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Integrated Sensor Solutions, Inc.
625 River Oaks Parkway, San Jose, CA 95134 * (408) 324-1044

The company designs, manufactures and markets high performance, intelligent sensor products that are used in electronic control systems by customers in the automotive and industrial markets.

Primary Underwriting Group
ManagerTierPhone
Cruttenden Roth IncorporatedLead Manager (800) 678-9147
Dougherty Summit Securities LLCCo-manager

Offering Information
NASNTL:ISNR High-Tech: SIC 3674
Type of Shares:Common Shares Filing Date:12/2/97
U.S. Shares:2,500,000 Offer Date:3/12/98
Non-U.S. Shares:0 Filing Range:$7.50 - $8.50
Primary Shares:2,500,000 Offer Price:$8.00
Secondary Shares:0 Gross Spread:$0.56
Offering Amount: $20,000,000 Selling:$0.30
Expenses:$750,000 Reallowance:$0.10
Post-IPO Shares: -
Employees:95

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Gray Cary Ware & Freidenrich
Bank's Law Firm: Brobeck, Phleger & Harrison
Registrar/Transfer Agent: U. S. Stock Transfer Corporation
Auditor: Ernst & Young

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
3/31/97 9/30/97 9/30/96 9/30/97
Revenue:$10.30$7.01$4.95Assets:$8.74
Net Income:-$2.63$0.10-$1.32Curr Assets:$6.87
EPS:-$0.56$0.02-$0.29Liabilities:$4.28
Prior EPS:-$0.88-$0.73Curr Liab:$4.02
Cash Flow/Oper:-$2.72-$0.49$0.97Equity:$4.47
Cash Flow/Fin:$5.35-$0.31-$0.44Cash:$0.38
Cash Flow/Inv:-$1.09Working Cap:$2.85

Competition
The markets in which the Company competes are highly competitive and characterized by diverse industry requirements and severe pricing pressure in many applications. In the ASIC market, the Company competes with analog and mixed signal semiconductor companies such as Motorola, TI and Analog Devices. The Company's products also compete indirectly with conventional hybrid circuits and standard analog and mixed signal ICs. In the ISD market, the Company competes with Delco, a subsidiary of GM, Motorola, TI, Kavlico and Denso. These companies all have substantially greater financial, technical, manufacturing, marketing, distribution, personnel and other resources than the Company. In addition, in the industrial market, the Company competes with many small companies that have developed specialized electronic sensor products and formed close relationships with their customers. The Company also competes with the in-house development staff of certain of its current and potential customers. The Company anticipates that additional competitors may enter the Company's markets, resulting in even greater competition. Many of the Company's current or prospective competitors own or have investments in wafer foundries, which provide dedicated capacity to these competitors and enable them to influence or control costs more effectively than the Company. There can be no assurance that the Company will be able to compete successfully with existing or new competitors. Increased competition could result in significant price reductions or the loss of current or potential customers or design wins which could materially adversely affect the Company's business, financial condition or operating results. The Company believes that the principal competitive factors affecting its markets include price, supply assurance, product performance and quality, flexibility and responsiveness. The Company believes that it competes favorably with respect to these competitive factors. The Company's technology and products have been well accepted by leaders in the automotive and industrial markets. Through strategic alliances the Company is uniquely positioned to address the emerging needs of the market. Finally, the singular focus on sensor applications enables the Company to respond quickly to meet the customers' needs.

Business Plan
The Company's objective is to be a leading supplier of innovative and proprietary ASICs and ISDs for high performance electronic control systems. The key elements of the Company's strategy to achieve this objective are: (I) Expand and Leverage Strategic Alliances, (ii) Leverage Low Cost ISD Manufacturing Processes, (iii) Maintain Technological Leadership, (iv) Increase Product Offering and Penetrate New Markets and (v) Capitalize on fabless Semiconductor Model.

Use of Proceeds
The proceeds from the proposed offering will be used for general corporate purposes, including repayment of indebtedness, expansion of manufacturing operations and working capital.

Principal and Selling Shareholders
Name of Shareholder% Owned
Before
% Owned
After
Breed Technologies, Inc.11.60%
WK Technology Fund10.90%
TDK Semiconductor Corporation9.70%
Nagano Keiki Co., Ltd.6.10%
Manher D. Naik5.30%
Note: Represents ownership of 5% or more prior to the offering.
Executive Officers and Directors
Officer NameTitleAge
Donald E. PaulusChief Operating Officer40
Ramesh Sirsi, Ph.D.Exeucitve Vice President, Marketing and Sales53
Manher D. NaikPresident, Chief Executive Officer and Chairman of the Board of Directors54
David SatterfieldVice President, Finance and Administration45

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