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Allied Riser Communications Corporation
1700 Pacific Avenue, Dallas, TX 75201 * (214) 210-3000
Business Description The company is a facilities-based provider of broadband data, video and voice communications services to small and medium sized businesses in major metropolitan areas in the United States.
Offering
Information

Company has
gone public

Trading As  ARCC (NASNTL) Industry  Telecommunications (SIC 4813)
Type of Stock Offered  Common Shares Filing Date  8/19/99
Domestic Shares Offered  15,750,000 Offer Date  10/28/99
Foreign Shares Offered  0 Filing Range  $16.00 - $18.00
Company Shares  15,750,000 Offer Price  $18.00
Selling Shrhldrs Shares  0 Gross Spread  $1.080
Gross Proceeds  $283,500,000 Selling  $0.640
Expenses  - - Reallowance  $0.100
Post-IPO Shares  - - Employees  - -
Primary
Underwriting
Group
Underwriter NameParticipationUnderwriter Phone
Goldman, Sachs & Co. Lead Manager (212) 902-5959
Donaldson, Lufkin & Jenrette Securities Corp. Co-manager (212) 371-0641
Merrill Lynch & Co. Co-manager (212) 449-4600
Thomas Weisel Partners LLC Co-manager (415) 364-2500
Income
Statement
and
Cash Flow
Summary
  Prior
Audited
Income
Latest
Unaudited
Income
  Full Year Audited Figures 6 Months Ending
Figures in U.S. millions except per share data       12/31/97 12/31/98 6/30/98 6/30/99
Revenues   - - - 0.000 0.212 0.027 0.547
Income from Oper.   - - - -1.438 -14.004 -4.178 -14.775
Net Income   - - - -1.497 -14.610 -4.382 -14.407
E.P.S   - - - - - - -
Revenue Growth (%)      - - - -   1,925.93
Net Income Growth (%)      - - - -   -
Oper. Profit Margin (%)    - - - - - - -
Net Profit Margin (%)    - - - - - - -
Cash Flow - Oper.     -14.42 -3.62 -10.38
Cash Flow - Inv.     -8.12 - -
Cash Flow - Fin.     63.72 - -
Balance Sheet
Summary
and
Financial
Ratios
Balance sheet as of: 6/30/99 Financial Ratios
Total Assets    47.22 Current Assets    - Current Ratio    -
Total Liab.    11.31 Current Liab.    - Debt Ratio    23.95%
Total Equity    35.91 Working Cap.    - Debt to Equity Ratio    0.31
Cash    24.31    Return on Assets   -
Use Of
Proceeds
The proceeds from the proposed offering will be used for the construction of in-building networks, general corporate purposes, working capital and business acquisitions and investments.
Legal Counsel
Registrar
Auditor
Issuer's Law Firm  Skadden, Arps, Slate, Meagher & Flom
Bank's Law Firm  Shearman & Sterling
Registrar/Transfer Agent  American Stock Transfer & Trust Co
Auditor  Arthur Andersen
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Industry
Competition
The company faces competition from many entities with significantly greater financial resources, well-established brand names and larger customer bases. The numerous companies that may seek to enter the company's niche may expose it to severe price competition for the company's services or for building access rights. The company expects competition to intensify in the future. The company expects significant competition from traditional and new telecommunications companies, including local, long distance, cable modem, Internet, digital subscriber line, microwave, mobile and satellite data service providers. If these potential competitors successfully focus on our niche, there may be intense price competition which could impede the company's ability to become profitable.
Business
Plan
The company's objective is to be the primary provider of broadband communications services to our target market. To achieve this objective the company will employ the following strategies: (i) Partner with Real Estate Owners; (ii) Sell Broadband Connections and Bandwidth-Enabled Applications; (iii) Own the Key Elements of the Local Broadband Network; (iv) Capitalize On the Company's First Mover Advantage; (v) Design Networks for the Future; (vi) Target Small- and Medium-Sized Businesses; (vii) Focus Sales and Marketing Efforts; (viii) Expand the Company's Service Offerings; (ix) Offer Service to Customers In Selected Other Buildings; and (x) Provide Excellent Customer Care.

Last updated: 1/5/00 10:17:26 PM
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