Nexar Technologies, Inc.
Ticker:NEXR 182 Turnpike Road
Exchange:NASDAQ-National Market Westborough, MA 01581
Industry:Manufacturing (SIC Code 3571) (508) 836-8700

Offering Information
Type of Shares:Common Shares Filing Date:12/20/96
U.S. Shares:2,500,000 Offer Date:4/8/97
Non-U.S. Shares:0 Filing Range:$11.00 - $13.00
Primary Shares:2,500,000 Offer Price:$9.00
Secondary Shares:0 Gross Spread:$0.72
Offering Amount: $30,000,000 Selling:$0.40
Expenses:$1,000,000 Reallowance:$0.00
Shares Out After:9,200,000
Spin out parent firm: Palomar Medical Technologies, Inc.

Primary Underwriting Group
ManagerTierPhone
Sands Brothers & Co., Ltd.Lead Manager (212) 697-5200

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Choate, Hall & Stewart
Bank's Law Firm: Littman & Krooks
Auditor: Arthur Andersen
Registrar/Transfer Agent: First National Bank of Boston

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 9/30/96
Revenue:$0.62$11.34Assets:$20.18
Net Income:-$2.26-$2.98Curr Assets:
EPS:-$0.35Liabilities:$25.43
Prior EPS:Curr Liabilities:
Cash Flow/Oper:Equity:-$5.24
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company develops, manufactures and markets high-performance, competitively-priced desktop personal computers based on patent-pending technologies. Unlike conventional PCs, NEXAR systems permit an end-user to 1) purchase a custom-configured PC on demand, and 2) easily upgrade or switch important components of the PC to accommodate emerging and future technologies resulting in a significant extension of the computer's useful life. NEXAR sells a high-performance system platform, which is typically shipped to resellers fully configured, except for the key system defining components (microprocessor, memory and hard drive). The company's current PCs are based on an industry-standard, open architecture design, co-engineered by HCL Hewlett Packard Ltd., which allows the central processing unit, random access memory, and cache memory to be replaced by end-users without technical assistance and without opening the entire chassis.

Competition
The desktop PC industry is intensely competitive and may become more so as the result of, among other things, the introduction of new competitors and possibly weakening demand. The company currently competes in the desktop PC market principally with Acer, Apple Computer, Compaq Computer, Dell Computer, Gateway 2000, Hewlett-Packard, IBM and Packard Bell NEC. In addition, the company plans to compete in the network server market by late 1997 with established companies such as ALR, Compaq, Dell, Hewlett-Packard and IBM.

Business Plan
The company's objective is to claim a significant share of the desktop PC market by offering open-architecture PCs incorporating technology which enables end-users in an easy and cost effective manner to upgrade and transition to the new and varied CPU platforms of different manufacturers in accordance with expected roadmaps of fundamental and leading-edge PC technology.

Use of Proceeds
The proceeds from the proposed offering will be used for repayment of indebtedness to related parties and general corporate purposes including working capital, product development and capital expenditures.

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