IPO Company Profile
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Paradigm Geophysical Ltd.
32 Maskit Street, Herzlia, Israel 46120

The company is a leader in seismic depth domain systems, and developer of GeoDepth 2D and 3D depth imaging software. The software generates detailed computer models of the earth's sub-surface geology using large quantities of seismic and well log data.

Primary Underwriting Group
ManagerTierPhone
Schroder Wertheim & Company, IncorporatedLead Manager (212) 492-6900
BancAmerica Robertson StephensCo-manager (415) 989-8500

Offering Information
NASNTL:PGEOF High-Tech: SIC 7372
Type of Shares:Ordinary Shares Filing Date:11/10/97
U.S. Shares:3,350,000 Offer Date:6/9/98
Non-U.S. Shares:0 Filing Range:$6.00 - $7.00
Primary Shares:3,350,000 Offer Price:$7.00
Secondary Shares:0 Gross Spread:$0.49
Offering Amount: $21,775,000 Selling:$0.25
Expenses:$1,000,000 Reallowance:$0.10
Post-IPO Shares:10,414,484

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Fulbright & Jaworski
Bank's Law Firm: Kaye, Scholer, Fierman, Hays & Handler
Registrar/Transfer Agent: American Stock Transfer & Trust Co
Auditor: Ernst & Young

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
Audited
Income
Balance
Sheet
12/31/96 9/30/97 9/30/96 9/30/97
Revenue:$11.60$11.99$8.63Assets:$22.73
Net Income:-$5.37$0.22-$1.99Curr Assets:$10.04
EPS:-$1.85$0.03-$0.69Liabilities:$9.62
Prior EPS:-$0.54Curr Liab:$8.08
Cash Flow/Oper:-$1.51$0.62-$1.51Equity:$13.11
Cash Flow/Fin:$10.71$1.49$11.20Cash:$2.19
Cash Flow/Inv:-$2.44-$7.05-$1.30Working Cap:$1.96

Competition
The development, sale and support of software designed to facilitate the exploration and development of oil and natural gas reserves is a highly competitive business. The company believes that it has three major competitors worldwide: GeoQuest, a division of Schlumberger Ltd.; Landmark Graphics Corporation, a subsidiary of Haliburton Company; and Western Geophysical, a division of Western Atlas, Inc. Since these competitors are divisions or subsidiaries of multinational industrial enterprises, the company believes they have far greater financial and other resources to the development of technology and utilize their relationships to gain an advantage in the future. The company also faces include product quality, first-to-market product capabilities, product performance, ease of use, price, customer support and reputation for dependability.

Business Plan
The company's strategy for achieving these objectives includes the following key elements: (I) Retain and Leverage Technological Leadership, (ii) Provide Integrated Software Solutions, (iii) Expand Geophysical Consulting Services and (iv) Emphasize Customer Support.

Use of Proceeds
The proceeds from the proposed offering will be used to repay debt, fund the growth of consulting services offered, for working capital and potential acquisitions.

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