PORTLAND, Maine -- FairPointCommunications, Inc. (NYSE: FRP) today announced it has reached tentativeagreements with the T-9 Council of the International Brotherhood ofElectrical Workers (IBEW) and Communications Workers of America (CWA), thetwo unions representing the approximately 2,500 employees who will becontinuing employment after FairPoint's acquisition of VerizonCommunications' landline and certain related operations in Maine, NewHampshire and Vermont. The transaction is expected to close on March 31,2008.

All parties involved in the negotiations were able to come toacceptable terms on a number of key provisions, including wage and pensionincreases for active employees, healthcare benefits for active employeesand retirees, and 401(k) improvements.

"We are pleased we have reached an agreement with the IBEW and CWAbecause of the crucial role the employees represented by theseorganizations play in providing excellent customer service. This agreementlays the foundation for good relationships going forward. We're lookingforward to closing the transaction and welcoming these employees into theFairPoint family," said Peter Nixon, president of FairPoint Communications.

"This long-term agreement is a big step in alleviating the apprehensionof our membership in changing companies. Now that this is out of the way,we can concentrate on making the transition in the three northern states asseamless as possible for our customers," said Peter McLaughlin, chairman ofIBEW SCT-9.

"CWA is very pleased with the agreement we've been able to work outwith FairPoint," said Chris Shelton, District 1 vice president. "We knowthe members we represent are the best in the world at what they do. Withtheir experience and expertise and FairPoint's commitment to improvingservice to Maine, New Hampshire and Vermont, the future looks bright fortelecommunication in northern New England."

FairPoint Communications Inc.