Hyseq, Inc.
Ticker:HYSQ 670 Almanor Avenue
Exchange:NASDAQ-National Market Sunnyvale, CA 94086
Industry:Manufacturing (SIC Code 2835) (408) 524-8100

Offering Information
Type of Shares:Common Shares Filing Date:6/12/97
U.S. Shares:3,000,000 Offer Date:8/7/97
Non-U.S. Shares:0 Filing Range:$12.00 - $14.00
Primary Shares:3,000,000 Offer Price:$14.00
Secondary Shares:0 Gross Spread:$0.98
Offering Amount: $39,000,000 Selling:$0.55
Expenses:$750,000 Reallowance:$0.10
Shares Out After:12,127,418

Primary Underwriting Group
ManagerTierPhone
Lehman Brothers IncorporatedLead Manager (212) 526-8100
Fahnestock & Co. Inc.Co-manager (212) 668-8163
Smith Barney Inc.Co-manager (212) 723-7300

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Sachnoff & Weaver
Bank's Law Firm: Wilson, Sonsini, Goodrich & Rosati
Auditor: Ernst & Young
Registrar/Transfer Agent: U. S. Stock Transfer Corporation

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
3 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/96 3/31/97 3/31/96 3/31/97
Revenue:$0.43$0.27$0.08Assets:$7.55
Net Income:-$4.84-$1.92-$1.27Curr Assets:
EPS:-$0.52-$0.21Liabilities:$1.97
Prior EPS:-$1.71-$0.83Curr Liabilities:
Cash Flow/Oper:-$6.85Equity:$5.57
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company applies the proprietary DNA array technology of its integrated HyX genomics platform to develop gene-based therapeutic product candidates and diagnostic products and tests. The company believes that its HyX Platform, which utilizes the company's proprietary sequencing by hybridization technology as its foundation, generates higher gene sequence throughput with greater analytical flexibility and accuracy and lower cost than prevailing technologies. The HyX Platform'sGene Discovery Module presently is analyzing human DNA samples at a rate of approximately 50% of a module's current capacity. Based in part on this rate of analysis and on published industry information, the company believes that its HyGenomics Database of partial gene sequences is one of the largest proprietary human gene databases in the world. The company has collaborative agreements with ciron Corporation regarding commercialization of its HyChip products, and initial agreements with SmithKline Beecham Clinical Laboratories, Inc. and Quest Diagnostics Incorporated regarding evaluation of its HyGnostics Module for commercial-scale diagnostic testing.

Use of Proceeds
The proceeds from the proposed offering will be used for development of potential therapeutic product candidates and diagnostic tests, expansion of the HyGenomics Database, further development of the HyChip Module, investments in capital equipment and leasing of additional space to increase capacity and general corporate purposes, including working capital.

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