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Otelco Completes Acquisition

Rural service provider Otelco completes acquisition of Mid-Maine Communications

July 5, 2006

1 Min Read

ONEONTA, Ala. -- Otelco Inc. (AMEX: OTT - News; TSX: OTT.un - News), the sole wireline telephone services provider in several rural communities in Alabama and Missouri, announced that it has completed its previously announced acquisition of Mid-Maine Communications, Inc. for approximately $37.8 million in cash.

Mid-Maine, located in Bangor, Maine, has provided telecommunications solutions to residential and business customers since 1994. Mid-Maine offers a complete set of voice, data and Internet services through both a regulated and non-regulated subsidiary. The acquisition increases Otelco's total access line equivalents from 39,000 to over 61,000.

Otelco financed the acquisition through additional bank borrowings. In connection with the transaction, Otelco refinanced its existing senior secured credit facility at a lower rate and increased its size to $135 million. GE Capital Markets acted as lead arranger for the financing.

Otelco Inc.

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