Muzak, Inc.
Proposed Ticker: MUZK 2901 Third Avenue, Suite 400
Exchange: NASDAQ-National Market Seattle, Washington 98121
Industry: Service (206) 633-3000

All share information is proposed
Type of Shares:Common Shares Filing Date:5/15/96
U.S. Shares Filed:4,600,000 Filing Range:$14.00 - $16.00
Non-U.S. Shares Filed:0 Offering Amount: $69,000,000
Primary Shares:4,241,577 Expenses: -
Secondary Shares:358,423 Shs Out After:11,410,339

ManagerTierPhone
PaineWebber IncorporatedLead Manager (212) 713-2626
Montgomery SecuritiesCo-manager 4156272220

Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 3/31/96 3/31/95 3/31/96
Revenue:$86.88$20.94$21.21Assets:$94.36
Net Income:-$6.37-$2.31-$1.81Liabilities:$79.42
EPS:-$0.89-$0.32Equity:$14.94

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

Business Description
The Company is the leading provider of business music in the United States. The Company and its franchisees serve approximately 178,000 customer locations in the United States, representing a market share of over 50% of the estimated number of domestic locations currently served by business music providers and approximately twice the estimated number of locations served by its nearest competitor. Its customers, most of which are under long-term contracts, include Taco Bell, McDonald's and Boston Market restaurants and Nordstrom, Crate & Barrel, Kroger, Staples, Hallmark and Wal-Mart retail stores, as well as a large number of local and regional accounts. Through a network of distributors, the Company also provides business music to subscribers outside the United States. The Company estimates that its business music is heard by more than 80 million listeners each day in the United States and abroad. The Company also offers its customers a range of non-music services, including broadcast data delivery, video, audio marketing and in-store advertising services, and sells, installs and services related equipment.

Use of Proceeds
The proceeds from the proposed offering will be used to implement a plan of recapitalization.

Last updated: 10/28/96

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