A 4646 - August 29, 1997
P&S 4217

TO: ALL PARTICIPANTS

ATTENTION: MANAGING PARTNER, P&S MANAGER OPERATIONS PARTNER, CASHIER

SUBJECT: DISCOVERY ZONE CUSIP 25468B107

As referenced in a joint NSCC/DTC Important Notice dated August 15, 1997, both organizations made the above issue ineligible for processing in their respective systems. Members were advised that a separate notice would be issued regarding the status of open CNS POSITIONS. NSCC has considered a number of alternatives on how to best handle this issue. NSCC has concluded that exiting the issue from CNS is the most appropriate action. Accordingly, effective with the close of business on August 28, 1997, NSCC will exit from the CNS system all positions in Discovery Zone (CUSIP # 25468B107) at the current system price of $.12. Participants are reminded that the Bankruptcy Court issued an order which effectively canceled all outstanding shares effective 12:01 a.m. July 29, 1997.

Questions regarding this notice may be directed to the undersigned at

(212) 412-8655
Thomas K. McCarthy
Managing Director
Operations