CALIFORNIA - News from Feb. 3, 1987

Republican candidate Ed Zschau, who last fall led an unsuccessful campaign against Alan Cranston for the U.S. Senate, has rejoined System Industries Inc., the company he founded in 1968.

Zschau will serve as chairman, replacing Eugene R. White, who will remain a director and consultant to the Milpitas company. Zschau will also become a director, replacing Timothy M. Pennington III on the board. James K. Dutton continues as president and chief executive of the company, which last year had sales of $103 million.

Zschau left the high-technology company in February, 1982, to run for the U.S. House of Representatives, where he served two terms.

He recently became a general partner in Brentwood Associates, a venture-capital firm based in Los Angeles, and will open a branch office in Silicon Valley.