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Press Release
For Immediate Release
CALIFORNIA-OREGON TELECOMMUNICATIONS COMPANY JOINS LYNCH INTERACTIVE
RYE, New York, August 30, 2005 - Lynch Interactive Corporation (AMEX:LIC) today
announced that it completed the acquisition of California-Oregon
Telecommunications Company ("Cal-Ore") and its subsidiaries for approximately
$21.2 million, consisting of $14 million cash and $7.2 million of notes. The
cash portion of the purchase price was financed through bank borrowings.
Headquartered in Dorris, California, Cal-Ore is a diversified communications
company offering services in the Butte Valley and Tulelake areas of northern
California, as well as some areas of southern Klamath County, Oregon. Its
subsidiaries include Cal-Ore Telephone, Cal-Ore Cellular, Cal-Ore Long Distance,
and Cal-Ore Communications.
Cal-Ore serves approximately 3,100 access lines, including Digital Subscriber
Line ("DSL") service. Cal-Ore's service offerings include local telephone
service, long distance, internet dial-up and high-speed broadband services. In
Klamath Falls, Oregon, Cal-Ore Communications' competitive local exchange
carrier ("CLEC") will provide "triple play" fiber-to-the-home services in the
new Southview Properties development including voice, high-speed data and video.
Cal-Ore will continue to have business offices in Dorris and Tulelake,
California, and will continue to offer the same quality of service their
customers have come to expect over the previous 55 years.
This transaction brings Lynch Interactive's total access lines, including DSL,
to approximately 59,500 in 15 telephone companies. Cal-Ore marks the entry of
Lynch Interactive's telephone operations to the State of California and its CLEC
activities in the State of Oregon.
Jack Keen, President of Lynch Interactive's subsidiary Western New Mexico
Telephone Company, will be the Regional Manager for Cal-Ore. Mr. Keen said, "I
look forward to working with the Cal-Ore management since Cal-Ore shares Western
New Mexico's belief that providing high quality service in rural America is
fundamental to the future of our country."
After viewing the Cal-Ore facilities and meeting with Cal-Ore personnel, Eddie
Cox, General Manager of Central Utah Telephone Company, another member of the
Lynch Interactive family, said, "I believe Cal-Ore's addition to the Lynch
Interactive family will be very positive since Cal-Ore has a great team of
employees, led by Ed Ormsbee, who provide customers excellent, quality service."
Lynch Interactive is a diversified company with subsidiaries in multimedia and
telecommunications services, and actively seeks acquisitions, principally in
existing business areas. The Company's World Wide Web address is:
http://www.lynchinteractivecorp.com.
* * * * * * * *
This release contains certain forward-looking information within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 194, as amended. It should be recognized that such
information is based upon certain assumptions, projections and forecasts,
including without limitation business conditions and financial markets,
regulatory actions and initiatives, and the cautionary statements set forth in
documents filed by Interactive with the Securities and Exchange Commission. As a
result, there can be no assurance that any possible transactions will be
accomplished or be successful or that financial targets will be met, and such
information is subject to uncertainties, risks and inaccuracies which could be
material.
* * * * * * * *
Contact: John A. Cole or Paul Goldstein
Vice President and Controller
General Counsel
914/921-8821 914/921-8821
Release 05-09