UNITED STATES OF AMERICA BEFORE THE SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 34-38895 \ August 1, 1997 The Securities and Exchange Commission announced the temporary suspension, pursuant to Section 12(k) of the Securities Exchange Act of 1934 ("Exchange Act"), of over-the-counter trading of the cancelled common stock, common stock options and partnership interests of Discovery Zone, Inc. ("Discovery"), NASDAQ Symbol ZONEQ, of Ft. Lauderdale, Florida, at 3:30 p.m. (EDT) on August 1, 1997, and terminating at 3:29 p.m. (EDT) on August 15, 1997. The order of suspension of trading does not affect any securities issued by Discovery pursuant to Discovery's Reorganization Plan which became effective July 29, 1997 ("the Plan"). The Commission temporarily suspended trading in the cancelled securities of Discovery because of a lack of adequate information concerning Discovery. On July 29, 1997, Discovery emerged from Chapter 11 bankruptcy protection. Under the Plan, all of the common stock, common stock options and partnership interests existing as of the date of the bankruptcy petition, March 25, 1996, were cancelled, annulled and extinguished as of the effective date of the Plan, July 29, 1997. Despite press releases and notification by the company that Discovery's common stock was cancelled and no longer represented any economic or beneficial value, the daily trading volume of Discovery's common stock was approximately six million shares and four million shares for July 30, 1997 and July 31, 1997, respectively, the two days following the cancellation of the common stock. Trading of the common stock was continuing today. The Commission cautions broker-dealers, shareholders and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by Discovery. Further, brokers and dealers should be alert to the fact that, pursuant to Rule 15c2-11 under the Exchange Act, at the termination of the trading suspension, no quotation may be entered unless and until they have strictly complied with all of the provisions of the rule. If any broker or dealer has any questions as to whether or not it has complied with the rule, it should not enter any quotation but immediately contact the staff of the Securities and Exchange Commission in Washington, D.C. If any broker or dealer is uncertain as to what is required by Rule 15c2-11, it should refrain from entering quotations relating to Discovery's securities until such time as it has familiarized itself with the rule and is certain that all of its provisions have been met. If any broker or dealer enters any quotation which is in violation of the rule, the Commission will consider the need for prompt enforcement action. If any broker-dealer or other person has any information which may relate to this matter, the Midwest Regional Office of the Securities and Exchange Commission should be telephoned at (312)353-7390.