Index Stock Photography, Inc.
Proposed Ticker: ISPI 126 Fifth Avenue
Exchange: NASDAQ-Small Cap Market New York, New York 10011
Industry: Service (212) 929-4644

All share information is proposed
Type of Shares:Common Shares Filing Date:7/3/96
U.S. Shares Filed:1,000,000 Filing Range:$8.00 - $10.00
Non-U.S. Shares Filed:0 Offering Amount: $9,000,000
Primary Shares:1,000,000 Expenses:$655,000
Secondary Shares:0 Shs Out After:2,366,523

ManagerTierPhone
Kaufman Brothers L.P.Lead Manager (800) 807-8723

Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
10/31/95 4/30/96 4/30/95 4/30/96
Revenue:$2.22$1.24$0.99Assets:$0.80
Net Income:-$1.09-$0.73-$0.58Liabilities:$0.82
EPS:-$0.72-$0.47-$0.39Equity:-$0.02

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

Business Description
The company is both a leading still image provider to traditional users of stock photography and an Internet content providers. The company has developed a proprietary system for image retrieval and transmission that allows its employees and customers to find, select and receive images electronically, using either keyboard or catagory based search techniques. Index stock licenses its library of more than one million images for fees based upon the type and nature of their use. Since its inception, the company has licensed images to more than 50,000 customers in 35 countries worldwide. These images are provided to commercial users of stock photography, such as advertisers, graphic designers and publishers, as well as to emerging new markets of multimedia producers, consumer users and desktop publishers in the growing small office/home office market. The company distributes images to professional users through two offices in the United States an 21 independent foreign agents and to the consumer and SOHO markets via on-line networks, such as Compuserve, Prodigy, and the World Wide Web portion of the Internet. Index Stock has also developed image selection and layout tools that allow users to search for, select and manipulate electronic versions of downloaded images. The company promotes its images using printed and CD-ROM catalogs, direct sales, direct mail, print advertising and public appearances.

Use of Proceeds
Proceeds from the proposed offering will be used to repay certain indebtedness and for general corporate purposes, including working capital.

Last updated: 10/28/96

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