Matritech Inc. announced Friday that it has initiated a secondpublic offering of its stock, which is traded on the NASDAQsmall-cap market as NMPS.

The Cambridge, Mass., company is offering 2.5 million shares ofcommon stock at $1.50 per share. Thomas James Associates Inc.is the managing underwriter.

Matritech, which was formed in 1987 and raised $5 million inits initial public offering in July 1992, intends to use theproceeds of this latest public offering to develop and test itsdiagnostic products as well as to investigate the therapeuticapplications of its core technology.

That technology employs nuclear matrix proteins to developinnovative cancer diagnostics. In particular, the company isdeveloping serum assays to monitor and detect the recurrenceof breast, colorectal and lung cancers; a urine assay for bladdercancer (clinical trials of which are soon to begin); and adiagnostic product to identify pre-cancerous and cancerouscells in cervical Pap smears.

The stock closed Friday at $1.44, down by 44 cents.

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