Cell Robotics International, Inc.
Proposed Ticker:CRII 2715 Broadbent Parkway N.E.
Exchange:NASDAQ-Small Cap Market Albuquerque, NM 87107
Industry:Wholesale (SIC Code 5049) (505) 343-1131
# of Employees:15

Filing Information
Type of Shares:Common Shares Filing Date:11/24/97
U.S. Shares Filed:2,000,000 Filing Range:$4.00 - $5.00
Non-U.S. Shares Filed:0 Offering Amount: $9,000,000
Primary Shares:2,000,000 Expenses:$550,000
Secondary Shares:0 Shares Out After:7,222,414

Primary Underwriting Group
ManagerTierPhone
Paulson Investment Company, Inc.Lead Manager (503) 243-6028
Cohig & Associates Inc.Co-manager (303) 694-0295

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Neuman & Drennen, LLC
Bank's Law Firm: Morse, Zelnick, Rose & Lander, LLP
Auditor: KPMG Peat Marwick
Registrar/Transfer Agent: Corporate Stock Transfer, Inc. CO

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
12/31/96 9/30/97 9/30/96 9/30/97
Revenue:$0.66$0.83$0.59Assets:$1.78
Net Income:-$1.54-$1.82-$1.08Curr Assets:$1.50
EPS:-$0.37-$0.36-$0.28Liabilities:$0.73
Prior EPS:-$0.66-$1.80-$0.92Curr Liabilities:$0.73
Cash Flow/Oper:-$1.32$0.67$2.43Equity:$1.06
Cash Flow/Fin:$2.44-$0.03-$0.12Cash:$0.56
Cash Flow/Inv:-$0.14-$0.03Working Cap:$0.77

Business Description
The company has developed, and is preparing to manufacture, market and sell, a number of sophisticated medical laser products. The "Lasette-TM-," a compact lightweight, portable skin perforator, has been designed to permit nearly painless sampling of capillary blood in both clinical and home settings. The "RevitaLase-TM-," is a modularly-designed laser system for dermatological use, which incorporates the laser in the hand-piece. Its design allows for suitable for specific applications, driven by a common base unit containing computer controls, power supply and cooling system. The company intends to market the RevitaLase-TM- with its Erbium:YAG laser head by establishing an OEM relationship with a major manufacturer of CO2 and other medical laser systems for the aesthetic market, to be supplemented by direct selling methods by the company, except that in the United States the IVF Workstation-TM- will not be offered for laser-assisted hatching until after FDA clearance is obtained.

Competition
The industry in which the company competes with its medical laser products is characterized by rapidly evolving technology and intense competition. Many companies of all sizes, including both large organizations as well as several specialized medical laser products companies are engaged in activities similar to that of the company. In addition, colleges universities, governmental agencies and other public and private research institutions will continue to conduct research and to protect technologies that they have developed, some of which will be directly competitive with that of the company. Many of the company's competitors have substantially greater financial, research and development, human and other resources than the company. The company believes it has certain technological advantages in producing the compact, low-cost laser design in the Lasette-TM- and the RevitaLase-TM-. However, the company's cost advantage is dependent in part upon its ability to maintain its relationship with New Technology Enterprise Center, its Russian associate, the supplier of the crystals used in the manufacture of its lasers, the continuation of which is in doubt due to current unresolved disputes between the company and NTEC. In addition, the company has experienced quality or supply problems with its Russian supplier, either of which, if not remedied, could necessitate it changing the source of supply. Alternative sources of supply for the crystals, while available, would increase the production cost of the company's product and reduce its competitive advantage.

Business Plan
The company has developed a business strategy to provide a line of technologically-advanced proprietary medical laser products for both clinical and consumer markets. The company's goal is to provide advanced medical laser products that provide superior safety, efficacy and comfort at competitive prices. The key components of this business strategy include: (I) Exploit Proprietary Technology, (ii) Develop Market Recognition, (iii) Establish Exclusive Distribution Channels and (iv) Rapidly Expand Capacity to Assemble Products.

Use of Proceeds
The proceeds from the proposed offering will be used to fund marketing and sales, to acquire fixed assets, to hire additional marketing and manufacturing personnel, to fund further research and development and for working capital and for general corporate purposes.

Principal and Selling Shareholders
Name of Shareholder% Owned
Before
% Owned
After
Richard S. Hall11.90%8.60%
Ronald K. Lohrding8.80%6.40%
Mitsui Engineering & Shipbuilding Co., Ltd.7.80%5.70%
Note: Represents ownership of 5% or more prior to the offering.
Executive Officers and Directors
Officer NameTitleAge
Michael WolfChief Engineer55
Jean ScharfChief Financial Officer and Controller35
Richard ZigweidManufacturing Manager49
Dr. Ronald K. LohrdingPresident, Chief Executive Officer and Chairman of the Board56
Dr. Larry KeenanProduct Manager, CR Workstation50
Dr. Jerome ConiaProduct Manager, IVF Workstation-TM-37
David CostelloProduct Manager, Lasette-TM-42
Connie WhiteRegulatory Affairs and Quality Manager43
Craig T. RogersVice-President of Investor Relations, Secretary, Treasurer and Director35
Travis LeeVice-President of Sales and Marketing38

Additional Underwriter Compensation
Warrant to purchase 200,000 shares/units at a nominal price.
Exercise price of $5.40 for 4 year(s), 1 year(s) from .

©1997 IPO Data Systems, Inc. - All rights reserved.