ImageMAX, Inc.
Ticker:IMAG Two Bala Plaza, Suite 300
Exchange:NASDAQ-National Market Bala Cynwyd, PA 19004
Industry:Service (SIC Code 7389) (610) 660-7754
# of Employees:950

Offering Information
Type of Shares:Common Shares Filing Date:9/12/97
U.S. Shares:3,100,000 Offer Date:12/3/97
Non-U.S. Shares:0 Filing Range:$12.00 - $14.00
Primary Shares:3,100,000 Offer Price:$12.00
Secondary Shares:0 Gross Spread:$0.84
Offering Amount: $40,300,000 Selling:$0.40
Expenses:$1,250,000 Reallowance:$0.10
Shares Out After:5,438,727

Primary Underwriting Group
ManagerTierPhone
William Blair & CompanyLead Manager (312) 364-8990
Janney Montgomery ScottCo-manager (215) 665-6520

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Pepper Hamilton & Scheetz
Bank's Law Firm: Sonnenschein Nath & Rosenthal
Auditor: Arthur Andersen
Registrar/Transfer Agent: StockTrans, Inc.

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
6 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/96 6/30/97 6/30/96 6/30/97
Revenue:$43.26$24.59$21.16Assets:$52.64
Net Income:-$0.24$1.17-$0.24Curr Assets:$13.91
EPS:-$0.05$0.23-$0.05Liabilities:$41.95
Prior EPS:Curr Liabilities:$40.55
Cash Flow/Oper:Equity:$10.69
Cash Flow/Fin:Cash:$3.24
Cash Flow/Inv:Working Cap:-$26.64

Business Description
The company was founded in November 1996 to become a leading national, single-source provider of integrated document management solutions. The company currently has not conducted any operations. The Company has initially targeted a broad variety of services and products, as well as technical and vertical market expertise, in order to create a platform from which it can become a leading national, single-source provider for clients with intensive document management needs. The Company's services include document management consulting, media conversion (consisting of digital imaging and micrographics), data indexing, information storage and retrieval, and document management systems maintenance. The Company's products include proprietary, open-architecture digital imaging and indexing software as well as document management systems and supplies. The Company provides these services and products individually or in combination to provide solutions to a wide range of clients' document management needs. The Company's service and product offering mix is designed to take advantage of the Company's substantial technical and systems experience in the area of digital document management as well as product and vertical market knowledge of the Founding Companies' managers, who have an average of 14 years industry experience.

Competition
The Company operates in a competitive environment. The document management services industry is highly fragmented and has relatively low barriers to entry. A significant source of competition is the in-house document handling capability of businesses within the Company's target markets, the so-called "unvended" part of the market. Despite current trends in favor of greater outsourcing, there can be no assurance that these businesses will outsource more of their document management needs or that other businesses will not bring in-house services that they currently outsource. In addition, certain of the Company's competitors are larger businesses, many of which have greater financial and other resources than the Company. Certain of these competitors operate in broader geographic areas than the Company, and others may choose to enter the Company's areas of operation in the future. In addition, there may be no assurance that other companies with greater resources than the Company will not enter the document management services industry in the future. Further, the Company intends to enter new geographic areas and expects to encounter significant competition from established competitors in each of such new areas. As a result of this competitive environment, the Company may lose clients or have difficulty in acquiring new clients, and its business, financial condition and results of operations may be adversely affected.

Business Plan
The Company's goal is to become a leading national, single-source provider of integrated document management solutions. The Company intends to implement a business strategy focused on the following key elements: (i) Become a Leading Single-Source Provider, (ii) Capitalize on Business Integration, (iii) Expand Sales and Marketing Efforts and (iv) Make Selective Acquisitions.

Use of Proceeds
The proceeds from the proposed offering will be used to fund the acquisitions and for general corporate purposes including future acquisitions.

Principal and Selling Shareholders
Name of Shareholder% Owned
Before
% Owned
After
Bruce M. Gillis12.60%5.40%
Gary D. Blackwelder11.10%4.80%
Andrew R. Bacas9.50%4.10%
Rex Kanb8.10%3.50%
Mitchell J. Taube7.90%3.40%
David C. Utz, Jr.6.70%2.90%
Note: Represents ownership of 5% or more prior to the offering.
Executive Officers and Directors
Officer NameTitleAge
Bruce M. GillisChief Executive Officer and Chaiman of the Board of Directors40
S. David ModelPresident and Chief Operating Officer40
James D. BrownSenior Vice President - Corporate Development, Secretary and Director39

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