QualMark Corporation
Ticker: QMRK 1329 W. 121st Avenue
Exchange: NASDAQ-Small Cap Market Denver, Colorado 80234
Industry: Manufacturing (303) 254-8800

Type of Shares:Common Shares Filing Date:2/21/96
U.S. Shares:1,350,000 Offer Date:4/8/96
Non-U.S. Shares:0 Filing Price:$3.75
Primary Shares:1,350,000 Offer Price:$3.75
Secondary Shares:0 Gross Spread:$0.38
Offering Amount: $5,062,500 Selling:$0.23
Expenses:$340,000 Reallowance:$0.00
Shares Out After:3,195,484

ManagerTierPhone
Summit Investment CorporationLead Manager (612) 338-1400

Auditor: Price Waterhouse
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 12/31/95
Revenue:$4.03Assets:$1.94
Net Income:-$0.12Liabilities:$1.68
EPS:-$0.05Equity:$0.27

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

Business Description
The company designs, manufactures and markets proprietary systems which rapidly and efficiently induce product design and manufacturing related failures, thereby providing manufacturers the necessary information to improve product quality. The company's patented physical stress systems allow manufacturers to quickly and comprehensively determine the true operating limits of their products, enabling them to reduce design costs, improve product reliability, shorten time to market, reduce warranty costs, and extend warranty periods. The company's systems are used by manufacturers in a wide range of industries to perform stress testing on a variety of electronic and electro-mechanical products including circuit boards, blood glucose monitors, flight navigation systems, cellular telephones, airbag sensors, and consumer electronics products. The company's OVS physical stress system applies extreme thermal fluctuations and severe vibration to a manufacturer's product to generate information which is used to improve product quality. The company's system is used to perform stress techniques, commonly referred to as HALT and HASS, developed by the company's founder.

Use of Proceeds
Proceeds from the proposed offering will be used to repay debt, expand test centers, purchase fixed assets, expand sales and marketing and for working capital.

Last updated: 10/28/96

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