VZW Buys Rural Cellular

BASKING RIDGE, N.J. -- In a move to expand its wireless service coverage in rural markets, Verizon Wireless, a joint venture of Verizon Communications (NYSE: VZ - News) and Vodafone (NYSE and LSE: VOD - News News), announced today that it has entered into an agreement to acquire Rural Cellular Corporation (Nasdaq: RCCC - News), for approximately $2.67 billion in cash and assumed debt.

The acquisition will further enhance Verizon Wireless' network coverage in markets adjacent to its existing service areas. The combination will increase Verizon Wireless coverage by 4.7 million licensed POPs (population), and increase its customer base by more than 700,000.

"Verizon Wireless continually looks for opportunities to enhance our customers' wireless experience," said Lowell McAdam, president and CEO of Verizon Wireless. "The addition of Rural Cellular's markets will enable us to expand our services into areas where previously we had little or no presence, and will give Rural Cellular's Unicel customers access to the nation's most reliable network and a broader range of voice and data services."

Richard Ekstrand, president and CEO of Rural Cellular Corporation, said, "Since the founding of Rural Cellular Corporation in 1990, our mission has been to provide wireless service to rural areas across the country where tourism, agriculture and small businesses are prevalent. Our employees are deservedly proud of the tremendous growth and strong financial performance we have achieved, while we continued to focus on providing innovative solutions through wireless technologies and maximizing customer satisfaction.

"Today, as the wireless industry continues to evolve, our Board of Directors has concluded that it is in the company's best interest to enter into a sale transaction with Verizon Wireless. As the nation's leading wireless provider, Verizon Wireless has the resources and scale to provide a wide range of outstanding products and services to our customers, while also offering new opportunities for many of our employees."

Verizon Wireless