Heartstream, Inc.

Ticker: HTST		2401 Fourth Avenue, Suite 300
Exchange: NASDAQ-National Market		Seattle, Washington 98121
Industry: Manufacturing		(206) 443-7630

Type of Shares:	Common Shares	Filing Date:	12/1/95
U.S. Shares:	3,600,000	Offer Date:	1/31/96
Non-U.S. Shares:	0	Filing Range:	$11.00 - $13.00
Primary Shares:	3,600,000	Offer Price:	$13.00
Secondary Shares:	0	Gross Spread:	$0.91
Offering Amount:	$43,200,000	Selling:	$0.55
Expenses:	$700,000	Reallowance:	$0.10
Shares Out After:	10,799,028

Manager	Tier	Phone
UBS Securities Inc.	Lead Manager	(212) 230-4000
Cowen & Company	Co-manager	(212) 495-6000
Robertson, Stephens & Company	Co-manager	(415) 989-8500

Auditor: Ernst & Young
	Audited Income	Latest Unaudited Income	Prior Unaudited Income		Balance Sheet
	12/31/95	9/30/95			12/31/95
Revenue:	$0.00	$0.00		Assets:	$16.86
Net Income:	-$7.47	-$5.90		Liabilities:	$1.81
EPS:	-$1.01			Equity:	$15.05
Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year, unaudited figures are partial year

Business Description

The company is developing an automatic external defibrillator designed to improve survival rates from sudden cardiac arrest, the leading cause of death in the United States. The AED, the ForeRunner, will significantly expand the market for AEDs by broadening the group of emergency responders who can rapidly, reliably and cost-effectively deliver defibrillation therapy to victims of sudden cardiac arrest. The ForeRunner is being designed to make early defibfillation widely available. The ForeRunner incorporates proprietary technologies, such as the company's biphasic waveform technology and self-test features, which allow it to be easy to use, essentially maintenance free, small lightweight and inexpensive.

Use of Proceeds

The proceeds from the proposed offering will be used to fund product introductions, build a sales and marketing organization, continued research and development, working capital and other general corporate purposes.

Last updated: 10/28/96