IPO Company Profile
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LJL Biosystems, Inc.
404 Tasman Drive, Sunnyvale, CA 94089 * (408) 541-8787

LJL is developing and marketing proprietary technologies and products to accelerate and enhance the drug discovery process.

Primary Underwriting Group
ManagerTierPhone
Nationsbanc Montgomery Securities, Inc.Lead Manager (415) 627-2100
Hambrecht & Quist IncorporatedCo-manager (415) 439-3626
Volpe Brown Whelan & CompanyCo-manager (415) 274-4463

Offering Information
NASNTL:LJLB Manufacturing: SIC 3826
Type of Shares:Common Shares Filing Date:12/31/97
U.S. Shares:2,000,000 Offer Date:3/12/98
Non-U.S. Shares:0 Filing Range:$7.00 - $8.00
Primary Shares:2,000,000 Offer Price:$7.00
Secondary Shares:0 Gross Spread:$0.49
Offering Amount: $15,000,000 Selling:$0.25
Expenses:$700,000 Reallowance:$0.10
Post-IPO Shares:10,622,003

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Venture Law Group
Bank's Law Firm: Cooley Godward Castro Huddleson & Tatum
Auditor: Price Waterhouse

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
Audited
Income
Balance
Sheet
12/31/96 9/30/97 9/30/96 9/30/97
Revenue:$9.29$4.88$6.72Assets:$7.85
Net Income:$0.16-$0.78$0.21Curr Assets:$7.48
EPS:$0.02-$0.09Liabilities:$1.43
Prior EPS:Curr Liab:$1.38
Cash Flow/Oper:-$0.01-$1.36$2.89Equity:$6.42
Cash Flow/Fin:-$0.50$7.62-$0.33Cash:$7.12
Cash Flow/Inv:-$0.09-$0.31-$0.04Working Cap:$6.10

Competition
The market for HTS products is highly competitive. The Company expects that competition will increase significantly as more biotechnology and pharmaceutical companies adopt high throughput screening instruments as a drug discovery tool and as new companies enter the market with advanced technologies. The Company will compete in many areas, including high throughput screening instruments, assay development and reagent sales. The Company competes with companies which directly market HTS products. In addition, pharmaceutical and biotechnology companies, academic institutions, governmental agencies and other research organizations are conducting research and developing products in various areas which compete with the Company's technology platform, either on their own or in collaboration with others. Many of these competitors have greater financial, operational and sales and marketing resources, and more experience in research and development, than the Company. Further, certain companies offer screening services on a contract or collaborative basis, and these services could eliminate the need for a potential customer to purchase the Company's products. The Company's technological approaches may be rendered obsolete or uneconomical by advances in existing technological approaches or the development of different approaches by one or more of the Company's current or future competitors.

Business Plan
In the second half of 1996, the Company implemented a new strategic business model to develop products for the HTS market. In connection with this change in strategy, the Company shifted its focus from developing and manufacturing clinical diagnostic and research products on an original equipment manufacturing ("OEM") basis to developing, manufacturing and marketing products for the HTS market. As a result, the Company's historical operating and financial performance is not indicative of future financial and business results.

Use of Proceeds
The proceeds from the proposed offering will be used to fund research and development of future products, acquisitions and for general corporate purposes.

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