Pacific Research & Engineering Corporation
Ticker: PXE 2070 Las Palmas Drive
Exchange: American Stock Exchange Carlsbad, California 92009
Industry: Manufacturing (619) 438-3911

Type of Shares:Common Shares Filing Date:2/2/96
U.S. Shares:1,000,000 Offer Date:5/28/96
Non-U.S. Shares:0 Filing Range:$6.00 - $8.00
Primary Shares:1,000,000 Offer Price:$5.50
Secondary Shares:0 Gross Spread:$0.55
Offering Amount: $7,000,000 Selling:$0.28
Expenses:$576,500 Reallowance:
Shares Out After:2,865,000

ManagerTierPhone
Nutmeg Securities, Inc.Lead Manager (203) 255-5599

Auditor: Harlan & Boettger
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 3/31/96 3/31/95 3/31/96
Revenue:$6.94$1.95$1.85Assets:$3.50
Net Income:$0.27$0.19$0.12Liabilities:$1.96
EPS:$0.12$0.09$0.05Equity:$1.55

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

Business Description
The company, a California corporation, has produced high quality studio products and services including audio control and mixing consoles, cartridge machines, digital audio workstations, & other peripheral products for the radio broadcasting industry. The company also provides technical furniture and offers studio integration and design services for turnkey systems projects. The company's primary customers are nation's top rated radio stations and network facilities. The company believes it has developed a solid reputation in the broadcasting industry. The company recently introduced, on a limited basis, products for the television broadcast industry. The company's manufacturing and development activities are conducted in four principal areas: audio control consoles, digital recording equipment, peripheral equipment and custom system products. Some of the company's customers include Capital Cities/ABC, Disney, Infinity Broadcasting and Metromedia, Inc.

Use of Proceeds
The proceeds from the offering will be used for sales and marketing, engineering and development, general operations, debt reduction and working capital.

Last updated: 12/8/96

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