Amarillo Biosciences, Inc.
Ticker: AMAR 800 West 9th Avenue
Exchange: NASDAQ-Small Cap Market Amarillo, Texas 79101
Industry: Service (806) 376-1741

Type of Shares:Common Shares Filing Date:5/23/96
U.S. Shares:2,000,000 Offer Date:8/7/96
Non-U.S. Shares:0 Filing Range:$5.00 - $7.00
Primary Shares:2,000,000 Offer Price:$5.00
Secondary Shares:0 Gross Spread:$0.50
Offering Amount: $12,000,000 Selling:$0.20
Expenses:$300,000 Reallowance:$0.10
Shares Out After:5,114,232

ManagerTierPhone
Whale Securities CompanyLead Manager (212) 484-2057

Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 3/31/96 3/31/95 3/31/96
Revenue:$2.01$0.42$0.65Assets:$1.42
Net Income:-$0.31$0.01-$0.08Liabilities:$2.74
EPS:-$0.10$0.00-$0.02Equity:-$1.32

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

Business Description
The company is a developmental stage company that is engaged in developing biologics for the treatment of human and animal diseases. The company is currently focusing its research an human health indications for the use of low dose oral natural interferon alpha, particularly for the treatment of Sjogren's syndrome, oral musositis in cancer patients and hepatitis B and C. The company believes that significant worldwide opportunities exist for the development of low dose oral natural IFNa as an inexpensive, non-toxic, efficacious alternative to the treatment of disease by injection of high doses of IFNa can be an effective treatment for diseases or conditions for which current therapies are inadequate. The company owns or licenses ten United States patents relating to low dose oral natural IFNa. The company is also testing oral IFNa in cats with herpesvirus-1 infection, dogs with keratoconjunctivitis sicca and cattle with shipping fever or mastitis and has filed, and there are now in effect, Investigational New Animal Drug Notices for these and other indications in animals.

Use of Proceeds
Proceeds from the proposed offering will be used for research and development, for repayment of certain short-term indebtedness to HBL and the balance for working capital and other general corporate purposes.

Last updated: 10/28/96

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