ATLANTA, Nov. 14 /PRNewswire/ -- Preferred Networks, Inc. (Nasdaq: PFNT)
(PNI), today announced results for the third quarter and nine months ended
September 30,1996.
    Total revenues for the third quarter increased 56% to $3.1 million from
$2.0 million for the third quarter of 1995.  EBITDA (earnings before interest,
taxes, depreciation and amortization), a standard measure of operating cash
flow, was negative $2.2 million for the quarter compared with negative
$622,000 for the prior-year period.  There was a net loss for the quarter of
$2.5 million compared with a loss of $676,000 for the third quarter of 1995.
The historical net loss per share for the quarter was $0.17 per share compared
with a loss of $0.13 per share for the prior-year period.
    For the nine months, total revenues increased 60% to $8.0 million from
$5.0 million for the first nine months of 1996.  There was an EBITDA loss for
the nine months of $4.8 million compared with a loss of $1.2 million for the
prior-year period.  The net loss for the nine months was $5.5 million compared
with a loss of $1.7 million for the prior year period.  The historical net
loss per share was $0.46 for the nine months compared with a loss of $0.25 for
the first nine months of 1995.
    Commenting on the results, Chairman and Chief Executive Officer Mark
Dunaway said, "Our performance this quarter reflects strong internal growth as
well as the contribution of recent acquisitions.  The third quarter was an
eventful one as we continued to expand our network footprint through the
addition of a fourth Technical Control Center and construction of networks in
26 new markets.  Since July 1, we have announced or completed four strategic
acquisitions which will allow us to expand our services to the wireless
industry.  The growth in revenues reflects growth in excess of 100% in units
over the third quarter of 1995, and the initial contribution of the
engineering services business we acquired in July."

    Recent significant events include:
    -- The acquisition in July of an engineering services business, now known
as Preferred Technical Services, which broadens PNI's outsource services
available to the wireless industry to include repair, maintenance, and
installation services and equipment sales to paging carriers.
    -- The acquisition of Big Apple Paging in September, expanding PNI's
presence in New York, New Jersey, and Connecticut.
    -- The announcement of an agreement to acquire Mercury Paging &
Communications, a reseller with subscribers in the New Jersey, New York, and
Southern Connecticut markets.
    -- The announcement of an agreement to acquire EPS Wireless, a national
provider of paging and cellular product repair services.  EPS also offers
product sourcing and sales for new and refurbished paging products, inventory
management, and product fulfillment.
    "Our primary focus is providing wholesale one-way paging, and as a
carrier's carrier we are expanding our platform to offer complimentary
services to the wireless industry," Dunaway said.  "We are continuing with our
efforts in acquisitions and, at the same time, we are aggressively building
our 157 MHz network nationwide."
    PNI is an outsourcing services provider, primarily offering wholesale one-
way paging networks, and also engineering/technical services, and wireless
equipment repairs, sales, and fulfillment.  The company has four of its
planned ten Technical Control Centers (TCCs) in operation, serving 18 markets
and 249,311 units in service on its networks.  Network construction is
underway in 26 new markets as a part of the company's plans to build its
157.740 MHz network nationwide.


                       PREFERRED NETWORKS, INC.
                        FINANCIAL HIGHLIGHTS
                            (UNAUDITED)
            (dollars in thousands, except per share data)

                                Three Months Ended       Nine Months Ended
                                      Sept. 30,                Sept. 30,
                                  1996       1995          1996        1995
       Revenues
    Pager air time           $     1,554  $     984   $     4,298  $    2,376
    Pager sales                    1,239      1,005         3,325       2,528
    Maintenance and other            343         24           376          93
    Total revenue                  3,136      2,013         7,999       4,997
       Cost of revenues
    Pager air time                 1,210        498         2,898       1,152
    Pager sales                    1,652      1,310         4,320       3,195
    Other                            119        ---           119         ---
    Total                            155        205           662         650
    Selling general and admin.     2,322        827         5,462       1,855
    Depreciation and amortization    636        196         1,399         489
    Operating loss                (2,803)      (818)       (6,199)     (1,694)
    Interest expense                  39         76           194         232
    Interest income                  334        218           907         221
    Net loss                 $    (2,508) $    (676)  $    (5,486) $   (1,705)
    Historical net loss per
     share of common stock   $      (.17) $    (.13)  $      (.46) $     (.25)
    Weighted average common
     shares outstanding used
     in calculating historical
     net loss per share       14,479,226  9,158,409    13,251,775   9,158,409
    EBITDA*                  $    (2,167) $    (622)  $    (4,800) $   (1,205)

    *Earnings before interest, taxes, depreciation and amortization.


                            STATISTICAL HIGHLIGHTS

                                       Sept. 30, 1996     Sept. 30, 1995
      Technical Control Centers:
    In operation                              4                   2
    Under construction                        4                 ---

      Markets:
    In service                               18                  12
    Under construction                       26                   8

      Units in service:
    Reseller units                      194,398             115,158

    Co-location/interconnection units    54,913              17,835
      Total units in service            249,311             132,993
    Under agency agreement               63,959                 ---
      Total                             313,270             132,993
    Average revenue per unit              $2.55               $3.02

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