Transaction Highlights
Expands Consolidated’s footprint
North Pittsburgh provides:
An integrated telecommunications business providing ILEC, edge-out CLEC and Internet
services
An extensive fiber network that extends into Pittsburgh and surrounding communities
As of March 31, 2007, it served 61,500 ILEC access lines, 66,300 CLEC access line
equivalents and 16,300 DSL subscribers
After completion of this transaction Consolidated will be the 12th largest telephone company in the
United States
Provides an advanced network
99% DSL capable today, at speeds up to 10 megabits per second
Enables rollout IPTV in 2008
Opportunity to grow the product suite, increase penetration and improve customer
retention
Improves the dividend payout ratio
Integration of North Pittsburgh onto Consolidated’s operating platform will improve operating
efficiencies and drive annual cash synergies
Strong cash flow from wireless partnerships
Cash flow accretive in first full year of operations (post synergies)
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North Pittsburgh Current Operations
North Pittsburgh Systems, Inc.
LTM Revenue ………………………….. $101.2M
LTM Adjusted EBITDA ………………... $44.8M
ILEC access lines ………… ……………61,500
CLEC access line equivalents ……… .. 66,300
DSL subscribers ………………...………16,260
Employees ……………………………… 300
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CNSL Acquisition Criteria
Attractiveness of the markets
High growth, affluent markets
Edge-out CLEC provides synergy with ILEC
Quality of the network
Well maintained plant
Short loops enable higher broadband speeds and efficient video
overlay
Ability to integrate efficiently
Leverage existing, proven systems and processes
Potential for operating synergies
$7-11 million annually in estimated Op Ex savings
$3-6 million annually in estimated Cap Ex savings
Cash flow accretive
Improves dividend payout ratio
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Consolidated’s Strategy for North Pittsburgh Market
Grow Revenue
Launch IPTV
Aggressively market broadband products and the triple play bundle
Retain customers
Leverage North Pittsburgh’s new pricing/bundling strategy
Create “stickiness” with existing products and leverage the triple play offer
Build on North Pittsburgh’s initiatives by implementing the best customer care and
community involvement practices from both companies
Improve operating efficiency
Move to centralized organization structure
Integrate the properties utilizing Consolidated’s proven processes
Achieve synergies
Leverage economies of scale
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Synergies
Consolidation
One Functional Organization Across Three Markets
Leverage Consolidated’s operating capabilities
Leveraging Scale
Software licenses
Maintenance contracts
Purchasing contracts
Reduce third party costs
Legal fees
Audit and SOX fees
Outsourced billing and financial system costs
Public company fees
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Transaction Summary
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Next Steps
North Pittsburgh shareholder approval
Regulatory approvals
FCC
PA state commission
Hart-Scott-Rodino
Expect to complete transaction in Q4 2007 or Q1 2008
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Summary
Expands the footprint with high growth, affluent markets similar
to existing Texas markets
Provides an advanced network that can be leveraged to rollout
new broadband products, such as IPTV
Provides the opportunity to increase product penetration and
improve customer retention
Improves Consolidated’s financial profile and meets our stated
acquisition criteria
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