Mediqual Systems, Inc.
(www.mediqual.com)
Proposed Ticker: MDQL 1900 West PArk Drive
Exchange: NASDAQ-National Market Westborough, Massachusetts 01581
Industry: High-Tech (508) 366-6365

All share information is proposed
Type of Shares:Common Shares Filing Date:5/31/96
U.S. Shares Filed:2,200,000 Filing Range:$9.00 - $11.00
Non-U.S. Shares Filed:0 Offering Amount: $22,000,000
Primary Shares:2,200,000 Expenses:$500,000
Secondary Shares:0 Shs Out After:8,255,927

ManagerTierPhone
Hambrecht & Quist IncorporatedLead Manager (415) 576-3423
Volpe, Welty & CompanyCo-manager (415) 956-8120

Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 3/31/96 3/31/95 3/31/96
Revenue:$10.97$0.68$1.17Assets:$3.88
Net Income:-$1.46$0.59-$0.54Liabilities:$15.33
EPS:-$0.21$0.09Equity:-$11.45

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 clinical information management systems and services firm. The Company is a leading supplier of clinical information management systems and services to the health care industry. The Company's systems and services combine proprietary clinical knowledge with raw patient encounter data to create valuable information that providers, payors and suppliers use to monitor and enhance the effectiveness, efficiency and appropriateness of care. Health care industry participants are under continuing pressure to reduce costs without jeopardizing the quality of care. Increasingly, cost reductions beyond those achieved through administrative efficiencies are being sought at the clinical level, and must be supported by a measurable, quantifiable relationship between services rendered and patient outcomes. This relationship between services rendered and patient outcomes is imperative to maintaining the confidence and cooperation of clinicians, and can only be established through analysis of patient encounter data, which resides in individual paper files and is captured, in part, by transaction processing systems.

Use of Proceeds
Proceeds from the proposed offering will be used to pay for the redemption of outstanding Class A Preferred Shares, the redemption of warrants, the retirement of debt and working capital and other general corporate purposes.

Last updated: 11/3/96

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