TearDrop Golf Company
Ticker:TDRP 32 Bow Circle, Building #1
Exchange:NASDAQ-Small Cap Market Hilton Head Island, South Carolina 29928
Industry:Manufacturing (803) 686-4995

Type of Shares:Common Shares Filing Date:10/23/96
U.S. Shares:1,250,000 Offer Date:12/20/96
Non-U.S. Shares:0 Filing Price:$4.75
Primary Shares:1,250,000 Offer Price:$4.50
Secondary Shares:0 Gross Spread:$0.45
Offering Amount: $5,937,500 Selling:$0.23
Expenses:$350,000 Reallowance:$0.10
Shares Out After:1,900,000

ManagerTierPhone
GKN SecuritiesLead Manager (212) 509-3800

Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 9/30/96 9/30/95 9/30/96
Revenue:$1.06$0.82$0.72Assets:$0.64
Net Income:-$0.54-$0.29-$0.37Liabilities:$2.38
EPS:-$0.72-$0.39-$0.50Equity:-$1.74

Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year,
unaudited figures are partial year

Business Description
The company designs, develops and markets high-quality, premium-priced golf clubs based on its proprietary technologies, including its TearDrop-Registered Trademark- line of putters and its new line of Spin Master-TM-wedges. The TearDrop putter is used by professional golfers on the Professional Golf Association Tour, the PGA Senior Tour and the Nike Tour including Brett Ogle, Dustin Phillips, Dino Lucchesi, Dennis Zinkon and P.J. Cowan. The TearDrop putter achieved a top-ten ranking on both the PGA Tour and the PGA Senior Tour for victories and top-ten finishes in 1995 among all putters used. The company believes that its products address the demand for innovative short-game clubs that has not been adequately met by the golf equipment industry, which recently has stressed technological advancement in the design of drivers. With increasing sales, golf equipment manufacturers have invested more in research and development, designing clubs by combining new materials and technologies with advanced remodeling, testing and manufacturing techniques in order to provide golfers with clubs that allow for greater distance and control.

Use of Proceeds
The proceeds from the proposed offering will be used for its marketing and advertising activities, to repay indebtedness to NationsBank of South Carolina, to improve its manufacturing operations and for research and development, for working capital and for general corporate purposes.

Last updated: 12/29/96

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