##### Table of Contents









UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 10-Q


|  |  |                                                                                             
|- |  | --------------------------------------------------------------------------------------------
|þ |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934 
| 
|  |  | For the Quarterly Period Ended March 31, 2006                                               
| 
|o |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
| 
|  |  | For the transition period
    from           to                                             

Commission file number. 000-29225





Dobson Communications Corporation


(Exact name of registrant as specified in its charter)


|                                                                                       |  |                                         
|-------------------------------------------------------------------------------------- |  | ----------------------------------------
|Oklahoma                                                                               |  | 73-1513309                              
|(State or other jurisdiction of
    incorporation or organization)                     |  | (I.R.S. Employer
    Identification No.)
|                                                                                      
|14201 Wireless Way
    Oklahoma City, Oklahoma(Address of principal executive offices) |  | 73134(Zip Code)                         

(405) 529-8500


(Registrants telephone number, including area code)





þ o


12b-2


o þ o


12b-2 o þ












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DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


INDEX TO
FORM 10-Q


|                                  |  |                                                                                           |  |                                                                                                            |    |  |   | 
|--------------------------------- |  | ----------------------------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------- | -- |  | - | 
|Item                              |  |                                                                                           |  |                                                                                                           
|Number                            |  |                                                                                           |  | Page                                                                                                      
|                                  |  |                                                                                           |  |                                                                                                           
|PART I. FINANCIAL
    INFORMATION
|1                                 |  | Condensed Consolidated Financial Statements
    (Unaudited):                              |  |                                                                                                            |    | 
|                                  |  |                                                                                           |  | Condensed Consolidated Balance Sheets as of
    March 31, 2006 and December 31, 2005                       |    |  | 2 | 
|                                  |  |                                                                                           |  | Condensed Consolidated Statements of
    Operations for the Three Months Ended March 31, 2006 and
    2005 |    |  | 3 | 
|                                  |  |                                                                                           |  | Condensed Consolidated Statement of
    Stockholders Equity for the Three Months Ended
    March 31, 2006 |    |  | 4 | 
|                                  |  |                                                                                           |  | Condensed Consolidated Statements of Cash
    Flows for the Three Months Ended March 31, 2006 and 2005     |    |  | 5 | 
|                                  |  |                                                                                           |  | Notes to Condensed Consolidated Financial
    Statements                                                   |    |  | 6 | 
|2                                 |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations |  |                                                                                                            | 20 | 
|3                                 |  | Quantitative and Qualitative Disclosure
    about Market Risk                             |  |                                                                                                            | 31 | 
|4                                 |  | Controls and Procedures                                                                   |  |                                                                                                            | 31 | 
|                                 
|PART II. OTHER INFORMATION       
|1                                 |  | Legal Proceedings                                                                         |  |                                                                                                            | 32 | 
|1A                                |  | Risk Factors                                                                              |  |                                                                                                            | 32 | 
|2                                 |  | Unregistered Sales of Equity Securities and
    Use of Proceeds                           |  |                                                                                                            | 32 | 
|3                                 |  | Defaults Upon Senior Securities                                                           |  |                                                                                                            | 32 | 
|4                                 |  | Submission of Matters to a Vote of Security
    Holders                                   |  |                                                                                                            | 32 | 
|5                                 |  | Other Information                                                                         |  |                                                                                                            | 33 | 
|6                                 |  | Exhibits                                                                                  |  |                                                                                                            | 33 | 
|Rule 13a-14(a) Certification     
|Rule 13a-14(a) Certification     
|Section 1350 Certification       
|Section 1350 Certification       



1



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##### Table of Contents






PART I. FINANCIAL INFORMATION







|        |                     
|------- | --------------------
|Item 1. | Financial Statements

DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES





CONDENSED CONSOLIDATED BALANCE SHEETS


|                                                                                       |                                                                                                                                                                                     |                            |                                            |         |                   |               |                |         |               |               | 
|-------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------- | ------------------------------------------ | ------- | ----------------- | ------------- | -------------- | ------- | ------------- | ------------- | 
|                                                                                       |                                                                                                                                                                                     | March 31, 2006             |                                            |         | December 31, 2005 |              
|                                                                                       |                                                                                                                                                                                     |                            |                                            |         |                   |              
|                                                                                       |                                                                                                                                                                                     | (Unaudited)                |                                            |         |                  
|ASSETS                                                                                
|CURRENT ASSETS:                                                                        |                                                                                                                                                                                     |                            |                                            |         |                   |               |                |        
|Cash and cash equivalents                                                              |                                                                                                                                                                                     | $                          | 179,489,934                                |         |                   | $             | 196,450,044    |        
|Accounts receivable                                                                    |                                                                                                                                                                                     |                            | 103,378,994                                |         |                   |               | 125,597,696    |        
|Inventory                                                                              |                                                                                                                                                                                     |                            | 22,719,186                                 |         |                   |               | 15,876,286     |        
|Deferred tax assets                                                                    |                                                                                                                                                                                     |                            | 9,234,000                                  |         |                   |               | 9,234,000      |        
|Prepaid expenses and other                                                             |                                                                                                                                                                                     |                            | 12,584,736                                 |         |                   |               | 8,215,153      |        
|                                                                                       |                                                                                                                                                                                     |                            |                                            |         |                   |              
|                                                                                       |                                                                                                                                                                                     | Total current assets       |                                            |         | 327,406,850       |               |                |         | 355,373,179   |              
|                                                                                       |                                                                                                                                                                                     |                            |                                            |         |                   |              
|PROPERTY, PLANT AND EQUIPMENT, net (Note 4)                                            |                                                                                                                                                                                     |                            | 475,642,567                                |         |                   |               | 483,790,376    |        
|                                                                                       |                                                                                                                                                                                     |                            |                                            |         |                   |              
|OTHER ASSETS:                                                                          |                                                                                                                                                                                     |                            |                                            |         |                   |               |                |        
|Restricted investments                                                                 |                                                                                                                                                                                     |                            | 4,328,138                                  |         |                   |               | 4,511,414      |        
|Wireless license acquisition costs                                                     |                                                                                                                                                                                     |                            | 1,815,154,926                              |         |                   |               | 1,815,152,364  |        
|Goodwill                                                                               |                                                                                                                                                                                     |                            | 621,317,578                                |         |                   |               | 621,317,578    |        
|Deferred financing costs, net                                                          |                                                                                                                                                                                     |                            | 38,959,123                                 |         |                   |               | 40,243,593     |        
|Customer list, net                                                                     |                                                                                                                                                                                     |                            | 52,331,475                                 |         |                   |               | 60,906,029     |        
|Other non-current assets                                                               |                                                                                                                                                                                     |                            | 4,070,573                                  |         |                   |               | 4,460,064      |        
|                                                                                       |                                                                                                                                                                                     |                            |                                            |         |                   |              
|                                                                                       |                                                                                                                                                                                     | Total other assets         |                                            |         | 2,536,161,813     |               |                |         | 2,546,591,042 |              
|                                                                                       |                                                                                                                                                                                     |                            |                                            |         |                   |              
|                                                                                       |                                                                                                                                                                                     |                            | Total assets                               |         | $                 | 3,339,211,230 |                |         | $             | 3,385,754,597 | 
|                                                                                       |                                                                                                                                                                                     |                            |                                            |         |                   |              
|                                                                                      
|LIABILITIES AND STOCKHOLDERS EQUITY                                                  
|CURRENT LIABILITIES:                                                                   |                                                                                                                                                                                     |                            |                                            |         |                   |               |                |        
|Accounts payable                                                                       |                                                                                                                                                                                     | $                          | 104,276,418                                |         |                   | $             | 104,728,072    |        
|Accrued expenses                                                                       |                                                                                                                                                                                     |                            | 33,560,215                                 |         |                   |               | 33,844,904     |        
|Accrued interest payable                                                               |                                                                                                                                                                                     |                            | 64,566,256                                 |         |                   |               | 63,686,464     |        
|Deferred revenue and customer deposits                                                 |                                                                                                                                                                                     |                            | 35,373,134                                 |         |                   |               | 30,067,359     |        
|Accrued dividends payable                                                              |                                                                                                                                                                                     |                            | 4,353,560                                  |         |                   |               | 8,126,105      |        
|                                                                                       |                                                                                                                                                                                     |                            |                                            |         |                   |              
|                                                                                       |                                                                                                                                                                                     | Total current liabilities  |                                            |         | 242,129,583       |               |                |         | 240,452,904   |              
|                                                                                       |                                                                                                                                                                                     |                            |                                            |         |                   |              
|OTHER LIABILITIES:                                                                     |                                                                                                                                                                                     |                            |                                            |         |                   |               |                |        
|Notes payable (Note 5)                                                                 |                                                                                                                                                                                     |                            | 2,469,729,354                              |         |                   |               | 2,469,474,408  |        
|Deferred tax liabilities                                                               |                                                                                                                                                                                     |                            | 253,765,341                                |         |                   |               | 259,025,826    |        
|Mandatorily redeemable preferred stock, net (Note 6)                                   |                                                                                                                                                                                     |                            |                                           |         |                   |               | 32,793,153     |        
|Minority interest                                                                      |                                                                                                                                                                                     |                            | 6,176,446                                  |         |                   |               | 6,761,636      |        
|Deferred gain on disposition of operating assets and other
    non-current liabilities |                                                                                                                                                                                     |                            | 62,572,370                                 |         |                   |               | 61,603,630     |        
|COMMITMENTS (Note 8)                                                                   |                                                                                                                                                                                     |                            |                                            |         |                   |               |                |        
|SERIES F CONVERTIBLE PREFERRED STOCK (Note 6)                                          |                                                                                                                                                                                     |                            | 135,695,389                                |         |                   |               | 135,695,389    |        
|STOCKHOLDERS EQUITY:                                                                  |                                                                                                                                                                                     |                            |                                            |         |                   |               |                |        
|                                                                                       | Class A common stock, $.001 par value,
    325,000,000 shares authorized and 150,156,738 shares
    issued at March 31, 2006 and 149,912,257 shares issued
    at December 31, 2005 |                            |                                            | 150,157 |                   |               |                | 149,913 |              
|                                                                                       | Convertible Class B common stock, $.001 par value,
    70,000,000 shares authorized and 19,418,021 shares
    issued at March 31, 2006 and December 31, 2005                        |                            |                                            | 19,418  |                   |               |                | 19,418  |              
|                                                                                       | Convertible Class C common stock, $.001 par value,
    4,226 shares authorized and zero shares issued at
    March 31, 2006 and December 31, 2005                                   |                            |                                            |        |                   |               |                |        |              
|                                                                                       | Convertible Class D common stock, $.001 par value,
    33,000 shares authorized and zero shares issued at
    March 31, 2006 and December 31, 2005                                  |                            |                                            |        |                   |               |                |        |              
|Paid-in capital                                                                        |                                                                                                                                                                                     |                            | 1,431,515,349                              |         |                   |               | 1,429,048,308  |        
|Accumulated deficit                                                                    |                                                                                                                                                                                     |                            | (1,262,542,177                             | )       |                   |               | (1,249,269,988 | )      
|                                                                                       |                                                                                                                                                                                     |                            |                                            |         |                   |              
|                                                                                       |                                                                                                                                                                                     | Total stockholders equity |                                            |         | 169,142,747       |               |                |         | 179,947,651   |              
|                                                                                       |                                                                                                                                                                                     |                            |                                            |         |                   |              
|                                                                                       |                                                                                                                                                                                     |                            | Total liabilities and stockholders equity |         | $                 | 3,339,211,230 |                |         | $             | 3,385,754,597 | 
|                                                                                       |                                                                                                                                                                                     |                            |                                            |         |                   |              





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DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES





CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


|                                                                                  |                                                                                         |                          |             |             |                |   |             |             |             | 
|--------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------- | ------------------------ | ----------- | ----------- | -------------- | - | ----------- | ----------- | ----------- | 
|                                                                                  |                                                                                         | Three Months             |             |             | Three Months   |  
|                                                                                  |                                                                                         | Ended                    |             |             | Ended          |  
|                                                                                  |                                                                                         | March 31, 2006           |             |             | March 31, 2005 |  
|                                                                                  |                                                                                         |                          |             |             |                |  
|                                                                                  |                                                                                         | (Unaudited)              |            
|OPERATING REVENUE:                                                                |                                                                                         |                          |             |             |                |   |             |            
|                                                                                  | Service revenue                                                                         |                          | $           | 216,094,901 |                |   | $           | 206,081,986 |            
|                                                                                  | Roaming revenue                                                                         |                          |             | 54,780,372  |                |   |             | 53,430,702  |            
|                                                                                  | Equipment and other revenue                                                             |                          |             | 16,723,754  |                |   |             | 12,245,795  |            
|                                                                                  |                                                                                         |                          |             |             |                |  
|                                                                                  |                                                                                         | Total operating revenue  |             |             | 287,599,027    |   |             |             | 271,758,483 | 
|                                                                                  |                                                                                         |                          |             |             |                |  
|OPERATING EXPENSES:                                                               |                                                                                         |                          |             |             |                |   |             |            
|                                                                                  | Cost of service (exclusive of depreciation and amortization
    shown separately below) |                          |             | 76,073,080  |                |   |             | 72,298,971  |            
|                                                                                  | Cost of equipment                                                                       |                          |             | 32,569,531  |                |   |             | 30,365,742  |            
|                                                                                  | Marketing and selling                                                                   |                          |             | 39,123,070  |                |   |             | 34,093,918  |            
|                                                                                  | General and administrative                                                              |                          |             | 47,324,538  |                |   |             | 44,811,476  |            
|                                                                                  | Depreciation and amortization                                                           |                          |             | 50,275,182  |                |   |             | 51,570,480  |            
|                                                                                  | Gain on disposition of operating assets                                                 |                          |             | (1,663,460  | )              |   |             |            |            
|                                                                                  |                                                                                         |                          |             |             |                |  
|                                                                                  |                                                                                         | Total operating expenses |             |             | 243,701,941    |   |             |             | 233,140,587 | 
|                                                                                  |                                                                                         |                          |             |             |                |  
|OPERATING INCOME                                                                  |                                                                                         |                          | 43,897,086  |             |                |   | 38,617,896  |            
|                                                                                  |                                                                                         |                          |             |             |                |  
|OTHER (EXPENSE) INCOME:                                                           |                                                                                         |                          |             |             |                |   |             |            
|                                                                                  | Interest expense                                                                        |                          |             | (57,406,677 | )              |   |             | (60,741,939 | )          
|                                                                                  | Loss on redemption of mandatorily redeemable preferred stock
    (Note 6)               |                          |             | (1,445,189  | )              |   |             |            |            
|                                                                                  | Dividends on mandatorily redeemable preferred stock (Note 6)                            |                          |             | (709,574    | )              |   |             | (7,931,067  | )          
|                                                                                  | Other income (expense), net                                                             |                          |             | 1,841,993   |                |   |             | (765,996    | )          
|                                                                                  |                                                                                         |                          |             |             |                |  
|LOSS BEFORE MINORITY INTERESTS IN INCOME OF SUBSIDIARIES AND
    INCOME TAXES     |                                                                                         |                          | (13,822,361 | )           |                |   | (30,821,106 | )          
|MINORITY INTERESTS IN INCOME OF SUBSIDIARIES                                      |                                                                                         |                          | (2,364,213  | )           |                |   | (1,829,998  | )          
|                                                                                  |                                                                                         |                          |             |             |                |  
|LOSS BEFORE INCOME TAXES                                                          |                                                                                         |                          | (16,186,574 | )           |                |   | (32,651,104 | )          
|                                                                                  | Income tax benefit                                                                      |                          |             | 5,289,054   |                |   |             | 9,393,615   |            
|                                                                                  |                                                                                         |                          |             |             |                |  
|NET LOSS                                                                          |                                                                                         |                          | (10,897,520 | )           |                |   | (23,257,489 | )          
|                                                                                  | Dividends on preferred stock                                                            |                          |             | (2,374,669  | )              |   |             | (2,144,373  | )          
|                                                                                  |                                                                                         |                          |             |             |                |  
|NET LOSS APPLICABLE TO COMMON STOCKHOLDERS                                        |                                                                                         | $                        | (13,272,189 | )           |                | $ | (25,401,862 | )          
|                                                                                  |                                                                                         |                          |             |             |                |  
|BASIC AND DILUTED NET LOSS APPLICABLE TO COMMON STOCKHOLDERS PER
    COMMON SHARE |                                                                                         | $                        | (0.08       | )           |                | $ | (0.19       | )          
|                                                                                  |                                                                                         |                          |             |             |                |  
|BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING                      |                                                                                         |                          | 169,394,088 |             |                |   | 133,884,962 |            
|                                                                                  |                                                                                         |                          |             |             |                |  



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DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES





CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS
EQUITY


For the Three Months Ended March 31, 2006


|                                   |  |                      |             |  |              |   |         |         |  |       |             |  |  |               |        |  |         |   |               |        |  |   |                |   |  |   |             |  
|---------------------------------- |  | -------------------- | ----------- |  | ------------ | - | ------- | ------- |  | ----- | ----------- |  |  | ------------- | ------ |  | ------- | - | ------------- | ------ |  | - | -------------- | - |  | - | ----------- | -
|                                   |  | Stockholders Equity |            
|                                   |  |                      |            
|                                   |  | Class A              |             |  | Class B      |   |         |        
|                                   |  | Common Stock         |             |  | Common Stock |   |         |         |  | Total |            
|                                   |  |                      |             |  |              |   |         | Paid-in |  |       | Accumulated |  |  | Stockholders |       
|                                   |  | Shares               |             |  | Amount       |   |         | Shares  |  |       | Amount      |  |  | Capital       |        |  | Deficit |   |               | Equity | 
|                                   |  |                      |             |  |              |   |         |         |  |       |             |  |  |               |        |  |         |   |               |        | 
|                                   |  | (Unaudited)          |            
|DECEMBER 31, 2005                  |  |                      | 149,912,257 |  |              | $ | 149,913 |         |  |       | 19,418,021  |  |  | $             | 19,418 |  |         | $ | 1,429,048,308 |        |  | $ | (1,249,269,988 | ) |  | $ | 179,947,651 |  
|Net loss                           |  |                      |            |  |              |   |        |         |  |       |            |  |  |               |       |  |         |   |              |        |  |   | (10,897,520    | ) |  |   | (10,897,520 | )
|Series F preferred stock dividends |  |                      |            |  |              |   |        |         |  |       |            |  |  |               |       |  |         |   |              |        |  |   | (2,374,669     | ) |  |   | (2,374,669  | )
|Share-based compensation           |  |                      |            |  |              |   |        |         |  |       |            |  |  |               |       |  |         |   | 1,821,606     |        |  |   |               |   |  |   | 1,821,606   |  
|Issuance of common stock           |  |                      | 244,481     |  |              |   | 244     |         |  |       |            |  |  |               |       |  |         |   | 645,435       |        |  |   |               |   |  |   | 645,679     |  
|                                   |  |                      |             |  |              |   |         |         |  |       |             |  |  |               |        |  |         |   |               |        | 
|MARCH 31, 2006                     |  |                      | 150,156,738 |  |              | $ | 150,157 |         |  |       | 19,418,021  |  |  | $             | 19,418 |  |         | $ | 1,431,515,349 |        |  | $ | (1,262,542,177 | ) |  | $ | 169,142,747 |  
|                                   |  |                      |             |  |              |   |         |         |  |       |             |  |  |               |        |  |         |   |               |        | 



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DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES





CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                                                                                     |                                                              |                                                     |             |             |             |   |             |             |            |  
|-------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------ | --------------------------------------------------- | ----------- | ----------- | ----------- | - | ----------- | ----------- | ---------- | -
|                                                                                                                     |                                                              | Three Months Ended                                  |            
|                                                                                                                     |                                                              | March 31,                                           |            
|                                                                                                                     |                                                              |                                                     |            
|                                                                                                                     |                                                              | 2006                                                |             |             | 2005        |  
|                                                                                                                     |                                                              |                                                     |             |             |             |  
|                                                                                                                     |                                                              | (Unaudited)                                         |            
|CASH FLOWS FROM OPERATING ACTIVITIES:                                                                                |                                                              |                                                     |             |             |             |   |             |            
|Net loss                                                                                                             |                                                              | $                                                   | (10,897,520 | )           |             | $ | (23,257,489 | )          
|Adjustments to reconcile net loss to net cash provided by
    operating activities, net of effects of acquisitions  |                                                              |                                                     |             |             |             |   |             |            
|                                                                                                                     | Depreciation and amortization                                |                                                     |             | 50,275,182  |             |   |             | 51,570,480  |           
|                                                                                                                     | Amortization of bond discounts and deferred financing costs  |                                                     |             | 1,725,684   |             |   |             | 1,815,601   |           
|                                                                                                                     | Deferred income taxes                                        |                                                     |             | (5,260,485  | )           |   |             | (9,760,424  | )         
|                                                                                                                     | Non-cash mandatorily redeemable preferred stock dividends    |                                                     |             | 709,574     |             |   |             | 7,931,067   |           
|                                                                                                                     | Loss on redemption of mandatorily redeemable preferred stock |                                                     |             | 1,445,189   |             |   |             |            |           
|                                                                                                                     | Gain on disposition of operating assets                      |                                                     |             | (1,663,460  | )           |   |             |            |           
|                                                                                                                     | Share-based compensation                                     |                                                     |             | 1,821,606   |             |   |             |            |           
|                                                                                                                     | Other operating activities                                   |                                                     |             | 2,763,399   |             |   |             | 1,864,302   |           
|Changes in current assets and liabilities                                                                           |                                                              |                                                     |             |             |             |   |             |            
|                                                                                                                     | Accounts receivable                                          |                                                     |             | 22,218,702  |             |   |             | 7,569,900   |           
|                                                                                                                     | Inventory                                                    |                                                     |             | (6,842,900  | )           |   |             | 1,614,078   |           
|                                                                                                                     | Prepaid expenses and other                                   |                                                     |             | (4,186,307  | )           |   |             | (4,937,751  | )         
|                                                                                                                     | Accounts payable                                             |                                                     |             | (451,654    | )           |   |             | 18,586,405  |           
|                                                                                                                     | Accrued expenses                                             |                                                     |             | 1,193,292   |             |   |             | (8,816,609  | )         
|                                                                                                                     | Deferred revenue and customer deposits                       |                                                     |             | 5,305,775   |             |   |             | 650,091     |           
|                                                                                                                     |                                                              |                                                     |             |             |             |  
|                                                                                                                     |                                                              | Net cash provided by operating activities           |             |             | 58,156,077  |   |             |             | 44,829,651 |  
|                                                                                                                     |                                                              |                                                     |             |             |             |  
|CASH FLOWS FROM INVESTING ACTIVITIES:                                                                                |                                                              |                                                     |             |             |             |   |             |            
|                                                                                                                     | Capital expenditures                                         |                                                     |             | (31,302,556 | )           |   |             | (32,558,089 | )         
|                                                                                                                     | Sales of marketable securities                               |                                                     |             |            |             |   |             | 39,000,000  |           
|                                                                                                                     | Other investing activities                                   |                                                     |             | 350,378     |             |   |             | (23,802     | )         
|                                                                                                                     |                                                              |                                                     |             |             |             |  
|                                                                                                                     |                                                              | Net cash (used in) provided by investing activities |             |             | (30,952,178 | ) |             |             | 6,418,109  |  
|                                                                                                                     |                                                              |                                                     |             |             |             |  
|CASH FLOWS FROM FINANCING ACTIVITIES:                                                                                |                                                              |                                                     |             |             |             |   |             |            
|                                                                                                                     | Distributions to minority interest holders                   |                                                     |             | (2,930,101  | )           |   |             | (1,344,685  | )         
|                                                                                                                     | Redemption of mandatorily redeemable preferred stock         |                                                     |             | (41,682,819 | )           |   |             |            |           
|                                                                                                                     | Other financing activities                                   |                                                     |             | 448,911     |             |   |             | 450,347     |           
|                                                                                                                     |                                                              |                                                     |             |             |             |  
|                                                                                                                     |                                                              | Net cash used in financing activities               |             |             | (44,164,009 | ) |             |             | (894,338   | )
|                                                                                                                     |                                                              |                                                     |             |             |             |  
|NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                                                                 |                                                              |                                                     | (16,960,110 | )           |             |   | 50,353,422  |            
|CASH AND CASH EQUIVALENTS, beginning of period                                                                       |                                                              |                                                     | 196,450,044 |             |             |   | 139,884,107 |            
|                                                                                                                     |                                                              |                                                     |             |             |             |  
|CASH AND CASH EQUIVALENTS, end of period                                                                             |                                                              | $                                                   | 179,489,934 |             |             | $ | 190,237,529 |            
|                                                                                                                     |                                                              |                                                     |             |             |             |  
|SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:                                                                   |                                                              |                                                     |             |             |             |   |             |            
|Cash paid for                                                                                                       |                                                              |                                                     |             |             |             |   |             |            
|                                                                                                                     | Interest                                                     |                                                     | $           | 53,970,062  |             |   | $           | 65,439,283  |           
|                                                                                                                     | Income taxes                                                 |                                                     | $           | 4,736       |             |   | $           | 19,050      |           



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DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES





NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Unaudited)




10-K




|   |             
|-- | ------------
|1. | Organization







|   |                         
|-- | ------------------------
|2. | Share-based Compensation





|                                     |  |                 |       |   |      |  |       |  
|------------------------------------ |  | --------------- | ----- | - | ---- |  | ----- | -
|                                     |  | Three Months    |      
|                                     |  | Ended March 31, |      
|                                     |  |                 |      
|                                     |  | 2006            |       |   | 2005 | 
|                                     |  |                 |       |   |      | 
|Expected term (in years)             |  |                 | 6     |   |      |  | 10    |  
|Weighted average expected volatility |  |                 | 124.2 | % |      |  | 133.0 | %
|Expected dividends                   |  |                 | 0     | % |      |  | 0     | %
|Weighted average risk-free rate      |  |                 | 4.6   | % |      |  | 4.1   | %

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DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                                 |  |           |            |          |                |            |                  |                  |  |           |           |  |  |   |            | 
|-------------------------------- |  | --------- | ---------- | -------- | -------------- | ---------- | ---------------- | ---------------- |  | --------- | --------- |  |  | - | ---------- | 
|                                 |  |           |            | Weighted |                |            | Weighted Average |                  |  | Aggregate |          
|                                 |  | Number of |            |          | Average        |            |                  | Remaining        |  |           | Intrinsic | 
|                                 |  | Options   |            |          | Exercise Price |            |                  | Contractual Life |  |           | Value(1)  | 
|                                 |  |           |            |          |                |            |                  |                  |  |           |           | 
|                                 |  |           |            |          |                | (In years) |                  |                  | 
|Outstanding, beginning of period |  |           | 11,620,282 |          |                | $          | 3.13             |                  |  |           |           |  |  |   |            | 
|Granted                          |  |           | 1,466,975  |          |                | $          | 7.43             |                  |  |           |           |  |  |   |            | 
|Exercised                        |  |           | (244,481   | )        |                | $          | 2.64             |                  |  |           |           |  |  |   |            | 
|Forfeited or Expired             |  |           | (237,125   | )        |                | $          | 2.98             |                  |  |           |           |  |  |   |            | 
|                                 |  |           |            |          |                |            |                  |                  |  |           |           | 
|Outstanding, end of period       |  |           | 12,605,651 |          |                | $          | 3.64             |                  |  |           | 8         |  |  | $ | 55,218,687 | 
|                                 |  |           |            |          |                |            |                  |                  |  |           |           | 
|Exercisable, end of period       |  |           | 5,701,894  |          |                | $          | 3.41             |                  |  |           | 7         |  |  | $ | 26,269,802 | 
|                                 |  |           |            |          |                |            |                  |                  |  |           |           | 






|    |                                                                         
|--- | ------------------------------------------------------------------------
|(1) | Calculated using the closing stock price of $8.02 on
    March 31, 2006.





|                                |  |           |            |          |                 |   |      | 
|------------------------------- |  | --------- | ---------- | -------- | --------------- | - | ---- | 
|                                |  |           |            | Weighted |                
|                                |  | Number of |            |          | Average Grant   |  
|                                |  | Options   |            |          | Date Fair Value |  
|                                |  |           |            |          |                 |  
|Non-vested, beginning of period |  |           | 6,879,854  |          |                 | $ | 2.82 | 
|Granted                         |  |           | 1,466,975  |          |                 | $ | 6.61 | 
|Vested                          |  |           | (1,205,948 | )        |                 | $ | 3.09 | 
|Forfeited                       |  |           | (237,125   | )        |                 | $ | 2.91 | 
|                                |  |           |            |          |                 |  
|Non-vested, end of period       |  |           | 6,903,756  |          |                 | $ | 3.59 | 
|                                |  |           |            |          |                 |  





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DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                   |                                                |                      |   |         |  
|---------------------------------------------------------------------------------- | ---------------------------------------------- | -------------------- | - | ------- | -
|                                                                                   |                                                | Three Months Ended   |  
|                                                                                   |                                                | March 31, 2005       |  
|                                                                                   |                                                |                      |  
|                                                                                   |                                                | ($ in thousands,     |  
|                                                                                   |                                                | except for per share |  
|                                                                                   |                                                | amounts)             |  
|Net loss applicable to common stockholders:                                        |                                                |                      |   |        
|                                                                                   | As reported                                    |                      | $ | (25,402 | )
|                                                                                   | Pro forma Share-based compensation, net of tax |                      |   | (1,060  | )
|                                                                                   |                                                |                      |  
|                                                                                   | Pro forma                                      |                      | $ | (26,462 | )
|                                                                                   |                                                |                      |  
|Basic and diluted net loss applicable to common stockholders per
    common share: |                                                |                      |   |        
|                                                                                   | As reported                                    |                      | $ | (0.19   | )
|                                                                                   | Pro forma                                      |                      | $ | (0.20   | )



|   |                      
|-- | ---------------------
|3. | Business Combinations



| |                     
| | --------------------
| | Pending Acquisitions









| |                   
| | ------------------
| | Recent Acquisition

mid-to


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DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|   |                              
|-- | -----------------------------
|4. | Property, Plant and Equipment



|                                    |  |                  |           |   |              |   |           |  
|----------------------------------- |  | ---------------- | --------- | - | ------------ | - | --------- | -
|                                    |  | March 31,        |           |   | December 31, |  
|                                    |  | 2006             |           |   | 2005         |  
|                                    |  |                  |           |   |              |  
|                                    |  | ($ in thousands) |          
|Gross property, plant and equipment |  | $                | 1,118,054 |   |              | $ | 1,080,671 |  
|Accumulated depreciation            |  |                  | (642,411  | ) |              |   | (596,881  | )
|                                    |  |                  |           |   |              |  
|Property, plant and equipment, net  |  | $                | 475,643   |   |              | $ | 483,790   |  
|                                    |  |                  |           |   |              |  



|   |                                  
|-- | ---------------------------------
|5. | Notes Payable and Credit Facility



|                                           |                     |                  |         |           |                   |   |         |           | 
|------------------------------------------ | ------------------- | ---------------- | ------- | --------- | ----------------- | - | ------- | --------- | 
|                                           |                     | March 31, 2006   |         |           | December 31, 2005 |  
|                                           |                     |                  |         |           |                   |  
|                                           |                     | ($ in thousands) |        
|DCC senior floating rate notes             |                     | $                | 150,000 |           |                   | $ | 150,000 |          
|1.50% DCC senior convertible debentures    |                     |                  | 160,000 |           |                   |   | 160,000 |          
|8.875% DCC senior notes                    |                     |                  | 419,681 |           |                   |   | 419,681 |          
|8.375% Dobson Cellular senior notes        |                     |                  | 250,000 |           |                   |   | 250,000 |          
|Dobson Cellular floating rate senior notes |                     |                  | 250,000 |           |                   |   | 250,000 |          
|9.875% Dobson Cellular senior notes        |                     |                  | 325,000 |           |                   |   | 325,000 |          
|10% American Cellular senior notes         |                     |                  | 900,000 |           |                   |   | 900,000 |          
|Other notes payable, net                   |                     |                  | 15,048  |           |                   |   | 14,794  |          
|                                           |                     |                  |         |           |                   |  
|                                           | Total notes payable |                  | $       | 2,469,729 |                   |   | $       | 2,469,475 | 
|                                           |                     |                  |         |           |                   |  

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DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                      
| | ---------------------
| | Restrictive Covenants





| |   |                                                                                                   
| | - | --------------------------------------------------------------------------------------------------
| |  | incur indebtedness;                                                                               
|
| |  | incur or assume liens;                                                                            
|
| |  | pay dividends or make other restricted payments;                                                  
|
| |  | impose dividend or other payment restrictions affecting the
    Companys restricted subsidiaries;
|
| |  | issue and sell capital stock of the Companys restricted
    subsidiaries;                        
|
| |  | issue certain capital stock;                                                                      
|
| |  | issue guarantees of indebtedness;                                                                 
|
| |  | enter into transactions with affiliates;                                                          
|
| |  | sell assets;                                                                                      
|
| |  | engage in un-permitted lines of business;                                                         
|
| |  | enter into sale and leaseback transactions; and                                                   
|
| |  | merge or consolidate with or transfer substantial assets to
    another entity.                   





| |                
| | ---------------
| | Credit Facility













| |   |                           
| | - | --------------------------
| |  | make capital expenditures;
|
| |  | sell or dispose of assets;
|
| |  | incur additional debt;    

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DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |   |                                                                                 
| | - | --------------------------------------------------------------------------------
| |  | create liens;                                                                   
|
| |  | merge with or acquire other companies;                                          
|
| |  | engage in transactions with affiliates, including dividend
    restrictions; and
|
| |  | make loans, advances or stock repurchases.                                      



|   |                           
|-- | --------------------------
|6. | Redeemable Preferred Stock



|                    |  |               |           |  |                |  |         |                |  |  |           |  |  |           |             |            |           |           |                   |      |  |        |         |  |  |  |               |  |  |  |            | 
|------------------- |  | ------------- | --------- |  | -------------- |  | ------- | -------------- |  |  | --------- |  |  | --------- | ----------- | ---------- | --------- | --------- | ----------------- | ---- |  | ------ | ------- |  |  |  | ------------- |  |  |  | ---------- | 
|                    |  | Number of     |           |  | Number of      |  |         | Number of      |  |  |           |  |  |           |             |            |           |           |                  
|                    |  | Shares        |           |  | Shares         |  |         | Shares         |  |  |           |  |  |           |             |            |           |           |                  
|                    |  | Authorized at |           |  | Outstanding at |  |         | Outstanding at |  |  |           |  |  |           | Liquidation |            |           | Mandatory |                   |      | 
|                    |  | March 31,     |           |  | March 31,      |  |         | December 31,   |  |  | Par Value |  |  |           |             | Preference |           |           | Redemption        |      |  | Voting |        
|Class               |  | 2006          |           |  | 2006           |  |         | 2005           |  |  | Per Share |  |  | Dividends |             |            | Per Share |           |                   | Date |  |        | Rights  | 
|                    |  |               |           |  |                |  |         |                |  |  |           |  |  |           |             |            |           |           |                   |      |  |        |         | 
|Senior Exchangeable |  |               |          |  |                |  |        |                |  |  | 5,154     |  |  | $         | 1.00        |            |           |           | 12.25% Cumulative |      |  | $      | 1,000   |  |  |  | Jan. 15, 2008 |  |  |  | Non-voting | 
|Senior Exchangeable |  |               |          |  |                |  |        |                |  |  | 27,847    |  |  | $         | 1.00        |            |           |           | 13% Cumulative    |      |  | $      | 1,000   |  |  |  | May 1, 2009   |  |  |  | Non-voting | 
|Series F            |  |               | 1,900,000 |  |                |  | 759,896 |                |  |  | 759,896   |  |  | $         | 1.00        |            |           |           | 6% Cumulative     |      |  | $      | 178.571 |  |  |  | Aug. 18, 2016 |  |  |  | Non-voting | 
|Other               |  |               | 4,100,000 |  |                |  |        |                |  |  |          |  |  |           |            |            |           |           |                  |      |  |        |        |  |  |  |              |  |  |  |           | 
|                    |  |               |           |  |                |  |         |                |  |  |           |  |  |           |             |            |           |           |                   |      |  |        |         | 
|                    |  |               | 6,000,000 |  |                |  | 759,896 |                |  |  | 792,897   |  |  |           |             |            |           |           |                   |      |  |        |         |  |  |  |               |  |  |  |            | 
|                    |  |               |           |  |                |  |         |                |  |  |           |  |  |           |             |            |           |           |                   |      |  |        |         | 



| |                                                  
| | -------------------------------------------------
| | Redemption of Senior Exchangeable Preferred Stock





| |                             
| | ----------------------------
| | Dividends on Preferred Stock





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DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                   
|-- | ------------------
|7. | Earnings Per Share



|                                           |                                                                                    |                              |         |             |       |   |         |             |       |  
|------------------------------------------ | ---------------------------------------------------------------------------------- | ---------------------------- | ------- | ----------- | ----- | - | ------- | ----------- | ----- | -
|                                           |                                                                                    | Three Months Ended March 31, |        
|                                           |                                                                                    |                              |        
|                                           |                                                                                    | 2006                         |         |             | 2005  |  
|                                           |                                                                                    |                              |         |             |       |  
|                                           |                                                                                    | ($ in thousands, except      |        
|                                           |                                                                                    | per share data)              |        
|Net loss applicable to common stockholders |                                                                                    | $                            | (13,272 | )           |       | $ | (25,402 | )          
|                                           | Basic and diluted net loss applicable to common stockholders per
    common share: |                              |         |             |       |   |         |             |      
|                                           |                                                                                    | Net loss                     |         | $           | (0.07 | ) |         | $           | (0.17 | )
|                                           |                                                                                    | Dividends on preferred stock |         |             | (0.01 | ) |         |             | (0.02 | )
|                                           |                                                                                    |                              |         |             |       |  
|                                           | Basic and diluted net loss applicable to common stockholders per
    common share  |                              | $       | (0.08       | )     |   | $       | (0.19       | )    
|                                           |                                                                                    |                              |         |             |       |  
|                                           | Basic and diluted weighted average common shares outstanding                       |                              |         | 169,394,088 |       |   |         | 133,884,962 |      
|                                           |                                                                                    |                              |         |             |       |  



|   |                              
|-- | -----------------------------
|8. | Commitments and Contingencies



| |            
| | -----------
| | Commitments





| |              
| | -------------
| | Contingencies



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DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|   |                                                           
|-- | ----------------------------------------------------------
|9. | Supplemental Condensed Consolidating Financial Information



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DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATING BALANCE SHEET


As of March 31, 2006


|                                               |                                                                                        |                              |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |           |            |            |            |            |         |           |           |           | 
|---------------------------------------------- | -------------------------------------------------------------------------------------- | ---------------------------- | ---------------------------------------------------- | --------- | --------- | --------- | ------- | ------------ | --------- | --------- | ------ | ------ | ------ | ------------ | --------- | --------- | ------------ | --------- | ---------- | ---------- | ---------- | ---------- | ------- | --------- | --------- | --------- | 
|                                               |                                                                                        |                              |                                                      |           |           | Non-      |         |              |           |           |        |        |       
|                                               |                                                                                        | Dobson                       |                                                      |           | American  |           |         | Guarantor    |           |           |        |        |        |              |          
|                                               |                                                                                        | Cellular                     |                                                      |           | Cellular  |           |         | Subsidiaries |           |           | Parent |        |        | Eliminations |           |           | Consolidated |          
|                                               |                                                                                        |                              |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                               |                                                                                        | ($ in thousands) (Unaudited) |                                                     
|ASSETS                                        
|CURRENT ASSETS:                                |                                                                                        |                              |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |           |            |            |            |            |         |          
|                                               | Cash and cash equivalents                                                              |                              | $                                                    | 89,593    |           |           | $       | 58,269       |           |           | $      | 23,380 |        |              | $         | 8,248     |              |           | $          |           |            |            | $       | 179,490   |          
|                                               | Accounts receivable                                                                    |                              |                                                      | 65,734    |           |           |         | 37,342       |           |           |        | 303    |        |              |           |          |              |           |            |           |            |            |         | 103,379   |          
|                                               | Inventory                                                                              |                              |                                                      | 17,536    |           |           |         | 5,183        |           |           |        |       |        |              |           |          |              |           |            |           |            |            |         | 22,719    |          
|                                               | Prepaid expenses and other                                                             |                              |                                                      | 16,617    |           |           |         | 5,197        |           |           |        | 5      |        |              |           |          |              |           |            |           |            |            |         | 21,819    |          
|                                               |                                                                                        |                              |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                               |                                                                                        | Total current assets         |                                                      |           | 189,480   |           |         |              | 105,991   |           |        |        | 23,688 |              |           |           | 8,248        |           |            |            |           |            |         |           | 327,407   |          
|                                               |                                                                                        |                              |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|PROPERTY, PLANT AND EQUIPMENT, net             |                                                                                        |                              | 320,796                                              |           |           |           | 154,846 |              |           |           |       |        |        |              |          |           |              |           |           |            |            |            | 475,642 |          
|                                               |                                                                                        |                              |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|OTHER ASSETS:                                  |                                                                                        |                              |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |           |            |            |            |            |         |          
|                                               | Net intercompany receivable (payable)                                                  |                              |                                                      | 25,297    |           |           |         | 10,951       |           |           |        | 56,230 |        |              |           | 674,688   |              |           |            | (767,166   | )          |            |         |          |          
|                                               | Restricted investments                                                                 |                              |                                                      | 4,305     |           |           |         | 23           |           |           |        |       |        |              |           |          |              |           |            |           |            |            |         | 4,328     |          
|                                               | Wireless license acquisition costs                                                     |                              |                                                      | 1,119,641 |           |           |         | 681,425      |           |           |        | 9,677  |        |              |           | 4,412     |              |           |            |           |            |            |         | 1,815,155 |          
|                                               | Goodwill                                                                               |                              |                                                      | 45,363    |           |           |         | 574,813      |           |           |        |       |        |              |           | 1,142     |              |           |            |           |            |            |         | 621,318   |          
|                                               | Deferred financing costs, net                                                          |                              |                                                      | 12,811    |           |           |         | 12,855       |           |           |        |       |        |              |           | 13,293    |              |           |            |           |            |            |         | 38,959    |          
|                                               | Customer list, net                                                                     |                              |                                                      | 17,229    |           |           |         | 35,102       |           |           |        |       |        |              |           |          |              |           |            |           |            |            |         | 52,331    |          
|                                               | Other non-current assets                                                               |                              |                                                      | 26,167    |           |           |         | 550          |           |           |        | 1,354  |        |              |           | 1,624,373 |              |           |            | (1,648,373 | )          |            |         | 4,071     |          
|                                               |                                                                                        |                              |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                               |                                                                                        | Total other assets           |                                                      |           | 1,250,813 |           |         |              | 1,315,719 |           |        |        | 67,261 |              |           |           | 2,317,908    |           |            |            | (2,415,539 | )          |         |           | 2,536,162 |          
|                                               |                                                                                        |                              |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                               |                                                                                        |                              | Total assets                                         |           | $         | 1,761,089 |         |              | $         | 1,576,556 |        |        | $      | 90,949       |           |           | $            | 2,326,156 |            |            | $          | (2,415,539 | )       |           | $         | 3,339,211 | 
|                                               |                                                                                        |                              |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                              
|LIABILITIES AND STOCKHOLDERS (DEFICIT) EQUITY
|CURRENT LIABILITIES:                           |                                                                                        |                              |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |           |            |            |            |            |         |          
|                                               | Accounts payable                                                                       |                              | $                                                    | 85,848    |           |           | $       | 18,429       |           |           | $      |       |        |              | $         |          |              |           | $          |           |            |            | $       | 104,277   |          
|                                               | Accrued expenses                                                                       |                              |                                                      | 25,642    |           |           |         | 8,020        |           |           |        | (84    | )      |              |           | (18       | )            |           |            |           |            |            |         | 33,560    |          
|                                               | Accrued interest payable                                                               |                              |                                                      | 26,027    |           |           |         | 15,793       |           |           |        |       |        |              |           | 22,746    |              |           |            |           |            |            |         | 64,566    |          
|                                               | Deferred revenue and customer deposits                                                 |                              |                                                      | 17,740    |           |           |         | 13,926       |           |           |        | 3,707  |        |              |           |          |              |           |            |           |            |            |         | 35,373    |          
|                                               | Accrued dividends payable                                                              |                              |                                                      |          |           |           |         |             |           |           |        |       |        |              |           | 4,354     |              |           |            |           |            |            |         | 4,354     |          
|                                               |                                                                                        |                              |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                               |                                                                                        | Total current liabilities    |                                                      |           | 155,257   |           |         |              | 56,168    |           |        |        | 3,623  |              |           |           | 27,082       |           |            |            |           |            |         |           | 242,130   |          
|                                               |                                                                                        |                              |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|OTHER LIABILITIES:                             |                                                                                        |                              |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |           |            |            |            |            |         |          
|                                               | Notes payable                                                                          |                              |                                                      | 1,592,166 |           |           |         | 915,048      |           |           |        |       |        |              |           | 729,681   |              |           |            | (767,166   | )          |            |         | 2,469,729 |          
|                                               | Deferred tax liabilities                                                               |                              |                                                      | 178,437   |           |           |         | 154,562      |           |           |        | 1,202  |        |              |           | (80,436   | )            |           |            |           |            |            |         | 253,765   |          
|                                               | Deferred gain on disposition of operating assets and other
    non-current liabilities |                              |                                                      | 37,933    |           |           |         | 30,816       |           |           |        |       |        |              |           |          |              |           |            |           |            |            |         | 68,749    |          
|SERIES F CONVERTIBLE PREFERRED STOCK           |                                                                                        |                              |                                                     |           |           |           |        |              |           |           |       |        |        |              | 135,695   |           |              |           |           |            |            |            | 135,695 |          
|STOCKHOLDERS (DEFICIT) EQUITY                 |                                                                                        |                              | (202,704                                             | )         |           |           | 419,962 |              |           |           | 86,124 |        |        |              | 1,514,134 |           |              |           | (1,648,373 | )          |            |            | 169,143 |          
|                                               |                                                                                        |                              |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                               |                                                                                        |                              | Total liabilities and stockholders (deficit) equity |           | $         | 1,761,089 |         |              | $         | 1,576,556 |        |        | $      | 90,949       |           |           | $            | 2,326,156 |            |            | $          | (2,415,539 | )       |           | $         | 3,339,211 | 
|                                               |                                                                                        |                              |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          

14



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##### Table of Contents



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATING BALANCE SHEET


As of December 31, 2005


|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |           |            |            |            |            |         |           |           |           | 
|---------------------------------------------- | -------------------------------------------------------------------------------------- | ------------------------- | ---------------------------------------------------- | --------- | --------- | --------- | ------- | ------------ | --------- | --------- | ------ | ------ | ------ | ------------ | --------- | --------- | ------------ | --------- | ---------- | ---------- | ---------- | ---------- | ------- | --------- | --------- | --------- | 
|                                               |                                                                                        |                           |                                                      |           |           | Non-      |         |              |           |           |        |        |       
|                                               |                                                                                        | Dobson                    |                                                      |           | American  |           |         | Guarantor    |           |           |        |        |        |              |          
|                                               |                                                                                        | Cellular                  |                                                      |           | Cellular  |           |         | Subsidiaries |           |           | Parent |        |        | Eliminations |           |           | Consolidated |          
|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                               |                                                                                        | ($ in thousands)          |                                                     
|ASSETS                                        
|CURRENT ASSETS:                                |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |           |            |            |            |            |         |          
|                                               | Cash and cash equivalents                                                              |                           | $                                                    | 89,814    |           |           | $       | 76,611       |           |           | $      | 21,874 |        |              | $         | 8,151     |              |           | $          |           |            |            | $       | 196,450   |          
|                                               | Accounts receivable                                                                    |                           |                                                      | 78,329    |           |           |         | 47,269       |           |           |        |       |        |              |           |          |              |           |            |           |            |            |         | 125,598   |          
|                                               | Inventory                                                                              |                           |                                                      | 10,810    |           |           |         | 5,066        |           |           |        |       |        |              |           |          |              |           |            |           |            |            |         | 15,876    |          
|                                               | Prepaid expenses and other                                                             |                           |                                                      | 12,572    |           |           |         | 4,867        |           |           |        | 10     |        |              |           |          |              |           |            |           |            |            |         | 17,449    |          
|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                               |                                                                                        | Total current assets      |                                                      |           | 191,525   |           |         |              | 133,813   |           |        |        | 21,884 |              |           |           | 8,151        |           |            |            |           |            |         |           | 355,373   |          
|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|PROPERTY, PLANT AND EQUIPMENT, net             |                                                                                        |                           | 325,504                                              |           |           |           | 158,286 |              |           |           |       |        |        |              |          |           |              |           |           |            |            |            | 483,790 |          
|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|OTHER ASSETS:                                  |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |           |            |            |            |            |         |          
|                                               | Net intercompany receivable (payable)                                                  |                           |                                                      | 10,447    |           |           |         | 2,778        |           |           |        | 55,110 |        |              |           | 698,831   |              |           |            | (767,166   | )          |            |         |          |          
|                                               | Restricted investments                                                                 |                           |                                                      | 4,489     |           |           |         | 22           |           |           |        |       |        |              |           |          |              |           |            |           |            |            |         | 4,511     |          
|                                               | Wireless license acquisition costs                                                     |                           |                                                      | 1,119,640 |           |           |         | 681,424      |           |           |        | 9,676  |        |              |           | 4,412     |              |           |            |           |            |            |         | 1,815,152 |          
|                                               | Goodwill                                                                               |                           |                                                      | 45,362    |           |           |         | 574,813      |           |           |        |       |        |              |           | 1,143     |              |           |            |           |            |            |         | 621,318   |          
|                                               | Deferred financing costs, net                                                          |                           |                                                      | 13,308    |           |           |         | 13,427       |           |           |        |       |        |              |           | 13,509    |              |           |            |           |            |            |         | 40,244    |          
|                                               | Customer list, net                                                                     |                           |                                                      | 19,628    |           |           |         | 41,278       |           |           |        |       |        |              |           |          |              |           |            |           |            |            |         | 60,906    |          
|                                               | Other non-current assets                                                               |                           |                                                      | 26,450    |           |           |         | 643          |           |           |        | 1,368  |        |              |           | 1,624,373 |              |           |            | (1,648,373 | )          |            |         | 4,461     |          
|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                               |                                                                                        | Total other assets        |                                                      |           | 1,239,324 |           |         |              | 1,314,385 |           |        |        | 66,154 |              |           |           | 2,342,268    |           |            |            | (2,415,539 | )          |         |           | 2,546,592 |          
|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                               |                                                                                        |                           | Total assets                                         |           | $         | 1,756,353 |         |              | $         | 1,606,484 |        |        | $      | 88,038       |           |           | $            | 2,350,419 |            |            | $          | (2,415,539 | )       |           | $         | 3,385,755 | 
|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                              
|LIABILITIES AND STOCKHOLDERS (DEFICIT) EQUITY
|CURRENT LIABILITIES:                           |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |           |            |            |            |            |         |          
|                                               | Accounts payable                                                                       |                           | $                                                    | 86,652    |           |           | $       | 18,076       |           |           | $      |       |        |              | $         |          |              |           | $          |           |            |            | $       | 104,728   |          
|                                               | Accrued expenses                                                                       |                           |                                                      | 24,242    |           |           |         | 9,711        |           |           |        | (81    | )      |              |           | (27       | )            |           |            |           |            |            |         | 33,845    |          
|                                               | Accrued interest payable                                                               |                           |                                                      | 12,591    |           |           |         | 37,863       |           |           |        |       |        |              |           | 13,233    |              |           |            |           |            |            |         | 63,687    |          
|                                               | Deferred revenue and customer deposits                                                 |                           |                                                      | 16,176    |           |           |         | 12,680       |           |           |        | 1,211  |        |              |           |          |              |           |            |           |            |            |         | 30,067    |          
|                                               | Accrued dividends payable                                                              |                           |                                                      |          |           |           |         |             |           |           |        |       |        |              |           | 8,126     |              |           |            |           |            |            |         | 8,126     |          
|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                               |                                                                                        | Total current liabilities |                                                      |           | 139,661   |           |         |              | 78,330    |           |        |        | 1,130  |              |           |           | 21,332       |           |            |            |           |            |         |           | 240,453   |          
|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|OTHER LIABILITIES:                             |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |           |            |            |            |            |         |          
|                                               | Notes payable                                                                          |                           |                                                      | 1,592,166 |           |           |         | 914,794      |           |           |        |       |        |              |           | 729,681   |              |           |            | (767,166   | )          |            |         | 2,469,475 |          
|                                               | Deferred tax liabilities                                                               |                           |                                                      | 182,574   |           |           |         | 157,685      |           |           |        | 1,043  |        |              |           | (82,276   | )            |           |            |           |            |            |         | 259,026   |          
|                                               | Mandatorily redeemable preferred stock, net                                            |                           |                                                      |          |           |           |         |             |           |           |        |       |        |              |           | 32,793    |              |           |            |           |            |            |         | 32,793    |          
|                                               | Deferred gain on disposition of operating assets and other
    non-current liabilities |                           |                                                      | 37,622    |           |           |         | 30,743       |           |           |        |       |        |              |           |          |              |           |            |           |            |            |         | 68,365    |          
|SERIES F CONVERTIBLE PREFERRED STOCK           |                                                                                        |                           |                                                     |           |           |           |        |              |           |           |       |        |        |              | 135,695   |           |              |           |           |            |            |            | 135,695 |          
|STOCKHOLDERS (DEFICIT) EQUITY                 |                                                                                        |                           | (195,670                                             | )         |           |           | 424,932 |              |           |           | 85,865 |        |        |              | 1,513,194 |           |              |           | (1,648,373 | )          |            |            | 179,948 |          
|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                               |                                                                                        |                           | Total liabilities and stockholders (deficit) equity |           | $         | 1,756,353 |         |              | $         | 1,606,484 |        |        | $      | 88,038       |           |           | $            | 2,350,419 |            |            | $          | (2,415,539 | )       |           | $         | 3,385,755 | 
|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          

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##### Table of Contents



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


For the Three Months Ended March 31, 2006


|                                                                                       |                                                                                         |                          |         |         |          |      |        |              |         |   |        |      |      |              |       |         |              |   |   |         |        |   |         |         |         | 
|-------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------- | ------------------------ | ------- | ------- | -------- | ---- | ------ | ------------ | ------- | - | ------ | ---- | ---- | ------------ | ----- | ------- | ------------ | - | - | ------- | ------ | - | ------- | ------- | ------- | 
|                                                                                       |                                                                                         |                          |         |         |          | Non- |        |              |         |   |        |      |     
|                                                                                       |                                                                                         | Dobson                   |         |         | American |      |        | Guarantor    |         |   |        |      |      |              |      
|                                                                                       |                                                                                         | Cellular                 |         |         | Cellular |      |        | Subsidiaries |         |   | Parent |      |      | Eliminations |       |         | Consolidated |  
|                                                                                       |                                                                                         |                          |         |         |          |      |        |              |         |   |        |      |      |              |       |         |              |  
|                                                                                       |                                                                                         | ($ in thousands)         |        
|                                                                                       |                                                                                         | (Unaudited)              |        
|OPERATING REVENUE:                                                                     |                                                                                         |                          |         |         |          |      |        |              |         |   |        |      |      |              |       |         |              |   |   |         |        |   |         |        
|                                                                                       | Service revenue                                                                         |                          | $       | 128,622 |          |      | $      | 87,473       |         |   | $      |     |      |              | $     |        |              |   | $ |        |        |   | $       | 216,095 |        
|                                                                                       | Roaming revenue                                                                         |                          |         | 31,797  |          |      |        | 22,983       |         |   |        |     |      |              |       |        |              |   |   |        |        |   |         | 54,780  |        
|                                                                                       | Equipment and other revenue                                                             |                          |         | 14,478  |          |      |        | 5,848        |         |   |        |     |      |              |       |        |              |   |   | (3,602  | )      |   |         | 16,724  |        
|                                                                                       |                                                                                         |                          |         |         |          |      |        |              |         |   |        |      |      |              |       |         |              |  
|                                                                                       |                                                                                         | Total operating revenue  |         |         | 174,897  |      |        |              | 116,304 |   |        |      |     |              |       |         |             |   |   |         | (3,602 | ) |         |         | 287,599 | 
|                                                                                       |                                                                                         |                          |         |         |          |      |        |              |         |   |        |      |      |              |       |         |              |  
|OPERATING EXPENSES:                                                                    |                                                                                         |                          |         |         |          |      |        |              |         |   |        |      |      |              |       |         |              |   |   |         |        |   |         |        
|                                                                                       | Cost of service (exclusive of depreciation and amortization
    shown separately below) |                          |         | 48,206  |          |      |        | 29,723       |         |   |        |     |      |              |       |        |              |   |   | (1,856  | )      |   |         | 76,073  |        
|                                                                                       | Cost of equipment                                                                       |                          |         | 20,356  |          |      |        | 12,214       |         |   |        |     |      |              |       |        |              |   |   |        |        |   |         | 32,570  |        
|                                                                                       | Marketing and selling                                                                   |                          |         | 23,083  |          |      |        | 16,276       |         |   |        | (236 | )    |              |       |        |              |   |   |        |        |   |         | 39,123  |        
|                                                                                       | General and administrative                                                              |                          |         | 27,739  |          |      |        | 21,327       |         |   |        | 5    |      |              |       |        |              |   |   | (1,746  | )      |   |         | 47,325  |        
|                                                                                       | Depreciation and amortization                                                           |                          |         | 28,778  |          |      |        | 21,454       |         |   |        | 43   |      |              |       |        |              |   |   |        |        |   |         | 50,275  |        
|                                                                                       | Gain on disposition of operating assets                                                 |                          |         | (915    | )        |      |        | (749         | )       |   |        |     |      |              |       |        |              |   |   |        |        |   |         | (1,664  | )      
|                                                                                       |                                                                                         |                          |         |         |          |      |        |              |         |   |        |      |      |              |       |         |              |  
|                                                                                       |                                                                                         | Total operating expenses |         |         | 147,247  |      |        |              | 100,245 |   |        |      | (188 | )            |       |         |             |   |   |         | (3,602 | ) |         |         | 243,702 | 
|                                                                                       |                                                                                         |                          |         |         |          |      |        |              |         |   |        |      |      |              |       |         |              |  
|OPERATING INCOME                                                                       |                                                                                         |                          | 27,650  |         |          |      | 16,059 |              |         |   | 188    |      |      |              |      |         |              |   |  |         |        |   | 43,897  |        
|                                                                                       |                                                                                         |                          |         |         |          |      |        |              |         |   |        |      |      |              |       |         |              |  
|OTHER (EXPENSE) INCOME:                                                                |                                                                                         |                          |         |         |          |      |        |              |         |   |        |      |      |              |       |         |              |   |   |         |        |   |         |        
|                                                                                       | Interest expense                                                                        |                          |         | (38,434 | )        |      |        | (23,785      | )       |   |        |     |      |              |       | (13,698 | )            |   |   | 18,510  |        |   |         | (57,407 | )      
|                                                                                       | Loss on redemption of mandatorily redeemable preferred stock                            |                          |         |        |          |      |        |             |         |   |        |     |      |              |       | (1,445  | )            |   |   |        |        |   |         | (1,445  | )      
|                                                                                       | Dividends on mandatorily redeemable preferred stock                                     |                          |         |        |          |      |        |             |         |   |        |     |      |              |       | (709    | )            |   |   |        |        |   |         | (709    | )      
|                                                                                       | Other income (expense), net                                                             |                          |         | 1,840   |          |      |        | (258         | )       |   |        | 231  |      |              |       | 18,539  |              |   |   | (18,510 | )      |   |         | 1,842   |        
|                                                                                       |                                                                                         |                          |         |         |          |      |        |              |         |   |        |      |      |              |       |         |              |  
|(LOSS) INCOME BEFORE MINORITY INTERESTS IN INCOME OF
    SUBSIDIARIES AND INCOME TAXES |                                                                                         |                          | (8,944  | )       |          |      | (7,984 | )            |         |   | 419    |      |      |              | 2,687 |         |              |   |  |         |        |   | (13,822 | )      
|MINORITY INTERESTS IN INCOME OF SUBSIDIARIES                                           |                                                                                         |                          | (2,364  | )       |          |      |       |              |         |   |       |      |      |              |      |         |              |   |  |         |        |   | (2,364  | )      
|                                                                                       |                                                                                         |                          |         |         |          |      |        |              |         |   |        |      |      |              |       |         |              |  
|(LOSS) INCOME BEFORE INCOME TAXES                                                      |                                                                                         |                          | (11,308 | )       |          |      | (7,984 | )            |         |   | 419    |      |      |              | 2,687 |         |              |   |  |         |        |   | (16,186 | )      
|                                                                                       | Income tax benefit (expense)                                                            |                          |         | 4,273   |          |      |        | 3,015        |         |   |        | (159 | )    |              |       | (1,840  | )            |   |   |        |        |   |         | 5,289   |        
|                                                                                       |                                                                                         |                          |         |         |          |      |        |              |         |   |        |      |      |              |       |         |              |  
|NET (LOSS) INCOME                                                                      |                                                                                         | $                        | (7,035  | )       |          | $    | (4,969 | )            |         | $ | 260    |      |      | $            | 847   |         |              | $ |  |         |        | $ | (10,897 | )      
|                                                                                       |                                                                                         |                          |         |         |          |      |        |              |         |   |        |      |      |              |       |         |              |  

16



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##### Table of Contents



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


For the Three Months Ended March 31, 2005


|                                                                                       |                                                                                         |                          |         |         |          |      |        |              |         |   |        |     |   |              |        |         |              |   |     |         |        |   |         |         |         | 
|-------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------- | ------------------------ | ------- | ------- | -------- | ---- | ------ | ------------ | ------- | - | ------ | --- | - | ------------ | ------ | ------- | ------------ | - | --- | ------- | ------ | - | ------- | ------- | ------- | 
|                                                                                       |                                                                                         |                          |         |         |          | Non- |        |              |         |   |        |     |  
|                                                                                       |                                                                                         | Dobson                   |         |         | American |      |        | Guarantor    |         |   |        |     |   |              |       
|                                                                                       |                                                                                         | Cellular                 |         |         | Cellular |      |        | Subsidiaries |         |   | Parent |     |   | Eliminations |        |         | Consolidated |  
|                                                                                       |                                                                                         |                          |         |         |          |      |        |              |         |   |        |     |   |              |        |         |              |  
|                                                                                       |                                                                                         | ($ in thousands)         |        
|                                                                                       |                                                                                         | (Unaudited)              |        
|OPERATING REVENUE:                                                                     |                                                                                         |                          |         |         |          |      |        |              |         |   |        |     |   |              |        |         |              |   |     |         |        |   |         |        
|                                                                                       | Service revenue                                                                         |                          | $       | 119,524 |          |      | $      | 86,558       |         |   | $      |    |   |              | $      |        |              |   | $   |        |        |   | $       | 206,082 |        
|                                                                                       | Roaming revenue                                                                         |                          |         | 30,911  |          |      |        | 22,519       |         |   |        |    |   |              |        |        |              |   |     |        |        |   |         | 53,430  |        
|                                                                                       | Equipment and other revenue                                                             |                          |         | 10,250  |          |      |        | 5,008        |         |   |        |    |   |              |        |        |              |   |     | (3,012  | )      |   |         | 12,246  |        
|                                                                                       |                                                                                         |                          |         |         |          |      |        |              |         |   |        |     |   |              |        |         |              |  
|                                                                                       |                                                                                         | Total operating revenue  |         |         | 160,685  |      |        |              | 114,085 |   |        |     |  |              |        |         |             |   |     |         | (3,012 | ) |         |         | 271,758 | 
|                                                                                       |                                                                                         |                          |         |         |          |      |        |              |         |   |        |     |   |              |        |         |              |  
|OPERATING EXPENSES:                                                                    |                                                                                         |                          |         |         |          |      |        |              |         |   |        |     |   |              |        |         |              |   |     |         |        |   |         |        
|                                                                                       | Cost of service (exclusive of depreciation and amortization
    shown separately below) |                          |         | 43,978  |          |      |        | 29,619       |         |   |        |    |   |              |        |        |              |   |     | (1,298  | )      |   |         | 72,299  |        
|                                                                                       | Cost of equipment                                                                       |                          |         | 18,708  |          |      |        | 11,658       |         |   |        |    |   |              |        |        |              |   |     |        |        |   |         | 30,366  |        
|                                                                                       | Marketing and selling                                                                   |                          |         | 19,721  |          |      |        | 14,373       |         |   |        |    |   |              |        |        |              |   |     |        |        |   |         | 34,094  |        
|                                                                                       | General and administrative                                                              |                          |         | 25,279  |          |      |        | 21,241       |         |   |        | 5   |   |              |        |        |              |   |     | (1,714  | )      |   |         | 44,811  |        
|                                                                                       | Depreciation and amortization                                                           |                          |         | 30,315  |          |      |        | 21,255       |         |   |        |    |   |              |        |        |              |   |     |        |        |   |         | 51,570  |        
|                                                                                       |                                                                                         |                          |         |         |          |      |        |              |         |   |        |     |   |              |        |         |              |  
|                                                                                       |                                                                                         | Total operating expenses |         |         | 138,001  |      |        |              | 98,146  |   |        |     | 5 |              |        |         |             |   |     |         | (3,012 | ) |         |         | 233,140 | 
|                                                                                       |                                                                                         |                          |         |         |          |      |        |              |         |   |        |     |   |              |        |         |              |  
|OPERATING INCOME (LOSS)                                                                |                                                                                         |                          | 22,684  |         |          |      | 15,939 |              |         |   | (5     | )   |   |              |       |         |              |   |    |         |        |   | 38,618  |        
|                                                                                       |                                                                                         |                          |         |         |          |      |        |              |         |   |        |     |   |              |        |         |              |  
|OTHER (EXPENSE) INCOME:                                                                |                                                                                         |                          |         |         |          |      |        |              |         |   |        |     |   |              |        |         |              |   |     |         |        |   |         |        
|                                                                                       | Interest expense                                                                        |                          |         | (37,025 | )        |      |        | (23,784      | )       |   |        |    |   |              |        | (18,443 | )            |   |     | 18,510  |        |   |         | (60,742 | )      
|                                                                                       | Dividends on mandatorily redeemable preferred stock                                     |                          |         |        |          |      |        |             |         |   |        |    |   |              |        | (7,931  | )            |   |     |        |        |   |         | (7,931  | )      
|                                                                                       | Other income (expense), net                                                             |                          |         | 1,726   |          |      |        | (652         | )       |   |        | 237 |   |              |        | 16,460  |              |   |     | (18,537 | )      |   |         | (766    | )      
|                                                                                       |                                                                                         |                          |         |         |          |      |        |              |         |   |        |     |   |              |        |         |              |  
|(LOSS) INCOME BEFORE MINORITY INTERESTS IN INCOME OF
    SUBSIDIARIES AND INCOME TAXES |                                                                                         |                          | (12,615 | )       |          |      | (8,497 | )            |         |   | 232    |     |   |              | (9,914 | )       |              |   | (27 | )       |        |   | (30,821 | )      
|MINORITY INTERESTS IN INCOME OF SUBSIDIARIES                                           |                                                                                         |                          | (1,830  | )       |          |      |       |              |         |   |       |     |   |              |       |         |              |   |    |         |        |   | (1,830  | )      
|                                                                                       |                                                                                         |                          |         |         |          |      |        |              |         |   |        |     |   |              |        |         |              |  
|(LOSS) INCOME BEFORE INCOME TAXES                                                      |                                                                                         |                          | (14,445 | )       |          |      | (8,497 | )            |         |   | 232    |     |   |              | (9,914 | )       |              |   | (27 | )       |        |   | (32,651 | )      
|                                                                                       | Income tax benefit (expense)                                                            |                          |         | 5,489   |          |      |        | 3,229        |         |   |        | (88 | ) |              |        | 754     |              |   |     | 10      |        |   |         | 9,394   |        
|                                                                                       |                                                                                         |                          |         |         |          |      |        |              |         |   |        |     |   |              |        |         |              |  
|NET (LOSS) INCOME                                                                      |                                                                                         | $                        | (8,956  | )       |          | $    | (5,268 | )            |         | $ | 144    |     |   | $            | (9,160 | )       |              | $ | (17 | )       |        | $ | (23,257 | )      
|                                                                                       |                                                                                         |                          |         |         |          |      |        |              |         |   |        |     |   |              |        |         |              |  

17



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##### Table of Contents



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


For the Three Months Ended March 31, 2006


|                                                     |                                                                                                                                   |                                                              |                                                     |         |          |         |         |              |         |         |        |        |       |              |       |              |        |         |   |   |   |   |         |         |        |         |  
|---------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------ | --------------------------------------------------- | ------- | -------- | ------- | ------- | ------------ | ------- | ------- | ------ | ------ | ----- | ------------ | ----- | ------------ | ------ | ------- | - | - | - | - | ------- | ------- | ------ | ------- | -
|                                                     |                                                                                                                                   |                                                              |                                                     |         |          | Non-    |         |              |         |         |        |        |      
|                                                     |                                                                                                                                   | Dobson                                                       |                                                     |         | American |         |         | Guarantor    |         |         |        |        |       |              |      
|                                                     |                                                                                                                                   | Cellular                                                     |                                                     |         | Cellular |         |         | Subsidiaries |         |         | Parent |        |       | Eliminations |       | Consolidated |       
|                                                     |                                                                                                                                   |                                                              |                                                     |         |          |         |         |              |         |         |        |        |       |              |       |              |       
|                                                     |                                                                                                                                   | ($ in thousands)                                             |                                                    
|                                                     |                                                                                                                                   | (Unaudited)                                                  |                                                    
|CASH FLOWS FROM OPERATING ACTIVITIES:                |                                                                                                                                   |                                                              |                                                     |         |          |         |         |              |         |         |        |        |       |              |       |              |        |         |   |   |   |   |         |        
|                                                     | Net (loss) income                                                                                                                 |                                                              | $                                                   | (7,035  | )        |         | $       | (4,969       | )       |         | $      | 260    |       |              | $     | 847          |        |         | $ |  |   |   | $       | (10,897 | )     
|                                                     | Adjustments to reconcile net (loss) income to net cash provided
    by operating activities, net of effects of
    acquisitions  |                                                              |                                                     |         |          |         |         |              |         |         |        |        |       |              |       |              |        |         |   |   |   |   |         |         |       
|                                                     |                                                                                                                                   | Depreciation and amortization                                |                                                     |         | 28,778   |         |         |              | 21,454  |         |        |        | 43    |              |       |              |       |         |   |   |  |   |         |         | 50,275 |        
|                                                     |                                                                                                                                   | Amortization of bond discounts and financing costs           |                                                     |         | 515      |         |         |              | 846     |         |        |        |      |              |       |              | 365    |         |   |   |  |   |         |         | 1,726  |        
|                                                     |                                                                                                                                   | Deferred income taxes                                        |                                                     |         | (4,135   | )       |         |              | (3,124  | )       |        |        | 159   |              |       |              | 1,840  |         |   |   |  |   |         |         | (5,260 | )      
|                                                     |                                                                                                                                   | Non-cash mandatorily redeemable preferred stock dividends    |                                                     |         |         |         |         |              |        |         |        |        |      |              |       |              | 709    |         |   |   |  |   |         |         | 709    |        
|                                                     |                                                                                                                                   | Loss on redemption of mandatorily redeemable preferred stock |                                                     |         |         |         |         |              |        |         |        |        |      |              |       |              | 1,445  |         |   |   |  |   |         |         | 1,445  |        
|                                                     |                                                                                                                                   | Gain on disposition of operating assets                      |                                                     |         | (904     | )       |         |              | (713    | )       |        |        |      |              |       |              |       |         |   |   |  |   |         |         | (1,617 | )      
|                                                     |                                                                                                                                   | Share-based compensation                                     |                                                     |         |         |         |         |              |        |         |        |        |      |              |       |              | 1,822  |         |   |   |  |   |         |         | 1,822  |        
|                                                     |                                                                                                                                   | Other operating activities                                   |                                                     |         | 2,581    |         |         |              | 135     |         |        |        |      |              |       |              |       |         |   |   |  |   |         |         | 2,716  |        
|                                                     | Changes in current assets and liabilities                                                                                        |                                                              |                                                     |         |          |         |         |              |         |         |        |        |       |              |       |              |        |         |   |   |   |   |         |         |       
|                                                     |                                                                                                                                   | Accounts receivable                                          |                                                     |         | 12,595   |         |         |              | 9,927   |         |        |        | (303  | )            |       |              |       |         |   |   |  |   |         |         | 22,219 |        
|                                                     |                                                                                                                                   | Inventory                                                    |                                                     |         | (6,726   | )       |         |              | (117    | )       |        |        |      |              |       |              |       |         |   |   |  |   |         |         | (6,843 | )      
|                                                     |                                                                                                                                   | Prepaid expenses and other                                   |                                                     |         | (3,861   | )       |         |              | (330    | )       |        |        | 5     |              |       |              |       |         |   |   |  |   |         |         | (4,186 | )      
|                                                     |                                                                                                                                   | Accounts payable                                             |                                                     |         | (804     | )       |         |              | 352     |         |        |        |      |              |       |              |       |         |   |   |  |   |         |         | (452   | )      
|                                                     |                                                                                                                                   | Accrued expenses                                             |                                                     |         | 14,836   |         |         |              | (23,761 | )       |        |        | (4    | )            |       |              | 10,122 |         |   |   |  |   |         |         | 1,193  |        
|                                                     |                                                                                                                                   | Deferred revenue and customer deposits                       |                                                     |         | 1,564    |         |         |              | 1,246   |         |        |        | 2,496 |              |       |              |       |         |   |   |  |   |         |         | 5,306  |        
|                                                     |                                                                                                                                   |                                                              |                                                     |         |          |         |         |              |         |         |        |        |       |              |       |              |        |        
|                                                     |                                                                                                                                   |                                                              | Net cash provided by operating activities           |         |          | 37,404  |         |              |         | 946     |        |        |       | 2,656        |       |              |        | 17,150  |   |   |   |  |         |         |        | 58,156  |  
|                                                     |                                                                                                                                   |                                                              |                                                     |         |          |         |         |              |         |         |        |        |       |              |       |              |        |        
|CASH FLOWS FROM INVESTING ACTIVITIES:                |                                                                                                                                   |                                                              |                                                     |         |          |         |         |              |         |         |        |        |       |              |       |              |        |         |   |   |   |   |         |        
|                                                     | Capital expenditures                                                                                                              |                                                              |                                                     | (20,271 | )        |         |         | (11,032      | )       |         |        |       |       |              |       |             |        |         |   |  |   |   |         | (31,303 | )     
|                                                     | (Increase) decrease in receivable-affiliates                                                                                      |                                                              |                                                     | (14,694 | )        |         |         | (8,330       | )       |         |        | (1,121 | )     |              |       | 24,145       |        |         |   |  |   |   |         |        |       
|                                                     | Other investing activities                                                                                                        |                                                              |                                                     | 288     |          |         |         | 92           |         |         |        | (29    | )     |              |       |             |        |         |   |  |   |   |         | 351     |       
|                                                     |                                                                                                                                   |                                                              |                                                     |         |          |         |         |              |         |         |        |        |       |              |       |              |        |        
|                                                     |                                                                                                                                   |                                                              | Net cash (used in) provided by investing activities |         |          | (34,677 | )       |              |         | (19,270 | )      |        |       | (1,150       | )     |              |        | 24,145  |   |   |   |  |         |         |        | (30,952 | )
|                                                     |                                                                                                                                   |                                                              |                                                     |         |          |         |         |              |         |         |        |        |       |              |       |              |        |        
|CASH FLOWS FROM FINANCING ACTIVITIES:                |                                                                                                                                   |                                                              |                                                     |         |          |         |         |              |         |         |        |        |       |              |       |              |        |         |   |   |   |   |         |        
|                                                     | Distributions to minority interest holders                                                                                        |                                                              |                                                     | (2,930  | )        |         |         |             |         |         |        |       |       |              |       |             |        |         |   |  |   |   |         | (2,930  | )     
|                                                     | Redemption of mandatorily redeemable preferred stock                                                                              |                                                              |                                                     |        |          |         |         |             |         |         |        |       |       |              |       | (41,683      | )      |         |   |  |   |   |         | (41,683 | )     
|                                                     | Other financing activities                                                                                                        |                                                              |                                                     | (18     | )        |         |         | (18          | )       |         |        |       |       |              |       | 485          |        |         |   |  |   |   |         | 449     |       
|                                                     |                                                                                                                                   |                                                              |                                                     |         |          |         |         |              |         |         |        |        |       |              |       |              |        |        
|                                                     |                                                                                                                                   |                                                              | Net cash used in financing activities               |         |          | (2,948  | )       |              |         | (18     | )      |        |       |             |       |              |        | (41,198 | ) |   |   |  |         |         |        | (44,164 | )
|                                                     |                                                                                                                                   |                                                              |                                                     |         |          |         |         |              |         |         |        |        |       |              |       |              |        |        
|NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS |                                                                                                                                   |                                                              | (221                                                | )       |          |         | (18,342 | )            |         |         | 1,506  |        |       |              | 97    |              |        |         |  |   |   |   | (16,960 | )      
|CASH AND CASH EQUIVALENTS, beginning of period       |                                                                                                                                   |                                                              | 89,814                                              |         |          |         | 76,611  |              |         |         | 21,874 |        |       |              | 8,151 |              |        |         |  |   |   |   | 196,450 |        
|                                                     |                                                                                                                                   |                                                              |                                                     |         |          |         |         |              |         |         |        |        |       |              |       |              |        |        
|CASH AND CASH EQUIVALENTS, end of period             |                                                                                                                                   | $                                                            | 89,593                                              |         |          | $       | 58,269  |              |         | $       | 23,380 |        |       | $            | 8,248 |              |        | $       |  |   |   | $ | 179,490 |        
|                                                     |                                                                                                                                   |                                                              |                                                     |         |          |         |         |              |         |         |        |        |       |              |       |              |        |        

18



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##### Table of Contents



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


For the Three Months Ended March 31, 2005


|                                                     |                                                                                                                                                                    |                                                           |                                                     |         |          |         |        |              |         |        |        |        |    |              |       |        |              |      |   |     |    |    |         |         |        |        |  
|---------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------- | --------------------------------------------------- | ------- | -------- | ------- | ------ | ------------ | ------- | ------ | ------ | ------ | -- | ------------ | ----- | ------ | ------------ | ---- | - | --- | -- | -- | ------- | ------- | ------ | ------ | -
|                                                     |                                                                                                                                                                    |                                                           |                                                     |         |          | Non-    |        |              |         |        |        |        |   
|                                                     |                                                                                                                                                                    | Dobson                                                    |                                                     |         | American |         |        | Guarantor    |         |        |        |        |    |              |      
|                                                     |                                                                                                                                                                    | Cellular                                                  |                                                     |         | Cellular |         |        | Subsidiaries |         |        | Parent |        |    | Eliminations |       |        | Consolidated |     
|                                                     |                                                                                                                                                                    |                                                           |                                                     |         |          |         |        |              |         |        |        |        |    |              |       |        |              |     
|                                                     |                                                                                                                                                                    | ($ in thousands)                                          |                                                    
|                                                     |                                                                                                                                                                    | (Unaudited)                                               |                                                    
|CASH FLOWS FROM OPERATING ACTIVITIES:                |                                                                                                                                                                    |                                                           |                                                     |         |          |         |        |              |         |        |        |        |    |              |       |        |              |      |   |     |    |    |         |        
|                                                     | (Loss) income from continuing operations                                                                                                                           |                                                           | $                                                   | (8,956  | )        |         | $      | (5,268       | )       |        | $      | 144    |    |              | $     | (9,160 | )            |      | $ | (17 | )  |    | $       | (23,257 | )     
|                                                     | Adjustments to reconcile (loss) income from continuing
    operations to net cash provided by (used in) operating
    activities, net of effects of acquisitions  |                                                           |                                                     |         |          |         |        |              |         |        |        |        |    |              |       |        |              |      |   |     |    |    |         |         |       
|                                                     |                                                                                                                                                                    | Depreciation and amortization                             |                                                     |         | 30,315   |         |        |              | 21,255  |        |        |        |   |              |       |        |             |      |   |     |   |    |         |         | 51,570 |       
|                                                     |                                                                                                                                                                    | Amortization of bond discounts and financing costs        |                                                     |         | 470      |         |        |              | 846     |        |        |        |   |              |       |        | 500          |      |   |     |   |    |         |         | 1,816  |       
|                                                     |                                                                                                                                                                    | Deferred income taxes                                     |                                                     |         | (5,750   | )       |        |              | (3,335  | )      |        |        | 69 |              |       |        | (754         | )    |   |     | 10 |    |         |         | (9,760 | )     
|                                                     |                                                                                                                                                                    | Non-cash mandatorily redeemable preferred stock dividends |                                                     |         |         |         |        |              |        |        |        |        |   |              |       |        | 7,931        |      |   |     |   |    |         |         | 7,931  |       
|                                                     |                                                                                                                                                                    | Other operating activities                                |                                                     |         | 1,858    |         |        |              | 6       |        |        |        |   |              |       |        |             |      |   |     |   |    |         |         | 1,864  |       
|                                                     | Changes in current assets and liabilities                                                                                                                         |                                                           |                                                     |         |          |         |        |              |         |        |        |        |    |              |       |        |              |      |   |     |    |    |         |         |       
|                                                     |                                                                                                                                                                    | Accounts receivable                                       |                                                     |         | 3,419    |         |        |              | 4,151   |        |        |        |   |              |       |        |             |      |   |     |   |    |         |         | 7,570  |       
|                                                     |                                                                                                                                                                    | Inventory                                                 |                                                     |         | (54      | )       |        |              | 1,668   |        |        |        |   |              |       |        |             |      |   |     |   |    |         |         | 1,614  |       
|                                                     |                                                                                                                                                                    | Prepaid expenses and other                                |                                                     |         | (4,414   | )       |        |              | (529    | )      |        |        | 5  |              |       |        |             |      |   |     |   |    |         |         | (4,938 | )     
|                                                     |                                                                                                                                                                    | Accounts payable                                          |                                                     |         | 10,828   |         |        |              | 7,759   |        |        |        |   |              |       |        |             |      |   |     |   |    |         |         | 18,587 |       
|                                                     |                                                                                                                                                                    | Accrued expenses                                          |                                                     |         | 16,832   |         |        |              | (27,372 | )      |        |        | 39 |              |       |        | 1,684        |      |   |     |   |    |         |         | (8,817 | )     
|                                                     |                                                                                                                                                                    | Deferred revenue and customer deposits                    |                                                     |         | 710      |         |        |              | (60     | )      |        |        |   |              |       |        |             |      |   |     |   |    |         |         | 650    |       
|                                                     |                                                                                                                                                                    |                                                           |                                                     |         |          |         |        |              |         |        |        |        |    |              |       |        |              |     
|                                                     |                                                                                                                                                                    |                                                           | Net cash provided by (used in) operating activities |         |          | 45,258  |        |              |         | (879   | )      |        |    | 257          |       |        |              | 201  |   |     |    | (7 | )       |         |        | 44,830 |  
|                                                     |                                                                                                                                                                    |                                                           |                                                     |         |          |         |        |              |         |        |        |        |    |              |       |        |              |     
|CASH FLOWS FROM INVESTING ACTIVITIES:                |                                                                                                                                                                    |                                                           |                                                     |         |          |         |        |              |         |        |        |        |    |              |       |        |              |      |   |     |    |    |         |        
|                                                     | Capital expenditures                                                                                                                                               |                                                           |                                                     | (23,970 | )        |         |        | (8,588       | )       |        |        |       |    |              |       |       |              |      |   |    |    |    |         | (32,558 | )     
|                                                     | (Increase) decrease in receivable-affiliates                                                                                                                       |                                                           |                                                     | (2,017  | )        |         |        | 2,952        |         |        |        | (7     | )  |              |       | (935   | )            |      |   | 7   |    |    |         |        |       
|                                                     | Investment in Wireless Investment Inc.                                                                                                                             |                                                           |                                                     | (24,000 | )        |         |        |             |         |        |        | 24,000 |    |              |       |       |              |      |   |    |    |    |         |        |       
|                                                     | Sales of marketable securities                                                                                                                                     |                                                           |                                                     | 39,000  |          |         |        |             |         |        |        |       |    |              |       |       |              |      |   |    |    |    |         | 39,000  |       
|                                                     | Other investing activities                                                                                                                                         |                                                           |                                                     | 6       |          |         |        | (30          | )       |        |        |       |    |              |       |       |              |      |   |    |    |    |         | (24     | )     
|                                                     |                                                                                                                                                                    |                                                           |                                                     |         |          |         |        |              |         |        |        |        |    |              |       |        |              |     
|                                                     |                                                                                                                                                                    |                                                           | Net cash (used in) provided by investing activities |         |          | (10,981 | )      |              |         | (5,666 | )      |        |    | 23,993       |       |        |              | (935 | ) |     |    | 7  |         |         |        | 6,418  |  
|                                                     |                                                                                                                                                                    |                                                           |                                                     |         |          |         |        |              |         |        |        |        |    |              |       |        |              |     
|CASH FLOWS FROM FINANCING ACTIVITIES:                |                                                                                                                                                                    |                                                           |                                                     |         |          |         |        |              |         |        |        |        |    |              |       |        |              |      |   |     |    |    |         |        
|                                                     | Distributions to minority interest holders                                                                                                                         |                                                           |                                                     | (1,344  | )        |         |        |             |         |        |        |       |    |              |       |       |              |      |   |    |    |    |         | (1,344  | )     
|                                                     | Other financing activities                                                                                                                                         |                                                           |                                                     | (293    | )        |         |        |             |         |        |        |       |    |              |       | 743    |              |      |   |    |    |    |         | 450     |       
|                                                     |                                                                                                                                                                    |                                                           |                                                     |         |          |         |        |              |         |        |        |        |    |              |       |        |              |     
|                                                     |                                                                                                                                                                    |                                                           | Net cash (used in) provided by financing activities |         |          | (1,637  | )      |              |         |       |        |        |    |             |       |        |              | 743  |   |     |    |   |         |         |        | (894   | )
|                                                     |                                                                                                                                                                    |                                                           |                                                     |         |          |         |        |              |         |        |        |        |    |              |       |        |              |     
|NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |                                                                                                                                                                    |                                                           | 32,640                                              |         |          |         | (6,545 | )            |         |        | 24,250 |        |    |              | 9     |        |              |      |  |     |    |    | 50,354  |        
|CASH AND CASH EQUIVALENTS, beginning of period       |                                                                                                                                                                    |                                                           | 47,427                                              |         |          |         | 41,489 |              |         |        | 48,303 |        |    |              | 2,665 |        |              |      |  |     |    |    | 139,884 |        
|                                                     |                                                                                                                                                                    |                                                           |                                                     |         |          |         |        |              |         |        |        |        |    |              |       |        |              |     
|CASH AND CASH EQUIVALENTS, end of period             |                                                                                                                                                                    | $                                                         | 80,067                                              |         |          | $       | 34,944 |              |         | $      | 72,553 |        |    | $            | 2,674 |        |              | $    |  |     |    | $  | 190,238 |        
|                                                     |                                                                                                                                                                    |                                                           |                                                     |         |          |         |        |              |         |        |        |        |    |              |       |        |              |     



|    |                 
|--- | ----------------
|10. | Subsequent Event



19



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|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 2. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations

The following discussion and analysis presents factors that
we believe are relevant to an assessment and understanding of
our condensed consolidated financial position and results of
operations. This financial and business analysis should be read
in conjunction with our December 31, 2005 consolidated
financial statements included in our Annual Report on
Form 10-K for the
fiscal year ended December 31, 2005 and our condensed
consolidated financial statements and the related notes included
in Item 1.


OVERVIEW






10-Q


RECENT DEVELOPMENTS




CRITICAL ACCOUNTING POLICIES AND PRACTICES


10-K




ACQUISITIONS






| |                                    
| | -----------------------------------
| | Pending Acquisition of Texas 15 RSA



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| |                               
| | ------------------------------
| | Pending Acquisitions in Alaska







| |                                  
| | ---------------------------------
| | Acquisition of Pennsylvania 4 RSA

mid-to




NEW ROAMING AGREEMENT WITH CINGULAR WIRELESS






| |   |                                                                                                                                                                                                                                                                                                                                                                          
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | mutual agreement to lower roaming rates, with us paying Cingular
    a flat incollect rate through mid-2009 that is approximately
    half the blended rate in previous roaming agreements;                                                                                                                                                                              
|
| |  | agreement to continue to mutually prefer one another for roaming
    through the term of the new roaming agreement, which has been
    extended approximately one year through mid-2009;                                                                                                                                                                                 
|
| |  | we received approximately $7.8 million from Cingular as a
    settlement for prior claims under various agreements between us
    and the former AT&T Wireless, and have and will continue to
    receive certain formula-based residual payments in connection
    with such settlement through mid-2008 at the latest;                                                 
|
| |  | the new roaming agreement provides for
    home-on-home
    roaming in areas where both carriers operate; and                                                                                                                                                                                                                                                          
|
| |  | we have acquired from Cingular, for $6.0 million,
    10 MHz of spectrum covering a population, or Pops, of
    1.1 million, consisting of Youngstown, Ohio and Ohio 11
    RSA; and Erie and Sharon, Pennsylvania and a portion of the
    Pennsylvania 1 RSA. We have also received an option to lease
    additional spectrum covering 1.5 million Pops from Cingular.

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RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED
MARCH 31, 2006 AND 2005




|                                                     |  |                    |            |   |      |   |            |  
|---------------------------------------------------- |  | ------------------ | ---------- | - | ---- | - | ---------- | -
|                                                     |  | Three Months Ended |           
|                                                     |  | March 31,          |           
|                                                     |  |                    |           
|                                                     |  | 2006               |            |   | 2005 |  
|                                                     |  |                    |            |   |      |  
|Market population(1)                                 |  |                    | 11,854,000 |   |      |   | 11,757,400 |  
|Ending subscribers                                   |  |                    | 1,545,900  |   |      |   | 1,590,500  |  
|Market penetration(2)                                |  |                    | 13.0       | % |      |   | 13.5       | %
|Post-paid and pre-paid gross subscriber additions(3) |  |                    | 106,800    |   |      |   | 96,600     |  
|Gross subscriber additions                           |  |                    | 125,300    |   |      |   | 122,000    |  
|Average subscribers                                  |  |                    | 1,540,400  |   |      |   | 1,599,900  |  
|Average monthly service revenue per subscriber(4)    |  | $                  | 47         |   |      | $ | 43         |  
|Average monthly post-paid churn(5)                   |  |                    | 2.1        | % |      |   | 2.4        | %






|    |                                                                                                                                                                                                                                                                                                                                              
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Represents the population in our licensed areas for the period
    indicated. The results are based upon the 2003 population
    estimates provided by MapInfo Corporation, a location software
    company, adjusted to exclude those portions of our RSAs and
    metropolitan statistical areas, or MSAs, not covered by our
    licenses.
|   
|(2) | Market penetration is calculated by dividing ending subscribers
    by market population.                                                                                                                                                                                                                                                    
|   
|(3) | Represents our gross subscriber additions added during the
    period, excluding reseller additions. We typically do not incur
    commission and equipment costs or equipment revenue from
    reseller additions.                                                                                                                          
|   
|(4) | Average monthly service revenue per subscriber is calculated by
    dividing service revenue by average subscribers and dividing by
    the number of months in the period. We exclude roaming revenue
    from this calculation, since roaming revenue is not derived from
    our subscribers.                                             
|   
|(5) | Average monthly post-paid churn represents the percentage of the
    post-paid subscribers that deactivate service each month. The
    calculation divides the total post-paid deactivations during the
    period by the average post-paid subscribers for the period.                                                                      

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| |                      
| | ---------------------
| | Basis of Presentation



|                                                                                        |                          |                    |         |         |            |   |         |             |  |  |       |      |  
|--------------------------------------------------------------------------------------- | ------------------------ | ------------------ | ------- | ------- | ---------- | - | ------- | ----------- |  |  | ----- | ---- | -
|                                                                                        |                          | Three Months Ended |         |         |           
|                                                                                        |                          | March 31,          |         |         | Percentage |  
|                                                                                        |                          |                    |         |         | Change     |  
|                                                                                        |                          | 2006               |         |         | 2005       |   |         | 06 vs. 05 | 
|                                                                                        |                          |                    |         |         |            |   |         |             | 
|                                                                                        |                          | ($ in thousands)   |         |         |           
|Operating Revenue:                                                                      |                          |                    |         |         |            |   |         |             |  |  |       |     
|Service revenue                                                                         |                          | $                  | 216,095 |         |            | $ | 206,082 |             |  |  | 4.9   | %   
|Roaming revenue                                                                         |                          |                    | 54,780  |         |            |   | 53,430  |             |  |  | 2.5   | %   
|Equipment and other revenue                                                             |                          |                    | 16,724  |         |            |   | 12,246  |             |  |  | 36.6  | %   
|                                                                                        |                          |                    |         |         |            |   |         |             | 
|                                                                                        | Total operating revenue  |                    |         | 287,599 |            |   |         | 271,758     |  |  |       | 5.8  | %
|                                                                                        |                          |                    |         |         |            |   |         |             | 
|Operating Expenses:                                                                     |                          |                    |         |         |            |   |         |             |  |  |       |     
|Cost of service (exclusive of depreciation and amortization
    shown separately below) |                          |                    | 76,073  |         |            |   | 72,299  |             |  |  | 5.2   | %   
|Cost of equipment                                                                       |                          |                    | 32,570  |         |            |   | 30,366  |             |  |  | 7.3   | %   
|Marketing and selling                                                                   |                          |                    | 39,123  |         |            |   | 34,094  |             |  |  | 14.8  | %   
|General and administrative                                                              |                          |                    | 47,325  |         |            |   | 44,811  |             |  |  | 5.6   | %   
|Depreciation and amortization                                                           |                          |                    | 50,275  |         |            |   | 51,570  |             |  |  | (2.5  | )%  
|Gain on disposition of operating assets                                                 |                          |                    | (1,664  | )       |            |   |        |             |  |  | *     |     
|                                                                                        |                          |                    |         |         |            |   |         |             | 
|                                                                                        | Total operating expenses |                    |         | 243,702 |            |   |         | 233,140     |  |  |       | 4.5  | %
|                                                                                        |                          |                    |         |         |            |   |         |             | 
|                                                                                        | Operating income         |                    |         | 43,897  |            |   |         | 38,618      |  |  |       | 13.7 | %
|                                                                                        |                          |                    |         |         |            |   |         |             | 
|Interest expense                                                                        |                          |                    | (57,407 | )       |            |   | (60,742 | )           |  |  | (5.5  | )%  
|Loss on redemption of mandatorily redeemable preferred stock                            |                          |                    | (1,445  | )       |            |   |        |             |  |  | *     |     
|Dividends on mandatorily redeemable preferred stock                                     |                          |                    | (709    | )       |            |   | (7,931  | )           |  |  | (91.1 | )%  
|Other income (expense), net                                                             |                          |                    | 1,842   |         |            |   | (766    | )           |  |  | 340.5 | %   
|Minority interest in income of subsidiaries                                             |                          |                    | (2,364  | )       |            |   | (1,830  | )           |  |  | 29.2  | %   
|Income tax benefit                                                                      |                          |                    | 5,289   |         |            |   | 9,394   |             |  |  | *     |     
|                                                                                        |                          |                    |         |         |            |   |         |             | 
|Net loss                                                                                |                          | $                  | (10,897 | )       |            | $ | (23,257 | )           |  |  | 53.1  | %   
|                                                                                        |                          |                    |         |         |            |   |         |             | 






|  |                               
|- | ------------------------------
|* | Calculation is not meaningful.



| |            
| | -----------
| | Subscribers



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| |                  
| | -----------------
| | Operating Revenue





| |                
| | ---------------
| | Service revenue







| |                
| | ---------------
| | Roaming revenue

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| |                            
| | ---------------------------
| | Equipment and other revenue





Operating Expenses






| |                
| | ---------------
| | Cost of service

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|                                  |  |                              |        |  |            |  |       |        |  |   |            |  |  |  |       |  
|--------------------------------- |  | ---------------------------- | ------ |  | ---------- |  | ----- | ------ |  | - | ---------- |  |  |  | ----- | -
|                                  |  | Three Months Ended March 31, |       
|                                  |  |                              |       
|                                  |  | 2006                         |        |  | 2005       | 
|                                  |  |                              |        |  |            | 
|                                  |  | Amount                       |        |  | Percentage |  |       | Amount |  |   | Percentage | 
|                                  |  |                              |        |  |            |  |       |        |  |   |            | 
|                                  |  | ($ in thousands)             |       
|Network and other operating costs |  | $                            | 57,563 |  |            |  | 75.7  | %      |  | $ | 49,638     |  |  |  | 68.7  | %
|Roaming costs                     |  |                              | 18,510 |  |            |  | 24.3  | %      |  |   | 22,661     |  |  |  | 31.3  | %
|                                  |  |                              |        |  |            |  |       |        |  |   |            | 
|Total cost of service             |  | $                            | 76,073 |  |            |  | 100.0 | %      |  | $ | 72,299     |  |  |  | 100.0 | %
|                                  |  |                              |        |  |            |  |       |        |  |   |            | 



minute-of




| |                  
| | -----------------
| | Cost of equipment







| |                            
| | ---------------------------
| | Marketing and selling costs







| |                                 
| | --------------------------------
| | General and administrative costs



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| |                              
| | -----------------------------
| | Depreciation and amortization







| |                                        
| | ---------------------------------------
| | Gain on disposition of operating assets



Non-Operating Results




| |                 
| | ----------------
| | Interest expense





| |                                                                 
| | ----------------------------------------------------------------
| | Loss on redemption of mandatorily redeemable preferred
    stock





| |                                                    
| | ---------------------------------------------------
| | Dividends on mandatorily redeemable preferred stock





| |                            
| | ---------------------------
| | Other income (expense), net



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##### Table of Contents



LIQUIDITY AND CAPITAL RESOURCES








| |                                  
| | ---------------------------------
| | Working Capital and Net Cash Flow







10-K


28



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##### Table of Contents





| |                  
| | -----------------
| | Capital Resources



| |                                               
| | ----------------------------------------------
| | Dobson Cellular Senior Secured Credit Facility













| |   |                                                                                 
| | - | --------------------------------------------------------------------------------
| |  | make capital expenditures;                                                      
|
| |  | sell or dispose of assets;                                                      
|
| |  | incur additional debt;                                                          
|
| |  | create liens;                                                                   
|
| |  | merge with or acquire other companies;                                          
|
| |  | engage in transactions with affiliates, including dividend
    restrictions; and
|
| |  | make loans, advances or stock repurchases.                                      



| |              
| | -------------
| | Notes Payable





| |   |                                                                                         
| | - | ----------------------------------------------------------------------------------------
| |  | incur indebtedness;                                                                     
|
| |  | incur or assume liens;                                                                  
|
| |  | pay dividends or make other restricted payments;                                        
|
| |  | impose dividend or other payment restrictions affecting our
    restricted subsidiaries;
|
| |  | issue and sell capital stock of our restricted subsidiaries;                            
|
| |  | issue certain capital stock;                                                            
|
| |  | issue guarantees of indebtedness;                                                       
|
| |  | enter into transactions with affiliates;                                                
|
| |  | sell assets;                                                                            
|
| |  | engage in unpermitted lines of business;                                                

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| |   |                                                                                
| | - | -------------------------------------------------------------------------------
| |  | enter into sale and leaseback transactions; and                                
|
| |  | merge or consolidate with or transfer substantial assets to
    another entity.





| |                
| | ---------------
| | Preferred Stock







| |                                     
| | ------------------------------------
| | Capital Expenditures and Commitments

E-911.






| |                        
| | -----------------------
| | Contractual Obligations



10-K


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##### Table of Contents



Forward-Looking Statements









|        |                                                               
|------- | --------------------------------------------------------------
|Item 3. | Quantitative and Qualitative Disclosures About Market
    Risk










|        |                        
|------- | -----------------------
|Item 4. | Controls and Procedures

13a-15(e) 15d-15(e)


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##### Table of Contents






PART II.     OTHER
INFORMATION







|        |                  
|------- | -----------------
|Item 1. | Legal Proceedings












|         |             
|-------- | ------------
|Item 1A. | Risk Factors

10-K







|        |                                                                
|------- | ---------------------------------------------------------------
|Item 2. | Unregistered Sales of Equity Securities and Use of
    Proceeds








|        |                                
|------- | -------------------------------
|Item 3. | Defaults Upon Senior Securities








|        |                                                    
|------- | ---------------------------------------------------
|Item 4. | Submission of Matters to a Vote of Security Holders



32



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##### Table of Contents








|        |                  
|------- | -----------------
|Item 5. | Other Information








|        |         
|------- | --------
|Item 6. | Exhibits



|        |      |             |  |                                                                     |  |  |     | 
|------- | ---- | ----------- |  | ------------------------------------------------------------------- |  |  | --- | 
|Exhibit |      |             |  | Method of                                                          
|Numbers |      | Description |  | Filing                                                             
|        |      |             |  |                                                                    
|        | 31.1 |             |  | Rule 13a-14(a) Certification by our principal executive
    officer |  |  | (1) | 
|       
|        | 31.2 |             |  | Rule 13a-14(a) Certification by our principal financial
    officer |  |  | (1) | 
|       
|        | 32.1 |             |  | Section 1350 Certification by our principal executive
    officer   |  |  | (1) | 
|       
|        | 32.2 |             |  | Section 1350 Certification by our principal financial
    officer   |  |  | (1) | 






|    |                
|--- | ---------------
|(1) | Filed herewith.

33



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##### Table of Contents



SIGNATURES






| |                                      
| | -------------------------------------
| | Dobson Communications
    Corporation



| |                                
| | -------------------------------
| | /s/ Steven P. Dussek           
| |                                
| | Steven P. Dussek               
| | Chief Executive Officer        
| | and principal executive officer



| |                                                  
| | -------------------------------------------------
| | /s/ Bruce R. Knooihuizen                         
| |                                                  
| | Bruce R. Knooihuizen                             
| | Executive Vice President, Chief Financial Officer
| | and principal financial officer                  

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##### Table of Contents



INDEX TO EXHIBITS


|        |      |             |  |                                                                     |  |  |     | 
|------- | ---- | ----------- |  | ------------------------------------------------------------------- |  |  | --- | 
|Exhibit |      |             |  | Method of                                                          
|Numbers |      | Description |  | Filing                                                             
|        |      |             |  |                                                                    
|        | 31.1 |             |  | Rule 13a-14(a) Certification by our principal executive
    officer |  |  | (1) | 
|       
|        | 31.2 |             |  | Rule 13a-14(a) Certification by our principal financial
    officer |  |  | (1) | 
|       
|        | 32.1 |             |  | Section 1350 Certification by our principal executive
    officer   |  |  | (1) | 
|       
|        | 32.2 |             |  | Section 1350 Certification by our principal financial
    officer   |  |  | (1) | 






|    |                
|--- | ---------------
|(1) | Filed herewith.