Arterial Vascular Engineering, Inc.
Ticker: AVEI 5355 Skylane Boulevard
Exchange: NASDAQ-National Market Santa Rosa, California 95403
Industry: Manufacturing (707) 525-0111

Type of Shares:Common Shares Filing Date:2/1/96
U.S. Shares:5,000,000 Offer Date:4/2/96
Non-U.S. Shares:0 Filing Range:$15.00 - $17.00
Primary Shares:3,500,000 Offer Price:$21.00
Secondary Shares:1,500,000 Gross Spread:$1.47
Offering Amount: $80,000,000 Selling:$0.84
Expenses:$850,000 Reallowance:$0.10
Shares Out After:30,103,269

ManagerTierPhone
Cowen & CompanyLead Manager (212) 495-6000
Bear, Stearns & Co. Inc.Co-manager (212) 272-2000
J.P. Morgan Securities Inc.Co-manager (212) 648-9922

Auditor: Coopers & Lybrand
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
6/30/95 12/31/95 12/31/94 12/31/95
Revenue:$17.14$21.71$4.80Assets:$23.62
Net Income:$6.64$9.63$1.83Liabilities:$3.52
EPS:$0.24$0.35$0.07Equity:$20.10

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, manufactures and markets a variety of stent systems and balloon agioplasty catheters for the treatment of coronary artery disease. The company's stents are used as arterial support devices in connection with balloon abioplasty or other minimally invasive treatments of atherosclerosis (the formation of deposits in the arteries) and to prevent abrupt closure of vessels in higher-risk angioplasty procedures. The company commenced operations in 1991 and began marketing its balloon angioplasty catheters in October 1994. To date, the company has sold over 43,000 stent systems and over 23,000 balloon angioplasty catheters in more than 30 countries outside the United States, including Germany, France and the United Kingdom. The company expects international sales to account for all its revenues for at least the next two years.

Use of Proceeds
The proceeds from the proposed offering will be used to fund sales and marketing activities, research and development, clinical trials, expansion of facilities and for working capital and other general corporate purposes.

Last updated: 10/28/96

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