IRIDEX Corporation
Ticker: IRIX 340 Pioneer Way
Exchange: NASDAQ-National Market Mountain View, California 94041
Industry: Manufacturing (415) 962-8100

Type of Shares:Common Shares Filing Date:1/17/96
U.S. Shares:2,550,000 Offer Date:2/15/96
Non-U.S. Shares:0 Filing Range:$8.00 - $10.00
Primary Shares:1,600,000 Offer Price:$9.00
Secondary Shares:950,000 Gross Spread:$0.63
Offering Amount: $22,950,000 Selling:$0.38
Expenses:$825,000 Reallowance:$0.10
Shares Out After:5,942,919

ManagerTierPhone
Wessels, Arnold & HendersonLead Manager (612) 373-6121
Pacific Crest Securities Inc.Co-manager (503) 248-0721

Auditor: Coopers & Lybrand
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 12/31/95
Revenue:$8.80Assets:$6.40
Net Income:$1.00Liabilities:$1.71
EPS:$0.22Equity:$4.69

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

Business Description
The company is the leading worldwide provider of semi-conductor based laser systems used to treat eye diseases, including the three leading causes of irreversible blindness. The company's current OcuLight Diode Laser Photocoagulator system consists of a small, portable infrared console and interchangeable delivery devices, including disposable products. Since 1990, more than 1000 OcuLight Systems have been sold worldwide, primarily to hospitals for use by ophthalmic specialists. In 1996, the company plans to introduce a new semiconductor based visible light laser photocoagular system designed to appeal to the broader office based ophthalmology market. The company believes that its systems are more portable, more economical and have a greater degree of reliability and flexibility than competing photocoagular systems which use traditional vacuum tube based technology.

Use of Proceeds
The proceeds of this offering are expected to be used for general corporate purposes, including working capital and expansion of the company's product development, sales and marketing. During fiscal 1996, the company expects to spend approximately $1.2 million of the proceeds to expand its sales and marketing activities and approximately $300,000 to approximately $400,000 of the proceeds to expand research and development activities. Pending the use of the net proceeds for the above purposes, the company intends to invest such funds in investment-grade obligations, including short-term, interest bearing money market funds.

Last updated: 10/28/96

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