Medirisk, Inc.
Ticker:MDMD Two Piedmont Center, Suite 400 3565 Piedmont Road, N.E.
Exchange:NASDAQ-National Market Atlanta, GA 30305
Industry:Service (SIC Code 7389) (404) 364-6700

Offering Information
Type of Shares:Common Shares Filing Date:9/19/96
U.S. Shares:2,300,000 Offer Date:1/28/97
Non-U.S. Shares:0 Filing Range:$11.00 - $13.00
Primary Shares:2,300,000 Offer Price:$11.00
Secondary Shares:0 Gross Spread:$0.77
Offering Amount: $27,600,000 Selling:$0.42
Expenses:$750,000 Reallowance:$0.10
Shares Out After:5,218,251

Primary Underwriting Group
ManagerTierPhone
Smith Barney Inc.Lead Manager (212) 723-7300
Dean Witter ReynoldsCo-manager (212) 392-3223
Equitable Securities CorporationCo-manager (615) 780-9380
Jefferies & Company IncorporatedCo-manager (212) 903-2342

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Alston & Bird
Bank's Law Firm: Dewey Ballantine

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
12/31/95 6/30/96 6/30/95 6/30/96
Revenue:$3.65$3.87$1.16Assets:$7.79
Net Income:-$0.83-$6.78-$0.79Curr Assets:
EPS:-$0.29-$2.38Liabilities:$12.22
Prior EPS:-$0.15Curr Liabilities:
Cash Flow/Oper:Equity:-$4.43
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company is a leading provider of proprietary databases and related decision support software and analytical services to the healthcare industry. The company's products and services enable payers and providers to make objective comparisons of the financial costs and clinical outcomes of physician-mediated services to customer-specific and industry benchmarks and to access information concerning specific physicians. Such capabilities assist payers and providers in pricing managed care contracts, evaluating physician fee schedules and utilization of physician-mediated services, comparing provider outcomes and performance, and recruiting physicians. Medirisk actively sells its products to over 750 major customers, including leading health plans, insurers, hospitals and larger physician groups, as well as to more than 700 smaller customers, including single-specialty physician groups.

Competition
The company faces intense competition in providing healthcare information products and services. Competitors vary in size, scope and breadth of product and service offerings. The company competes with different competitors in each of its target markets, and certain of such competitors have substantially greater resources than those of the cmpany. In addition, several large horizontally integrated information services companies, including Dow Jones, Dun & Bradstreet Corporation, First Data Corporation, National Data Corporation and Thomson Publishing, have developed and are marketing information products and services to the health care industry.

Business Plan
The company's objective is to enhance its position as a leader provider of proprietary databases and related decision-support software and analytical services to payers, providers and other health care industry participants in the United States. To attain this objective, Medirisk seeks to: 1) leverage its existing customer base; 2) emphasize recurring revenues; 3) develop new products; 4) acquire complementary products and businesses.

Use of Proceeds
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