NTELOS 8-K Financial statements and exhibits

Exhibit 99.1

CASE NAME: NTELOS Inc. et al. ACCRUAL BASIS

CASE NUMBER: 03-32094-DOT

JUDGE:

UNITED STATES BANKRUPTCY COURT

Eastern District of Virginia

                        DIVISION                         

MONTHLY OPERATING REPORT

MONTH ENDING: June 30, 2003

IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I

DECLARE UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING

MONTHLY OPERATING REPORT (ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-6) AND

THE ACCOMPANYING ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE

DOCUMENTS ARE TRUE, CORRECT AND COMPLETE^[1]. DECLARATION OF THE PREPARER

(OTHER THAN RESPONSIBLE PARTY) IS BASED ON ALL INFORMATION OF WHICH

PREPARER HAS ANY KNOWLEDGE

RESPONSIBLE PARTY:
/s/    MICHAEL B. MONEYMAKER	Executive VP & Chief Financial Officer
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY	TITLE
Michael B. Moneymaker	July 30, 2003
PRINTED NAME OF RESPONSIBLE PARTY	DATE
PREPARER:
ORIGINAL SIGNATURE OF PREPARER	TITLE
PRINTED NAME OF PREPARER	DATE

Chapter 11 Filings

Ntelos Inc., et al

Note that the attached monthly operating report for NTELOS

Inc. and its Subsidiaries is on a consolidated basis. These

Subsidiaries are indicated below along with the corresponding

case numbers.

	Case No.	Debtor
1	03-32115	Botetourt Leasing, Inc.
2	03-32111	NA Communications, Inc.
3	03-32105	NTELOS Cable Inc.
4	03-32099	NTELOS Cable of Virginia Inc.
5	03-32100	NTELOS Communications Services Inc.
6	03-32107	NTELOS Cornerstone Inc.
7	03-32094	NTELOS Inc.
8	03-32104	NTELOS Licenses Inc.
9	03-32101	NTELOS NetAccess Inc.
10	03-32103	NTELOS Network Inc.
11	03-32097	NTELOS of Kentucky Inc.
12	03-32096	NTELOS of Maryland Inc.
13	03-32108	NTELOS PCS Inc.
14	03-32098	NTELOS PCS North Inc.
15	03-32102	NTELOS Telephone Inc.
16	03-32095	NTELOS Wireless Inc.
17	03-32119	R&B Cable, Inc.
18	03-32106	R&B Communications, Inc.
19	03-32114	R&B Network, Inc.
20	03-32093	Richmond 20MHz, LLC
21	03-32112	Roanoke & Botetourt Telephone Company
22	03-32121	The Beeper Company
23	03-32123	Virginia PCS Alliance, L.C.
24	03-32109	Virginia RSA 6 Cellular Limited Partnership
25	03-32131	Virginia Telecommunications Partnership
26	03-32127	West Virginia PCS Alliance, L.C.

NTELOS Inc. (Debtor-in-Possession)

Condensed Consolidated Comparative Balance Sheets¹

(Amounts in thousands)

	March 3, 2003		April 30, 2003		May 31, 2003		June 30, 2003
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	17,215	$	26,487	$	30,024	$	26,421
Accounts receivable		33,275		34,059		32,925		33,489
Inventories and supplies		2,161		1,858		2,050		2,816
Other receivables and deposits		4,928		3,079		3,043		3,861
Prepaid expenses and other		4,446		6,502		5,687		5,277
		62,025		71,985		73,729		71,864
SECURITIES AND INVESTMENTS
Restricted investments		7,829		7,829		7,829		7,829
Other securities and investments		519		533		529		534
		8,348		8,362		8,358		8,363
PROPERTY AND EQUIPMENT
In service		563,009		568,650		560,584		553,729
Under construction		17,201		17,072		15,999		19,188
		580,210		585,722		576,583		572,917
Less: Accumulated depreciation		149,142		156,305		156,959		156,607
		431,068		429,417		419,624		416,310
OTHER ASSETS
Goodwill		86,016		86,016		86,016		86,016
Other intangible assets		1,810		1,775		1,432		1,415
Radio spectrum licenses in service		107,234		107,234		107,234		107,234
Other radio spectrum licenses		2,485		2,398		2,354		2,310
Radio spectrum licenses not in service		7,112		7,107		7,107		7,107
Deferred charges		18,925		4,816		4,782		4,815
Deferred income taxes		7,772		7,485		7,485		7,370
Other Assets		231,354		216,831		216,410		216,267
TOTAL ASSETS	$	732,795	$	726,595	$	718,121	$	712,804

⁽¹⁾ The Debtor’s ongoing balance sheet review and reconciliation procedures may reveal additional required balance sheet reclassifications.

NTELOS Inc. (Debtor-In-Possession)

Condensed Consolidated Comparative Balance Sheets¹

(Amounts in thousands)

	March 3, 2003			April 30, 2003			May 31, 2003			June 30, 2003
LIABILITIES AND SHAREHOLDERS’ DEFICIT
CURRENT LIABILITIES
Liabilities Not Subject to Compromise
Long-term debt in default and scheduled maturities	$	—		$	2,371		$	2,371		$	2,371
Accounts payable		—			10,215			11,029			10,055
Advance payments		—			9,460			9,860			10,245
Customer deposits		—			2,111			2,075			2,057
Accrued payroll		—			2,430			3,241			3,305
Accrued interest		—			1,651			1,647			1,587
Deferred revenue		—			1,153			1,157			1,146
Current income tax payable		—			216			391			115
Other accrued liabilities		—			3,520			4,781			5,865
Total Liabilities Not Subject to Compromise		—			33,127			36,552			36,746
Liabilities Subject to Compromise		1,078,175			720,725			712,708			711,907
		1,078,175			753,852			749,260			748,653
LONG-TERM LIABILITIES
Long-Term Liabilities Not Subject to Compromise
Long-term Debt		11,958			11,958			11,958			11,790
Other Long-Term Liabilities
Retirement benefits		—			660			269			602
Long-term deferred liabilities		—			21,339			21,367			21,214
		11,958			33,957			33,594			33,606
Long-Term Liabilities Subject to Compromise		—			40,769			40,731			41,272
		11,958			74,726			74,325			74,878
MINORITY INTERESTS		523			503			503			508
Redeemable Convertible Preferred Stock Subject to Compromise		—			298,246			298,246			298,246
SHAREHOLDERS’ DEFICIT
Common Stock		182,380			182,380			182,380			182,380
Stock warrants		22,874			22,874			22,874			22,874
Accumulated deficit		(547,749	)		(591,072	)		(594,553	)		(600,001	)
Accumulated other comprehensive loss		(15,366	)		(14,914	)		(14,914	)		(14,734	)
		(357,861	)		(400,732	)		(404,213	)		(409,481	)
TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT	$	732,795		$	726,595		$	718,121		$	712,804

⁽¹⁾ The Debtor's ongoing balance sheet review and reconciliation procedures may reveal additional required balance sheet reclassifications.

NTELOS Inc. (Debtor-In-Possession)

Income Statement

2003

	April Actual			May Actual			June Actual			Quarter Ended June 30, 2003
OPERATING REVENUE
Wireline Communications	$	8,465,385		$	8,553,274		$	8,434,942		$	25,453,601
Wireless Communications		16,511,389			16,310,521			16,271,146			49,093,056
Other Communication Services		529,474			422,989			410,414			1,362,877
TOTAL OPERATING REVENUES		25,506,248			25,286,784			25,116,502			75,909,534	*
OPERATING EXPENSES
Cost of sales		3,769,040			3,990,444			3,526,293			11,285,777
Access		1,841,867			1,857,919			1,644,990			5,344,776
Advertising, marketing and external relations		767,338			841,191			933,215			2,541,744
Retention		586,691			729,679			766,970			2,083,340
Cell site		1,324,219			1,347,816			1,306,157			3,978,192
Contracted services		218,919			223,504			255,003			697,426
Directory		73,952			74,974			72,553			221,479
Intercompany eliminations		(523,926	)		(523,926	)		(523,926	)		(1,571,778	)*
Materials & supplies		450,370			26,482			260,443			737,295
Operating taxes		494,481			487,039			481,916			1,463,436
Postage & freight		142,312			176,804			138,486			457,602
Professional fees		236,881			282,365			174,556			693,802
Rent		480,870			553,918			455,230			1,490,018
Repairs & maintenance		104,736			353,065			370,925			828,726
Roamer administration		137,298			119,741			108,579			365,618
Salaries, wages & benefits
Salaries & wages		3,712,369			3,706,489			3,810,584			11,229,442
Capitalized labor		(471,652	)		(544,664	)		(536,439	)		(1,552,755	)
Benefits		1,146,955			1,138,543			918,641			3,204,139
MIP		604,694			361,766			605,020			1,571,480
Sal & wages—I/C svcs		(129	)		(229	)		(638	)		(996	)
Selling expenses		1,292,933			1,138,675			1,315,826			3,747,434
Telephone—wireline & wireless		242,913			207,710			218,767			669,390
Recruiting, training and T&E		122,394			57,538			106,411			286,343
Utilities		124,820			86,213			166,070			377,103
Vehicle		72,782			29,299			63,818			165,899
Corporate and other		1,013,963			995,212			1,050,937			3,060,112
TOTAL OPERATING EXPENSES		17,967,090			17,717,567			17,690,387			53,375,044
EBITDA Before Allocations		7,539,158			7,569,217			7,426,115			22,534,490
Total Allocations		(42,844	)		(24,056	)		(23,889	)		(90,789	)
EBITDA Before Restructuring Charges		7,582,002			7,593,273			7,450,004			22,625,279
Operational and capital restructuring charges		—			—			—			—
EBITDA		7,582,002			7,593,273			7,450,004			22,625,279
OTHER INCOME/(EXPENSE)
Depreciation & amortization		(5,650,135	)		(7,028,178	)		(9,412,702	)		(22,091,015	)
Accretion of asset retirement obligations		(54,715	)		(63,859	)		(52,250	)		(170,824	)
Reorganization items		(1,070,259	)		(1,386,393	)		(1,510,662	)		(3,967,314	)
Interest expense		(2,047,303	)		(2,348,032	)		(2,031,629	)		(6,426,964	)
Other income/(expense)		(47,723	)		(139,505	)		112,836			(74,392	)
TOTAL OTHER INCOME/(EXPENSE)		(8,870,135	)		(10,965,967	)		(12,894,407	)		(32,730,509	)
LOSS FROM CONTINUING OPERATIONS BEFORE INC TAXES, MINORITY INTERESTS & CUMULATIVE EFFECT OF AN ACCOUNTING CHANGE		(1,288,133	)		(3,372,694	)		(5,444,403	)		(10,105,230	)
Income taxes		110,000			109,000			—			219,000
Minority interests		—			—			6,208			6,208
LOSS BEFORE CUMULATIVE EFFECT OF AN ACCOUNTING CHANGE		(1,398,133	)		(3,481,694	)		(5,450,611	)		(10,330,438	)
Cumulative effect of accounting change		—			—			—			—
NET LOSS BEFORE PREFERRED DIVIDEND		(1,398,133	)		(3,481,694	)		(5,450,611	)		(10,330,438	)
Reorganization item—accretion of preferred stock		—			—			—			—
NET LOSS AVAILABLE TO COMMON OWNERS	$	(1,398,133	)	$	(3,481,694	)	$	(5,450,611	)	$	(10,330,438	)

*NOTE: The revenues reflected in this statement have been reduced by I/C revenue eliminations of $.5 million for all periods presented. There is no EBITDA impact from these eliminations.

NTELOS Inc. and Subsidiaries

AS REPORTED Consolidating Income Statement – Current Month

June 30, 2003

	Consolidated			Telephone 1			Network 2			CLEC3			Internet4			Wrless PCS 5			Other Wrls 6			Paging 7			Other 8			Holding Co 9			Elim's 10
TOTAL GROSS OPERATING REVENUES		25,116,502			4,574,906			658,693			2,191,952			1,472,266			16,280,915			—			87,237			288,122			17,352			(454,941	)
OPERATING EXPENSES
Cost of Sales		3,526,293			—			—			—			—			3,526,293			—			—			—			—			—
Access		1,644,990			91,963			27,582			763,488			360,708			390,958			—			9,291			1,000			—			—
Advertising, Marketing & External Relations		933,216			5,218			261			4,784			32,957			871,876			617			2,298			714			14,491			—
Retention		766,970			—			—			—			—			747,078			19,892			—			—			—			—
Cell Site		1,306,157			—			—			—			—			1,293,154			—			7,564			5,439			—			—
Contracted Services		255,003			44,845			12,955			3,738			215			43,926			31,826			127			2,901			114,470			—
Directory		72,553			72,451			—			102			—			—			—			—			—			—			—
Intercompany Eliminations		(523,926	)		—			—			—			—			—			—			—			—			—			(523,926	)
Materials & supplies		260,442			8,791			310			4,234			4,364			12,415			13,342			—			963			216,023			—
Operating taxes		481,916			62,360			14,045			37,394			16,208			315,622			7,545			2,060			11,142			15,540			—
Postage & Freight		138,488			2,728			—			25			5			10,053			24,300			—			9			101,368			—
Professional fees		174,557			18,000			1,175			—			—			84,494			227			—			2,459			68,202			—
Rent		455,229			98,824			34,958			19,879			4,743			234,074			31,319			1,926			(7,869	)		37,375			—
Repairs & Maintenance		370,925			59,266			37,310			13,945			—			189,403			32,799			—			14,289			23,913			—
Roamer Administration		108,578			—			—			—			—			95,185			13,393			—			—			—			—
Salaries, Wages & Benefits		4,797,807			1,274,223			8,399			92,119			57,481			984,403			1,338,932			52			72,684			969,514			—
Sal & Wages—I/C Svcs		(639	)		(61,239	)		27,259			43,460			(6,097	)		282			—			2,548			(6,067	)		(785	)		—
Selling expenses		1,315,826			(9,955	)		8,954			33,249			21,115			1,120,482			69,230			466			3,165			135			68,985
Telephone—Wireline & Wireless		218,768			25,811			12,096			6,038			220			53,885			8,441			77			5,680			106,520			—
Recruiting, Training and T&E		106,409			5,393			231			4,913			140			43,862			44,506			—			(226	)		7,590			—
Utilities		166,070			57,659			3,760			116			1,450			28,412			11,159			—			12,279			51,235			—
Vehicle		63,818			23,327			2,012			1,683			1,296			23,446			1,209			—			6,577			4,268			—
Corporate and other		1,050,937			63,804			386			15,303			9,099			158,424			16,202			118			16,511			771,090			—
TOTAL OPERATING EXPENSES		17,690,387			1,843,469			191,693			1,044,470			503,904			10,227,727			1,664,939			26,527			141,650			2,500,949			(454,941	)
Total Allocations		(23,889	)		(282,250	)		144,172			392,164			338,740			2,427,610			(1,393,788	)		34,280			56,208			(1,741,025	)		—
EBITDA		7,450,004			3,013,687			322,828			755,318			629,622			3,625,578			(271,151	)		26,430			90,264			(742,572	)		—
Depreciation & Amortization		(9,412,703	)		(670,937	)		(247,584	)		(251,476	)		(245,099	)		(7,856,229	)		(32,916	)		(3,404	)		(81,487	)		(23,571	)		—
Accretion of Asset Retirement Obligation		(52,250	)		(944	)		(116	)		(2,875	)		—			(46,977	)		(1,338	)		—			—			—			—
Reorganization charges		(1,510,662	)		—			—			—			—			671,784			—			—			—			(2,182,446	)		—
Interest Expense		(2,031,630	)		(54,941	)		(30	)		(367	)		(81	)		(121,516	)		—			—			(20	)		(1,854,675	)		—
Other Income/(Expense)		112,838			280,028			(187,738	)		(155,556	)		(101,755	)		(2,377,315	)		(3,824,047	)		2,357			7,053			6,462,987			6,824
TOTAL OTHER INCOME/EXPENSE		(12,894,407	)		(446,794	)		(435,468	)		(410,274	)		(346,935	)		(9,730,253	)		(3,858,301	)		(1,047	)		(74,454	)		2,402,295			6,824
NET INCOME BEFORE INCOME TAXES & MINORITY INTERESTS		(5,444,403	)		2,566,893			(112,640	)		345,044			282,687			(6,776,459	)		(4,129,452	)		25,383			15,810			2,331,507			6,824
Income Taxes		—			—			—			—			—			—			—			—			—			—			—
Minority Interests		6,208			—			—			—			—			—			—			—			—			—			6,208
NET INCOME AVAILABLE TO COMMON OWNERS	$	(5,450,611	)	$	2,566,893		$	(112,640	)	$	345,044		$	282,687		$	(6,776,459	)	$	(4,129,452	)	$	25,383		$	15,810		$	2,331,507		$	616

¹ The debtors included in this segment are: NTELOS Telephone Inc. and Roanoke & Botetourt Telephone Company.

² The debtors included in this segment are: R&B Network, Inc., NTELOS Network Inc. (VA Network operations), NTELOS Wireless Inc. (WV Network operations owned by NTELOS Wireless Inc.), Virginia Telecommunications Partnership, & VITAL.

³ The debtors included in this segment are: R&B Network, Inc. (R&B CLEC operations), NA Communications, Inc., NTELOS Network Inc. (VA CLEC operations), & NTELOS Wireless Inc. (WV CLEC operations which are actually owned by NTELOS Wireless Inc.).

⁴ The debtors included in this segment are: R&B Communications, Inc. (R&B ISP operations), NTELOS Network Inc. (VA ISP operations), NTELOS Cornerstone Inc., & NTELOS Wireless Inc. (WV ISP operations which are actually owned by NTELOS Wireless Inc.).

⁵ The debtors included in this segment are: Richmond 20MHz, LLC, VA RSA 6 Cellular Limited P'ship, Virginia PCS Alliance, L.C., West Virginia PCS Alliance, L.C., & NTELOS PCS North Inc.

⁶ The debtors included in this segment are: NTELOS Wireless Inc. (represents books of Wireless corporate/shared functions).

⁷ The debtors included in this segment are: NTELOS Wireless Inc. (represents the primary paging market operations) & The Beeper Company.

⁸ The debtors included in this segment are: NTELOS Communications Services Inc., NTELOS Cable of Virginia Inc., NTELOS Cable Inc., & R&B Cable, Inc.

⁹ The debtors included in this segment are: NTELOS Inc., & R&B Communications, Inc. (R&B Holding Company operations).

¹⁰ This segment contains intercompany eliminations only.

NTELOS Inc. (Debtor-in-possession)

Cash Flow Exhibit

Amounts in 000's

	For the Period:
	Apr 1-30, 2003			May 1-31, 2003			June 1-30, 2003
OPERATIVE INFLOWS
HORIZON	$	3,000		$	3,000		$	3,172
AT&T		480			455			602
CUSTOMER RECEIPTS		22,759			24,408			22,069
TOTAL INFLOWS		26,239			27,863			25,843
OPERATIVE OUTFLOWS
Cost of Sales-Handsets & Accessories		(2,345	)		(3,119	)		(3,319	)
Advertising & Marketing		(1,023	)		(885	)		(837	)
Rent/Cell Site		(1,548	)		(1,471	)		(1,737	)
Salaries & Benefits		(5,070	)		(5,294	)		(5,792	)
Operating Taxes		(1,375	)		(2,106	)		(1,852	)
Other		(6,588	)		(5,858	)		(6,073	)
TOTAL OUTFLOWS		(17,948	)		(18,733	)		(19,611	)
FINANCIAL AND ADVISOR EXPENSES
INTEREST LTD		(727	)		(1,884	)		(1,857	)
JLL		0			0			0
FCC		0			0			0
RUS/RTB		0			0			(323	)
FEES		0			(27	)		(15	)
DEBT REPAYMENT-SR. CREDIT FACILITY		0			0			(250	)
ADVISOR & BANK FEES		(257	)		(559	)		(1,161	)
TOTAL FINANCIAL AND ADVISOR EXPENSES		(984	)		(2,470	)		(3,606	)
OPERATING CASH FLOW BEFORE CAP EX		7,306			6,660			2,626
TOTAL CAP EX		(5,230	)		(3,551	)		(5,633	)
OPERATING CASH FLOW		2,076			3,109			(3,007	)
INITIAL CASH BALANCE		23,462			25,538			28,647
ENDING CASH BALANCE		25,538			28,647			25,640
Deposits in Transit & other reconciling items		949			1,377			781
Balance per Financial Statements	$	26,487		$	30,024		$	26,421

CASE NAME: NTELOS Inc. et al.	ACCRUAL BASIS-4
CASE NUMBER: 03-32094-DOT	30-Jun-03

ACCOUNTS RECEIVABLE AGING		SCHEDULE AMOUNT		04/30/2003		05/31/2003		06/30/2003
1.	0-30			$	23,211,543	$	21,640,621	$	21,927,182
2.	31-60				10,242,037		10,299,284		10,746,153
3.	61-90				2,122,425		2,244,668		2,593,150
4.	91+				20,277,509		21,335,833		17,297,852
5.	TOTAL ACCOUNTS RECEIVABLE		33,190,045		55,853,514		55,520,407		52,564,338
6.	AMOUNT CONSIDERED UNCOLLECTIBLE				21,499,954		22,321,530		19,075,415
7.	ACCOUNTS RECEIVABLE (NET)	$	33,190,045	$	34,353,560	$	33,198,877	$	33,488,924

NTELOS Inc.

Cautionary Statement

The Company cautions readers not to place undue reliance upon the information contained herein. The Monthly Operating Report (“Operating Report”) contains unaudited information, and is in a format prescribed by the applicable bankruptcy laws. There can be no assurance that the Operating Report is complete. The Operating Report also contains information for a period which is shorter than those contained in the Company’s reports pursuant to the Securities Exchange Act of 1934, as amended (“Exchange Act”). The information contained in the Operating Report might not be indicative of the Company’s financial condition or operating results for the period that would be reflected in the Company’s financial statements. Results set forth in the Operating Report should not be viewed as indicative of future results.

Moreover, the Operating Report and other communications from the Company may include forward-looking statements subject to various assumptions regarding the Company’s operating performance that may not be realized and are subject to significant business, economic and competitive uncertainties and contingencies, including those described in this report, many of which are beyond the Company’s control. Consequently, such matters should not be regarded as a representation or warranty by the Company that such matters will be realized or are indicative of the Company’s financial condition or operating results for future periods or the periods covered in the Company’s reports pursuant to the Exchange Act. Actual results for such periods may differ materially from the information contained in the Operating Report and the Company undertakes no obligation to update or revise the Operating Report.

The Operating Report, as well as other statements made by representatives of the Company, may contain “forward-looking statements” concerning the Company’s future expectations, financial and operating projections, plans, strategies and the trading market for its securities, including the Company’s ability to finalize the terms of a plan of reorganization acceptable to the Company’s senior noteholders and bank group. Forward-looking statements made by the Company are based on a number of assumptions, estimates and projections. These statements are not guarantees of future performance and involve risks and uncertainties, including those relating to (i) the impact of the bankruptcy filing on the Company’s business, (ii) the interest of market makers and others in maintaining an active market for the Company’s securities, (iii) the Company’s ability to operate under debtor-in-possession financing, (iv) the Company’s ability to develop, prosecute, confirm and consummate a plan of reorganization, (v) the Company’s ability to maintain vendor, lessor and customer relationships while in bankruptcy, (vi) the additional expenses associated with bankruptcy as well as the possibility of unanticipated expenses, and (vii) market conditions and competition in the communications industry generally and those set forth in documents filed by the Company with the Securities and Exchange Commission, and any significant deviations from these assumptions could cause actual results, performance or achievements of the Company to differ materially from those expressed or implied by such forward-looking statements. The Company undertakes no obligation to revise or update such forward-looking statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Similarly, these and other factors, including the terms of any reorganization plan ultimately confirmed, can affect the value of the Company’s various pre-petition liabilities and securities. At this time, it is not possible to predict the final outcome of the bankruptcy proceedings.