Gargoyles, Inc.
Ticker: GOYL 5866 South 194th Street
Exchange: NASDAQ-National Market Kent, Washington 98032
Industry: Manufacturing (206) 872-6100

Type of Shares:Common Shares Filing Date:7/3/96
U.S. Shares:2,857,145 Offer Date:9/27/96
Non-U.S. Shares:0 Filing Range:$13.00 - $15.00
Primary Shares:1,785,715 Offer Price:$16.00
Secondary Shares:1,071,430 Gross Spread:$1.12
Offering Amount: $40,000,030 Selling:$0.67
Expenses:$850,000 Reallowance:$0.10
Shares Out After:7,542,304

ManagerTierPhone
Smith Barney Inc.Lead Manager (718) 921-8473
Robertson, Stephens & CompanyCo-manager (415) 989-8500

Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 3/31/96 3/31/95 3/31/96
Revenue:$17.14$6.99$3.29Assets:$19.85
Net Income:-$2.34-$0.02-$0.49Liabilities:$26.91
EPS:-$0.38$0.00-$0.08Equity:-$7.06

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

Business Description
The company designs, manufactures and markets a broad line of performance and lifestyle oriented sunglasses. The company competes in the growing premium sunglass market by offering a diverse line of products at suggested retail prices of $80 to $190. The company seeks to distinguish Gargoyles brand products in the marketplace by combining innovative styling with its patented dual lens toric curve technology, which the company believes is the most advanced lens design currently available in wrap sunglasses. The company believes these features appeal not only to active sports enthusiasts who favor the performance and comfort features of its products, but also to consumers who appreciate Gargoyles' distinctive styling and innovative designs. In addition, the company recently acquired the Hobie sunglass line, a leading line of polarized sunglasses, which is one of the fastest emerging categories within the premium sunglass market. The company also offers a popular line of protective eyewear focused primarily on the medical and dental market segments. The company believes that the diversity of its product lines, combined with increasing awareness among consumers of the Gargoyles and Hobie brands and their unique attributes has positioned it to capitalize on the strong growth potential in the domestic and international premium sunglass markets.

Use of Proceeds
Proceeds from the proposed offering will be used to repay outstanding indebtedness; to fund start-up costs for the Timberland product line; and for working capital and other general corporate purposes.

Last updated: 10/28/96

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