STOCKREPORTS

Meridian Data, Inc.

NASDAQ Symbol MDCD

Recent Price 4.13 52 Wk Range 9.25 - 3.50

Yield Nil 12-Mo. P/E NM

Quantitative Evaluation: Outlook (1 Lowest - 5 Highest) NA Fair Value NA Risk HIGH Earn/Div Rank NR
Technical Evaluation: BULLISH since 02/97 Rel. Strength Rank (1 Lowest - 99 Highest) 21 Insider Activity NA

Business Profile 21-MAY-97

Following a large loss in 1994, Meridian Data refocused its efforts on the software side of its business, as the growing CD-ROM networking market led to increased competition among hardware vendors. Through its transition from hardware to software, the company improved gross margins substantially, resulting in rising earnings in 1995 and 1996. However, sales in recent periods have been disappointing, as the company's heavy marketing emphasis on software led to customer doubts about the company's dedication to its system business. Meridian is now attempting to grow total revenues from sales of integrated systems by refocusing its marketing efforts again away from software toward a system focus based on one-stop shopping for CD-ROM networking needs.

Operation Review 21-MAY-97

Revenues in the first quarter of 1997 fell 57%, year to year, as marketing efforts were redirected toward the company's systems business, and aggressive price reductions were implemented. Gross margins narrowed on the lower volume and prices. Operating expenses, which included $0.8 million for an advance made to a research and development company, were up significantly, and a net loss of $3,299,000 ($0.34 a share, on 10% more shares) contrasted with income of $1,013,000 ($0.12).

Stock Performance 18-JUL-97n

In the past 30 trading days, MDCD's shares were unchanged, compared to a 7% rise in the S&P 500. Average trading volume for the past five days was 145,160 shares, compared with the 40-day moving average of 96,939 shares.

Key Stock Statistics

Fiscal Year Ending Dec. 31

Dividend Data: No cash dividends have been paid. The company intends to retain earnings for use in the development of its business and does not expect to pay cash dividends in the foreseeable future.

Business Summary 21-MAY-97

Meridian Data (formerly Parallan Computer, Inc.) provides compact disc-read only memory (CD-ROM) networking software and systems that enable multiple users on a network to simultaneously share CD-ROM titles from their desktops.

The goal of the company is to be the leading provider of one-stop shopping for CD-ROM networking systems and software. Meridian's CD-ROM software and systems provide cost effective solutions for organizations that implement CD-ROM technology by eliminating the need to physically share discs or purchase multiple copies of often expensive CD-ROM titles. The company provides scalable solutions to address a variety of customer needs ranging from workgroup to enterprise-wide applications of CD-ROMs. The company's software supports a broad range of networking environments, including Novell, Windows NT and Banyan VINES, and desktop operating systems, including Windows, DOS, Macintosh and OS/2, and is compatible with most major connectivity methodologies and network protocols.

To meet customer demands for integrated solutions, Meridian offers systems containing networking software and CD-ROM servers configured by the company with third-party components. The company believes that because the market for networked CD-ROMs is at an early stage, many customers will continue to prefer integrated systems because of the lack of commercially available CD-ROM servers. As industry standard CD-ROM servers become available, Meridian believes that customers will increasingly purchase separate CD-ROM networking software to run on these servers. As a result, the company focuses substantially all of its research and development efforts on software and has recently introduced a variety of software products for CD-ROM networking to meet anticipated market demand.

As part of its business strategy, Meridian is pursuing intranet and Internet opportunities. The company believes that CD-ROM and Internet/intranet technologies represent complementary opportunities for the development of new markets, and that organizations will want to access CD-ROMs as part of their intranets. In 1996, Meridian introduced new systems and software to extend functionality of web servers to manage and meter CD-ROM data, and make information on CD-ROMs accessible in standard HTML format to web browsers such as Netscape Navigator and Microsoft Internet Explorer.

Capitalization

Long Term Debt: None (3/97).
Options: To purchase 1,333,951 shs. at $0.025 to $15.13 ea. (12/96).

Curr. Ratio	10.9	3.4	1.4	10.0	1.1	0.4	NA	NA	NA	NA
% LT Debt of Cap.	Nil	Nil	Nil	Nil	5.2	NM	17.1	11.1	NA	NA
% Net Inc.of Revs.	16.3	9.9	NM	22.7	NM	NM	NM	NM	NA	NA
% Ret. on Assets	12.7	8.0	NM	13.1	NM	NM	NM	NM	NA	NA
% Ret. on Equity	14.8	8.0	NM	NM	NM	NM	NM	NM	NA	NA

Data as orig. reptd.; bef. results of disc. opers. and/or spec. items. Per share data adj. for stk. divs. as of ex-div. date. E-Estimated. NA-Not Available. NM-Not Meaningful. NR-Not Ranked.

Office--5615 Scotts Valley Dr., Scotts Valley, CA 95066. Tel--(408) 438-3100. Website--http://www.meridian-data.com Chrmn--C. Bass. Pres & CEO--G. U. Rattazzi. SVP-Fin, CFO & Investor Contact--Erik E. Miller. Secy--M. M. Rosati. Dirs--C. Bass, P. R. Johnson, G. U. Rattazzi, M. Rosati, P. Zappacosta. Transfer Agent & Registrar--Boston EquiServe. Incorporated--in California in 1988. Empl-- 94. S&P Analyst: Adam Penn

This report is for information purposes and should not be considered a solicitation to buy or sell any security. Neither S&P nor any other party guarantee its accuracy or make warranties regarding results from its usage. Redistribution is prohibited without written permission. Copyright © 1997