DIGEX, Incorporated
Ticker:DIGX 6800 Virginia Manor Road
Exchange:NASDAQ-National Market Beltsville, Maryland 20705
Industry:High-Tech (301) 847-5000

Type of Shares:Common Shares Filing Date:6/11/96
U.S. Shares:4,500,000 Offer Date:10/16/96
Non-U.S. Shares:0 Filing Range:$9.00 - $11.00
Primary Shares:4,500,000 Offer Price:$10.13
Secondary Shares:0 Gross Spread:$0.71
Offering Amount: $45,000,000 Selling:$0.42
Expenses:$1,200,000 Reallowance:$0.10
Shares Out After:10,600,964

ManagerTierPhone
Friedman, Billings, Ramsey & Co., Inc.Lead Manager (703) 312-9500

Auditor: Ernst & Young
6 Month Ending Financials
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 6/30/96 6/30/96 6/30/96
Revenue:$5.08$5.24$1.67Assets:$18.84
Net Income:-$4.32-$7.35-$0.94Liabilities:$16.26
EPS:-$0.47-$0.69Equity:$2.58

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

Business Description
Digex, Incorporated is a leading independent national Internet service provider that focuses exclusively on businesses, government agencies and other institutional customers. The company offers a comprehensive range of INDUSTRIAL STRENGTH Internet solutions, including business connectivity, Web server hosting, consulting and education services and security and other network products. After receiving its first major infusion of institutional equity capital in March 1995, the company reoriented its strategy to focus exclusively on business customers, who generally require high bandwidth connectivity, and also began to develop its Web server hosting business. Additionally, the company brought in an experienced management team in the first quarter of 1996. As a result, the company's leased line and server customers have grown from approximately 65 accounts at April 30, 1995 to approximately 840 accounts at June 30, 1996.

Use of Proceeds
Proceeds from the offering will be used to fund the expansion of its networking infrastructure, to acquire business-focused regional ISPs or to purchase their subscriber bases, to fund anticipated operating losses and for general corporate purposes.

Last updated: 12/22/96

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