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Pilot Network Services, Inc.
1080 Marina Village Parkway, Alameda, CA 94501 * (510) 433-7800

The company is a leading provider of comprehensive security services that incoprorate high-bandwidth connectivity and enable secure electronic commerce over the Internet.

Primary Underwriting Group
ManagerTierPhone
CS First BostonLead Manager (212) 325-2000
BancAmerica Robertson StephensCo-manager (415) 989-8500
Hambrecht & Quist IncorporatedCo-manager (415) 439-3626

Offering Information
NASNTL:PILT Internet: SIC 7379
Type of Shares:Common Shares Filing Date:6/22/98
U.S. Shares:3,250,000 Offer Date:8/11/98
Non-U.S. Shares:0 Filing Range:$13.00 - $15.00
Primary Shares:3,110,000 Offer Price:$14.00
Secondary Shares:140,000 Gross Spread:
Offering Amount: $45,500,000 Selling:
Expenses:$1,000,000 Reallowance:
Post-IPO Shares:13,745,686
Employees:102

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Venture Law Group
Bank's Law Firm: Gunderson Dettmer Stough Villeneuve Franklin
Registrar/Transfer Agent: U. S. Stock Transfer Corporation
Auditor: KPMG Peat Marwick

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
3 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Audited
Income
Balance
Sheet
3/31/98 3/31/98
Revenue:$11.32Assets:$8.92
Net Income:-$6.70Curr Assets:$2.79
EPS:Liabilities:$21.34
Prior EPS:Curr Liab:$5.75
Cash Flow/Oper:-$1.92Equity:-$12.41
Cash Flow/Fin:$1.75Cash:$1.45
Cash Flow/Inv:-$1.47Working Cap:-$2.96

Use of Proceeds
The proceeds from the proposed offering will be used for general corporate purposes including working capital, capital expenditures and repayment of certain indebtedness.

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