EXHIBIT 99.1

Contact:  Microelectronic Packaging, Inc.
          Denis J. Trafecanty, Senior Vice President and Chief Financial
          Officer
          (619) 292-7000, ext. 3014

                                                           FOR IMMEDIATE RELEASE

                      MICROELECTRONIC PACKAGING ANNOUNCES
           $15 MILLION IN DEBT FORGIVENESS AGREEMENTS WITH CREDITORS

     San Diego, California -- May 4, 1998 -- Microelectronic Packaging, Inc.
("MPI" or the "Company") (OTC Bulletin Board: MPIX) today announced that it has
reached either definitive or non-binding settlement agreements with creditors
holding approximately 80% of the $29 million in Asian debt incurred by the
Company's Singapore subsidiaries that had been guaranteed by the Company.
Specifically, creditors holding more than a majority of the $29 million in such
debt have signed definitive, binding agreements, including the Company's largest
creditor, and creditors holding an additional 25% of such debt have either
signed non-binding written letters of intent or verbally agreed to a settlement
of the obligations owed to them.  The agreements currently signed or otherwise
agreed would result in debt and accrued interest forgiveness of approximately
$15 million.  Also, there are other non-cash considerations being provided to
certain creditors. The non-binding written letters and verbal agreements are
subject to the execution of definitive agreements between the Company and those
creditors and completion of these settlements can not be assured.  The Company
will be required to obtain funds in the next several months in order to comply
with the payment terms of the settlement agreements and achieve the debt and
accrued interest forgiveness described above.  Negotiations continue with the
creditors representing the remaining 20% of total debt.  Approximately half of
this remaining debt could be settled by further liquidation of the Company's
assets at the closed Singapore subsidiaries, which assets serve as security for
the remaining debt.

     Andrew K. Wrobel, President and Chief Executive Officer, said "The signed
definitive agreements with creditors holding a majority of the debt of our
liquidated subsidiaries in Singapore will assist MPI in completing the
restructuring of the debt with the remainder of our Asian creditors.

 
     "MPI has conducted extensive discussions with all of its liquidated
subsidiaries' Asian creditors.  Building on the definitive settlement agreements
already signed with Asian creditors, MPI intends to obtain definitive agreements
with the remaining Asian creditors to completely restructure the $29 million in
Asian debt.  All such creditors are being asked to agree to the settlement
proposal offered in order to preserve the principal and accrued interest
reductions already offered to the Company."

     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 manufacturing facility, the Company develops,
manufactures, markets and sells multichip modules to customers in the IC,
communications, automatic test equipment and other electronics-related
industries.

     The Company is currently attempting to restructure its debt associated with
discontinued operations.  The Company's ability to successfully restructure will
depend in large part upon the cooperation of its various creditors, lenders,
equity holders and other.  There can be no assurance that such restructuring
will be completed successfully.  The Company's business is also subject to other
risk factors, including the dependence on a limited number of customers and the
ability to fund any increased growth in its business or for the satisfaction of
its debt obligations.