Fulcrum Direct, Inc.
Proposed Ticker:FLCM 4321 Fulcrum Way NE
Exchange:NASDAQ-National Market Rio Rancho, NM 87124-8447
Industry:Retail (SIC Code 5961) (505) 867-7000

Filing Information (This offering has been postponed)
Type of Shares:Common Shares Filing Date:3/10/97
U.S. Shares Filed:2,500,000 Filing Range:$10.00 - $12.00
Non-U.S. Shares Filed:0 Offering Amount: $27,500,000
Primary Shares:2,500,000 Expenses:$650,000
Secondary Shares:0 Shares Out After:8,916,953

Primary Underwriting Group
ManagerTierPhone
Hambrecht & Quist IncorporatedLead Manager (415) 439-3626
PaineWebber IncorporatedCo-manager (212) 713-2626
Robertson, Stephens & CompanyCo-manager (415) 989-8500

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Kirkland & Ellis
Bank's Law Firm: Cooley Godward Castro Huddleson & Tatum
Auditor: Arthur Andersen

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
12/28/96 12/28/96
Revenue:$36.46Assets:$25.90
Net Income:$0.61Curr Assets:
EPS:$0.00Liabilities:$17.77
Prior EPS:$0.05Curr Liabilities:
Cash Flow/Oper:-$2.55Equity:$8.13
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company is a leading direct marketer of proprietary children's apparel brands, including After the Stork, Playclothes, Little Feet, Sunskins and Discount Direct. The company's strategy is to continue to rapidly increase its market penetration by building a portfolio of brands targeting distinct segments of the children's apparel market. The company seeks to maximize the potential of each of its brands, introduce new brands and pursue strategic acquisitions in the fragmented and consolidating children's apparel catalog market. The believes its housefile of 3.0 million names, including 1.2 million active customers as of January 1997 is the largest among children's apparel catalog companies in the U.S. Since the company's inception in 1994 on a compounded annual basis, catalog circulation has increased by 18.4%, while net revenues have grown by 67.9%.

Use of Proceeds
The proceeds from the proposed offering will be used to repay the principal amount of subordinated debt, to purchase trademarks in connection with certain of the company's brands, to purchase the company's headquarters, call center and distribution center, to fund potential acquisitions and for working capital and general corporate purposes.

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