IPO Company Profile
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American Bank Note Holographics, Inc.
399 Executive Boulevard, Elmsford, NY 10523 * (914) 592-2355

The company is a world leader in the origination, production and marketing of mass-produced secure holograms.

Primary Underwriting Group
ManagerTierPhone
Nationsbanc Montgomery Securities, Inc.Lead Manager (415) 627-2100
Lazard Freres & Co.Co-manager (212) 632-6717
Raymond James & Associates, Inc.Co-manager (813) 573-8108
Salomon Smith BarneyCo-manager (212) 723-7300

Offering Information
NASNTL:ABH Manufacturing: SIC 3398
Type of Shares:Common Shares Filing Date:5/5/98
U.S. Shares:13,636,000 Offer Date:7/14/98
Non-U.S. Shares:0 Filing Range:$9.00 - $9.50
Primary Shares:0 Offer Price:$8.50
Secondary Shares:13,636,000 Gross Spread:$0.60
Offering Amount: $126,133,000 Selling:$0.35
Expenses: - Reallowance:$0.10
Post-IPO Shares:13,636,000
Spin out parent firm: American Banknote Corporation
Employees:110

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Paul, Hastings, Janofsky & Walker
Bank's Law Firm: Fried, Frank, Harris, Shriver & Jacobson
Registrar/Transfer Agent: Bank of New York
Auditor: Deloitte & Touche

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Audited
Income
Balance
Sheet
12/31/97 12/31/97
Revenue:$30.91Assets:$35.82
Net Income:$7.54Curr Assets:$21.29
EPS:$0.55Liabilities:$6.04
Prior EPS:$0.35Curr Liab:$3.99
Cash Flow/Oper:Equity:$29.78
Cash Flow/Fin:Cash:$0.25
Cash Flow/Inv:Working Cap:$17.30

Competition
The holography industry is highly competitive and highly fragmented, with approximately 50 companies in the security sector. A number of the Company's competitors are larger or are divisions of larger companies, and have greater financial resources, than the Company. In the holography industry, competition is generally based on technology, price, product quality and customer service. The Company also competes with other non-holographic methods or devices. The Company believes its leading position in the security sector of the holography market is attributable to its years of technical expertise and experience in the mass production of secure holograms, as well as its reputation for secure facilities and inventory control systems.

Business Plan
The Company's strategy is to maintain and expand its leading market position in the security sector of the holography market in the following manner: (I) Maintain Leadership in Transaction Cards, (ii) Grow Product Authentication Area, (iii) Promote Acceptance of Holograms on Documents of Value, (iv) Expand ABNH's Security Products and Services for Licensed Products, (v) Grow through Strategic Acquisitions, (vi) Focus on International Expansion, (vii) Continue the Development of Holographic Technology and (viii) Continue Operating Improvements.

Use of Proceeds
The proceeds from the proposed offering will be used distributed to selling shareholder.

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