Applied Analytical Industries, Inc.
Ticker: AAII 5051 New Centre Drive
Exchange: NASDAQ-National Market Wilmington, North Carolina 28403
Industry: Service (910) 392-1606

Type of Shares:Common Shares Filing Date:6/7/96
U.S. Shares:2,700,000 Offer Date:9/19/96
Non-U.S. Shares:0 Filing Range:$12.00 - $14.00
Primary Shares:2,700,000 Offer Price:$16.00
Secondary Shares:0 Gross Spread:$1.12
Offering Amount: $35,100,000 Selling:$0.60
Expenses:$900,000 Reallowance:$0.10
Shares Out After:15,880,902

ManagerTierPhone
Goldman, Sachs & Co.Lead Manager (212) 902-1172
Cowen & CompanyCo-manager (212) 495-6000
Lehman Brothers IncorporatedCo-manager (212) 640-6129

Auditor: Price Waterhouse
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 6/30/96 6/30/95 6/30/96
Revenue:$34.64$20.77$16.60Assets:$35.77
Net Income:$2.12$1.40$0.31Liabilities:$12.36
EPS:$0.18$0.12Equity:$23.41

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 leading provider of product development and support services to the worldwide pharmaceutical and biotechnology industries, offering a broad range of integrated, value-added services that span the drug life cycle. From new compound characterization and synthesis to marketed-product compliance and quality control testing. In addition, through its internal development program, the company leverages its expertise to generate additional revenue by licensing internally developed drugs and drug technologies to third parties. To date, the company has contributed to the submission, approval or continued marketing of more than 1,250 client products worldwide. As part of its internal development program, the company has licensed nine products to clients, including four products approved by FDA, and patented ten drug technologies.

Use of Proceeds
The proceeds from the proposed offering will be used for capital expenditures, geographic expansion, implementation of additional services, possible future acquisitions, working capital and other general corporate purposes.

Last updated: 10/28/96

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