EDAP TMS S.A.
Ticker:EDAPY Parc d'Activites la Poudrette-Lamartine, 4/6, rue du Dauphine
Exchange:NASDAQ-National Market Vaulx-en-Velin, FRANC 69120
Industry:Manufacturing (SIC Code 3841)

Offering Information
Type of Shares:American Depositary Receipts Filing Date:7/7/97
U.S. Shares:2,800,000 Offer Date:7/31/97
Non-U.S. Shares:1,200,000 Filing Range:$9.00 - $11.00
Primary Shares:2,000,000 Offer Price:$9.00
Secondary Shares:2,000,000 Gross Spread:$0.63
Offering Amount: $40,000,000 Selling:$0.35
Expenses: - Reallowance:$0.10
Shares Out After:8,688,500

Primary Underwriting Group
ManagerTierPhone
Lehman Brothers IncorporatedLead Manager (212) 526-8100
Oppenheimer & Company, Inc.Co-manager (212) 667-7400

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Cleary, Gottlieb, Steen & Hamilton
Bank's Law Firm: Simpson, Thacher & Bartlett

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:$29.99Assets:$44.99
Net Income:$1.85Curr Assets:$35.32
EPS:$0.28Liabilities:$23.55
Prior EPS:Curr Liabilities:$19.35
Cash Flow/Oper:Equity:$21.44
Cash Flow/Fin:Cash:
Cash Flow/Inv:Working Cap:$15.98

Business Description
The company develops, produces, markets and distributes a portfolio of minimally-invasive medical devices, primarily for the treatment of urological diseases. The company currently produces and markets devices for the treatment of benign prostate hyperplasia and urinary tract stones. The company is also developing products for the minimally-invasive destruction of certain types of tumors. The company manufactures and sells the Prostatron, a medical device using transuretral microwave thermotherapy for the minimally-invasive treatment of BPH, a non-cancerous urological condition that affects an estimated 20 million men in the United States alone. In patients with BPH, the prostate becomes enlarged and obstructs the urethra, thereby restricting the normal flow of urine. The Prostatron uses microwaves to produce heat in order to destroy a well-defined area of diseased tissue within the prostate without damaging surrounding tissue and organs. The company has developed two versions of the operating software for the Prostatron: Version 2.0, which is designed primarily for symptomatic BPH patients, and Version 2.5, which is designed to treat BPH patients with moderate to severe obstruction of the urethra.

Business Plan
The company's business strategy is to capitalize on its position in urology to achieve long-term growth as a leader in the development, production, marketing and distribution of minimally-invasive medical devices for urological and other indications. In order to achieve that objective, the company intends: (I) to build upon its established position in the ESWL market, (ii) to broaden its customer base of the Prostatron by increasing its penetration of larger hospitals, urology clinics and individual urologists' offices and (iii) to apply its technology toward the minimally-invasive treatment of indications beyond urological disorders.

Use of Proceeds
The proceeds from the proposed offering will be used to fund research and development of high intensity focused ultrasound technology products and the Prostatron, a medical device using transurethral microwave thermotherapy. For marketing expenses relating to the Prostation, capital expenditures and for general corporate purposes.

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