Kideo Productions, Inc.
Ticker: KIDO 611 Broadway, Suite 523
Exchange: NASDAQ-Small Cap Market New York, New York 10022
Industry: Service (212) 505-6605

Type of Shares:Common Shares Filing Date:3/12/96
U.S. Shares:1,400,000 Offer Date:6/24/96
Non-U.S. Shares:0 Filing Price:$5.00
Primary Shares:1,400,000 Offer Price:$5.00
Secondary Shares:0 Gross Spread:$0.50
Offering Amount: $7,000,000 Selling:$0.20
Expenses:$709,200 Reallowance:$0.10
Shares Out After:2,938,985

ManagerTierPhone
Whale Securities CompanyLead Manager (212) 484-2057

Auditor: Goldstein Golub Kessler & Company
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
7/31/95 1/31/96 1/31/95 1/31/96
Revenue:$0.52-$0.56$0.37Assets:$1.47
Net Income:-$1.92-$1.03-$0.82Liabilities:$2.73
EPS:-$1.37-$0.72-$0.61Equity:-$1.25

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

Business Description
Kideo Productions, Inc. (the "Company") develops, manufactures and markets digitally personalized videos ("Kideos") for children. In Kideos, a child's face and spoken name are digitally placed by a personal computer into a story template stored as digital video, which is then output to analog video, allowing the child to become the star in a personalized VHS videocassette. Each of the Company's current Kideo titles has a playing time of approximately 20 minutes and is in video-picture book format (although, in the Company's latest product, the illustrated body of the child's character exhibits two-dimensional partial-motion animation). The Company currently offers four Kideo titles, each of which was developed by the Company and has a digital story template which utilizes content that is proprietary to the Company. In addition, a personalized Kideo is produced using the Company's proprietary computerized personalization production process. It is this production process -- a sophisticated technological system for the low cost, mass production of digitally personalized videos, implemented by the Company in the latter half of 1995 -- which the Company believes will provide it with a meaningful short- to near-term competitive advantage over new entrants into the emerging market for digitally personalized video products. The Company has filed two patent applications relating to this process with the United States Patent and Trademark Office.

Use of Proceeds
Proceeds from the proposed offering will be used for the repayment of bridge financings, and for product development, marketing, repayment of certain pre-existing obligations, capital expenditures, working capital and general corporate purposes.

Last updated: 12/8/96

©1996 IPO Data Systems, Inc. - All rights reserved.