XeTel Corporation
(www.xetel.com)
Ticker: XTEL 2525 Brockton Drive
Exchange: NASDAQ-National Market Austin, Texas 78758
Industry: Manufacturing (512) 834-2266

Type of Shares:Common Shares Filing Date:11/21/95
U.S. Shares:2,000,000 Offer Date:2/13/96
Non-U.S. Shares:0 Filing Range:$9.00 - $11.00
Primary Shares:2,000,000 Offer Price:$8.00
Secondary Shares:0 Gross Spread:$0.56
Offering Amount: $20,000,000 Selling:$0.30
Expenses:$650,000 Reallowance:$0.10
Shares Out After:8,427,418
Spin out parent firm: Rohm U.S.A., Inc.

ManagerTierPhone
Prudential Securities IncorporatedLead Manager (212) 214-3000
Needham & CompanyCo-manager (212) 371-8300

Auditor: Price Waterhouse
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
4/1/95 12/30/95 12/31/94 12/30/95
Revenue:$64.51$83.05$46.96Assets:$39.63
Net Income:$0.94$3.80$0.64Liabilities:$31.39
EPS:$0.14$0.52$0.10Equity:$8.24

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

Business Description
The company provides advanced design and prototype services, manufactures sophisticated surface mount assemblies and supplies turnkey solutions to original equipment manufacturers primarily in the telecommunications, networking and computer industries. The company's design and prototype services support customers in the product development phase and assist in their efforts to reduce time to market and time to volume as well as production costs. The company believes that as a result of providing design and prototype services, it is well positioned to provide value added manufacturing of products through production volumes. The company employs advanced surface mount technologies and manufacturing processes, and has developed capabilities in next-stage technologies such as ball grid array. XeTel incorporates its design and prototype services and assembly capabilities, together with materials management, advanced testing and systems integration services, to provide turnkey solutions for its customers. These include Aspect Telecommunications, Dell Computer, Ericsson, Motorola, Optical Data Systems, 3Com/Primary Access, VTEL and Westinghouse Electric.

Use of Proceeds
The company intends to use approximately $10.1 million of the net proceeds to repay all of its outstanding indebtedness to Rohm. The balance of the net proceeds from the offering will be used for working capital and other general corporate purposes.

Last updated: 10/28/96

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