EXHIBIT 10.85

                       PRESS RELEASE DATED MARCH 3, 1997

 
Companies (MPIX)                                                    Page 1
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                                                                   BUSINESS WIRE

NEW MICROELECTRONIC PACKAGING MANAGEMENT TEAM ANNOUNCES CHANGES
IN CORPORATE STRUCTURE

Monday, March 03, 1997 8:11:00 AM EST
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SAN DIEGO--(BUSINESS WIRE)--March 3, 1997--Microelectronic Packaging,Inc. ("MPI"
or the "Company") (Nasdaq National Market: MPIX) today announced that as a 
result of an intensive review of its opportunities and operations which was 
conducted by its new management team, it is making the following changes in its 
corporate structure.

Effective immediately, the company is liquidating its MPM Singapore Pte. Ltd. 
subsidiary which had been the vehicle through which the company was 
developing multi-layer packaging technology pursuant to a licensing agreement 
with IBM. This course of action has been decided upon primarily as the result of
the combination of changing market conditions since the origination of the 
licensing agreement and IBM's unwillingness to agree to changes in the agreement
required by these market changes. 

Simultaneously, the company is continuing its previously announced restructuring
within another Singapore subsidiary, Microelectronic Packaging (S) Pte. Ltd. 
(MPS), through which it conducts its pressed ceramic packaging activity. This 
ongoing activity includes asset write-downs and a workforce reduction. It may 
also involve placing that subsidiary under "Judicial Management" which gives the
company the ability to organize MPS's creditors under Singapore law. Should that
occur, MPI expects that this subsidiary will emerge from the Judicial Management
process within 90 to 180 days.

These actions along with other balance sheet changes will be reflected in an 
approximate $30 million charge to 1996 operating results, which will result in a
significant loss for the full year. These actions will place the company and 
several of its subsidiaries in default of its and its subsidiaries' debt and 
other significant obligations, all of which may have a material adverse effect 
on the company. However, the company is currently in negotiation with various 
creditors, lenders, equity holders and others in these two off-shore 
subsidiaries and in the company, which is the guarantor of most of the 
obligations in these subsidiaries, and currently anticipates an acceptable 
resolution. All possibilities for dealing with these parties are being pursued, 
including a potential conversion of significant portions of the debt into the 
company's equity. The company will end 1996 with a negative net worth which 
might affect its National Market listing.

The company's board of directors is currently completing its comprehensive 
business plan review and is evaluating the company's continuing business 
operations and other opportunities relative to future growth plans.

Microelectronic Packaging, Inc. is a leading international semiconductor 
packaging company with design services, manufacturing and sales capability to 
support the device packaging and electronic systems interconnection requirements
of integrated circuit (IC) and electronic systems manufacturers. At its San 
Diego, California headquarters and Singapore manufacturing facilities, the 
company develops, manufactures, market and sells pressed ceramic packages and 
multichip modules to customers in the IC, communications, automatic test 
equipment and other electronics-related industries.

Any forward looking statements in this news release involve risks and 
uncertainties. The company's actual results could differ materially from those 
anticipated in any such forward looking statements as a result of many factors, 
including those set forth in the company's quarterly report on Form 10-Q for the
quarter ended September 30, 1996, and the Form 10-K for the year ended December 
31, 1995, both available from the chief financial officer of the company at 9350
Trade Place, San Diego, California 92126. The company's ability to successfully 
restructure will depend in large part upon the cooperation of its various 
creditors, lenders, equity holders and others. There can be no assurance that 
such structure will be completed successfully.

(C) Business Wire. All rights reserved.

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