Lexington Healthcare Group Inc.
Ticker:LEXI 35 Park Place
Exchange:NASDAQ-National Market New Britain, CT 06052
Industry:Service (SIC Code 8059) (860) 223-6902

Offering Information
Type of Shares:Common Shares Filing Date:11/8/96
U.S. Shares:1,125,000 Offer Date:5/19/97
Non-U.S. Shares:0 Filing Range:$5.00 - $6.00
Primary Shares:1,125,000 Offer Price:$5.00
Secondary Shares:0 Gross Spread:$0.50
Offering Amount: $6,187,500 Selling:
Expenses:$450,000 Reallowance:
Shares Out After:4,500,000

Primary Underwriting Group
ManagerTierPhone
Mason Hill & CompanyLead Manager

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Gersten, Savage, Kaplowitz & Curtin
Bank's Law Firm: Schneck Weltman Hashmall & Mischel
Auditor: Eisner, Richard A.
Registrar/Transfer Agent: Continental Stock Transfer & Trust Co

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
6 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
6/30/96 12/31/96 12/31/95 12/31/96
Revenue:$33.64$17.45$16.94Assets:$10.16
Net Income:$0.27$0.14$0.43Curr Assets:
EPS:$0.09$0.04$0.14Liabilities:$9.17
Prior EPS:$0.17$2.86$1.00Curr Liabilities:
Cash Flow/Oper:$1.17Equity:$0.99
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company is a long-term and subacute care provider, which operate four nursing home facilities with 628 licensed beds in the States of Connecticut. The Facilities provide a broad range of healthcare services, including nursing care, subactue care, including rehabilitation therapy and other specialized services. In addition, the company has recently begun to offer a variety of products and services to non-affiliated long-term care facilities. The company's strategy in healthcare is to integrate the main disciplines of nursing, pharmacy, social services and other therapies under one program. The Facilities are leased pursuant to a long-term lease from a partnership of which Jack Friedler, the company's principal stockholder, Chief Executive Officer and Chairman of the Board, is a 33.33% limited partner. The individuals owning the remaining portion of the partnership are shareholders of PRN. The four nursing facilities were previously operated as traditional nursing homes by Beverly Enterprises, an unrelated entity which previously leased the facilitates from the company's current landlord.

Use of Proceeds
The proceeds from the proposed offering will be used for repayment of certain indebtedness, the acquisition of PRN, the establishment of institutional pharmaceutical services, the expansion rehabilitation and nursing home services and working capital.

©1997 IPO Data Systems, Inc. - All rights reserved.