went into bankruptcy protection.  Payments to 
more than 500 of the company's retirees were temporarily halted.  The 
U.S. Department of Labor filed suit against Maxxam, demanding that it 
cover any shortfall, and the company agreed.

   Hurwitz also has been criticized for using excess money in the 
company's old pension plan to partly finance his buyout of Pacific 
Lumber.

   Hurwitz has had rocky times elsewhere as well. He formerly served as 
chairman of United Financial Group, whose United Savings Association of 
Texas unit collapsed four years ago.

   Federal Deposit Insurance Corp., which oversees the savings- and-loan 
industry, has said that it is considering filing a $ 500 million- plus 
lawsuit against United Financial and its former officers, alleging that 
they are liable for breach of fiduciary duty.

                                                                       
PAGE   89                    The San Francisco Chronicle, JULY 14, 1992                   


GRAPHIC: PHOTO,Arthur Del Biaggio of Pacific Lumber pushed logs along the 
water toward a mill to be processed , BY DEANNE FITZMAURICE, THE 
CHRONICLE

TYPE: RELATED STORY

 SUBJECT: BUSINESS; LUMBER; ENVIRONMENT; TREES; LAWSUITS; CA; 
DEPARTMENTS; ENDANGERED SPECIES; BI

 NAME: Pacific Lumber; Ca. Department of Fish and Game