Star Telecommunications, Inc.
Ticker:STRX 223 East De La Guerra Street
Exchange:NASDAQ-National Market Santa Barbara, CA 93101
Industry:Service (SIC Code 4813) (805) 899-1962

Offering Information
Type of Shares:Common Shares Filing Date:2/7/97
U.S. Shares:4,000,000 Offer Date:6/12/97
Non-U.S. Shares:0 Filing Range:$10.00 - $12.00
Primary Shares:3,750,000 Offer Price:$9.00
Secondary Shares:250,000 Gross Spread:$0.63
Offering Amount: $44,000,000 Selling:$0.35
Expenses:$1,025,000 Reallowance:$0.10
Shares Out After:23,238,651

Primary Underwriting Group
ManagerTierPhone
Hambrecht & Quist IncorporatedLead Manager (415) 439-3626
Alex. Brown & Sons IncorporatedCo-manager (410) 895-2700

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Gunderson Dettmer Stough Villeneuve Franklin
Bank's Law Firm: Wilson, Sonsini, Goodrich & Rosati
Auditor: Arthur Andersen
Registrar/Transfer Agent: U. S. Stock Transfer Corporation

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:$208.09Assets:$95.14
Net Income:$0.87Curr Assets:
EPS:$0.05Liabilities:$94.55
Prior EPS:Curr Liabilities:
Cash Flow/Oper:$0.49Equity:$0.59
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company is an international long distance provider offering highly reliable, low cost switched voice services on a wholesale basis, primarily to U.S. based long distance carriers. The company provides international long distance service to over 200 foreign countries through a flexible network of resale arrangements with long distance providers, various foreign network of resale arrangements with long distance providers, various foreign termination relationships, international gateway switches, and leased and owned transmission facilities. The company has grown its revenues rapidly by capitalizing on the deregulation of international telecommunications markets, by combining sophisticated information systems with flexible routing techniques and by leveraging management's industry expertise. The company serves the large and growing international long distance telecommunications market. The company markets to small and medium size long distance companies that do not have the critical mass to invest in their own international transmission facilities or to obtain volume discounts from the larger facilities-based carriers. The company also markets to larger long distance companies seeking lower rates and overflow capacity.

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

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