IPO Company Profile
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Duane Reade, Inc.
440 Ninth Avenue, New York, NY 10001 * (212) 273-5700

The company is the largest drugstore chain in New York City, with 58 of its 67 stores located in Manhattan's high-traffic business and residential districts. The Company operates almost twice as many stores in Manhattan as its next largest competitor.

Primary Underwriting Group
ManagerTierPhone
Donaldson, Lufkin & Jenrette Securities Corp.Lead Manager (212) 371-0641
Goldman, Sachs & Co.Co-manager (212) 902-5959
Salomon Brothers Inc.Co-manager (212) 783-2947

Offering Information
NYSE:DRD Retail: SIC 5912
Type of Shares:Common Shares Filing Date:11/28/97
U.S. Shares:7,278,000 Offer Date:2/9/98
Non-U.S. Shares:0 Filing Range:$14.00 - $16.00
Primary Shares:7,278,000 Offer Price:$16.50
Secondary Shares:0 Gross Spread:$1.15
Offering Amount: $109,170,000 Selling:$0.69
Expenses:$0 Reallowance:$0.10
Post-IPO Shares: -
Employees:2000

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Latham & Watkins
Bank's Law Firm: Weil, Gotshal & Manges
Auditor: Price Waterhouse

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
8 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/28/96 9/27/97 9/28/96 9/27/97
Revenue:$381.47$313.79$281.09Assets:$239.52
Net Income:-$17.85-$14.16-$12.48Curr Assets:
EPS:Liabilities:$313.08
Prior EPS:Curr Liab:
Cash Flow/Oper:$12.60Equity:-$73.56
Cash Flow/Fin:-$10.47Cash:
Cash Flow/Inv:-$3.77Working Cap:$29.85

Competition
The markets in which the Company operates are highly competitive. In the New York City area, the Company competes against national, regional and local drugstore chains, discount drugstores, supermarkets, combination food and drugstores, discount general merchandise stores, mass merchandisers, independent drugstores and local merchants. Major chain competitors in the New York City market include Rite-Aid, Genovese and CVS. Many of the Company's competitors are larger and have greater financial resources than the Company. In addition to competition from the foregoing, the Company's pharmacy departments also compete with hospitals, health maintenance organizations ("HMOs") and mail order prescription drug providers. The Company's drugstores compete, among other things, on the basis of convenience of location and store layout, product mix, selection, customer service and price. There can be no assurance that such competition will not adversely affect the Company's results of operations or financial condition.

Use of Proceeds
The proceeds from the proposed offering will be used to refinance the company.

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