Exhibit99

 

**Cautionary Statement for Purposesof the “Safe Harbor” Provision of the Private**

**Securities Litigation Reform Act of1995**

 

Forward-LookingStatements

 

This report onForm 10-K and other documents filed by HickoryTech under the federal securitieslaws, including Form 10-Q and Form 8-K, and future oral or written statementsby HickoryTech and its management, may include forward-looking statements.These statements may include, without limitation, statements with respect toanticipated future operating and financial performance, growth opportunitiesand growth rates, acquisition and divestiture opportunities, businessstrategies, business and competitive outlook and other similar forecasts andstatements of expectation. Words such as expects, anticipates, intends, plans,believes, seeks, estimates and should and variations of these words and similarexpressions are intended to identify these forward-looking statements. Suchforward-looking statements are subject to uncertainties that could cause HickoryTech’sactual results to differ materially from such statements.

 

Uncertaintiescausing differing results from those expressed in the forward-lookingstatements include, but are not limited to, those uncertainties set forthbelow:

 

•                       The effects of on-going deregulation in the telecommunicationsindustry as a result of the Federal Telecommunications Act of 1996 (the“Telecommunications Act”) (which allows competition among telephone companiesfor the rights to offer telephone service to customers in a franchised servicearea) and other similar federal and state legislation and regulations,including, without limitation, (i) greater than anticipated competition inHickoryTech’s predominately rural local exchange telephone markets, (ii)greater than anticipated reductions in revenues received from federal and stateaccess charges for switching long distance traffic, (iii) the final outcome ofregulatory and judicial proceedings with respect to interconnection agreementsand access charge reforms, and (iv) future state regulatory actions taken inresponse to the Telecommunications Act.

 

•                       HickoryTech’s ability to successfully introduce new products andservices, including, without limitation, (i) the ability of Crystal (whichstarted its competitive local exchange carrier (CLEC) business in January 1998)to provide competitive local service in new markets, (ii) the ability of NIBI(which is a billing and data services company) to implement, market, and sellits new SuiteSolution billing system, (iii) the ability of MSWC (a cellulartelephone company purchased in May 1998) to successfully implement, market, andsell its new digital wireless network products and service, (iv) the ability ofHickoryTech to offer bundled service packages on terms attractive to its customers,(v) the ability of HickoryTech to expand successfully its long distance andInternet offerings to new markets and (vi) the ability of HickoryTech tointroduce and sell the equipment and systems of Nortel, Bay Networks, Octel andCisco versus the competitive alternatives of other suppliers.

 

•                       Possible changes in the demand for HickoryTech’s products andservices, including, without limitation, lower than anticipated demand for, (i)premium telephone services, additional access lines per household or minutes ofuse volume associated with telephone service, (ii) wireless telephone service,installations and/or the traffic associated with service, (iii) data processingservices or billing systems, and (iv) communication and data equipment.

 

•                       The effects of greater than anticipated competition, including,without limitation, competition requiring new pricing or marketing strategiesor new product offerings, the attendant risk that HickoryTech will not be ableto respond on a timely or profitable basis and the competitive effect ofrelationships with other carriers causing new pricing on services such aswireless roaming agreements and interexchange access charges.

 

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•                       The risks inherent in rapid technological change, including,without limitation, the risk that technologies will not be procured byHickoryTech on a timely or cost-effective basis or perform according toexpectations.

 

•                       Regulatory limits on HickoryTech’s ability to change its pricesfor telephone services in response to competitive pressures.

 

•                       HickoryTech’s ability to effectively manage its growth, including,without limitation, HickoryTech’s ability to (i) integrate the operations ofCrystal and MSWC into HickoryTech’s operations, (ii) manage NIBI’s developmentof and migration to SuiteSolution as its new primary software platform, (iii)achieve projected economies of scale and cost savings, (iv) meet pro forma cashflow projections developed by management in valuing newly-acquired businesses,(v) conform with existing debt covenants and negotiate new debt facilitieswhich conform with evolving business plans, (vi) implement necessary internalcontrols and retain and attract key personnel and (vii) identify futureacquisition opportunities for growth.

 

•                       Any difficulties in HickoryTech’s ability to expand throughadditional acquisitions, whether caused by financing constraints, a decrease inthe pool of attractive target companies, or competition for acquisitions fromother interested buyers.

 

•                       The lack of assurance that HickoryTech can compete effectivelyagainst superior capitalized competitors or competitors with a larger nationalor regional market niche.

 

•                       The effects of more general factors, including, withoutlimitation:

 

–               Changesin general industry and market conditions and growth rates.

–               Changesin interest rates or other general national, regional, or local economicconditions.

–               Changesin legislation, regulation or public policy.

–               Unanticipatedincreases in capital, operating or administrative costs, or the impact of new businessopportunities requiring significant up-front investments.

–               Thecontinued availability of financing in amounts, terms and conditions necessaryto support HickoryTech’s operations.

–               Changesin HickoryTech’s relationships with vendors.

–               Changesin HickoryTech’s debt ratios and the resultant effect on debt ratings.

–               Unfavorableoutcomes of regulatory or legal proceedings.

–               Changesin accounting policies or practices adopted voluntarily or as required bygenerally accepted accounting principles.

 

Due to theuncertainties listed above and the fact that any forward-looking statements byHickoryTech and its management are based on estimates, projections, beliefs andassumptions of management and are not guarantees of future performance. Exceptas required by law, HickoryTech disclaims any obligation to update or reviseany obligations to update or revise any forward-looking statements based on theoccurrence of future events, the receipt of new information, or otherwise.

 

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