Reality Interactive, Inc.
Ticker: RINT 11200 W. 78th Street, Suite 300
Exchange: NASDAQ-Small Cap Market Eden Prairie, Minnesota 55344
Industry: High-Tech (612) 996-6777

Type of Shares:Common Shares Filing Date:2/21/96
U.S. Shares:2,200,000 Offer Date:4/10/96
Non-U.S. Shares:0 Filing Range:$5.50 - $6.00
Primary Shares:2,200,000 Offer Price:$5.75
Secondary Shares:0 Gross Spread:$0.46
Offering Amount: $12,650,000 Selling:$0.27
Expenses:$275,000 Reallowance:$0.05
Shares Out After:4,570,511

ManagerTierPhone
R.J. Steichen & Co.Lead Manager (612) 341-6200

Auditor: Price Waterhouse
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 12/31/95
Revenue:$0.05Assets:$0.58
Net Income:-$2.77Liabilities:$0.49
EPS:-$0.81Equity:$0.08

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 and markets interactive multimedia learning software products primarily for sale to Fortune 2000 companies. The company's strategy is to identify industry standards and practices which create a need for enterprise-wide education and training. To assist companies in addressing such needs, the company uses digital technology, including animation, video, graphics, audio narration and formatted text, to create interactive multimedia learning products. The company believes its multimedia learning software can improve memory retention, compress the time required for learning and reduce costs compared to traditional methods of instruction. The company's multimedia learning software offers significant advantages over traditional methods of instruction such as consulting, instructor-led training, video and audio tapes and written publications.

Use of Proceeds
The company currently intends to apply these proceeds approximately as follows: 1) $3.4 million - Sales and marketing, 2) $2.87 million - Repayment of Bridge Notes and interest, 3) $2.7 million - Research and development, 4) $1,576,750 - Working capital and 5) $500,000 - Purchase of equipment.

Last updated: 10/28/96

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