Transcrypt International, Inc.
Ticker:TRII 4800 NW 1st Street
Exchange:NASDAQ-National Market Lincoln, NE 68521
Industry:Manufacturing (SIC Code 3663) (402) 474-4800

Offering Information
Type of Shares:Common Shares Filing Date:10/18/96
U.S. Shares:2,900,000 Offer Date:1/22/97
Non-U.S. Shares:0 Filing Range:$12.00 - $14.00
Primary Shares:2,500,000 Offer Price:$8.00
Secondary Shares:400,000 Gross Spread:$0.56
Offering Amount: $37,700,000 Selling:$0.31
Expenses:$900,000 Reallowance:$0.10
Shares Out After:9,283,078

Primary Underwriting Group
ManagerTierPhone
Dain Bosworth IncorporatedLead Manager (612) 371-2818
Furman Selz IncorporatedCo-manager (212) 309-8285

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Manatt, Phelps and Phillips
Bank's Law Firm: Sherman & Howard

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 9/30/96 9/30/95 9/30/96
Revenue:$8.13$9.28$5.36Assets:$10.89
Net Income:-$0.84-$2.56-$0.92Curr Assets:
EPS:-$0.12-$0.38-$0.13Liabilities:$4.37
Prior EPS:Curr Liabilities:
Cash Flow/Oper:Equity:$6.52
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company is a leading designer and manufacturer of information security products which enable users to prevent unauthorized access to sensitive voice and data communications. The company focuses on developing and providing information security products for telecommunications markets, including the land mobile radio, telephony and data security markets. the company's products are based on a wide range of proprietary analog scrambling and digital encryption technologies. The company's core technologies offer a number of significant benefits including high levels of information security and sound quality, high speed, real time data transmission, low power consumption, small size and cost effective manufacturing.

Competition
The markets for information security and LMR products are highly competitive. Significant competitive factors in these markets include product quality and performance, including the effectiveness of security features and the quality of the resulting voice or data signal, the development of new products and features, price, name recognition and the quality and experience of sales, marketing and service personnel. A number of companies currently offer add-on scramblers for LMRs that compete with the company's add-on information security products, including Selectone Corp., Midian Electronics Inc. and MX-COM Inc.

Business Plan
The company believes that its expertise in both analog and digital information security, including the ability to provide "dual-mode" analog and digital security in the same product, provides a competitive advantage as communication products migrate from analog to digital technology. The company's strategy to accomplish its objective includes the following elements: 1) develop new products based on existing core technologies; 2) offer complete secure product solutions; 3) LMR securities; 4) telephony security.

Use of Proceeds
The proceeds from the proposed offering will be used for repayment of indebtedness, working capital and general corporate purposes, including enhancement of the company's sales and distribution capabilities and expansion of existing manufacturing facilities, and potential acquisitions of complementary businesses, products or technologies.

©1997 IPO Data Systems, Inc. - All rights reserved.