##### Table of Contents









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 10-Q


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












---










DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


INDEX TO FORM 10-Q


|                                                                |  |                                                                                                            |  |      |    | 
|--------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------- |  | ---- | -- | 
|Item                                                            |  |                                                                                                            |  |     
|Number                                                          |  |                                                                                                            |  | Page |   
|                                                                |  |                                                                                                            |  |      |   
|PART I. FINANCIAL
    INFORMATION                              
|1                                                               |  | Condensed Consolidated Financial Statements
    (Unaudited):                                               |  |      |    | 
|                                                                |  | Condensed Consolidated Balance Sheets as of
    March 31, 2005 and December 31, 2004                       |  |      | 2  | 
|                                                                |  | Condensed Consolidated Statements of
    Operations for the Three Months Ended March 31, 2005 and
    2004 |  |      | 3  | 
|                                                                |  | Condensed Consolidated Statement of
    Stockholders Equity for the Three Months Ended
    March 31, 2005 |  |      | 4  | 
|                                                                |  | Condensed Consolidated Statements of Cash
    Flows for the Three Months Ended March 31, 2005 and 2004     |  |      | 5  | 
|                                                                |  | Notes to Condensed Consolidated Financial
    Statements                                                   |  |      | 6  | 
|2                                                               |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations                  |  |      | 20 | 
|3                                                               |  | Quantitative and Qualitative Disclosure
    about Market Risk                                              |  |      | 30 | 
|4                                                               |  | Controls and Procedures                                                                                    |  |      | 30 | 
|                                                               
|PART II. OTHER
    INFORMATION                                 
|1                                                               |  | Legal Proceedings                                                                                          |  |      | 31 | 
|2                                                               |  | Unregistered Sales of Equity Securities and
    Use of Proceeds                                            |  |      | 31 | 
|3                                                               |  | Defaults Upon Senior Securities                                                                            |  |      | 31 | 
|4                                                               |  | Submission of Matters to a Vote of Security
    Holders                                                    |  |      | 31 | 
|5                                                               |  | Other Information                                                                                          |  |      | 32 | 
|6                                                               |  | Exhibits                                                                                                   |  |      | 32 | 
|Equity Interest Purchase Agreement                             
|Equity Interest Purchase Agreement                             
|Rule 13a-14(a) Certification by our Principal Executive Officer
|Rule 13a-14(a) Certification by our Principal Financial Officer
|Section 1350 Certification by our Principal Executive Officer  
|Section 1350 Certification by our Principal Financial Officer  



1



---



##### Table of Contents






PART I. FINANCIAL INFORMATION







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

DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES





CONDENSED CONSOLIDATED BALANCE SHEETS


|                                                                                                                                              |                                                                                                                                                              |                            |                                            |         |                   |               |                |         |               |               | 
|--------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------- | ------------------------------------------ | ------- | ----------------- | ------------- | -------------- | ------- | ------------- | ------------- | 
|                                                                                                                                              |                                                                                                                                                              | March 31, 2005             |                                            |         | December 31, 2004 |              
|                                                                                                                                              |                                                                                                                                                              |                            |                                            |         |                   |              
|                                                                                                                                              |                                                                                                                                                              | (Unaudited)                |                                            |         |                  
|ASSETS                                                                                                                                       
|CURRENT ASSETS:                                                                                                                               |                                                                                                                                                              |                            |                                            |         |                   |               |                |        
|Cash and cash equivalents                                                                                                                     |                                                                                                                                                              | $                          | 190,237,529                                |         |                   | $             | 139,884,107    |        
|Marketable securities                                                                                                                         |                                                                                                                                                              |                            |                                           |         |                   |               | 39,000,000     |        
|Accounts receivable                                                                                                                           |                                                                                                                                                              |                            | 92,371,171                                 |         |                   |               | 99,941,071     |        
|Inventory                                                                                                                                     |                                                                                                                                                              |                            | 13,996,667                                 |         |                   |               | 15,610,745     |        
|Prepaid expenses                                                                                                                              |                                                                                                                                                              |                            | 13,369,973                                 |         |                   |               | 8,509,486      |        
|Deferred tax assets                                                                                                                           |                                                                                                                                                              |                            | 8,759,000                                  |         |                   |               | 9,202,000      |        
|                                                                                                                                              |                                                                                                                                                              |                            |                                            |         |                   |              
|                                                                                                                                              |                                                                                                                                                              | Total current assets       |                                            |         | 318,734,340       |               |                |         | 312,147,409   |              
|                                                                                                                                              |                                                                                                                                                              |                            |                                            |         |                   |              
|PROPERTY, PLANT AND EQUIPMENT, net (Note 6)                                                                                                   |                                                                                                                                                              |                            | 522,360,269                                |         |                   |               | 533,744,179    |        
|                                                                                                                                              |                                                                                                                                                              |                            |                                            |         |                   |              
|OTHER ASSETS:                                                                                                                                 |                                                                                                                                                              |                            |                                            |         |                   |               |                |        
|Restricted assets                                                                                                                             |                                                                                                                                                              |                            | 10,426,890                                 |         |                   |               | 10,349,626     |        
|Wireless license acquisition costs                                                                                                            |                                                                                                                                                              |                            | 1,786,610,363                              |         |                   |               | 1,786,610,363  |        
|Goodwill                                                                                                                                      |                                                                                                                                                              |                            | 618,647,824                                |         |                   |               | 620,031,217    |        
|Deferred financing costs, net                                                                                                                 |                                                                                                                                                              |                            | 41,837,784                                 |         |                   |               | 43,025,883     |        
|Customer list, net                                                                                                                            |                                                                                                                                                              |                            | 81,230,999                                 |         |                   |               | 87,693,583     |        
|Other non-current assets                                                                                                                      |                                                                                                                                                              |                            | 4,178,282                                  |         |                   |               | 4,149,608      |        
|                                                                                                                                              |                                                                                                                                                              |                            |                                            |         |                   |              
|                                                                                                                                              |                                                                                                                                                              | Total other assets         |                                            |         | 2,542,932,142     |               |                |         | 2,551,860,280 |              
|                                                                                                                                              |                                                                                                                                                              |                            |                                            |         |                   |              
|                                                                                                                                              |                                                                                                                                                              |                            | Total assets                               |         | $                 | 3,384,026,751 |                |         | $             | 3,397,751,868 | 
|                                                                                                                                              |                                                                                                                                                              |                            |                                            |         |                   |              
|LIABILITIES AND STOCKHOLDERS EQUITY                                                                                                         
|CURRENT LIABILITIES:                                                                                                                          |                                                                                                                                                              |                            |                                            |         |                   |               |                |        
|Accounts payable                                                                                                                              |                                                                                                                                                              | $                          | 98,671,753                                 |         |                   | $             | 80,085,348     |        
|Accrued expenses                                                                                                                              |                                                                                                                                                              |                            | 29,294,248                                 |         |                   |               | 31,438,255     |        
|Accrued interest payable                                                                                                                      |                                                                                                                                                              |                            | 67,799,188                                 |         |                   |               | 74,471,790     |        
|Deferred revenue and customer deposits                                                                                                        |                                                                                                                                                              |                            | 29,531,694                                 |         |                   |               | 28,881,603     |        
|Accrued dividends payable                                                                                                                     |                                                                                                                                                              |                            | 29,232,631                                 |         |                   |               | 19,404,780     |        
|Current portion of obligations under capital leases                                                                                           |                                                                                                                                                              |                            | 127,129                                    |         |                   |               | 305,449        |        
|                                                                                                                                              |                                                                                                                                                              |                            |                                            |         |                   |              
|                                                                                                                                              |                                                                                                                                                              | Total current liabilities  |                                            |         | 254,656,643       |               |                |         | 234,587,225   |              
|                                                                                                                                              |                                                                                                                                                              |                            |                                            |         |                   |              
|OTHER LIABILITIES:                                                                                                                            |                                                                                                                                                              |                            |                                            |         |                   |               |                |        
|Notes payable and credit facility (Note 7)                                                                                                    |                                                                                                                                                              |                            | 2,456,452,696                              |         |                   |               | 2,456,137,897  |        
|Deferred tax liabilities                                                                                                                      |                                                                                                                                                              |                            | 273,541,241                                |         |                   |               | 283,744,665    |        
|Mandatorily redeemable preferred stock, net (Note 8)                                                                                          |                                                                                                                                                              |                            | 237,063,165                                |         |                   |               | 236,094,326    |        
|Minority interest                                                                                                                             |                                                                                                                                                              |                            | 5,907,356                                  |         |                   |               | 5,422,043      |        
|Other non-current liabilities                                                                                                                 |                                                                                                                                                              |                            | 4,161,627                                  |         |                   |               | 4,161,627      |        
|COMMITMENTS (Note 10)                                                                                                                         |                                                                                                                                                              |                            |                                            |         |                   |               |                |        
|SERIES F CONVERTIBLE PREFERRED STOCK (Note 8)                                                                                                 |                                                                                                                                                              |                            | 122,535,599                                |         |                   |               | 122,535,599    |        
|STOCKHOLDERS EQUITY:                                                                                                                         |                                                                                                                                                              |                            |                                            |         |                   |               |                |        
|                                                                                                                                              | Class A common stock, $.001 par value,
    175,000,000 shares authorized and 120,081,762 shares
    issued at March 31, 2005 and December 31, 2004           |                            |                                            | 120,082 |                   |               |                | 120,082 |              
|                                                                                                                                              | Convertible Class B common stock, $.001 par value,
    70,000,000 shares authorized and 19,418,021 shares
    issued at March 31, 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
    March 31, 2005 and December 31, 2004            |                            |                                            |        |                   |               |                |        |              
|                                                                                                                                              | Convertible Class D common stock, $.001 par value,
    33,000 shares authorized and zero shares issued at
    March 31, 2005 and December 31, 2004           |                            |                                            |        |                   |               |                |        |              
|Paid-in capital                                                                                                                               |                                                                                                                                                              |                            | 1,206,362,528                              |         |                   |               | 1,206,362,528  |        
|Accumulated deficit                                                                                                                           |                                                                                                                                                              |                            | (1,143,480,366                             | )       |                   |               | (1,118,001,904 | )      
|Less Class A common shares held in treasury, at cost, of
    5,602,599 shares at March 31, 2005 and
    5,622,599 shares at December 31, 2004 |                                                                                                                                                              |                            | (33,313,238                                | )       |                   |               | (33,431,638    | )      
|                                                                                                                                              |                                                                                                                                                              |                            |                                            |         |                   |              
|                                                                                                                                              |                                                                                                                                                              | Total stockholders equity |                                            |         | 29,708,424        |               |                |         | 55,068,486    |              
|                                                                                                                                              |                                                                                                                                                              |                            |                                            |         |                   |              
|                                                                                                                                              |                                                                                                                                                              |                            | Total liabilities and stockholders equity |         | $                 | 3,384,026,751 |                |         | $             | 3,397,751,868 | 
|                                                                                                                                              |                                                                                                                                                              |                            |                                            |         |                   |              



2



---



##### Table of Contents



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES





CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


|                                                                                  |                                                                                               |                          |             |             |                |   |             |             |             | 
|--------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------- | ------------------------ | ----------- | ----------- | -------------- | - | ----------- | ----------- | ----------- | 
|                                                                                  |                                                                                               | Three Months             |             |             | Three Months   |  
|                                                                                  |                                                                                               | Ended                    |             |             | Ended          |  
|                                                                                  |                                                                                               | March 31, 2005           |             |             | March 31, 2004 |  
|                                                                                  |                                                                                               |                          |             |             |                |  
|                                                                                  |                                                                                               | (Unaudited)              |            
|OPERATING REVENUE:                                                                |                                                                                               |                          |             |             |                |   |             |            
|                                                                                  | Service revenue                                                                               |                          | $           | 206,081,986 |                |   | $           | 181,699,363 |            
|                                                                                  | Roaming revenue                                                                               |                          |             | 53,430,702  |                |   |             | 42,075,341  |            
|                                                                                  | Equipment and other revenue                                                                   |                          |             | 12,245,795  |                |   |             | 10,016,615  |            
|                                                                                  |                                                                                               |                          |             |             |                |  
|                                                                                  |                                                                                               | Total operating revenue  |             |             | 271,758,483    |   |             |             | 233,791,319 | 
|                                                                                  |                                                                                               |                          |             |             |                |  
|OPERATING EXPENSES:                                                               |                                                                                               |                          |             |             |                |   |             |            
|                                                                                  | Cost of service (exclusive of depreciation and amortization
    items shown separately below) |                          |             | 72,298,971  |                |   |             | 54,185,765  |            
|                                                                                  | Cost of equipment                                                                             |                          |             | 30,365,742  |                |   |             | 23,534,577  |            
|                                                                                  | Marketing and selling                                                                         |                          |             | 34,093,918  |                |   |             | 29,161,801  |            
|                                                                                  | General and administrative                                                                    |                          |             | 44,811,476  |                |   |             | 43,776,071  |            
|                                                                                  | Depreciation and amortization                                                                 |                          |             | 51,570,480  |                |   |             | 45,447,896  |            
|                                                                                  |                                                                                               |                          |             |             |                |  
|                                                                                  |                                                                                               | Total operating expenses |             |             | 233,140,587    |   |             |             | 196,106,110 | 
|                                                                                  |                                                                                               |                          |             |             |                |  
|OPERATING INCOME                                                                  |                                                                                               |                          | 38,617,896  |             |                |   | 37,685,209  |            
|                                                                                  |                                                                                               |                          |             |             |                |  
|OTHER (EXPENSE) INCOME:                                                           |                                                                                               |                          |             |             |                |   |             |            
|                                                                                  | Interest expense                                                                              |                          |             | (60,741,939 | )              |   |             | (54,238,035 | )          
|                                                                                  | Gain from extinguishment of debt (Note 7)                                                     |                          |             |            |                |   |             | 5,738,861   |            
|                                                                                  | Dividends on mandatorily redeemable preferred stock (Note 8)                                  |                          |             | (7,931,067  | )              |   |             | (8,618,010  | )          
|                                                                                  | Other (expense) income, net                                                                   |                          |             | (765,996    | )              |   |             | 1,277,425   |            
|                                                                                  |                                                                                               |                          |             |             |                |  
|LOSS BEFORE MINORITY INTERESTS IN INCOME OF SUBSIDIARIES AND
    INCOME TAXES     |                                                                                               |                          | (30,821,106 | )           |                |   | (18,154,550 | )          
|MINORITY INTERESTS IN INCOME OF SUBSIDIARIES                                      |                                                                                               |                          | (1,829,998  | )           |                |   | (944,007    | )          
|                                                                                  |                                                                                               |                          |             |             |                |  
|LOSS BEFORE INCOME TAXES                                                          |                                                                                               |                          | (32,651,104 | )           |                |   | (19,098,557 | )          
|                                                                                  | Income tax benefit                                                                            |                          |             | 9,393,615   |                |   |             | 3,973,814   |            
|                                                                                  |                                                                                               |                          |             |             |                |  
|LOSS FROM CONTINUING OPERATIONS                                                   |                                                                                               |                          | (23,257,489 | )           |                |   | (15,124,743 | )          
|DISCONTINUED OPERATIONS: (Note 4)                                                 |                                                                                               |                          |             |             |                |   |             |            
|                                                                                  | Income from discontinued operations, net of income tax expense
    of $271,327                |                          |             |            |                |   |             | 442,692     |            
|                                                                                  |                                                                                               |                          |             |             |                |  
|NET LOSS                                                                          |                                                                                               |                          | (23,257,489 | )           |                |   | (14,682,051 | )          
|                                                                                  | Dividends on preferred stock                                                                  |                          |             | (2,144,373  | )              |   |             | (1,858,457  | )          
|                                                                                  |                                                                                               |                          |             |             |                |  
|NET LOSS APPLICABLE TO COMMON STOCKHOLDERS                                        |                                                                                               | $                        | (25,401,862 | )           |                | $ | (16,540,508 | )          
|                                                                                  |                                                                                               |                          |             |             |                |  
|BASIC AND DILUTED NET LOSS APPLICABLE TO COMMON STOCKHOLDERS PER
    COMMON SHARE |                                                                                               | $                        | (0.19       | )           |                | $ | (0.12       | )          
|                                                                                  |                                                                                               |                          |             |             |                |  
|BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING                      |                                                                                               |                          | 133,884,962 |             |                |   | 133,727,123 |            
|                                                                                  |                                                                                               |                          |             |             |                |  



3



---



##### Table of Contents



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES





CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS
EQUITY


For the Three Months Ended March 31, 2005


|                           |  |                      |             |  |              |   |         |        |  |             |            |  |           |                 |        |               |         |   |               |      |  |   |                |   |  |   |             |   |  |   |             |  
|-------------------------- |  | -------------------- | ----------- |  | ------------ | - | ------- | ------ |  | ----------- | ---------- |  | --------- | --------------- | ------ | ------------- | ------- | - | ------------- | ---- |  | - | -------------- | - |  | - | ----------- | - |  | - | ----------- | -
|                           |  | Stockholders Equity |            
|                           |  |                      |            
|                           |  | Class A              |             |  | Class B      |   |         |       
|                           |  | Common Stock         |             |  | Common Stock |   |         |        |  | Treasury    |            |  | Total     |                
|                           |  |                      |             |  |              |   |         |        |  | Accumulated |            |  | Stock, at |                 |        | Stockholders |        
|                           |  | Shares               |             |  | Amount       |   |         | Shares |  |             | Amount     |  |           | Paid-in Capital |        |               | Deficit |   |               | 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                   |  |                      |            |  |              |   |        |        |  |             |           |  |           |                 |       |               |         |   |              |      |  |   | (23,257,489    | ) |  |   |            |   |  |   | (23,257,489 | )
|Preferred stock dividends  |  |                      |            |  |              |   |        |        |  |             |           |  |           |                 |       |               |         |   |              |      |  |   | (2,144,373     | ) |  |   |            |   |  |   | (2,144,373  | )
|Issuance of treasury stock |  |                      |            |  |              |   |        |        |  |             |           |  |           |                 |       |               |         |   |              |      |  |   | (76,600        | ) |  |   | 118,400     |   |  |   | 41,800      |  
|                           |  |                      |             |  |              |   |         |        |  |             |            |  |           |                 |        |               |         |   |               |      |  |   |                |  
|March 31, 2005             |  |                      | 120,081,762 |  |              | $ | 120,082 |        |  |             | 19,418,021 |  |           | $               | 19,418 |               |         | $ | 1,206,362,528 |      |  | $ | (1,143,480,366 | ) |  | $ | (33,313,238 | ) |  | $ | 29,708,424  |  
|                           |  |                      |             |  |              |   |         |        |  |             |            |  |           |                 |        |               |         |   |               |      |  |   |                |  



4



---



##### Table of Contents



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES





CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                                                                                 |                                                                                |                                           |             |             |            |   |             |             |             |  
|---------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------ | ----------------------------------------- | ----------- | ----------- | ---------- | - | ----------- | ----------- | ----------- | -
|                                                                                                                 |                                                                                | Three Months Ended March 31,              |            
|                                                                                                                 |                                                                                |                                           |            
|                                                                                                                 |                                                                                | 2005                                      |             |             | 2004       |  
|                                                                                                                 |                                                                                |                                           |             |             |            |  
|                                                                                                                 |                                                                                | (Unaudited)                               |            
|CASH FLOWS FROM OPERATING ACTIVITIES:                                                                            |                                                                                |                                           |             |             |            |   |             |            
|Loss from continuing operations                                                                                  |                                                                                | $                                         | (23,257,489 | )           |            | $ | (15,124,743 | )          
|Adjustments to reconcile loss to net cash provided by operating
    activities, net of effects of acquisitions  |                                                                                |                                           |             |             |            |   |             |            
|                                                                                                                 | Depreciation and amortization                                                  |                                           |             | 51,570,480  |            |   |             | 45,447,896  |            
|                                                                                                                 | Amortization of bond premium and deferred financing costs                      |                                           |             | 1,815,601   |            |   |             | 1,997,148   |            
|                                                                                                                 | Deferred income taxes                                                          |                                           |             | (9,760,424  | )          |   |             | (4,101,266  | )          
|                                                                                                                 | Non-cash mandatorily redeemable preferred stock dividends                      |                                           |             | 7,931,067   |            |   |             | 197,245     |            
|                                                                                                                 | Other operating activities                                                     |                                           |             | 1,864,302   |            |   |             | 1,409,205   |            
|Changes in current assets and liabilities                                                                       |                                                                                |                                           |             |             |            |   |             |            
|                                                                                                                 | Accounts receivable                                                            |                                           |             | 7,569,900   |            |   |             | 18,271,148  |            
|                                                                                                                 | Inventory                                                                      |                                           |             | 1,614,078   |            |   |             | (301,325    | )          
|                                                                                                                 | Prepaid expenses and other                                                     |                                           |             | (4,937,751  | )          |   |             | (1,832,833  | )          
|                                                                                                                 | Accounts payable                                                               |                                           |             | 18,586,405  |            |   |             | (20,763,619 | )          
|                                                                                                                 | Accrued expenses                                                               |                                           |             | (8,816,609  | )          |   |             | (19,338,565 | )          
|                                                                                                                 | Deferred revenue and customer deposits                                         |                                           |             | 650,091     |            |   |             | 159,373     |            
|                                                                                                                 |                                                                                |                                           |             |             |            |  
|                                                                                                                 |                                                                                | Net cash provided by operating activities |             |             | 44,829,651 |   |             |             | 6,019,664   |  
|                                                                                                                 |                                                                                |                                           |             |             |            |  
|CASH FLOWS FROM INVESTING ACTIVITIES:                                                                            |                                                                                |                                           |             |             |            |   |             |            
|                                                                                                                 | Capital expenditures                                                           |                                           |             | (32,558,089 | )          |   |             | (40,604,018 | )          
|                                                                                                                 | 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  |            |   |             | 45,000,000  |            
|                                                                                                                 | Other investing activities                                                     |                                           |             | (23,802     | )          |   |             | (1,050,773  | )          
|                                                                                                                 |                                                                                |                                           |             |             |            |  
|                                                                                                                 |                                                                                | Net cash provided by investing activities |             |             | 6,418,109  |   |             |             | 11,677,949  |  
|                                                                                                                 |                                                                                |                                           |             |             |            |  
|CASH FLOWS FROM FINANCING ACTIVITIES:                                                                            |                                                                                |                                           |             |             |            |   |             |            
|                                                                                                                 | Repayments and purchases of long-term debt                                     |                                           |             |            |            |   |             | (62,120,000 | )          
|                                                                                                                 | Distributions to minority interest holders                                     |                                           |             | (1,344,685  | )          |   |             | (1,629,400  | )          
|                                                                                                                 | Other financing activities                                                     |                                           |             | 450,347     |            |   |             | (211,170    | )          
|                                                                                                                 |                                                                                |                                           |             |             |            |  
|                                                                                                                 |                                                                                | Net cash used in financing activities     |             |             | (894,338   | ) |             |             | (63,960,570 | )
|                                                                                                                 |                                                                                |                                           |             |             |            |  
|NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                                             |                                                                                |                                           | 50,353,422  |             |            |   | (46,262,957 | )          
|CASH AND CASH EQUIVALENTS, beginning of period                                                                   |                                                                                |                                           | 139,884,107 |             |            |   | 151,539,339 |            
|                                                                                                                 |                                                                                |                                           |             |             |            |  
|CASH AND CASH EQUIVALENTS, end of period                                                                         |                                                                                | $                                         | 190,237,529 |             |            | $ | 105,276,382 |            
|                                                                                                                 |                                                                                |                                           |             |             |            |  
|SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:                                                               |                                                                                |                                           |             |             |            |   |             |            
|Cash paid for                                                                                                   |                                                                                |                                           |             |             |            |   |             |            
|                                                                                                                 | Interest                                                                       |                                           | $           | 65,439,283  |            |   | $           | 67,130,788  |            
|                                                                                                                 | Income taxes                                                                   |                                           | $           | 19,050      |            |   | $           | 1,526,514   |            
|SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING
    ACTIVITIES:                                     |                                                                                |                                           |             |             |            |   |             |            
|                                                                                                                 | 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



---



##### Table of Contents



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES





NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Unaudited)








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







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









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



6



---



##### Table of Contents



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                   |                                                |                         |   |         |      |  |   |         |  
|---------------------------------------------------------------------------------- | ---------------------------------------------- | ----------------------- | - | ------- | ---- |  | - | ------- | -
|                                                                                   |                                                | Three Months Ended      |  
|                                                                                   |                                                | March 31,               |  
|                                                                                   |                                                |                         |  
|                                                                                   |                                                | 2005                    |   |         | 2004 | 
|                                                                                   |                                                |                         |   |         |      | 
|                                                                                   |                                                | ($ in thousands, except |  
|                                                                                   |                                                | for per share amounts)  |  
|Net loss applicable to common stockholders:                                        |                                                |                         |   |         |      |  |   |        
|                                                                                   | As reported                                    |                         | $ | (25,402 | )    |  | $ | (16,541 | )
|                                                                                   | Pro forma stock-based compensation, net of tax |                         |   | (1,060  | )    |  |   | (3,756  | )
|                                                                                   |                                                |                         |   |         |      | 
|                                                                                   | Pro forma                                      |                         | $ | (26,462 | )    |  | $ | (20,297 | )
|                                                                                   |                                                |                         |   |         |      | 
|Basic and diluted net loss applicable to common stockholders per
    common share: |                                                |                         |   |         |      |  |   |        
|                                                                                   | As reported                                    |                         | $ | (0.19   | )    |  | $ | (0.12   | )
|                                                                                   | Pro forma                                      |                         | $ | (0.20   | )    |  | $ | (0.15   | )



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





|                                    |  |                  |       |  
|----------------------------------- |  | ---------------- | ----- | -
|                                    |  | Three Months     |      
|                                    |  | Ended            |      
|                                    |  | March 31, 2004   |      
|                                    |  |                  |      
|                                    |  | ($ in thousands) |      
|Operating revenue                   |  | $                | 3,556 |  
|Income before income taxes          |  |                  | 714   |  
|Income tax expense                  |  |                  | (271  | )
|Income from discontinued operations |  |                  | 443   |  



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







7



---



##### Table of Contents



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








6.                Property,
Plant and Equipment




|                                    |  |                  |           |   |              |   |          |  
|----------------------------------- |  | ---------------- | --------- | - | ------------ | - | -------- | -
|                                    |  | March 31,        |           |   | December 31, |  
|                                    |  | 2005             |           |   | 2004         |  
|                                    |  |                  |           |   |              |  
|                                    |  | ($ in thousands) |          
|Gross property, plant and equipment |  | $                | 1,018,599 |   |              | $ | 985,005  |  
|Accumulated depreciation            |  |                  | (496,239  | ) |              |   | (451,261 | )
|                                    |  |                  |           |   |              |  
|Property, plant and equipment, net  |  | $                | 522,360   |   |              | $ | 533,744  |  
|                                    |  |                  |           |   |              |  



|   |                                  
|-- | ---------------------------------
|7. | Notes Payable and Credit Facility



|                                                          |                                         |                  |         |           |              |   |         |           | 
|--------------------------------------------------------- | --------------------------------------- | ---------------- | ------- | --------- | ------------ | - | ------- | --------- | 
|                                                          |                                         | March 31,        |         |           | December 31, |  
|                                                          |                                         | 2005             |         |           | 2004         |  
|                                                          |                                         |                  |         |           |              |  
|                                                          |                                         | ($ in thousands) |        
|8.875% DCC senior notes                                   |                                         | $                | 419,681 |           |              | $ | 419,681 |          
|10.875% DCC senior notes, net of discount of $1.3 million |                                         |                  | 297,743 |           |              |   | 297,683 |          
|8.375% Dobson Cellular senior notes                       |                                         |                  | 250,000 |           |              |   | 250,000 |          
|Dobson Cellular floating rate senior notes                |                                         |                  | 250,000 |           |              |   | 250,000 |          
|9.875% Dobson Cellular senior notes                       |                                         |                  | 325,000 |           |              |   | 325,000 |          
|10% American Cellular senior notes                        |                                         |                  | 900,000 |           |              |   | 900,000 |          
|Other notes payable, net                                  |                                         |                  | 14,029  |           |              |   | 13,774  |          
|                                                          |                                         |                  |         |           |              |  
|                                                          | Total notes payable and credit facility |                  | $       | 2,456,453 |              |   | $       | 2,456,138 | 
|                                                          |                                         |                  |         |           |              |  

8



---



##### Table of Contents



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






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





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





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







9



---



##### Table of Contents



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










| |   |                                                                                 
| | - | --------------------------------------------------------------------------------
| |  | 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.                                      



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



|                    |  |            |           |           |                |  |           |                |  |  |           |  |  |           |             |            |           |                   |         |             |  |               |  |           
|------------------- |  | ---------- | --------- | --------- | -------------- |  | --------- | -------------- |  |  | --------- |  |  | --------- | ----------- | ---------- | --------- | ----------------- | ------- | ----------- |  | ------------- |  | ----------
|                    |  |            |           | Number of |                |  | Number of |                |  |  |           |  |  |           |             |            |           | Other            
|                    |  |            |           | Shares    |                |  | Shares    |                |  |  |           |  |  |           |             |            |           | Features,        
|                    |  | Number of  |           |           | Outstanding at |  |           | Outstanding at |  |  |           |  |  |           | Liquidation |            | Mandatory |                   | Rights,
|                    |  | Shares     |           |           | March 31,      |  |           | December 31,   |  |  | Par Value |  |  |           |             | Preference |           | Redemption        |         | Preferences
|Class               |  | Authorized |           |           | 2005           |  |           | 2004           |  |  | Per Share |  |  | Dividends |             | Per Share  |           | Date              |         | and Powers 
|                    |  |            |           |           |                |  |           |                |  |  |           |  |  |           |             |            |           |                   |         |            
|Senior Exchangeable |  |            | 46,181    |           |                |  | 46,181    |                |  |  | 46,181    |  |  | $         | 1.00        |            |           | 12.25% Cumulative |         | $1,000      |  | Jan. 15, 2008 |  | Non-voting
|Senior Exchangeable |  |            | 394,297   |           |                |  | 192,898   |                |  |  | 192,898   |  |  | $         | 1.00        |            |           | 13% Cumulative    |         | $1,000      |  | May 1, 2009   |  | Non-voting
|Class E             |  |            | 40,000    |           |                |  |          |                |  |  |          |  |  | $         | 1.00        |            |           | 15% Cumulative    |         | $1,131.92   |  | Dec. 23, 2010 |  | Non-voting
|Series F            |  |            | 1,900,000 |           |                |  | 686,201   |                |  |  | 686,201   |  |  | $         | 1.00        |            |           | 6% Cumulative     |         | $178.571    |  | Aug. 18, 2016 |  | Non-voting
|Other               |  |            | 3,619,522 |           |                |  |          |                |  |  |          |  |  | $         | 1.00        |            |           |                  |         |            |  |              |  |          
|                    |  |            |           |           |                |  |           |                |  |  |           |  |  |           |             |            |           |                   |         |            
|                    |  |            | 6,000,000 |           |                |  | 925,280   |                |  |  | 925,280   |  |  |           |             |            |           |                   |         |             |  |               |  |           
|                    |  |            |           |           |                |  |           |                |  |  |           |  |  |           |             |            |           |                   |         |            



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





10



---



##### Table of Contents



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










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



11



---



##### Table of Contents



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                                          |                                                                                    |                                 |         |             |       |   |         |             |       |  
|----------------------------------------- | ---------------------------------------------------------------------------------- | ------------------------------- | ------- | ----------- | ----- | - | ------- | ----------- | ----- | -
|                                          |                                                                                    | Three Months Ended March 31,    |        
|                                          |                                                                                    |                                 |        
|                                          |                                                                                    | 2005                            |         |             | 2004  |  
|                                          |                                                                                    |                                 |         |             |       |  
|                                          |                                                                                    | ($ in thousands, except         |        
|                                          |                                                                                    | per share data)                 |        
|Net loss applicable to common stockholder |                                                                                    | $                               | (25,402 | )           |       | $ | (16,541 | )          
|                                          | Basic and diluted net loss applicable to common stockholders per
    common share: |                                 |         |             |       |   |         |             |      
|                                          |                                                                                    | Continuing operations:          |         |             |       |   |         |             |       |  
|                                          |                                                                                    | Loss from continuing operations |         | $           | (0.17 | ) |         | $           | (0.11 | )
|                                          |                                                                                    | Dividends on preferred stock    |         |             | (0.02 | ) |         |             | (0.01 | )
|                                          |                                                                                    |                                 |         |             |       |  
|                                          | Basic and diluted net loss applicable to common stockholders per
    common share  |                                 | $       | (0.19       | )     |   | $       | (0.12       | )    
|                                          |                                                                                    |                                 |         |             |       |  
|                                          | Basic and diluted weighted average common shares outstanding                       |                                 |         | 133,884,962 |       |   |         | 133,727,123 |      
|                                          |                                                                                    |                                 |         |             |       |  



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



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





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



12



---



##### Table of Contents



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










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









13



---



##### Table of Contents



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






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



CONDENSED CONSOLIDATING BALANCE SHEET


As of March 31, 2005


|                                               |                                                     |                                      |                                                      |           |           |           |         |               |           |           |        |        |        |              |         |           |              |           |   |            |            |            |         |           |           |           | 
|---------------------------------------------- | --------------------------------------------------- | ------------------------------------ | ---------------------------------------------------- | --------- | --------- | --------- | ------- | ------------- | --------- | --------- | ------ | ------ | ------ | ------------ | ------- | --------- | ------------ | --------- | - | ---------- | ---------- | ---------- | ------- | --------- | --------- | --------- | 
|                                               |                                                     | Dobson                               |                                                      |           | American  |           |         | Non-Guarantor |           |           |        |        |        |              |        
|                                               |                                                     | Cellular                             |                                                      |           | Cellular  |           |         | Subsidiaries  |           |           | Parent |        |        | Eliminations |         |           | Consolidated |          
|                                               |                                                     |                                      |                                                      |           |           |           |         |               |           |           |        |        |        |              |         |           |              |          
|                                               |                                                     | ($ in thousands)                     |                                                     
|                                               |                                                     | (Unaudited)                          |                                                     
|ASSETS                                        
|CURRENT ASSETS:                                |                                                     |                                      |                                                      |           |           |           |         |               |           |           |        |        |        |              |         |           |              |           |   |            |            |            |         |          
|                                               | Cash and cash equivalents                           |                                      | $                                                    | 80,067    |           |           | $       | 34,944        |           |           | $      | 72,553 |        |              | $       | 2,674     |              |           | $ |           |            |            | $       | 190,238   |          
|                                               | Accounts receivable                                 |                                      |                                                      | 56,109    |           |           |         | 36,262        |           |           |        |       |        |              |         |          |              |           |   |           |            |            |         | 92,371    |          
|                                               | Inventory                                           |                                      |                                                      | 10,512    |           |           |         | 3,485         |           |           |        |       |        |              |         |          |              |           |   |           |            |            |         | 13,997    |          
|                                               | Prepaid expenses and other                          |                                      |                                                      | 14,769    |           |           |         | 7,355         |           |           |        | 5      |        |              |         |          |              |           |   |           |            |            |         | 22,129    |          
|                                               |                                                     |                                      |                                                      |           |           |           |         |               |           |           |        |        |        |              |         |           |              |          
|                                               |                                                     | Total current assets                 |                                                      |           | 161,457   |           |         |               | 82,046    |           |        |        | 72,558 |              |         |           | 2,674        |           |   |            |           |            |         |           | 318,735   |          
|                                               |                                                     |                                      |                                                      |           |           |           |         |               |           |           |        |        |        |              |         |           |              |          
|PROPERTY, PLANT AND EQUIPMENT, net             |                                                     |                                      | 353,897                                              |           |           |           | 168,463 |               |           |           |       |        |        |              |        |           |              |           |  |            |            |            | 522,360 |          
|                                               |                                                     |                                      |                                                      |           |           |           |         |               |           |           |        |        |        |              |         |           |              |          
|OTHER ASSETS:                                  |                                                     |                                      |                                                      |           |           |           |         |               |           |           |        |        |        |              |         |           |              |           |   |            |            |            |         |          
|                                               | Net intercompany (payable) receivable               |                                      |                                                      | (1,960    | )         |           |         | (9,132        | )         |           |        | 3,423  |        |              |         | 774,862   |              |           |   | (767,193   | )          |            |         |          |          
|                                               | Restricted assets                                   |                                      |                                                      | 10,427    |           |           |         |              |           |           |        |       |        |              |         |          |              |           |   |           |            |            |         | 10,427    |          
|                                               | Wireless license acquisition costs                  |                                      |                                                      | 1,103,353 |           |           |         | 669,169       |           |           |        | 9,676  |        |              |         | 4,412     |              |           |   |           |            |            |         | 1,786,610 |          
|                                               | Goodwill                                            |                                      |                                                      | 45,392    |           |           |         | 572,113       |           |           |        |       |        |              |         | 1,143     |              |           |   |           |            |            |         | 618,648   |          
|                                               | Deferred financing costs, net                       |                                      |                                                      | 14,585    |           |           |         | 15,194        |           |           |        |       |        |              |         | 12,059    |              |           |   |           |            |            |         | 41,838    |          
|                                               | Customer list, net                                  |                                      |                                                      | 25,978    |           |           |         | 55,253        |           |           |        |       |        |              |         |          |              |           |   |           |            |            |         | 81,231    |          
|                                               | Other non-current assets                            |                                      |                                                      | 27,438    |           |           |         | 730           |           |           |        | 10     |        |              |         | 1,624,373 |              |           |   | (1,648,373 | )          |            |         | 4,178     |          
|                                               |                                                     |                                      |                                                      |           |           |           |         |               |           |           |        |        |        |              |         |           |              |          
|                                               |                                                     | Total other assets                   |                                                      |           | 1,225,213 |           |         |               | 1,303,327 |           |        |        | 13,109 |              |         |           | 2,416,849    |           |   |            | (2,415,566 | )          |         |           | 2,542,932 |          
|                                               |                                                     |                                      |                                                      |           |           |           |         |               |           |           |        |        |        |              |         |           |              |          
|                                               |                                                     |                                      | Total assets                                         |           | $         | 1,740,567 |         |               | $         | 1,553,836 |        |        | $      | 85,667       |         |           | $            | 2,419,523 |   |            | $          | (2,415,566 | )       |           | $         | 3,384,027 | 
|                                               |                                                     |                                      |                                                      |           |           |           |         |               |           |           |        |        |        |              |         |           |              |          
|                                              
|LIABILITIES AND STOCKHOLDERS (DEFICIT) EQUITY
|CURRENT LIABILITIES:                           |                                                     |                                      |                                                      |           |           |           |         |               |           |           |        |        |        |              |         |           |              |           |   |            |            |            |         |          
|                                               | Accounts payable                                    |                                      | $                                                    | 80,615    |           |           | $       | 18,057        |           |           | $      |       |        |              | $       |          |              |           | $ |           |            |            | $       | 98,672    |          
|                                               | Accrued expenses                                    |                                      |                                                      | 21,500    |           |           |         | 7,838         |           |           |        | (68    | )      |              |         | 24        |              |           |   |           |            |            |         | 29,294    |          
|                                               | Accrued interest payable                            |                                      |                                                      | 24,505    |           |           |         | 15,798        |           |           |        |       |        |              |         | 27,496    |              |           |   |           |            |            |         | 67,799    |          
|                                               | Deferred revenue and customer deposits              |                                      |                                                      | 16,566    |           |           |         | 12,966        |           |           |        |       |        |              |         |          |              |           |   |           |            |            |         | 29,532    |          
|                                               | Accrued dividends payable                           |                                      |                                                      |          |           |           |         |              |           |           |        |       |        |              |         | 29,233    |              |           |   |           |            |            |         | 29,233    |          
|                                               | Current portion of obligations under capital leases |                                      |                                                      | 127       |           |           |         |              |           |           |        |       |        |              |         |          |              |           |   |           |            |            |         | 127       |          
|                                               |                                                     |                                      |                                                      |           |           |           |         |               |           |           |        |        |        |              |         |           |              |          
|                                               |                                                     | Total current liabilities            |                                                      |           | 143,313   |           |         |               | 54,659    |           |        |        | (68    | )            |         |           | 56,753       |           |   |            |           |            |         |           | 254,657   |          
|                                               |                                                     |                                      |                                                      |           |           |           |         |               |           |           |        |        |        |              |         |           |              |          
|OTHER LIABILITIES:                             |                                                     |                                      |                                                      |           |           |           |         |               |           |           |        |        |        |              |         |           |              |           |   |            |            |            |         |          
|                                               | Notes payable                                       |                                      |                                                      | 1,592,166 |           |           |         | 914,029       |           |           |        |       |        |              |         | 717,424   |              |           |   | (767,166   | )          |            |         | 2,456,453 |          
|                                               | Deferred tax liabilities                            |                                      |                                                      | 188,648   |           |           |         | 156,657       |           |           |        | 597    |        |              |         | (72,351   | )            |           |   | (10        | )          |            |         | 273,541   |          
|                                               | Mandatorily redeemable preferred stock, net         |                                      |                                                      |          |           |           |         |              |           |           |        |       |        |              |         | 237,063   |              |           |   |           |            |            |         | 237,063   |          
|                                               | Other non-current liabilities                       |                                      |                                                      | 5,907     |           |           |         | 4,162         |           |           |        |       |        |              |         |          |              |           |   |           |            |            |         | 10,069    |          
|SERIES F CONVERTIBLE PREFERRED STOCK           |                                                     |                                      |                                                     |           |           |           |        |               |           |           |       |        |        |              | 122,536 |           |              |           |  |            |            |            | 122,536 |          
|STOCKHOLDERS (DEFICIT) EQUITY:                |                                                     |                                      |                                                      |           |           |           |         |               |           |           |        |        |        |              |         |           |              |           |   |            |            |            |         |          
|                                               |                                                     | Total stockholders (deficit) equity |                                                      |           | (189,467  | )         |         |               | 424,329   |           |        |        | 85,138 |              |         |           | 1,358,098    |           |   |            | (1,648,390 | )          |         |           | 29,708    |          
|                                               |                                                     |                                      |                                                      |           |           |           |         |               |           |           |        |        |        |              |         |           |              |          
|                                               |                                                     |                                      | Total liabilities and stockholders (deficit) equity |           | $         | 1,740,567 |         |               | $         | 1,553,836 |        |        | $      | 85,667       |         |           | $            | 2,419,523 |   |            | $          | (2,415,566 | )       |           | $         | 3,384,027 | 
|                                               |                                                     |                                      |                                                      |           |           |           |         |               |           |           |        |        |        |              |         |           |              |          

14



---



##### Table of Contents



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




CONDENSED CONSOLIDATING BALANCE SHEET


As of December 31, 2004


|                                               |                                                     |                                      |                                                      |           |           |           |         |               |           |           |        |        |        |              |         |           |              |           |   |            |            |            |         |           |           |           | 
|---------------------------------------------- | --------------------------------------------------- | ------------------------------------ | ---------------------------------------------------- | --------- | --------- | --------- | ------- | ------------- | --------- | --------- | ------ | ------ | ------ | ------------ | ------- | --------- | ------------ | --------- | - | ---------- | ---------- | ---------- | ------- | --------- | --------- | --------- | 
|                                               |                                                     | Dobson                               |                                                      |           | American  |           |         | Non-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 assets                                   |                                      |                                                      | 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   |          
|                                               | Other non-current liabilities                       |                                      |                                                      | 5,423     |           |           |         | 4,161         |           |           |        |       |        |              |         |          |              |           |   |           |            |            |         | 9,584     |          
|SERIES F CONVERTIBLE PREFERRED STOCK           |                                                     |                                      |                                                     |           |           |           |        |               |           |           |       |        |        |              | 122,536 |           |              |           |  |            |            |            | 122,536 |          
|STOCKHOLDERS (DEFICIT) EQUITY:                |                                                     |                                      |                                                      |           |           |           |         |               |           |           |        |        |        |              |         |           |              |           |   |            |            |            |         |          
|                                               |                                                     | Total 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 | 
|                                               |                                                     |                                      |                                                      |           |           |           |         |               |           |           |        |        |        |              |         |           |              |          

15



---



##### Table of Contents



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


For the Three Months Ended March 31, 2005


|                                                                                       |                                                     |                                                                                         |         |         |          |   |        |               |         |   |        |     |   |              |         |         |              |   |     |         |        |   |         |         |         | 
|-------------------------------------------------------------------------------------- | --------------------------------------------------- | --------------------------------------------------------------------------------------- | ------- | ------- | -------- | - | ------ | ------------- | ------- | - | ------ | --- | - | ------------ | ------- | ------- | ------------ | - | --- | ------- | ------ | - | ------- | ------- | ------- | 
|                                                                                       |                                                     | Dobson                                                                                  |         |         | American |   |        | Non-Guarantor |         |   |        |     |   |              |        
|                                                                                       |                                                     | Cellular                                                                                |         |         | Cellular |   |        | Subsidiaries  |         |   | Parent |     |   | Eliminations |         |         | Consolidated |  
|                                                                                       |                                                     |                                                                                         |         |         |          |   |        |               |         |   |        |     |   |              |         |         |              |  
|                                                                                       |                                                     | ($ in thousands)                                                                        |        
|                                                                                       |                                                     | (Unaudited)                                                                             |        
|OPERATING REVENUE:                                                                     |                                                     |                                                                                         |         |         |          |   |        |               |         |   |        |     |   |              |         |         |              |   |     |         |        |   |         |        
|                                                                                       | Service revenue                                     |                                                                                         | $       | 119,524 |          |   | $      | 86,558        |         |   | $      |    |   |              | $       |        |              |   | $   |        |        |   | $       | 206,082 |        
|                                                                                       | Roaming revenue                                     |                                                                                         |         | 30,911  |          |   |        | 22,519        |         |   |        |    |   |              |         |        |              |   |     |        |        |   |         | 53,430  |        
|                                                                                       | Equipment and other revenue                         |                                                                                         |         | 10,250  |          |   |        | 5,008         |         |   |        |    |   |              |         |        |              |   |     | (3,012  | )      |   |         | 12,246  |        
|                                                                                       |                                                     |                                                                                         |         |         |          |   |        |               |         |   |        |     |   |              |         |         |              |  
|                                                                                       |                                                     | Total operating revenue                                                                 |         |         | 160,685  |   |        |               | 114,085 |   |        |     |  |              |         |         |             |   |     |         | (3,012 | ) |         |         | 271,758 | 
|                                                                                       |                                                     |                                                                                         |         |         |          |   |        |               |         |   |        |     |   |              |         |         |              |  
|OPERATING EXPENSES:                                                                    |                                                     |                                                                                         |         |         |          |   |        |               |         |   |        |     |   |              |         |         |              |   |     |         |        |   |         |        
|                                                                                       |                                                     | Cost of service (exclusive of depreciation and amortization
    shown separately below) |         |         | 43,978   |   |        |               | 29,619  |   |        |     |  |              |         |         |             |   |     |         | (1,298 | ) |         |         | 72,299  | 
|                                                                                       | Cost of equipment                                   |                                                                                         |         | 18,708  |          |   |        | 11,658        |         |   |        |    |   |              |         |        |              |   |     |        |        |   |         | 30,366  |        
|                                                                                       | Marketing and selling                               |                                                                                         |         | 19,721  |          |   |        | 14,373        |         |   |        |    |   |              |         |        |              |   |     |        |        |   |         | 34,094  |        
|                                                                                       | General and administrative                          |                                                                                         |         | 25,279  |          |   |        | 21,241        |         |   |        | 5   |   |              |         |        |              |   |     | (1,714  | )      |   |         | 44,811  |        
|                                                                                       | Depreciation and amortization                       |                                                                                         |         | 30,315  |          |   |        | 21,255        |         |   |        |    |   |              |         |        |              |   |     |        |        |   |         | 51,570  |        
|                                                                                       |                                                     |                                                                                         |         |         |          |   |        |               |         |   |        |     |   |              |         |         |              |  
|                                                                                       |                                                     | Total operating expenses                                                                |         |         | 138,001  |   |        |               | 98,146  |   |        |     | 5 |              |         |         |             |   |     |         | (3,012 | ) |         |         | 233,140 | 
|                                                                                       |                                                     |                                                                                         |         |         |          |   |        |               |         |   |        |     |   |              |         |         |              |  
|OPERATING INCOME (LOSS)                                                                |                                                     |                                                                                         | 22,684  |         |          |   | 15,939 |               |         |   | (5     | )   |   |              |        |         |              |   |    |         |        |   | 38,618  |        
|                                                                                       |                                                     |                                                                                         |         |         |          |   |        |               |         |   |        |     |   |              |         |         |              |  
|OTHER (EXPENSE) INCOME:                                                                |                                                     |                                                                                         |         |         |          |   |        |               |         |   |        |     |   |              |         |         |              |   |     |         |        |   |         |        
|                                                                                       | Interest (expense) income                           |                                                                                         |         | (37,025 | )        |   |        | (23,784       | )       |   |        |    |   |              |         | (18,443 | )            |   |     | 18,510  |        |   |         | (60,742 | )      
|                                                                                       | Dividends on mandatorily redeemable preferred stock |                                                                                         |         |        |          |   |        |              |         |   |        |    |   |              |         | (7,931  | )            |   |     |        |        |   |         | (7,931  | )      
|                                                                                       | Other income (expense), net                         |                                                                                         |         | 1,726   |          |   |        | (652          | )       |   |        | 237 |   |              |         | 16,460  |              |   |     | (18,537 | )      |   |         | (766    | )      
|                                                                                       |                                                     |                                                                                         |         |         |          |   |        |               |         |   |        |     |   |              |         |         |              |  
|(LOSS) INCOME BEFORE MINORITY INTERESTS IN INCOME OF
    SUBSIDIARIES AND INCOME TAXES |                                                     |                                                                                         | (12,615 | )       |          |   | (8,497 | )             |         |   | 232    |     |   |              | (9,914  | )       |              |   | (27 | )       |        |   | (30,821 | )      
|MINORITY INTERESTS IN INCOME OF SUBSIDIARIES                                           |                                                     |                                                                                         | (1,830  | )       |          |   |       |               |         |   |       |     |   |              |        |         |              |   |    |         |        |   | (1,830  | )      
|                                                                                       |                                                     |                                                                                         |         |         |          |   |        |               |         |   |        |     |   |              |         |         |              |  
|(LOSS) INCOME BEFORE INCOME TAXES                                                      |                                                     |                                                                                         | (14,445 | )       |          |   | (8,497 | )             |         |   | 232    |     |   |              | (9,914  | )       |              |   | (27 | )       |        |   | (32,651 | )      
|                                                                                       | Income tax benefit (expense)                        |                                                                                         |         | 5,489   |          |   |        | 3,229         |         |   |        | (88 | ) |              |         | 754     |              |   |     | 10      |        |   |         | 9,394   |        
|                                                                                       |                                                     |                                                                                         |         |         |          |   |        |               |         |   |        |     |   |              |         |         |              |  
|NET (LOSS) INCOME                                                                      |                                                     |                                                                                         | (8,956  | )       |          |   | (5,268 | )             |         |   | 144    |     |   |              | (9,160  | )       |              |   | (17 | )       |        |   | (23,257 | )      
|                                                                                       | Dividends on preferred stock                        |                                                                                         |         |        |          |   |        |              |         |   |        |    |   |              |         | (2,145  | )            |   |     |        |        |   |         | (2,145  | )      
|                                                                                       |                                                     |                                                                                         |         |         |          |   |        |               |         |   |        |     |   |              |         |         |              |  
|NET (LOSS) INCOME APPLICABLE TO COMMON STOCKHOLDERS                                    |                                                     | $                                                                                       | (8,956  | )       |          | $ | (5,268 | )             |         | $ | 144    |     |   | $            | (11,305 | )       |              | $ | (17 | )       |        | $ | (25,402 | )      
|                                                                                       |                                                     |                                                                                         |         |         |          |   |        |               |         |   |        |     |   |              |         |         |              |  

16



---



##### Table of Contents



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


For the Three Months Ended March 31, 2004


|                                                                                       |                                                                |                          |        |         |          |   |         |               |        |   |        |        |   |              |         |         |              |   |   |        |        |   |         |         |         | 
|-------------------------------------------------------------------------------------- | -------------------------------------------------------------- | ------------------------ | ------ | ------- | -------- | - | ------- | ------------- | ------ | - | ------ | ------ | - | ------------ | ------- | ------- | ------------ | - | - | ------ | ------ | - | ------- | ------- | ------- | 
|                                                                                       |                                                                | Dobson                   |        |         | American |   |         | Non-Guarantor |        |   |        |        |   |              |        
|                                                                                       |                                                                | Cellular                 |        |         | Cellular |   |         | Subsidiaries  |        |   | Parent |        |   | Eliminations |         |         | Consolidated |  
|                                                                                       |                                                                |                          |        |         |          |   |         |               |        |   |        |        |   |              |         |         |              |  
|                                                                                       |                                                                | ($ in thousands)         |       
|                                                                                       |                                                                | (Unaudited)              |       
|OPERATING REVENUE:                                                                     |                                                                |                          |        |         |          |   |         |               |        |   |        |        |   |              |         |         |              |   |   |        |        |   |         |        
|                                                                                       | Service revenue                                                |                          | $      | 104,327 |          |   | $       | 77,372        |        |   | $      |       |   |              | $       |        |              |   | $ |       |        |   | $       | 181,699 |        
|                                                                                       | Roaming revenue                                                |                          |        | 23,962  |          |   |         | 18,113        |        |   |        |       |   |              |         |        |              |   |   |       |        |   |         | 42,075  |        
|                                                                                       | Equipment and other revenue                                    |                          |        | 7,330   |          |   |         | 4,424         |        |   |        |       |   |              |         |        |              |   |   | (1,737 | )      |   |         | 10,017  |        
|                                                                                       |                                                                |                          |        |         |          |   |         |               |        |   |        |        |   |              |         |         |              |  
|                                                                                       |                                                                | Total operating revenue  |        |         | 135,619  |   |         |               | 99,909 |   |        |        |  |              |         |         |             |   |   |        | (1,737 | ) |         |         | 233,791 | 
|                                                                                       |                                                                |                          |        |         |          |   |         |               |        |   |        |        |   |              |         |         |              |  
|OPERATING EXPENSES:                                                                    |                                                                |                          |        |         |          |   |         |               |        |   |        |        |   |              |         |         |              |   |   |        |        |   |         |        
|                                                                                       | Cost of service (exclusive of items shown separately below)    |                          |        | 32,218  |          |   |         | 22,148        |        |   |        |       |   |              |         |        |              |   |   | (180   | )      |   |         | 54,186  |        
|                                                                                       | Cost of equipment                                              |                          |        | 13,410  |          |   |         | 10,124        |        |   |        |       |   |              |         |        |              |   |   |       |        |   |         | 23,534  |        
|                                                                                       | Marketing and selling                                          |                          |        | 15,947  |          |   |         | 13,215        |        |   |        |       |   |              |         |        |              |   |   |       |        |   |         | 29,162  |        
|                                                                                       | General and administrative                                     |                          |        | 23,284  |          |   |         | 22,044        |        |   |        | 5      |   |              |         |        |              |   |   | (1,557 | )      |   |         | 43,776  |        
|                                                                                       | Depreciation and amortization                                  |                          |        | 25,217  |          |   |         | 20,231        |        |   |        |       |   |              |         |        |              |   |   |       |        |   |         | 45,448  |        
|                                                                                       |                                                                |                          |        |         |          |   |         |               |        |   |        |        |   |              |         |         |              |  
|                                                                                       |                                                                | Total operating expenses |        |         | 110,076  |   |         |               | 87,762 |   |        |        | 5 |              |         |         |             |   |   |        | (1,737 | ) |         |         | 196,106 | 
|                                                                                       |                                                                |                          |        |         |          |   |         |               |        |   |        |        |   |              |         |         |              |  
|OPERATING INCOME (LOSS)                                                                |                                                                |                          | 25,543 |         |          |   | 12,147  |               |        |   | (5     | )      |   |              |        |         |              |   |  |        |        |   | 37,685  |        
|                                                                                       |                                                                |                          |        |         |          |   |         |               |        |   |        |        |   |              |         |         |              |  
|OTHER (EXPENSE) INCOME:                                                                |                                                                |                          |        |         |          |   |         |               |        |   |        |        |   |              |         |         |              |   |   |        |        |   |         |        
|                                                                                       | Interest (expense) income                                      |                          |        | (9,216  | )        |   |         | (23,675       | )      |   |        | (1,138 | ) |              |         | (22,823 | )            |   |   | 2,614  |        |   |         | (54,238 | )      
|                                                                                       | (Loss) gain from extinguishment of debt                        |                          |        | (349    | )        |   |         |              |        |   |        |       |   |              |         | 6,088   |              |   |   |       |        |   |         | 5,739   |        
|                                                                                       | Dividends on mandatory redeemable preferred stock              |                          |        |        |          |   |         |              |        |   |        |       |   |              |         | (8,618  | )            |   |   |       |        |   |         | (8,618  | )      
|                                                                                       | Other income (expense), net                                    |                          |        | 2,444   |          |   |         | (350          | )      |   |        | 217    |   |              |         | 1,580   |              |   |   | (2,614 | )      |   |         | 1,277   |        
|                                                                                       |                                                                |                          |        |         |          |   |         |               |        |   |        |        |   |              |         |         |              |  
|INCOME (LOSS) BEFORE MINORITY INTERESTS IN INCOME OF
    SUBSIDIARIES AND INCOME TAXES |                                                                |                          | 18,422 |         |          |   | (11,878 | )             |        |   | (926   | )      |   |              | (23,773 | )       |              |   |  |        |        |   | (18,155 | )      
|MINORITY INTERESTS IN INCOME OF SUBSIDIARIES                                           |                                                                |                          | (944   | )       |          |   |        |               |        |   |       |        |   |              |        |         |              |   |  |        |        |   | (944    | )      
|                                                                                       |                                                                |                          |        |         |          |   |         |               |        |   |        |        |   |              |         |         |              |  
|INCOME (LOSS) BEFORE INCOME TAXES                                                      |                                                                |                          | 17,478 |         |          |   | (11,878 | )             |        |   | (926   | )      |   |              | (23,773 | )       |              |   |  |        |        |   | (19,099 | )      
|                                                                                       | Income tax (expense) benefit                                   |                          |        | (6,642  | )        |   |         | 4,513         |        |   |        | 352    |   |              |         | 5,751   |              |   |   |       |        |   |         | 3,974   |        
|                                                                                       |                                                                |                          |        |         |          |   |         |               |        |   |        |        |   |              |         |         |              |  
|INCOME (LOSS) FROM CONTINUING OPERATIONS                                               |                                                                |                          | 10,836 |         |          |   | (7,365  | )             |        |   | (574   | )      |   |              | (18,022 | )       |              |   |  |        |        |   | (15,125 | )      
|                                                                                       | Income from discontinued operations, net of income tax expense |                          |        | 443     |          |   |         |              |        |   |        |       |   |              |         |        |              |   |   |       |        |   |         | 443     |        
|                                                                                       |                                                                |                          |        |         |          |   |         |               |        |   |        |        |   |              |         |         |              |  
|NET INCOME (LOSS)                                                                      |                                                                |                          | 11,279 |         |          |   | (7,365  | )             |        |   | (574   | )      |   |              | (18,022 | )       |              |   |  |        |        |   | (14,682 | )      
|                                                                                       | Dividends on preferred stock                                   |                          |        |        |          |   |         |              |        |   |        |       |   |              |         | (1,859  | )            |   |   |       |        |   |         | (1,859  | )      
|                                                                                       |                                                                |                          |        |         |          |   |         |               |        |   |        |        |   |              |         |         |              |  
|NET INCOME (LOSS) APPLICABLE TO COMMON STOCKHOLDERS                                    |                                                                | $                        | 11,279 |         |          | $ | (7,365  | )             |        | $ | (574   | )      |   | $            | (19,881 | )       |              | $ |  |        |        | $ | (16,541 | )      
|                                                                                       |                                                                |                          |        |         |          |   |         |               |        |   |        |        |   |              |         |         |              |  

17



---



##### Table of Contents



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


For the Three Months Ended March 31, 2005


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

18



---



##### Table of Contents



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


For the Three Months Ended March 31, 2004


|                                                     |                                                                                                                                                                    |                                                           |                                                     |         |          |         |        |               |         |        |        |         |         |              |         |              |        |          |   |   |   |   |         |         |         |         |  
|---------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------- | --------------------------------------------------- | ------- | -------- | ------- | ------ | ------------- | ------- | ------ | ------ | ------- | ------- | ------------ | ------- | ------------ | ------ | -------- | - | - | - | - | ------- | ------- | ------- | ------- | -
|                                                     |                                                                                                                                                                    | Dobson                                                    |                                                     |         | American |         |        | Non-Guarantor |         |        |        |         |         |              |        
|                                                     |                                                                                                                                                                    | Cellular                                                  |                                                     |         | Cellular |         |        | Subsidiaries  |         |        | Parent |         |         | Eliminations |         | Consolidated |       
|                                                     |                                                                                                                                                                    |                                                           |                                                     |         |          |         |        |               |         |        |        |         |         |              |         |              |       
|                                                     |                                                                                                                                                                    | ($ in thousands)                                          |                                                    
|                                                     |                                                                                                                                                                    | (Unaudited)                                               |                                                    
|CASH FLOWS FROM OPERATING ACTIVITIES:                |                                                                                                                                                                    |                                                           |                                                     |         |          |         |        |               |         |        |        |         |         |              |         |              |        |          |   |   |   |   |         |        
|                                                     | Income (loss) from continuing operations                                                                                                                           |                                                           | $                                                   | 10,836  |          |         | $      | (7,365        | )       |        | $      | (574    | )       |              | $       | (18,022      | )      |          | $ |  |   |   | $       | (15,125 | )      
|                                                     | 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                             |                                                     |         | 25,217   |         |        |               | 20,231  |        |        |         |        |              |         |              |       |          |   |   |  |   |         |         | 45,448  |        
|                                                     |                                                                                                                                                                    | Amortization of bond premium and financing costs          |                                                     |         | 576      |         |        |               | 804     |        |        |         |        |              |         |              | 617    |          |   |   |  |   |         |         | 1,997   |        
|                                                     |                                                                                                                                                                    | Deferred income tax benefit (expense)                     |                                                     |         | 6,680    |         |        |               | (4,678  | )      |        |         | (352    | )            |         |              | (5,751 | )        |   |   |  |   |         |         | (4,101  | )      
|                                                     |                                                                                                                                                                    | Non-cash mandatorily redeemable preferred stock dividends |                                                     |         |         |         |        |               |        |        |        |         |        |              |         |              | 197    |          |   |   |  |   |         |         | 197     |        
|                                                     |                                                                                                                                                                    | Other operating activities                                |                                                     |         | 322      |         |        |               | (6      | )      |        |         |        |              |         |              | 1,093  |          |   |   |  |   |         |         | 1,409   |        
|                                                     | Changes in current assets and liabilities                                                                                                                         |                                                           |                                                     |         |          |         |        |               |         |        |        |         |         |              |         |              |        |          |   |   |   |   |         |         |        
|                                                     |                                                                                                                                                                    | Accounts receivable                                       |                                                     |         | 12,942   |         |        |               | 5,329   |        |        |         |        |              |         |              |       |          |   |   |  |   |         |         | 18,271  |        
|                                                     |                                                                                                                                                                    | Inventory                                                 |                                                     |         | 86       |         |        |               | (387    | )      |        |         |        |              |         |              |       |          |   |   |  |   |         |         | (301    | )      
|                                                     |                                                                                                                                                                    | Prepaid expenses and other                                |                                                     |         | (1,264   | )       |        |               | (574    | )      |        |         | 5       |              |         |              |       |          |   |   |  |   |         |         | (1,833  | )      
|                                                     |                                                                                                                                                                    | Accounts payable                                          |                                                     |         | (24,398  | )       |        |               | 3,634   |        |        |         |        |              |         |              |       |          |   |   |  |   |         |         | (20,764 | )      
|                                                     |                                                                                                                                                                    | Accrued expenses                                          |                                                     |         | (4,219   | )       |        |               | (19,927 | )      |        |         | (14,162 | )            |         |              | 18,970 |          |   |   |  |   |         |         | (19,338 | )      
|                                                     |                                                                                                                                                                    | Deferred revenue and customer deposits                    |                                                     |         | 474      |         |        |               | (309    | )      |        |         |        |              |         |              | (6     | )        |   |   |  |   |         |         | 159     |        
|                                                     |                                                                                                                                                                    |                                                           |                                                     |         |          |         |        |               |         |        |        |         |         |              |         |              |        |         
|                                                     |                                                                                                                                                                    |                                                           | Net cash provided by (used in) operating activities |         |          | 27,252  |        |               |         | (3,248 | )      |         |         | (15,083      | )       |              |        | (2,902   | ) |   |   |  |         |         |         | 6,019   |  
|                                                     |                                                                                                                                                                    |                                                           |                                                     |         |          |         |        |               |         |        |        |         |         |              |         |              |        |         
|CASH FLOWS FROM INVESTING ACTIVITIES:                |                                                                                                                                                                    |                                                           |                                                     |         |          |         |        |               |         |        |        |         |         |              |         |              |        |          |   |   |   |   |         |        
|                                                     | Capital expenditures                                                                                                                                               |                                                           |                                                     | (25,350 | )        |         |        | (15,254       | )       |        |        |        |         |              |         |             |        |          |   |  |   |   |         | (40,604 | )      
|                                                     | Refund 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                                                                                                                                     |                                                           |                                                     |        |          |         |        |              |         |        |        | 45,000  |         |              |         |             |        |          |   |  |   |   |         | 45,000  |        
|                                                     | (Increase) decrease in receivable-affiliates                                                                                                                       |                                                           |                                                     | (22,181 | )        |         |        | 6,659         |         |        |        | (50,008 | )       |              |         | 65,530       |        |          |   |  |   |   |         |        |        
|                                                     | Other investing activities                                                                                                                                         |                                                           |                                                     | (1,043  | )        |         |        | (7            | )       |        |        |        |         |              |         |             |        |          |   |  |   |   |         | (1,050  | )      
|                                                     |                                                                                                                                                                    |                                                           |                                                     |         |          |         |        |               |         |        |        |         |         |              |         |              |        |         
|                                                     |                                                                                                                                                                    |                                                           | Net cash (used in) provided by investing activities |         |          | (19,411 | )      |               |         | (4,433 | )      |         |         | (30,008      | )       |              |        | 65,530   |   |   |   |  |         |         |         | 11,678  |  
|                                                     |                                                                                                                                                                    |                                                           |                                                     |         |          |         |        |               |         |        |        |         |         |              |         |              |        |         
|CASH FLOWS FROM FINANCING ACTIVITIES:                |                                                                                                                                                                    |                                                           |                                                     |         |          |         |        |               |         |        |        |         |         |              |         |              |        |          |   |   |   |   |         |        
|                                                     | Repayments of long-term debt                                                                                                                                       |                                                           |                                                     | (6,620  | )        |         |        |              |         |        |        |        |         |              |         | (55,500      | )      |          |   |  |   |   |         | (62,120 | )      
|                                                     | Distributions to minority interest holders                                                                                                                         |                                                           |                                                     | (1,629  | )        |         |        |              |         |        |        |        |         |              |         |             |        |          |   |  |   |   |         | (1,629  | )      
|                                                     | Investment in subsidiary                                                                                                                                           |                                                           |                                                     | (2,300  | )        |         |        |              |         |        |        |        |         |              |         | 2,300        |        |          |   |  |   |   |         |        |        
|                                                     | Capital contribution from parent                                                                                                                                   |                                                           |                                                     |        |          |         |        |              |         |        |        | 65,300  |         |              |         | (65,300      | )      |          |   |  |   |   |         |        |        
|                                                     | Other financing costs                                                                                                                                              |                                                           |                                                     | (14     | )        |         |        | (50           | )       |        |        |        |         |              |         | (147         | )      |          |   |  |   |   |         | (211    | )      
|                                                     |                                                                                                                                                                    |                                                           |                                                     |         |          |         |        |               |         |        |        |         |         |              |         |              |        |         
|                                                     |                                                                                                                                                                    |                                                           | Net cash (used in) provided by financing activities |         |          | (10,563 | )      |               |         | (50    | )      |         |         | 65,300       |         |              |        | (118,647 | ) |   |   |  |         |         |         | (63,960 | )
|                                                     |                                                                                                                                                                    |                                                           |                                                     |         |          |         |        |               |         |        |        |         |         |              |         |              |        |         
|NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS |                                                                                                                                                                    |                                                           | (2,722                                              | )       |          |         | (7,731 | )             |         |        | 20,209 |         |         |              | (56,019 | )            |        |          |  |   |   |   | (46,263 | )      
|CASH AND CASH EQUIVALENTS, beginning of period       |                                                                                                                                                                    |                                                           | 59,387                                              |         |          |         | 27,505 |               |         |        | 3,801  |         |         |              | 60,846  |              |        |          |  |   |   |   | 151,539 |        
|                                                     |                                                                                                                                                                    |                                                           |                                                     |         |          |         |        |               |         |        |        |         |         |              |         |              |        |         
|CASH AND CASH EQUIVALENTS, end of period             |                                                                                                                                                                    | $                                                         | 56,665                                              |         |          | $       | 19,774 |               |         | $      | 24,010 |         |         | $            | 4,827   |              |        | $        |  |   |   | $ | 105,276 |        
|                                                     |                                                                                                                                                                    |                                                           |                                                     |         |          |         |        |               |         |        |        |         |         |              |         |              |        |         

19



---



##### Table of Contents








|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|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 Michigan 2 and 4 RSAs.




20



---



##### Table of Contents





Acquisition of NPI.




Maryland/Michigan Swap.




RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED
MARCH 31, 2005 AND 2004




|                                                  |  |                              |            |   |      |   |            |  
|------------------------------------------------- |  | ---------------------------- | ---------- | - | ---- | - | ---------- | -
|                                                  |  | Three Months Ended March 31, |           
|                                                  |  |                              |           
|                                                  |  | 2005                         |            |   | 2004 |  
|                                                  |  |                              |            |   |      |  
|Market population(1)                              |  |                              | 11,757,400 |   |      |   | 10,790,300 |  
|Ending subscribers                                |  |                              | 1,590,500  |   |      |   | 1,567,200  |  
|Market penetration(2)                             |  |                              | 13.5       | % |      |   | 14.5       | %
|Gross subscriber additions                        |  |                              | 122,000    |   |      |   | 99,600     |  
|Average subscribers                               |  |                              | 1,599,900  |   |      |   | 1,559,700  |  
|Average monthly service revenue per subscriber(3) |  | $                            | 43         |   |      | $ | 39         |  
|Average monthly post-paid churn(4)                |  |                              | 2.4        | % |      |   | 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.                                                                      

Basis of Presentation




21



---



##### Table of Contents





|                                                                                        |                             |                                   |          |            |                                   |   |             |                   |  |   |            |            |  |         |             |         |         |                    |       |             |  |   |         |         |  |  |      |      |  
|--------------------------------------------------------------------------------------- | --------------------------- | --------------------------------- | -------- | ---------- | --------------------------------- | - | ----------- | ----------------- |  | - | ---------- | ---------- |  | ------- | ----------- | ------- | ------- | ------------------ | ----- | ----------- |  | - | ------- | ------- |  |  | ---- | ---- | -
|                                                                                        |                             | Three Months Ended March 31, 2005 |          |            | Three Months Ended March 31, 2004 |   |             |                  
|                                                                                        |                             |                                   |          |            |                                   |   |             | Percentage Change | 
|                                                                                        |                             |                                   |          | Results    |                                   |   | Results     |                   |  |   |            | Results    |  |         | Results     |         |         | in Non-Acquisition |      
|                                                                                        |                             |                                   |          | from Newly |                                   |   | from Non-   |                   |  |   |            | from Newly |  |         | from Non-   |         |         | Markets            |      
|                                                                                        |                             |                                   |          | Acquired   |                                   |   | Acquisition |                   |  |   |            | Acquired   |  |         | Acquisition |         |         |                    |      
|                                                                                        |                             | Historical                        |          |            | Markets                           |   |             | Markets           |  |   | Historical |            |  | Markets |             |         | Markets |                    |       | 05 vs. 04 | 
|                                                                                        |                             |                                   |          |            |                                   |   |             |                   |  |   |            |            |  |         |             |         |         |                    |       |             | 
|                                                                                        |                             | ($ in thousands)                  |          |            |                                  
|Operating Revenue:                                                                      |                             |                                   |          |            |                                   |   |             |                   |  |   |            |            |  |         |             |         |         |                    |       |             |  |   |         |         |  |  |      |     
|Service revenue                                                                         |                             | $                                 | 206,082  |            |                                   | $ | 5,376       |                   |  | $ | 200,706    |            |  | $       | 181,699     |         |         | $                  | 1,065 |             |  | $ | 180,634 |         |  |  | 11.1 | %   
|Roaming revenue                                                                         |                             |                                   | 53,430   |            |                                   |   | 2,202       |                   |  |   | 51,228     |            |  |         | 42,075      |         |         |                    | 112   |             |  |   | 41,963  |         |  |  | 22.1 | %   
|                                                                                        | Equipment and other revenue |                                   |          | 12,246     |                                   |   |             | 690               |  |   |            | 11,556     |  |         |             | 10,017  |         |                    |       | 39          |  |   |         | 9,978   |  |  |      | 15.8 | %
|                                                                                        |                             |                                   |          |            |                                   |   |             |                   |  |   |            |            |  |         |             |         |         |                    |       |             | 
|Total operating revenue                                                                 |                             |                                   | 271,758  |            |                                   |   | 8,268       |                   |  |   | 263,490    |            |  |         | 233,791     |         |         |                    | 1,216 |             |  |   | 232,575 |         |  |  | 13.3 | %   
|                                                                                        |                             |                                   |          |            |                                   |   |             |                   |  |   |            |            |  |         |             |         |         |                    |       |             | 
|Operating Expenses:                                                                     |                             |                                   |          |            |                                   |   |             |                   |  |   |            |            |  |         |             |         |         |                    |       |             |  |   |         |         |  |  |      |     
|Cost of service (exclusive of depreciation and amortization
    shown separately below) |                             |                                   | 72,299   |            |                                   |   | 3,186       |                   |  |   | 69,113     |            |  |         | 54,186      |         |         |                    | 269   |             |  |   | 53,917  |         |  |  | 28.2 | %   
|Cost of equipment                                                                       |                             |                                   | 30,366   |            |                                   |   | 751         |                   |  |   | 29,615     |            |  |         | 23,534      |         |         |                    | 106   |             |  |   | 23,428  |         |  |  | 26.4 | %   
|Marketing and selling                                                                   |                             |                                   | 34,094   |            |                                   |   | 1,672       |                   |  |   | 32,422     |            |  |         | 29,162      |         |         |                    | 149   |             |  |   | 29,013  |         |  |  | 11.7 | %   
|General and administrative                                                              |                             |                                   | 44,811   |            |                                   |   | 2,387       |                   |  |   | 42,424     |            |  |         | 43,776      |         |         |                    | 371   |             |  |   | 43,405  |         |  |  | (2.3 | )%  
|Depreciation and amortization                                                           |                             |                                   | 51,570   |            |                                   |   | 2,293       |                   |  |   | 49,277     |            |  |         | 45,448      |         |         |                    | 384   |             |  |   | 45,064  |         |  |  | 9.3  | %   
|                                                                                        |                             |                                   |          |            |                                   |   |             |                   |  |   |            |            |  |         |             |         |         |                    |       |             | 
|                                                                                        | Total operating expenses    |                                   |          | 233,140    |                                   |   |             | 10,289            |  |   |            | 222,851    |  |         |             | 196,106 |         |                    |       | 1,279       |  |   |         | 194,827 |  |  |      | 14.4 | %
|                                                                                        |                             |                                   |          |            |                                   |   |             |                   |  |   |            |            |  |         |             |         |         |                    |       |             | 
|Operating income (loss)                                                                 |                             |                                   | 38,618   |            |                                   |   | (2,021      | )                 |  |   | 40,639     |            |  |         | 37,685      |         |         |                    | (63   | )           |  |   | 37,748  |         |  |  | 7.7  | %   
|                                                                                        |                             |                                   |          |            |                                   |   |             |                   |  |   |            |            |  |         |             |         |         |                    |       |             | 
|Interest expense                                                                        |                             |                                   | (60,742  | )          |                                   |   |            |                   |  |   | (60,742    | )          |  |         | (54,238     | )       |         |                    |      |             |  |   | (54,238 | )       |  |  | 12.0 | %   
|Gain from extinguishment of debt                                                        |                             |                                   |         |            |                                   |   |            |                   |  |   |           |            |  |         | 5,739       |         |         |                    |      |             |  |   | 5,739   |         |  |  | *    |     
|Dividends on mandatorily redeemable preferred stock                                     |                             |                                   | (7,931   | )          |                                   |   |            |                   |  |   | (7,931     | )          |  |         | (8,618      | )       |         |                    |      |             |  |   | (8,618  | )       |  |  | *    |     
|Other (expense) income, net                                                             |                             |                                   | (766     | )          |                                   |   | 51          |                   |  |   | (817       | )          |  |         | 1,277       |         |         |                    |      |             |  |   | 1,277   |         |  |  | *    |     
|Minority interest in incom of subsidiaries                                              |                             |                                   | e (1,830 | )          |                                   |   |            |                   |  |   | (1,830     | )          |  |         | (944        | )       |         |                    |      |             |  |   | (944    | )       |  |  | 93.9 | %   
|Income tax benefit                                                                      |                             |                                   | 9,394    |            |                                   |   | 749         |                   |  |   | 8,645      |            |  |         | 3,974       |         |         |                    | 24    |             |  |   | 3,950   |         |  |  | *    |     
|                                                                                        |                             |                                   |          |            |                                   |   |             |                   |  |   |            |            |  |         |             |         |         |                    |       |             | 
|Loss from continuing operations                                                         |                             | $                                 | (23,257  | )          |                                   | $ | (1,221      | )                 |  | $ | (22,036    | )          |  | $       | (15,125     | )       |         | $                  | (39   | )           |  | $ | (15,086 | )       |  |  | *    |     
|                                                                                        |                             |                                   |          |            |                                   |   |             |                   |  |   |            |            |  |         |             |         |         |                    |       |             | 






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

Subscribers




22



---



##### Table of Contents









Operating Revenue.


Service revenue.




Roaming revenue.


23



---



##### Table of Contents







Equipment and other revenue.




Operating Expenses




Cost of service.




|                      |  |                              |        |  |            |  |        |        |  |   |            |  |  |  |        | 
|--------------------- |  | ---------------------------- | ------ |  | ---------- |  | ------ | ------ |  | - | ---------- |  |  |  | ------ | 
|                      |  | Three Months Ended March 31, |       
|                      |  |                              |       
|                      |  | 2005                         |        |  | 2004       | 
|                      |  |                              |        |  |            | 
|                      |  | Amount                       |        |  | Percentage |  |        | Amount |  |   | Percentage | 
|                      |  |                              |        |  |            |  |        |        |  |   |            | 
|                      |  | ($ in thousands)             |       
|Network costs         |  | $                            | 49,638 |  |            |  | 68.7%  |        |  | $ | 34,586     |  |  |  | 63.8%  | 
|Roaming costs         |  |                              | 22,661 |  |            |  | 31.3%  |        |  |   | 19,600     |  |  |  | 36.2%  | 
|                      |  |                              |        |  |            |  |        |        |  |   |            | 
|Total cost of service |  | $                            | 72,299 |  |            |  | 100.0% |        |  | $ | 54,186     |  |  |  | 100.0% | 
|                      |  |                              |        |  |            |  |        |        |  |   |            | 





24



---



##### Table of Contents





Cost of equipment.




Marketing and selling costs.




General and administrative costs.




Depreciation and amortization expense.




Non-Operating Results


Interest expense.


25



---



##### Table of Contents





Gain from extinguishment of debt.


Dividends on mandatorily redeemable preferred stock.


Other (expense) income, net.


Discontinued operations.


LIQUIDITY AND CAPITAL RESOURCES






Working Capital and Net Cash Flow






26



---



##### Table of Contents









Capital Resources




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













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

27



---



##### Table of Contents





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



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





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









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



28



---



##### Table of Contents

















| |           
| | ----------
| | Tower Sale





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





29



---



##### Table of Contents





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





Forward-Looking Statements









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










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



30



---



##### Table of Contents






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








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



31



---



##### Table of Contents








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








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



|        |    |     |             |                                                                                                                                     |           |  |           | 
|------- | -- | --- | ----------- | ----------------------------------------------------------------------------------------------------------------------------------- | --------- |  | --------- | 
|Exhibit |    |     |             |                                                                                                                                     | Method of | 
|Numbers |    |     | Description |                                                                                                                                     | Filing    | 
|        |    |     |             |                                                                                                                                     |           | 
|        | 10 | .1  |             | Employment Agreement, dated April 1, 2005, between Dobson
    Communications and Steven P. Dussek                                   |           |  | (1)[10.1] | 
|        | 10 | .2 |             | Equity Interest Purchase Agreement, dated March 14, 2005,
    by and between Global Tower, LLC and Dobson Cellular Systems
    Inc. |           |  | (2)       | 
|        | 10 | .3 |             | Equity Interests Purchase Agreement, dated March 14, 2005,
    by and between Global Tower, LLC and American Cellular               |           |  | (2)       | 
|        | 31 | .1  |             | Rule 13a-14(a) Certification by our principal executive
    officer                                                                 |           |  | (2)       | 
|        | 31 | .2  |             | Rule 13a-14(a) Certification by our principal financial
    officer                                                                 |           |  | (2)       | 
|        | 32 | .1  |             | Section 1350 Certification by our principal executive
    officer                                                                   |           |  | (2)       | 
|        | 32 | .2  |             | Section 1350 Certification by our principal financial
    officer                                                                   |           |  | (2)       | 






|  |                                                                              
|- | -----------------------------------------------------------------------------
| | Confidential treatment has been requested for a portion of this
    document.



|    |                                                                                                                                                                              
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Filed as an exhibit to the Registrants Current Report on
    Form 8-K on April 1, 2005 as the exhibit number
    indicated in brackets and incorporated by reference herein.
|   
|(2) | Filed herewith.                                                                                                                                                              

32



---



##### Table of Contents



SIGNATURES






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



| |                            
| | ---------------------------
| | /s/ Everett R. Dobson      
| |                            
| | Everett R. Dobson          
| | Chairman of the Board and  
| | principal executive officer



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

33



---



##### Table of Contents



INDEX TO EXHIBITS


|        |    |     |             |                                                                                                                                     |           |  |           | 
|------- | -- | --- | ----------- | ----------------------------------------------------------------------------------------------------------------------------------- | --------- |  | --------- | 
|Exhibit |    |     |             |                                                                                                                                     | Method of | 
|Numbers |    |     | Description |                                                                                                                                     | Filing    | 
|        |    |     |             |                                                                                                                                     |           | 
|        | 10 | .1  |             | Employment Agreement, dated April 1, 2005, between Dobson
    Communications and Steven P. Dussek                                   |           |  | (1)[10.1] | 
|        | 10 | .2 |             | Equity Interest Purchase Agreement, dated March 14, 2005,
    by and between Global Tower, LLC and Dobson Cellular Systems
    Inc. |           |  | (2)       | 
|        | 10 | .3 |             | Equity Interests Purchase Agreement, dated March 14, 2005,
    by and between Global Tower, LLC and American Cellular               |           |  | (2)       | 
|        | 31 | .1  |             | Rule 13a-14(a) Certification by our principal executive
    officer                                                                 |           |  | (2)       | 
|        | 31 | .2  |             | Rule 13a-14(a) Certification by our principal financial
    officer                                                                 |           |  | (2)       | 
|        | 32 | .1  |             | Section 1350 Certification by our principal executive
    officer                                                                   |           |  | (2)       | 
|        | 32 | .2  |             | Section 1350 Certification by our principal financial
    officer                                                                   |           |  | (2)       | 






|  |                                                                              
|- | -----------------------------------------------------------------------------
| | Confidential treatment has been requested for a portion of this
    document.



|    |                                                                                                                                                                              
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Filed as an exhibit to the Registrants Current Report on
    Form 8-K on April 1, 2005 as the exhibit number
    indicated in brackets and incorporated by reference herein.
|   
|(2) | Filed herewith.                                                                                                                                                              

34