FOR IMMEDIATE RELEASE

             Contact:  Jennifer Spaude, Investor Relations

            507-386-3765

HickoryTech Completes Acquisition of CP Telecom

Minnesota facilities-based telecom provider will broaden Company’s SMB focus

   

MANKATO, Minn., Aug. 3, 2009 — HickoryTech Corporation (Nasdaq: HTCO) announced today that it has completed its acquisition of CP Telecom, a privately held facilities-based telecom provider, serving Minneapolis, St. Paul and northern Minnesota, for the purchase price of $7 million, plus routine working capital adjustments.  HickoryTech funded this acquisition with cash on hand and did not incur any additional debt.

“We are excited to complete the CP Telecom acquisition and grow our small to medium sized business (SMB) customer segment,” said John Finke, HickoryTech president and chief executive officer. “CP Telecom customers will continue to experience high quality services and support.  We look forward to integrating the experienced CP Telecom team into our operations as we continue to expand our focus on the SMB customer segment.”  

 

CP Telecom provides voice, data and Internet services in the Minneapolis and Duluth, Minn. areas. CP Telecom’s assets include: long-term rights to a fiber network encompassing Minneapolis and St. Paul, IP, mid-band Ethernet and voice soft switching technologies.

 

HickoryTech’s subsidiary, Enventis, operates in the Minneapolis, St. Paul and Duluth markets today.  The Company plans to utilize the Enventis brand for its business services in these markets and will phase out the CP Telecom name in the future.

 
About HickoryTech Corporation
HickoryTech Corporation (dba HickoryTech and Enventis) is a leading integrated communications provider in the markets it serves.  With headquarters in Mankato, Minn., the corporation has approximately 450 employees and a regional fiber network with facilities-based operations in Minnesota and Iowa.  Enventis serves businesses of all sizes across a five-state region with IP-based voice, data and network solutions.  HickoryTech provides bundled residential and business services including high-speed Internet, Digital TV and voice services in its legacy telecom markets.  The Company trades on the Nasdaq Stock Exchange, symbol: HTCO, and is a member of the Russell 2000 index. For more information, visit www.hickorytech.com.

Forward looking statement    

Certain statements included in this press release that are not historical facts are "forward-looking statements." Such forward-looking statements are based on current expectations, estimates and projections about the industry in which HickoryTech operates and management's beliefs and assumptions. The forward-looking statements are subject to uncertainties. These statements are not guarantees of future performance and involve certain risks, uncertainties and probabilities. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they were made. HickoryTech undertakes no obligation to update any of its forward-looking statements, except as required by federal securities laws.

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