Farallon Communications, Inc.
Ticker: FRLN 2470 Mariner Loop
Exchange: NASDAQ-National Market Alameda, California 94501
Industry: High-Tech (510) 814-5100

Type of Shares:Common Shares Filing Date:4/22/96
U.S. Shares:2,250,000 Offer Date:6/12/96
Non-U.S. Shares:0 Filing Range:$13.00 - $15.00
Primary Shares:1,750,000 Offer Price:$16.00
Secondary Shares:500,000 Gross Spread:$1.12
Offering Amount: $31,500,000 Selling:$0.65
Expenses:$800,000 Reallowance:$0.10
Shares Out After:11,057,085

ManagerTierPhone
Cowen & CompanyLead Manager (212) 495-6000
Hambrecht & Quist IncorporatedCo-manager (415) 576-3423
UBS Securities Inc.Co-manager (212) 230-4000

Auditor: KPMG Peat Marwick
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
9/30/95 3/31/96 3/31/95 3/31/96
Revenue:$57.19$29.45$29.55Assets:$36.23
Net Income:$2.51$2.88$1.84Liabilities:$8.94
EPS:$0.25$0.27$0.19Equity:$27.30

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

Business Description
The company develops, markets and supports complete, easy-to-use, plug-and-play Internet connectivity and networking solutions and real-time collaboration software. The company's products are designed to increase the productivity and efficiency of Internet and LAN users and to target small businesses, geographically dispersed facilities of large enterprises, home offices, mobile users, schools and other small organizations that may not have access to sophisticated technical support. The company's Internet/Intranet products include its Netopia routers and modems, which provide high-speed Internet connectivity for individuals and workgroups, and its Timbuktu Pro collaboration on the Internet, Intranets and LANs. To assist users in configuring the Netopia products and in arranging service from Internet and telecommunications service providers, the company offers its Up & Running, Guaranteed! program, which serves as a single source for complete Internet connectivity. The company's LAN networking solutions include its EtherWave family of products, which enable users to easily and cost-effectively create Ethernet networks with or without a hub.

Use of Proceeds
The proceeds from the offering will be used for general corporate purposes, including working capital and potential acquisitions.

Last updated: 10/28/96

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