Advanced UroScience, Inc.
Proposed Ticker:AURO 1290 Hammond Road
Exchange:NASDAQ-National Market St. Paul, MN 55110
Industry:Manufacturing (SIC Code 3845) (612) 653-8512

Filing Information
Type of Shares:Common Shares Filing Date:10/10/97
U.S. Shares Filed:2,500,000 Filing Range:$9.00 - $11.00
Non-U.S. Shares Filed:0 Offering Amount: $25,000,000
Primary Shares:2,500,000 Expenses:$400,000
Secondary Shares:0 Shares Out After:7,626,720

Primary Underwriting Group
ManagerTierPhone
Dain Bosworth IncorporatedLead Manager (612) 371-2818
Adams, Harkness & HillCo-manager (617) 371-3705

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Fredrikson & Byron
Bank's Law Firm: Oppenheimer Wolff & Donnelly
Auditor: McGladrey & Pullen
Registrar/Transfer Agent: Norwest Bank of Minnesota

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:$0.00$0.00$0.00Assets:$4.89
Net Income:-$1.51-$1.17-$0.62Curr Assets:$4.63
EPS:-$0.30-$0.22-$0.13Liabilities:$0.31
Prior EPS:-$0.12-$1.19-$0.45Curr Liabilities:$0.31
Cash Flow/Oper:-$1.23$5.39$1.22Equity:$4.58
Cash Flow/Fin:$1.22-$1.67-$0.06Cash:$4.39
Cash Flow/Inv:-$0.11-$1.67Working Cap:$4.32

Business Description
The company has developed ACYST, an injectable bulking agent designed to treat stress urinary incontinence. ACYST is designed to provide permanent bulking around the urethra to close the bladder neck. The injection procedure for ACYST is minimally invasive, can be accomplished in less than 30 minutes in an outpatient setting and is designed to immediately restore the patient to normal urinary continence. ACYST incorporates micro-beads that are designed to be non-absorbable, non-migratory, biocompatible and intended to provide a permanent solution, thereby minimizing the potential need for retreatment. It is estimated that there are 13 million adults with urinary incontinence in the U.S., of which approximately 85% are women. Approximately 9 million adults with urinary incontinence suffer from stress urinary incontinence. The Company believes that the majority of these people may benefit from treatment with ACYST. Initially, the Company will seek U.S. Food and Drug Administration ("FDA") approval to market ACYST for the treatment of stress urinary incontinence due to intrinsic sphincter deficiency, which the Company estimates affects approximately 1.5 million adults. The Company intends to conduct future human clinical trials to support expanded applications of ACYST in order to address a larger segment of the population suffering from stress urinary incontinence.

Use of Proceeds
The proceeds from the proposed offering will be used to fund ongoing and future human clinical trials, research and development, international sales and marketing, expansion of manufacturing capabilities and working capital and general corporate purposes.

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