Optical Sensors, Incorporated
Ticker: OPSI 7615 Golden Triangle Drive, Suite A
Exchange: NASDAQ-National Market Minneapolis, Minnesota 55344
Industry: Manufacturing (612) 944-5857

Type of Shares:Common Shares Filing Date:12/1/95
U.S. Shares:2,500,000 Offer Date:2/14/96
Non-U.S. Shares:0 Filing Range:$11.00 - $13.00
Primary Shares:2,500,000 Offer Price:$13.00
Secondary Shares:0 Gross Spread:$0.91
Offering Amount: $30,000,000 Selling:$0.52
Expenses:$500,000 Reallowance:$0.10
Shares Out After:7,877,417

ManagerTierPhone
Alex. Brown & Sons IncorporatedLead Manager (410) 727-1700
Hambrecht & Quist IncorporatedCo-manager (415) 576-3423
Volpe, Welty & CompanyCo-manager (415) 956-8120

Auditor: Ernst & Young
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 12/31/95
Revenue:$0.00Assets:$6.37
Net Income:-$8.13Liabilities:$0.59
EPS:-$1.05Equity:$5.78

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

Business Description
The company has developed the SensiCath system, a patient attached, on demand arterial blood gas monitoring system, which provides precise and accurate results within 60 seconds without removing blood from the patient. The company believes that the SensiCath System is the first analyzer that will be integrated into both an arterial pressure monitoring line and a critical care patient monitoring system. The SensiCath system utilizes a disposable, fiber optic sensor device connected to a small modular instrument that can be configured to integrate with bedside monitoring systems or to serve as a standalone monitor. Arterial blood gas tests measure oxygen, carbon dioxide and acid-base in a sample of blood taken from a patient's artery. These three parameters are the front line indicators of the patient's ability to absorb and use oxygen and as such are the most frequently requested and urgently needed diagnostic tests for medically unstable patients in intensive care units and operating rooms.

Use of Proceeds
The company intends to use approximately $6.9 million of the net proceeds to fund sales and marketing activities relating to the launch of the SensiCath System, approximately $3.1 million to expand manufacturing capacity, approximately $13.4 million to fund development of additional configurations of the SensiCath System and other research and development programs and the remainder for working capital and general corporate purposes.

Last updated: 10/28/96

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