Madison River Communications

Madison River Communications was formed to acquire and then integrate and improve the operations of rural, local telephone companies. Since 1998, we've acquired five rural telephone companies, and we believe our disciplined approach to operations has improved each of them.

Today, Madison River - headquartered in Mebane, North Carolina - operates telephone companies in Alabama, Georgia, North Carolina, and Illinois, and is the nation's 19th largest telephone company. Our telephone companies operate as incumbent local exchange carriers and are leading providers of voice and data services to homes and businesses in the communities we serve. The companies offer local and long distance voice calling services, high-speed broadband Internet, dial-up Internet, telephone directories, and other communications and entertainment services.

At the close of the second quarter of 2006, we had 238,675 connections in service: 186,595 voice access lines and 52,080 Broadband and high-speed data connections. Our RLEC residential broadband penetration now exceeds 42%.

Our strengths

• Local companies with long, strong reputations for outstanding service. Our local telephone companies have been serving their communities for 50 years or longer. We know our customers well; they are our friends and neighbors, real people who really matter to us. We have limited competition and the advantage of being recognized as the trusted, reliable provider.
• Proven record of service growth. We have succeeded in consistently growing the number of services our customers buy from us month after month. The reason is quite simple: we listen to our customers and provide what they want. Our most popular offerings are simple, convenient, ever-evolving packages of local telephone service, long distance, Internet, and enhanced call management services such as voice mail, caller ID and call waiting. We also offer satellite TV service, rounding out the full bundle of communications and entertainment services we provide households.
• Technologically-advanced and scalable network. We have substantially completed our investment in a technologically-advanced network capable of delivering a full suite of telecommunications services to our residential and business customers. We can continue introducing innovative technology because our superior network is designed for today's services and tomorrow's advances.
• Disciplined approach to operations. We bring a disciplined approach to operations. We use a strict budgeting process, and we provide our employees with incentives to meet operating targets and improve cash flows.
• Successful track record of acquisitions and integration. Since the company formed, we have acquired five rural telephone companies. We've successfully integrated them into our organization and have improved their operations.
• Experienced and proven management team. Our top five officers average over 30 years in telecommunications, network engineering and operations, customer care, sales and marketing, project development, regulatory management and finance, giving us the experience to lead the new acquisitions to greater efficiency.
• Diverse markets. We operate primarily in four states, limiting our exposure to regulatory or operating risk in any one state.

Our strategy

At Madison River, we intend to strengthen our position as a leading provider of telecommunications services in target markets in the Southeast and Midwest. We plan to do that by continuing to

• Improve the operating efficiencies of the companies we acquire. We'll continue to provide centrally-managed resources and to share best practices across all our companies.
• Take a disciplined approach to capital expenditures.
• Improve our competitive position by enhancing our services, adding new services, and packaging them in appealing ways.
• Enhance our market position by earning intense customer loyalty. We'll continue to know, understand and exceed on our customers' expectations for superior service.
• Growing through selective acquisitions.