Gateway Data Sciences Corporation
Ticker: GDSC 3410 E. University Drive, Suite 100
Exchange: NASDAQ-National Market Phoenix, Arizona 85034
Industry: High-Tech (602) 968-7000

Type of Shares:Common Shares Filing Date:11/1/95
U.S. Shares:1,250,000 Offer Date:3/20/96
Non-U.S. Shares:0 Filing Price:$6.75
Primary Shares:1,250,000 Offer Price:$6.75
Secondary Shares:0 Gross Spread:$0.68
Offering Amount: $8,437,500 Selling:$0.34
Expenses:$724,500 Reallowance:$0.10
Shares Out After:2,793,199

ManagerTierPhone
National Securities Corp.Lead Manager (206) 622-7200
Norcross Securities, Inc.Co-manager (602) 234-5555

Auditor: Arthur Andersen
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
1/31/95 10/31/95 10/31/94 10/31/95
Revenue:$20.71$19.98$14.78Assets:$8.46
Net Income:$0.57$0.79$0.34Liabilities:$10.21
EPS:$0.39$0.50$0.24Equity:-$1.76

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

Business Description
The company develops software products and provides related customer support services. The Company utilizes its knowledge and understanding of retail and warehouse operations as well as its extensive expertise in specific software applications, systems, and networking to develop specific product solutions that address the needs of its customers. The Company also provides full-service product installation, customization, modification, maintenance, and training. The Comapny's current application software systems operate primarily on state-of-the-art hardware platforms manufactured by IBM, including the AS/400 midrange computer system and the IBM 4694 point-of-sale system. The Company has developed its newest software applications, and intends to modify its previously developed software applications, to operate on open architecture, client/server systems.

Use of Proceeds
The proceeds from the proposed offering will be used to provide capital required to accelerate the transition of the company's business focus, including development of new software applications, enhancements to existing applications, and migration of existing software applications to open architecture platforms; to expand marketing and sales operations; to retire outstanding indebtedness; to provide funds for capital expenditures; and to provide working capital.

Last updated: 10/28/96

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