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audiohighway.com
20600 Mariani Avenue, Cupertino, CA 95014 * (408) 255-5301

The company offers a proprietary information and entertainment services that enables its users to download and play back selected audio content from the Internet.

Primary Underwriting Group
ManagerTierPhone
Paulson Investment Company, Inc.Lead Manager (503) 243-6028

Offering Information
NASNTL:AHWY Internet: SIC 7375
Type of Shares:Common Shares Filing Date:7/24/98
U.S. Shares:2,200,000 Offer Date:12/16/98
Non-U.S. Shares:0 Filing Price:$6.00
Primary Shares:2,200,000 Offer Price:$6.50
Secondary Shares:0 Gross Spread:
Offering Amount: $13,200,000 Selling:
Expenses:$1,015,000 Reallowance:
Post-IPO Shares:3,261,959
Employees:15

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Grover Wickersham
Bank's Law Firm: Stoel Rives Boley Jones & Grey
Registrar/Transfer Agent: U. S. Stock Transfer Corporation
Auditor: Grant Thornton

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
Audited
Income
Balance
Sheet
12/31/97 6/30/98 6/30/97 6/30/98
Revenue:$0.00$0.05$0.00Assets:$0.65
Net Income:-$3.79-$1.67-$1.50Curr Assets:$0.29
EPS:-$4.11-$1.67-$1.66Liabilities:$2.61
Prior EPS:-$2.10Curr Liab:$1.83
Cash Flow/Oper:-$1.81-$1.21-$0.80Equity:-$1.96
Cash Flow/Fin:$1.58$1.48$0.53Cash:$0.24
Cash Flow/Inv:-$0.16-$1.22-$0.10Working Cap:-$1.54

Use of Proceeds
The proceeds from the proposed offering will be used to fund expansion of sales and marketing activities, ongoing research and development efforts, acquisition of capital equipment and Internet infrastructure, content acquisition and working capital and for general corporate purposes.

Additional Underwriter Compensation
Warrant to purchase 200,000 shares/units at a nominal price.

Warrant Information
# of Units:2,000,000
Unit Ticker: - Unit Price:
Warrant Ticker:Z Warrant Price:
Warrant Exercise Date: Warrant Exercise Price:
Warrant Expiration Date:
Warrant Detachable: Yes Warrant Detach Date:
Warrant Callable: No
Unit Composition: 1 Common Share + 1 Warrant
Warrant Entitlement: 1 Common Share


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