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| x      | ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|--------|------------------------------------------------------------------------------------------------|
|   | For      the fiscal period ending December 31,2009                                             |

| ¨ | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934            |
|--------|---------------------------------------------------------------------------------------------------------------|
|   | For      the transition period      from     to      . |

| Minnesota                            | 41-1524393               |
|--------------------------------------|--------------------------|
| (State      or other jurisdiction of | (I.R.S.      Employer    |
| incorporation      or organization)  | Identification      No.) |

|   | Title of Class                  |   | Name of Exchange on Which      Registered |   |
|--------|---------------------------------|--------|-------------------------------------------|--------|
|   | Common      Stock, no par value |   | NASDAQ      Global Select Market          |   |

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TABLE OF CONTENTS

| PART I |
|--------|

| Item 1.  | Business                  |   3 |
|----------|---------------------------|---------------|
| Item 1A. | Risk Factors              | 13            |
| Item 1B. | Unresolved Staff Comments | 22            |
| Item 2.  | Properties                | 22            |
| Item 3.  | Legal Proceedings         | 22            |

PART II

| Item 4.  | Reserved                                                                                                     | 22                   |
|----------|-------------------------------------------------------------------------------------------------------------------|----------------------|
| Item 5.  | Market for Registrant's Common Equity, Related Stockholder      Matters and Issuer Purchases of Equity Securities | 23                   |
| Item 6.  | Selected Financial Data                                                                                           | 26                   |
| Item 7.  | Management's Discussion and Analysis of Financial Condition      and Results of Operations                   | 27                   |
| Item 7A. | Quantitative and Qualitative Disclosures about Market      Risk                                                   | 46                   |
| Item 8.  | Financial Statements and Supplementary    Data                                                                    | 49                   |
| Item 9.  | Changes in and Disagreements with Accountants on Accounting      and Financial Disclosure                    |         73 |
| Item 9A. | Controls and Procedures                                                                                           | 73                   |
| Item 9B. | Other Information                                                                                                 | 74                   |

PART III

| Item 10.       | Directors, Executive Officers and Corporate      Governance                                               |  74 |
|----------------|-----------------------------------------------------------------------------------------------------------|----------|
| Item 11.  | Executive Compensation                                                                                    |  75 |
| Item 12.  | Security Ownership of Certain Beneficial Owners and      Management and Related Stockholder Matters  |  75 |
| Item 13.  | Certain Relationships and Related Transactions and      Director Independence                             |  75 |
| Item 14.  | Principal Accountant Fees and Services                                                                    |  75 |

PART IV

| Item 15. | Exhibits and Financial Statement    Schedules | 75 |
|----------|-----------------------------------------------|----|

SIGNATURES

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PART I

Item 1

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| ·   |  Enventis      Telecom, Inc. (“Enventis”) |
|--------------------|------------------------------------------------------------|

| ·   |  CP      Telecom Inc. (“CP Telecom”) |
|--------------------|-------------------------------------------------------|

| ·   | Mankato      Citizens Telephone Company (“MCTC”) |
|--------------------|--------------------------------------------------------------|

| ·   | Mid-Communications,      Inc. (“Mid-Com”) |
|--------------------|-------------------------------------------------------|

| ·   | Heartland      Telecommunications Company of Iowa, Inc.  (“Heartland”) |
|--------------------|------------------------------------------------------------------------------------|

| ·   | Cable      Network, Inc. (“CNI”) |
|--------------------|----------------------------------------------|

| ·   | Crystal      Communications, Inc. (“Crystal”) |
|--------------------|-----------------------------------------------------------|

| ·   | National      Independent Billing, Inc. (“NIBI”) |
|--------------------|--------------------------------------------------------------|

| ·   | Fiber      and data networks |
|--------------------|------------------------------|

| ·   | Voice      and data services |
|--------------------|------------------------------|

| ·   | Managed      and hosted services |
|--------------------|----------------------------------|

| ·   | Unified      Communications and equipment |
|--------------------|-------------------------------------------|

| ·   | Data      center services |
|--------------------|---------------------------|

| ·   | Security |
|--------------------|----------|

| ·   | Total      care support and monitoring |
|--------------------|----------------------------------------|

| ·   | Professional      services |
|--------------------|----------------------------|

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| ·   | Execute on our local market      strategy. We will continue to leverage the HickoryTech brand and      its strong reputation in our legacy markets and offer a competitive,      multi-service bundle of voice, high-speed Internet and in many markets      digital TV. We will manage the decline in Telecom network access and local      service revenues by offering value-added services such as higher Internet      speeds and localized content along with unparalleled customer service as a      competitive differentiator. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Develop and deploy advanced      communications technologies. We have and will continue to upgrade      our networks to take advantage of the fastest growing areas of technology      including advanced high-bandwidth capabilities and services, including      expansion of our network for wholesale and retail customers,      Fiber-to-the-Tower (“FTTT”) services for wireless carriers and last mile      fiber builds to data centers and business customers. We believe our      innovative technical capabilities and the use of VoIP technologies      combined with our Total Care Support offering will allow us to attract and      maintain clients by providing proactive monitoring and deployment of these      services. Our enhanced SingleLink product, which provides customers      with a single, centrally managed and hosted VoIP-based communications      system, allows businesses to leverage the powerful benefits of integrated      IP communications without the time and capital necessary for on-premise      solutions. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

| ·   | Grow monthly recurring revenue      services through business-to-business sales. Our focus remains on      supporting business customers ranging in size from small to large      enterprise businesses. We offer integrated communication solutions which      include IP telephony, unified computing, transport and data and network      integration services that combine voice and data into a single platform.      The integration of CP Telecom into our Company has broadened our product      and service offerings for small and medium business customers (“SMB”). We      believe we have created a competitive advantage by utilizing a      consultative sales approach and developing innovative and flexible      solutions for our customers. We will further expand our SMB focus through      the expansion of our local fiber network into cities in which we believe      we can offer competitive services and take market share. We are able to do      this by utilizing our IP expertise, leveraging our extensive fiber network      and offering a full complement of high-quality products and      services.  |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Maintain stable cash flows from      operations and disciplined capital spending. Our current customer      base provides a recurring revenue stream generating stable cash flow. Our      focus remains on growing our services and support product lines that will      over time generate cash flow well in excess of capital expenditure needs.      We have allocated resources to maintain and upgrade our network while      focusing on optimizing returns by completing strategic capital outlays      that will make our network more efficient and cost effective while      bringing a richer product and services portfolio to the markets we      serve. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Grow through select strategic      growth initiatives. We intend to continue to pursue a disciplined      process of evaluating select acquisitions of businesses as well as organic      growth opportunities of market expansion and/or products which are      complementary to our businessportfolio. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| For      Year Ended December 31           |   | 2009   |    |   | 2008    |   |   | 2007   |   |
|-------------------------------------------|--------|--------|---------|--------|---------|--------|--------|--------|--------|
|                                      |   | Amount |    |   | Percent |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |
| Enventis:                                 |   |   |    |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Equipment      Sales    |   | $      | 27,857  |   |    |   | 20     | %      |   | $ | 43,514 |   |   |   | 28 | % |   | $ | 51,046 |   |   |   | 33 | % |
|    Equipment      Services |   |   | 9,579   |   |    |   | 7      | %      |   |   | 12,387 |   |   |   | 8 | % |   |   | 8,292 |   |   |   | 5 | % |
|    Fiber      and Data     |   |   | 31,247  |   |    |   | 22     | %      |   |   | 24,075 |   |   |   | 16 | % |   |   | 20,464 |   |   |   | 13 | % |
| Telecom:                                  |   |   |    |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Local      Service      |   |   | 15,322  |   |    |   | 11     | %      |   |   | 16,296 |   |   |   | 11 | % |   |   | 17,089 |   |   |   | 11 | % |
|    Network      Access     |   |   | 24,157  |   |    |   | 17     | %      |   |   | 25,859 |   |   |   | 17 | % |   |   | 30,892 |   |   |   | 20 | % |
|    Broadband               |   |   | 12,114  |   |    |   | 9      | %      |   |   | 10,983 |   |   |   | 7 | % |   |   | 9,173 |   |   |   | 6 | % |
|    Internet                |   |   | 4,975   |   |    |   | 4      | %      |   |   | 4,723 |   |   |   | 3 | % |   |   | 4,612 |   |   |   | 3 | % |
|    Long      Distance      |   |   | 3,791   |   |    |   | 3      | %      |   |   | 4,563 |   |   |   | 3 | % |   |   | 5,068 |   |   |   | 3 | % |
|    Other                   |   |   | 10,060  |   |    |   | 7      | %      |   |   | 10,775 |   |   |   | 7 | % |   |   | 10,013 |   |   |   | 6 | % |
| Total      Revenue                        |   | $      | 139,102 |   |    |   | 100    | %      |   | $ | 153,175 |   |   |   | 100 | % |   | $ | 156,649 |   |   |   | 100 | % |

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| ·   | High-Cost      program, which subsidizes local carriers operating in high-cost regions of      the country to ensure reasonably based telephone rates. This program has      the most direct impact on our operating  companies, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Low-Income      Subscribers program, which includes the Link Up and Lifeline programs that      provide subsidies for service initiation and monthly fees, respectively,      with eligibility based on subscriberincome, |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Rural      Health Care Providers program, which subsidizes telecommunications      services used by rural health care providers and provides them with toll      free access to an Internet service provider,and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Schools      and Libraries program, also called the E-Rate program, which provides      support funding to schools and libraries for telecommunications services,      Internet access and internalconnections. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | To      interconnect directly or indirectly with other  carriers, |
|--------------------|-------------------------------------------------------------------|

| ·   | To      allow others to resell theirservices, |
|--------------------|-----------------------------------------------|

| ·   | To      provide for number portability, which allows end-users to retain their      telephone number when changingproviders, |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| ·   | To      ensure dialing parity, |
|--------------------|--------------------------------|

| ·   | To      ensure that competitor’s customers have nondiscriminatory access to      telephone numbers, operator services, directory assistance and directory      listing services, and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | To      allow competitors access to telephone poles, ducts, conduits and      rights-of-way, and to establish reciprocal compensation arrangements for      the transport and termination of telecommunications    traffic. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Provide      non-discriminatory access to discrete parts of the network, such as local      loops and transport facilities. These are referred to as unbundled network      elements, and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Provide      at rates, terms and conditions that are just, reasonable and      non-discriminatory, physical co-location of equipment necessary for      interconnection or access to unbundled network  elements. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Item 1A

| ·   | Substantial      regulatory change due to the passage and implementation of the      Telecommunications Act of 1996, which included changes designed to      stimulate competition for both local and long distance telecommunications      services, |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Rapid      development and introduction of new technologies and    services, |
|--------------------|------------------------------------------------------------------------------|

| ·   | Increased      competition within established markets from current and new market      entrants that may provide competing or alternative    services, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      blurring of traditional dividing lines between, and the bundling of,      different services, such as local dial tone, long distance, wireless,      cable TV, data and Internet services,and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | An      increase in mergers and strategic alliances that allow one      telecommunications provider to offer increased services or access to wider      geographic markets. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | For      the year ended December 31, 2009, we received an aggregate of $2,479,000      from the Federal Universal Service Fund, which comprised 1.8% of our      revenue for the year. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | For      the year ended December 31, 2008, we received an aggregate of $2,699,000      from the Federal Universal Service Fund, which comprised 1.8% of our      revenue for the year. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | For      the year ended December 31, 2007, we received an aggregate of $3,268,000      from the Federal Universal Service Fund, which comprised 2.1% of our      revenue for the year. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Under      certain environmental laws, we could be held liable, jointly and severely      and without regard to fault, for the costs of investigating and the      remediation of any actual or threatened environmental contamination at      currently and formerly owned or operated properties, and those of our      predecessors, and for contamination associated with disposal by us or our      predecessors of hazardous materials at third party disposal      sites, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      presence of contamination can adversely affect the value of our properties      and our ability to sell any such affected property or to use it as      collateral, |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      could be held responsible for third party property damage claims, personal      injury claims or natural resource damage claims relating to any such      contamination, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      cost of complying with existing environmental requirements could be      significant, |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | Adoption      of new environmental laws, regulations or changes in existing laws or      regulations or their interpretations could result in significant      compliance costs or as yet identified environmental      liabilities, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Future      acquisition of businesses or properties subject to environmental      requirements or affected by environmental contamination could require us      to incur substantial costs relating to such matters,  and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In      addition, environmental laws regulating wetland, endangered species and      other land use and natural resource issues may increase costs associated      with future business or expansion opportunities, delay, alter or interfere      with such plans, or otherwise adversely affect such  plans. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | Requiring      us to dedicate a substantial portion of our cash flow from operations to      make principal and interest payments on our  debt, |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Limiting      our flexibility in planning for, or reacting to, changes in our business      and the industry in which weoperate, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------|

| ·   | Limiting      our ability to borrow additional funds, or to sell assets to raise funds,      if needed, for working capital, capital expenditures, acquisitions or      other purposes, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Increasing      our vulnerability to general adverse economic and industry conditions,      including changes in interest rates,and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Placing      us at a competitive disadvantage compared to our competitors that have      less debt. |
|--------------------|-----------------------------------------------------------------------------------------------------|

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| ·   | Incur      additional debt and issue preferredstock, |
|--------------------|------------------------------------------------------|

| ·   | The      payment of dividends on, and purchase or redemption of, capital      stock, |
|--------------------|--------------------------------------------------------------------------------------|

| ·   | Make      investments in excess of athreshold, |
|--------------------|------------------------------------------------|

| ·   | Make      capital expenditures in excess of athreshold, |
|--------------------|---------------------------------------------------------|

| ·   | Create      liens on our assets, |
|--------------------|----------------------------------|

| ·   | Sell      certain assets, |
|--------------------|---------------------------|

| ·   | Engage      in some transactions withaffiliates, |
|--------------------|--------------------------------------------------|

| ·   | Engage      in business other than telecommunications businesses,  and |
|--------------------|------------------------------------------------------------------------|

| ·   | Make      other restricted payments, including payments in connection with      investments and acquisitions in excess of a  threshold. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | The      state of our business, the environment in which we operate and the various      risk factors we face, including, but not limited to competition,      technological change, industry change, regulatory and other risks      summarized in this Annual Report on Form10-K, |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our      future results of operations, financial condition, liquidity needs and      capital resources, |
|--------------------|---------------------------------------------------------------------------------------------------------|

| ·   | Our      cash needs, including interest and any future principal payments on our      indebtedness, capital expenditures, taxes, pension and other      post-retirement contributions and certain other costs,  and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Potential      sources of liquidity, including borrowing under our revolving credit      facility or possible asset sales. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------|

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| ·   | Either      reduce or eliminate dividends, |
|--------------------|--------------------------------------------|

| ·   | Fund      dividends by incurring additional debt (to the extent we were permitted to      do so under agreements governing our then existing debt), which would      increase our leverage, debt repayment obligations and interest expense and      decrease our interest coverage, resulting in, among other things, reduced      capacity to incur debt for other purposes, including to fund future      dividend payments, |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Amend      the terms of our credit agreement, if our lenders agreed, to permit us to      pay dividends or make other payments if we are otherwise not permitted to      do so, |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Fund      dividends from future issuances of equity securities, which could be      dilutive to our stockholders and negatively affect the price of our common      stock, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Fund      dividends from other sources, such as by asset sales or by working      capital, which would leave us with less cash available for other purposes,      and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Reduce      other expected uses of cash, such as capital  expenditures. |
|--------------------|-------------------------------------------------------------------------|

| ·   | Authorization      for our Board of Directors to issue preferred stock without shareholder      approval, |
|--------------------|-----------------------------------------------------------------------------------------------------------|

| ·   | Limitations      on business combinations with interested shareholders,  and |
|--------------------|------------------------------------------------------------------------------|

| ·   | Advance      notice requirements for shareholdersproposals. |
|--------------------|-------------------------------------------------------------|

| ·   | Due      to our low liquidity of stock trading volume, any imbalance between period      supply and demand in sharesoffered, |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| ·   | General      economic conditions in the United States or    internationally, |
|--------------------|------------------------------------------------------------------------------|

| ·   | Our      financial health and the financial health of our competitors or our      customers, |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | Developments      in telecommunications regulations, |
|--------------------|------------------------------------------------------|

| ·   | Consolidation      among our competitors or customers, |
|--------------------|--------------------------------------------------------|

| ·   | Rumors      or speculation regarding our future business results and      actions, |
|--------------------|------------------------------------------------------------------------------------|

| ·   | Increased      competition with our competitors or among our  customers, |
|--------------------|--------------------------------------------------------------------------|

| ·   | Quarterly      fluctuations in our financial results or the financial results of our      competitors or customers, |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

| ·   | Announcements      of new products and services by us or our competitors,  and |
|--------------------|--------------------------------------------------------------------------------|

| ·   | Disputes      concerning intellectual propertyrights. |
|--------------------|-------------------------------------------------------|

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Item 1B

Item 2

| 1.   | Lease      approximately 16,000 square feet of office space in Plymouth, Minnesota      for general offices, technology services and system    support. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Lease      approximately 9,300 square feet in Duluth, Minnesota for general      offices. |
|----------------|-------------------------------------------------------------------------------------------|

| 3.   | Lease      approximately 1,700 square feet in Rochester, Minnesota for general      offices and a network equipmentfacility. |
|----------------|------------------------------------------------------------------------------------------------------------------------------|

| 4.   | Lease      approximately 5,550 square feet in Minneapolis, Minnesota for general      offices. |
|----------------|------------------------------------------------------------------------------------------------|

| 5.   | License      approximately 2,200 square feet in Edina, Minnesota for a data      center. |
|----------------|------------------------------------------------------------------------------------------|

| 6.   | Utilize      approximately 2,200 square feet secured space within our headquarters      building in Mankato, Minnesota for a data  center. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| 7.   | License      approximately 400 square feet in Duluth, Minnesota for a data      center. |
|----------------|-----------------------------------------------------------------------------------------|

| 1.   | General      offices and our principal central office exchange building are located in      downtown Mankato, Minnesota. This facility, built in 1963, is owned and is      a three-level brick and stone building containing approximately 60,000      square feet of floor space. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Our      main operations center, built in 1996, is owned and located in Mankato,      Minnesota. This operations center is a two-story concrete building      containing approximately 48,000 square feet. The warehouse portion of the      building is used to store vehicles and supplies and is also used as office      space for engineers andtechnicians. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Central      office equipment is located in a one-story brick structure in Rock Rapids,      Iowa containing approximately 1,500 square feet of space. We also lease      approximately 2,000 square feet of general office space in Rock Valley,      Iowa. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | Lease      office space of approximately 6,000 square feet in Urbandale,      Iowa. |
|----------------|-------------------------------------------------------------------------------------|

| 5.   | Own      a four-level building in Mankato, Minnesota containing approximately      17,000 square feet used as office space for the data processing services      of our company. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Item 3

Item 4

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PART II

| Item 5.   Market for Registrant's Common      Equity, Related Stockholder Matters and Issuer Purchases of Equity      Securities |
|-------------------------------------------------------------------------------------------------------------------------------------------------|

| 2009                           |             | High   |   | Low    |   | End      of Qtr. |
|--------------------------------|------------------|--------|--------|--------|--------|------------------|
|       | 4th      Quarter | $9.29  |   | $7.80  |   | $8.83            |
|            | 3rd      Quarter | $9.15  |   | $7.93  |   | $8.55            |
|                           | 2nd      Quarter | $8.46  |   | $5.28  |   | $7.68            |
|                           | 1st      Quarter | $6.60  |   | $4.91  |   | $5.38            |
|                           |             |   |   |   |   |             |
| 2008                           |             | High   |   | Low    |   | End      of Qtr. |
|                           | 4th      Quarter | $6.29  |   | $4.92  |   | $5.44            |
|                           | 3rd      Quarter | $8.25  |   | $5.81  |   | $5.81            |
|                           | 2nd      Quarter | $8.95  |   | $7.77  |   | $8.27            |
|                           | 1st      Quarter | $9.48  |   | $7.97  |   | $8.27            |

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|                   |   | Total      Number of  |    |   | Average      Price Paid |   |   | Brokerage   |   |   | Total      Transaction |   |
|------------------------|--------|-----------------------|---------|--------|-------------------------|--------|--------|-------------|--------|--------|------------------------|--------|
| Purchase      Date     |   | Shares      Purchased |    |   | per      Share          |   |   | Commissions |   |   | Cost                   |   |
| October      31, 2008  |   |                  | 300,000 |   |                    | $      | 6.10   |        |   | $      | 13,500                 |   |   | $ | 1,843,500 |   |
| November      20, 2008 |   |                  | 93,000  |   |                    | $      | 5.55   |        |   | $      | 3,300                  |   |   | $ | 519,450 |   |

| Plan      Category                                               |   | Number      of securities to be issued upon exercise of outstanding options, warrants      and rights |    |   | Weighted-average      exercise price of outstanding options, warrants and rights |   |   | Number      of securities remaining available for future issuance under equity      compensation plans (excluding securities reflected in column      A) |   |
|------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------|---------|--------|----------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                             |   |  A                                                                                               |    |   |  B                                                                          |   |   |  C                                                                                                                                                  |   |
|                                                             |   |                                                                                                  |    |   |                                                                             |   |   |                                                                                                                                                     |   |   |   |   |
| Equity      compensation plans approved by security holders (1): |   |                                                                                                  | 430,950 |   |                                                                             | $      | 12.87  |                                                                                                                                                     |   |   | 1,774,018 |   |
|                                                             |   |                                                                                                  |    |   |                                                                             |   |   |                                                                                                                                                     |   |   |   |   |
| Equity      compensation plans not approved by security holders: |   |                                                                                                  | --      |   |                                                                             |   | --     |                                                                                                                                                     |   |   | -- |   |
|                                                             |   |                                                                                                  |    |   |                                                                             |   |   |                                                                                                                                                     |   |   |   |   |
| Total                                                            |   |                                                                                                  | 430,950 |   |                                                                             | $      | 12.87  |                                                                                                                                                     |   |   | 1,774,018 |   |

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| ANNUAL      RETURN PERCENTAGE  |   |
|--------------------------------|--------|
| Years      Ended               |   |
|                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                           |   |   | 12/05 |   |   |   | 12/06 |   |   |   | 12/07 |   |   |   | 12/08 |   |   |   | 12/09 |   |
|                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| HickoryTech      Corporation   |   |   | -22.34 | % |   |   | -3.59 | % |   |   | 38.17 | % |   |   | -37.69 | % |   |   | 74.09 | % |
| Russell      2000              |   |   | 4.55 | % |   |   | 18.37 | % |   |   | -1.57 | % |   |   | -33.79 | % |   |   | 27.17 | % |
| NASDAQ      Telecommunications |   |   | -8.34 | % |   |   | 30.56 | % |   |   | 10.77 | % |   |   | -41.84 | % |   |   | 39.02 | % |

| INDEXED      RETURNS           |   |
|--------------------------------|--------|
| Years      Ended               |   |
|                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                           |   | Base |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                           |   | Period |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                           |   |   | 12/04 |   |   |   | 12/05 |   |   |   | 12/06 |   |   |   | 12/07 |   |   |   | 12/08 |   |   |   | 12/09 |   |
|                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| HickoryTech      Corporation   |   |   | 100.00 |   |   |   | 77.66 |   |   |   | 74.87 |   |   |   | 103.45 |   |   |   | 64.45 |   |   |   | 112.21 |   |
| Russell      2000              |   |   | 100.00 |   |   |   | 104.55 |   |   |   | 123.76 |   |   |   | 121.82 |   |   |   | 80.66 |   |   |   | 102.58 |   |
| NASDAQ      Telecommunications |   |   | 100.00 |   |   |   | 91.66 |   |   |   | 119.67 |   |   |   | 132.55 |   |   |   | 77.09 |   |   |   | 107.17 |   |

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Item 6

| (Dollars      in thousands except share and per share amounts)          |   |   |       |   |   |   |       |   |   |   |
|-------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|
|                                                                    |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |
| Statement      of Operations Data:                                      |   | 2009   |       |   | 2008   |   |       | 2007   |   |   | 2006 |   |   | 2005 |   |
| Operating      revenue                                                  |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |
|   Enventis      Sector (A)                                    |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |
|     Equipment      revenue                          |   | $      | 27,857     |   |   | $      | 43,514     |   |   | $      | 51,046 |   |   | $ | 36,191 |   |   | $ | - |   |
|     Services      revenue                           |   |   | 40,826     |   |   |   | 36,462     |   |   |   | 28,756 |   |   |   | 21,814 |   |   |   | - |   |
|   Total      Enventis Sector                                  |   |   | 68,683     |   |   |   | 79,976     |   |   |   | 79,802 |   |   |   | 58,005 |   |   |   | - |   |
|   Telecom      Sector (B)                                     |   |   | 70,419     |   |   |   | 73,199     |   |   |   | 76,847 |   |   |   | 74,896 |   |   |   | 77,922 |   |
| Total      revenue (I)                                                  |   | $      | 139,102    |   |   | $      | 153,175    |   |   | $      | 156,649 |   |   | $ | 132,901 |   |   | $ | 77,922 |   |
|                                                                    |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      from continuing operations                                  |   | $      | 11,273     |   |   | $      | 8,029      |   |   | $      | 8,635 |   |   | $ | 5,235 |   |   | $ | 8,566 |   |
|                                                                    |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| EBITDA      from continuing operations (C)(I)                           |   | $      | 39,867     |   |   | $      | 40,925     |   |   | $      | 42,471 |   |   | $ | 34,090 |   |   | $ | 34,011 |   |
|                                                                    |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Per      Share Data:                                                    |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Basic      EPS - continuing operations                      |   | $      | 0.86       |   |   | $      | 0.61       |   |   | $      | 0.65 |   |   | $ | 0.40 |   |   | $ | 0.65 |   |
|   Basic      EPS - discontinued operations                    |   |   | -          |   |   |   | -          |   |   |   | - |   |   |   | (0.23 | ) |   |   | - |   |
|                                                                    |   | $      | 0.86       |   |   | $      | 0.61       |   |   | $      | 0.65 |   |   | $ | 0.17 |   |   | $ | 0.65 |   |
|                                                                    |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Diluted      EPS - continuing operations                    |   | $      | 0.86       |   |   | $      | 0.61       |   |   | $      | 0.65 |   |   | $ | 0.40 |   |   | $ | 0.65 |   |
|   Diluted      EPS - discontinued operations                  |   |   | -          |   |   |   | -          |   |   |   | - |   |   |   | (0.23 | ) |   |   | - |   |
|                                                                    |   | $      | 0.86       |   |   | $      | 0.61       |   |   | $      | 0.65 |   |   | $ | 0.17 |   |   | $ | 0.65 |   |
|                                                                    |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Dividends      per share                                    |   | $      | 0.52       |   |   | $      | 0.49       |   |   | $      | 0.48 |   |   | $ | 0.48 |   |   | $ | 0.48 |   |
|                                                                    |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      Sheet Data:                                                |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Total      assets (I)                                       |   | $      | 222,483    |   |   | $      | 225,508    |   |   | $      | 227,495 |   |   | $ | 226,900 |   |   | $ | 216,834 |   |
|   Shareholders’      equity (D)                         |   | $      | 34,546     |   |   | $      | 29,749     |   |   | $      | 31,932 |   |   | $ | 30,086 |   |   | $ | 35,009 |   |
|   Current      maturites of long-term obligations             |   | $      | 620        |   |   | $      | 1,621      |   |   | $      | 731 |   |   | $ | 1,560 |   |   | $ | 1,778 |   |
|   Long-term      debt                                         |   |   | 119,871    |   |   |   | 125,384    |   |   |   | 128,475 |   |   |   | 141,529 |   |   |   | 140,980 |   |
|   Total      debt, long-term and current                      |   | $      | 120,491    |   |   | $      | 127,005    |   |   | $      | 129,206 |   |   | $ | 143,089 |   |   | $ | 142,758 |   |
|                                                                    |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Debt      ratio  (E)                              |   |   | 77.7       | %      |   |   | 81.0       | %      |   |   | 80.2 | % |   |   | 82.6 | % |   |   | 80.3 | % |
|                                                                    |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Telecom      Sector Customer Data:                                      |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Business      access lines    |   |   | 25,133     |   |   |   | 25,274     |   |   |   | 27,403 |   |   |   | 27,014 |   |   |   | 27,145 |   |
|        Residential      access lines |   |   | 30,197     |   |   |   | 33,757     |   |   |   | 37,428 |   |   |   | 41,029 |   |   |   | 42,945 |   |
|    Total      access lines                               |   |   | 55,330     |   |   |   | 59,031     |   |   |   | 64,831 |   |   |   | 68,043 |   |   |   | 70,090 |   |
|    Long      distance subscribers                        |   |   | 36,107     |   |   |   | 38,458     |   |   |   | 40,956 |   |   |   | 41,196 |   |   |   | 40,321 |   |
|    DSL      customers                                    |   |   | 19,346     |   |   |   | 18,696     |   |   |   | 17,427 |   |   |   | 15,724 |   |   |   | 13,022 |   |
|    Digital      TV customers                             |   |   | 9,663      |   |   |   | 8,368      |   |   |   | 6,487 |   |   |   | 4,632 |   |   |   | 2,766 |   |
|                                                                    |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      Data:                                                        |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Employees      (year end) (F)                               |   |   | 448        |   |   |   | 433        |   |   |   | 400 |   |   |   | 399 |   |   |   | 460 |   |
|   Capital      expenditures (I)                               |   | $      | 17,893     |   |   | $      | 17,691     |   |   | $      | 17,500 |   |   | $ | 21,058 |   |   | $ | 19,434 |   |
|   Shares      outstanding (year end)                          |   |   | 13,100,568 |   |   |   | 12,992,376 |   |   |   | 13,284,903 |   |   |   | 13,207,970 |   |   |   | 13,124,928 |   |
|   Share      price (G) (year end)                             |   | $      | 8.83       |   |   | $      | 5.44       |   |   | $      | 9.32 |   |   | $ | 7.15 |   |   | $ | 7.89 |   |
|   Shareholders                                                |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Registered                                      |   |   | 1,345      |   |   |   | 1,394      |   |   |   | 1,430 |   |   |   | 1,470 |   |   |   | 1,511 |   |
|     Beneficial      owners (H)                      |   |   | 1,925      |   |   |   | 1,834      |   |   |   | 1,778 |   |   |   | 1,792 |   |   |   | 1,701 |   |
|   Total      shareholders                                     |   |   | 3,270      |   |   |   | 3,228      |   |   |   | 3,208 |   |   |   | 3,262 |   |   |   | 3,212 |   |

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| (A)   | HickoryTech      acquired Enventis on December 30,2005. |
|-----------------|---------------------------------------------------------|

| (B)   | Operating      revenue for NIBI, which prior to 2006 had been reported in the Information      Solutions Sector, has been recast for all years presented to consolidate      our reporting for similar operations for all years presented. Revenue is      now being reported as part of the Telecom  Sector. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (C)   | Management      believes that Earnings before Interest, Taxes, Depreciation and      Amortization, as defined in our debt agreement (“EBITDA”), a non-GAAP      financial measure, is an important financial metric as it represents our      ability to generate cash flow and is helpful when evaluating our      performance. A reconciliation of net income to EBITDA from continuing      operations is found in the tablebelow. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (D)   | Shareholders’      Equity at December 31, 2006 includes the impact of following the      guidelines described in ASC Topic 715 – Compensation—Retirement Benefits      which required recognizing the funded status of our post-retirement      benefit plans on the consolidated balance sheet. Please refer to Note 10      to the Notes to the Consolidated Financial Statements for further      information on our post-retirement benefit  plans. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (E)   | Debt      Ratio = Total Debt / (Total Debt + Shareholders’ Equity as of December      31). |
|-----------------|--------------------------------------------------------------------------------------------------|

| (F)   | All      employee counts reflect actual employee counts at year-end. No numbers      prior to 2006 have been restated for the discontinued Enterprise Solutions      operations. The Enventis acquisition in 2005 added 75 employees. The      Enterprise Solutions sale in 2006 reduced employee counts by 64 employees.      Our CP Telecom acquisition in 2009 added 35  employees. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (G)   | Share      price is the last day closingprice. |
|-----------------|------------------------------------------------|

| (H)   | The      number of beneficial shareholders is the approximate number of company      registrations in street nameaccounts. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------|

| (I)   | We      sold Collins Communications, Inc. on December 31, 2006. Operating results      which had previously been reported in the Enterprise Solutions Sector and      the effect of the sale transaction are reflected as “discontinued      operations.” Revenue, EBITDA, total assets and capital expenditures do not      include Enterprise Solutionsoperations. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                     |   | 2009   |   |   | 2008   |   |   | 2007   |   |   | 2006   |   |   | 2005   |   |
|----------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Net      Income                                          |   | $      | 11,273 |   |   | $      | 8,029  |   |   | $      | 8,611  |   |   | $      | 2,268  |   |   | $ | 8,529 |   |
| Add:                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Income      tax                  |   |   | 499    |   |   |   | 5,420  |   |   |   | 6,711  |   |   |   | 3,372  |   |   |   | 5,646 |   |
|     Interest      expense            |   |   | 6,918  |   |   |   | 6,870  |   |   |   | 8,121  |   |   |   | 7,362  |   |   |   | 4,363 |   |
|     Depreciation                     |   |   | 20,176 |   |   |   | 19,479 |   |   |   | 17,847 |   |   |   | 16,949 |   |   |   | 14,943 |   |
|     Amortization                     |   |   | 1,001  |   |   |   | 1,127  |   |   |   | 1,157  |   |   |   | 1,172  |   |   |   | 493 |   |
|     Discontinued      operations (I) |   |   | -      |   |   |   | -      |   |   |   | 24     |   |   |   | 2,967  |   |   |   | 37 |   |
| EBITDA      from continuing operations                   |   | $      | 39,867 |   |   | $      | 40,925 |   |   | $      | 42,471 |   |   | $      | 34,090 |   |   | $ | 34,011 |   |

Item 7

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| ·   | Net      income in 2009 increased $3,244,000 or 40.4% compared to 2008. A reduction      of accrued income taxes, which related to the expiration of a statute of      limitations, added $4,454,000 to net income in 2009.  Without      the benefit of this income tax reduction, net income would have been      $6,819,000, down $1,210,000 or 15.1% in 2009 compared to    2008. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      realized 29.8% growth in our Enventis fiber and data services revenue in      2009 continuing the double-digit revenue growth that we have experienced      within this product line during the past three years. CP Telecom      operations have been integrated into this product line and caused 15.8% of      the revenue growth.  Organic revenue growth for this product      line was 14.0% in 2009 compared to2008. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Operating      results from our Enventis equipment and services product line were      adversely impacted by the nationwide economic conditions in 2009. Revenue      from this product line declined by $18,465,000 or 33.0% in      2009. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Telecom      Sector operating income increased by 4.1% in 2009 compared to 2008.      Broadband growth and the positive impact of cost-reduction initiatives      helped offset our continued and expected decline in local service and      access revenues providing stable cash flows for our    company. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our      cash position remained strong. Despite fully funding our CP Telecom      acquisition, reducing our long-term and current portions of our debt      balance by $6,514,000, maintaining capital expenditure levels and      supporting new growth initiatives, our year-end cash balance increased by      $794,000 or 48.8% from 2008 to2009. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | 2008      net income decreased $582,000 or 6.8% compared to 2007. Without the      non-recurring settlement from a switched access dispute with a large      interexchange carrier which increased net income by $1,134,000 in 2007,      net income would have increased $552,000 or 7.4% in 2008 compared to      2007. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our      strategic focus to grow recurring services revenue resulted in a 49.4%      growth in Enventis equipment services revenue and 17.7% growth in Enventis      fiber and data services revenue. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Enventis      Sector equipment revenue declined 14.8% in 2008, due primarily to the      widespread economic downturn experienced in the second half of 2008 which      has delayed customer purchases. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Telecom      Sector broadband services revenue grew 19.7% in 2008, illustrating the      results of our broadband strategy of providing multiple services over one      high-speed connection to the home. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In      2008, Telecom network access revenue continued a downward trend that began      in the third quarter of 2007. Network access revenue declined $5,033,000      or 16.3% in 2008. A switched access dispute with a large interexchange      carrier which resulted in non-recurring revenue of $1,890,000 in 2007      significantly impacts the year-over-year comparability. Without the impact      of the non-recurring access settlement, network access revenue would have      decreased by $3,143,000 or 10.8% in 2008. This decrease in revenue is      primarily due to access line losses combined with the decrease in      interstate access rates which went into effect on July 1,      2007. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      used cash flow from operations to reduce our outstanding long-term debt      balance by $2,201,000 in 2008 and invested $2,363,000 to repurchase and      retire our own capital stock. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ENVENTIS      SECTOR                                          |   |
|---------------------------------------------------------------|--------|
|                                                          |   |   |   |   |   |   |   |   |   |
|                                                          |   | For      Year Ended December 31 |   |
| (Dollars      in thousands)                                   |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| Operating      revenue before intersegment eliminations:      |   |   |   |   |   |   |   |   |   |
|                                                          |   |   |   |   |   |   |   |   |   |
| Operating      revenue                                        |   |   |   |   |   |   |   |   |   |
| Equipment                                                     |   | $ | 27,857 |   |   | $ | 43,514 |   |   | $ | 51,046 |   |
| Services                                                      |   |   | 9,579 |   |   |   | 12,387 |   |   |   | 8,292 |   |
|    Equipment      and Services                 |   |   | 37,436 |   |   |   | 55,901 |   |   |   | 59,338 |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Fiber      and Data                                           |   |   | 31,247 |   |   |   | 24,075 |   |   |   | 20,464 |   |
| Intersegment                                                  |   |   | 500 |   |   |   | 515 |   |   |   | 440 |   |
| Total      Enventis operating revenue                         |   | $ | 69,183 |   |   | $ | 80,491 |   |   | $ | 80,242 |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Enventis revenue before intersegment eliminations: |   |   |   |   |   |   |   |   |   |
|    Unaffiliated      customers                 |   | $ | 68,683 |   |   | $ | 79,976 |   |   | $ | 79,802 |   |
|    Intersegment                                |   |   | 500 |   |   |   | 515 |   |   |   | 440 |   |
|                                                          |   |   | 69,183 |   |   |   | 80,491 |   |   |   | 80,242 |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of sales                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|   (excluding      depreciation and amortization)    |   |   | 24,869 |   |   |   | 37,355 |   |   |   | 45,340 |   |
| Cost      of services                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|   (excluding      depreciation and amortization)    |   |   | 23,050 |   |   |   | 21,894 |   |   |   | 14,767 |   |
| Selling,      general and administrative expenses             |   |   | 10,224 |   |   |   | 9,801 |   |   |   | 9,476 |   |
| Depreciation      and amortization                            |   |   | 5,413 |   |   |   | 4,417 |   |   |   | 3,755 |   |
| Operating      income                                         |   | $ | 5,627 |   |   | $ | 7,024 |   |   | $ | 6,904 |   |
| Net      income                                               |   | $ | 3,362 |   |   | $ | 4,369 |   |   | $ | 4,074 |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital      expenditures                                     |   | $ | 8,738 |   |   | $ | 6,408 |   |   | $ | 5,928 |   |

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| ENVENTIS      PRODUCT LINE REPORTING                       |   |
|------------------------------------------------------------|--------|
|                                                       |   |   |   |   |   |   |
|                                                       |   | For      Year Ended December 31 |   |
|                                                       |   | Equipment      and Services |   |   | Fiber      and Data |   |
| (Dollars      in thousands)                                |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      revenue before intersegment eliminations:   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equipment                                                  |   | $ | 27,857 |   |   | $ | 43,514 |   |   | $ | 51,046 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Services                                                   |   |   | 9,579 |   |   |   | 12,387 |   |   |   | 8,292 |   |   |   | 31,247 |   |   |   | 24,075 |   |   |   | 20,464 |   |
| Intersegment                                               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 500 |   |   |   | 515 |   |   |   | 440 |   |
| Total      Enventis operating revenue                      |   | $ | 37,436 |   |   | $ | 55,901 |   |   | $ | 59,338 |   |   | $ | 31,747 |   |   | $ | 24,590 |   |   | $ | 20,904 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of sales                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   (excluding      depreciation and amortization) |   |   | 24,923 |   |   |   | 37,342 |   |   |   | 45,001 |   |   |   | (54 | ) |   |   | 13 |   |   |   | 339 |   |
| Cost      of services                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   (excluding      depreciation and amortization) |   |   | 7,082 |   |   |   | 10,102 |   |   |   | 4,539 |   |   |   | 15,968 |   |   |   | 11,792 |   |   |   | 10,228 |   |
| Selling,      general and administrative expenses          |   |   | 4,848 |   |   |   | 5,264 |   |   |   | 5,115 |   |   |   | 5,376 |   |   |   | 4,537 |   |   |   | 4,361 |   |
| Depreciation      and amortization                         |   |   | 414 |   |   |   | 515 |   |   |   | 494 |   |   |   | 4,999 |   |   |   | 3,902 |   |   |   | 3,261 |   |
| Operating      income                                      |   | $ | 169 |   |   | $ | 2,678 |   |   | $ | 4,189 |   |   | $ | 5,458 |   |   | $ | 4,346 |   |   | $ | 2,715 |   |
| Net      income                                            |   | $ | 122 |   |   | $ | 1,670 |   |   | $ | 2,478 |   |   | $ | 3,240 |   |   | $ | 2,699 |   |   | $ | 1,596 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital      expenditures                                  |   | $ | 528 |   |   | $ | 468 |   |   | $ | 587 |   |   | $ | 8,210 |   |   | $ | 5,940 |   |   | $ | 5,341 |   |

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| TELECOM SECTOR                                             |   |
|-----------------------------------------------------------------|--------|
|                                                            |   |   |   |   |   |   |   |   |   |
|                                                            |   | For      Year Ended December 31 |   |
| (Dollars      in thousands)                                     |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| Operating      revenue before intersegment eliminations         |   |   |   |   |   |   |   |   |   |
|                                                            |   |   |   |   |   |   |   |   |   |
| Operating      Revenue                                          |   |   |   |   |   |   |   |   |   |
|     Local      Service                      |   | $ | 15,322 |   |   | $ | 16,296 |   |   | $ | 17,089 |   |
|     Network      Access                     |   |   | 24,157 |   |   |   | 25,859 |   |   |   | 30,892 |   |
|     Long      Distance                      |   |   | 3,791 |   |   |   | 4,563 |   |   |   | 5,068 |   |
|     Broadband                               |   |   | 12,114 |   |   |   | 10,983 |   |   |   | 9,173 |   |
|     Internet                                |   |   | 4,975 |   |   |   | 4,723 |   |   |   | 4,612 |   |
|     Directory                               |   |   | 4,000 |   |   |   | 4,119 |   |   |   | 3,854 |   |
|     Bill      Processing                    |   |   | 3,351 |   |   |   | 3,325 |   |   |   | 2,474 |   |
|     Intersegment                            |   |   | 1,217 |   |   |   | 644 |   |   |   | 467 |   |
|     Other                                   |   |   | 2,709 |   |   |   | 3,331 |   |   |   | 3,685 |   |
| Total      Telecom operating revenue                            |   | $ | 71,636 |   |   | $ | 73,843 |   |   | $ | 77,314 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Telecom revenue before intersegment eliminations     |   |   |   |   |   |   |   |   |   |   |   |   |
|    Unaffiliated      customers                   |   | $ | 70,419 |   |   | $ | 73,199 |   |   | $ | 76,847 |   |
|    Intersegment                                  |   |   | 1,217 |   |   |   | 644 |   |   |   | 467 |   |
|                                                            |   |   | 71,636 |   |   |   | 73,843 |   |   |   | 77,314 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of services (excluding depreciation and amortization) |   |   | 30,730 |   |   |   | 31,141 |   |   |   | 30,893 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling,      general and administrative expenses               |   |   | 11,639 |   |   |   | 13,521 |   |   |   | 13,407 |   |
| Depreciation      and amortization                              |   |   | 15,680 |   |   |   | 16,136 |   |   |   | 15,218 |   |
| Operating      income                                           |   | $ | 13,587 |   |   | $ | 13,045 |   |   | $ | 17,796 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                                                 |   | $ | 8,068 |   |   | $ | 8,104 |   |   | $ | 10,460 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital      expenditures                                       |   | $ | 9,068 |   |   | $ | 11,102 |   |   | $ | 11,489 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Key metrics                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|     Business      access lines              |   |   | 25,133 |   |   |   | 25,274 |   |   |   | 27,403 |   |
|     Residential      access lines           |   |   | 30,197 |   |   |   | 33,757 |   |   |   | 37,428 |   |
| Total      access lines                                         |   |   | 55,330 |   |   |   | 59,031 |   |   |   | 64,831 |   |
| Long      distance customers                                    |   |   | 36,107 |   |   |   | 38,458 |   |   |   | 40,956 |   |
| Digital      Subscriber Line customers                          |   |   | 19,346 |   |   |   | 18,696 |   |   |   | 17,427 |   |
| Digital      TV customers                                       |   |   | 9,663 |   |   |   | 8,368 |   |   |   | 6,487 |   |

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| (Dollars      in thousands)                    |   | For      Year Ended December 31 |    |
|------------------------------------------------|--------|---------------------------------|---------|
|                                           |   | 2009                            |    |   | 2008 |   |   | 2007 |   |
| Net      cash provided by (used in):           |   |                            |    |   |   |   |   |   |   |
|    Operating      activities    |   | $                               | 42,254  |   |   | $ | 33,770 |   |   | $ | 30,731 |   |
|    Investing      activities    |   |                            | (24,518 | ) |   |   | (17,271 | ) |   |   | (17,400 | ) |
|    Financing      activities    |   |                            | (16,942 | ) |   |   | (15,044 | ) |   |   | (13,220 | ) |
|    Discontinued      operations |   |                            | -       |   |   |   | - |   |   |   | (24 | ) |
| Increase      in cash and cash equivalents     |   | $                               | 794     |   |   | $ | 1,455 |   |   | $ | 87 |   |

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| (Dollars      in thousands)             |   |   |    |   |   |   |   |              |   |   |              |   |   |                |   |
|-----------------------------------------|--------|--------|---------|--------|--------|--------|--------|-------------------|--------|--------|-------------------|--------|--------|---------------------|--------|
| Contractual      Obligations            |   | Total  |    |   | 2010   |   |   | 2011      to 2012 |   |   | 2013      to 2014 |   |   | 2015      and after |   |
| Long-term      debt                     |   | $      | 119,900 |   |   | $      | 200    |              |   | $      | 101,100           |   |   | $                   | 18,600 |   |   | $ | - |   |
| Interest      on long-term debt (A)     |   |   | 12,387  |   |   |   | 4,868  |              |   |   | 7,086             |   |   |                | 433    |   |   |   | - |   |
| Capital      lease obligations          |   |   | 591     |   |   |   | 420    |              |   |   | 171               |   |   |                | -      |   |   |   | - |   |
| Interest      on capital leases         |   |   | 53      |   |   |   | 44     |              |   |   | 9                 |   |   |                | -      |   |   |   | - |   |
| Purchase      obligations (B)           |   |   | 1,139   |   |   |   | 1,139  |              |   |   | -                 |   |   |                | -      |   |   |   | - |   |
| Pension      benefit obligations (C)    |   |   | 2,636   |   |   |   | 256    |              |   |   | 534               |   |   |                | 539    |   |   |   | 1,307 |   |
| Operating      leases                   |   |   | 4,669   |   |   |   | 1,300  |              |   |   | 1,511             |   |   |                | 1,072  |   |   |   | 786 |   |
| Total      contractual cash obligations |   | $      | 141,375 |   |   | $      | 8,227  |              |   | $      | 110,411           |   |   | $                   | 20,644 |   |   | $ | 2,093 |   |

| (A)   | Interest      on long-term debt is estimated using rates in effect as of December 31,      2009. We use interest rate swap agreements to manage our exposure to      interest rate movements on a portion of our variable rate debt obligations      (see Note 12 to the Notes to the Consolidated Financial      Statements). |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B)   | Purchase      obligations consist primarily of commitments incurred for construction      projects. |
|-----------------|-----------------------------------------------------------------------------------------------------|

| (C)   | Pension      benefit obligations consist of the expected net premium payment and life      insurance benefits to be paid relative to our post-retirement benefit      plan. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·    | In      instances where we sell Cisco voice and data communications equipment with      no installation obligations (equipment only sales), all warranty      obligations reside with Cisco. Therefore, revenue is recognized when the      equipment is delivered to the customer site. In instances where we sell      Cisco voice and data communications equipment with installation      obligations, terms of the agreements typically provide for installation      services without customer-specific acceptance provisions, but sometimes      may provide customer-specific acceptance provisions. For arrangements with      no customer-specific acceptance arrangements, we recognize revenue when      title passes to the customer. For contracts with customer specific      acceptance provisions, we defer revenue recognition until the receipt of      formal customer acceptance, assuming that all other revenue recognition      criteria have been met. When a sale involves multiple elements, revenue is      allocated to each respective element in accordance with ASC Topic 605,      Subtopic 25 – Multiple Element Arrangements, which prescribes accounting      by a vendor for arrangements under which it will perform multiple      revenue-generating activities. ASC 605-25 provides guidance on how an      arrangement involving multiple deliverables should be divided into      separate units of accounting, but does not change otherwise applicable      revenue recognition criteria. In the event that we enter into a multiple      element arrangement and there are undeliverable elements as of the balance      sheet date, we assess whether the elements are separable and have      determinable fair values in assessing the amount of revenue to record.      Allocation of revenue to elements of the arrangement is based on fair      value of the element being sold on a stand-alone  basis. |
|--------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | When      we sell equipment to customers, we also typically sell Cisco support      contracts (“SmartNet” contracts). These support contracts state that Cisco      will provide all support services, product warranty and updates directly      to the customer. We have no service obligations under these types of      contracts. The earnings process has culminated for us upon the sale of the      contract and therefore revenue is recognized immediately. Further, we are      serving in an agency relationship to the customer for the sale of the      contract and therefore the revenue is recorded net of the cost that we pay      Cisco for the contract. Support services also include “24x7” support of a      customer’s voice and data systems. Most of these contracts are billed on a      time and materials basis and revenue is recognized either as services are      provided or over the term of the contract. Support services also include      professional support services, which are typically sold on a time and      materials basis, but may be sold as a pre-paid block of time. This revenue      is recognized as the services are provided (deferred and recognized as      utilized if pre-paid). In the event that these services are part of a      multiple element arrangement, the fair value of the services are measured      and deferred in accordance with ASC 605-25 mentioned above. Allocation of      revenue to elements of the arrangement is based on fair value of the      element being sold on a stand-alonebasis. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Fiber      and data services are sold through a contractual flat monthly fee. The      revenue generated by these services is typically billed one month in      advance and is deferred until the appropriate month of      recognition. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      also manage customer voice and/or data services. Under these arrangements,      we bill either a flat monthly fee or a fee that is variable based on the      number of “seats” that the customer has. This revenue is recognized on a      monthly basis as the services areprovided. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| HICKORY      TECH CORPORATION                                                                    |   |
|--------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED      STATEMENTS OF OPERATIONS                                                       |   |
| Years      Ended December 31                                                                     |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |
|                                                                                             |   |
| (Dollars      in thousands, except share and per share amounts)                                  |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| Operating      Revenue:                                                                          |   |   |   |   |   |   |   |   |   |
| Enventis      Sector                                                                             |   |   |   |   |   |   |   |   |   |
|    Equipment                                                                      |   | $ | 27,857 |   |   | $ | 43,514 |   |   | $ | 51,046 |   |
|     Services                                                                 |   |   | 40,826 |   |   |   | 36,462 |   |   |   | 28,756 |   |
| Total      Enventis Sector                                                                       |   |   | 68,683 |   |   |   | 79,976 |   |   |   | 79,802 |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|          Telecom Sector                                                           |   |   | 70,419 |   |   |   | 73,199 |   |   |   | 76,847 |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      operating revenue                                                                     |   |   | 139,102 |   |   |   | 153,175 |   |   |   | 156,649 |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Costs      and expenses:                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|             Cost of sales, excluding depreciation and amortization |   |   | 24,869 |   |   |   | 37,355 |   |   |   | 45,340 |   |
|    Cost      of services, exluding depreciation and amortization                  |   |   | 52,211 |   |   |   | 52,004 |   |   |   | 44,881 |   |
|         Selling, general and administrative expenses                                   |   |   | 22,260 |   |   |   | 22,984 |   |   |   | 24,244 |   |
| Depreciation                                                                                     |   |   | 20,176 |   |   |   | 19,479 |   |   |   | 17,847 |   |
|         Amortization of intangibles                                                    |   |   | 1,001 |   |   |   | 1,127 |   |   |   | 1,157 |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      costs and expenses                                                                    |   |   | 120,517 |   |   |   | 132,949 |   |   |   | 133,469 |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      income                                                                            |   |   | 18,585 |   |   |   | 20,226 |   |   |   | 23,180 |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      income and expense:                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Interest      and other income                                                 |   |   | 105 |   |   |   | 93 |   |   |   | 287 |   |
|    Interest      expense                                                          |   |   | (6,918 | ) |   |   | (6,870 | ) |   |   | (8,121 | ) |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      other (expense)                                                                       |   |   | (6,813 | ) |   |   | (6,777 | ) |   |   | (7,834 | ) |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      from continuing operations before income taxes                                       |   |   | 11,772 |   |   |   | 13,449 |   |   |   | 15,346 |   |
| Income      tax provision                                                                        |   |   | 499 |   |   |   | 5,420 |   |   |   | 6,711 |   |
| Income      from continuing operations                                                           |   |   | 11,273 |   |   |   | 8,029 |   |   |   | 8,635 |   |
| Discontinued      operations (Note 3)                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|         (Loss) from operations of discontinued component                               |   |   | - |   |   |   | - |   |   |   | (40 | ) |
|    Income      tax benefit                                                        |   |   | - |   |   |   | - |   |   |   | (16 | ) |
| (Loss)      on discontinued operations                                                           |   |   | - |   |   |   | - |   |   |   | (24 | ) |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                                                                                  |   | $ | 11,273 |   |   | $ | 8,029 |   |   | $ | 8,611 |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      earnings per share                                                                    |   | $ | 0.86 |   |   | $ | 0.61 |   |   | $ | 0.65 |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average common shares outstanding                                                  |   |   | 13,061,266 |   |   |   | 13,248,731 |   |   |   | 13,258,369 |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted      earnings per share                                                                  |   | $ | 0.86 |   |   | $ | 0.61 |   |   | $ | 0.65 |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average common and equivalent shares outstanding                                   |   |   | 13,061,861 |   |   |   | 13,259,933 |   |   |   | 13,260,087 |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends      per share                                                                         |   | $ | 0.52 |   |   | $ | 0.49 |   |   | $ | 0.48 |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| The      accompanying notes are an integral part of the consolidated financial      statements.  |   |

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| HICKORY TECH      CORPORATION                                                                                           |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED      BALANCE SHEETS                                                                                        |   |
| As      of December 31                                                                                                  |   |
|                                                                                                                    |   |   |   |   |   |   |
| (Dollars      in thousands except share and per share amounts)                                                          |   | 2009 |   |   | 2008 |   |
|                                                                                                                    |   |   |   |   |   |   |
| ASSETS                                                                                                                  |   |
| Current      assets:                                                                                                    |   |   |   |   |   |   |
|          Cash and cash equivalents                                                                       |   | $ | 2,420 |   |   | $ | 1,626 |   |
|          Receivables, net of allowance for doubtful accounts of $643 and      $905                       |   |   | 19,729 |   |   |   | 26,292 |   |
|          Inventories                                                                                     |   |   | 5,069 |   |   |   | 8,674 |   |
|          Income taxes receivable                                                                         |   |   | - |   |   |   | 566 |   |
|          Deferred income taxes, net                                                                      |   |   | 2,423 |   |   |   | 2,064 |   |
|          Prepaid expenses                                                                                |   |   | 1,751 |   |   |   | 1,409 |   |
|          Other                                                                                           |   |   | 1,039 |   |   |   | 1,114 |   |
|            Total current assets                                                                |   |   | 32,431 |   |   |   | 41,745 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |
| Investments                                                                                                             |   |   | 4,306 |   |   |   | 4,066 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |
| Property,      plant and equipment                                                                                      |   |   | 357,607 |   |   |   | 338,510 |   |
|          Accumulated depreciation                                                                        |   |   | (204,129 | ) |   |   | (187,157 | ) |
|            Property, plant and equipment, net                                                  |   |   | 153,478 |   |   |   | 151,353 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |
| Other      assets:                                                                                                      |   |   |   |   |   |   |   |   |
|          Goodwill                                                                                        |   |   | 27,423 |   |   |   | 25,239 |   |
|          Intangible assets, net                                                                          |   |   | 3,025 |   |   |   | 856 |   |
|          Deferred costs and other                                                                        |   |   | 1,820 |   |   |   | 2,249 |   |
|            Total other assets                                                                  |   |   | 32,268 |   |   |   | 28,344 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |
| Total      assets                                                                                                       |   | $ | 222,483 |   |   | $ | 225,508 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |
| LIABILITIES      & SHAREHOLDERS' EQUITY                                                                             |   |
| Current      liabilities:                                                                                               |   |   |   |   |   |   |   |   |
|          Extended term payable                                                                           |   | $ | 6,788 |   |   | $ | 10,474 |   |
|          Accounts payable                                                                                |   |   | 2,883 |   |   |   | 3,133 |   |
|          Accrued expenses and other                                                                      |   |   | 7,792 |   |   |   | 8,001 |   |
|          Accrued income taxes                                                                            |   |   | 642 |   |   |   | - |   |
|          Deferred revenue                                                                                |   |   | 6,016 |   |   |   | 6,205 |   |
|          Current maturities of long-term obligations                                                     |   |   | 620 |   |   |   | 1,621 |   |
|            Total current liabilities                                                           |   |   | 24,741 |   |   |   | 29,434 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |
| Long-term      liabilities:                                                                                             |   |   |   |   |   |   |   |   |
|          Debt obligations, net of current maturities                                                     |   |   | 119,871 |   |   |   | 125,384 |   |
|          Financial derivative instruments                                                                |   |   | 1,908 |   |   |   | 3,286 |   |
|          Accrued income taxes                                                                            |   |   | 3,218 |   |   |   | 7,517 |   |
|          Deferred income taxes                                                                           |   |   | 21,895 |   |   |   | 18,282 |   |
|          Deferred revenue                                                                                |   |   | 2,095 |   |   |   | 1,646 |   |
|          Accrued employee benefits and deferred compensation                                             |   |   | 14,209 |   |   |   | 10,210 |   |
|            Total long-term liabilities                                                         |   |   | 163,196 |   |   |   | 166,325 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |
|               Total liabilities                                                 |   |   | 187,937 |   |   |   | 195,759 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |
| Commitments      and contingencies                                                                                      |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |
| Shareholders'      equity:                                                                                              |   |   |   |   |   |   |   |   |
|          Common stock, no par value, $.10 stated value                                                   |   |   |   |   |   |   |   |   |
|             Shares authorized: 100,000,000                                                |   |   |   |   |   |   |   |   |
|             Shares issued and outstanding: 13,100,568 in 2009 and 12,992,376 in      2008 |   |   | 1,310 |   |   |   | 1,299 |   |
|          Additional paid-in capital                                                                      |   |   | 12,975 |   |   |   | 11,504 |   |
|          Retained earnings                                                                               |   |   | 24,687 |   |   |   | 20,199 |   |
|          Accumulated other comprehensive (loss)                                                          |   |   | (4,426 | ) |   |   | (3,253 | ) |
|               Total shareholders' equity                                        |   |   | 34,546 |   |   |   | 29,749 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |
| Total      liabilities and shareholders' equity                                                                         |   | $ | 222,483 |   |   | $ | 225,508 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |
| The      accompanying notes are an integral part of the consolidated financial      statements.                         |   |

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| HICKORY      TECH CORPORATION                                                                                             |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED      STATEMENTS OF CASH FLOWS                                                                                |   |
| Years      Ended December 31                                                                                              |   |
|                                                                                                                      |   |   |   |   |   |   |   |   |   |
|                                                                                                                      |   |   |   |   |   |   |   |   |   |
| (Dollars in thousands)                                                                                          |   |   |   |   |   |   |   |   |   |
|                                                                                                                      |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| OPERATING      ACTIVITIES:                                                                                                |   |   |   |   |   |   |   |   |   |
| Net      income                                                                                                           |   | $ | 11,273 |   |   | $ | 8,029 |   |   | $ | 8,611 |   |
| Adjustments      to reconcile net income to net                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|   cash      provided by operating activities:                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Loss      from discontinued operations                                                            |   |   | - |   |   |   | - |   |   |   | 24 |   |
|     Depreciation      and amortization                                                                |   |   | 21,177 |   |   |   | 20,606 |   |   |   | 19,004 |   |
|     Amortization      of gain on sale of financial derivative instrument                              |   |   | - |   |   |   | (664 | ) |   |   | (1,272 | ) |
|     Deferred      income tax provision                                                                |   |   | 1,968 |   |   |   | 3,660 |   |   |   | 1,523 |   |
|     Stock-based      compensation                                                                     |   |   | 1,021 |   |   |   | 415 |   |   |   | 688 |   |
|     Accrued      patronage refunds                                                                    |   |   | (512 | ) |   |   | (563 | ) |   |   | (230 | ) |
|     Other                                                                                             |   |   | 867 |   |   |   | 731 |   |   |   | 889 |   |
|     Changes      in operating assets and liabilities net of effects of      acquisition:              |   |   |   |   |   |   |   |   |   |   |   |   |
|         Receivables                                                               |   |   | 6,779 |   |   |   | 1,780 |   |   |   | (7,814 | ) |
|         Prepaids                                                                  |   |   | (125 | ) |   |   | 304 |   |   |   | 190 |   |
|         Inventories                                                               |   |   | 3,605 |   |   |   | (1,620 | ) |   |   | 4,239 |   |
|         Accounts      payable and accrued expenses                                |   |   | (1,696 | ) |   |   | (1,135 | ) |   |   | 2,190 |   |
|         Deferred      revenue, billings and deposits                              |   |   | 195 |   |   |   | 1,165 |   |   |   | 601 |   |
|         Income      taxes                                                         |   |   | (3,091 | ) |   |   | 218 |   |   |   | 1,237 |   |
|         Other                                                                     |   |   | 793 |   |   |   | 844 |   |   |   | 851 |   |
| Net      cash provided by operating activities                                                                            |   |   | 42,254 |   |   |   | 33,770 |   |   |   | 30,731 |   |
|                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| INVESTING      ACTIVITIES:                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Additions      to property, plant and equipment                                                                           |   |   | (17,893 | ) |   |   | (17,691 | ) |   |   | (17,500 | ) |
| Acquisitions                                                                                                              |   |   | (6,625 | ) |   |   | - |   |   |   | - |   |
| Other                                                                                                                     |   |   | - |   |   |   | 420 |   |   |   | 100 |   |
| Net      cash (used in) investing activities                                                                              |   |   | (24,518 | ) |   |   | (17,271 | ) |   |   | (17,400 | ) |
|                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| FINANCING      ACTIVITIES:                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      change in extended term payables arrangement                                                                     |   |   | (3,687 | ) |   |   | (3,969 | ) |   |   | 6,724 |   |
| Change      in cash overdraft                                                                                             |   |   | - |   |   |   | - |   |   |   | (1,475 | ) |
| Borrowings      on credit facility                                                                                        |   |   | - |   |   |   | 34,500 |   |   |   | 15,500 |   |
| Payments      on credit facility and capital lease obligations                                                            |   |   | (6,930 | ) |   |   | (37,132 | ) |   |   | (29,906 | ) |
| Proceeds      from the sale of financial derivative instrument                                                            |   |   | - |   |   |   | - |   |   |   | 1,936 |   |
| Proceeds      from issuance of common stock                                                                               |   |   | 460 |   |   |   | 412 |   |   |   | 358 |   |
| Dividends      paid                                                                                                       |   |   | (6,785 | ) |   |   | (6,492 | ) |   |   | (6,357 | ) |
| Stock      repurchase                                                                                                     |   |   | - |   |   |   | (2,363 | ) |   |   | - |   |
| Net      cash (used in) financing activities                                                                              |   |   | (16,942 | ) |   |   | (15,044 | ) |   |   | (13,220 | ) |
|                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| DISCONTINUED      OPERATIONS:                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      cash (used in) operating activities                                                                              |   |   | - |   |   |   | - |   |   |   | (24 | ) |
| Net      cash (used in) discontinued operations                                                                           |   |   | - |   |   |   | - |   |   |   | (24 | ) |
|                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      increase in cash and cash equivalents                                                                            |   |   | 794 |   |   |   | 1,455 |   |   |   | 87 |   |
| Cash      and cash equivalents at beginning of the year                                                                   |   |   | 1,626 |   |   |   | 171 |   |   |   | 84 |   |
| Cash      and cash equivalents at the end of the year                                                                     |   | $ | 2,420 |   |   | $ | 1,626 |   |   | $ | 171 |   |
|                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental      disclosure of cash flow information:                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|          Cash paid for interest                                                                            |   | $ | 7,094 |   |   | $ | 7,962 |   |   | $ | 9,319 |   |
|          Net cash paid for income taxes                                                                    |   | $ | 1,622 |   |   | $ | 1,542 |   |   | $ | 3,935 |   |
| Non-cash      investing activities:                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|          Property, plant and equipment acquired with capital leases                                        |   | $ | 417 |   |   | $ | 433 |   |   | $ | 522 |   |
|          Change in other comprehensive income from financial derivatives and      post-retirement benefits |   | $ | 1,173 |   |   | $ | 2,186 |   |   | $ | 1,517 |   |
|                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| The      accompanying notes are an integral part of the consolidated financial      statements.                           |   |

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| HICKORY      TECH CORPORATION                                                                   |   |
|-------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED      STATEMENTS OF SHAREHOLDERS' EQUITY AND COMPREHENSIVEINCOME                    |   |
| Years      Ended December 31                                                                    |   |
| (Dollars      in thousands)                                                                     |   |
|                                                                                            |   | Common      Stock |   |   | Additional Paid-In |   |   | Retained |   |   | Accumulated      Other Comprehensive |   |   | Total      Shareholders' |   |   | Total      Comprehensive |   |
|                                                                                            |   | Shares |   |   | Amount |   |   | Capital |   |   | Earnings |   |   | Income      (Loss) |   |   | Equity |   |   | Income |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,      December 31, 2006                                                                 |   |   | 13,207,970 |   |   | $ | 1,321 |   |   | $ | 9,992 |   |   | $ | 18,323 |   |   | $ | 450 |   |   | $ | 30,086 |   |   |   |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock      Award Plans                                                                          |   |   | 27,590 |   |   |   | 3 |   |   |   | 196 |   |   |   |   |   |   |   |   |   |   |   | 199 |   |   |   |   |
| Employee      Stock Purchase Plan                                                               |   |   | 13,792 |   |   |   | 1 |   |   |   | 275 |   |   |   |   |   |   |   |   |   |   |   | 276 |   |   |   |   |
| Directors’      Stock Retainer Plan                                                       |   |   | 7,586 |   |   |   | 1 |   |   |   | 232 |   |   |   |   |   |   |   |   |   |   |   | 233 |   |   |   |   |
| Dividend      Reinvestment Plan                                                                 |   |   | 27,965 |   |   |   | 3 |   |   |   | 233 |   |   |   |   |   |   |   |   |   |   |   | 236 |   |   |   |   |
| Stock      based compensation                                                                   |   |   |   |   |   |   |   |   |   |   | 103 |   |   |   |   |   |   |   |   |   |   |   | 103 |   |   |   |   |
| Net      Income                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 8,611 |   |   |   |   |   |   |   | 8,611 |   |   | $ | 8,611 |   |
| Dividends      Paid                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (6,357 | ) |   |   |   |   |   |   | (6,357 | ) |   |   |   |   |
| Adoption      of ASC 740                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 62 |   |   |   |   |   |   |   | 62 |   |   |   |   |   |
| Other      Comprehensive Loss,                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Net      of Income Taxes                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,517 | ) |   | $ | (1,517 | ) |   |   | (1,517 | ) |
| Total      Comprehensive Income                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 7,094 |   |
| Balance,      December 31, 2007                                                                 |   |   | 13,284,903 |   |   |   | 1,329 |   |   |   | 11,031 |   |   |   | 20,639 |   |   |   | (1,067 | ) |   |   | 31,932 |   |   |   |   |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock      Award Plans                                                                          |   |   | 10,493 |   |   |   | 1 |   |   |   | 110 |   |   |   |   |   |   |   |   |   |   |   | 111 |   |   |   |   |   |
| Employee      Stock Purchase Plan                                                               |   |   | 23,992 |   |   |   | 2 |   |   |   | 268 |   |   |   |   |   |   |   |   |   |   |   | 270 |   |   |   |   |   |
| Directors’      Stock Retainer Plan                                                       |   |   | 13,803 |   |   |   | 1 |   |   |   | 22 |   |   |   |   |   |   |   |   |   |   |   | 23 |   |   |   |   |   |
| Directors'      Incentive Stock Plan                                                            |   |   | 18,000 |   |   |   | 2 |   |   |   | 166 |   |   |   |   |   |   |   |   |   |   |   | 168 |   |   |   |   |   |
| Dividend      Reinvestment Plan                                                                 |   |   | 34,185 |   |   |   | 3 |   |   |   | 241 |   |   |   |   |   |   |   |   |   |   |   | 244 |   |   |   |   |   |
| Stock      Repurchase                                                                           |   |   | (393,000 | ) |   |   | (39 | ) |   |   | (347 | ) |   |   | (1,977 | ) |   |   |   |   |   |   | (2,363 | ) |   |   |   |   |
| Stock      based compensation                                                                   |   |   |   |   |   |   |   |   |   |   | 13 |   |   |   |   |   |   |   |   |   |   |   | 13 |   |   |   |   |   |
| Net      Income                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 8,029 |   |   |   |   |   |   |   | 8,029 |   |   |   | 8,029 |   |
| Dividends      Paid                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (6,492 | ) |   |   |   |   |   |   | (6,492 | ) |   |   |   |   |
| Other      Comprehensive Loss,                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |   |
|     Net      of Income Taxes                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (2,186 | ) |   |   | (2,186 | ) |   |   | (2,186 | ) |
| Total      Comprehensive Income                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 5,843 |   |
| Balance,      December 31, 2008                                                                 |   |   | 12,992,376 |   |   |   | 1,299 |   |   |   | 11,504 |   |   |   | 20,199 |   |   |   | (3,253 | ) |   |   | 29,749 |   |   |   |   |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock      Award Plans                                                                          |   |   | 16,303 |   |   |   | 2 |   |   |   | 914 |   |   |   |   |   |   |   |   |   |   |   | 916 |   |   |   |   |   |
| Employee      Stock Purchase Plan                                                               |   |   | 20,561 |   |   |   | 2 |   |   |   | 183 |   |   |   |   |   |   |   |   |   |   |   | 185 |   |   |   |   |   |
| Directors’      Stock Retainer Plan                                                       |   |   | 13,121 |   |   |   | 1 |   |   |   | - |   |   |   |   |   |   |   |   |   |   |   | 1 |   |   |   |   |   |
| Directors'      Incentive Stock Plan                                                            |   |   | 20,000 |   |   |   | 2 |   |   |   | 101 |   |   |   |   |   |   |   |   |   |   |   | 103 |   |   |   |   |   |
| Dividend      Reinvestment Plan                                                                 |   |   | 38,207 |   |   |   | 4 |   |   |   | 269 |   |   |   |   |   |   |   |   |   |   |   | 273 |   |   |   |   |   |
| Stock      based compensation                                                                   |   |   |   |   |   |   |   |   |   |   | 4 |   |   |   |   |   |   |   |   |   |   |   | 4 |   |   |   |   |   |
| Net      Income                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 11,273 |   |   |   |   |   |   |   | 11,273 |   |   | $ | 11,273 |   |
| Dividends      Paid                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (6,785 | ) |   |   |   |   |   |   | (6,785 | ) |   |   |   |   |
| Other      Comprehensive Loss,                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Net      of Income Taxes                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,173 | ) |   |   | (1,173 | ) |   |   | (1,173 | ) |
| Total      Comprehensive Income                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 10,100 |   |
| Balance,      December 31, 2009                                                                 |   |   | 13,100,568 |   |   | $ | 1,310 |   |   | $ | 12,975 |   |   | $ | 24,687 |   |   | $ | (4,426 | ) |   | $ | 34,546 |   |   |   |   |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The      accompanying notes are an integral part of the consolidated financial      statements. |   |

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| ·   | In      instances where we sell Cisco voice and data communications equipment with      no installation obligations (equipment only sales), all warranty      obligations reside with Cisco. Therefore, revenue is recognized when the      equipment is delivered to the customer site. In instances where we sell      Cisco voice and data communications equipment with installation      obligations, terms of the agreements typically provide for installation      services without customer-specific acceptance provisions, but sometimes      may provide customer-specific acceptance provisions. For arrangements with      no customer-specific acceptance arrangements, we recognize revenue when      title passes to the customer. For contracts with customer specific      acceptance provisions, we defer revenue recognition until the receipt of      formal customer acceptance, assuming that all other revenue recognition      criteria have been met. When a sale involves multiple elements, revenue is      allocated to each respective element in accordance with ASC Topic 605,      Subtopic 25 – Multiple Element Arrangements, which prescribes accounting      by a vendor for arrangements under which it will perform multiple      revenue-generating activities. ASC 605-25 provides guidance on how an      arrangement involving multiple deliverables should be divided into      separate units of accounting, but does not change otherwise applicable      revenue recognition criteria. In the event that we enter into a multiple      element arrangement and there are undeliverable elements as of the balance      sheet date, we assess whether the elements are separable and have      determinable fair values in assessing the amount of revenue to record.      Allocation of revenue to elements of the arrangement is based on fair      value of the element being sold on a stand-alone  basis. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | When      we sell equipment to customers, we also typically sell Cisco support      contracts (“SmartNet” contracts). These support contracts state that Cisco      will provide all support services, product warranty and updates directly      to the customer. Because we have no service obligations under these types      of contracts, the earnings process has culminated for us upon the sale of      the contract and therefore revenue is recognized immediately. Further, we      are serving in an agency relationship to the customer for the sale of the      contract and therefore the revenue is recorded net of the cost that we pay      Cisco for the contract. Support services also include “24x7” support of a      customer’s voice and data systems. Most of these contracts are billed on a      time and materials basis and revenue is recognized either as services are      provided or over the term of the contract. Support services also include      professional support services, which are typically sold on a time and      materials basis, but may be sold as a pre-paid block of time. This revenue      is recognized as the services are provided (deferred and recognized as      utilized if pre-paid). In the event that these services are part of a      multiple element arrangement, the fair value of the services are measured      and deferred in accordance with ASC 605-25 mentioned above. Allocation of      revenue to elements of the arrangement is based on fair value of the      element being sold on a stand-alonebasis. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Fiber      and data services are sold through a contractual flat monthly fee. The      revenue generated by these services is typically billed one month in      advance and is deferred until the appropriate month of      recognition. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      also manage customer voice and/or data services. Under these arrangements,      we bill either a flat monthly fee or a fee that is variable based on the      number of “seats” that the customer has. This revenue is recognized on a      monthly basis as the services areprovided. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (Dollars      in thousands)                                                                           |   | 2009   |     |   | 2008   |   |
|-------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
| Enventis      property and equipment (1)                                                              |   | $      | 53,942   |   |   | $      | 41,235 |   |
| Enventis      indefeasable rights of use                                                              |   |   | 5,394    |   |   |   | 5,394 |   |
| Telecom      property and equipment                                                                   |   |   | 283,770  |   |   |   | 278,138 |   |
| Other      property and equipment                                                                     |   |   | 14,501   |   |   |   | 13,743 |   |
|    Total                                                                               |   |   | 357,607  |   |   |   | 338,510 |   |
| Accumulated      depreciation                                                                         |   |   | (204,129 | )      |   |   | (187,157 | ) |
| Property,      plant, and equipment, net                                                              |   | $      | 153,478  |   |   | $      | 151,353 |   |
|                                                                                                  |   |   |     |   |   |   |   |   |
| (1)      Enventis property and equipment includes $3,986,000 of assets acquired      with CP Telecom. |   |

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| (Dollars      in thousands, except share and earnings per share amounts) |   | 2009   |       |   | 2008   |   |       | 2007   |   |
|--------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
|                                                                     |   |   |       |   |   |   |       |   |   |
| Net      Income                                                          |   | $      | 11,273     |   |   | $      | 8,029      |   |   | $ | 8,611 |   |
|                                                                     |   |   |       |   |   |   |       |   |   |   |   |   |
| Weighted      Average Shares Outstanding                                 |   |   | 13,061,266 |   |   |   | 13,248,731 |   |   |   | 13,258,369 |   |
| Stock      Options (dilutive only)                                       |   |   | 595        |   |   |   | 958        |   |   |   | 1,718 |   |
| Stock      Subscribed (ESPP)                                             |   |   | -          |   |   |   | 10,244     |   |   |   | - |   |
| Total      dilutive shares outstanding                                   |   |   | 13,061,861 |   |   |   | 13,259,933 |   |   |   | 13,260,087 |   |
|                                                                     |   |   |       |   |   |   |       |   |   |   |   |   |
| Earnings      per share:                                                 |   |   |       |   |   |   |       |   |   |   |   |   |
|     Basic                                            |   | $      | 0.86       |   |   | $      | 0.61       |   |   | $ | 0.65 |   |
|     Diluted                                          |   | $      | 0.86       |   |   | $      | 0.61       |   |   | $ | 0.65 |   |

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| (Dollars      in thousands)                                          |   | 2009   |   |
|----------------------------------------------------------------------|--------|--------|--------|
| Goodwill      as of December 31, 2008                                |   | $      | 25,239 |   |
| Goodwill      adjustments associated with the purchase of CP Telecom |   |   | 2,184  |   |
| Goodwill      as of December 31, 2009                                |   | $      | 27,423 |   |

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| (Dollars      in thousands)           |              |   | As      of December 31, 2009 |   |   | As      of December 31, 2008  |   |
|---------------------------------------|-------------------|--------|-----------------------------------|--------|--------|-------------------------------|--------|
|                                  | Useful      Lives |   | Gross      Carrying Amount        |   |   | Accumulated      Amortization |   |   | Gross      Carrying Amount |   |   | Accumulated      Amortization |   |
| Definite-lived      intangible assets |              |   |                              |   |   |                          |   |   |   |   |   |   |   |
| Customer      relationships           | 1 -      8 years  |   | $                                 | 5,299  |   |                          | $      | 4,318 |   |   | $ | 4,229 |   |   | $ | 3,379 |   |
| Other      intangibles                | 1 -      5 years  |   |                              | 2,830  |   |                          |   | 786 |   |   |   | 730 |   |   |   | 724 |   |
| Total                                 |              |   | $                                 | 8,129  |   |                          | $      | 5,104 |   |   | $ | 4,959 |   |   | $ | 4,103 |   |

| (Dollars      in thousands)                                              |   |   |  2009 |   |
|--------------------------------------------------------------------------|--------|--------|------------|--------|
| Property      and equipment                                              |   | $      | 3,986      |   |
| Identifiable      intangible assets:                                     |   |   |       |   |
|            Customer relationships and contracts |   |   |       | 1,070  |   |
|            Supplier relationship                |   |   |       | 2,100  |   |
| Goodwill                                                                 |   |   |       | 2,184  |   |
| Other      assets and liabilities                                        |   |   | (653       | )      |
| Deferred      income tax                                                 |   |   |       | (2,062 | ) |
| Allocation      of purchase consideration                                |   | $      | 6,625      |   |

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|                                                           |   | Unrecognized       |   |   | Unrecognized       |   |   | Unrecognized   |   |   | Unrealized          |   |   | Accumulated      Other |   |
|----------------------------------------------------------------|--------|--------------------|--------|--------|--------------------|--------|--------|----------------|--------|--------|---------------------|--------|--------|------------------------|--------|
|                                                           |   | Net      Actuarial |   |   | Prior      Service |   |   | Transition     |   |   | Gain/(Loss)         |   |   | Comprehensive          |   |
| (Dollars      in thousands)                                    |   | Loss      (1)      |   |   | Credit (1)         |   |   | Asset      (1) |   |   | on      Derivatives |   |   | Income/(Loss)          |   |
| December      31, 2006                                         |   | $                  | (867   | )      |               | $      | 37     |           |   | $      | (217                | )      |   | $                      | 1,497  |   |   | $ | 450 |   |
| 2007      Activity                                             |   |               | (87    | )      |               |   | 242    |           |   |   | 36                  |   |   |                   | (1,708 | ) |   |   | (1,517 | ) |
| December      31, 2007                                         |   |               | (954   | )      |               |   | 279    |           |   |   | (181                | )      |   |                   | (211   | ) |   |   | (1,067 | ) |
| 2008      Activity                                             |   |               | (421   | )      |               |   | (33    | )              |   |   | 36                  |   |   |                   | (1,768 | ) |   |   | (2,186 | ) |
| December      31, 2008                                         |   |               | (1,375 | )      |               |   | 246    |           |   |   | (145                | )      |   |                   | (1,979 | ) |   |   | (3,253 | ) |
| 2009      Activity                                             |   |               | (2,005 | )      |               |   | (33    | )              |   |   | 36                  |   |   |                   | 829    |   |   |   | (1,173 | ) |
| December      31, 2009                                         |   | $                  | (3,380 | )      |               | $      | 213    |           |   | $      | (109                | )      |   | $                      | (1,150 | ) |   | $ | (4,426 | ) |
|                                                           |   |               |   |   |               |   |   |           |   |   |                |   |   |                   |   |   |   |   |   |   |
| (1) Amounts pertain to      our post-retirement benefit plans. |   |               |   |   |               |   |   |           |   |   |                |   |   |

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| (Dollars      in thousands)                                                 |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|-----------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Income      tax (liability) related to OCI components                       |   |   |   |   |   |   |   |   |   |
|            beginning of year                       |   | $      | 2,150  |   |   | $      | 1,141  |   |   | $ | (301 | ) |
| Income      tax (liability) changes related to:                             |   |   |   |   |   |   |   |   |   |   |   |   |
|            Unrecognized net actuarial loss         |   |   | 1,327  |   |   |   | 281    |   |   |   | 57 |   |
|            Unrecognized prior service credit       |   |   | 21     |   |   |   | 21     |   |   |   | (159 | ) |
|            Unrecognized transition asset           |   |   | (24    | )      |   |   | (24    | )      |   |   | (24 | ) |
|            Unrecognized gain (loss) on derivatives |   |   | (548   | )      |   |   | 731    |   |   |   | 1,568 |   |
| Income      tax related to OCI components end of year                       |   | $      | 2,926  |   |   | $      | 2,150  |   |   | $ | 1,141 |   |

| For      Year Ended December 31                          |   |     |   |   |    |   |    |                            |   |   |         |   |
|----------------------------------------------------------|--------|----------|--------|--------|---------|--------|---------|---------------------------------|--------|--------|--------------|--------|
| (Dollars      in thousands)                              |   |     |   |   |    |   |    |                            |   |   |         |   |
|                                                     |   |     |   |   |    |   |    |                            |   |   |         |   |
| 2009                                                     |   | Enventis |   |   | Telecom |   |    | Corporate      and Eliminations |   |   | Consolidated |   |
| Revenue      from unaffiliated customers                 |   | $        | 68,683 |   |    | $      | 70,419  |                            |   | $      | -            |   |   | $ | 139,102 |   |
| Intersegment      revenue                                |   |     | 500    |   |    |   | 1,217   |                            |   |   | (1,717       | )      |   |   | - |   |
|    Total      operating revenue           |   |     | 69,183 |   |    |   | 71,636  |                            |   |   | (1,717       | )      |   |   | 139,102 |   |
|                                                     |   |     |   |   |    |   |    |                            |   |   |         |   |   |   |   |   |
| Depreciation      and amortization                       |   |     | 5,413  |   |    |   | 15,680  |                            |   |   | 84           |   |   |   | 21,177 |   |
| Operating      income (loss)                             |   |     | 5,627  |   |    |   | 13,587  |                            |   |   | (629         | )      |   |   | 18,585 |   |
| Interest      expense                                    |   |     | 2      |   |    |   | 95      |                            |   |   | 6,821        |   |   |   | 6,918 |   |
| Income      taxes                                        |   |     | 2,299  |   |    |   | 5,451   |                            |   |   | (7,251       | )      |   |   | 499 |   |
| Income      (loss) from  continuing operations |   |     | 3,362  |   |    |   | 8,068   |                            |   |   | (157         | )      |   |   | 11,273 |   |
| Identifiable      assets                                 |   |     | 72,856 |   |    |   | 140,494 |                            |   |   | 9,133        |   |   |   | 222,483 |   |
| Property,      plant and equipment, net                  |   |     | 46,867 |   |    |   | 106,328 |                            |   |   | 283          |   |   |   | 153,478 |   |
| Capital      expenditures                                |   |     | 8,738  |   |    |   | 9,068   |                            |   |   | 87           |   |   |   | 17,893 |   |

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| For      Year Ended December 31                    |   |     |   |   |    |   |    |                            |   |   |         |   |
|----------------------------------------------------|--------|----------|--------|--------|---------|--------|---------|---------------------------------|--------|--------|--------------|--------|
| (Dollars      in thousands)                        |   |     |   |   |    |   |    |                            |   |   |         |   |
|                                               |   |     |   |   |    |   |    |                            |   |   |         |   |
| 2008                                               |   | Enventis |   |   | Telecom |   |    | Corporate      and Eliminations |   |   | Consolidated |   |
| Revenue      from unaffiliated customers           |   | $        | 79,976 |   |    | $      | 73,199  |                            |   | $      | -            |   |   | $ | 153,175 |   |
| Intersegment      revenue                          |   |     | 515    |   |    |   | 644     |                            |   |   | (1,159       | )      |   |   | - |   |
|    Total      operating revenue     |   |     | 80,491 |   |    |   | 73,843  |                            |   |   | (1,159       | )      |   |   | 153,175 |   |
|                                               |   |     |   |   |    |   |    |                            |   |   |         |   |   |   |   |   |
| Depreciation      and amortization                 |   |     | 4,417  |   |    |   | 16,136  |                            |   |   | 53           |   |   |   | 20,606 |   |
| Operating      income                              |   |     | 7,024  |   |    |   | 13,045  |                            |   |   | 157          |   |   |   | 20,226 |   |
| Interest      expense                              |   |     | -      |   |    |   | 85      |                            |   |   | 6,785        |   |   |   | 6,870 |   |
| Income      taxes                                  |   |     | 2,660  |   |    |   | 4,879   |                            |   |   | (2,119       | )      |   |   | 5,420 |   |
| Income      (loss) from continuing operations |   |     | 4,369  |   |    |   | 8,104   |                            |   |   | (4,444       | )      |   |   | 8,029 |   |
| Identifiable      assets                           |   |     | 68,481 |   |    |   | 148,238 |                            |   |   | 8,789        |   |   |   | 225,508 |   |
| Property,      plant and equipment, net            |   |     | 38,575 |   |    |   | 112,497 |                            |   |   | 281          |   |   |   | 151,353 |   |
| Capital      expenditures                          |   |     | 6,408  |   |    |   | 11,102  |                            |   |   | 181          |   |   |   | 17,691 |   |
|                                               |   |     |   |   |    |   |    |                            |   |   |         |   |   |   |   |   |
|                                               |   |     |   |   |    |   |    |                            |   |   |         |   |   |   |   |
| 2007                                               |   | Enventis |   |   | Telecom |   |    | Corporate      and Eliminations |   |   | Consolidated |   |
| Revenue      from unaffiliated customers           |   | $        | 79,802 |   |    | $      | 76,847  |                            |   | $      | -            |   |   | $ | 156,649 |   |
| Intersegment      revenue                          |   |     | 440    |   |    |   | 467     |                            |   |   | (907         | )      |   |   | - |   |
|    Total      operating revenue     |   |     | 80,242 |   |    |   | 77,314  |                            |   |   | (907         | )      |   |   | 156,649 |   |
|                                               |   |     |   |   |    |   |    |                            |   |   |         |   |   |   |   |   |
| Depreciation      and amortization                 |   |     | 3,755  |   |    |   | 15,218  |                            |   |   | 31           |   |   |   | 19,004 |   |
| Operating      income (loss)                       |   |     | 6,904  |   |    |   | 17,796  |                            |   |   | (1,520       | )      |   |   | 23,180 |   |
| Interest      expense                              |   |     | -      |   |    |   | 72      |                            |   |   | 8,049        |   |   |   | 8,121 |   |
| Income      taxes                                  |   |     | 2,904  |   |    |   | 7,287   |                            |   |   | (3,480       | )      |   |   | 6,711 |   |
| Income      (loss) from continuing operations |   |     | 4,074  |   |    |   | 10,460  |                            |   |   | (5,899       | )      |   |   | 8,635 |   |
| Identifiable      assets                           |   |     | 66,842 |   |    |   | 152,961 |                            |   |   | 7,692        |   |   |   | 227,495 |   |
| Property,      plant and equipment, net            |   |     | 35,700 |   |    |   | 117,078 |                            |   |   | 153          |   |   |   | 152,931 |   |
| Capital      expenditures                          |   |     | 5,928  |   |    |   | 11,489  |                            |   |   | 83           |   |   |   | 17,500 |   |

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Table of Contents

|                                               |   | Options |    |   | Weighted      Average Exercise Price |   |
|----------------------------------------------------|--------|---------|---------|--------|--------------------------------------|--------|
|                                               |   | 2009    |    |   | 2008                                 |   |   | 2007 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| Outstanding      at Beginning of Year              |   |    | 471,200 |   |                                 |   | 476,000 |   |   |   | 515,884 |   |   | $ | 12.79 |   |   | $ | 12.79 |   |   | $ | 12.75 |   |
| Granted                                            |   |    | -       |   |                                 |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Exercised                                          |   |    | -       |   |                                 |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Forfeited                                          |   |    | -       |   |                                 |   | - |   |   |   | (499 | ) |   |   | - |   |   |   | - |   |   |   | 10.76 |   |
| Expired                                            |   |    | (40,250 | )      |                                 |   | (4,800 | ) |   |   | (39,385 | ) |   |   | 11.87 |   |   |   | 13.38 |   |   |   | 12.22 |   |
| Outstanding      at End of Year                    |   |    | 430,950 |   |                                 |   | 471,200 |   |   |   | 476,000 |   |   | $ | 12.87 |   |   | $ | 12.79 |   |   | $ | 12.79 |   |
|                                               |   |    |    |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercisable      at End of Year                    |   |    | 430,950 |   |                                 |   | 466,200 |   |   |   | 454,335 |   |   | $ | 12.87 |   |   | $ | 12.85 |   |   | $ | 12.97 |   |
|                                               |   |    |    |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fair      Value of Options Vesting During the Year |   | $       | 7,000   |   |                                 | $      | 41,000 |   |   | $ | 156,000 |   |   |   |   |   |   |   |   |   |   |   |   |   |

| Range      of                  |                 |   | Stock      Options |   |    | Stock      Options |   |   | Weighted      Average |   | Weighted      Average Remaining |
|--------------------------------|----------------------|--------|--------------------|--------|---------|--------------------|--------|--------|-----------------------|--------|---------------------------------|
| Exercise      Prices           |                 |   | Outstanding        |   |    | Exercisable        |   |   | Exercise      Price   |   | Contractual      Life           |
|                           | $6.00      - $8.00   |   |               |   | 15,000  |               |   |   | 15,000                |   |                            | $ | 6.95 |   | 6.7      years |
|                           | $8.00      - $12.00  |   |               |   | 156,950 |               |   |   | 156,950               |   |                            |   | 10.22 |   | 3.9      years |
|                           | $12.00      - $16.00 |   |               |   | 205,250 |               |   |   | 205,250               |   |                            |   | 13.95 |   | 1.3      years |
|                           | $16.00      - $21.00 |   |               |   | 53,750  |               |   |   | 53,750                |   |                            |   | 18.18 |   | 1.2      years |
|                           |                 |   |               |   | 430,950 |               |   |   | 430,950               |   |                            | $ | 12.87 |   | 2.4      years |
|                           |                 |   |               |   |    |               |   |   |                  |   |                            |   |   |   |   |
| Aggregate      Intrinsic Value |                 |   |               |   |    |               |   |   |                  |   | $                               | 44,000 |   |   |

|                                                                                               |   | As      of December 31 |    |
|----------------------------------------------------------------------------------------------------|--------|------------------------|---------|
| (Dollars      in thousands)                                                                        |   | 2009                   |    |   | 2008 |   |
| Credit      facility, average interest at 5.5%, maturing in varying amounts      through 2013 |   | $                      | 119,900 |   |   | $ | 126,400 |   |
| Capitalized      lease obligations, average interest at 11.4%, maturing March      2011       |   |                   | 591     |   |   |   | 605 |   |
|     Total                                                                      |   |                   | 120,491 |   |   |   | 127,005 |   |
| Less      current maturities                                                                       |   |                   | 620     |   |   |   | 1,621 |   |
| Long-term      obligations                                                                         |   | $                      | 119,871 |   |   | $ | 125,384 |   |

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| Interest-Rate      Swap Agreement Effective Dates |   | Coverage      Amount |       |   | Rate   |   |
|---------------------------------------------------|--------|----------------------|------------|--------|--------|--------|
| March      2007 - March 2010                      |   | $                    | 60,000,000 |   |   |   | 4.89 | % |
| March      2008 - February 2010                   |   | $                    | 40,000,000 |   |   |   | 2.54 | % |
| March      2010 - September 2011                  |   | $                    | 80,000,000 |   |   |   | 2.15 | % |

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| (Dollars      in thousands)                                     |   | 2009   |   |   | 2008   |   |
|-----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Change      in benefit obligation                               |   |   |   |   |   |   |
|          Benefit obligation at beginning of year |   | $      | 9,225  |   |   | $      | 7,958 |   |
|          Service cost                            |   |   | 309    |   |   |   | 254 |   |
|          Interest cost                           |   |   | 547    |   |   |   | 487 |   |
|          Actuarial loss                          |   |   | 3,466  |   |   |   | 781 |   |
|          Benefits paid                           |   |   | (277   | )      |   |   | (255 | ) |
| Benefit      obligation at end of year                          |   | $      | 13,270 |   |   | $      | 9,225 |   |

|                                                                          |   | As      of December 31 |   |
|-------------------------------------------------------------------------------|--------|------------------------|--------|
| (Dollars      in thousands)                                                   |   | 2009                   |   |   | 2008 |   |   | 2007 |   |
| Components      of net periodic benefit cost                                  |   |                   |   |   |   |   |   |   |   |
| Service      cost                                                             |   | $                      | 309    |   |   | $ | 254 |   |   | $ | 286 |   |
| Interest      cost                                                            |   |                   | 547    |   |   |   | 487 |   |   |   | 455 |   |
| Expected      return on plan assets                                           |   |                   | -      |   |   |   | - |   |   |   | - |   |
| Amortization      of transition obligation                                    |   |                   | 60     |   |   |   | 60 |   |   |   | 60 |   |
| Amortization      of prior service cost                                       |   |                   | (55    | ) |   |   | (55 | ) |   |   | (12 | ) |
| Recognized      net actuarial loss                                            |   |                   | 134    |   |   |   | 79 |   |   |   | 70 |   |
| Net      periodic benefit cost                                                |   | $                      | 995    |   |   | $ | 825 |   |   | $ | 859 |   |
|                                                                          |   |                   |   |   |   |   |   |   |   |   |   |   |
| Discount      rate used to determine benefit obligation as of December    31: |   |                   | 5.50   | % |   |   | 6.00 | % |   |   | 6.20 | % |

| Health      Care Trend Rates for the Year Ending December 31, 2009 | Year   |      | Trend      Rate |
|--------------------------------------------------------------------|--------|-----------|-----------------|
|                                                               |   | 2010-2011 |            | 7.90% |
|                                                               |   | 2011-2012 |            | 6.60% |
|                                                               |   | 2012-2013 |            | 5.80% |
|                                                               |   | 2013-2014 |            | 5.80% |
|                                                               |   | 2014-2015 |            | 5.70% |
|                                                               |   | 2015-2016 |            | 5.70% |
|                                                               |   | 2016-2017 |            | 5.70% |
|                                                               |   | 2017-2018 |            | 5.70% |
|                                                               |   | 2018-2019 |            | 5.60% |
|                                                               |   | 2019-2084 |            | 5.6%-4.00% |
|                                                               |   | 2085      |            | 4.00% |

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| (Dollars in thousands)                                        |   |             |   |   |             |   |
|--------------------------------------------------------------------|--------|------------------|--------|--------|------------------|--------|
| Effect      of 1% Increase and 1% Decrease in Trend Rate           |   | 1%      Increase |   |   | 1%      Decrease |   |
| Accum.      post-retirement benefit oblig. as of December 31, 2009 |   |             |   |   |             |   |
|   Dollar                                                 |   | $                | 2,350  |   |             | $      | (1,873 | ) |
| Percentage      change in retiree medical                          |   |             | 18.0   | %      |             |   | (15.0 | %) |
|                                                               |   |             |   |   |             |   |   |   |
| Service      cost and interest cost for fiscal 2009                |   |             |   |   |             |   |   |   |
|        Dollar                                                 |   | $                | 174    |   |             | $      | (137 | ) |
| Percentage      change in retiree medical                          |   |             | 21.0   | %      |             |   | (17.0 | %) |

| (Dollars      in thousands)            |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|----------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Current      income taxes (benefits):  |   |   |   |   |   |   |   |   |   |
| Federal                                |   | $      | (1,144 | )      |   | $      | 1,370  |   |   | $ | 4,027 |   |
| State                                  |   |   | (325   | )      |   |   | 390    |   |   |   | 1,145 |   |
| Deferred      income taxes (benefits): |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal                                |   |   | 2,020  |   |   |   | 3,356  |   |   |   | 1,031 |   |
| State                                  |   |   | (52    | )      |   |   | 304    |   |   |   | 492 |   |
| Total      income tax provision        |   | $      | 499    |   |   | $      | 5,420  |   |   | $ | 6,695 |   |

| (Dollars      in thousands)     |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|---------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Continuing      operations      |   | $      | 499    |   |   | $      | 5,420  |   |   | $ | 6,711 |   |
| Discontinued      operations    |   |   | -      |   |   |   | -      |   |   |   | (16 | ) |
| Total      income tax provision |   | $      | 499    |   |   | $      | 5,420  |   |   | $ | 6,695 |   |

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| (Dollars      in thousands)                             |   | 2009   |   |   | 2008   |   |
|---------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Tax      liabilities:                                   |   |   |   |   |   |   |
| Depreciation      and fixed assets                      |   | $      | 21,445 |   |   | $      | 17,924 |   |
| Intangible      assets                                  |   |   | 7,475  |   |   |   | 6,075 |   |
| Gross      deferred tax liability                       |   | $      | 28,920 |   |   | $      | 23,999 |   |
|                                                    |   |   |   |   |   |   |   |   |
| Tax      Assets:                                        |   |   |   |   |   |   |   |   |
| Deferred      compensation and post-retirement benefits |   | $      | 6,534  |   |   | $      | 4,461 |   |
| Receivables      and inventories                        |   |   | 501    |   |   |   | 460 |   |
| Accrued      liabilities                                |   |   | 1,112  |   |   |   | 1,167 |   |
|         Derivatives                           |   |   | 760    |   |   |   | 1,309 |   |
| State      net operating loss                           |   |   | 1,767  |   |   |   | 1,767 |   |
|         Other                                 |   |   | 469    |   |   |   | 304 |   |
| Gross      deferred tax asset                           |   |   | 11,143 |   |   |   | 9,468 |   |
| Valuation      allowance                                |   |   | (1,695 | )      |   |   | (1,687 | ) |
| Net      deferred tax liability                         |   |   | 19,472 |   |   |   | 16,218 |   |
| Current      deferred tax asset                         |   |   | 2,423  |   |   |   | 2,064 |   |
| Net      non-current deferred tax liability             |   | $      | 21,895 |   |   | $      | 18,282 |   |

|                                               |   | For      Year Ended December 31 |   |
|----------------------------------------------------|--------|---------------------------------|--------|
|                                               |   | 2009                            |   |   | 2008 |   |   | 2007 |   |
| Statutory      tax rate                            |   |                            | 35.0   | % |   |   | 35.0% | % |   |   | 35.0 | % |
| Effect      of:                                    |   |                            |   |   |   |   |   |   |   |   |   |   |
| State      income taxes net of federal tax benefit |   |                            | 6.2    |   |   |   | 6.0 |   |   |   | 6.1 |   |
| Release      of income tax reserve and prior       |   |                            |   |   |   |   |   |   |   |   |   |   |
|   Year      adjustments                  |   |                            | (37.5  | ) |   |   | (7.8 | ) |   |   | 0.6 |   |
| Medicare      part D subsidy                       |   |                            | (0.6   | ) |   |   | (0.4 | ) |   |   | (0.3 | ) |
| ASC      740                                       |   |                            | 1.5    |   |   |   | 3.2 |   |   |   | 2.50 |   |
| Acquisition      costs                             |   |                            | 0.8    |   |   |   | - |   |   |   | - |   |
| Expiration      of capital loss                    |   |                            | -      |   |   |   | 5.2 |   |   |   | - |   |
| Other,      net                                    |   |                            | (1.2   | ) |   |   | (0.9 | ) |   |   | (0.2 | ) |
| Effective      tax rate                            |   |                            | 4.2    | % |   |   | 40.3 | % |   |   | 43.7 | % |

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| (Dollars      in thousands)                                         |   | 2009   |   |   | 2008   |   |
|---------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Unrecognized      tax benefits opening balance (excluding interest) |   | $      | 7,239  |   |   | $      | 7,591 |   |
| Increases:                                                          |   |   |   |   |   |   |   |   |
|   Tax      positions taken in current period              |   |   | 23     |   |   |   | 41 |   |
|   Tax      position taken in prior periods                |   |   | 3      |   |   |   | 357 |   |
| Decreases:                                                          |   |   |   |   |   |   |   |   |
|   Tax      positions taken in prior periods               |   |   | -      |   |   |   | (750 | ) |
| Settlements                                                         |   |   | (48    | )      |   |   | - |   |
| Lapse      of statute limitations                                   |   |   | (4,002 | )      |   |   | - |   |
| Unrecognized      tax benefits                                      |   |   | -      |   |   |   | - |   |
| Ending      balance (excluding interest)                            |   | $      | 3,215  |   |   | $      | 7,239 |   |

| ·   | Level      1 – quoted prices in active markets for identical assets and      liabilities. |
|--------------------|-------------------------------------------------------------------------------------------------|

| ·   | Level      2 – observable inputs other than quoted prices in active markets for      identical assets and liabilities. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level 3      – unobservable inputs in which there is little or no market data      available, which require the reporting entity to develop its own      assumptions. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Interest-Rate      Swap Agreement Effective Dates |   | Coverage      Amount |       |   | Rate   |   |
|---------------------------------------------------|--------|----------------------|------------|--------|--------|--------|
| March      2007 - March 2010                      |   | $                    | 60,000,000 |   |   |   | 4.89 | % |
| March      2008 - February 2010                   |   | $                    | 40,000,000 |   |   |   | 2.54 | % |
| March      2010 - September 2011                  |   | $                    | 80,000,000 |   |   |   | 2.15 | % |

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| (Dollars      in thousands)          |   | Gain/(Loss)      Reported |   | Location      of Gain/Proceeds     |   | Amount      of Gain/Proceeds |
|--------------------------------------|--------|---------------------------|--------|------------------------------------|--------|------------------------------|
|                                 |   | in      Accumulated Other |   | Reclassified      from Accumulated |   | Recognized      in           |
| Derivatives      in ASC 815          |   | Comprehensive      Loss   |   | Other      Comprehensive Income    |   | Income      on Derivative    |
| Cash      Flow Hedging Relationships |   | 2009                      |   | 2008                               |   | 2007                         |   | into      Income |   | 2009 |   | 2008 |   | 2007 |
|                                 |   |                      |   |                               |   |                         |   |   |   |   |   |   |   |   |
| Interest      Rate Contracts         |   |  $829                |   |  $(1,768)                     |   |  $(1,708)               |   | Interest      Expense |   |  $- |   |  $664 |   |  $1,272 |

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Table of Contents

|                                                 |   | 2009       |   |
|------------------------------------------------------|--------|------------|--------|
| (Dollars in thousands except per share      amounts) |   | 4th        |   |   | 3rd |   |   | 2nd |   |   | 1st |   |
| Operating      revenue                               |   | $          | 38,330 |   |   | $ | 34,908 |   |   | $ | 32,403 |   |   | $ | 33,461 |   |
| Operating      income                                |   | $          | 4,044  |   |   | $ | 4,694 |   |   | $ | 5,289 |   |   | $ | 4,558 |   |
| Net      income                                      |   | $          | 1,424  |   |   | $ | 6,106 |   |   | $ | 2,117 |   |   | $ | 1,626 |   |
| Basic      EPS                                       |   | $          | 0.11   |   |   | $ | 0.47 |   |   | $ | 0.16 |   |   | $ | 0.12 |   |
| Fully      diluted EPS                               |   | $          | 0.11   |   |   | $ | 0.47 |   |   | $ | 0.16 |   |   | $ | 0.12 |   |
|                                                 |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends      per share                             |   | $          | 0.13   |   |   | $ | 0.13 |   |   | $ | 0.13 |   |   | $ | 0.13 |   |
|                                                 |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                 |   |  2008 |   |
| (Dollars      in thousands except per share amounts) |   | 4th        |   |   | 3rd |   |   | 2nd |   |   | 1st |   |
| Operating      revenue                               |   | $          | 37,670 |   |   | $ | 39,860 |   |   | $ | 39,745 |   |   | $ | 35,900 |   |
| Operating      income                                |   | $          | 4,106  |   |   | $ | 5,360 |   |   | $ | 5,891 |   |   | $ | 4,869 |   |
| Net      income                                      |   | $          | 1,679  |   |   | $ | 2,072 |   |   | $ | 2,497 |   |   | $ | 1,781 |   |
| Basic      EPS                                       |   | $          | 0.13   |   |   | $ | 0.16 |   |   | $ | 0.19 |   |   | $ | 0.13 |   |
| Fully      diluted EPS                               |   | $          | 0.13   |   |   | $ | 0.16 |   |   | $ | 0.19 |   |   | $ | 0.13 |   |
|                                                 |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends      per share                             |   | $          | 0.13   |   |   | $ | 0.12 |   |   | $ | 0.12 |   |   | $ | 0.12 |   |

Item 9

Item 9A

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Item 9B

PART III

Item 10.

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Item 11

Item 12

Item 13

Item 14

PART IV

Item 15

|                                                                               | Page |
|------------------------------------------------------------------------------------|------|
| Reports      of Independent Registered Public Accounting Firm                      | 47   |
| Consolidated      Statements of Operations                                         | 49   |
| Consolidated      Balance Sheets                                                   | 50   |
| Consolidated      Statements of Cash Flows                                         | 51   |
| Consolidated      Statements of Shareholder’s Equity and ComprehensiveIncome | 52   |
| Notes      to Consolidated Financial Statements                                    | 53   |

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|                                                       | Page |
|------------------------------------------------------------|------|
| Schedule      II – Valuation and Qualifying Accounts | 79   |

| Exhibit      | Description                                                                                                                                                                                                                                                                                                                                                                         |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3(a)         | Restated      Articles of Incorporation (Incorporated by reference to Exhibit 3 to the      Registrant’s Form 10-Q filed May 7, 1999)                                                                                                                                                                                                                                    |
| 3(b)         | Amended      and Restated By-Laws (Incorporated by reference to Exhibit 3.1 to the      Registrant’s Form 10Q filed May 3, 2007)                                                                                                                                                                                                                                         |
| 3(c)         | Certificate      of Designations of Series A Junior Participating Preferred Stock of      HickoryTech Corporation (Incorporated by reference to Exhibit 3(c) to the      Registrant’s Form 10-K filed March 29, 2000)                                                                                                                                                    |
| 4(a)         | Amended      and Restated Shareholder Rights Agreement (Incorporated by reference to      Exhibit 4.1 to the Registrant’s Form 8-A filed March 17,2009)                                                                                                                                                                                                                  |
| 4(b)         | Third      Amended and Restated Credit Agreement dated as of December 30, 2005, by      and among HickoryTech Corporation, as Borrower, the Lenders referred to      herein and Wachovia (formerly known as First Union National Bank), as      Administrative Agent (Incorporated by reference to Exhibit 4.1 to the      Registrant’s Form 8-K filed January 6, 2006)  |
| 10.1+        | Supplemental      Retirement Agreement dated January 31, 1984, between registrant’s      subsidiary, Mankato Citizens Telephone company, and David A. Christensen      (Incorporated by reference to Exhibit 10(b) to the Registrant’s Form S-8      filed May 11, 1993)                                                                                           |
| 10.2+   | HickoryTech      Corporation Directors' Stock Option Plan Amended and Restated February 5,      2003 (Incorporated by reference to Exhibit 10(g) to the Registrant's Form      10-K filed March 9, 2004)                                                                                                                                                             |
| 10.3+        | HickoryTech      Corporation Retainer Stock Plan for Directors Restated and Amended      effective September 1, 1996 (Incorporated by reference to Exhibit 10(m) to      the Registrant's Form 10-Q filed August 12, 1996)                                                                                                                                                |
| 10.4+        | HickoryTech      Corporation 1993 Stock Award Plan (Amended and Restated effective      September 26, 2001) (Incorporated by reference to Exhibit 10(l) to the      Registrant’s Form 10-K dated March 26, 1997)                                                                                                                                                         |
| 10.5+        | Summary      of the HickoryTech Corporation Long-Term Executive Incentive Program      (Incorporated by reference to Exhibit 10(q) to the Registrant’s Form 8-K      filed February 22, 2005)                                                                                                                                                                            |
| 10.6+        | Form      of Stock Option Agreement Used in connection with Grants Under the 1993      Stock Award (Incorporated by reference to Exhibit 10(r) to the      Registrant’s Form 10-K filed March 4, 2005)                                                                                                                                                                   |
| 10.7+        | HickoryTech      Corporation Directors’ Incentive Plan (Incorporated by reference to      Exhibit 10(s) to the Registrant’s Form 8-K filed May 9, 2005)                                                                                                                                                                                                            |
| 10.8         | Stock      Purchase Agreement by and between HickoryTech Corporation and Minnesota      Power Enterprises, Inc. dated November 9, 2005 (Incorporated by reference      from Exhibit 2.1 to the Registrant’s Current Report on Form 8-K filed on      November 10, 2005)                                                                                                  |
| 10.9         | First      Amendment to the Stock Purchase Agreement by and between HickoryTech      Corporation and Minnesota Power Enterprises, Inc., dated December 30, 2005      (Incorporated by reference to Exhibit 2.1A to the Registrant’s Current      Report on Form 8-K filed on January 05, 2006)                                                                           |
| 10.10        | Agreement      for Wholesale Financing between HickoryTech and GE Commercial Distribution      Finance Corporation dated February 23, 2006, as amended (Incorporated by      reference to the Registrant’s Current Report on Form 8-K filed April 7,      2006)                                                                                                          |
| 10.11+  | Change      of Control Agreement between HickoryTech Corporation and Walter A.      Prahl  (Incorporated by reference to Exhibit 10.1 to the      Registrant's Current Report on Form 8-K filed November 30,      2007)                                                                                                                                         |

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| Exhibit                              | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|--------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.12+                               | Amended      and Restated HickoryTech Corporation Employee Stock Purchase Plan, dated      August 1, 2006 (Incorporated by reference to Exhibit 10.14 to the      Registrants Form 10-K dated February 29, 2008)                                                                                                                                                                                                                                                                                         |
| 10.13+                               | Amended      and Restated Change of Control Agreement dated November 29, 2007 between      HickoryTech Corporation and John W. Finke (Incorporated by reference to      Exhibit 10.15 to the Registrants Form 10-K dated February 29,      2008)                                                                                                                                                                                                                                                         |
| 10.14+                               | Change      of Control Agreement between HickoryTech and John P. Morton dated November      29, 2007(Incorporated by reference to Exhibit 10.16 to the Registrants      Form 10-K dated February 29, 2008)                                                                                                                                                                                                                                                                                               |
| 10.15+                               | Amended      and Restated Change of Control Agreement dated November 29, 2007 between      HickoryTech Corporation and David A. Christensen (Incorporated by      reference to Exhibit 10.17 to the Registrants Form 10-K dated February 29,      2008)                                                                                                                                                                                                                                                  |
| 10.16+                               | Amended      and Restated Change of Control Agreement dated November 29, 2007 between      HickoryTech Corporation and Lane C. Nordquist (Incorporated by reference      to Exhibit 10.18 to the Registrants Form 10-K dated February 29,      2008)                                                                                                                                                                                                                                                     |
| 10.17+                               | Amended      and Restated Change of Control Agreement dated November 29, 2007 between      HickoryTech Corporation and Mary T. Jacobs (Incorporated by reference to      Exhibit 10.19 to the Registrants Form 10-K dated February 29,      2008)                                                                                                                                                                                                                                                        |
| 10.18+                               | Change      of Control Agreement between HickoryTech and Damon D. Dutz dated November      29, 2007 (Incorporated by reference to Exhibit 10.20 to the Registrants      Form 10-K dated February 29, 2008)                                                                                                                                                                                                                                                                                               |
| 10.19+                          | Employment      Agreement between the HickoryTech and John W. Finke, President and Chief      Executive Officer of the Company, dated August 1, 2006 which includes a      Supplemental Retirement Agreement (Incorporated by reference to the      Registrants Current Report on Form 8-K filed August 16,      2006)  Amendment to Employment Agreement dated November 29, 2007      (Incorporated by reference to Exhibit 10.21 to the Registrants Form 10-K      dated February 29, 2008)  |
| 10.20+      | Employment      Agreement between HickoryTech and John P. Morton dated December 20, 2006      and Amendment to Employment Agreement dated November 29, 2007      (Incorporated by reference to Exhibit 10.22 to the Registrants Form      10-K dated February 29, 2009)                                                                                                                                                                                                                        |
| 10.21+                               | HickoryTech      Corporation Executive Incentive Plan Amended and Restated January 1,      2009                                                                                                                                                                                                                                                                                                                                                                                                          |
| 14                                   | Code      of Ethics (Incorporated by reference to Exhibit 14 to the registrant’s      Form 10-K filed March 14, 2004)                                                                                                                                                                                                                                                                                                                                                                              |
| 21*                                  | Subsidiaries      of HickoryTech Corporation                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 23.1*                                | Consent      of Independent Registered Public Accounting Firm                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 31(a)*                               | Certification      of Chief Executive Officer Under Rule 13a-14(a) Adopted Pursuant to      Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                |

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| Exhibit    | Description                                                                                                                                                |
|---------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31(b)*                    | Certification      of Chief Financial Officer Under Rule 13a-14(a) Adopted Pursuant to      Section 302 of the Sarbanes-Oxley Act of 2002             |
| 32(a)*                    | Certification      of Chief Executive Officer Under 18 U.S.C. Section 1350 Pursuant to      Section 906 of the Sarbanes-Oxley Act of 2002             |
| 32(b)*                    | Certification      of Chief Financial Officer Under 18 U.S.C. Section 1350 Pursuant      to  Section 906 of the Sarbanes-Oxley Act of 2002  |

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| SCHEDULE      II - VALUATION AND QUALIFYING ACCOUNTS                |   |
|---------------------------------------------------------------------|--------|
| HickoryTech      Corporation                                        |   |
| (Dollars      in thousands)                                         |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   |   |   |   | Additions |   |   |   |   |   |   |   |
|                                                                |   | Balance      at |   |   | Charged      to |   |   | Charged      to |   |   |   |   |   | Balance      at |   |
|                                                                |   | Beginning      of |   |   | Costs      and |   |   | Other |   |   |   |   |   | End      of |   |
| Description                                                         |   | Period |   |   | Expenses |   |   | Accounts |   |   | Deductions |   |   | Period |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Year      ended December 31, 2007                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Allowance      for doubtful accounts        |   | $ | 851 |   |   | $ | 139 |   |   | $ | - |   |   | $ | 194 |   |   | $ | 1,184 |   |
|     Inventory      valuation reserve            |   |   | 462 |   |   |   | 161 |   |   |   | - |   |   |   | (225 | ) |   |   | 398 |   |
|     Deferred      tax asset valuation allowance |   |   | 1,616 |   |   |   | - |   |   |   | - |   |   |   | (66 | ) |   |   | 1,550 |   |
| Total                                                               |   | $ | 2,929 |   |   | $ | 300 |   |   | $ | - |   |   | $ | (97 | ) |   | $ | 3,132 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Year      ended December 31, 2008                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Allowance      for doubtful accounts        |   | $ | 1,184 |   |   | $ | 286 |   |   | $ | - |   |   | $ | (565 | ) |   | $ | 905 |   |
|     Inventory      valuation reserve            |   |   | 398 |   |   |   | 184 |   |   |   | - |   |   |   | (333 | ) |   |   | 249 |   |
|     Deferred      tax asset valuation allowance |   |   | 1,550 |   |   |   | 137 |   |   |   | - |   |   |   | - |   |   |   | 1,687 |   |
| Total                                                               |   | $ | 3,132 |   |   | $ | 607 |   |   | $ | - |   |   | $ | (898 | ) |   | $ | 2,841 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Year      ended December 31, 2009                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Allowance      for doubtful accounts        |   | $ | 905 |   |   | $ | 128 |   |   | $ | - |   |   | $ | (390 | ) |   | $ | 643 |   |
|     Inventory      valuation reserve            |   |   | 249 |   |   |   | 110 |   |   |   | - |   |   |   | (104 | ) |   |   | 255 |   |
|     Deferred      tax asset valuation allowance |   |   | 1,687 |   |   |   | 8 |   |   |   | - |   |   |   | - |   |   |   | 1,695 |   |
| Total                                                               |   | $ | 2,841 |   |   | $ | 246 |   |   | $ | - |   |   | $ | (494 | ) |   | $ | 2,593 |   |

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SIGNATURES

| Dated:         March 2,      2010 | HICKORYTECH      CORPORATION |
|--------------------------------------------------|------------------------------|

|   | By:   /s/ David A.      Christensen |
|--------|----------------------------------------------------|
|   | David      A. Christensen, Secretary               |
|   | Senior      Vice President, Chief Financial        |
|   | Officer      and Treasurer                         |

| /s/ James W. BrackeJames      W. Bracke, Chair                                                                                                                                                       | March      2, 2010  |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------|
| /s/ John W. FinkeJohn      W. FinkePresident,      Chief Executive Officer and Director(principal      executive officer)                                                                            | March      2, 2010  |
| /s/ David A. ChristensenDavid      A. Christensen, Secretary, Senior Vice President, Chief Financial Officer      and Treasurer (principal financial officer and principal accounting      officer)  | March      2, 2010  |
| /s/ R. Wynn Kearney, Jr.R.      Wynn Kearney, Jr., Director                                                                                                                                          | March      2, 2010  |
| /s/ Robert D. AltonRobert      D. Alton, Director                                                                                                                                                    | March      2, 2010  |
| /s/ Lyle T. BosackerLyle      T. Bosacker, Director                                                                                                                                                  | March      2, 2010  |
| /s/ Dale E. ParkerDale      E. Parker, Director                                                                                                                                                           | March      2, 2010  |

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