ArthroCare Corporation

Ticker: ARTC		595 North Pastoria Avenue
Exchange: NASDAQ-National Market		Sunnyvale, California 94086
Industry: Manufacturing		(408) 736-0224

Type of Shares:	Common Shares	Filing Date:	12/14/95
U.S. Shares:	2,200,000	Offer Date:	2/5/96
Non-U.S. Shares:	0	Filing Range:	$11.00 - $13.00
Primary Shares:	2,200,000	Offer Price:	$14.00
Secondary Shares:	0	Gross Spread:	$0.98
Offering Amount:	$26,400,000	Selling:	$0.56
Expenses:	$800,000	Reallowance:	$0.10
Shares Out After:	8,131,600

Manager	Tier	Phone
Robertson, Stephens & Company	Lead Manager	(415) 989-8500
Volpe, Welty & Company	Co-manager	(415) 956-8120

Auditor: Coopers & Lybrand
	Audited Income	Latest Unaudited Income	Prior Unaudited Income		Balance Sheet
	12/31/95				12/31/95
Revenue:	$0.22			Assets:	$7.80
Net Income:	-$6.95			Liabilities:	$1.48
EPS:	-$1.00			Equity:	$6.33
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, manufactures and markets arthroscopic equipment for use in orthopedics. The company's product is designed to replace the multiple surgical tools used in arthroscopic procedures with one multi-purpose electrosurgery system that ablates soft tissue while simultaneously achieving homeostasis. This allows the surgeon to remove damaged tissue while reducing the frequent exchange of instruments that is common in arthroscopic procedures. The company intends to apply its proprietary ablation technology to a broad range of soft tissue surgical procedures in the fields of urology, gynecology, dermatology, and plastic, oral and general surgery.

Use of Proceeds

The proceeds from the proposed offering will be used to increase manufacturing capacity, expanding sales and marketing, and fund research and development and for working capital and other general corporate purposes.

Last updated: 10/28/96