Digital Transmission Systems, Inc.
Ticker: DTSX 3000 Northwoods Parkway, Building 330
Exchange: NASDAQ-Small Cap Market Norcross, Georgia 30071
Industry: Manufacturing (770) 798-1300

Type of Shares:Common Shares Filing Date:12/20/95
U.S. Shares:1,070,000 Offer Date:3/4/96
Non-U.S. Shares:0 Filing Range:$6.00 - $8.00
Primary Shares:1,070,000 Offer Price:$7.50
Secondary Shares:0 Gross Spread:$0.75
Offering Amount: $7,490,000 Selling:$0.38
Expenses:$829,600 Reallowance:$0.10
Shares Out After:3,770,000
Spin out parent firm: Peregrine Ventures II, L.P.

ManagerTierPhone
Barington Capital Group, L.P.Lead Manager (212) 974-5722

Auditor: Price Waterhouse
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
6/30/95 12/31/95 12/31/94 12/31/95
Revenue:$10.23$4.64$4.29Assets:$6.56
Net Income:$0.41-$1.00-$0.07Liabilities:$3.88
EPS:$0.13-$0.34Equity:$2.68

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

Business Description
The company designs, manufactures, markets and services a broad range of products for the telecommunications industry. The company's primary customers are long distance carriers and wireless service providers, including those offering cellular telephone services and Personal Communications Services, and include MCI. Sprint, Dail Call, AirTouch and PCS PrimeCo L.P. The company's products, consisting of proprietary software and hardware modules, facilitate the control, monitoring and efficient transmission of high speed digital information through public or private telecommunications networks. The company's network access to public and private networks and various telecommunications services including voice and high speed data transmission, the Internet and video and desktop conferencing. The company's network control products enable service providers to detect degradation on their networks so that appropriate action may be taken in advance of service interruption.

Use of Proceeds
The company intends to use the net proceeds of this offering from the date of closing of this offering as follows: 1) $2.2 million - Product Development, 2) $1.4 million - Sales and Marketing, 3) $800,000 - Capital Expenditure, 4) $200,000 - Facilities Expansion, 5) $200,000 - Payment of Accrued Preferred Stock Dividends and 6) $1,592,900 - Working Capital.

Last updated: 10/28/96

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