Premium Cigars International, Ltd.
Ticker:PCIG 15651 North 83rd Way, Suite 3
Exchange:NASDAQ-Small Cap Market Scottsdale, AZ 85260
Industry:Manufacturing (SIC Code 2121) (602) 922-8887

Offering Information
Type of Shares:Common Shares Filing Date:6/25/97
U.S. Shares:1,900,000 Offer Date:8/21/97
Non-U.S. Shares:0 Filing Price:$5.01
Primary Shares:1,900,000 Offer Price:$5.25
Secondary Shares:0 Gross Spread:$0.52
Offering Amount: $9,519,000 Selling:$0.26
Expenses:$675,600 Reallowance:
Shares Out After:3,480,500

Primary Underwriting Group
ManagerTierPhone
W.B. McKee Securities, Inc.Lead Manager (602) 954-0333

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Titus, Brueckner & Berry, P.C.
Bank's Law Firm: Streich Lang
Auditor: Semple & Copper
Registrar/Transfer Agent: American Securities Transfer, Inc

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
9 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
3/31/97 3/31/97
Revenue:$0.85Assets:$0.52
Net Income:-$0.15Curr Assets:
EPS:-$0.10Liabilities:$0.46
Prior EPS:$0.07Curr Liabilities:
Cash Flow/Oper:Equity:$0.06
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company distributes cigars throughout the United States and Canada. The company has placed their cigar distribution program, which includes supplying humidors, cigars, service and information in over 1,400 stores. The company is currently expanding with national retail and distribution accounts in both the United States and Canada. The company's complete PCI Cigar Program includes: imported, hand-rolled, short, medium and long-leaf filler premium cigars from the Dominican Republic, Honduras, Mexico, Micaragua and the Philippines, as well as domestic machine-made mass market cigars; in-store, countertop, custom made, hand-crafted wood and plexiglass humidors; training materials and telemerchandising support to individual stores; point-of purchase information cards and cigar magazine racks; telemerchandising for order fulfillment; large, "walk-in" humidors for distribution center cigar inventory storage; and a spokesman relationship with Arie Luyendyk, the recent winner of the Indianapolis 500.

Use of Proceeds
The proceeds from the proposed offering will be used to expand the PCI Cigar Program, including purchasing humidors, cigars and accessories; repay indebtedness; and fund sales and marketing and working capital.

Principal and Selling Shareholders
Name of Shareholder% Owned
Before
% Owned
After
g17.46%10.74%
Note: Represents ownership of 5% or more prior to the offering.
©1997 IPO Data Systems, Inc. - All rights reserved.