Fania Entertainment Group, Inc.
Proposed Ticker:FNIA 112 West 31st Street
Exchange:NASDAQ-National Market New York, NY 10001
Industry:Manufacturing (SIC Code 3652) (212) 967-3114
# of Employees:7

Filing Information
Type of Shares:Common Shares Filing Date:12/19/97
U.S. Shares Filed:1,600,000 Filing Range:$6.00 - $7.00
Non-U.S. Shares Filed:0 Offering Amount: $10,400,000
Primary Shares:1,600,000 Expenses: -
Secondary Shares:0 Shares Out After:4,575,000

Primary Underwriting Group
ManagerTierPhone
Gilford SecuritiesLead Manager (800) 445-3673

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Tenzer, Greenblatt, Fallon & Kaplan
Bank's Law Firm: Orrick, Herrington & Sutcliffe
Auditor: BDO Seidman
Registrar/Transfer Agent: Continental Stock Transfer & Trust 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:$5.10$3.73$3.60Assets:$8.37
Net Income:$0.86$0.72$0.70Curr Assets:$5.78
EPS:$0.29$0.24$0.23Liabilities:$7.00
Prior EPS:$0.30$1.18$1.73Curr Liabilities:$3.94
Cash Flow/Oper:$2.72-$0.12-$0.50Equity:$1.37
Cash Flow/Fin:-$0.60-$0.25-$0.13Cash:$2.74
Cash Flow/Inv:-$0.44-$0.25Working Cap:$1.84

Business Description
The company is an independent record company that produces, markets and sells Latin music on compact discs and cassette tapes.

Use of Proceeds
The proceeds from the proposed offering will be used for the acquisition of the catalog, record production and manufacturing, advertising, marketing and promotion, and working capital and general corporate purposes.

Additional Underwriter Compensation
Warrant to purchase 160,000 shares/units at a nominal price.

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