Security First Network Bank, Inc.
(www.sfnb.com)
Ticker: SFNB 300 Virginia Avenue
Exchange: NASDAQ-National Market Pineville, Kentucky 40977
Industry: Financial (606) 337-7011

Type of Shares:Common Shares Filing Date:5/3/96
U.S. Shares:2,440,000 Offer Date:5/23/96
Non-U.S. Shares:0 Filing Range:$15.00 - $17.00
Primary Shares:2,440,000 Offer Price:$20.00
Secondary Shares:0 Gross Spread:$0.80
Offering Amount: $39,040,000 Selling:$0.16
Expenses:$645,000 Reallowance:
Shares Out After:7,726,792
Spin out parent firm: Cardinal Bancshares, Inc.

ManagerTierPhone
Friedman, Billings, Ramsey & Co., Inc.Lead Manager (703) 312-9500

Auditor: KPMG Peat Marwick
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 3/31/96 3/31/95 3/31/96
Revenue:$2.03$0.24$0.76Assets:$44.59
Net Income:-$1.48-$0.68$0.06Liabilities:$41.84
EPS:-$0.16-$0.07$0.01Equity:$2.75

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

Business Description
The company is a federal savings bank and is the first FDIC-insured financial institution to execute traditional banking services over the Internet. In the Spin-Off, SFNB is acquiring Five Paces, a provider of Internet financial services delivery systems. Additionally, SFNB has entered into an agreement to acquire SecureWare, Inc. as promptly as possible following the Offering, subject to various conditions. SecureWare, an affiliate of Five Paces, is a provider of computer network security solutions. Five Paces is the software company that developed the "Virtual Bank Manager" software used by SGNB to offer its Internet banking services. Virtual Bank Manager is the first product in the "Virtual Financial Manager" suite of software products which operate on the "Secure Web Platform" originally developed by SecureWare for the U.S. Department of Defense. Virtual Financing manager is being designed to allow consumers remote access to all aspects of their balance sheet via the Internet or a dial-up connection to their financial institution.

Use of Proceeds
Proceeds from the offering will be used for general corporate purposes, including working capital. Initially, approximately $5 million will be invested in Five Paces for further development, marketing and support of the Virtual Financial Manager suite.

Last updated: 10/28/96

©1996 IPO Data Systems, Inc. - All rights reserved.