SunStar Healthcare, Inc.
Ticker: SUNS 231 East Haven Avenue
Exchange: NASDAQ-Small Cap Market Melbourne, Florida 32901
Industry: Service (407) 728-8711

Type of Shares:Common Shares Filing Date:2/28/96
U.S. Shares:1,300,000 Offer Date:5/15/96
Non-U.S. Shares:0 Filing Price:$5.00
Primary Shares:1,300,000 Offer Price:$5.00
Secondary Shares:0 Gross Spread:$0.47
Offering Amount: $6,500,000 Selling:
Expenses:$620,000 Reallowance:
Shares Out After:2,200,000
Spin out parent firm: National Home Health Care Corporation

ManagerTierPhone
Richter, Cohen & CompanyLead Manager (212) 421-6300
H.J. Meyers & Company, IncorporatedCo-manager (310) 278-7880

Auditor: Eisner, Richard A.
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
7/31/95 1/31/96 1/31/95 1/31/96
Revenue:$5.13$2.45$2.44Assets:$1.28
Net Income:$0.06-$0.11$0.03Liabilities:$0.20
EPS:$0.05-$0.09Equity:$1.08

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

Business Description
The company provides managed healthcare services through seven primary care centers located in central Florida. Medical services are delivered by ten board certified or board eligible primary care physicians employed by the company. The company's healthcare operations consist primarily of medical treatment and care typically furnished in a family practitioner's office. The company also arranges for clinical laboratory services and engages physicians specializing in various medical practices to complement the company's primary care operations. The company currently offers healthcare services on a contractual and fee-for-service basis. The company has a prepaid cost reimbursement contract with the Health Care Financing Administration of the federal government, pursuant to which the company provides prescribed primary care to Medicare beneficiaries who enrolled directly with the company prior to January 1, 1996.

Use of Proceeds
Proceeds from the offering will be used for the establishment of an HMO; the development and/or acquisition of additional primary care centers; the relocation of existing centers; and the balance for working capital and general corporate purposes.

Last updated: 10/28/96

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