Farmstead Telephone Group, Inc.
Ticker: FONE 81 Church Street
Exchange: NASDAQ-Small Cap Market East Hartford, Connecticut 06108
Industry: Manufacturing (860) 282-0010

Type of Shares:Common Shares Filing Date:6/3/96
U.S. Shares:1,000,000 Offer Date:9/12/96
Non-U.S. Shares:0 Filing Price:$4.69
Primary Shares:1,000,000 Offer Price:$4.06
Secondary Shares:0 Gross Spread:$0.37
Offering Amount: $4,687,500 Selling:$0.20
Expenses:$222,875 Reallowance:$0.10
Shares Out After:3,123,868

ManagerTierPhone
Schneider Securities, Inc.Lead Manager (303) 694-0111

Auditor: Deloitte & Touche
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 3/31/96 3/31/95 3/31/96
Revenue:$15.32$4.12$3.71Assets:$6.81
Net Income:-$0.55$0.33$0.01Liabilities:$3.48
EPS:-$0.03$0.02Equity:$3.34

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

Business Description
Farmstead Telephone Group, Inc. is engaged in the Customer Premise Equipment segment of the telecommunications industry, principally as a secondary market reseller of used and/or refurbished AT&T; business telephone parts and systems. The COmpany also functions as a designer, manufacturer and supplier of proprietary voice processing systems that provide automated call handling, voice and fax messaging, interactive voice response, automated call distribution and message notification functionality. The Company also provides equipment repair and refurbishing, inventory management, and other related value-added services. The Company sells its products and services to corporate end users, and to other dealers and distributors. CPE refers to equipment which resides at the customer's premises. The Company was incorporated in Delaware in 1986 and became a public company in May 1987 following the completion of its initial public offering. In January 1994, the Company acquired certain operating assets of Cobotyx Corporation, Inc., a designer, manufacturer and supplier of voice processing systems, and expanded its entry into this marketplace through the formation of a voice processing products division.

Use of Proceeds
Proceeds from the proposed offering will be used to expand domestically and internationally, to develop new voice processing products, and working capital generally.

Last updated: 12/1/96

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