Commonwealth Telephone Enterprises (CTCO) Inactive

We are a telecommunications company providing telephony and related services in Pennsylvania markets as a rural incumbent local exchange carrier, or RLEC. We also operate as a competitive local exchange carrier, or CLEC, in three regional Pennsylvania markets that border CT’s markets, which we refer to as our RLEC “edge-out” markets. CT is the nation’s seventh largest non-Bell incumbent local exchange carrier, serving over 309,200 switched access lines as of December 31, 2006. CTSI served over 142,600 competitive switched access lines as of December 31, 2006. For the years ended December 31, 2006 and 2005, we had consolidated revenues of $330.6 million and $333.9 million, respectively. CT, founded in 1897, operates in a rural, approximately 5,000-square-mile territory with a population of approximately 450,000 people, and a line density of approximately 62 access lines per square mile. Approximately three quarters of CT’s switched access lines serve residential customers. CT generated revenues of $228.9 million and $228.5 million, and operating income of $122.1 million and $111.9 million for the years ended December 31, 2006 and 2005, respectively. CT ranks among the industry leaders in penetration of residential additional lines. CT’s penetration of residential additional lines was 30% at December 31, 2006. Our residential additional line penetration rate is decreasing, partially as a result of our digital subscriber line (“DSL”) success. We continue to counter residential additional line erosion with bundled service offerings, some of which include an additional line as part of the bundle.