Medical Alliance, Inc.
Ticker: MAII 2445 Gateway Drive, Suite 150
Exchange: NASDAQ-National Market Irvine, Texas 75063
Industry: Service (214) 580-8999

Type of Shares:Common Shares Filing Date:8/9/96
U.S. Shares:2,000,000 Offer Date:10/11/96
Non-U.S. Shares:0 Filing Range:$11.00 - $13.00
Primary Shares:2,000,000 Offer Price:$11.00
Secondary Shares:0 Gross Spread:$0.77
Offering Amount: $24,000,000 Selling:$0.46
Expenses:$500,000 Reallowance:$0.10
Shares Out After:5,623,596

ManagerTierPhone
Bear, Stearns & Co. Inc.Lead Manager (212) 272-2000
Equitable Securities CorporationCo-manager (615) 780-9300

Auditor: Coopers & Lybrand
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 6/30/96 6/30/95 6/30/96
Revenue:$11.18$8.40$4.85Assets:$8.93
Net Income:$0.52$0.45$0.16Liabilities:$8.66
EPS:$0.09$0.07$0.03Equity:$0.28

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

Business Description
The company provides a complete range of services used to create temporary surgical sites in physician offices in 40 states and Canada and believes it is the leading provider of such services in the United States. The company's services facilitate the migration of established surgical procedures and advanced medical technologies from hospitals and outpatient surgery centers to a lower-cost setting, the physician's office. Payors, physicians and patients benefit from the company's services through reduced costs for surgical procedures, increased physician productivity, greater access to advanced medical technologies and improved patient satisfaction. The company currently maintains a network of approximately 2,500 physicians who have utilized the company's services and has over 100 managed care contracts that in aggregate cover approximately 16 million lives. Currently, physicians in the company's network perform approximately 6,000 procedures monthly using the company's services.

Use of Proceeds
The proceeds from the proposed offering will be used to repay indebtedness, make capital expenditures, including the acquisition of medical equipment, and hire additional personnel, and for working capital and general corporate purposes, including possible acquisitions.

Last updated: 11/24/96

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