Preferred Networks To Acquire Mercury Paging

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Preferred Networks To Acquire Mercury Paging
    ATLANTA, Sept. 30 /PRNewswire/ -- Preferred Networks, Inc. (Nasdaq: PFNT)
(PNI), one of the largest carrier's carriers of exclusively wholesale one-way
paging network services, today announced the signing of a definitive agreement
to acquire Mercury Paging & Communications, Inc. and its affiliated companies,
a New York-based paging operator that provides coverage throughout New Jersey,
New York, and Southern Connecticut on exclusive radio common carrier 931.3125
MHz paging licenses.  Mercury Paging has more than 60,000 units in service,
primarily through reseller distribution.  Under the terms of the agreement,
PNI will pay approximately $14 million for Mercury in a combination of
approximately $10 million in cash and the balance in PNI common stock, subject
to various adjustments based on Mercury's achievement of targeted operating
performance.  The acquisition is subject to various conditions, including FCC
approval which is expected within 120 days.
    Commenting on the acquisition, PNI Chairman and Chief Executive Officer
Mark Dunaway said, "Mercury has developed excellent coverage throughout its
territory and has experienced significant growth since its founding in April
1995.  With the combination of Big Apple Paging, Mercury enhances our strong
network position and reseller distribution in the Northeast.  In addition,
Mercury's exclusive licenses on the 931.3125 frequency provide us additional
depth and network coverage."
    PNI is a wholesale provider of high-quality, reliable one-way paging
network services in the U.S.  At June 30, 1996, the Company had more than
200,000 units active on its networks or under agency agreement in its 16
operational markets.  As a carrier's carriers PNI markets its networks to
resellers of paging services and to paging carriers.  PNI's strategy is
complemented by its centralized network architecture and use of a low-cost,
high-power paging frequency for which it is licensed nationwide.  Network
construction is underway in 18 new markets as part of PNI's expansion
strategy, 14 of which are among the top 50 U.S. metropolitan markets.
SOURCE Preferred Networks, Inc.