UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 3
INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES
1. Name and Address of Reporting Person
Benbow, Robert
One Post Office Square, Suite 3800
Boston, MA 02109
USA
2. Date of Event Requiring Statement (Month/Day/Year)
3/17/98
3. IRS or Social Security Number of Reporting Person (Voluntary)
4. Issuer Name and Ticker or Trading Symbol
Preferred Networks, Inc.
PFNT
5. Relationship of Reporting Person(s) to Issuer (Check all applicable)
(X) Director ( ) 10% Owner ( ) Officer (give title below) ( ) Other
(specify below)
6. If Amendment, Date of Original (Month/Day/Year)
7. Individual or Joint/Group Filing (Check Applicable Line)
(X) Form filed by One Reporting Person
( ) Form filed by More than One Reporting Person
<TABLE>
<CAPTION>
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Table I -- Non-Derivative Securities Beneficially Owned |
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1. Title of Security |2. Amount of |3. Ownership |4. Nature of Indirect |
| Securities | Form: | Beneficial Ownership |
| Beneficially | Direct(D) or | |
| Owned | Indirect(I) | |
___________________________________________________________________________________________________________________________________|
<S> <C> <C> <C>
Common Stock, no par value per share |12,500 |I |(1) |
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<CAPTION>
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Table II -- Derivative Securitites Beneficially Owned |
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1.Title of Derivative |2.Date Exer- |3.Title and Amount | |4. Conver-|5. Owner- |6. Nature of Indirect |
Security | cisable and | of Underlying | |sion or |ship | Beneficial Ownership |
| Expiration | Securities | |exercise |Form of | |
| Date(Month/ |-----------------------|---------|price of |Deriv- | |
| Day/Year) | |Amount |deri- |ative | |
| Date | Expira- | |or |vative |Security: | |
| Exer- | tion | Title |Number of|Security |Direct(D) or | |
| cisable | Date | |Shares | |Indirect(I) | |
___________________________________________________________________________________________________________________________________|
<S> <C> <C> <C> <C> <C> <C> <C>
___________________________________________________________________________________________________________________________________|
</TABLE>
Explanation of Responses:
(1) Represents the award of unvested and restricted shares of the issuer's
common stock (the "Shares") which
are subject to certain vesting restrictions and were issued to the reporting
person in connection with his services
to the issuer as a director. Such Shares are held by the reporting person on
behalf of Alta Communications VI,
L.P. ("Alta"), which may be deemed to be the beneficial owner of the reported
Shares. By virtue of the foregoing
relationships, the reporting person may be deemed to have an indirect pecuniary
interest in the Shares to the
extent of his proportionate interest in Alta; however, the reporting person
disclaims beneficial ownership of the
Shares (except to the extent of his pecuniary interest in
Alta).
SIGNATURE OF REPORTING PERSON
Robert Benbow
DATE
March 27, 1998
