OrthAlliance, Inc.
Ticker:ORAL 23848 Hawthorne Boulevard, Suite 200
Exchange:NASDAQ-National Market Torrance, CA 90505
Industry:Service (SIC Code 8741) (310) 791-5656

Offering Information
Type of Shares:Class A Common Shares Filing Date:5/14/97
U.S. Shares:2,600,000 Offer Date:8/20/97
Non-U.S. Shares:0 Filing Range:$10.00 - $12.00
Primary Shares:2,600,000 Offer Price:$12.00
Secondary Shares:0 Gross Spread:$0.84
Offering Amount: $28,600,000 Selling:$0.50
Expenses: - Reallowance:$0.10
Shares Out After: -

Primary Underwriting Group
ManagerTierPhone
J.C. Bradford & Co.Lead Manager (615) 748-9347
Oppenheimer & Company, Inc.Co-manager (212) 667-7400

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Nelson Mullins Riley & Scarbourough
Bank's Law Firm: Bass, Berry, & Sims
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
12/31/96 12/31/96
Revenue:$45.38Assets:$14.32
Net Income:$4.18Curr Assets:
EPS:Liabilities:$5.15
Prior EPS:Curr Liabilities:
Cash Flow/Oper:Equity:$9.17
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company was recently organized to create a leading provider of practice management services to orthodontic practices in the United States. The company will manage the business aspects of the Allied Practices, a recent acquisition. The company will affiliate with Allied Practices pursuant to long-term service agreements and will generate revenues by providing management, marketing and development services to Allied Practices. The company intends to aggressively expand its network of Allied Practices by acquiring certain operating assets of and entering into long-term management services agreements with additional practices throughout the United States. The company has entered into definitive agreements, to be consummated simultaneously with the closing of the Offering, to acquire certain operating assets of and enter into long-term management services agreements with 59 Founding Practices, which include 87 orthodontists operating 156 offices located in 17 states. Management believes that the company has distinguished itself from its competitors by affiliating with the Founding Practices, which management believes are leading practices in their markets.

Use of Proceeds
The proceeds from the proposed offering will be used to fund the cash portion of the purchase price for selected assets of the Founding Practices; to repay certain indebtedness; and for general corporate purposes which are expected to include future acquisitions and the development of satellite offices.

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