<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED BALANCE SHEET AND STATEMENT OF OPERATIONS OF PREFERRED
NETWORKS INC., AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2000.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> JUN-30-2000
<CASH> 3,802,999
<SECURITIES> 0
<RECEIVABLES> 2,210,602
<ALLOWANCES> (414,959)
<INVENTORY> 945,890
<CURRENT-ASSETS> 6,641,369
<PP&E> 28,011,326
<DEPRECIATION> (14,927,541)
<TOTAL-ASSETS> 34,294,377
<CURRENT-LIABILITIES> 6,338,784
<BONDS> 1,894,367
29,186,588
0
<COMMON> 55,760,250
<OTHER-SE> (58,885,612)
<TOTAL-LIABILITY-AND-EQUITY> 0
<SALES> 258,900
<TOTAL-REVENUES> 7,622,262
<CGS> 209,528
<TOTAL-COSTS> 5,413,173
<OTHER-EXPENSES> 5,779,606
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 325,506
<INCOME-PRETAX> (3,794,895)
<INCOME-TAX> 0
<INCOME-CONTINUING> (3,794,895)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3,794,895)
<EPS-BASIC> (.34)
<EPS-DILUTED> (.34)
</TABLE>