Molecular Simulations, Inc.
Proposed Ticker:MSIM 9685 Scranton Road
Exchange:NASDAQ-National Market San Diego, CA 92121
Industry:High-Tech (SIC Code 7372) (619) 458-9990

Filing Information
Type of Shares:Common Shares Filing Date:2/10/97
U.S. Shares Filed:2,500,000 Filing Range:$11.00 - $13.00
Non-U.S. Shares Filed:0 Offering Amount: $30,000,000
Primary Shares:1,435,000 Expenses:$650,000
Secondary Shares:1,065,000 Shares Out After:8,045,952

Primary Underwriting Group
ManagerTierPhone
Hambrecht & Quist IncorporatedLead Manager (415) 439-3626
Adams, Harkness & HillCo-manager (617) 371-3705
Volpe, Welty & CompanyCo-manager (415) 274-4463

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Cooley Godward Castro Huddleson & Tatum
Bank's Law Firm: Gunderson Dettmer Stough Villeneuve Franklin
Auditor: Arthur Andersen
Registrar/Transfer Agent: Harris Trust Company of California

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:$47.26Assets:$41.27
Net Income:$2.60Curr Assets:
EPS:$0.34Liabilities:$33.88
Prior EPS:-$4.56Curr Liabilities:
Cash Flow/Oper:$7.75Equity:$7.39
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company is the leading provider of molecular modeling and simulation software. The company designs, develops, markets and supports software that facilitates the discovery and development of new products and processes in the pharmaceutical, biotechnology, chemical, petrochemical and materials industries. Using the company's products, researchers are able to increase the speed and efficiency of the research and development cycle, thereby reducing product development costs and shortening the time to market for new product introductions and process improvements. The company's customers comprise leading commercial, governmental and academic organizations, including many of the largest pharmaceutical, biotechnology, chemical, petroleum and semiconductor companies worldwide. The company has a comprehensive product suite consisting of over 100 application modules based on proprietary technologies that employ fundamental scientific principles, advanced computer visualization, molecular modeling techniques and computational chemistry.

Use of Proceeds
The proceeds from the proposed offering will be used for working capital and other general corporate purposes, primarily in the areas of research and development, sales, marketing and customer support.

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