Logal Educational Software and Systems Ltd.
Ticker: LOGLF Upper Galilee
Exchange: NASDAQ-National Market Kiryat Shmona, Foreign
Industry: High-Tech 9726951652

Type of Shares:Ordinary Shares Filing Date:2/14/96
U.S. Shares:1,500,000 Offer Date:3/20/96
Non-U.S. Shares:400,000 Filing Range:$10.00 - $12.00
Primary Shares:1,900,000 Offer Price:$8.00
Secondary Shares:0 Gross Spread:$0.56
Offering Amount: $20,900,000 Selling:$0.28
Expenses:$1,100,000 Reallowance:$0.10
Shares Out After:5,700,000

ManagerTierPhone
Lehman Brothers IncorporatedLead Manager (212) 640-6129
Oppenheimer & Company, Inc.Co-manager (212) 667-7402

Auditor: Ernst & Young
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 12/31/95
Revenue:$5.10Assets:$4.29
Net Income:-$1.08Liabilities:$4.16
EPS:-$0.29Equity:$0.13

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

Business Description
The Company designs, creates, publishes and markets interactive, simulation-based, educational software and laboratory probeware products for science and math curriculums in high schools and colleges. The Company currently markets 27 product titles which are based on an "active" approach to learning and enable students and teachers to control, manipulate, and visually experience real-time simulations in the areas of biology, chemistry, physics and math. In addition, the Company offers 22 probeware products that complement the Company's science product line and are used for computer-based experiments. All of the Company's products are available for both Microsoft Windows and Apple Macintosh operating environments. To date, over 3,500 schools in the United States have purchased the Company's products. The Company sells its products through its own sales force and through distributors, including Computer Curriculum Corporation, a subsidiary of Viacom Inc. and a leading supplier of integrated computer systems to schools. The Company also bundles its products for sale by Apple Computer, Inc. and has established strategic alliances with major educational publishers such as Prentice-Hall, Inc. and Houghton Mifflin Company for the integration of textbook content with interactive software titles to be sold with these companies' textbooks.

Use of Proceeds
From the proceeds the company intends to repay approximately $1.8 million in outstanding principal amount of Israeli Government-backed loans. The company also anticipates using the net proceeds as follows: approximately 10% to 20% for expansion of its marketing activities, approximately 10% to 20% for additional research and product development and the remainder for working capital and general corporate purposes.

Last updated: 10/28/96

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