Inside Wall Street

THE GLOW OF HEALTH IVI

Shares of little-known IVI Publishing (IVIP) have been perky of late. Trading

at 4 1/2 in May, they are now at nearly 10. What's going on?

IVI, which puts out health and medical information in interactive

multimedia formats, has caught the eye of AT&T. Soon, the phone giant will

unveil an online consumer service in Boston. And IVI will be the major

supplier of medical info for this venture. AT&T has an option to buy 20% of

IVI.

IVI is the leading source of health and fitness materials on CD-ROM, with

more than a dozen titles: Its Mayo Clinic Family Health Book, now in its

second edition, has been a big seller. The company has digital-publishing

licensing agreements with Mayo, New England Journal of Medicine, and

Time-Life Books.

AT&T's online service is expected to produce a revenue stream for years

for IVI. Analysts expect IVI revenues to double, to $20 million, in

1996--with the bulk of the funds coming from CD-ROM sales--and to double

again in 1997. IVI plans to furnish online content to outfits such as HMOs

for a monthly fee. IVI will also design and produce information--in such

formats as video, animation, and illustration--for American Health Network, a

cable channel set to premiere in March.

IVI should turn a profit for the first time in the the first quarter of

1996, largely from CD-ROMs, says one money manager.BY GENE G. MARCIAL