Transition Systems, Inc.
Ticker: TSIX One Boston Place
Exchange: NASDAQ-National Market Boston, Massachusetts 02108
Industry: High-Tech (617) 723-4222

Type of Shares:Common Shares Filing Date:2/29/96
U.S. Shares:6,000,000 Offer Date:4/18/96
Non-U.S. Shares:0 Filing Range:$14.00 - $16.00
Primary Shares:6,000,000 Offer Price:$18.00
Secondary Shares:0 Gross Spread:$1.26
Offering Amount: $90,000,000 Selling:$0.72
Expenses:$1,000,000 Reallowance:$0.10
Shares Out After:15,187,776

ManagerTierPhone
Alex. Brown & Sons IncorporatedLead Manager (410) 727-1700
Robertson, Stephens & CompanyCo-manager (415) 989-8500
Wessels, Arnold & HendersonCo-manager (612) 373-6121

Auditor: Coopers & Lybrand
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
9/30/95 12/30/95 12/24/94 12/30/95
Revenue:$27.39$6.56$4.56Assets:$28.17
Net Income:$5.63$1.18$0.29Liabilities:$10.80
EPS:$0.30$0.06Equity:$17.37

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

Business Description
The company is a leading provider of integrated clinical and financial decision support systems for hospitals, integrated delivery systems and other health care institutions. The company was founded in 1985 to apply management control techniques to the health care delivery process, with the objective of improving quality and lowering cost. The company has been profitable in every fiscal year since 1987. TSI has an installed base of over 700 sites, including installations at such leading institutions as Mayo Medical Center, Cleveland Clinic Foundation, Stanford Health Services, Sharp Health Care and Kaiser Permanente. The company's products enable its customers to analyze clinical, operational and financial information gathered from throughout an enterprise and measure daily performance down to the individual patient level. This information can be used by senior executives, financial managers, department managers, chief medical officers, clinicians and other to manage the quality and cost of care. The company believes its products offer a unique combination of activity-based clinical management capabilities and patient-level cost and process of care information in an open architecture environment.

Use of Proceeds
The proceeds from the offering will be used to repay debt, redeem preferred stock and for general corporate purposes.

Last updated: 11/27/96

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