Yurie Systems Inc.
Ticker:YURI 10000 Derekwood Lane
Exchange:NASDAQ-National Market Latham, MD 20706
Industry:Manufacturing (SIC Code 3669) (301) 352-4600

Offering Information
Type of Shares:Common Shares Filing Date:11/7/96
U.S. Shares:4,000,000 Offer Date:2/5/97
Non-U.S. Shares:0 Filing Range:$10.00 - $11.00
Primary Shares:4,000,000 Offer Price:$12.00
Secondary Shares:0 Gross Spread:$0.84
Offering Amount: $42,000,000 Selling:$0.47
Expenses:$600,000 Reallowance:$0.10
Shares Out After:24,608,400

Primary Underwriting Group
ManagerTierPhone
Alex. Brown & Sons IncorporatedLead Manager (410) 895-2700
Wessels, Arnold & HendersonCo-manager (612) 373-6105

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Fried, Frank, Harris, Shriver & Jacobson
Bank's Law Firm: Piper & Marbury
Auditor: Deloitte & Touche

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 9/30/96 9/30/95 9/30/96
Revenue:$5.97$15.04$3.96Assets:$11.03
Net Income:$0.90$2.74$0.42Curr Assets:
EPS:$0.04$0.13Liabilities:$7.19
Prior EPS:Curr Liabilities:
Cash Flow/Oper:Equity:$3.84
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company designs, manufactures and services asynchronous transfer mode ("ATM") access products for the telecommunications service providers, corporate end users and government end users. ATM is a standard for packaging and switching digital information which facilitates high speed information transmission with a high degree of efficiency. End users of telecommunications services have traditionally maintained separate wide area networks for transmitting voice, data, video and other electronic information among geographically dispersed locations. ATM technology is conducive to consolidating these networks. The network consolidation brought about by employing ATM access products can provide savings in WAN communication costs and simplify network management. Yurie is a leading supplier of ATM access products. The company's LDR100, introduced in February 1995, was on of the first commercially available ATM access products.

Competition
While the market for ATM access products is still evolving, the networking industry as a whole is intensely competitive. Among the companies who have already produced ATM access products are ADC Kentrox and OnStream Networks, which was recently acquired by 3Com. In addition, Sahara Networks is reportedly developing an ATM access product. Other companies, including Cisco Systems/StrataCom, Cascade Communications, General DataComm and Newbridge Networks, have already developed networking equipment that may be competitive with the company's products.

Business Plan
The company's objective is to become the leading provider of ATM access equipment to both telecommunications service providers and end users. They key elements of Yurie's strategy are as follows: 1) maintain technology leadership; 2) focus on ATM access solutions; 3) develop both the telecommunications service provider and corporate end user markets; 4) pursue international markets; 5) build and leverage strategic relationships.

Use of Proceeds
The proceeds from the proposed offering will be used for general corporate purposes.

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