Metris Companies, Inc.
Ticker:MTRS 600 South Highway 169, Suite 1800
Exchange:NASDAQ-National Market St. Louis Park, Minnesota 55426
Industry:Financial (612) 525-5020

Type of Shares:Common Shares Filing Date:8/26/96
U.S. Shares:2,833,333 Offer Date:10/24/96
Non-U.S. Shares:0 Filing Range:$14.00 - $16.00
Primary Shares:2,833,333 Offer Price:$16.00
Secondary Shares:0 Gross Spread:$1.12
Offering Amount: $42,499,995 Selling:$0.66
Expenses:$800,000 Reallowance:$0.10
Shares Out After:18,800,000
Spin out parent firm: Fingerhut Companies, Inc.

ManagerTierPhone
Smith Barney Inc.Lead Manager (718) 921-8473
Bear, Stearns & Co. Inc.Co-manager (212) 272-2000
William Blair & CompanyCo-manager (312) 236-1600

Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 6/30/96 6/30/95 6/30/96
Revenue:$7.62$12.62$1.46Assets:$185.78
Net Income:$4.58$8.89$0.09Liabilities:$105.57
EPS:$0.33$0.51Equity:$80.21

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

Business Description
The company is an information-based direct marketer of consumer credit products, extended service plans, and fee-based products and services to moderate income consumers. Management believes the moderate income market, which currently represents 31% of all U.S. households, is underserved by the traditional providers of many of the company's products and services. The company's strategy is to first establish a profitable customer relationship through the issuance of a general purpose credit card, and then to expand this customer relationship by cross-selling additional fee-based products and services. The company provides credit to this market by utilizing a risk-based pricing strategy based on proprietary databases and credit scoring systems. The company's consumer credit products currently are unsecured and secured credit cards, including the Fingerhut co-branded MasterCard and the Direct Merchants Bank MasterCard.

Use of Proceeds
The proceeds from the proposed offering will be used to repay short term indebtedness of the company, and the remainder if any, will be used for general corporate purposes.

Last updated: 12/29/96

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