Prism Solutions, Inc.
(www.prismsolutions.com)
Ticker: PRZM 1000 Hamlin Court
Exchange: NASDAQ-National Market Sunnyvale, California 94089
Industry: High-Tech (408) 752-1888

Type of Shares:Common Shares Filing Date:2/8/96
U.S. Shares:2,170,000 Offer Date:3/14/96
Non-U.S. Shares:0 Filing Range:$8.00 - $10.00
Primary Shares:2,000,000 Offer Price:$17.00
Secondary Shares:170,000 Gross Spread:$1.19
Offering Amount: $19,530,000 Selling:$0.70
Expenses:$1,100,000 Reallowance:$0.10
Shares Out After:12,842,990

ManagerTierPhone
Alex. Brown & Sons IncorporatedLead Manager (410) 727-1700
Cowen & CompanyCo-manager (212) 495-6000
Hambrecht & Quist IncorporatedCo-manager (415) 576-3423

Auditor: Coopers & Lybrand
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 12/31/95
Revenue:$17.76Assets:$10.49
Net Income:-$2.74Liabilities:$8.44
EPS:-$0.25Equity:$2.05

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

Business Description
The company designs, develops, markets and supports data warehouse management software products. Data warehouses are separate databases that store historical data which is collected from an enterprise's existing operational computer systems, then integrated and transformed for use in business analysis and decision making. The Company's products enable its customers to develop and maintain their data warehouses more quickly than by manual programming methods. By using the Company's products, customers can build an initial data warehouse in as little as three to six months and significantly reduce ongoing maintenance costs. Most large organizations store data in a number of operational systems dedicated to specific functions such as finance or manufacturing. These operational systems were developed to automate transactions and generate business records capable of being processed and stored electronically.

Use of Proceeds
The company expects to use a portion of the net proceeds for repayment of indebtedness to a bank. The company also expects to use approximately $5 million of the net proceeds for research and development, approximately $4.5 million to expand its European sales operations and approximately $1..5 million for capital expenditures. The company expects to use the remainder of the net proceeds for general corporate purposes, including working capital and expansion of the company's sales, marketing and customer support organizations.

Last updated: 10/28/96

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