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Extended Systems Incorporated
5777 North Meeker Avenue, Boise, IA 83713 * (208) 322-7575

The company provides distributed and mobile computing solutions that address the needs of the virtual enterprise. The company designs, develops, markets and sells distributed connectivity products and mobile systems products.

Primary Underwriting Group
ManagerTierPhone
Volpe Brown Whelan & CompanyLead Manager (415) 274-4463
Needham & CompanyCo-manager (212) 705-0344

Offering Information
NASNTL:XTND High-Tech: SIC 3577
Type of Shares:Common Shares Filing Date:12/19/97
U.S. Shares:1,550,000 Offer Date:3/3/98
Non-U.S. Shares:0 Filing Range:$8.00 - $10.00
Primary Shares:1,300,000 Offer Price:$8.00
Secondary Shares:250,000 Gross Spread:$0.56
Offering Amount: $13,950,000 Selling:$0.30
Expenses:$730,000 Reallowance:$0.10
Post-IPO Shares: -
Employees:258

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Wilson, Sonsini, Goodrich & Rosati
Bank's Law Firm: Cooley Godward Castro Huddleson & Tatum
Registrar/Transfer Agent: Boston Equiserve Limited Partnership
Auditor: Coopers & Lybrand

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
3 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Audited
Income
Balance
Sheet
6/30/97 9/30/97 9/30/96 9/30/97
Revenue:$39.53$11.15$8.94Assets:$27.24
Net Income:$2.68$0.64$0.63Curr Assets:$18.83
EPS:$0.37$0.09$0.09Liabilities:$12.57
Prior EPS:$0.32Curr Liab:$5.00
Cash Flow/Oper:$2.60$2.13$1.16Equity:$14.66
Cash Flow/Fin:-$0.28-$0.08-$0.01Cash:$7.95
Cash Flow/Inv:-$1.43-$0.72-$0.58Working Cap:$13.83

Competition
The markets for the Company's products are intensely competitive, and are characterized by frequent new product introductions, rapidly changing technology and standards, constant price pressure and competition for distribution channels. The principal competitive factors in the Company's markets include brand-name awareness, price, product performance, reliability, breadth of product line, sales and distribution capability and technical support and service. Certain of these factors are outside the Company's control. There can be no assurance that the Company will be able to compete successfully in the future with respect to these or any other competitive factors or that competition will not have a material adverse effect on the Company's business and results of operations.

Business Plan
The Company's objective is to be a leading supplier of distributed and mobile computing solutions for the virtual enterprise. To achieve this objective, the Company has adopted the following key strategies: (I) Meet the Emerging Needs of the Virtual Enterprise, (ii) Expand and Leverage Core Technologies, (iii) Expand Distribution Channels, (iv) Increase Sales to Existing End Users and (v) Acquire Complementary Businesses, Products and Technologies.

Use of Proceeds
The proceeds from the proposed offering will be used for general corporate purposes including working capital and potential acquisitions.

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