Aradigm Corporation
Ticker: ARDM 26219 Eden Landing Road
Exchange: NASDAQ-National Market Hayward, California 94545
Industry: Manufacturing (510) 783-0100

Type of Shares:Common Shares Filing Date:4/30/96
U.S. Shares:2,500,000 Offer Date:6/20/96
Non-U.S. Shares:0 Filing Range:$11.00 - $13.00
Primary Shares:2,500,000 Offer Price:$11.00
Secondary Shares:0 Gross Spread:$0.77
Offering Amount: $30,000,000 Selling:$0.18
Expenses:$900,000 Reallowance:$0.10
Shares Out After:10,068,410

ManagerTierPhone
Cowen & CompanyLead Manager (212) 495-6000
Invemed Associates Inc.Co-manager (212) 421-2500
Oppenheimer & Company, Inc.Co-manager (212) 667-7402

Auditor: Ernst & Young
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 3/31/96 3/31/95 3/31/96
Revenue:$0.16$0.09$0.13Assets:$11.82
Net Income:-$5.43-$1.61-$1.12Liabilities:$1.22
EPS:-$0.76-$0.21Equity:$10.60

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

Business Description
The company is engaged in the development of novel, hand-held pulmonary drug delivery systems designed to enhance the delivery and effectiveness of a number of existing development stage drugs and reduce the need for injectable drug therapy. The company plans to commercialize its proprietary technologies on two product platforms: (i) the SmartMist system, which is designed to improve the effectiveness of metered dose inhalers, such as those used to deliver asthma medications, and (ii) the AERx system, which creates aerosols from liquid drug formulation for delivery locally to the lung or into the blood stream via the lung. The company believes that its systems may be used to deliver existing drugs for a variety of applications, including the treatment of respiratory diseases, pain management and diabetes management, as well as to deliver imaging agents for certain lung diagnostic applications. In addition, the company's potential products also may offer a promising means of delivery for new drugs under development by pharmaceutical biotechnology companies.

Use of Proceeds
The proceeds from the offering will be used to fund research and development, manufacturing process development, manufacturing capacity, working capital and for general corporate purposes.

Last updated: 10/28/96

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