Preferred Networks, Inc.
Ticker: PFNT 5300 Oakbrook Parkway, Suite 320
Exchange: NASDAQ-National Market Norcross, Georgia 30093
Industry: Service (770) 806-6970

Type of Shares:Common Shares Filing Date:12/18/95
U.S. Shares:3,300,000 Offer Date:2/26/96
Non-U.S. Shares:0 Filing Range:$14.00 - $16.00
Primary Shares:3,300,000 Offer Price:$10.00
Secondary Shares:0 Gross Spread:$0.70
Offering Amount: $49,500,000 Selling:$0.40
Expenses:$600,000 Reallowance:$0.10
Shares Out After:14,268,776

ManagerTierPhone
PaineWebber IncorporatedLead Manager (212) 713-2626
Legg Mason Wood Walker, Inc.Co-manager (410) 539-3400

Auditor: Price Waterhouse
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 12/31/95
Revenue:$7.35Assets:$20.05
Net Income:-$2.87Liabilities:$27.85
EPS:-$0.72Equity:-$7.81

Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year,
unaudited figures are partial year

Business Description
The company believes that it is the largest carrier's carrier of exclusively wholesale one-way paging network services in the United States. The company's customers purchase and resell the company's network services to their subscribers. As a carrier's carrier, the company does not market paging services directly to end users and therefore does not compete with its customers for their subscribers. The company's carrier strategy is complemented by its efficient, centralized network architecture and its use of a low cost, high power paging frequency, for which it is licensed, or has licenses pending, in the 50 largest U.S. metropolitan markets and adjacent areas. The company provides high quality network services by utilizing regional Technical Control Centers that enable it to centrally control paging networks in multiple local markets within a wide geographic region.

Use of Proceeds
The proceeds from the offering will be used to finance expansion of the company's network facilities, repay debt, working capital and other general corporate purposes.

Last updated: 10/28/96

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