Information Management Associates, Inc.
(www.ima-inc.com)
Ticker:IMAA One Corporate Drive, Suite 414
Exchange:NASDAQ-National Market Shelton, CT 06484
Industry:High-Tech (SIC Code 7372) (203) 925-6800

Offering Information
Type of Shares:Common Shares Filing Date:3/6/97
U.S. Shares:3,900,000 Offer Date:7/30/97
Non-U.S. Shares:0 Filing Range:$11.00 - $13.00
Primary Shares:2,025,000 Offer Price:$13.00
Secondary Shares:1,875,000 Gross Spread:$0.91
Offering Amount: $46,800,000 Selling:$0.52
Expenses:$1,000,000 Reallowance:$0.10
Shares Out After:8,900,538

Primary Underwriting Group
ManagerTierPhone
Alex. Brown & Sons IncorporatedLead Manager (410) 895-2700
Robertson, Stephens & CompanyCo-manager (415) 989-8500
SoundView Financial Group, Inc.Co-manager (203) 462-7242

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Lebdeuf, Lamb, Greene & Macrae
Bank's Law Firm: Ropes & Gray
Auditor: Arthur Andersen
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:$26.28Assets:$17.28
Net Income:-$1.05Curr Assets:
EPS:-$0.17Liabilities:$15.89
Prior EPS:Curr Liabilities:
Cash Flow/Oper:-$3.29Equity:$1.39
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company develops, markets and supports customer interaction software designed to increase the productivity and revenue-generating capabilities of mid-size to large-scale telephone call centers. The company's EDGE TeleBusiness software (EDGE) is a suite of applications and tools that enable businesses to automate telebusiness activities (telemarketing, telesales, account management, customer service and customer support) on an enterprise-wide basis. The company complements its EDGE products by offering its clients professional consulting, technical support and maintenance services. Significant customers include APAC Teleservices, Inc., AT&T; Corp., Belgacom, S.A., Bose Corporation, SITEL Corporation, Sprint PCS, United Parcel Service General Services Co., Wells Farge Bank, N.A. and Zurich Insurance Company. The company's EDGE products are designed to provide superior functionality, flexibility, integration, scalability and speed of deployment. Based upon an open systems software architecture, EDGE supports multiple hardware platforms, operating environments, database management systems, network topologies, desktop standards, and legacy system and computer-telephony middleware.

Competition
The data communications market into which the company sells its products is intensely competitive and is subject to frequent product introductions with improved price/performance characteristics, rapid technological change, unit ASP erosion and continued emergence of new industry standards. The semiconductor industry is also intensely competitive and is characterized by rapid technological change, product obsolescence and unite ASP erosion. The company expects competition to increase in the future from existing competitors and from companies that may enter the ocmpany's existing or future markets, including certain current customers, with similar or substitute solutions that may be less costly or provide better performance or features than the company's products. To be successful in the future, the company must continue to respond promptly and effectively to changing customer performance, feature and pricing requirements, technological change and competitors' innovations. The company is contractually prohibited from marketing certain of the features of its switched Ethernet LAN controllers designed for one of its significant customers to other potential customers. This restriction could place the company at a significant competitive disadvantage if such features were to be offered by its competitors before the company completes development of its next generation switched Ethernet LAN controllers incorporating such features. There can be no assurance that the company will be able to compete successfully against current and future competitors or that competitive pressures faced by the company will not materially adversely affect the company's business, financial condition and results of operations.

Business Plan
The company's objective is to continue to develop "datacom systems on silicon" that enable network system vendors to get to market quickly with high performance, cost-effective and scalable systems. Key elements of the company's strategy to continue to achieve this objective include the following: (I) Focus on the High-Growth, Rapidly Evolving LAN and WAN Markets, (ii) Provide System-Level Solutions to Optimize Performance, (iii) Provide Flexible Semiconductor Devices that Enable Customers to Manufacture Systems Across the Price/Performance Spectrum, (iv) Strengthen and Expand Customer Relationships and (v) Maintain Technological Leadership.

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

©1997 IPO Data Systems, Inc. - All rights reserved.