Madison River Communications

MEBANE, NC -- April 10, 2000 -- Madison River Communications today announced its 1999 financial results. On a pro forma basis, the Company reported revenues of $166.8 million, which reflects an increase of 12.8% from 1998 pro forma revenues of $147.8 million. Access lines grew 7.3%, from approximately 177,000 to approximately 190,000 during the year. Of the 190,000 total access lines, approximately 136,000 are residential lines and 54,000 are business lines. The increase can be attributed to the expansion of its base of services in its established markets and acquisitions.

For the year, the Company reported pro forma EBITDA (earnings before interest expense, depreciation, amortization and income taxes) of $60.8 million as compared to $48.4 million in 1998, an increase of 25.6%. The increase is a result of a combination of factors. Better than anticipated revenue growth and the Company's ability to manage its cost structure led to the higher than expected EBITDA results.

Commenting on the Company's successful year, J. Stephen Vanderwoude, Chairman and Chief Executive Officer, said, "1999 was a rewarding year for our company, a year in which we exceeded our expectations for both revenues and EBITDA growth. In addition, our management team was very successful in continuing to develop the infrastructure needed to execute our business strategy and achieve our growth objectives going forward. The acquisitions of Gulf Coast Services in September 1999 and Coastal Utilities in March 2000 were key strategic links in our plans and built on the momentum we had established in 1998."

Full Year 1999 Highlights - As reported from audited financial statements prepared in accordance with generally accepted accounting principles.

Revenues grew to $81.5 million in 1999 from $16.9 million reported in 1998, reflecting an increase of 382.2%. The growth in revenues came primarily from reporting a full year of operating results for Gallatin River Communications, which was acquired in November 1998, and a partial year of operations for Gulf Coast Services, which was acquired in September 1999. In addition, the Company has been successful in growing its existing and acquired businesses in accordance with its business strategy.

EBITDA increased 473.6% to $27.0 million in 1999 from $4.7 million in 1998. This increase is attributed to the growth in revenues over 1998 and management's ability to control expenses and costs through the centralization of many functions in the acquired businesses.

Recent Announcements

On March 30, 2000, the Company completed its acquisition of Coastal, a rural local exchange carrier in Hinesville, Georgia ahead of its anticipated schedule. Paul Sunu, Executive Vice President and Chief Financial Officer commented, "The acquisition was a successful negotiation for both parties. We were able to close the transaction ahead of schedule and obtain the cash flows from this business sooner than expected. An added benefit was our ability to improve our liquidity position through the conversion of certain assets of Coastal to cash."

As of February 2000, Coastal served approximately 41,000 access lines and employed approximately 190 people. The acquisition of Coastal furthers the Company's business strategy to be a leading provider of integrated communication services to customers in the southeast United States and provides a strategic link in the Company's 2,200 route-mile fiber optic network. The network, a state of the art fiber communications backbone capable of reaching over 20 major points of presences in six southeastern states, will allow the Company to deliver high speed broadband applications to customers cost-effectively. The acquisition was financed primarily with borrowings from the Rural Telephone Finance Cooperative.

On February 17, 2000, the Company completed the private placement of a $200 million senior note offering. The proceeds of the offering were used to retire the indebtedness that the Company incurred in the acquisition of Gulf Coast Services, to fund the Coastal Communications acquisition and for ongoing operations. The offering was led by Goldman, Sachs & Co. and was co-managed by Morgan Stanley Dean Witter, Chase Securities, Inc. and Bear, Stearns & Co. Incorporated.

During the first quarter of 2000, the Company completed a strategic reorganization of its internal structure into two operating divisions, the Rural Local Exchange Carrier Division ("LTD") focusing on capitalizing on the strengths of the local telecommunication assets and the Integrated Communications Division ("ICD") devoted to developing and growing its CLEC operations and transport business. The reorganization allows the Company the ability to leverage its experienced management team and focus its resources on its two primary businesses.

The LTD is led by its Chairman and CEO, James D. Ogg, who brings over 40 years of telecommunications experience to his role. The primary focus for the LTD will be to grow the existing markets of the Company's four local exchange carriers. Ogg explains, "We have acquired excellent companies with solid reputations in their service areas. Our goal now is to expand the services available to our existing customers and attract new ones through the delivery of high quality services and by being responsive to our customers needs. Our strategy will center around bundling our products to provide our customers a full range of communications products in these markets."

The ICD is under the direction of its Chairman and CEO, Donald K. Roberton. Roberton has over 39 years of telecommunications experience. The ICD will develop new markets for the Company around its state of the art 2,200 route-mile fiber optic network. Focusing on the southeastern United States, the division will offer high speed broadband services utilizing advanced bandwidth enhancing technologies such as asynchronous transfer mode ("ATM"), digital subscriber line ("DSL") and fiber optic networks. Roberton remarked, "The ICD's goal is to be the preeminent regional provider of integrated communications services. We have assembled an experienced, qualified management team devoted to supporting the development of this division and capitalizing on the potential that exists in the markets we will serve. We anticipate lighting the remaining western portion of our fiber network in the second quarter of 2000 as well as completing our new state of the art network support center located in Dallas."

Selected Financial Results and Operating Data

* Note: The unaudited pro forma results assume that the acquisitions of Gallatin River Communications, consummated in November 1998; Gulf Coast Services, consummated in September 1999; and Coastal Communications, consummated in March 2000, each occurred as of the beginning of 1998. In addition, the pro forma results exclude certain one-time costs related to the acquisitions and non-cash charges for the Company's long term Incentive Plan expenses. Pro forma Member's capital includes $24 million of committed equity yet to be invested; cash at year end is adjusted for Coastal Acquisition and Senior Notes Offering; Long term debt of $476.5 million is with the RTFC at a blended rate of approximately 8% maturing in 2013. The pro forma information is not intended to be indicative of the actual results that would have been achieved had the acquisitions in fact been consummated at the beginning of 1998, nor does it purport to be indicative of the future consolidated operating results of the Company.

Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and the Company intends that such forward-looking statements be subject to the safe harbors created thereby. These forward-looking statements are subject to many uncertainties and factors which may cause the actual results of the Company to be materially different from any future results expressed or implied by such forward-looking statements. Examples of such uncertainties and factors include, but are not limited to the following factors: the significant amount of indebtedness we have incurred could limit our operational flexibility or otherwise affect our financial health, the risk that we may not be able to increase our business and revenues, the development of competitive local operations will negatively impact our cash flow and financial results, our management of the risks relating to the development of our network such as rapidly changing technology and disruptions, our need to raise more capital to expand our business, our dependence on key personnel and the potential adverse impact of state and federal regulatory developments. The Company does not undertake any obligation to publicly update or revise any forward-looking statement made by it or on its behalf, whether as a result of new information, future events or otherwise.

Madison River Capital, LLC operates as Madison River Communications and is a wholly owned subsidiary of Madison River Telephone Company, LLC. Madison River Communications operates and enhances rural telephone companies, and uses advanced technology to provide competitive communications services in nearby markets. Headquartered in Mebane, NC, the company is owned by affiliates of Madison Dearborn Partners Inc., Goldman, Sachs & Co., Providence Equity Partners, and members of management.