Micro Therapeutics, Inc.
Ticker:MTIX 1062 Calle Negocio #F
Exchange:NASDAQ-National Market San Clemente, CA 92673
Industry:Manufacturing (SIC Code 3841) (714) 361-0616

Offering Information
Type of Shares:Common Shares Filing Date:12/5/96
U.S. Shares:1,600,000 Offer Date:2/18/97
Non-U.S. Shares:0 Filing Range:$11.00 - $13.00
Primary Shares:1,600,000 Offer Price:$6.00
Secondary Shares:0 Gross Spread:$0.42
Offering Amount: $19,200,000 Selling:$0.21
Expenses:$533,314 Reallowance:$0.10
Shares Out After:6,505,113

Primary Underwriting Group
ManagerTierPhone
UBS Securities Inc.Lead Manager (212) 821-4510
Volpe, Welty & CompanyCo-manager (415) 274-4463

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Stradling, Yocca, Carlson & Rauth
Bank's Law Firm: Morrison & Foerster

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 9/30/96 9/30/95 9/30/96
Revenue:$292.30$0.97$135.08Assets:$29.58
Net Income:-$2.81-$3.92-$1.74Curr Assets:
EPS:-$0.59-$0.83Liabilities:$0.65
Prior EPS:Curr Liabilities:
Cash Flow/Oper:Equity:$28.93
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company develops, manufactures and markets minimally invasive medical devices for the diagnosis and treatment of vascular disease. MTI focuses its efforts in two underserved markets: 1) the treatment of neuro vascular disorders of the brain associated with stroke; and 2) the treatment of peripheral vascular disease, including blood clot therapy in hemodialysis access grafts, arteries and veins. The company's objective is to provide physicians with new interventional treatment alternatives which improve outcomes, reduce costs, shorten procedure times, reduce drug usage and allow access to difficult-to-reach anatomical locations. The company currently markets more than fifty products for the treatment of peripheral vascular disease and will introduce products for the treatment of neuro vascular disease in 1997.

Competition
The medical device industry is characterized by rapidly evolving technologies and significant competition. The company expects competition in the interventional radiology and interventional neuroradiology markets to increase substantially. The company believes that interventional procedures and may ultimately replace these procedures in certain applications. In certain cases, the company's products may be used in conjunction with traditional surgical techniques. The company competes primarily with other producers of catheter and wire based products for interventional treatment of neuro vascular and peripheral vascular disease. In neuro vascular interventional applications Target Therapeutics, Inc. is the market leader. The company expects to compete against Target Therapeutics and other recent entrants in the neuro vascular interventional market including Boston Scientific, Inc., the Cordis, Inc. subsidiary of Johnson & Johnson, and Medtronic Micro Interventional Systems. In peripheral blood clot therapy applications the company competes with the MediTech division of Boston Scientific, Inc., Cook, Inc., Target Therapeutics and the AngioDynamics division of E-Z-EM Corporation. All of these companies have significantly greater financial, manufacturing, marketing, distribution and technical resources, name recognition and experience than the company. There can be no assurance that the company's competitors will not succeed in developing technologies and products that are more effective than those developed by the company or that would render the company's product obsolete or noncompetitive. Additionally, there can be no assurance that the company will be able to compete effectively against such competitors based on its ability to manufacture, market and sell its products.

Business Plan
The company's goal is to be a leading provider of interventional solutions for treatment of neuro vascular and peripheral vascular disorders. The company's strategy is composed of the following key elements: (I) Focus on Underserved Markets, (ii) Establish Early Market Presence, (iii) Expand Interventional Therapy Alternatives.

Use of Proceeds
The proceeds from the proposed offering will be used to fund research and develop, clinical trials, expansion of marketing and sales activities, and for working capital and other general corporate purposes.

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