Applied Imaging Corporation
Ticker: AICX 2380 Walsh Avenue, Building B
Exchange: NASDAQ-National Market Santa Clara, California 95051
Industry: Manufacturing (408) 562-0250

Type of Shares:Common Shares Filing Date:6/25/96
U.S. Shares:1,650,000 Offer Date:11/7/96
Non-U.S. Shares:0 Filing Range:$11.00 - $13.00
Primary Shares:1,650,000 Offer Price:$7.00
Secondary Shares:0 Gross Spread:$0.49
Offering Amount: $19,800,000 Selling:$0.25
Expenses:$800,000 Reallowance:$0.10
Shares Out After:6,757,460

ManagerTierPhone
Montgomery SecuritiesLead Manager (415) 627-2220
Dillon, Read & Co. Inc.Co-manager (212) 906-7000
Vector Securities International, Inc.Co-manager (708) 940-1970

Auditor: KPMG Peat Marwick
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 6/30/96 6/30/95 6/30/96
Revenue:$10.80$6.00$5.22Assets:$8.09
Net Income:-$2.55-$1.24-$1.10Liabilities:$4.47
EPS:-$0.45-$0.22Equity:$3.62

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

Business Description
The company designs, develops, manufactures and markets automated clinical analysis systems used by cytogenetic laboratories for prenatal and other genetic testing. The company's cytogenetic instrumentation business, which has an installed base at approximately 500 sites in more than 30 countries, includes systems that enable laboratories to automate aspects of the detection of chromosomal abnormalities associated with conditions such as Down's Syndrome. In addition to the company's core instrument business, the company is developing a proprietary genetic screening system designed to enable prenatal screening for genetic abnormalities by isolating nucleated fetal red blood cells from a routine maternal blood sample. This new system is designed to improve current prenatal screening techniques by providing an accurate, timely and cost-effective procedure without the risks of miscarriage or fetal damage associated with invasive prenatal testing.

Use of Proceeds
The proceeds from the proposed offering will be used for research and development, clinical trials related to the prenatal screening systems, repayment of debt, working capital and other general corporate purposes.

Last updated: 12/1/96

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