NovAtel, Inc.
Ticker:NGPSF 6732 8th Street N.E.
Exchange:NASDAQ-National Market Calgary, CANAD T2E 8M4
Industry:Manufacturing (SIC Code 3812) 4032954500

Offering Information
Type of Shares:Common Shares Filing Date:11/25/96
U.S. Shares:2,570,000 Offer Date:2/3/97
Non-U.S. Shares:0 Filing Range:$10.00 - $12.00
Primary Shares:2,200,000 Offer Price:$7.50
Secondary Shares:370,000 Gross Spread:$0.52
Offering Amount: $28,270,000 Selling:$0.29
Expenses:$550,000 Reallowance:$0.10
Shares Out After:7,400,000

Primary Underwriting Group
ManagerTierPhone
Montgomery SecuritiesLead Manager (415) 627-2100
Prudential Securities IncorporatedCo-manager (212) 778-5420

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Orrick, Herrington & Sutcliffe
Bank's Law Firm: Brobeck, Phleger & Harrison
Auditor: Arthur Andersen
Registrar/Transfer Agent: ChaseMellon Shareholder Services, L.L.C.

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
9 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 9/28/96 9/28/96
Revenue:$10.10$13.54Assets:$11.98
Net Income:-$8.00$3.44Curr Assets:
EPS:-$1.54$0.66Liabilities:$15.36
Prior EPS:Curr Liabilities:
Cash Flow/Oper:Equity:-$3.38
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company designs, markets and supports a broad range of products which determine precise geographic locations using the Global Positioning System. The company's GPS products are used principally for applications in high-end markets such as the surveying, geographic information systems, agriculture, aviation, marine and mining and machine control markets, rather than for applications in low end markets such as the vehicle navigation and consumer/cellular markets. The company focuses on these high-end GPS markets where users require higher performance, accuracy and reliability. The company's advanced technology provides accuracy to the sub-centimeter level while showing a high degree of integrity in dynamic environments. An innovative receiver design allows the company to use a limited number of hardware platforms to offer a variety of GPS products, which serve multiple markets, through software enhancements. This design facilitates shorter product development and production times, reduced manufacturing complexities and lower product costs.

Competition
The company believes that its ability to compete successfully depends on a number of factors, both within and outside of its control, including the performance, quality and price of the company's and its competitors' products , the timing and success of new product introductions by the company, its OEM customers and its competitors, the emergence of new GPS technologies and competing technologies, the development of technological innovations, the efficiency of production, the rate at which the company's OEM customers incorporate the company's products into their products, the number and nature of the company's competitors in a given market, the assertion of intellectual property rights and general market and economic conditions.

Business Plan
The company's objective is to strengthen its technological leadership and become a market leader in the high-end GPS markets by continuing to introduce products that address market needs and maintaining responsive and flexible customer support. Key elements of the company's strategy include: 1) focus on high-end GPS markets; 2) capitalize on strength of OEM business; 3) broaden business base; 4) provide superior customer support; 5) expand international presence.

Use of Proceeds
The proceeds from the proposed offering will be used to retire debt, finance construction of a new corporate facility and for general corporate purposes.

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