##### 









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 September 30, 2005                                           
| 
|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


þ o


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
    September 30, 2005 and December 31, 2004                                |    |  | 2 | 
|       |  |                                                                                           |  | Condensed Consolidated Statements of
    Operations for the Three and Nine Months Ended
    September 30, 2005 and 2004 |    |  | 3 | 
|       |  |                                                                                           |  | Condensed Consolidated Statement of
    Stockholders Equity for the Nine Months Ended
    September 30, 2005           |    |  | 4 | 
|       |  |                                                                                           |  | Condensed Consolidated Statements of Cash
    Flows for the Nine Months Ended September 30, 2005 and
    2004           |    |  | 5 | 
|       |  |                                                                                           |  | Notes to Condensed Consolidated Financial
    Statements                                                                |    |  | 6 | 
|2      |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations |  |                                                                                                                         | 22 | 
|3      |  | Quantitative and Qualitative Disclosure
    about Market Risk                             |  |                                                                                                                         | 37 | 
|4      |  | Controls and Procedures                                                                   |  |                                                                                                                         | 37 | 
|       |  |                                                                                           |  | PART II. OTHER INFORMATION                                                                                              |    |  |   | 
|1      |  | Legal Proceedings                                                                         |  |                                                                                                                         | 38 | 
|2      |  | Unregistered Sales of Equity Securities and
    Use of Proceeds                           |  |                                                                                                                         | 38 | 
|3      |  | Defaults Upon Senior Securities                                                           |  |                                                                                                                         | 38 | 
|4      |  | Submission of Matters to a Vote of Security
    Holders                                   |  |                                                                                                                         | 39 | 
|5      |  | Other Information                                                                         |  |                                                                                                                         | 39 | 
|6      |  | Exhibits                                                                                  |  |                                                                                                                         | 39 | 



1



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##### 






PART I. FINANCIAL INFORMATION







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

DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES





CONDENSED CONSOLIDATED BALANCE SHEETS


|                                                                                            |                                                                                                                                                                                         |                            |                                            |               |                   |               |                |               |             |               |               | 
|------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------- | ------------------------------------------ | ------------- | ----------------- | ------------- | -------------- | ------------- | ----------- | ------------- | ------------- | 
|                                                                                            |                                                                                                                                                                                         | September 30, 2005         |                                            |               | December 31, 2004 |              
|                                                                                            |                                                                                                                                                                                         |                            |                                            |               |                   |              
|                                                                                            |                                                                                                                                                                                         | (Unaudited)                |                                            |               |                  
|ASSETS                                                                                     
|CURRENT ASSETS:                                                                             |                                                                                                                                                                                         |                            |                                            |               |                   |               |                |              
|                                                                                            | Cash and cash equivalents                                                                                                                                                               |                            | $                                          | 191,782,347   |                   |               | $              | 139,884,107   |            
|                                                                                            | Marketable securities                                                                                                                                                                   |                            |                                            |              |                   |               |                | 39,000,000    |            
|                                                                                            | Restricted cash (Note 7)                                                                                                                                                                |                            |                                            | 294,000,000   |                   |               |                |              |            
|                                                                                            | Accounts receivable                                                                                                                                                                     |                            |                                            | 137,642,069   |                   |               |                | 99,941,071    |            
|                                                                                            | Inventory                                                                                                                                                                               |                            |                                            | 13,290,212    |                   |               |                | 15,610,745    |            
|                                                                                            | Prepaid expenses                                                                                                                                                                        |                            |                                            | 16,307,556    |                   |               |                | 8,509,486     |            
|                                                                                            | Deferred tax assets                                                                                                                                                                     |                            |                                            | 13,257,000    |                   |               |                | 9,202,000     |            
|                                                                                            |                                                                                                                                                                                         |                            |                                            |               |                   |              
|                                                                                            |                                                                                                                                                                                         | Total current assets       |                                            |               | 666,279,184       |               |                |               | 312,147,409 |              
|                                                                                            |                                                                                                                                                                                         |                            |                                            |               |                   |              
|PROPERTY, PLANT AND EQUIPMENT, net (Note 6)                                                 |                                                                                                                                                                                         |                            | 495,475,552                                |               |                   |               | 533,744,179    |              
|                                                                                            |                                                                                                                                                                                         |                            |                                            |               |                   |              
|OTHER ASSETS:                                                                               |                                                                                                                                                                                         |                            |                                            |               |                   |               |                |              
|                                                                                            | Restricted investments                                                                                                                                                                  |                            |                                            | 4,481,681     |                   |               |                | 10,349,626    |            
|                                                                                            | Wireless license acquisition costs                                                                                                                                                      |                            |                                            | 1,798,390,370 |                   |               |                | 1,786,610,363 |            
|                                                                                            | Goodwill                                                                                                                                                                                |                            |                                            | 621,317,578   |                   |               |                | 620,031,217   |            
|                                                                                            | Deferred financing costs, net                                                                                                                                                           |                            |                                            | 45,070,810    |                   |               |                | 43,025,883    |            
|                                                                                            | Customer list, net                                                                                                                                                                      |                            |                                            | 69,480,583    |                   |               |                | 87,693,583    |            
|                                                                                            | Assets held for sale                                                                                                                                                                    |                            |                                            | 2,239,577     |                   |               |                |              |            
|                                                                                            | Other non-current assets                                                                                                                                                                |                            |                                            | 4,566,179     |                   |               |                | 4,149,608     |            
|                                                                                            |                                                                                                                                                                                         |                            |                                            |               |                   |              
|                                                                                            |                                                                                                                                                                                         |                            | Total other assets                         |               |                   | 2,545,546,778 |                |               |             | 2,551,860,280 |              
|                                                                                            |                                                                                                                                                                                         |                            |                                            |               |                   |              
|                                                                                            |                                                                                                                                                                                         |                            |                                            | Total assets  |                   | $             | 3,707,301,514  |               |             | $             | 3,397,751,868 | 
|                                                                                            |                                                                                                                                                                                         |                            |                                            |               |                   |              
|                                                                                           
|LIABILITIES AND STOCKHOLDERS EQUITY                                                       
|CURRENT LIABILITIES:                                                                        |                                                                                                                                                                                         |                            |                                            |               |                   |               |                |              
|                                                                                            | Accounts payable                                                                                                                                                                        |                            | $                                          | 97,529,887    |                   |               | $              | 80,085,348    |            
|                                                                                            | Accrued expenses                                                                                                                                                                        |                            |                                            | 31,492,726    |                   |               |                | 31,438,255    |            
|                                                                                            | Accrued interest payable                                                                                                                                                                |                            |                                            | 69,671,524    |                   |               |                | 74,471,790    |            
|                                                                                            | Deferred revenue and customer deposits                                                                                                                                                  |                            |                                            | 29,436,302    |                   |               |                | 28,881,603    |            
|                                                                                            | Accrued dividends payable                                                                                                                                                               |                            |                                            | 10,990,655    |                   |               |                | 19,404,780    |            
|                                                                                            | Debt called for prepayment (Note 7)                                                                                                                                                     |                            |                                            | 297,862,832   |                   |               |                |              |            
|                                                                                            | Current portion of obligations under capital leases                                                                                                                                     |                            |                                            |              |                   |               |                | 305,449       |            
|                                                                                            |                                                                                                                                                                                         |                            |                                            |               |                   |              
|                                                                                            |                                                                                                                                                                                         |                            | Total current liabilities                  |               |                   | 536,983,926   |                |               |             | 234,587,225   |              
|                                                                                            |                                                                                                                                                                                         |                            |                                            |               |                   |              
|OTHER LIABILITIES:                                                                          |                                                                                                                                                                                         |                            |                                            |               |                   |               |                |              
|                                                                                            | Notes payable (Note 7)                                                                                                                                                                  |                            |                                            | 2,459,219,462 |                   |               |                | 2,456,137,897 |            
|                                                                                            | Deferred tax liabilities                                                                                                                                                                |                            |                                            | 280,743,204   |                   |               |                | 283,744,665   |            
|                                                                                            | Mandatorily redeemable preferred stock, net (Note 8)                                                                                                                                    |                            |                                            | 71,208,691    |                   |               |                | 236,094,326   |            
|                                                                                            | Minority interest                                                                                                                                                                       |                            |                                            | 6,240,752     |                   |               |                | 5,422,043     |            
|                                                                                            | Deferred gain on disposition of operating assets and other
    non-current liabilities                                                                                                  |                            |                                            | 59,995,347    |                   |               |                | 4,161,627     |            
|COMMITMENTS (Note 10)                                                                       |                                                                                                                                                                                         |                            |                                            |               |                   |               |                |              
|SERIES F CONVERTIBLE PREFERRED STOCK (Note 8)                                               |                                                                                                                                                                                         |                            | 135,319,599                                |               |                   |               | 122,535,599    |              
|STOCKHOLDERS EQUITY:                                                                       |                                                                                                                                                                                         |                            |                                            |               |                   |               |                |              
|                                                                                            | Class A common stock, $.001 par value,
    325,000,000 shares authorized and 143,748,048 shares
    issued at September 30, 2005 and 120,081,762 shares
    issued at December 31, 2004 |                            |                                            | 143,748       |                   |               |                | 120,082       |            
|                                                                                            | Convertible Class B common stock, $.001 par value,
    70,000,000 shares authorized and 19,418,021 shares
    issued at September 30, 2005 and December 31, 2004                        |                            |                                            | 19,418        |                   |               |                | 19,418        |            
|                                                                                            | Convertible Class C common stock, $.001 par value,
    4,226 shares authorized and zero shares issued at
    September 30, 2005 and December 31, 2004                                   |                            |                                            |              |                   |               |                |              |            
|                                                                                            | Convertible Class D common stock, $.001 par value,
    33,000 shares authorized and zero shares issued at
    September 30, 2005 and December 31, 2004                                  |                            |                                            |              |                   |               |                |              |            
|Paid-in capital                                                                             |                                                                                                                                                                                         |                            | 1,379,443,415                              |               |                   |               | 1,206,362,528  |              
|Accumulated deficit                                                                         |                                                                                                                                                                                         |                            | (1,222,016,048                             | )             |                   |               | (1,118,001,904 | )            
|Less Class A common shares held in treasury, at cost, of
    5,622,599 at December 31, 2004 |                                                                                                                                                                                         |                            |                                           |               |                   |               | (33,431,638    | )            
|                                                                                            |                                                                                                                                                                                         |                            |                                            |               |                   |              
|                                                                                            |                                                                                                                                                                                         | Total stockholders equity |                                            |               | 157,590,533       |               |                |               | 55,068,486  |              
|                                                                                            |                                                                                                                                                                                         |                            |                                            |               |                   |              
|                                                                                            |                                                                                                                                                                                         |                            | Total liabilities and stockholders equity |               | $                 | 3,707,301,514 |                |               | $           | 3,397,751,868 |              
|                                                                                            |                                                                                                                                                                                         |                            |                                            |               |                   |              



2



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DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES





CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


|                                                                                  |                                                                                         |                          |             |             |                   |   |             |             |             |   |              |              |             |   |             |              |             | 
|--------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------- | ------------------------ | ----------- | ----------- | ----------------- | - | ----------- | ----------- | ----------- | - | ------------ | ------------ | ----------- | - | ----------- | ------------ | ----------- | 
|                                                                                  |                                                                                         | Three Months Ended       |             |             | Nine Months Ended |  
|                                                                                  |                                                                                         | September 30,            |             |             | September 30,     |  
|                                                                                  |                                                                                         |                          |             |             |                   |  
|                                                                                  |                                                                                         | 2005                     |             |             | 2004              |   |             | 2005        |             |   | 2004         |             
|                                                                                  |                                                                                         |                          |             |             |                   |   |             |             |             |   |              |             
|                                                                                  |                                                                                         | (Unaudited)              |             |             | (Unaudited)       |  
|OPERATING REVENUE:                                                                |                                                                                         |                          |             |             |                   |   |             |             |             |   |              |              |             |   |             |             
|                                                                                  | Service revenue                                                                         |                          | $           | 221,311,700 |                   |   | $           | 198,740,372 |             |   | $            | 643,377,264  |             |   | $           | 569,728,005  |            
|                                                                                  | Roaming revenue                                                                         |                          |             | 80,429,865  |                   |   |             | 62,220,374  |             |   |              | 195,009,354  |             |   |             | 154,902,068  |            
|                                                                                  | Equipment and other revenue                                                             |                          |             | 14,077,685  |                   |   |             | 11,438,044  |             |   |              | 46,856,933   |             |   |             | 33,923,131   |            
|                                                                                  |                                                                                         |                          |             |             |                   |   |             |             |             |   |              |             
|                                                                                  |                                                                                         | Total operating revenue  |             |             | 315,819,250       |   |             |             | 272,398,790 |   |              |              | 885,243,551 |   |             |              | 758,553,204 | 
|                                                                                  |                                                                                         |                          |             |             |                   |   |             |             |             |   |              |             
|OPERATING EXPENSES:                                                               |                                                                                         |                          |             |             |                   |   |             |             |             |   |              |              |             |   |             |             
|                                                                                  | Cost of service (exclusive of depreciation and amortization
    shown separately below) |                          |             | 77,950,356  |                   |   |             | 69,299,213  |             |   |              | 219,214,521  |             |   |             | 185,457,094  |            
|                                                                                  | Cost of equipment                                                                       |                          |             | 32,156,101  |                   |   |             | 30,242,157  |             |   |              | 96,776,864   |             |   |             | 81,646,761   |            
|                                                                                  | Marketing and selling                                                                   |                          |             | 35,535,197  |                   |   |             | 32,815,410  |             |   |              | 105,484,407  |             |   |             | 95,763,467   |            
|                                                                                  | General and administrative                                                              |                          |             | 50,724,911  |                   |   |             | 44,893,366  |             |   |              | 144,843,610  |             |   |             | 131,725,257  |            
|                                                                                  | Depreciation and amortization                                                           |                          |             | 49,100,873  |                   |   |             | 49,456,153  |             |   |              | 151,011,437  |             |   |             | 141,538,872  |            
|                                                                                  | Gain on disposition of operating assets                                                 |                          |             | (1,431,634  | )                 |   |             |            |             |   |              | (2,370,772   | )           |   |             |             |            
|                                                                                  |                                                                                         |                          |             |             |                   |   |             |             |             |   |              |             
|                                                                                  |                                                                                         | Total operating expenses |             |             | 244,035,804       |   |             |             | 226,706,299 |   |              |              | 714,960,067 |   |             |              | 636,131,451 | 
|                                                                                  |                                                                                         |                          |             |             |                   |   |             |             |             |   |              |             
|OPERATING INCOME                                                                  |                                                                                         |                          | 71,783,446  |             |                   |   | 45,692,491  |             |             |   | 170,283,484  |              |             |   | 122,421,753 |             
|                                                                                  |                                                                                         |                          |             |             |                   |   |             |             |             |   |              |             
|OTHER (EXPENSE) INCOME:                                                           |                                                                                         |                          |             |             |                   |   |             |             |             |   |              |              |             |   |             |             
|                                                                                  | Interest expense                                                                        |                          |             | (62,456,244 | )                 |   |             | (54,455,959 | )           |   |              | (184,456,663 | )           |   |             | (161,476,501 | )          
|                                                                                  | Gain from extinguishment of debt (Note 7)                                               |                          |             |            |                   |   |             |            |             |   |              |             |             |   |             | 5,738,861    |            
|                                                                                  | (Loss) gain on redemption and repurchases of mandatorily
    redeemable preferred stock |                          |             | (66,383,027 | )                 |   |             | 1,410,045   |             |   |              | (66,383,027  | )           |   |             | 6,478,563    |            
|                                                                                  | Dividends on mandatorily redeemable preferred stock (Note 8)                            |                          |             | (5,463,605  | )                 |   |             | (8,289,894  | )           |   |              | (21,391,020  | )           |   |             | (25,197,274  | )          
|                                                                                  | Other income, net                                                                       |                          |             | 2,632,114   |                   |   |             | 511,061     |             |   |              | 2,610,325    |             |   |             | 2,229,621    |            
|                                                                                  |                                                                                         |                          |             |             |                   |   |             |             |             |   |              |             
|LOSS BEFORE MINORITY INTERESTS IN INCOME OF SUBSIDIARIES AND
    INCOME TAXES     |                                                                                         |                          | (59,887,316 | )           |                   |   | (15,132,256 | )           |             |   | (99,336,901  | )            |             |   | (49,804,977 | )           
|MINORITY INTERESTS IN INCOME OF SUBSIDIARIES                                      |                                                                                         |                          | (2,346,648  | )           |                   |   | (1,511,761  | )           |             |   | (6,822,681   | )            |             |   | (3,514,163  | )           
|                                                                                  |                                                                                         |                          |             |             |                   |   |             |             |             |   |              |             
|LOSS BEFORE INCOME TAXES                                                          |                                                                                         |                          | (62,233,964 | )           |                   |   | (16,644,017 | )           |             |   | (106,159,582 | )            |             |   | (53,319,140 | )           
|                                                                                  | Income tax (expense) benefit                                                            |                          |             | (1,196,820  | )                 |   |             | 5,636,434   |             |   |              | 9,442,497    |             |   |             | 13,139,384   |            
|                                                                                  |                                                                                         |                          |             |             |                   |   |             |             |             |   |              |             
|LOSS FROM CONTINUING OPERATIONS                                                   |                                                                                         |                          | (63,430,784 | )           |                   |   | (11,007,583 | )           |             |   | (96,717,085  | )            |             |   | (40,179,756 | )           
|DISCONTINUED OPERATIONS: (Note 4)                                                 |                                                                                         |                          |             |             |                   |   |             |             |             |   |              |              |             |   |             |             
|                                                                                  | Income from discontinued operations, net of income tax expense
    of $271,327          |                          |             |            |                   |   |             |            |             |   |              |             |             |   |             | 442,692      |            
|                                                                                  |                                                                                         |                          |             |             |                   |   |             |             |             |   |              |             
|NET LOSS                                                                          |                                                                                         |                          | (63,430,784 | )           |                   |   | (11,007,583 | )           |             |   | (96,717,085  | )            |             |   | (39,737,064 | )           
|                                                                                  | Dividends on preferred stock                                                            |                          |             | (2,419,529  | )                 |   |             | (2,472,965  | )           |   |              | (6,708,275   | )           |   |             | (6,189,878   | )          
|                                                                                  |                                                                                         |                          |             |             |                   |   |             |             |             |   |              |             
|NET LOSS APPLICABLE TO COMMON STOCKHOLDERS                                        |                                                                                         | $                        | (65,850,313 | )           |                   | $ | (13,480,548 | )           |             | $ | (103,425,360 | )            |             | $ | (45,926,942 | )           
|                                                                                  |                                                                                         |                          |             |             |                   |   |             |             |             |   |              |             
|BASIC AND DILUTED NET LOSS APPLICABLE TO COMMON STOCKHOLDERS PER
    COMMON SHARE |                                                                                         | $                        | (0.45       | )           |                   | $ | (0.10       | )           |             | $ | (0.75        | )            |             | $ | (0.34       | )           
|                                                                                  |                                                                                         |                          |             |             |                   |   |             |             |             |   |              |             
|BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING                      |                                                                                         |                          | 146,485,519 |             |                   |   | 133,790,430 |             |             |   | 138,173,375  |              |             |   | 133,763,531 |             
|                                                                                  |                                                                                         |                          |             |             |                   |   |             |             |             |   |              |             



3



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##### 



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES





CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS
EQUITY


For the Nine Months Ended September 30, 2005


|                           |  |                      |             |  |              |   |         |         |  |          |             |  |       |         |        |  |               |   |               |         |  |   |                |   |  |   |             |   |  |   |             |  
|-------------------------- |  | -------------------- | ----------- |  | ------------ | - | ------- | ------- |  | -------- | ----------- |  | ----- | ------- | ------ |  | ------------- | - | ------------- | ------- |  | - | -------------- | - |  | - | ----------- | - |  | - | ----------- | -
|                           |  | Stockholders Equity |            
|                           |  |                      |            
|                           |  | Class A              |             |  | Class B      |   |         |        
|                           |  | Common Stock         |             |  | Common Stock |   |         |         |  | Treasury |             |  | Total |        
|                           |  |                      |             |  |              |   |         | Paid-in |  |          | Accumulated |  |       | Stock,  |        |  | Stockholders |  
|                           |  | Shares               |             |  | Amount       |   |         | Shares  |  |          | Amount      |  |       | Capital |        |  | Deficit       |   |               | at Cost |  |   | Equity         |  
|                           |  |                      |             |  |              |   |         |         |  |          |             |  |       |         |        |  |               |   |               |         |  |   |                |  
|                           |  | (Unaudited)          |            
|DECEMBER 31, 2004          |  |                      | 120,081,762 |  |              | $ | 120,082 |         |  |          | 19,418,021  |  |       | $       | 19,418 |  |               | $ | 1,206,362,528 |         |  | $ | (1,118,001,904 | ) |  | $ | (33,431,638 | ) |  | $ | 55,068,486  |  
|Net loss                   |  |                      |            |  |              |   |        |         |  |          |            |  |       |         |       |  |               |   |              |         |  |   | (96,717,085    | ) |  |   |            |   |  |   | (96,717,085 | )
|Preferred stock dividends  |  |                      |            |  |              |   |        |         |  |          |            |  |       |         |       |  |               |   |              |         |  |   | (6,708,275     | ) |  |   |            |   |  |   | (6,708,275  | )
|Issuance of common stock   |  |                      | 23,666,286  |  |              |   | 23,666  |         |  |          |            |  |       |         |       |  |               |   | 166,180,169   |         |  |   |               |   |  |   |            |   |  |   | 166,203,835 |  
|Issuance of treasury stock |  |                      |            |  |              |   |        |         |  |          |            |  |       |         |       |  |               |   | 6,900,718     |         |  |   | (588,784       | ) |  |   | 33,431,638  |   |  |   | 39,743,572  |  
|                           |  |                      |             |  |              |   |         |         |  |          |             |  |       |         |        |  |               |   |               |         |  |   |                |  
|SEPTEMBER 30, 2005         |  |                      | 143,748,048 |  |              | $ | 143,748 |         |  |          | 19,418,021  |  |       | $       | 19,418 |  |               | $ | 1,379,443,415 |         |  | $ | (1,222,016,048 | ) |  | $ |            |   |  | $ | 157,590,533 |  
|                           |  |                      |             |  |              |   |         |         |  |          |             |  |       |         |        |  |               |   |               |         |  |   |                |  



4



---



##### 



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES





CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                                                                                                                |                                                                                         |                                                     |             |              |              |   |             |              |             |  
|----------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------- | --------------------------------------------------- | ----------- | ------------ | ------------ | - | ----------- | ------------ | ----------- | -
|                                                                                                                                                |                                                                                         | Nine Months Ended                                   |            
|                                                                                                                                                |                                                                                         | September 30,                                       |            
|                                                                                                                                                |                                                                                         |                                                     |            
|                                                                                                                                                |                                                                                         | 2005                                                |             |              | 2004         |  
|                                                                                                                                                |                                                                                         |                                                     |             |              |              |  
|                                                                                                                                                |                                                                                         | (Unaudited)                                         |            
|CASH FLOWS FROM OPERATING ACTIVITIES:                                                                                                           |                                                                                         |                                                     |             |              |              |   |             |             
|Loss from continuing operations                                                                                                                 |                                                                                         | $                                                   | (96,717,085 | )            |              | $ | (40,179,756 | )           
|Adjustments to reconcile loss from continuing operations to net
    cash provided by operating activities, net of effects of
    acquisitions  |                                                                                         |                                                     |             |              |              |   |             |             
|                                                                                                                                                | Depreciation and amortization                                                           |                                                     |             | 151,011,437  |              |   |             | 141,538,872  |            
|                                                                                                                                                | Amortization of bond discount and deferred financing costs                              |                                                     |             | 5,498,473    |              |   |             | 6,056,671    |            
|                                                                                                                                                | Deferred income taxes                                                                   |                                                     |             | (9,756,171   | )            |   |             | (14,163,877  | )          
|                                                                                                                                                | Non-cash mandatorily redeemable preferred stock dividends                               |                                                     |             | 21,391,020   |              |   |             | 6,850,415    |            
|                                                                                                                                                | Loss (gain) on redemption and repurchases of mandatorily
    redeemable preferred stock |                                                     |             | 66,383,027   |              |   |             | (6,478,563   | )          
|                                                                                                                                                | Gain on sale of assets                                                                  |                                                     |             | (30,111      | )            |   |             |             |            
|                                                                                                                                                | Gain on disposition of operating assets                                                 |                                                     |             | (2,370,772   | )            |   |             |             |            
|                                                                                                                                                | Other operating activities                                                              |                                                     |             | 6,822,680    |              |   |             | 3,999,340    |            
|Changes in current assets and liabilities                                                                                                      |                                                                                         |                                                     |             |              |              |   |             |             
|                                                                                                                                                | Accounts receivable                                                                     |                                                     |             | (37,700,998  | )            |   |             | 2,324,961    |            
|                                                                                                                                                | Inventory                                                                               |                                                     |             | 2,320,533    |              |   |             | (3,844,398   | )          
|                                                                                                                                                | Prepaid expenses and other                                                              |                                                     |             | (7,909,820   | )            |   |             | (8,311,928   | )          
|                                                                                                                                                | Accounts payable                                                                        |                                                     |             | 17,444,539   |              |   |             | (25,064,230  | )          
|                                                                                                                                                | Accrued expenses                                                                        |                                                     |             | (3,612,562   | )            |   |             | (23,138,638  | )          
|                                                                                                                                                | Deferred revenue and customer deposits                                                  |                                                     |             | 554,699      |              |   |             | 660,829      |            
|                                                                                                                                                |                                                                                         |                                                     |             |              |              |  
|                                                                                                                                                |                                                                                         | Net cash provided by operating activities           |             |              | 113,328,889  |   |             |              | 40,249,698  |  
|                                                                                                                                                |                                                                                         |                                                     |             |              |              |  
|CASH FLOWS FROM INVESTING ACTIVITIES:                                                                                                           |                                                                                         |                                                     |             |              |              |   |             |             
|                                                                                                                                                | Capital expenditures                                                                    |                                                     |             | (113,238,459 | )            |   |             | (117,815,549 | )          
|                                                                                                                                                | Purchase of wireless licenses and properties                                            |                                                     |             | (16,486,012  | )            |   |             | (29,969,630  | )          
|                                                                                                                                                | Proceeds from the sale of assets                                                        |                                                     |             | 81,567,573   |              |   |             |             |            
|                                                                                                                                                | Receipt of funds held in escrow for contingencies on sold assets                        |                                                     |             |             |              |   |             | 11,354,020   |            
|                                                                                                                                                | Cash received from exchange of assets                                                   |                                                     |             |             |              |   |             | 21,978,720   |            
|                                                                                                                                                | Purchases of marketable securities                                                      |                                                     |             |             |              |   |             | (25,000,000  | )          
|                                                                                                                                                | Sales of marketable securities                                                          |                                                     |             | 39,000,000   |              |   |             | 81,700,000   |            
|                                                                                                                                                | Increase in restricted cash                                                             |                                                     |             | (294,000,000 | )            |   |             |             |            
|                                                                                                                                                | Other investing activities                                                              |                                                     |             | (1,466,564   | )            |   |             | 80,893       |            
|                                                                                                                                                |                                                                                         |                                                     |             |              |              |  
|                                                                                                                                                |                                                                                         | Net cash used in investing activities               |             |              | (304,623,462 | ) |             |              | (57,671,546 | )
|                                                                                                                                                |                                                                                         |                                                     |             |              |              |  
|CASH FLOWS FROM FINANCING ACTIVITIES:                                                                                                           |                                                                                         |                                                     |             |              |              |   |             |             
|                                                                                                                                                | Proceeds from senior notes and long-term debt                                           |                                                     |             | 300,000,000  |              |   |             | 40,000,000   |            
|                                                                                                                                                | Repayments and purchases of long-term debt                                              |                                                     |             |             |              |   |             | (83,890,000  | )          
|                                                                                                                                                | Preferred stock dividends paid                                                          |                                                     |             |             |              |   |             | (3,676,068   | )          
|                                                                                                                                                | Distributions to minority interest holders                                              |                                                     |             | (6,003,971   | )            |   |             | (4,112,668   | )          
|                                                                                                                                                | Redemption and repurchases of exchangeable preferred stock                              |                                                     |             |             |              |   |             | (17,375,750  | )          
|                                                                                                                                                | Exchange offer financing costs                                                          |                                                     |             | (52,673,941  | )            |   |             |             |            
|                                                                                                                                                | Deferred financing costs                                                                |                                                     |             | (6,599,003   | )            |   |             | (1,801,653   | )          
|                                                                                                                                                | Maturities of restricted investments                                                    |                                                     |             | 6,001,695    |              |   |             |             |            
|                                                                                                                                                | Other financing activities                                                              |                                                     |             | 2,468,033    |              |   |             | 230,156      |            
|                                                                                                                                                |                                                                                         |                                                     |             |              |              |  
|                                                                                                                                                |                                                                                         | Net cash provided by (used in) financing activities |             |              | 243,192,813  |   |             |              | (70,625,983 | )
|                                                                                                                                                |                                                                                         |                                                     |             |              |              |  
|NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                                                                            |                                                                                         |                                                     | 51,898,240  |              |              |   | (88,047,831 | )           
|CASH AND CASH EQUIVALENTS, beginning of period                                                                                                  |                                                                                         |                                                     | 139,884,107 |              |              |   | 151,539,339 |             
|                                                                                                                                                |                                                                                         |                                                     |             |              |              |  
|CASH AND CASH EQUIVALENTS, end of period                                                                                                        |                                                                                         | $                                                   | 191,782,347 |              |              | $ | 63,491,508  |             
|                                                                                                                                                |                                                                                         |                                                     |             |              |              |  
|SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:                                                                                              |                                                                                         |                                                     |             |              |              |   |             |             
|Cash paid for                                                                                                                                  |                                                                                         |                                                     |             |              |              |   |             |             
|                                                                                                                                                | Interest                                                                                |                                                     | $           | 181,582,022  |              |   | $           | 172,324,712  |            
|                                                                                                                                                | Income taxes                                                                            |                                                     | $           | 336,075      |              |   | $           | 1,940,971    |            
|SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING
    ACTIVITIES:                                                                    |                                                                                         |                                                     |             |              |              |   |             |             
|                                                                                                                                                | Stock dividend paid through the issuance of preferred stock                             |                                                     | $           | 8,577,492    |              |   | $           |             |            
|                                                                                                                                                | Class A common stock issued in preferred stock exchange                                 |                                                     | $           | 203,457,373  |              |   | $           |             |            
|                                                                                                                                                | Net property and equipment disposed through exchange of assets                          |                                                     | $           |             |              |   | $           | (11,793,362  | )          
|                                                                                                                                                | Net wireless license acquisition costs disposed through exchange
    of assets          |                                                     | $           |             |              |   | $           | (41,143,732  | )          



5



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##### 



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES





NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Unaudited)








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







|   |                      
|-- | ---------------------
|2. | Marketable Securities







6



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##### 



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                         
|-- | ------------------------
|3. | Stock-Based Compensation



|                                                                                   |                                                |                                                |   |         |                   |  |   |         |   |  |      |          |   |  |   |         |  
|---------------------------------------------------------------------------------- | ---------------------------------------------- | ---------------------------------------------- | - | ------- | ----------------- |  | - | ------- | - |  | ---- | -------- | - |  | - | ------- | -
|                                                                                   |                                                | Three Months Ended                             |   |         | Nine Months Ended | 
|                                                                                   |                                                | September 30,                                  |   |         | September 30,     | 
|                                                                                   |                                                |                                                |   |         |                   | 
|                                                                                   |                                                | 2005                                           |   |         | 2004              |  |   | 2005    |   |  | 2004 |         
|                                                                                   |                                                |                                                |   |         |                   |  |   |         |   |  |      |         
|                                                                                   |                                                | ($ in thousands, except for per share amounts) |  
|Net loss applicable to common stockholders:                                        |                                                |                                                |   |         |                   |  |   |         |   |  |      |          |   |  |   |        
|                                                                                   | As reported                                    |                                                | $ | (65,850 | )                 |  | $ | (13,481 | ) |  | $    | (103,425 | ) |  | $ | (45,927 | )
|                                                                                   | Pro forma stock-based compensation, net of tax |                                                |   | (1,115  | )                 |  |   | (1,040  | ) |  |      | (3,391   | ) |  |   | (5,371  | )
|                                                                                   |                                                |                                                |   |         |                   |  |   |         |   |  |      |         
|                                                                                   | Pro forma                                      |                                                | $ | (66,965 | )                 |  | $ | (14,521 | ) |  | $    | (106,816 | ) |  | $ | (51,298 | )
|                                                                                   |                                                |                                                |   |         |                   |  |   |         |   |  |      |         
|Basic and diluted net loss applicable to common stockholders per
    common share: |                                                |                                                |   |         |                   |  |   |         |   |  |      |          |   |  |   |        
|                                                                                   | As reported                                    |                                                | $ | (0.45   | )                 |  | $ | (0.10   | ) |  | $    | (0.75    | ) |  | $ | (0.34   | )
|                                                                                   | Pro forma                                      |                                                | $ | (0.46   | )                 |  | $ | (0.11   | ) |  | $    | (0.77    | ) |  | $ | (0.38   | )



|   |                        
|-- | -----------------------
|4. | Discontinued Operations





|                                    |  |                    |   |                    |  |   |       |  
|----------------------------------- |  | ------------------ | - | ------------------ |  | - | ----- | -
|                                    |  | Three Months       |   | Nine Months        | 
|                                    |  | Ended              |   | Ended              | 
|                                    |  | September 30, 2004 |   | September 30, 2004 | 
|                                    |  |                    |   |                    | 
|                                    |  | ($ in thousands)   |   | ($ in thousands)   | 
|Operating revenue                   |  | $                  |  |                    |  | $ | 3,556 |  
|Income before income taxes          |  |                    |  |                    |  |   | 714   |  
|Income tax expense                  |  |                    |  |                    |  |   | (271  | )
|Income from discontinued operations |  |                    |  |                    |  |   | 443   |  



|   |                      
|-- | ---------------------
|5. | Business Combinations



7



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##### 



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












|   |                              
|-- | -----------------------------
|6. | Property, Plant and Equipment



|                                    |  |                    |           |   |                   |   |          |  
|----------------------------------- |  | ------------------ | --------- | - | ----------------- | - | -------- | -
|                                    |  | September 30, 2005 |           |   | December 31, 2004 |  
|                                    |  |                    |           |   |                   |  
|                                    |  | ($ in thousands)   |          
|Gross property, plant and equipment |  | $                  | 1,058,710 |   |                   | $ | 985,005  |  
|Accumulated depreciation            |  |                    | (563,234  | ) |                   |   | (451,261 | )
|                                    |  |                    |           |   |                   |  
|Property, plant and equipment, net  |  | $                  | 495,476   |   |                   | $ | 533,744  |  
|                                    |  |                    |           |   |                   |  

Tower Sale and Lease-Back




8



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##### 



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|   |              
|-- | -------------
|7. | Notes Payable



|                                                                                                                                 |                     |                    |         |           |                   |   |         |           | 
|-------------------------------------------------------------------------------------------------------------------------------- | ------------------- | ------------------ | ------- | --------- | ----------------- | - | ------- | --------- | 
|                                                                                                                                 |                     | September 30, 2005 |         |           | December 31, 2004 |  
|                                                                                                                                 |                     |                    |         |           |                   |  
|                                                                                                                                 |                     | ($ in thousands)   |        
|DCC senior floating rate notes                                                                                                   |                     | $                  | 150,000 |           |                   | $ |        |          
|1.5% DCC senior convertible debentures                                                                                           |                     |                    | 150,000 |           |                   |   |        |          
|8.875% DCC senior notes                                                                                                          |                     |                    | 419,681 |           |                   |   | 419,681 |          
|10.875% DCC senior notes, net of discount of $1.1 million
    at September 30, 2005 and $1.3 million at
    December 31, 2004(1) |                     |                    | 297,863 |           |                   |   | 297,683 |          
|8.375% Dobson Cellular Systems, Inc. senior notes                                                                                |                     |                    | 250,000 |           |                   |   | 250,000 |          
|Dobson Cellular Systems, Inc. floating rate senior notes                                                                         |                     |                    | 250,000 |           |                   |   | 250,000 |          
|9.875% Dobson Cellular Systems, Inc. senior notes                                                                                |                     |                    | 325,000 |           |                   |   | 325,000 |          
|10% American Cellular senior notes                                                                                               |                     |                    | 900,000 |           |                   |   | 900,000 |          
|Other notes payable, net                                                                                                         |                     |                    | 14,538  |           |                   |   | 13,774  |          
|                                                                                                                                 |                     |                    |         |           |                   |  
|                                                                                                                                 | Total notes payable |                    | $       | 2,757,082 |                   |   | $       | 2,456,138 | 
|                                                                                                                                 |                     |                    |         |           |                   |  






|    |                                                                                                                                                                                                                                    
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | On October 17, 2005, the Company redeemed the entire
    $299.0 million outstanding principal amount of its
    10.875% senior notes due 2010, plus accrued interest and
    the applicable redemption premium, as described below.

New Senior Notes






2012 Senior Floating Rate Notes




9



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##### 



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




2025 Senior Convertible Debentures




Other Debt Repurchases






|   |                           
|-- | --------------------------
|8. | Redeemable Preferred Stock



|                    |  |            |           |           |                |  |           |                |  |  |           |  |  |           |             |            |           |           |                   |      |         |             |            |  |  |  |               |  |  |  |            | 
|------------------- |  | ---------- | --------- | --------- | -------------- |  | --------- | -------------- |  |  | --------- |  |  | --------- | ----------- | ---------- | --------- | --------- | ----------------- | ---- | ------- | ----------- | ---------- |  |  |  | ------------- |  |  |  | ---------- | 
|                    |  |            |           | Number of |                |  | Number of |                |  |  |           |  |  |           |             |            |           | Other     |                  
|                    |  |            |           | Shares    |                |  | Shares    |                |  |  |           |  |  |           |             |            |           | Features, |                  
|                    |  | Number of  |           |           | Outstanding at |  |           | Outstanding at |  |  |           |  |  |           | Liquidation |            |           | Mandatory |                   |      | Rights, |            
|                    |  | Shares     |           |           | September 30,  |  |           | December 31,   |  |  | Par Value |  |  |           |             | Preference |           |           | Redemption        |      |         | Preferences |           
|Class               |  | Authorized |           |           | 2005           |  |           | 2004           |  |  | Per Share |  |  | Dividends |             |            | Per Share |           |                   | Date |         |             | and Powers | 
|                    |  |            |           |           |                |  |           |                |  |  |           |  |  |           |             |            |           |           |                   |      |         |             |            | 
|Senior Exchangeable |  |            | 13,854    |           |                |  | 13,854    |                |  |  | 46,181    |  |  | $         | 1.00        |            |           |           | 12.25% Cumulative |      |         | $           | 1,000      |  |  |  | Jan. 15, 2008 |  |  |  | Non-voting | 
|Senior Exchangeable |  |            | 57,868    |           |                |  | 57,868    |                |  |  | 192,898   |  |  | $         | 1.00        |            |           |           | 13% Cumulative    |      |         | $           | 1,000      |  |  |  | May 1, 2009   |  |  |  | Non-voting | 
|Series F            |  |            | 1,900,000 |           |                |  | 734,235   |                |  |  | 686,201   |  |  | $         | 1.00        |            |           |           | 7% Cumulative     |      |         | $           | 178,571    |  |  |  | Aug. 18, 2016 |  |  |  | Non-voting | 
|Other               |  |            | 4,028,278 |           |                |  |          |                |  |  |          |  |  | $         | 1.00        |            |           |           |                  |      |         |             |           |  |  |  |              |  |  |  |           | 
|                    |  |            |           |           |                |  |           |                |  |  |           |  |  |           |             |            |           |           |                   |      |         |             |            | 
|                    |  |            | 6,000,000 |           |                |  | 805,957   |                |  |  | 925,280   |  |  |           |             |            |           |           |                   |      |         |             |            |  |  |  |               |  |  |  |            | 
|                    |  |            |           |           |                |  |           |                |  |  |           |  |  |           |             |            |           |           |                   |      |         |             |            | 

Repurchases




10



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##### 



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Exchange offer








Dividends on Preferred Stock






11



---



##### 



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






12



---



##### 



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                   
|-- | ------------------
|9. | Earnings Per Share



|                                           |                                                                                    |                                         |         |             |                   |   |         |             |       |   |          |             |       |   |         |             |       |  
|------------------------------------------ | ---------------------------------------------------------------------------------- | --------------------------------------- | ------- | ----------- | ----------------- | - | ------- | ----------- | ----- | - | -------- | ----------- | ----- | - | ------- | ----------- | ----- | -
|                                           |                                                                                    | Three Months Ended                      |         |             | Nine Months Ended |  
|                                           |                                                                                    | September 30,                           |         |             | September 30,     |  
|                                           |                                                                                    |                                         |         |             |                   |  
|                                           |                                                                                    | 2005                                    |         |             | 2004              |   |         | 2005        |       |   | 2004     |            
|                                           |                                                                                    |                                         |         |             |                   |   |         |             |       |   |          |            
|                                           |                                                                                    | ($ in thousands, except per share data) |        
|Net loss applicable to common stockholders |                                                                                    | $                                       | (65,850 | )           |                   | $ | (13,481 | )           |       | $ | (103,425 | )           |       | $ | (45,927 | )          
|                                           | Basic and diluted net loss applicable to common stockholders per
    common share: |                                         |         |             |                   |   |         |             |       |   |          |             |       |   |         |             |      
|                                           |                                                                                    | Continuing operations:                  |         |             |                   |   |         |             |       |   |          |             |       |   |         |             |       |  
|                                           |                                                                                    | Loss from continuing operations         |         | $           | (0.43             | ) |         | $           | (0.08 | ) |          | $           | (0.70 | ) |         | $           | (0.30 | )
|                                           |                                                                                    | Income from discontinued operations     |         |             |                  |   |         |             |      |   |          |             |      |   |         |             | 0.01  |  
|                                           |                                                                                    | Dividends on preferred stock            |         |             | (0.02             | ) |         |             | (0.02 | ) |          |             | (0.05 | ) |         |             | (0.05 | )
|                                           |                                                                                    |                                         |         |             |                   |   |         |             |       |   |          |            
|                                           | Basic and diluted net loss applicable to common stockholders per
    common share  |                                         | $       | (0.45       | )                 |   | $       | (0.10       | )     |   | $        | (0.75       | )     |   | $       | (0.34       | )    
|                                           |                                                                                    |                                         |         |             |                   |   |         |             |       |   |          |            
|                                           | Basic and diluted weighted average common shares outstanding                       |                                         |         | 146,485,519 |                   |   |         | 133,790,430 |       |   |          | 138,173,375 |       |   |         | 133,763,531 |      
|                                           |                                                                                    |                                         |         |             |                   |   |         |             |       |   |          |            



|    |                              
|--- | -----------------------------
|10. | Commitments and Contingencies

Commitments




13



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##### 



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Contingencies










|    |                                          
|--- | -----------------------------------------
|11. | Recently Issued Accounting Pronouncements









14



---



##### 



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|    |                                                           
|--- | ----------------------------------------------------------
|12. | Supplemental Condensed Consolidating Financial Information



15



---



##### 



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATING BALANCE SHEET


As of September 30, 2005


|                                               |                                                                                        |                              |                                                     |           |           |           |         |              |           |           |        |        |        |              |           |           |              |           |            |            |            |            |         |           |           |           | 
|---------------------------------------------- | -------------------------------------------------------------------------------------- | ---------------------------- | --------------------------------------------------- | --------- | --------- | --------- | ------- | ------------ | --------- | --------- | ------ | ------ | ------ | ------------ | --------- | --------- | ------------ | --------- | ---------- | ---------- | ---------- | ---------- | ------- | --------- | --------- | --------- | 
|                                               |                                                                                        |                              |                                                     |           |           | Non-      |         |              |           |           |        |        |       
|                                               |                                                                                        | Dobson                       |                                                     |           | American  |           |         | Guarantor    |           |           |        |        |        |              |          
|                                               |                                                                                        | Cellular                     |                                                     |           | Cellular  |           |         | Subsidiaries |           |           | Parent |        |        | Eliminations |           |           | Consolidated |          
|                                               |                                                                                        |                              |                                                     |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                               |                                                                                        | ($ in thousands) (Unaudited) |                                                    
|ASSETS                                        
|CURRENT ASSETS:                                |                                                                                        |                              |                                                     |           |           |           |         |              |           |           |        |        |        |              |           |           |              |           |            |            |            |            |         |          
|                                               | Cash and cash equivalents                                                              |                              | $                                                   | 105,593   |           |           | $       | 55,684       |           |           | $      | 23,297 |        |              | $         | 7,208     |              |           | $          |           |            |            | $       | 191,782   |          
|                                               | Restricted cash                                                                        |                              |                                                     |          |           |           |         |             |           |           |        |       |        |              |           | 294,000   |              |           |            |           |            |            |         | 294,000   |          
|                                               | Accounts receivable                                                                    |                              |                                                     | 84,597    |           |           |         | 53,045       |           |           |        |       |        |              |           |          |              |           |            |           |            |            |         | 137,642   |          
|                                               | Inventory                                                                              |                              |                                                     | 8,835     |           |           |         | 4,455        |           |           |        |       |        |              |           |          |              |           |            |           |            |            |         | 13,290    |          
|                                               | Prepaid expenses and other                                                             |                              |                                                     | 20,612    |           |           |         | 8,938        |           |           |        | 15     |        |              |           |          |              |           |            |           |            |            |         | 29,565    |          
|                                               |                                                                                        |                              |                                                     |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                               |                                                                                        | Total current assets         |                                                     |           | 219,637   |           |         |              | 122,122   |           |        |        | 23,312 |              |           |           | 301,208      |           |            |            |           |            |         |           | 666,279   |          
|                                               |                                                                                        |                              |                                                     |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|PROPERTY, PLANT AND EQUIPMENT, net             |                                                                                        |                              | 331,931                                             |           |           |           | 163,545 |              |           |           |       |        |        |              |          |           |              |           |           |            |            |            | 495,476 |          
|                                               |                                                                                        |                              |                                                     |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|OTHER ASSETS:                                  |                                                                                        |                              |                                                     |           |           |           |         |              |           |           |        |        |        |              |           |           |              |           |            |            |            |            |         |          
|                                               | Net intercompany receivable (payable)                                                  |                              |                                                     | 1,691     |           |           |         | (9,199       | )         |           |        | 53,634 |        |              |           | 721,040   |              |           |            | (767,166   | )          |            |         |          |          
|                                               | Restricted investments                                                                 |                              |                                                     | 4,460     |           |           |         | 22           |           |           |        |       |        |              |           |          |              |           |            |           |            |            |         | 4,482     |          
|                                               | Wireless license acquisition costs                                                     |                              |                                                     | 1,104,867 |           |           |         | 679,435      |           |           |        | 9,676  |        |              |           | 4,412     |              |           |            |           |            |            |         | 1,798,390 |          
|                                               | Goodwill                                                                               |                              |                                                     | 45,362    |           |           |         | 574,813      |           |           |        |       |        |              |           | 1,143     |              |           |            |           |            |            |         | 621,318   |          
|                                               | Deferred financing costs, net                                                          |                              |                                                     | 13,823    |           |           |         | 14,018       |           |           |        |       |        |              |           | 17,230    |              |           |            |           |            |            |         | 45,071    |          
|                                               | Customer list, net                                                                     |                              |                                                     | 22,026    |           |           |         | 47,454       |           |           |        |       |        |              |           |          |              |           |            |           |            |            |         | 69,480    |          
|                                               | Assets held for sale                                                                   |                              |                                                     | 2,143     |           |           |         | 97           |           |           |        |       |        |              |           |          |              |           |            |           |            |            |         | 2,240     |          
|                                               | Other non-current assets                                                               |                              |                                                     | 27,906    |           |           |         | 650          |           |           |        | 10     |        |              |           | 1,624,373 |              |           |            | (1,648,373 | )          |            |         | 4,566     |          
|                                               |                                                                                        |                              |                                                     |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                               |                                                                                        | Total other assets           |                                                     |           | 1,222,278 |           |         |              | 1,307,290 |           |        |        | 63,320 |              |           |           | 2,368,198    |           |            |            | (2,415,539 | )          |         |           | 2,545,547 |          
|                                               |                                                                                        |                              |                                                     |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                               |                                                                                        |                              | Total assets                                        |           | $         | 1,773,846 |         |              | $         | 1,592,957 |        |        | $      | 86,632       |           |           | $            | 2,669,406 |            |            | $          | (2,415,539 | )       |           | $         | 3,707,302 | 
|                                               |                                                                                        |                              |                                                     |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                              
|LIABILITIES AND STOCKHOLDERS (DEFICIT) EQUITY
|CURRENT LIABILITIES:                           |                                                                                        |                              |                                                     |           |           |           |         |              |           |           |        |        |        |              |           |           |              |           |            |            |            |            |         |          
|                                               | Accounts payable                                                                       |                              | $                                                   | 82,668    |           |           | $       | 14,806       |           |           | $      |       |        |              | $         | 56        |              |           | $          |           |            |            | $       | 97,530    |          
|                                               | Accrued expenses                                                                       |                              |                                                     | 19,052    |           |           |         | 12,981       |           |           |        | (26    | )      |              |           | (514      | )            |           |            |           |            |            |         | 31,493    |          
|                                               | Accrued interest payable                                                               |                              |                                                     | 25,735    |           |           |         | 15,793       |           |           |        |       |        |              |           | 28,143    |              |           |            |           |            |            |         | 69,671    |          
|                                               | Deferred revenue and customer deposits                                                 |                              |                                                     | 16,506    |           |           |         | 12,930       |           |           |        |       |        |              |           |          |              |           |            |           |            |            |         | 29,436    |          
|                                               | Accrued dividends payable                                                              |                              |                                                     |          |           |           |         |             |           |           |        |       |        |              |           | 10,991    |              |           |            |           |            |            |         | 10,991    |          
|                                               | Debt called for prepayment                                                             |                              |                                                     |          |           |           |         |             |           |           |        |       |        |              |           | 297,863   |              |           |            |           |            |            |         | 297,863   |          
|                                               |                                                                                        |                              |                                                     |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                               |                                                                                        | Total current liabilities    |                                                     |           | 143,961   |           |         |              | 56,510    |           |        |        | (26    | )            |           |           | 336,539      |           |            |            |           |            |         |           | 536,984   |          
|                                               |                                                                                        |                              |                                                     |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|OTHER LIABILITIES:                             |                                                                                        |                              |                                                     |           |           |           |         |              |           |           |        |        |        |              |           |           |              |           |            |            |            |            |         |          
|                                               | Notes payable                                                                          |                              |                                                     | 1,592,166 |           |           |         | 914,538      |           |           |        |       |        |              |           | 719,681   |              |           |            | (767,166   | )          |            |         | 2,459,219 |          
|                                               | Deferred tax liabilities                                                               |                              |                                                     | 188,983   |           |           |         | 163,087      |           |           |        | 948    |        |              |           | (72,275   | )            |           |            |           |            |            |         | 280,743   |          
|                                               | Mandatorily redeemable preferred stock, net                                            |                              |                                                     |          |           |           |         |             |           |           |        |       |        |              |           | 71,209    |              |           |            |           |            |            |         | 71,209    |          
|                                               | Deferred gain on disposition of operating assets and other
    non-current liabilities |                              |                                                     | 36,781    |           |           |         | 29,456       |           |           |        |       |        |              |           |          |              |           |            |           |            |            |         | 66,237    |          
|SERIES F CONVERTIBLE PREFERRED STOCK           |                                                                                        |                              |                                                    |           |           |           |        |              |           |           |       |        |        |              | 135,320   |           |              |           |           |            |            |            | 135,320 |          
|STOCKHOLDERS (DEFICIT) EQUITY                 |                                                                                        |                              | (188,045                                            | )         |           |           | 429,366 |              |           |           | 85,710 |        |        |              | 1,478,932 |           |              |           | (1,648,373 | )          |            |            | 157,590 |          
|                                               |                                                                                        |                              |                                                     |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                               |                                                                                        |                              | Total liabilities and stockholders(deficit) equity |           | $         | 1,773,846 |         |              | $         | 1,592,957 |        |        | $      | 86,632       |           |           | $            | 2,669,406 |            |            | $          | (2,415,539 | )       |           | $         | 3,707,302 | 
|                                               |                                                                                        |                              |                                                     |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          

16



---



##### 



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATING BALANCE SHEET


As of December 31, 2004


|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |           |            |            |            |            |         |           |           |           | 
|---------------------------------------------- | -------------------------------------------------------------------------------------- | ------------------------- | ---------------------------------------------------- | --------- | --------- | --------- | ------- | ------------ | --------- | --------- | ------ | ------ | ------ | ------------ | --------- | --------- | ------------ | --------- | ---------- | ---------- | ---------- | ---------- | ------- | --------- | --------- | --------- | 
|                                               |                                                                                        |                           |                                                      |           |           | Non-      |         |              |           |           |        |        |       
|                                               |                                                                                        | Dobson                    |                                                      |           | American  |           |         | Guarantor    |           |           |        |        |        |              |          
|                                               |                                                                                        | Cellular                  |                                                      |           | Cellular  |           |         | Subsidiaries |           |           | Parent |        |        | Eliminations |           |           | Consolidated |          
|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                               |                                                                                        | ($ in thousands)          |                                                     
|ASSETS                                        
|CURRENT ASSETS:                                |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |           |            |            |            |            |         |          
|                                               | Cash and cash equivalents                                                              |                           | $                                                    | 47,427    |           |           | $       | 41,489       |           |           | $      | 48,303 |        |              | $         | 2,665     |              |           | $          |           |            |            | $       | 139,884   |          
|                                               | Marketable securities                                                                  |                           |                                                      | 39,000    |           |           |         |             |           |           |        |       |        |              |           |          |              |           |            |           |            |            |         | 39,000    |          
|                                               | Accounts receivable                                                                    |                           |                                                      | 59,528    |           |           |         | 40,413       |           |           |        |       |        |              |           |          |              |           |            |           |            |            |         | 99,941    |          
|                                               | Inventory                                                                              |                           |                                                      | 10,458    |           |           |         | 5,153        |           |           |        |       |        |              |           |          |              |           |            |           |            |            |         | 15,611    |          
|                                               | Prepaid expenses and other                                                             |                           |                                                      | 10,636    |           |           |         | 7,065        |           |           |        | 10     |        |              |           |          |              |           |            |           |            |            |         | 17,711    |          
|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                               |                                                                                        | Total current assets      |                                                      |           | 167,049   |           |         |              | 94,120    |           |        |        | 48,313 |              |           |           | 2,665        |           |            |            |           |            |         |           | 312,147   |          
|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|PROPERTY, PLANT AND EQUIPMENT, net             |                                                                                        |                           | 356,602                                              |           |           |           | 177,142 |              |           |           |       |        |        |              |          |           |              |           |           |            |            |            | 533,744 |          
|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|OTHER ASSETS:                                  |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |           |            |            |            |            |         |          
|                                               | Net intercompany (payable) receivable                                                  |                           |                                                      | (3,975    | )         |           |         | (6,183       | )         |           |        | 3,113  |        |              |           | 774,211   |              |           |            | (767,166   | )          |            |         |          |          
|                                               | Restricted investments                                                                 |                           |                                                      | 10,350    |           |           |         |             |           |           |        |       |        |              |           |          |              |           |            |           |            |            |         | 10,350    |          
|                                               | Wireless license acquisition costs                                                     |                           |                                                      | 1,103,353 |           |           |         | 669,169      |           |           |        | 9,676  |        |              |           | 4,412     |              |           |            |           |            |            |         | 1,786,610 |          
|                                               | Goodwill                                                                               |                           |                                                      | 46,776    |           |           |         | 572,113      |           |           |        |       |        |              |           | 1,142     |              |           |            |           |            |            |         | 620,031   |          
|                                               | Deferred financing costs, net                                                          |                           |                                                      | 14,762    |           |           |         | 15,785       |           |           |        |       |        |              |           | 12,479    |              |           |            |           |            |            |         | 43,026    |          
|                                               | Customer list, net                                                                     |                           |                                                      | 28,441    |           |           |         | 59,253       |           |           |        |       |        |              |           |          |              |           |            |           |            |            |         | 87,694    |          
|                                               | Other non-current assets                                                               |                           |                                                      | 3,443     |           |           |         | 697          |           |           |        |       |        |              |           | 1,624,383 |              |           |            | (1,624,373 | )          |            |         | 4,150     |          
|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                               |                                                                                        | Total other assets        |                                                      |           | 1,203,150 |           |         |              | 1,310,834 |           |        |        | 12,789 |              |           |           | 2,416,627    |           |            |            | (2,391,539 | )          |         |           | 2,551,861 |          
|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                               |                                                                                        |                           | Total assets                                         |           | $         | 1,726,801 |         |              | $         | 1,582,096 |        |        | $      | 61,102       |           |           | $            | 2,419,292 |            |            | $          | (2,391,539 | )       |           | $         | 3,397,752 | 
|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                              
|LIABILITIES AND STOCKHOLDERS (DEFICIT) EQUITY
|CURRENT LIABILITIES:                           |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |           |            |            |            |            |         |          
|                                               | Accounts payable                                                                       |                           | $                                                    | 69,787    |           |           | $       | 10,298       |           |           | $      |       |        |              | $         |          |              |           | $          |           |            |            | $       | 80,085    |          
|                                               | Accrued expenses                                                                       |                           |                                                      | 18,380    |           |           |         | 13,141       |           |           |        |       |        |              |           | (83       | )            |           |            |           |            |            |         | 31,438    |          
|                                               | Accrued interest payable                                                               |                           |                                                      | 10,793    |           |           |         | 37,867       |           |           |        |       |        |              |           | 25,812    |              |           |            |           |            |            |         | 74,472    |          
|                                               | Deferred revenue and customer deposits                                                 |                           |                                                      | 15,856    |           |           |         | 13,026       |           |           |        |       |        |              |           |          |              |           |            |           |            |            |         | 28,882    |          
|                                               | Accrued dividends payable                                                              |                           |                                                      |          |           |           |         |             |           |           |        |       |        |              |           | 19,405    |              |           |            |           |            |            |         | 19,405    |          
|                                               | Current portion of obligations under capital leases                                    |                           |                                                      | 305       |           |           |         |             |           |           |        |       |        |              |           |          |              |           |            |           |            |            |         | 305       |          
|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                               |                                                                                        | Total current liabilities |                                                      |           | 115,121   |           |         |              | 74,332    |           |        |        |       |              |           |           | 45,134       |           |            |            |           |            |         |           | 234,587   |          
|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|OTHER LIABILITIES:                             |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |           |            |            |            |            |         |          
|                                               | Notes payable                                                                          |                           |                                                      | 1,592,166 |           |           |         | 913,774      |           |           |        |       |        |              |           | 717,364   |              |           |            | (767,166   | )          |            |         | 2,456,138 |          
|                                               | Deferred tax liabilities                                                               |                           |                                                      | 194,602   |           |           |         | 160,231      |           |           |        | 667    |        |              |           | (71,755   | )            |           |            |           |            |            |         | 283,745   |          
|                                               | Mandatorily redeemable preferred stock, net                                            |                           |                                                      |          |           |           |         |             |           |           |        |       |        |              |           | 236,094   |              |           |            |           |            |            |         | 236,094   |          
|                                               | Deferred gain on disposition of operating assets and other
    non-current liabilities |                           |                                                      | 5,423     |           |           |         | 4,161        |           |           |        |       |        |              |           |          |              |           |            |           |            |            |         | 9,584     |          
|SERIES F CONVERTIBLE PREFERRED STOCK           |                                                                                        |                           |                                                     |           |           |           |        |              |           |           |       |        |        |              | 122,536   |           |              |           |           |            |            |            | 122,536 |          
|STOCKHOLDERS (DEFICIT) EQUITY                 |                                                                                        |                           | (180,511                                             | )         |           |           | 429,598 |              |           |           | 60,435 |        |        |              | 1,369,919 |           |              |           | (1,624,373 | )          |            |            | 55,068  |          
|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                               |                                                                                        |                           | Total liabilities and stockholders (deficit) equity |           | $         | 1,726,801 |         |              | $         | 1,582,096 |        |        | $      | 61,102       |           |           | $            | 2,419,292 |            |            | $          | (2,391,539 | )       |           | $         | 3,397,752 | 
|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          

17



---



##### 



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


For the Nine Months Ended September 30, 2005


|                                                                                       |                                                                                         |                          |         |          |          |      |        |              |         |   |        |       |    |              |         |         |              |   |   |         |        |   |          |          |         | 
|-------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------- | ------------------------ | ------- | -------- | -------- | ---- | ------ | ------------ | ------- | - | ------ | ----- | -- | ------------ | ------- | ------- | ------------ | - | - | ------- | ------ | - | -------- | -------- | ------- | 
|                                                                                       |                                                                                         |                          |         |          |          | Non- |        |              |         |   |        |       |   
|                                                                                       |                                                                                         | Dobson                   |         |          | American |      |        | Guarantor    |         |   |        |       |    |              |        
|                                                                                       |                                                                                         | Cellular                 |         |          | Cellular |      |        | Subsidiaries |         |   | Parent |       |    | Eliminations |         |         | Consolidated |  
|                                                                                       |                                                                                         |                          |         |          |          |      |        |              |         |   |        |       |    |              |         |         |              |  
|                                                                                       |                                                                                         | ($ in thousands)         |        
|                                                                                       |                                                                                         | (Unaudited)              |        
|OPERATING REVENUE:                                                                     |                                                                                         |                          |         |          |          |      |        |              |         |   |        |       |    |              |         |         |              |   |   |         |        |   |          |         
|                                                                                       | Service revenue                                                                         |                          | $       | 373,257  |          |      | $      | 270,120      |         |   | $      |      |    |              | $       |        |              |   | $ |        |        |   | $        | 643,377  |        
|                                                                                       | Roaming revenue                                                                         |                          |         | 111,667  |          |      |        | 83,342       |         |   |        |      |    |              |         |        |              |   |   |        |        |   |          | 195,009  |        
|                                                                                       | Equipment and other revenue                                                             |                          |         | 40,151   |          |      |        | 15,741       |         |   |        |      |    |              |         |        |              |   |   | (9,035  | )      |   |          | 46,857   |        
|                                                                                       |                                                                                         |                          |         |          |          |      |        |              |         |   |        |       |    |              |         |         |              |  
|                                                                                       |                                                                                         | Total operating revenue  |         |          | 525,075  |      |        |              | 369,203 |   |        |       |   |              |         |         |             |   |   |         | (9,035 | ) |          |          | 885,243 | 
|                                                                                       |                                                                                         |                          |         |          |          |      |        |              |         |   |        |       |    |              |         |         |              |  
|OPERATING EXPENSES:                                                                    |                                                                                         |                          |         |          |          |      |        |              |         |   |        |       |    |              |         |         |              |   |   |         |        |   |          |         
|                                                                                       | Cost of service (exclusive of depreciation and amortization
    shown separately below) |                          |         | 135,728  |          |      |        | 87,381       |         |   |        |      |    |              |         |        |              |   |   | (3,895  | )      |   |          | 219,214  |        
|                                                                                       | Cost of equipment                                                                       |                          |         | 58,902   |          |      |        | 37,875       |         |   |        |      |    |              |         |        |              |   |   |        |        |   |          | 96,777   |        
|                                                                                       | Marketing and selling                                                                   |                          |         | 61,213   |          |      |        | 44,271       |         |   |        |      |    |              |         |        |              |   |   |        |        |   |          | 105,484  |        
|                                                                                       | General and administrative                                                              |                          |         | 83,254   |          |      |        | 66,715       |         |   |        | 15    |    |              |         |        |              |   |   | (5,140  | )      |   |          | 144,844  |        
|                                                                                       | Depreciation and amortization                                                           |                          |         | 88,238   |          |      |        | 62,774       |         |   |        |      |    |              |         |        |              |   |   |        |        |   |          | 151,012  |        
|                                                                                       | Gain on disposition of operating assets                                                 |                          |         | (783     | )        |      |        | (1,588       | )       |   |        |      |    |              |         |        |              |   |   |        |        |   |          | (2,371   | )      
|                                                                                       |                                                                                         |                          |         |          |          |      |        |              |         |   |        |       |    |              |         |         |              |  
|                                                                                       |                                                                                         | Total operating expenses |         |          | 426,552  |      |        |              | 297,428 |   |        |       | 15 |              |         |         |             |   |   |         | (9,035 | ) |          |          | 714,960 | 
|                                                                                       |                                                                                         |                          |         |          |          |      |        |              |         |   |        |       |    |              |         |         |              |  
|OPERATING INCOME (LOSS)                                                                |                                                                                         |                          | 98,523  |          |          |      | 71,775 |              |         |   | (15    | )     |    |              |        |         |              |   |  |         |        |   | 170,283  |         
|                                                                                       |                                                                                         |                          |         |          |          |      |        |              |         |   |        |       |    |              |         |         |              |  
|OTHER (EXPENSE) INCOME:                                                                |                                                                                         |                          |         |          |          |      |        |              |         |   |        |       |    |              |         |         |              |   |   |         |        |   |          |         
|                                                                                       | Interest (expense) income                                                               |                          |         | (112,656 | )        |      |        | (71,344      | )       |   |        |      |    |              |         | (56,604 | )            |   |   | 56,147  |        |   |          | (184,457 | )      
|                                                                                       | Loss from redemption and repurchases of mandatorily redeemable
    preferred stock      |                          |         |         |          |      |        |             |         |   |        |      |    |              |         | (66,383 | )            |   |   |        |        |   |          | (66,383  | )      
|                                                                                       | Dividends on mandatorily redeemable preferred stock                                     |                          |         |         |          |      |        |             |         |   |        |      |    |              |         | (21,391 | )            |   |   |        |        |   |          | (21,391  | )      
|                                                                                       | Other income (expense), net                                                             |                          |         | 5,053    |          |      |        | (1,498       | )       |   |        | 1,169 |    |              |         | 54,034  |              |   |   | (56,147 | )      |   |          | 2,611    |        
|                                                                                       |                                                                                         |                          |         |          |          |      |        |              |         |   |        |       |    |              |         |         |              |  
|(LOSS) INCOME BEFORE MINORITY INTERESTS IN INCOME OF
    SUBSIDIARIES AND INCOME TAXES |                                                                                         |                          | (9,080  | )        |          |      | (1,067 | )            |         |   | 1,154  |       |    |              | (90,344 | )       |              |   |  |         |        |   | (99,337  | )       
|MINORITY INTERESTS IN INCOME OF SUBSIDIARIES                                           |                                                                                         |                          | (6,823  | )        |          |      |       |              |         |   |       |       |    |              |        |         |              |   |  |         |        |   | (6,823   | )       
|                                                                                       |                                                                                         |                          |         |          |          |      |        |              |         |   |        |       |    |              |         |         |              |  
|(LOSS) INCOME BEFORE INCOME TAXES                                                      |                                                                                         |                          | (15,903 | )        |          |      | (1,067 | )            |         |   | 1,154  |       |    |              | (90,344 | )       |              |   |  |         |        |   | (106,160 | )       
|                                                                                       | Income tax benefit (expense)                                                            |                          |         | 8,369    |          |      |        | 835          |         |   |        | (438  | )  |              |         | 677     |              |   |   |        |        |   |          | 9,443    |        
|                                                                                       |                                                                                         |                          |         |          |          |      |        |              |         |   |        |       |    |              |         |         |              |  
|NET (LOSS) INCOME                                                                      |                                                                                         | $                        | (7,534  | )        |          | $    | (232   | )            |         | $ | 716    |       |    | $            | (89,667 | )       |              | $ |  |         |        | $ | (96,717  | )       
|                                                                                       |                                                                                         |                          |         |          |          |      |        |              |         |   |        |       |    |              |         |         |              |  

18



---



##### 



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


For the Nine Months Ended September 30, 2004


|                                                                                       |                                                                                         |                          |        |         |          |      |         |              |         |   |        |        |    |              |         |         |              |   |   |         |        |   |         |          |         | 
|-------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------- | ------------------------ | ------ | ------- | -------- | ---- | ------- | ------------ | ------- | - | ------ | ------ | -- | ------------ | ------- | ------- | ------------ | - | - | ------- | ------ | - | ------- | -------- | ------- | 
|                                                                                       |                                                                                         |                          |        |         |          | Non- |         |              |         |   |        |        |   
|                                                                                       |                                                                                         | Dobson                   |        |         | American |      |         | Guarantor    |         |   |        |        |    |              |        
|                                                                                       |                                                                                         | Cellular                 |        |         | Cellular |      |         | Subsidiaries |         |   | Parent |        |    | Eliminations |         |         | Consolidated |  
|                                                                                       |                                                                                         |                          |        |         |          |      |         |              |         |   |        |        |    |              |         |         |              |  
|                                                                                       |                                                                                         | ($ in thousands)         |       
|                                                                                       |                                                                                         | (Unaudited)              |       
|OPERATING REVENUE:                                                                     |                                                                                         |                          |        |         |          |      |         |              |         |   |        |        |    |              |         |         |              |   |   |         |        |   |         |         
|                                                                                       | Service revenue                                                                         |                          | $      | 328,519 |          |      | $       | 241,209      |         |   | $      |       |    |              | $       |        |              |   | $ |        |        |   | $       | 569,728  |        
|                                                                                       | Roaming revenue                                                                         |                          |        | 88,863  |          |      |         | 66,039       |         |   |        |       |    |              |         |        |              |   |   |        |        |   |         | 154,902  |        
|                                                                                       | Equipment and other revenue                                                             |                          |        | 25,074  |          |      |         | 14,062       |         |   |        |       |    |              |         |        |              |   |   | (5,213  | )      |   |         | 33,923   |        
|                                                                                       |                                                                                         |                          |        |         |          |      |         |              |         |   |        |        |    |              |         |         |              |  
|                                                                                       |                                                                                         | Total operating revenue  |        |         | 442,456  |      |         |              | 321,310 |   |        |        |   |              |         |         |             |   |   |         | (5,213 | ) |         |          | 758,553 | 
|                                                                                       |                                                                                         |                          |        |         |          |      |         |              |         |   |        |        |    |              |         |         |              |  
|OPERATING EXPENSES:                                                                    |                                                                                         |                          |        |         |          |      |         |              |         |   |        |        |    |              |         |         |              |   |   |         |        |   |         |         
|                                                                                       | Cost of service (exclusive of depreciation and amortization
    shown separately below) |                          |        | 113,606 |          |      |         | 72,392       |         |   |        |       |    |              |         |        |              |   |   | (541    | )      |   |         | 185,457  |        
|                                                                                       | Cost of equipment                                                                       |                          |        | 47,113  |          |      |         | 34,534       |         |   |        |       |    |              |         |        |              |   |   |        |        |   |         | 81,647   |        
|                                                                                       | Marketing and selling                                                                   |                          |        | 52,957  |          |      |         | 42,806       |         |   |        |       |    |              |         |        |              |   |   |        |        |   |         | 95,763   |        
|                                                                                       | General and administrative                                                              |                          |        | 70,717  |          |      |         | 65,665       |         |   |        | 15     |    |              |         |        |              |   |   | (4,672  | )      |   |         | 131,725  |        
|                                                                                       | Depreciation and amortization                                                           |                          |        | 79,508  |          |      |         | 62,031       |         |   |        |       |    |              |         |        |              |   |   |        |        |   |         | 141,539  |        
|                                                                                       |                                                                                         |                          |        |         |          |      |         |              |         |   |        |        |    |              |         |         |              |  
|                                                                                       |                                                                                         | Total operating expenses |        |         | 363,901  |      |         |              | 277,428 |   |        |        | 15 |              |         |         |             |   |   |         | (5,213 | ) |         |          | 636,131 | 
|                                                                                       |                                                                                         |                          |        |         |          |      |         |              |         |   |        |        |    |              |         |         |              |  
|OPERATING INCOME (LOSS)                                                                |                                                                                         |                          | 78,555 |         |          |      | 43,882  |              |         |   | (15    | )      |    |              |        |         |              |   |  |         |        |   | 122,422 |         
|                                                                                       |                                                                                         |                          |        |         |          |      |         |              |         |   |        |        |    |              |         |         |              |  
|OTHER (EXPENSE) INCOME:                                                                |                                                                                         |                          |        |         |          |      |         |              |         |   |        |        |    |              |         |         |              |   |   |         |        |   |         |         
|                                                                                       | Interest (expense) income                                                               |                          |        | (68,131 | )        |      |         | (71,339      | )       |   |        | (1,137 | )  |              |         | (66,806 | )            |   |   | 45,936  |        |   |         | (161,477 | )      
|                                                                                       | (Loss) gain from extinguishment of debt                                                 |                          |        | (349    | )        |      |         |             |         |   |        |       |    |              |         | 6,088   |              |   |   |        |        |   |         | 5,739    |        
|                                                                                       | Gain on redemption and repurchases of mandatorily redeemable
    preferred stock        |                          |        |        |          |      |         |             |         |   |        |       |    |              |         | 6,478   |              |   |   |        |        |   |         | 6,478    |        
|                                                                                       | Dividends on mandatory redeemable preferred stock                                       |                          |        |        |          |      |         |             |         |   |        |       |    |              |         | (25,197 | )            |   |   |        |        |   |         | (25,197  | )      
|                                                                                       | Other income (expense), net                                                             |                          |        | 4,686   |          |      |         | (1,969       | )       |   |        | 508    |    |              |         | 44,941  |              |   |   | (45,936 | )      |   |         | 2,230    |        
|                                                                                       |                                                                                         |                          |        |         |          |      |         |              |         |   |        |        |    |              |         |         |              |  
|INCOME (LOSS) BEFORE MINORITY INTERESTS IN INCOME OF
    SUBSIDIARIES AND INCOME TAXES |                                                                                         |                          | 14,761 |         |          |      | (29,426 | )            |         |   | (644   | )      |    |              | (34,496 | )       |              |   |  |         |        |   | (49,805 | )       
|MINORITY INTERESTS IN INCOME OF SUBSIDIARIES                                           |                                                                                         |                          | (3,514 | )       |          |      |        |              |         |   |       |        |    |              |        |         |              |   |  |         |        |   | (3,514  | )       
|                                                                                       |                                                                                         |                          |        |         |          |      |         |              |         |   |        |        |    |              |         |         |              |  
|INCOME (LOSS) BEFORE INCOME TAXES                                                      |                                                                                         |                          | 11,247 |         |          |      | (29,426 | )            |         |   | (644   | )      |    |              | (34,496 | )       |              |   |  |         |        |   | (53,319 | )       
|                                                                                       | Income tax (expense) benefit                                                            |                          |        | (4,274  | )        |      |         | 11,182       |         |   |        | 245    |    |              |         | 5,986   |              |   |   |        |        |   |         | 13,139   |        
|                                                                                       |                                                                                         |                          |        |         |          |      |         |              |         |   |        |        |    |              |         |         |              |  
|INCOME (LOSS) FROM CONTINUING OPERATION                                                |                                                                                         |                          | 6,973  |         |          |      | (18,244 | )            |         |   | (399   | )      |    |              | (28,510 | )       |              |   |  |         |        |   | (40,180 | )       
|                                                                                       | Income from discontinued operations, net of income tax expense                          |                          |        | 443     |          |      |         |             |         |   |        |       |    |              |         |        |              |   |   |        |        |   |         | 443      |        
|                                                                                       |                                                                                         |                          |        |         |          |      |         |              |         |   |        |        |    |              |         |         |              |  
|NET INCOME (LOSS)                                                                      |                                                                                         | $                        | 7,416  |         |          | $    | (18,244 | )            |         | $ | (399   | )      |    | $            | (28,510 | )       |              | $ |  |         |        | $ | (39,737 | )       
|                                                                                       |                                                                                         |                          |        |         |          |      |         |              |         |   |        |        |    |              |         |         |              |  

19



---



##### 



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


For the Nine Months Ended September 30, 2005


|                                                     |                                                                                                                                                          |                                                                                  |                                                     |         |          |         |        |              |         |         |         |         |     |              |       |              |        |          |   |   |   |   |         |          |         |          |  
|---------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------- | --------------------------------------------------- | ------- | -------- | ------- | ------ | ------------ | ------- | ------- | ------- | ------- | --- | ------------ | ----- | ------------ | ------ | -------- | - | - | - | - | ------- | -------- | ------- | -------- | -
|                                                     |                                                                                                                                                          |                                                                                  |                                                     |         |          | Non-    |        |              |         |         |         |         |    
|                                                     |                                                                                                                                                          | Dobson                                                                           |                                                     |         | American |         |        | Guarantor    |         |         |         |         |     |              |      
|                                                     |                                                                                                                                                          | Cellular                                                                         |                                                     |         | Cellular |         |        | Subsidiaries |         |         | Parent  |         |     | Eliminations |       | Consolidated |       
|                                                     |                                                                                                                                                          |                                                                                  |                                                     |         |          |         |        |              |         |         |         |         |     |              |       |              |       
|                                                     |                                                                                                                                                          | ($ in thousands)                                                                 |                                                    
|                                                     |                                                                                                                                                          | (Unaudited)                                                                      |                                                    
|CASH FLOWS FROM OPERATING ACTIVITIES:                |                                                                                                                                                          |                                                                                  |                                                     |         |          |         |        |              |         |         |         |         |     |              |       |              |        |          |   |   |   |   |         |         
|                                                     | (Loss) income from continuing operations                                                                                                                 |                                                                                  | $                                                   | (7,534  | )        |         | $      | (232         | )       |         | $       | 716     |     |              | $     | (89,667      | )      |          | $ |  |   |   | $       | (96,717  | )      
|                                                     | Adjustments to reconcile (loss) income from continuing
    operations to net cash provided by operating activities, net of
    effects of acquisitions  |                                                                                  |                                                     |         |          |         |        |              |         |         |         |         |     |              |       |              |        |          |   |   |   |   |         |          |        
|                                                     |                                                                                                                                                          | Depreciation and amortization                                                    |                                                     |         | 88,238   |         |        |              | 62,774  |         |         |         |    |              |       |              |       |          |   |   |  |   |         |          | 151,012 |         
|                                                     |                                                                                                                                                          | Amortization of bond discount and deferred financing costs                       |                                                     |         | 1,459    |         |        |              | 2,537   |         |         |         |    |              |       |              | 1,502  |          |   |   |  |   |         |          | 5,498   |         
|                                                     |                                                                                                                                                          | Deferred income taxes                                                            |                                                     |         | (8,696   | )       |        |              | (821    | )       |         |         | 438 |              |       |              | (677   | )        |   |   |  |   |         |          | (9,756  | )       
|                                                     |                                                                                                                                                          | Non-cash mandatorily redeemable preferred stock dividends                        |                                                     |         |         |         |        |              |        |         |         |         |    |              |       |              | 21,391 |          |   |   |  |   |         |          | 21,391  |         
|                                                     |                                                                                                                                                          | Loss on redemption and repurchases of mandatorily redeemable
    preferred stock |                                                     |         |         |         |        |              |        |         |         |         |    |              |       |              | 66,383 |          |   |   |  |   |         |          | 66,383  |         
|                                                     |                                                                                                                                                          | Gain on disposition of operating assets, net                                     |                                                     |         | (783     | )       |        |              | (1,588  | )       |         |         |    |              |       |              |       |          |   |   |  |   |         |          | (2,371  | )       
|                                                     |                                                                                                                                                          | Other operating activities                                                       |                                                     |         | 6,787    |         |        |              | 6       |         |         |         |    |              |       |              |       |          |   |   |  |   |         |          | 6,793   |         
|                                                     | Changes in current assets and liabilities                                                                                                               |                                                                                  |                                                     |         |          |         |        |              |         |         |         |         |     |              |       |              |        |          |   |   |   |   |         |          |        
|                                                     |                                                                                                                                                          | Accounts receivable                                                              |                                                     |         | (25,068  | )       |        |              | (12,633 | )       |         |         |    |              |       |              |       |          |   |   |  |   |         |          | (37,701 | )       
|                                                     |                                                                                                                                                          | Inventory                                                                        |                                                     |         | 1,623    |         |        |              | 698     |         |         |         |    |              |       |              |       |          |   |   |  |   |         |          | 2,321   |         
|                                                     |                                                                                                                                                          | Prepaid expenses and other                                                       |                                                     |         | (7,009   | )       |        |              | (896    | )       |         |         | (5  | )            |       |              |       |          |   |   |  |   |         |          | (7,910  | )       
|                                                     |                                                                                                                                                          | Accounts payable                                                                 |                                                     |         | 12,880   |         |        |              | 4,508   |         |         |         |    |              |       |              | 56     |          |   |   |  |   |         |          | 17,444  |         
|                                                     |                                                                                                                                                          | Accrued expenses                                                                 |                                                     |         | 15,613   |         |        |              | (22,234 | )       |         |         | 57  |              |       |              | 2,951  |          |   |   |  |   |         |          | (3,613  | )       
|                                                     |                                                                                                                                                          | Deferred revenue and customer deposits                                           |                                                     |         | 651      |         |        |              | (96     | )       |         |         |    |              |       |              |       |          |   |   |  |   |         |          | 555     |         
|                                                     |                                                                                                                                                          |                                                                                  |                                                     |         |          |         |        |              |         |         |         |         |     |              |       |              |        |         
|                                                     |                                                                                                                                                          |                                                                                  | Net cash provided by operating activities           |         |          | 78,161  |        |              |         | 32,023  |         |         |     | 1,206        |       |              |        | 1,939    |   |   |   |  |         |          |         | 113,329  |  
|                                                     |                                                                                                                                                          |                                                                                  |                                                     |         |          |         |        |              |         |         |         |         |     |              |       |              |        |         
|CASH FLOWS FROM INVESTING ACTIVITIES:                |                                                                                                                                                          |                                                                                  |                                                     |         |          |         |        |              |         |         |         |         |     |              |       |              |        |          |   |   |   |   |         |         
|                                                     | Capital expenditures                                                                                                                                     |                                                                                  |                                                     | (76,972 | )        |         |        | (36,266      | )       |         |         |        |     |              |       |             |        |          |   |  |   |   |         | (113,238 | )      
|                                                     | Purchase of wireless licenses and properties                                                                                                             |                                                                                  |                                                     | (1,311  | )        |         |        | (15,175      | )       |         |         |        |     |              |       |             |        |          |   |  |   |   |         | (16,486  | )      
|                                                     | Proceeds from the sale of assets                                                                                                                         |                                                                                  |                                                     | 50,619  |          |         |        | 30,948       |         |         |         |        |     |              |       |             |        |          |   |  |   |   |         | 81,567   |        
|                                                     | Sales of marketable securities                                                                                                                           |                                                                                  |                                                     | 39,000  |          |         |        |             |         |         |         |        |     |              |       |             |        |          |   |  |   |   |         | 39,000   |        
|                                                     | (Increase) decrease in receivable-affiliates                                                                                                             |                                                                                  |                                                     | (29,630 | )        |         |        | 2,981        |         |         |         | (26,212 | )   |              |       | 52,861       |        |          |   |  |   |   |         |         |        
|                                                     | Increase in restricted cash                                                                                                                              |                                                                                  |                                                     |        |          |         |        |             |         |         |         |        |     |              |       | (294,000     | )      |          |   |  |   |   |         | (294,000 | )      
|                                                     | Other investing activities                                                                                                                               |                                                                                  |                                                     | (1,178  | )        |         |        | (289         | )       |         |         |        |     |              |       |             |        |          |   |  |   |   |         | (1,467   | )      
|                                                     |                                                                                                                                                          |                                                                                  |                                                     |         |          |         |        |              |         |         |         |         |     |              |       |              |        |         
|                                                     |                                                                                                                                                          |                                                                                  | Net cash used in investing activities               |         |          | (19,472 | )      |              |         | (17,801 | )       |         |     | (26,212      | )     |              |        | (241,139 | ) |   |   |  |         |          |         | (304,624 | )
|                                                     |                                                                                                                                                          |                                                                                  |                                                     |         |          |         |        |              |         |         |         |         |     |              |       |              |        |         
|CASH FLOWS FROM FINANCING ACTIVITIES:                |                                                                                                                                                          |                                                                                  |                                                     |         |          |         |        |              |         |         |         |         |     |              |       |              |        |          |   |   |   |   |         |         
|                                                     | Proceeds from senior notes                                                                                                                               |                                                                                  |                                                     |        |          |         |        |             |         |         |         |        |     |              |       | 300,000      |        |          |   |  |   |   |         | 300,000  |        
|                                                     | Distributions to minority interest holders                                                                                                               |                                                                                  |                                                     | (6,004  | )        |         |        |             |         |         |         |        |     |              |       |             |        |          |   |  |   |   |         | (6,004   | )      
|                                                     | Exchange offer financing costs                                                                                                                           |                                                                                  |                                                     |        |          |         |        |             |         |         |         |        |     |              |       | (52,674      | )      |          |   |  |   |   |         | (52,674  | )      
|                                                     | Deferred financing costs                                                                                                                                 |                                                                                  |                                                     | (521    | )        |         |        | (5           | )       |         |         |        |     |              |       | (6,073       | )      |          |   |  |   |   |         | (6,599   | )      
|                                                     | Maturities of restricted investments                                                                                                                     |                                                                                  |                                                     | 6,002   |          |         |        |             |         |         |         |        |     |              |       |             |        |          |   |  |   |   |         | 6,002    |        
|                                                     | Other financing activities                                                                                                                               |                                                                                  |                                                     |        |          |         |        | (22          | )       |         |         |        |     |              |       | 2,490        |        |          |   |  |   |   |         | 2,468    |        
|                                                     |                                                                                                                                                          |                                                                                  |                                                     |         |          |         |        |              |         |         |         |         |     |              |       |              |        |         
|                                                     |                                                                                                                                                          |                                                                                  | Net cash (used in) provided by financing activities |         |          | (523    | )      |              |         | (27     | )       |         |     |             |       |              |        | 243,743  |   |   |   |  |         |          |         | 243,193  |  
|                                                     |                                                                                                                                                          |                                                                                  |                                                     |         |          |         |        |              |         |         |         |         |     |              |       |              |        |         
|NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |                                                                                                                                                          |                                                                                  | 58,166                                              |         |          |         | 14,195 |              |         |         | (25,006 | )       |     |              | 4,543 |              |        |          |  |   |   |   | 51,898  |         
|CASH AND CASH EQUIVALENTS, beginning of period       |                                                                                                                                                          |                                                                                  | 47,427                                              |         |          |         | 41,489 |              |         |         | 48,303  |         |     |              | 2,665 |              |        |          |  |   |   |   | 139,884 |         
|                                                     |                                                                                                                                                          |                                                                                  |                                                     |         |          |         |        |              |         |         |         |         |     |              |       |              |        |         
|CASH AND CASH EQUIVALENTS, end of period             |                                                                                                                                                          | $                                                                                | 105,593                                             |         |          | $       | 55,684 |              |         | $       | 23,297  |         |     | $            | 7,208 |              |        | $        |  |   |   | $ | 191,782 |         
|                                                     |                                                                                                                                                          |                                                                                  |                                                     |         |          |         |        |              |         |         |         |         |     |              |       |              |        |         

20



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##### 



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


For the Nine Months Ended September 30, 2004


|                                                     |                                                                                                                                                                    |                                                                                  |                                                     |         |          |        |         |              |         |       |        |         |         |              |         |              |          |         |   |   |   |   |         |          |         |        | 
|---------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------- | --------------------------------------------------- | ------- | -------- | ------ | ------- | ------------ | ------- | ----- | ------ | ------- | ------- | ------------ | ------- | ------------ | -------- | ------- | - | - | - | - | ------- | -------- | ------- | ------ | 
|                                                     |                                                                                                                                                                    |                                                                                  |                                                     |         |          | Non-   |         |              |         |       |        |         |        
|                                                     |                                                                                                                                                                    | Dobson                                                                           |                                                     |         | American |        |         | Guarantor    |         |       |        |         |         |              |        
|                                                     |                                                                                                                                                                    | Cellular                                                                         |                                                     |         | Cellular |        |         | Subsidiaries |         |       | Parent |         |         | Eliminations |         | Consolidated |         
|                                                     |                                                                                                                                                                    |                                                                                  |                                                     |         |          |        |         |              |         |       |        |         |         |              |         |              |         
|                                                     |                                                                                                                                                                    | ($ in thousands)                                                                 |                                                    
|                                                     |                                                                                                                                                                    | (Unaudited)                                                                      |                                                    
|CASH FLOWS FROM OPERATING ACTIVITIES:                |                                                                                                                                                                    |                                                                                  |                                                     |         |          |        |         |              |         |       |        |         |         |              |         |              |          |         |   |   |   |   |         |         
|                                                     | Income (loss) from continuing operations                                                                                                                           |                                                                                  | $                                                   | 6,973   |          |        | $       | (18,244      | )       |       | $      | (399    | )       |              | $       | (28,510      | )        |         | $ |  |   |   | $       | (40,180  | )      
|                                                     | Adjustments to reconcile income (loss) from continuing
    operations to net cash provided by (used in) operating
    activities, net of effects of acquisitions  |                                                                                  |                                                     |         |          |        |         |              |         |       |        |         |         |              |         |              |          |         |   |   |   |   |         |          |        
|                                                     |                                                                                                                                                                    | Depreciation and amortization                                                    |                                                     |         | 79,508   |        |         |              | 62,031  |       |        |         |        |              |         |              |         |         |   |   |  |   |         |          | 141,539 |       
|                                                     |                                                                                                                                                                    | Amortization of bond discount and deferred financing costs                       |                                                     |         | 1,805    |        |         |              | 2,455   |       |        |         |        |              |         |              | 1,797    |         |   |   |  |   |         |          | 6,057   |       
|                                                     |                                                                                                                                                                    | Deferred income taxes                                                            |                                                     |         | 3,683    |        |         |              | (11,616 | )     |        |         | (245    | )            |         |              | (5,986   | )       |   |   |  |   |         |          | (14,164 | )     
|                                                     |                                                                                                                                                                    | Non-cash mandatorily redeemable preferred stock dividends                        |                                                     |         |         |        |         |              |        |       |        |         |        |              |         |              | 6,850    |         |   |   |  |   |         |          | 6,850   |       
|                                                     |                                                                                                                                                                    | Gain on redemption and repurchases of mandatorily redeemable
    preferred stock |                                                     |         |         |        |         |              |        |       |        |         |        |              |         |              | (6,478   | )       |   |   |  |   |         |          | (6,478  | )     
|                                                     |                                                                                                                                                                    | Other operating activities                                                       |                                                     |         | 2,882    |        |         |              | 24      |       |        |         |        |              |         |              | 1,093    |         |   |   |  |   |         |          | 3,999   |       
|                                                     | Changes in current assets and liabilities                                                                                                                         |                                                                                  |                                                     |         |          |        |         |              |         |       |        |         |         |              |         |              |          |         |   |   |   |   |         |          |        
|                                                     |                                                                                                                                                                    | Accounts receivable                                                              |                                                     |         | (187     | )      |         |              | 2,512   |       |        |         |        |              |         |              |         |         |   |   |  |   |         |          | 2,325   |       
|                                                     |                                                                                                                                                                    | Inventory                                                                        |                                                     |         | (2,319   | )      |         |              | (1,525  | )     |        |         |        |              |         |              |         |         |   |   |  |   |         |          | (3,844  | )     
|                                                     |                                                                                                                                                                    | Prepaid expenses and other                                                       |                                                     |         | (7,041   | )      |         |              | (1,266  | )     |        |         | (5      | )            |         |              |         |         |   |   |  |   |         |          | (8,312  | )     
|                                                     |                                                                                                                                                                    | Accounts payable                                                                 |                                                     |         | (18,858  | )      |         |              | (6,206  | )     |        |         |        |              |         |              |         |         |   |   |  |   |         |          | (25,064 | )     
|                                                     |                                                                                                                                                                    | Accrued expenses                                                                 |                                                     |         | (6,614   | )      |         |              | (19,327 | )     |        |         | (14,163 | )            |         |              | 16,965   |         |   |   |  |   |         |          | (23,139 | )     
|                                                     |                                                                                                                                                                    | Deferred revenue and customer deposits                                           |                                                     |         | 695      |        |         |              | (27     | )     |        |         |        |              |         |              | (7       | )       |   |   |  |   |         |          | 661     |       
|                                                     |                                                                                                                                                                    |                                                                                  |                                                     |         |          |        |         |              |         |       |        |         |         |              |         |              |          |        
|                                                     |                                                                                                                                                                    |                                                                                  | Net cash provided by (used in) operating activities |         |          | 60,527 |         |              |         | 8,811 |        |         |         | (14,812      | )       |              |          | (14,276 | ) |   |   |  |         |          |         | 40,250 | 
|                                                     |                                                                                                                                                                    |                                                                                  |                                                     |         |          |        |         |              |         |       |        |         |         |              |         |              |          |        
|CASH FLOWS FROM INVESTING ACTIVITIES:                |                                                                                                                                                                    |                                                                                  |                                                     |         |          |        |         |              |         |       |        |         |         |              |         |              |          |         |   |   |   |   |         |         
|                                                     | Capital expenditures                                                                                                                                               |                                                                                  |                                                     | (83,364 | )        |        |         | (34,451      | )       |       |        |        |         |              |         |             |          |         |   |  |   |   |         | (117,815 | )      
|                                                     | Purchase of wireless licenses and properties                                                                                                                       |                                                                                  |                                                     | (29,970 | )        |        |         |             |         |       |        |        |         |              |         |             |          |         |   |  |   |   |         | (29,970  | )      
|                                                     | Receipt of funds held in escrow for contingencies on sold assets                                                                                                   |                                                                                  |                                                     | 7,185   |          |        |         | 4,169        |         |       |        |        |         |              |         |             |          |         |   |  |   |   |         | 11,354   |        
|                                                     | Cash received from exchange of assets                                                                                                                              |                                                                                  |                                                     | 21,978  |          |        |         |             |         |       |        |        |         |              |         |             |          |         |   |  |   |   |         | 21,978   |        
|                                                     | Purchases of marketable securities                                                                                                                                 |                                                                                  |                                                     |        |          |        |         |             |         |       |        | (25,000 | )       |              |         |             |          |         |   |  |   |   |         | (25,000  | )      
|                                                     | Sales of marketable securities                                                                                                                                     |                                                                                  |                                                     |        |          |        |         |             |         |       |        | 81,700  |         |              |         |             |          |         |   |  |   |   |         | 81,700   |        
|                                                     | (Increase) decrease in receivable-affiliates                                                                                                                       |                                                                                  |                                                     | (29,066 | )        |        |         | 1,264        |         |       |        | (72,391 | )       |              |         | 100,193      |          |         |   |  |   |   |         |         |        
|                                                     | Other investing activities                                                                                                                                         |                                                                                  |                                                     | 138     |          |        |         | (50          | )       |       |        |        |         |              |         | (6           | )        |         |   |  |   |   |         | 82       |        
|                                                     |                                                                                                                                                                    |                                                                                  |                                                     |         |          |        |         |              |         |       |        |         |         |              |         |              |          |        
|                                                     |                                                                                                                                                                    | Net cash (used in) provided by investing activities                              |                                                     |         | (113,099 | )      |         |              | (29,068 | )     |        |         | (15,691 | )            |         |              | 100,187  |         |   |   |  |   |         |          | (57,671 | )     
|                                                     |                                                                                                                                                                    |                                                                                  |                                                     |         |          |        |         |              |         |       |        |         |         |              |         |              |          |        
|CASH FLOWS FROM FINANCING ACTIVITIES:                |                                                                                                                                                                    |                                                                                  |                                                     |         |          |        |         |              |         |       |        |         |         |              |         |              |          |         |   |   |   |   |         |         
|                                                     | Proceeds from long-term debt                                                                                                                                       |                                                                                  |                                                     | 40,000  |          |        |         |             |         |       |        |        |         |              |         |             |          |         |   |  |   |   |         | 40,000   |        
|                                                     | Repayments and purchases of long-term debt                                                                                                                         |                                                                                  |                                                     | (28,370 | )        |        |         |             |         |       |        |        |         |              |         | (55,520      | )        |         |   |  |   |   |         | (83,890  | )      
|                                                     | Preferred stock dividends paid                                                                                                                                     |                                                                                  |                                                     |        |          |        |         |             |         |       |        |        |         |              |         | (3,676       | )        |         |   |  |   |   |         | (3,676   | )      
|                                                     | Distributions to minority interest holders                                                                                                                         |                                                                                  |                                                     | (4,113  | )        |        |         |             |         |       |        |        |         |              |         |             |          |         |   |  |   |   |         | (4,113   | )      
|                                                     | Redemption and repurchases of exchangeable preferred stock                                                                                                         |                                                                                  |                                                     |        |          |        |         |             |         |       |        |        |         |              |         | (17,376      | )        |         |   |  |   |   |         | (17,376  | )      
|                                                     | Investment in subsidiary                                                                                                                                           |                                                                                  |                                                     | (2,300  | )        |        |         |             |         |       |        |        |         |              |         | 2,300        |          |         |   |  |   |   |         |         |        
|                                                     | Capital contribution from parent                                                                                                                                   |                                                                                  |                                                     |        |          |        |         |             |         |       |        | 65,300  |         |              |         | (65,300      | )        |         |   |  |   |   |         |         |        
|                                                     | Other financing costs                                                                                                                                              |                                                                                  |                                                     | (1,498  | )        |        |         | (81          | )       |       |        |        |         |              |         | 8            |          |         |   |  |   |   |         | (1,571   | )      
|                                                     |                                                                                                                                                                    |                                                                                  |                                                     |         |          |        |         |              |         |       |        |         |         |              |         |              |          |        
|                                                     |                                                                                                                                                                    | Net cash provided by (used in) financing activities                              |                                                     |         | 3,719    |        |         |              | (81     | )     |        |         | 65,300  |              |         |              | (139,564 | )       |   |   |  |   |         |          | (70,626 | )     
|                                                     |                                                                                                                                                                    |                                                                                  |                                                     |         |          |        |         |              |         |       |        |         |         |              |         |              |          |        
|NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS |                                                                                                                                                                    |                                                                                  | (48,853                                             | )       |          |        | (20,338 | )            |         |       | 34,797 |         |         |              | (53,653 | )            |          |         |  |   |   |   | (88,047 | )       
|CASH AND CASH EQUIVALENTS, beginning of period       |                                                                                                                                                                    |                                                                                  | 59,387                                              |         |          |        | 27,505  |              |         |       | 3,801  |         |         |              | 60,846  |              |          |         |  |   |   |   | 151,539 |         
|                                                     |                                                                                                                                                                    |                                                                                  |                                                     |         |          |        |         |              |         |       |        |         |         |              |         |              |          |        
|CASH AND CASH EQUIVALENTS, end of period             |                                                                                                                                                                    | $                                                                                | 10,534                                              |         |          | $      | 7,167   |              |         | $     | 38,598 |         |         | $            | 7,193   |              |          | $       |  |   |   | $ | 63,492  |         
|                                                     |                                                                                                                                                                    |                                                                                  |                                                     |         |          |        |         |              |         |       |        |         |         |              |         |              |          |        

21



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##### 



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)





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, 2004 consolidated
financial statements included in our Annual Report on
Form 10-K for the fiscal year ended December 31, 2004
and our condensed consolidated financial statements and the
related notes included in Item 1.


OVERVIEW








CRITICAL ACCOUNTING POLICIES AND PRACTICES






ACQUISITIONS AND DISCONTINUED OPERATIONS




Acquisition of Pennsylvania 4 RSA.




22



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##### 



Acquisition of Michigan 2 and 4 RSAs.






Acquisition of NPI.




Maryland/ Michigan Swap.




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 will receive from Cingular approximately $7.8 million as
    a settlement for prior claims under various agreements between
    us and the former AT&T Wireless, and will also 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 the right to acquire for $6.0 million, 10 MHz
    of spectrum covering 1.1 million POPs, 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.

23



---



##### 



RESULTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2005 AND 2004




|                                                  |  |                    |            |   |                   |   |            |      |  |   |            |   |  |   |            |  
|------------------------------------------------- |  | ------------------ | ---------- | - | ----------------- | - | ---------- | ---- |  | - | ---------- | - |  | - | ---------- | -
|                                                  |  | Three Months Ended |            |   | Nine Months Ended |  
|                                                  |  | September 30,      |            |   | September 30,     |  
|                                                  |  |                    |            |   |                   |  
|                                                  |  | 2005               |            |   | 2004              |   |            | 2005 |  |   | 2004       |  
|                                                  |  |                    |            |   |                   |   |            |      |  |   |            |  
|Market population(1)                              |  |                    | 11,854,000 |   |                   |   | 11,436,800 |      |  |   | 11,854,000 |   |  |   | 11,436,800 |  
|Ending subscribers                                |  |                    | 1,565,900  |   |                   |   | 1,608,700  |      |  |   | 1,565,900  |   |  |   | 1,608,700  |  
|Market penetration(2)                             |  |                    | 13.2       | % |                   |   | 14.1       | %    |  |   | 13.2       | % |  |   | 14.1       | %
|Gross subscriber additions                        |  |                    | 131,400    |   |                   |   | 121,600    |      |  |   | 384,900    |   |  |   | 328,200    |  
|Average subscribers                               |  |                    | 1,577,500  |   |                   |   | 1,608,100  |      |  |   | 1,588,600  |   |  |   | 1,578,400  |  
|Average monthly service revenue per subscriber(3) |  | $                  | 47         |   |                   | $ | 41         |      |  | $ | 45         |   |  | $ | 40         |  
|Average monthly post-paid churn(4)                |  |                    | 2.8        | % |                   |   | 2.0        | %    |  |   | 2.5        | % |  |   | 1.9        | %






|    |                                                                                                                                                                                                                                                                                                                                              
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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) | 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.                                             
|   
|(4) | 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.                                                                      

24



---



##### 



Basis of Presentation




|                                                                                        |  |                                       |         |                  |         |   |                |         |  |                  |            |   |                    |             |         |   |  |  |        |   
|--------------------------------------------------------------------------------------- |  | ------------------------------------- | ------- | ---------------- | ------- | - | -------------- | ------- |  | ---------------- | ---------- | - | ------------------ | ----------- | ------- | - |  |  | ------ | --
|                                                                                        |  | Three Months Ended September 30, 2005 |         |                  |         |   |               
|                                                                                        |  |                                       |         |                  |         |   | Percentage     |        
|                                                                                        |  |                                       |         | Adjusted Results |         |   | Three Months   |         |  | Change in        |           
|                                                                                        |  |                                       |         | Without          |         |   | Ended          |         |  | Adjusted Results |           
|                                                                                        |  |                                       |         | Impact From      |         |   | Impact From    |         |  | September 30,    |            |   | Versus             |            
|                                                                                        |  |                                       |         | Newly Acquired   |         |   | Newly Acquired |         |  | 2004             |            |   | Historical Results |            
|                                                                                        |  | Historical                            |         |                  | Markets |   |                | Markets |  |                  | Historical |   |                    | 05 vs. 04 |        
|                                                                                        |  |                                       |         |                  |         |   |                |         |  |                  |            |   |                    |             |        
|                                                                                        |  | ($ In thousands)                      |        
|Operating Revenue:                                                                      |  |                                       |         |                  |         |   |                |         |  |                  |            |   |                    |             |         |   |  |  |        |   
|Service revenue                                                                         |  | $                                     | 221,311 |                  |         | $ | 2,224          |         |  | $                | 219,087    |   |                    | $           | 198,740 |   |  |  | 10.2   | % 
|Roaming revenue                                                                         |  |                                       | 80,430  |                  |         |   | 1,140          |         |  |                  | 79,290     |   |                    |             | 62,221  |   |  |  | 27.4   | % 
|Equipment and other revenue                                                             |  |                                       | 14,078  |                  |         |   | 296            |         |  |                  | 13,782     |   |                    |             | 11,438  |   |  |  | 20.5   | % 
|                                                                                        |  |                                       |         |                  |         |   |                |         |  |                  |            |   |                    |             |        
|Total operating revenue                                                                 |  |                                       | 315,819 |                  |         |   | 3,660          |         |  |                  | 312,159    |   |                    |             | 272,399 |   |  |  | 14.6   | % 
|                                                                                        |  |                                       |         |                  |         |   |                |         |  |                  |            |   |                    |             |        
|Operating Expenses:                                                                     |  |                                       |         |                  |         |   |                |         |  |                  |            |   |                    |             |         |   |  |  |        |   
|Cost of service (exclusive of depreciation and amortization
    shown separately below) |  |                                       | 77,950  |                  |         |   | 1,758          |         |  |                  | 76,192     |   |                    |             | 69,299  |   |  |  | 9.9    | % 
|Cost of equipment                                                                       |  |                                       | 32,156  |                  |         |   | 69             |         |  |                  | 32,087     |   |                    |             | 30,242  |   |  |  | 6.1    | % 
|Marketing and selling                                                                   |  |                                       | 35,535  |                  |         |   | 1,038          |         |  |                  | 34,497     |   |                    |             | 32,816  |   |  |  | 5.1    | % 
|General and administrative                                                              |  |                                       | 50,725  |                  |         |   | 1,334          |         |  |                  | 49,391     |   |                    |             | 44,893  |   |  |  | 10.0   | % 
|Depreciation and amortization                                                           |  |                                       | 49,102  |                  |         |   | 455            |         |  |                  | 48,647     |   |                    |             | 49,456  |   |  |  | (1.6   | )%
|Gain on disposition of operating assets                                                 |  |                                       | (1,432  | )                |         |   |               |         |  |                  | (1,432     | ) |                    |             |        |   |  |  | *      |   
|                                                                                        |  |                                       |         |                  |         |   |                |         |  |                  |            |   |                    |             |        
|Total operating expenses                                                                |  |                                       | 244,036 |                  |         |   | 4,654          |         |  |                  | 239,382    |   |                    |             | 226,706 |   |  |  | 5.6    | % 
|                                                                                        |  |                                       |         |                  |         |   |                |         |  |                  |            |   |                    |             |        
|Operating income (loss)                                                                 |  |                                       | 71,783  |                  |         |   | (994           | )       |  |                  | 72,777     |   |                    |             | 45,693  |   |  |  | 59.3   | % 
|Interest expense                                                                        |  |                                       | (62,457 | )                |         |   |               |         |  |                  | (62,457    | ) |                    |             | (54,456 | ) |  |  | 14.7   | % 
|(Loss) gain on redemption and repurchases of mandatorily
    redeemable preferred stock |  |                                       | (66,383 | )                |         |   |               |         |  |                  | (66,383    | ) |                    |             | 1,410   |   |  |  | *      |   
|Dividends on mandatorily redeemable preferred stock                                     |  |                                       | (5,464  | )                |         |   |               |         |  |                  | (5,464     | ) |                    |             | (8,290  | ) |  |  | (34.1  | )%
|Other income, net                                                                       |  |                                       | 2,633   |                  |         |   |               |         |  |                  | 2,633      |   |                    |             | 511     |   |  |  | 415.3  | % 
|Minority interest in income of subsidiaries                                             |  |                                       | (2,347  | )                |         |   |               |         |  |                  | (2,347     | ) |                    |             | (1,512  | ) |  |  | 55.2   | % 
|Income tax (expense) benefit                                                            |  |                                       | (1,196  | )                |         |   | 348            |         |  |                  | (1,544     | ) |                    |             | 5,636   |   |  |  | *      |   
|                                                                                        |  |                                       |         |                  |         |   |                |         |  |                  |            |   |                    |             |        
|(Loss) income from continuing operations                                                |  | $                                     | (63,431 | )                |         | $ | (646           | )       |  | $                | (62,785    | ) |                    | $           | (11,008 | ) |  |  | (470.4 | )%
|                                                                                        |  |                                       |         |                  |         |   |                |         |  |                  |            |   |                    |             |        

25



---



##### 



|                                                                                        |  |                                      |          |                  |         |   |                |         |  |                  |            |   |                    |             |          |   |  |  |        |   
|--------------------------------------------------------------------------------------- |  | ------------------------------------ | -------- | ---------------- | ------- | - | -------------- | ------- |  | ---------------- | ---------- | - | ------------------ | ----------- | -------- | - |  |  | ------ | --
|                                                                                        |  | Nine Months Ended September 30, 2005 |          |                  |         |   |               
|                                                                                        |  |                                      |          |                  |         |   | Percentage     |        
|                                                                                        |  |                                      |          | Adjusted Results |         |   | Nine Months    |         |  | Change in        |           
|                                                                                        |  |                                      |          | Without          |         |   | Ended          |         |  | Adjusted Results |           
|                                                                                        |  |                                      |          | Impact From      |         |   | Impact From    |         |  | September 30,    |            |   | Versus             |            
|                                                                                        |  |                                      |          | Newly Acquired   |         |   | Newly Acquired |         |  | 2004             |            |   | Historical Results |            
|                                                                                        |  | Historical                           |          |                  | Markets |   |                | Markets |  |                  | Historical |   |                    | 05 vs. 04 |         
|                                                                                        |  |                                      |          |                  |         |   |                |         |  |                  |            |   |                    |             |         
|                                                                                        |  | ($ In thousands)                     |         
|Operating Revenue:                                                                      |  |                                      |          |                  |         |   |                |         |  |                  |            |   |                    |             |          |   |  |  |        |   
|Service revenue                                                                         |  | $                                    | 643,377  |                  |         | $ | 9,922          |         |  | $                | 633,455    |   |                    | $           | 569,728  |   |  |  | 11.2   | % 
|Roaming revenue                                                                         |  |                                      | 195,009  |                  |         |   | 6,261          |         |  |                  | 188,748    |   |                    |             | 154,902  |   |  |  | 21.8   | % 
|Equipment and other revenue                                                             |  |                                      | 46,857   |                  |         |   | 1,452          |         |  |                  | 45,405     |   |                    |             | 33,923   |   |  |  | 33.8   | % 
|                                                                                        |  |                                      |          |                  |         |   |                |         |  |                  |            |   |                    |             |         
|Total operating revenue                                                                 |  |                                      | 885,243  |                  |         |   | 17,635         |         |  |                  | 867,608    |   |                    |             | 758,553  |   |  |  | 14.4   | % 
|                                                                                        |  |                                      |          |                  |         |   |                |         |  |                  |            |   |                    |             |         
|Operating Expenses:                                                                     |  |                                      |          |                  |         |   |                |         |  |                  |            |   |                    |             |          |   |  |  |        |   
|Cost of service (exclusive of depreciation and amortization
    shown separately below) |  |                                      | 219,214  |                  |         |   | 8,110          |         |  |                  | 211,104    |   |                    |             | 185,457  |   |  |  | 13.8   | % 
|Cost of equipment                                                                       |  |                                      | 96,777   |                  |         |   | 1,741          |         |  |                  | 95,036     |   |                    |             | 81,647   |   |  |  | 16.4   | % 
|Marketing and selling                                                                   |  |                                      | 105,484  |                  |         |   | 4,004          |         |  |                  | 101,480    |   |                    |             | 95,763   |   |  |  | 6.0    | % 
|General and administrative                                                              |  |                                      | 144,844  |                  |         |   | 5,726          |         |  |                  | 139,118    |   |                    |             | 131,725  |   |  |  | 5.6    | % 
|Depreciation and amortization                                                           |  |                                      | 151,012  |                  |         |   | 3,925          |         |  |                  | 147,087    |   |                    |             | 141,539  |   |  |  | 3.9    | % 
|Gain on disposition of operating assets                                                 |  |                                      | (2,371   | )                |         |   |               |         |  |                  | (2,371     | ) |                    |             |         |   |  |  | *      |   
|                                                                                        |  |                                      |          |                  |         |   |                |         |  |                  |            |   |                    |             |         
|Total operating expenses                                                                |  |                                      | 714,960  |                  |         |   | 23,506         |         |  |                  | 691,454    |   |                    |             | 636,131  |   |  |  | 8.7    | % 
|                                                                                        |  |                                      |          |                  |         |   |                |         |  |                  |            |   |                    |             |         
|Operating income (loss)                                                                 |  |                                      | 170,283  |                  |         |   | (5,871         | )       |  |                  | 176,154    |   |                    |             | 122,422  |   |  |  | 43.9   | % 
|Interest expense                                                                        |  |                                      | (184,457 | )                |         |   |               |         |  |                  | (184,457   | ) |                    |             | (161,477 | ) |  |  | 14.2   | % 
|Gain from extinguishment of debt                                                        |  |                                      |         |                  |         |   |               |         |  |                  |           |   |                    |             | 5,739    |   |  |  | *      |   
|(Loss) gain on redemption and repurchases of mandatorily
    redeemable preferred stock |  |                                      | (66,383  | )                |         |   |               |         |  |                  | (66,383    | ) |                    |             | 6,478    |   |  |  | *      |   
|Dividends on mandatorily redeemable preferred stock                                     |  |                                      | (21,391  | )                |         |   |               |         |  |                  | (21,391    | ) |                    |             | (25,197  | ) |  |  | (15.1  | )%
|Other income, net                                                                       |  |                                      | 2,611    |                  |         |   |               |         |  |                  | 2,611      |   |                    |             | 2,230    |   |  |  | 17.1   | % 
|Minority interest in income of subsidiaries                                             |  |                                      | (6,823   | )                |         |   |               |         |  |                  | (6,823     | ) |                    |             | (3,514   | ) |  |  | 94.2   | % 
|Income tax benefit (expense)                                                            |  |                                      | 9,443    |                  |         |   | 2,047          |         |  |                  | 7,396      |   |                    |             | 13,139   |   |  |  | *      |   
|                                                                                        |  |                                      |          |                  |         |   |                |         |  |                  |            |   |                    |             |         
|(Loss) income from continuing operations                                                |  | $                                    | (96,717  | )                |         | $ | (3,824         | )       |  | $                | (92,893    | ) |                    | $           | (40,180  | ) |  |  | (131.2 | )%
|                                                                                        |  |                                      |          |                  |         |   |                |         |  |                  |            |   |                    |             |         






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

Subscribers




26



---



##### 









Operating Revenue




Service revenue.




Roaming revenue.


27



---



##### 







Equipment and other revenue.




Operating Expenses




Cost of service.


28



---



##### 







|                      |  |                                  |        |  |                                 |  |        |        |  |   |            |  |  |        |        |  |            |   |         |        |  |  |            |  |  |   |         |  |  |  |        | 
|--------------------- |  | -------------------------------- | ------ |  | ------------------------------- |  | ------ | ------ |  | - | ---------- |  |  | ------ | ------ |  | ---------- | - | ------- | ------ |  |  | ---------- |  |  | - | ------- |  |  |  | ------ | 
|                      |  | Three Months Ended September 30, |        |  | Nine Months Ended September 30, | 
|                      |  |                                  |        |  |                                 | 
|                      |  | 2005                             |        |  | 2004                            |  |        | 2005   |  |   | 2004       | 
|                      |  |                                  |        |  |                                 |  |        |        |  |   |            | 
|                      |  | Amount                           |        |  | Percentage                      |  |        | Amount |  |   | Percentage |  |  | Amount |        |  | Percentage |   |         | Amount |  |  | Percentage | 
|                      |  |                                  |        |  |                                 |  |        |        |  |   |            |  |  |        |        |  |            |   |         |        |  |  |            | 
|                      |  | ($ in thousands)                 |        |  | ($ in thousands)                | 
|Network costs         |  | $                                | 59,267 |  |                                 |  | 76.0%  |        |  | $ | 45,789     |  |  |        | 66.1%  |  |            | $ | 162,707 |        |  |  | 74.2%      |  |  | $ | 122,069 |  |  |  | 65.8%  | 
|Roaming costs         |  |                                  | 18,683 |  |                                 |  | 24.0%  |        |  |   | 23,510     |  |  |        | 33.9%  |  |            |   | 56,507  |        |  |  | 25.8%      |  |  |   | 63,388  |  |  |  | 34.2%  | 
|                      |  |                                  |        |  |                                 |  |        |        |  |   |            |  |  |        |        |  |            |   |         |        |  |  |            | 
|Total cost of service |  | $                                | 77,950 |  |                                 |  | 100.0% |        |  | $ | 69,299     |  |  |        | 100.0% |  |            | $ | 219,214 |        |  |  | 100.0%     |  |  | $ | 185,457 |  |  |  | 100.0% | 
|                      |  |                                  |        |  |                                 |  |        |        |  |   |            |  |  |        |        |  |            |   |         |        |  |  |            | 





Cost of equipment.




Marketing and selling costs.


29



---



##### 





General and administrative costs.




Depreciation and amortization.


Gain on disposition of operating assets.


Non-Operating Results


Interest expense.


Gain from extinguishment of debt.


(Loss) gain on redemption and repurchases of mandatorily
redeemable preferred stock.


30



---



##### 





Dividends on mandatorily redeemable preferred stock.


Other income, net.


Discontinued operations.


LIQUIDITY AND CAPITAL RESOURCES






Tower Sale and Lease-Back




31



---



##### 



Working Capital and Net Cash Flow










Capital Resources


Notes Payable






32



---



##### 





2012 Senior Floating Rate Notes




2025 Senior Convertible Debentures




Restrictive Covenants






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



33



---



##### 



Repurchases of Notes




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.                                      

Preferred Stock




34



---



##### 













Capital Expenditures and Commitments






35



---



##### 



Contractual Obligations














Forward-Looking Statements




36



---



##### 








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










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



37



---



##### 






PART II.     OTHER
INFORMATION







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














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








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



38



---



##### 








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








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








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



INDEX TO EXHIBITS


|        |      |             |  |                                                                                                                                                                                                                                                            |  |  |            | 
|------- | ---- | ----------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  | ---------- | 
|Exhibit |      |             |  | Method of                                                                                                                                                                                                                                                 
|Numbers |      | Description |  | Filing                                                                                                                                                                                                                                                    
|        |      |             |  |                                                                                                                                                                                                                                                           
|        | 4.1  |             |  | Floating Rate Notes Indenture dated as of
    September 13, 2005 by the Registrant and Bank of Oklahoma,
    National Association, as Trustee                                                                                                              |  |  | (3)[4.1]   | 
|        | 4.2  |             |  | Convertible Debentures Indenture dated as of September 13,
    2005 by the Registrant and The Bank of Oklahoma, National
    Association, as Trustee                                                                                                       |  |  | (3)[4.2]   | 
|        | 10.2 |             |  | Form of Support Agreement                                                                                                                                                                                                                                  |  |  | (1)[10.30] | 
|        | 10.3 | *           |  | InterCarrier Multi-standard Roaming Agreement by and among
    Cingular Wireless LLC and Dobson Cellular Systems, Inc. and
    American Cellular Corporation dated as of August 12, 2005                                                                   |  |  | (2)[10.1]  | 
|        | 10.4 | *           |  | Addendum to GSM Operating Agreement by and between New Cingular
    Wireless Services, Inc. (f/k/a AT&T Wireless Services,
    Inc.), Dobson Cellular Systems, Inc., an Oklahoma corporation
    and American Cellular Corporation, a Delaware corporation |  |  | (2)[10.2]  | 
|        | 10.5 |             |  | Floating Rate Notes Registration Rights Agreement dated as
    of September 13, 2005 by and between Dobson Communications
    Corporation, Lehman Brothers Inc., Morgan Stanley & Co.
    Incorporated and Bear, Stearns & Co. Inc.                        |  |  | (3)[10.1]  | 
|        | 10.6 |             |  | Convertible Debentures Registration Rights Agreement dated as of
    September 13, 2005 by and between Dobson Communications
    Corporation, Lehman Brothers Inc., Morgan Stanley & Co.
    Incorporated and Bear, Stearns & Co. Inc.                     |  |  | (3)[10.2]  | 
|        | 31.1 |             |  | Rule 13a-14(a) Certification by our principal executive
    officer                                                                                                                                                                                        |  |  | (4)        | 
|        | 31.2 |             |  | Rule 13a-14(a) Certification by our principal financial
    officer                                                                                                                                                                                        |  |  | (4)        | 
|        | 32.1 |             |  | Section 1350 Certification by our principal executive
    officer                                                                                                                                                                                          |  |  | (4)        | 
|        | 32.2 |             |  | Section 1350 Certification by our principal financial
    officer                                                                                                                                                                                          |  |  | (4)        | 






|    |                                                                                                                                                                                               
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|*   | Confidential treatment has been requested for portions of this
    document.                                                                                                                  
|   
|(1) | Filed as an exhibit to the Registrants Registration
    Statement on Form S-4 (File No. 333-126247) as the
    exhibit number indicated in brackets and incorporated by
    reference herein.
|   
|(2) | Filed as an exhibit to the Registrants Current Report on
    Form 8-K/ A on August 23, 2005 as the exhibit number
    indicated in brackets and incorporated by reference herein.            
|   
|(3) | Filed as an exhibit to the Registrants Current Report on
    Form 8-K on September 19, 2005 as the exhibit number
    indicated in brackets and incorporated by reference herein.            
|   
|(4) | Filed herewith.                                                                                                                                                                               

39



---



##### 



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                  

40



---



##### 



INDEX TO EXHIBITS


|        |      |             |  |                                                                                                                                                                                                                                                            |  |  |              | 
|------- | ---- | ----------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  | ------------ | 
|Exhibit |      |             |  | Method of                                                                                                                                                                                                                                                 
|Numbers |      | Description |  | Filing                                                                                                                                                                                                                                                    
|        |      |             |  |                                                                                                                                                                                                                                                           
|        | 4.1  |             |  | Floating Rate Notes Indenture dated as of
    September 13, 2005 by the Registrant and Bank of Oklahoma,
    National Association, as Trustee                                                                                                              |  |  | (3)[4.1]     | 
|        | 4.2  |             |  | Convertible Debentures Indenture dated as of September 13,
    2005 by the Registrant and The Bank of Oklahoma, National
    Association, as Trustee                                                                                                       |  |  | (3)[4.2]     | 
|        | 10.2 |             |  | Form of Support Agreement                                                                                                                                                                                                                                  |  |  | (1)  [10.30] | 
|        | 10.3 | *           |  | InterCarrier Multi-standard Roaming Agreement by and among
    Cingular Wireless LLC and Dobson Cellular Systems, Inc. and
    American Cellular Corporation dated as of August 12, 2005                                                                   |  |  | (2)[10.1]    | 
|        | 10.4 | *           |  | Addendum to GSM Operating Agreement by and between New Cingular
    Wireless Services, Inc. (f/k/a AT&T Wireless Services,
    Inc.), Dobson Cellular Systems, Inc., an Oklahoma corporation
    and American Cellular Corporation, a Delaware corporation |  |  | (2)[10.2]    | 
|        | 10.5 |             |  | Floating Rate Notes Registration Rights Agreement dated as
    of September 13, 2005 by and between Dobson Communications
    Corporation, Lehman Brothers Inc., Morgan Stanley & Co.
    Incorporated and Bear, Stearns & Co. Inc.                        |  |  | (3)[10.1]    | 
|        | 10.6 |             |  | Convertible Debentures Registration Rights Agreement dated as of
    September 13, 2005 by and between Dobson Communications
    Corporation, Lehman Brothers Inc., Morgan Stanley & Co.
    Incorporated and Bear, Stearns & Co. Inc.                     |  |  | (3)[10.2]    | 
|        | 31.1 |             |  | Rule 13a-14(a) Certification by our principal executive
    officer                                                                                                                                                                                        |  |  | (4)          | 
|        | 31.2 |             |  | Rule 13a-14(a) Certification by our principal financial
    officer                                                                                                                                                                                        |  |  | (4)          | 
|        | 32.1 |             |  | Section 1350 Certification by our principal executive
    officer                                                                                                                                                                                          |  |  | (4)          | 
|        | 32.2 |             |  | Section 1350 Certification by our principal financial
    officer                                                                                                                                                                                          |  |  | (4)          | 






|    |                                                                                                                                                                                               
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|*   | Confidential treatment has been requested for portions of this
    document.                                                                                                                  
|   
|(1) | Filed as an exhibit to the Registrants Registration
    Statement on Form S-4 (File No. 333-126247) as the
    exhibit number indicated in brackets and incorporated by
    reference herein.
|   
|(2) | Filed as an exhibit to the Registrants Current Report on
    Form 8-K/ A on August 23, 2005 as the exhibit number
    indicated in brackets and incorporated by reference herein.            
|   
|(3) | Filed as an exhibit to the Registrants Current Report on
    Form 8-K on September 19, 2005 as the exhibit number
    indicated in brackets and incorporated by reference herein.            
|   
|(4) | Filed herewith.