IAT Multimedia, Inc.
Ticker:IATA Geschaftshaus Wasserschloss Aarestrasse 17
Exchange:NASDAQ-National Market Vogelsang-Turgi, SWITZ CH-5300
Industry:High-Tech (SIC Code 7371)

Offering Information
Type of Shares:Common Shares Filing Date:12/23/96
U.S. Shares:3,350,000 Offer Date:3/26/97
Non-U.S. Shares:0 Filing Range:$6.25 - $6.50
Primary Shares:3,350,000 Offer Price:$6.00
Secondary Shares:0 Gross Spread:$0.48
Offering Amount: $21,356,250 Selling:$0.21
Expenses:$1,302,500 Reallowance:$0.10
Shares Out After:9,350,000

Primary Underwriting Group
ManagerTierPhone
Royce Investment Group, Inc.Lead Manager (516) 393-8300
Continental Broker-Dealer Corp.Co-manager

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Baker & McKenzie
Bank's Law Firm: Bachner, Tally, Polevoy & Misher
Auditor: Rothstein Kass & Company
Registrar/Transfer Agent: American Stock Transfer & Trust Co

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/96 12/31/96
Revenue:$1.19Assets:$2.22
Net Income:-$5.11Curr Assets:
EPS:-$0.89Liabilities:$4.90
Prior EPS:-$0.77Curr Liabilities:
Cash Flow/Oper:-$4.61Equity:-$2.68
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company develops, manufactures and markets customizable high quality visual communications systems for use in desktop computers which permit users to hold multipoint video conferences in two or more locations. The company believes that the needs of its target customers cannot be addressed by currently available lower quality software-only products or by high quality traditional video conferencing products. In addition to providing audio and video images of the other participants in the tele-conference, the company's systems are also capable of simultaneously providing images and data in windows on the computer screen which can be viewed by all the participants in the video conference and permit users and remote computer terminals to modify data and manipulate images through the operation of apparatus, such as microscopes and video cameras.

Competition
The visual communications business is highly competitive. The company estimates that more than 100 companies world-wide offer products which compete in its market segments and expects that whether or not the company is successful in capturing market share, the competition will intensify in the future. The company believes that the majority of its competitors focus on low-cost products or closed device solutions such as video phones. The company believes that the majority of its competitive factors in the visual communications industry are price, video and audio quality, the ability to connect auxiliary devices such as video disk players, reliability, service and support, and vendor and product reputation.

Business Plan
The company intends to continue to jointly develop with its Strategic Partners innovative hardware and software alternatives to lower quality software-only products. The company is in the process of completing development of its third generation of products and intends to continue to develop newer generations of its products as technology or the needs of its customers change. In addition, the company sees to identify new applications for its technology.

Use of Proceeds
The proceeds from the proposed offering will be used for research and development, repayment of loans made by a stockholder of the company, for payment of a dividend on the Series A Preferred Stock to General Capital pursuant to the provisions of the Marketing Agreement, for working capital and general corporate purposes including increases in sales staff and expansion in the United States and possible participations and acquisitions.

Warrant Information
# of Units:3,100,000
Unit Ticker: - Unit Price:
Warrant Ticker:ZZZZZ Warrant Price:
Warrant Exercise Date: Warrant Exercise Price:
Warrant Expiration Date:
Warrant Detachable: Yes Warrant Detach Date:
Warrant Callable: No
Unit Composition: 1 Common Share + 1 Warrant
Warrant Entitlement: 1 Common Share


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