Homecom Communications, Inc.
(www.homecom.com)
Ticker:HCOM Building 14, Suite 100 3535 Peidmont Road
Exchange:NASDAQ-Small Cap Market Atlanta, GA 30305
Industry:High-Tech (SIC Code 7371) (404) 237-4646

Offering Information
Type of Shares:Common Shares Filing Date:9/18/96
U.S. Shares:1,000,000 Offer Date:5/6/97
Non-U.S. Shares:0 Filing Range:$6.00 - $7.00
Primary Shares:1,000,000 Offer Price:$6.00
Secondary Shares:0 Gross Spread:$0.48
Offering Amount: $6,500,000 Selling:$0.26
Expenses:$797,500 Reallowance:$0.10
Shares Out After:2,956,396

Primary Underwriting Group
ManagerTierPhone
Ladenburg, Thalmann & Co. Inc.Lead Manager (212) 409-2300

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Morris, Manning & Martin
Bank's Law Firm: Willkie Farr & Gallagher
Auditor: Coopers & Lybrand
Registrar/Transfer Agent: American Stock Transfer & Trust Co

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/96 12/31/96
Revenue:$2.30Assets:$1.73
Net Income:-$0.63Curr Assets:
EPS:-$0.33Liabilities:$2.35
Prior EPS:$0.00Curr Liabilities:
Cash Flow/Oper:-$0.22Equity:-$0.62
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
HomeCom develops and markets specialized software applications and products and provides services that enable businesses to use the Internet and Intranets to obtain and communicate important business information. HomeCom provides Internet/Intranet solutions in five areas: customized software applications design, development and integration; World Wide Web site development; Internet outsourcing services; specialized Internet-enabled software products; and security consulting and integration services. HomeCom's objective is to be a leading provider of business communications solutions using Internet standard protocol technologies. According to International Data Corporation, the number of Internet users with Web access increased from 1.1 million in 1994 to 8.3 million in 1995 and is expected to reach 31.4 million by end of 1996. IDC estimates that the number of individuals worldwide with access to the Internet will reach approximately 200 million by the end of 1996.

Competition
The market for specializied Internet applications and products is highly competitive, and the ocmpany expects that this competition will intensify in the future. In providing specialized software design and development services, companies that have developed and market application specific Internet software products, companies that provide software tools that enable customers to develop specific Internet-enabled software applications and companies that choose to develop Internet application products internally. Companies that offer and sell client/server based Internet-enabled software products, such as Netscape and Microsoft, may in the future bundle software capabilities and applications with existing products in a manner which may limit the need for software capabilities and application services such as those offered by the company. The company also competes with the information technology departments of significant business enterprises who may choose to design and develop their Internet applications internally. The emergence of sophisticated software products and tools that enable companies to build customized Internet-enabled software applications internally also may have the effect of encouraging internal development and, thus may materially reduce the demand for the company's custom software application services.

Business Plan
The company's objective is to be a leading provider of business communications solutions using Internet standard protocol technologies. The company intends to achieve this position by implementing the following key elements of its growth strategy: (I) Develop and Market Industry-Specific Applications, (ii) Expand Software Product Development, (iii) Develop and Integrate Advanced Security Services and (iv) Expand by Acquisition.

Use of Proceeds
The proceeds from the proposed offering will be used for general corporate purposes principally additions to working capital, continued product development, repayment of indebtedness and possible future acquisitions.

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