##### 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 June 30, 2005                                                
| 
|o |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
|  |  | For the transition period
    from           to                                             

Commission file number. 000-29225





Dobson Communications Corporation


(Exact name of registrant as specified in its charter)


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

(405) 529-8500


(Registrants telephone number, including area code)





þ o


þ o












---










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
    June 30, 2005 and December 31, 2004                               |  |      | 2  | 
|                                                            |  | Condensed Consolidated Statements of
    Operations for the Three and Six Months Ended June 30, 2005
    and 2004 |  |      | 3  | 
|                                                            |  | Condensed Consolidated Statement of
    Stockholders Equity for the Six Months Ended June 30,
    2005           |  |      | 4  | 
|                                                            |  | Condensed Consolidated Statements of Cash
    Flows for the Six Months Ended June 30, 2005 and 2004               |  |      | 5  | 
|                                                            |  | Notes to Condensed Consolidated Financial
    Statements                                                          |  |      | 6  | 
|2                                                           |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations                         |  |      | 23 | 
|3                                                           |  | Quantitative and Qualitative Disclosures
    about Market Risk                                                    |  |      | 36 | 
|4                                                           |  | Controls and Procedures                                                                                           |  |      | 36 | 
|PART II. OTHER INFORMATION                                 
|1                                                           |  | Legal Proceedings                                                                                                 |  |      | 37 | 
|2                                                           |  | Unregistered Sales of Equity Securities and
    Use of Proceeds                                                   |  |      | 37 | 
|3                                                           |  | Defaults Upon Senior Securities                                                                                   |  |      | 37 | 
|4                                                           |  | Submission of Matters to a Vote of Security
    Holders                                                           |  |      | 37 | 
|5                                                           |  | Other Information                                                                                                 |  |      | 38 | 
|6                                                           |  | Exhibits                                                                                                          |  |      | 38 | 
|Rule 13a-14(a) Certification by Principal Executive Officer
|Rule 13a-14(a) Certification by Principal Financial Officer
|Section 1350 Certification by Principal Executive Officer  
|Section 1350 Certification by Principal Financial Officer  



1



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##### Table of Contents






PART I. FINANCIAL INFORMATION







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

DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES





CONDENSED CONSOLIDATED BALANCE SHEETS


|                                                                                                                               |                                                                                                                                                                                    |                            |                                            |         |                   |               |                |         |               |               | 
|------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------- | ------------------------------------------ | ------- | ----------------- | ------------- | -------------- | ------- | ------------- | ------------- | 
|                                                                                                                               |                                                                                                                                                                                    | June 30, 2005              |                                            |         | December 31, 2004 |              
|                                                                                                                               |                                                                                                                                                                                    |                            |                                            |         |                   |              
|                                                                                                                               |                                                                                                                                                                                    | (Unaudited)                |                                            |         |                  
|ASSETS                                                                                                                        
|CURRENT ASSETS:                                                                                                                |                                                                                                                                                                                    |                            |                                            |         |                   |               |                |        
|Cash and cash equivalents                                                                                                      |                                                                                                                                                                                    | $                          | 247,895,574                                |         |                   | $             | 139,884,107    |        
|Marketable securities                                                                                                          |                                                                                                                                                                                    |                            |                                           |         |                   |               | 39,000,000     |        
|Accounts receivable                                                                                                            |                                                                                                                                                                                    |                            | 124,744,883                                |         |                   |               | 99,941,071     |        
|Inventory                                                                                                                      |                                                                                                                                                                                    |                            | 14,084,548                                 |         |                   |               | 15,610,745     |        
|Prepaid expenses                                                                                                               |                                                                                                                                                                                    |                            | 16,945,696                                 |         |                   |               | 8,509,486      |        
|Deferred tax assets                                                                                                            |                                                                                                                                                                                    |                            | 13,257,000                                 |         |                   |               | 9,202,000      |        
|                                                                                                                               |                                                                                                                                                                                    |                            |                                            |         |                   |              
|                                                                                                                               |                                                                                                                                                                                    | Total current assets       |                                            |         | 416,927,701       |               |                |         | 312,147,409   |              
|                                                                                                                               |                                                                                                                                                                                    |                            |                                            |         |                   |              
|PROPERTY, PLANT AND EQUIPMENT, net (Note 6)                                                                                    |                                                                                                                                                                                    |                            | 501,493,139                                |         |                   |               | 533,744,179    |        
|                                                                                                                               |                                                                                                                                                                                    |                            |                                            |         |                   |              
|OTHER ASSETS:                                                                                                                  |                                                                                                                                                                                    |                            |                                            |         |                   |               |                |        
|Restricted assets                                                                                                              |                                                                                                                                                                                    |                            | 4,475,931                                  |         |                   |               | 10,349,626     |        
|Wireless license acquisition costs                                                                                             |                                                                                                                                                                                    |                            | 1,786,610,363                              |         |                   |               | 1,786,610,363  |        
|Goodwill                                                                                                                       |                                                                                                                                                                                    |                            | 618,617,867                                |         |                   |               | 620,031,217    |        
|Deferred financing costs, net                                                                                                  |                                                                                                                                                                                    |                            | 40,492,867                                 |         |                   |               | 43,025,883     |        
|Customer list, net                                                                                                             |                                                                                                                                                                                    |                            | 75,222,582                                 |         |                   |               | 87,693,583     |        
|Assets held for sale                                                                                                           |                                                                                                                                                                                    |                            | 2,239,577                                  |         |                   |               |               |        
|Other non-current assets                                                                                                       |                                                                                                                                                                                    |                            | 4,588,701                                  |         |                   |               | 4,149,608      |        
|                                                                                                                               |                                                                                                                                                                                    |                            |                                            |         |                   |              
|                                                                                                                               |                                                                                                                                                                                    | Total other assets         |                                            |         | 2,532,247,888     |               |                |         | 2,551,860,280 |              
|                                                                                                                               |                                                                                                                                                                                    |                            |                                            |         |                   |              
|                                                                                                                               |                                                                                                                                                                                    |                            | Total assets                               |         | $                 | 3,450,668,728 |                |         | $             | 3,397,751,868 | 
|                                                                                                                               |                                                                                                                                                                                    |                            |                                            |         |                   |              
|                                                                                                                              
|LIABILITIES AND STOCKHOLDERS EQUITY                                                                                          
|CURRENT LIABILITIES:                                                                                                           |                                                                                                                                                                                    |                            |                                            |         |                   |               |                |        
|Accounts payable                                                                                                               |                                                                                                                                                                                    | $                          | 94,185,316                                 |         |                   | $             | 80,085,348     |        
|Accrued expenses                                                                                                               |                                                                                                                                                                                    |                            | 31,037,815                                 |         |                   |               | 31,438,255     |        
|Accrued interest payable                                                                                                       |                                                                                                                                                                                    |                            | 77,155,150                                 |         |                   |               | 74,471,790     |        
|Deferred revenue and customer deposits                                                                                         |                                                                                                                                                                                    |                            | 29,964,503                                 |         |                   |               | 28,881,603     |        
|Accrued dividends payable                                                                                                      |                                                                                                                                                                                    |                            | 39,145,855                                 |         |                   |               | 19,404,780     |        
|Current portion of obligations under capital leases                                                                            |                                                                                                                                                                                    |                            |                                           |         |                   |               | 305,449        |        
|                                                                                                                               |                                                                                                                                                                                    |                            |                                            |         |                   |              
|                                                                                                                               |                                                                                                                                                                                    | Total current liabilities  |                                            |         | 271,488,639       |               |                |         | 234,587,225   |              
|                                                                                                                               |                                                                                                                                                                                    |                            |                                            |         |                   |              
|OTHER LIABILITIES:                                                                                                             |                                                                                                                                                                                    |                            |                                            |         |                   |               |                |        
|Notes payable (Note 7)                                                                                                         |                                                                                                                                                                                    |                            | 2,456,767,495                              |         |                   |               | 2,456,137,897  |        
|Deferred tax liabilities                                                                                                       |                                                                                                                                                                                    |                            | 276,882,488                                |         |                   |               | 283,744,665    |        
|Mandatorily redeemable preferred stock, net (Note 8)                                                                           |                                                                                                                                                                                    |                            | 237,162,916                                |         |                   |               | 236,094,326    |        
|Minority interest                                                                                                              |                                                                                                                                                                                    |                            | 6,539,058                                  |         |                   |               | 5,422,043      |        
|Deferred gain on disposition of operating assets and other
    non-current liabilities                                         |                                                                                                                                                                                    |                            | 61,426,983                                 |         |                   |               | 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 120,180,649 shares
    issued at June 30, 2005 and 120,081,762 shares issued
    at December 31, 2004 |                            |                                            | 120,181 |                   |               |                | 120,082 |              
|                                                                                                                               | Convertible Class B common stock, $.001 par value,
    70,000,000 shares authorized and 19,418,021 shares
    issued at June 30, 2005 and December 31, 2004                        |                            |                                            | 19,418  |                   |               |                | 19,418  |              
|                                                                                                                               | Convertible Class C common stock, $.001 par value,
    4,226 shares authorized and zero shares issued at
    June 30, 2005 and December 31, 2004                                   |                            |                                            |        |                   |               |                |        |              
|                                                                                                                               | Convertible Class D common stock, $.001 par value,
    33,000 shares authorized and zero shares issued at
    June 30, 2005 and December 31, 2004                                  |                            |                                            |        |                   |               |                |        |              
|Paid-in capital                                                                                                                |                                                                                                                                                                                    |                            | 1,206,574,545                              |         |                   |               | 1,206,362,528  |        
|Accumulated deficit                                                                                                            |                                                                                                                                                                                    |                            | (1,156,165,735                             | )       |                   |               | (1,118,001,904 | )      
|Less Class A common shares held in treasury, at cost, of
    5,496,116 at June 30, 2005 and 5,622,599 at
    December 31, 2004 |                                                                                                                                                                                    |                            | (32,682,859                                | )       |                   |               | (33,431,638    | )      
|                                                                                                                               |                                                                                                                                                                                    |                            |                                            |         |                   |              
|                                                                                                                               |                                                                                                                                                                                    | Total stockholders equity |                                            |         | 17,865,550        |               |                |         | 55,068,486    |              
|                                                                                                                               |                                                                                                                                                                                    |                            |                                            |         |                   |              
|                                                                                                                               |                                                                                                                                                                                    |                            | Total liabilities and stockholders equity |         | $                 | 3,450,668,728 |                |         | $             | 3,397,751,868 | 
|                                                                                                                               |                                                                                                                                                                                    |                            |                                            |         |                   |              



2



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##### Table of Contents



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES





CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


|                                                                                  |                                                                                         |                             |             |             |                           |   |             |             |             |   |             |              |             |   |             |              |             | 
|--------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------- | --------------------------- | ----------- | ----------- | ------------------------- | - | ----------- | ----------- | ----------- | - | ----------- | ------------ | ----------- | - | ----------- | ------------ | ----------- | 
|                                                                                  |                                                                                         | Three Months Ended June 30, |             |             | Six Months Ended June 30, |  
|                                                                                  |                                                                                         |                             |             |             |                           |  
|                                                                                  |                                                                                         | 2005                        |             |             | 2004                      |   |             | 2005        |             |   | 2004        |             
|                                                                                  |                                                                                         |                             |             |             |                           |   |             |             |             |   |             |             
|                                                                                  |                                                                                         | (Unaudited)                 |             |             | (Unaudited)               |  
|OPERATING REVENUE:                                                                |                                                                                         |                             |             |             |                           |   |             |             |             |   |             |              |             |   |             |             
|                                                                                  | Service revenue                                                                         |                             | $           | 215,983,578 |                           |   | $           | 189,288,270 |             |   | $           | 422,065,564  |             |   | $           | 370,987,633  |            
|                                                                                  | Roaming revenue                                                                         |                             |             | 61,148,787  |                           |   |             | 50,606,353  |             |   |             | 114,579,489  |             |   |             | 92,681,694   |            
|                                                                                  | Equipment and other revenue                                                             |                             |             | 20,533,453  |                           |   |             | 12,468,472  |             |   |             | 32,779,248   |             |   |             | 22,485,087   |            
|                                                                                  |                                                                                         |                             |             |             |                           |   |             |             |             |   |             |             
|                                                                                  |                                                                                         | Total operating revenue     |             |             | 297,665,818               |   |             |             | 252,363,095 |   |             |              | 569,424,301 |   |             |              | 486,154,414 | 
|                                                                                  |                                                                                         |                             |             |             |                           |   |             |             |             |   |             |             
|OPERATING EXPENSES:                                                               |                                                                                         |                             |             |             |                           |   |             |             |             |   |             |              |             |   |             |             
|                                                                                  | Cost of service (exclusive of depreciation and amortization
    shown separately below) |                             |             | 68,965,194  |                           |   |             | 61,972,116  |             |   |             | 141,264,165  |             |   |             | 116,157,881  |            
|                                                                                  | Cost of equipment                                                                       |                             |             | 34,255,021  |                           |   |             | 27,870,027  |             |   |             | 64,620,763   |             |   |             | 51,404,604   |            
|                                                                                  | Marketing and selling                                                                   |                             |             | 35,855,292  |                           |   |             | 33,786,256  |             |   |             | 69,949,210   |             |   |             | 62,948,057   |            
|                                                                                  | General and administrative                                                              |                             |             | 49,307,223  |                           |   |             | 43,055,820  |             |   |             | 94,118,699   |             |   |             | 86,831,891   |            
|                                                                                  | Depreciation and amortization                                                           |                             |             | 50,340,084  |                           |   |             | 46,634,823  |             |   |             | 101,910,564  |             |   |             | 92,082,719   |            
|                                                                                  | Gain on disposition of operating assets                                                 |                             |             | (939,138    | )                         |   |             |            |             |   |             | (939,138     | )           |   |             |             |            
|                                                                                  |                                                                                         |                             |             |             |                           |   |             |             |             |   |             |             
|                                                                                  |                                                                                         | Total operating expenses    |             |             | 237,783,676               |   |             |             | 213,319,042 |   |             |              | 470,924,263 |   |             |              | 409,425,152 | 
|                                                                                  |                                                                                         |                             |             |             |                           |   |             |             |             |   |             |             
|OPERATING INCOME                                                                  |                                                                                         |                             | 59,882,142  |             |                           |   | 39,044,053  |             |             |   | 98,500,038  |              |             |   | 76,729,262  |             
|                                                                                  |                                                                                         |                             |             |             |                           |   |             |             |             |   |             |             
|OTHER (EXPENSE) INCOME:                                                           |                                                                                         |                             |             |             |                           |   |             |             |             |   |             |              |             |   |             |             
|                                                                                  | Interest expense                                                                        |                             |             | (61,258,480 | )                         |   |             | (52,782,507 | )           |   |             | (122,000,419 | )           |   |             | (107,020,542 | )          
|                                                                                  | Gain from extinguishment of debt (Note 7)                                               |                             |             |            |                           |   |             |            |             |   |             |             |             |   |             | 5,738,861    |            
|                                                                                  | Gain on redemption and repurchases of mandatorily redeemable
    preferred stock        |                             |             |            |                           |   |             | 5,068,518   |             |   |             |             |             |   |             | 5,068,518    |            
|                                                                                  | Dividends on mandatorily redeemable preferred stock (Note 8)                            |                             |             | (7,996,348  | )                         |   |             | (8,289,370  | )           |   |             | (15,927,415  | )           |   |             | (16,907,380  | )          
|                                                                                  | Other income (expense), net                                                             |                             |             | 744,206     |                           |   |             | 441,135     |             |   |             | (21,790      | )           |   |             | 1,718,560    |            
|                                                                                  |                                                                                         |                             |             |             |                           |   |             |             |             |   |             |             
|LOSS BEFORE MINORITY INTERESTS IN INCOME OF SUBSIDIARIES AND
    INCOME TAXES     |                                                                                         |                             | (8,628,480  | )           |                           |   | (16,518,171 | )           |             |   | (39,449,586 | )            |             |   | (34,672,721 | )           
|MINORITY INTERESTS IN INCOME OF SUBSIDIARIES                                      |                                                                                         |                             | (2,646,034  | )           |                           |   | (1,058,395  | )           |             |   | (4,476,032  | )            |             |   | (2,002,402  | )           
|                                                                                  |                                                                                         |                             |             |             |                           |   |             |             |             |   |             |             
|LOSS BEFORE INCOME TAXES                                                          |                                                                                         |                             | (11,274,514 | )           |                           |   | (17,576,566 | )           |             |   | (43,925,618 | )            |             |   | (36,675,123 | )           
|                                                                                  | Income tax benefit                                                                      |                             |             | 1,245,702   |                           |   |             | 3,529,136   |             |   |             | 10,639,317   |             |   |             | 7,502,950    |            
|                                                                                  |                                                                                         |                             |             |             |                           |   |             |             |             |   |             |             
|LOSS FROM CONTINUING OPERATIONS                                                   |                                                                                         |                             | (10,028,812 | )           |                           |   | (14,047,430 | )           |             |   | (33,286,301 | )            |             |   | (29,172,173 | )           
|DISCONTINUED OPERATIONS: (Note 4)                                                 |                                                                                         |                             |             |             |                           |   |             |             |             |   |             |              |             |   |             |             
|                                                                                  | Income from discontinued operations, net of income tax expense
    of $271,327          |                             |             |            |                           |   |             |            |             |   |             |             |             |   |             | 442,692      |            
|                                                                                  |                                                                                         |                             |             |             |                           |   |             |             |             |   |             |             
|NET LOSS                                                                          |                                                                                         |                             | (10,028,812 | )           |                           |   | (14,047,430 | )           |             |   | (33,286,301 | )            |             |   | (28,729,481 | )           
|                                                                                  | Dividends on preferred stock                                                            |                             |             | (2,144,373  | )                         |   |             | (1,858,456  | )           |   |             | (4,288,746   | )           |   |             | (3,716,913   | )          
|                                                                                  |                                                                                         |                             |             |             |                           |   |             |             |             |   |             |             
|NET LOSS APPLICABLE TO COMMON STOCKHOLDERS                                        |                                                                                         | $                           | (12,173,185 | )           |                           | $ | (15,905,886 | )           |             | $ | (37,575,047 | )            |             | $ | (32,446,394 | )           
|                                                                                  |                                                                                         |                             |             |             |                           |   |             |             |             |   |             |             
|BASIC AND DILUTED NET LOSS APPLICABLE TO COMMON STOCKHOLDERS PER
    COMMON SHARE |                                                                                         | $                           | (0.09       | )           |                           | $ | (0.12       | )           |             | $ | (0.28       | )            |             | $ | (0.24       | )           
|                                                                                  |                                                                                         |                             |             |             |                           |   |             |             |             |   |             |             
|BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING                      |                                                                                         |                             | 134,011,175 |             |                           |   | 133,772,746 |             |             |   | 133,948,417 |              |             |   | 133,749,934 |             
|                                                                                  |                                                                                         |                             |             |             |                           |   |             |             |             |   |             |             



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##### Table of Contents



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES





CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS
EQUITY


For the Six Months Ended June 30, 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                   |  |                      |            |  |              |   |        |        |  |             |           |  |           |                 |       |               |         |   |              |      |  |   | (33,286,301    | ) |  |   |            |   |  |   | (33,286,301 | )
|Preferred stock dividends  |  |                      |            |  |              |   |        |        |  |             |           |  |           |                 |       |               |         |   |              |      |  |   | (4,288,746     | ) |  |   |            |   |  |   | (4,288,746  | )
|Issuance of common stock   |  |                      | 98,887      |  |              |   | 99      |        |  |             |           |  |           |                 |       |               |         |   | 212,017       |      |  |   |               |   |  |   |            |   |  |   | 212,116     |  
|Issuance of treasury stock |  |                      |            |  |              |   |        |        |  |             |           |  |           |                 |       |               |         |   |              |      |  |   | (588,784       | ) |  |   | 748,779     |   |  |   | 159,995     |  
|                           |  |                      |             |  |              |   |         |        |  |             |            |  |           |                 |        |               |         |   |               |      |  |   |                |  
|JUNE 30, 2005              |  |                      | 120,180,649 |  |              | $ | 120,181 |        |  |             | 19,418,021 |  |           | $               | 19,418 |               |         | $ | 1,206,574,545 |      |  | $ | (1,156,165,735 | ) |  | $ | (32,682,859 | ) |  | $ | 17,865,550  |  
|                           |  |                      |             |  |              |   |         |        |  |             |            |  |           |                 |        |               |         |   |               |      |  |   |                |  



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DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES





CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                                                                                                                |                                                                                  |                                                     |             |             |            |   |             |             |             |  
|----------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------- | --------------------------------------------------- | ----------- | ----------- | ---------- | - | ----------- | ----------- | ----------- | -
|                                                                                                                                                |                                                                                  | Six Months Ended June 30,                           |            
|                                                                                                                                                |                                                                                  |                                                     |            
|                                                                                                                                                |                                                                                  | 2005                                                |             |             | 2004       |  
|                                                                                                                                                |                                                                                  |                                                     |             |             |            |  
|                                                                                                                                                |                                                                                  | (Unaudited)                                         |            
|CASH FLOWS FROM OPERATING ACTIVITIES:                                                                                                           |                                                                                  |                                                     |             |             |            |   |             |            
|Loss from continuing operations                                                                                                                 |                                                                                  | $                                                   | (33,286,301 | )           |            | $ | (29,172,173 | )          
|Adjustments to reconcile loss from continuing operations to net
    cash provided by operating activities, net of effects of
    acquisitions  |                                                                                  |                                                     |             |             |            |   |             |            
|                                                                                                                                                | Depreciation and amortization                                                    |                                                     |             | 101,910,564 |            |   |             | 92,082,719  |            
|                                                                                                                                                | Amortization of bond discount and deferred financing costs                       |                                                     |             | 3,639,161   |            |   |             | 3,988,259   |            
|                                                                                                                                                | Deferred income taxes                                                            |                                                     |             | (10,917,177 | )          |   |             | (8,368,111  | )          
|                                                                                                                                                | Non-cash mandatorily redeemable preferred stock dividends                        |                                                     |             | 15,927,415  |            |   |             | 6,597,889   |            
|                                                                                                                                                | Gain on redemption and repurchases of mandatorily redeemable
    preferred stock |                                                     |             |            |            |   |             | (5,068,518  | )          
|                                                                                                                                                | Gain on disposition of operating assets                                          |                                                     |             | (939,138    | )          |   |             |            |            
|                                                                                                                                                | Other operating activities                                                       |                                                     |             | 4,505,386   |            |   |             | 2,500,504   |            
|Changes in current assets and liabilities                                                                                                      |                                                                                  |                                                     |             |             |            |   |             |            
|                                                                                                                                                | Accounts receivable                                                              |                                                     |             | (24,803,812 | )          |   |             | 5,678,302   |            
|                                                                                                                                                | Inventory                                                                        |                                                     |             | 1,526,197   |            |   |             | (6,188,742  | )          
|                                                                                                                                                | Prepaid expenses and other                                                       |                                                     |             | (8,500,527  | )          |   |             | (7,012,071  | )          
|                                                                                                                                                | Accounts payable                                                                 |                                                     |             | 14,099,968  |            |   |             | (20,466,225 | )          
|                                                                                                                                                | Accrued expenses                                                                 |                                                     |             | 2,282,920   |            |   |             | (2,158,537  | )          
|                                                                                                                                                | Deferred revenue and customer deposits                                           |                                                     |             | 1,082,900   |            |   |             | (495,020    | )          
|                                                                                                                                                |                                                                                  |                                                     |             |             |            |  
|                                                                                                                                                |                                                                                  | Net cash provided by operating activities           |             |             | 66,527,556 |   |             |             | 31,918,276  |  
|                                                                                                                                                |                                                                                  |                                                     |             |             |            |  
|CASH FLOWS FROM INVESTING ACTIVITIES:                                                                                                           |                                                                                  |                                                     |             |             |            |   |             |            
|                                                                                                                                                | Capital expenditures                                                             |                                                     |             | (76,303,376 | )          |   |             | (88,882,962 | )          
|                                                                                                                                                | Purchase of wireless licenses and properties                                     |                                                     |             |            |            |   |             | (29,416,260 | )          
|                                                                                                                                                | Proceeds from the sale of assets                                                 |                                                     |             | 77,016,906  |            |   |             |            |            
|                                                                                                                                                | 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  |            |   |             | 56,700,000  |            
|                                                                                                                                                | Other investing activities                                                       |                                                     |             | (1,297,682  | )          |   |             | 869,368     |            
|                                                                                                                                                |                                                                                  |                                                     |             |             |            |  
|                                                                                                                                                |                                                                                  | Net cash provided by (used in) investing activities |             |             | 38,415,848 |   |             |             | (52,397,114 | )
|                                                                                                                                                |                                                                                  |                                                     |             |             |            |  
|CASH FLOWS FROM FINANCING ACTIVITIES:                                                                                                           |                                                                                  |                                                     |             |             |            |   |             |            
|                                                                                                                                                | Proceeds from long-term debt                                                     |                                                     |             |            |            |   |             | 28,000,000  |            
|                                                                                                                                                | Repayments and purchases of long-term debt                                       |                                                     |             |            |            |   |             | (63,495,000 | )          
|                                                                                                                                                | Preferred stock dividends paid                                                   |                                                     |             |            |            |   |             | (3,676,068  | )          
|                                                                                                                                                | Distributions to minority interest holders                                       |                                                     |             | (3,359,017  | )          |   |             | (2,895,900  | )          
|                                                                                                                                                | Redemption and repurchases of exchangeable preferred stock                       |                                                     |             |            |            |   |             | (12,835,750 | )          
|                                                                                                                                                | Maturities of restricted investments                                             |                                                     |             | 5,960,012   |            |   |             |            |            
|                                                                                                                                                | Other financing activities                                                       |                                                     |             | 467,068     |            |   |             | (1,533,107  | )          
|                                                                                                                                                |                                                                                  |                                                     |             |             |            |  
|                                                                                                                                                |                                                                                  | Net cash provided by (used in) financing activities |             |             | 3,068,063  |   |             |             | (56,435,825 | )
|                                                                                                                                                |                                                                                  |                                                     |             |             |            |  
|NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                                                                            |                                                                                  |                                                     | 108,011,467 |             |            |   | (76,914,663 | )          
|CASH AND CASH EQUIVALENTS, beginning of period                                                                                                  |                                                                                  |                                                     | 139,884,107 |             |            |   | 151,539,339 |            
|                                                                                                                                                |                                                                                  |                                                     |             |             |            |  
|CASH AND CASH EQUIVALENTS, end of period                                                                                                        |                                                                                  | $                                                   | 247,895,574 |             |            | $ | 74,624,676  |            
|                                                                                                                                                |                                                                                  |                                                     |             |             |            |  
|SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:                                                                                              |                                                                                  |                                                     |             |             |            |   |             |            
|Cash paid for                                                                                                                                  |                                                                                  |                                                     |             |             |            |   |             |            
|                                                                                                                                                | Interest                                                                         |                                                     | $           | 115,342,096 |            |   | $           | 102,313,006 |            
|                                                                                                                                                | Income taxes                                                                     |                                                     | $           | 285,050     |            |   | $           | 1,788,121   |            
|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 | )          



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DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES





NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Unaudited)








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







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









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



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DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                   |                                                |                                                |   |         |                  |  |   |         |   |  |      |         |   |  |   |         |  
|---------------------------------------------------------------------------------- | ---------------------------------------------- | ---------------------------------------------- | - | ------- | ---------------- |  | - | ------- | - |  | ---- | ------- | - |  | - | ------- | -
|                                                                                   |                                                | Three Months Ended                             |   |         | Six Months Ended | 
|                                                                                   |                                                | June 30,                                       |   |         | June 30,         | 
|                                                                                   |                                                |                                                |   |         |                  | 
|                                                                                   |                                                | 2005                                           |   |         | 2004             |  |   | 2005    |   |  | 2004 |        
|                                                                                   |                                                |                                                |   |         |                  |  |   |         |   |  |      |        
|                                                                                   |                                                | ($ in thousands, except for per share amounts) |  
|Net loss applicable to common stockholders:                                        |                                                |                                                |   |         |                  |  |   |         |   |  |      |         |   |  |   |        
|                                                                                   | As reported                                    |                                                | $ | (12,173 | )                |  | $ | (15,906 | ) |  | $    | (37,575 | ) |  | $ | (32,446 | )
|                                                                                   | Pro forma stock-based compensation, net of tax |                                                |   | (1,216  | )                |  |   | (1,121  | ) |  |      | (2,276  | ) |  |   | (4,853  | )
|                                                                                   |                                                |                                                |   |         |                  |  |   |         |   |  |      |        
|                                                                                   | Pro forma                                      |                                                | $ | (13,389 | )                |  | $ | (17,027 | ) |  | $    | (39,851 | ) |  | $ | (37,299 | )
|                                                                                   |                                                |                                                |   |         |                  |  |   |         |   |  |      |        
|Basic and diluted net loss applicable to common stockholders per
    common share: |                                                |                                                |   |         |                  |  |   |         |   |  |      |         |   |  |   |        
|                                                                                   | As reported                                    |                                                | $ | (0.09   | )                |  | $ | (0.12   | ) |  | $    | (0.28   | ) |  | $ | (0.24   | )
|                                                                                   | Pro forma                                      |                                                | $ | (0.10   | )                |  | $ | (0.13   | ) |  | $    | (0.30   | ) |  | $ | (0.28   | )



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





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



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





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DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








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



|                                    |  |                  |           |   |                   |   |          |  
|----------------------------------- |  | ---------------- | --------- | - | ----------------- | - | -------- | -
|                                    |  | June 30, 2005    |           |   | December 31, 2004 |  
|                                    |  |                  |           |   |                   |  
|                                    |  | ($ in thousands) |          
|Gross property, plant and equipment |  | $                | 1,020,187 |   |                   | $ | 985,005  |  
|Accumulated depreciation            |  |                  | (518,694  | ) |                   |   | (451,261 | )
|                                    |  |                  |           |   |                   |  
|Property, plant and equipment, net  |  | $                | 501,493   |   |                   | $ | 533,744  |  
|                                    |  |                  |           |   |                   |  

Tower Sale and Lease-Back




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DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




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



|                                                                                                                         |                     |                  |         |           |                   |   |         |           | 
|------------------------------------------------------------------------------------------------------------------------ | ------------------- | ---------------- | ------- | --------- | ----------------- | - | ------- | --------- | 
|                                                                                                                         |                     | June 30, 2005    |         |           | December 31, 2004 |  
|                                                                                                                         |                     |                  |         |           |                   |  
|                                                                                                                         |                     | ($ in thousands) |        
|8.875% DCC senior notes                                                                                                  |                     | $                | 419,681 |           |                   | $ | 419,681 |          
|10.875% DCC senior notes, net of discount of $1.2 million
    at June 30, 2005 and $1.3 million at December 31,
    2004 |                     |                  | 297,803 |           |                   |   | 297,683 |          
|8.375% Dobson Cellular Systems, Inc. senior notes                                                                        |                     |                  | 250,000 |           |                   |   | 250,000 |          
|Dobson Cellular Systems, Inc. floating rate senior notes                                                                 |                     |                  | 250,000 |           |                   |   | 250,000 |          
|9.875% Dobson Cellular Systems, Inc. senior notes                                                                        |                     |                  | 325,000 |           |                   |   | 325,000 |          
|10% American Cellular Corporation senior notes                                                                           |                     |                  | 900,000 |           |                   |   | 900,000 |          
|Other notes payable, net                                                                                                 |                     |                  | 14,283  |           |                   |   | 13,774  |          
|                                                                                                                         |                     |                  |         |           |                   |  
|                                                                                                                         | Total notes payable |                  | $       | 2,456,767 |                   |   | $       | 2,456,138 | 
|                                                                                                                         |                     |                  |         |           |                   |  





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



|                    |  |            |           |           |                |  |           |                |  |  |           |  |  |           |             |            |  |                   |            |   |          |             |  |  |               |  |  |           
|------------------- |  | ---------- | --------- | --------- | -------------- |  | --------- | -------------- |  |  | --------- |  |  | --------- | ----------- | ---------- |  | ----------------- | ---------- | - | -------- | ----------- |  |  | ------------- |  |  | ----------
|                    |  |            |           | Number of |                |  | Number of |                |  |  |           |  |  |           |             |            |  | Other            
|                    |  |            |           | Shares    |                |  | Shares    |                |  |  |           |  |  |           |             |            |  | Features,        
|                    |  | Number of  |           |           | Outstanding at |  |           | Outstanding at |  |  |           |  |  |           | Liquidation |            |  | Mandatory         |            |   | Rights, 
|                    |  | Shares     |           |           | June 30,       |  |           | 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        |            |  | 7% Cumulative     |            | $ | 178.571  |             |  |  | Aug. 18, 2016 |  |  | Non-voting
|Other               |  |            | 3,619,522 |           |                |  |          |                |  |  |          |  |  | $         | 1.00        |            |  |                  |            |   |         |             |  |  |              |  |  |          
|                    |  |            |           |           |                |  |           |                |  |  |           |  |  |           |             |            |  |                   |            |   |          |            
|                    |  |            | 6,000,000 |           |                |  | 925,280   |                |  |  | 925,280   |  |  |           |             |            |  |                   |            |   |          |             |  |  |               |  |  |           
|                    |  |            |           |           |                |  |           |                |  |  |           |  |  |           |             |            |  |                   |            |   |          |            

Exchange Offer




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DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






Dividends on Preferred Stock








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DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






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DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




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



|                                           |                                                                                    |                                                 |         |             |                           |   |         |             |       |   |         |             |       |   |         |             |       |  
|------------------------------------------ | ---------------------------------------------------------------------------------- | ----------------------------------------------- | ------- | ----------- | ------------------------- | - | ------- | ----------- | ----- | - | ------- | ----------- | ----- | - | ------- | ----------- | ----- | -
|                                           |                                                                                    | Three Months Ended June 30,                     |         |             | Six Months Ended June 30, |  
|                                           |                                                                                    |                                                 |         |             |                           |  
|                                           |                                                                                    | 2005                                            |         |             | 2004                      |   |         | 2005        |       |   | 2004    |            
|                                           |                                                                                    |                                                 |         |             |                           |   |         |             |       |   |         |            
|                                           |                                                                                    | ($ in thousands, except per share data)         |        
|Net loss applicable to common stockholders |                                                                                    | $                                               | (12,173 | )           |                           | $ | (15,906 | )           |       | $ | (37,575 | )           |       | $ | (32,446 | )          
|                                           | Basic and diluted net loss applicable to common stockholders per
    common share: |                                                 |         |             |                           |   |         |             |       |   |         |             |       |   |         |             |      
|                                           |                                                                                    | Continuing operations:                          |         |             |                           |   |         |             |       |   |         |             |       |   |         |             |       |  
|                                           |                                                                                    | Loss from continuing operations                 |         | $           | (0.07                     | ) |         | $           | (0.11 | ) |         | $           | (0.25 | ) |         | $           | (0.22 | )
|                                           |                                                                                    | Income from discontinued operations             |         |             |                          |   |         |             |      |   |         |             |      |   |         |             | 0.01  |  
|                                           |                                                                                    | Dividends on and repurchases of preferred stock |         |             | (0.02                     | ) |         |             | (0.01 | ) |         |             | (0.03 | ) |         |             | (0.03 | )
|                                           |                                                                                    |                                                 |         |             |                           |   |         |             |       |   |         |            
|                                           | Basic and diluted net loss applicable to common stockholders per
    common share  |                                                 | $       | (0.09       | )                         |   | $       | (0.12       | )     |   | $       | (0.28       | )     |   | $       | (0.24       | )    
|                                           |                                                                                    |                                                 |         |             |                           |   |         |             |       |   |         |            
|                                           | Basic and diluted weighted average common shares outstanding                       |                                                 |         | 134,011,175 |                           |   |         | 133,772,746 |       |   |         | 133,948,417 |       |   |         | 133,749,934 |      
|                                           |                                                                                    |                                                 |         |             |                           |   |         |             |       |   |         |            

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DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




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

Commitments




Contingencies










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







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NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




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DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




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



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DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATING BALANCE SHEET


As of June 30, 2005


|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |           |            |            |            |            |         |           |           |           | 
|---------------------------------------------- | -------------------------------------------------------------------------------------- | ------------------------- | ---------------------------------------------------- | --------- | --------- | --------- | ------- | ------------ | --------- | --------- | ------ | ------ | ------ | ------------ | --------- | --------- | ------------ | --------- | ---------- | ---------- | ---------- | ---------- | ------- | --------- | --------- | --------- | 
|                                               |                                                                                        |                           |                                                      |           |           | Non-      |         |              |           |           |        |        |       
|                                               |                                                                                        | Dobson                    |                                                      |           | American  |           |         | Guarantor    |           |           |        |        |        |              |          
|                                               |                                                                                        | Cellular                  |                                                      |           | Cellular  |           |         | Subsidiaries |           |           | Parent |        |        | Eliminations |           |           | Consolidated |          
|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                               |                                                                                        | ($ in thousands)          |                                                     
|                                               |                                                                                        | (Unaudited)               |                                                     
|ASSETS                                        
|CURRENT ASSETS:                                |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |           |            |            |            |            |         |          
|                                               | Cash and cash equivalents                                                              |                           | $                                                    | 86,211    |           |           | $       | 85,997       |           |           | $      | 73,002 |        |              | $         | 2,686     |              |           | $          |           |            |            | $       | 247,896   |          
|                                               | Accounts receivable                                                                    |                           |                                                      | 77,881    |           |           |         | 46,864       |           |           |        |       |        |              |           |          |              |           |            |           |            |            |         | 124,745   |          
|                                               | Inventory                                                                              |                           |                                                      | 9,683     |           |           |         | 4,401        |           |           |        |       |        |              |           |          |              |           |            |           |            |            |         | 14,084    |          
|                                               | Prepaid expenses and other                                                             |                           |                                                      | 22,186    |           |           |         | 7,997        |           |           |        | 20     |        |              |           |          |              |           |            |           |            |            |         | 30,203    |          
|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                               |                                                                                        | Total current assets      |                                                      |           | 195,961   |           |         |              | 145,259   |           |        |        | 73,022 |              |           |           | 2,686        |           |            |            |           |            |         |           | 416,928   |          
|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|PROPERTY, PLANT AND EQUIPMENT, net             |                                                                                        |                           | 339,135                                              |           |           |           | 162,358 |              |           |           |       |        |        |              |          |           |              |           |           |            |            |            | 501,493 |          
|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|OTHER ASSETS:                                  |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |           |            |            |            |            |         |          
|                                               | Net intercompany (payable)receivable                                                   |                           |                                                      | (1,635    | )         |           |         | (9,122       | )         |           |        | 3,404  |        |              |           | 774,519   |              |           |            | (767,166   | )          |            |         |          |          
|                                               | Restricted assets                                                                      |                           |                                                      | 4,454     |           |           |         | 22           |           |           |        |       |        |              |           |          |              |           |            |           |            |            |         | 4,476     |          
|                                               | Wireless license acquisition costs                                                     |                           |                                                      | 1,103,353 |           |           |         | 669,169      |           |           |        | 9,676  |        |              |           | 4,412     |              |           |            |           |            |            |         | 1,786,610 |          
|                                               | Goodwill                                                                               |                           |                                                      | 45,362    |           |           |         | 572,113      |           |           |        |       |        |              |           | 1,143     |              |           |            |           |            |            |         | 618,618   |          
|                                               | Deferred financing costs, net                                                          |                           |                                                      | 14,255    |           |           |         | 14,609       |           |           |        |       |        |              |           | 11,629    |              |           |            |           |            |            |         | 40,493    |          
|                                               | Customer list, net                                                                     |                           |                                                      | 23,970    |           |           |         | 51,253       |           |           |        |       |        |              |           |          |              |           |            |           |            |            |         | 75,223    |          
|                                               | Assets held for sale                                                                   |                           |                                                      | 2,143     |           |           |         | 97           |           |           |        |       |        |              |           |          |              |           |            |           |            |            |         | 2,240     |          
|                                               | Other non-current assets                                                               |                           |                                                      | 27,897    |           |           |         | 681          |           |           |        | 10     |        |              |           | 1,624,373 |              |           |            | (1,648,373 | )          |            |         | 4,588     |          
|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                               |                                                                                        | Total other assets        |                                                      |           | 1,219,799 |           |         |              | 1,298,822 |           |        |        | 13,090 |              |           |           | 2,416,076    |           |            |            | (2,415,539 | )          |         |           | 2,532,248 |          
|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                               |                                                                                        |                           | Total assets                                         |           | $         | 1,754,895 |         |              | $         | 1,606,439 |        |        | $      | 86,112       |           |           | $            | 2,418,762 |            |            | $          | (2,415,539 | )       |           | $         | 3,450,669 | 
|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                              
|LIABILITIES AND STOCKHOLDERS (DEFICIT) EQUITY
|CURRENT LIABILITIES:                           |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |           |            |            |            |            |         |          
|                                               | Accounts payable                                                                       |                           | $                                                    | 76,812    |           |           | $       | 17,373       |           |           | $      |       |        |              | $         |          |              |           | $          |           |            |            | $       | 94,185    |          
|                                               | Accrued expenses                                                                       |                           |                                                      | 20,663    |           |           |         | 10,551       |           |           |        | (172   | )      |              |           | (4        | )            |           |            |           |            |            |         | 31,038    |          
|                                               | Accrued interest payable                                                               |                           |                                                      | 12,157    |           |           |         | 37,863       |           |           |        |       |        |              |           | 27,135    |              |           |            |           |            |            |         | 77,155    |          
|                                               | Deferred revenue and customer deposits                                                 |                           |                                                      | 16,830    |           |           |         | 13,135       |           |           |        |       |        |              |           |          |              |           |            |           |            |            |         | 29,965    |          
|                                               | Accrued dividends payable                                                              |                           |                                                      |          |           |           |         |             |           |           |        |       |        |              |           | 39,146    |              |           |            |           |            |            |         | 39,146    |          
|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                               |                                                                                        | Total current liabilities |                                                      |           | 126,462   |           |         |              | 78,922    |           |        |        | (172   | )            |           |           | 66,277       |           |            |            |           |            |         |           | 271,489   |          
|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|OTHER LIABILITIES:                             |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |           |            |            |            |            |         |          
|                                               | Notes payable                                                                          |                           |                                                      | 1,592,166 |           |           |         | 914,283      |           |           |        |       |        |              |           | 717,484   |              |           |            | (767,166   | )          |            |         | 2,456,767 |          
|                                               | Deferred tax liabilities                                                               |                           |                                                      | 190,349   |           |           |         | 158,319      |           |           |        | 806    |        |              |           | (72,592   | )            |           |            |           |            |            |         | 276,882   |          
|                                               | Mandatorily redeemable preferred stock, net                                            |                           |                                                      |          |           |           |         |             |           |           |        |       |        |              |           | 237,163   |              |           |            |           |            |            |         | 237,163   |          
|                                               | Deferred gain on disposition of operating assets and other
    non-current liabilities |                           |                                                      | 37,862    |           |           |         | 30,104       |           |           |        |       |        |              |           |          |              |           |            |           |            |            |         | 67,966    |          
|SERIES F CONVERTIBLE PREFERRED STOCK           |                                                                                        |                           |                                                     |           |           |           |        |              |           |           |       |        |        |              | 122,536   |           |              |           |           |            |            |            | 122,536 |          
|STOCKHOLDERS
    (DEFICIT) EQUITY             |                                                                                        |                           | (191,944                                             | )         |           |           | 424,811 |              |           |           | 85,478 |        |        |              | 1,347,894 |           |              |           | (1,648,373 | )          |            |            | 17,866  |          
|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          
|                                               |                                                                                        |                           | Total liabilities and stockholders (deficit) equity |           | $         | 1,754,895 |         |              | $         | 1,606,439 |        |        | $      | 86,112       |           |           | $            | 2,418,762 |            |            | $          | (2,415,539 | )       |           | $         | 3,450,669 | 
|                                               |                                                                                        |                           |                                                      |           |           |           |         |              |           |           |        |        |        |              |           |           |              |          

16



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##### Table of Contents



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATING BALANCE SHEET


As of December 31, 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   |          
|                                               | Deferred gain on disposition of operating assets and other
    non-current liabilities |                           |                                                      | 5,423     |           |           |         | 4,161         |           |           |        |       |        |              |           |          |              |           |            |           |            |            |         | 9,584     |          
|SERIES F CONVERTIBLE PREFERRED STOCK           |                                                                                        |                           |                                                     |           |           |           |        |               |           |           |       |        |        |              | 122,536   |           |              |           |           |            |            |            | 122,536 |          
|STOCKHOLDERS (DEFICIT) EQUITY                 |                                                                                        |                           | (180,511                                             | )         |           |           | 429,598 |               |           |           | 60,435 |        |        |              | 1,369,919 |           |              |           | (1,624,373 | )          |            |            | 55,068  |          
|                                               |                                                                                        |                           |                                                      |           |           |           |         |               |           |           |        |        |        |              |           |           |              |          
|                                               |                                                                                        |                           | Total liabilities and stockholders (deficit) equity |           | $         | 1,726,801 |         |               | $         | 1,582,096 |        |        | $      | 61,102       |           |           | $            | 2,419,292 |            |            | $          | (2,391,539 | )       |           | $         | 3,397,752 | 
|                                               |                                                                                        |                           |                                                      |           |           |           |         |               |           |           |        |        |        |              |           |           |              |          

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##### Table of Contents



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


For the Six Months Ended June 30, 2005


|                                                                                       |                                                     |                                                                                         |         |         |          |   |        |               |         |   |        |      |    |              |         |         |              |   |   |         |        |   |         |          |         | 
|-------------------------------------------------------------------------------------- | --------------------------------------------------- | --------------------------------------------------------------------------------------- | ------- | ------- | -------- | - | ------ | ------------- | ------- | - | ------ | ---- | -- | ------------ | ------- | ------- | ------------ | - | - | ------- | ------ | - | ------- | -------- | ------- | 
|                                                                                       |                                                     | Dobson                                                                                  |         |         | American |   |        | Non-Guarantor |         |   |        |      |    |              |        
|                                                                                       |                                                     | Cellular                                                                                |         |         | Cellular |   |        | Subsidiaries  |         |   | Parent |      |    | Eliminations |         |         | Consolidated |  
|                                                                                       |                                                     |                                                                                         |         |         |          |   |        |               |         |   |        |      |    |              |         |         |              |  
|                                                                                       |                                                     | ($ in thousands)                                                                        |        
|                                                                                       |                                                     | (Unaudited)                                                                             |        
|OPERATING REVENUE:                                                                     |                                                     |                                                                                         |         |         |          |   |        |               |         |   |        |      |    |              |         |         |              |   |   |         |        |   |         |         
|                                                                                       | Service revenue                                     |                                                                                         | $       | 244,658 |          |   | $      | 177,408       |         |   | $      |     |    |              | $       |        |              |   | $ |        |        |   | $       | 422,066  |        
|                                                                                       | Roaming revenue                                     |                                                                                         |         | 65,896  |          |   |        | 48,683        |         |   |        |     |    |              |         |        |              |   |   |        |        |   |         | 114,579  |        
|                                                                                       | Equipment and other revenue                         |                                                                                         |         | 27,856  |          |   |        | 10,947        |         |   |        |     |    |              |         |        |              |   |   | (6,024  | )      |   |         | 32,779   |        
|                                                                                       |                                                     |                                                                                         |         |         |          |   |        |               |         |   |        |      |    |              |         |         |              |  
|                                                                                       |                                                     | Total operating revenue                                                                 |         |         | 338,410  |   |        |               | 237,038 |   |        |      |   |              |         |         |             |   |   |         | (6,024 | ) |         |          | 569,424 | 
|                                                                                       |                                                     |                                                                                         |         |         |          |   |        |               |         |   |        |      |    |              |         |         |              |  
|OPERATING EXPENSES:                                                                    |                                                     |                                                                                         |         |         |          |   |        |               |         |   |        |      |    |              |         |         |              |   |   |         |        |   |         |         
|                                                                                       |                                                     | Cost of service (exclusive of depreciation and amortization
    shown separately below) |         |         | 87,352   |   |        |               | 56,509  |   |        |      |   |              |         |         |             |   |   |         | (2,597 | ) |         |          | 141,264 | 
|                                                                                       | Cost of equipment                                   |                                                                                         |         | 40,194  |          |   |        | 24,427        |         |   |        |     |    |              |         |        |              |   |   |        |        |   |         | 64,621   |        
|                                                                                       | Marketing and selling                               |                                                                                         |         | 40,682  |          |   |        | 29,267        |         |   |        |     |    |              |         |        |              |   |   |        |        |   |         | 69,949   |        
|                                                                                       | General and administrative                          |                                                                                         |         | 53,117  |          |   |        | 44,419        |         |   |        | 10   |    |              |         |        |              |   |   | (3,427  | )      |   |         | 94,119   |        
|                                                                                       | Depreciation and amortization                       |                                                                                         |         | 59,494  |          |   |        | 42,416        |         |   |        |     |    |              |         |        |              |   |   |        |        |   |         | 101,910  |        
|                                                                                       | Gain on disposition of operating assets             |                                                                                         |         |        |          |   |        | (939          | )       |   |        |     |    |              |         |        |              |   |   |        |        |   |         | (939     | )      
|                                                                                       |                                                     |                                                                                         |         |         |          |   |        |               |         |   |        |      |    |              |         |         |              |  
|                                                                                       |                                                     | Total operating expenses                                                                |         |         | 280,839  |   |        |               | 196,099 |   |        |      | 10 |              |         |         |             |   |   |         | (6,024 | ) |         |          | 470,924 | 
|                                                                                       |                                                     |                                                                                         |         |         |          |   |        |               |         |   |        |      |    |              |         |         |              |  
|OPERATING INCOME (LOSS)                                                                |                                                     |                                                                                         | 57,571  |         |          |   | 40,939 |               |         |   | (10    | )    |    |              |        |         |              |   |  |         |        |   | 98,500  |         
|                                                                                       |                                                     |                                                                                         |         |         |          |   |        |               |         |   |        |      |    |              |         |         |              |  
|OTHER (EXPENSE) INCOME:                                                                |                                                     |                                                                                         |         |         |          |   |        |               |         |   |        |      |    |              |         |         |              |   |   |         |        |   |         |         
|                                                                                       | Interest (expense) income                           |                                                                                         |         | (74,458 | )        |   |        | (47,562       | )       |   |        |     |    |              |         | (37,206 | )            |   |   | 37,226  |        |   |         | (122,000 | )      
|                                                                                       | Dividends on mandatorily redeemable preferred stock |                                                                                         |         |        |          |   |        |              |         |   |        |     |    |              |         | (15,927 | )            |   |   |        |        |   |         | (15,927  | )      
|                                                                                       | Other income (expense), net                         |                                                                                         |         | 2,921   |          |   |        | (1,098        | )       |   |        | 791  |    |              |         | 34,590  |              |   |   | (37,226 | )      |   |         | (22      | )      
|                                                                                       |                                                     |                                                                                         |         |         |          |   |        |               |         |   |        |      |    |              |         |         |              |  
|(LOSS) INCOME BEFORE MINORITY INTERESTS IN INCOME OF
    SUBSIDIARIES AND INCOME TAXES |                                                     |                                                                                         | (13,966 | )       |          |   | (7,721 | )             |         |   | 781    |      |    |              | (18,543 | )       |              |   |  |         |        |   | (39,449 | )       
|MINORITY INTERESTS IN INCOME OF SUBSIDIARIES                                           |                                                     |                                                                                         | (4,476  | )       |          |   |       |               |         |   |       |      |    |              |        |         |              |   |  |         |        |   | (4,476  | )       
|                                                                                       |                                                     |                                                                                         |         |         |          |   |        |               |         |   |        |      |    |              |         |         |              |  
|(LOSS) INCOME BEFORE INCOME TAXES                                                      |                                                     |                                                                                         | (18,442 | )       |          |   | (7,721 | )             |         |   | 781    |      |    |              | (18,543 | )       |              |   |  |         |        |   | (43,925 | )       
|                                                                                       | Income tax benefit (expense)                        |                                                                                         |         | 7,008   |          |   |        | 2,934         |         |   |        | (297 | )  |              |         | 994     |              |   |   |        |        |   |         | 10,639   |        
|                                                                                       |                                                     |                                                                                         |         |         |          |   |        |               |         |   |        |      |    |              |         |         |              |  
|NET (LOSS) INCOME                                                                      |                                                     | $                                                                                       | (11,434 | )       |          | $ | (4,787 | )             |         | $ | 484    |      |    | $            | (17,549 | )       |              | $ |  |         |        | $ | (33,286 | )       
|                                                                                       |                                                     |                                                                                         |         |         |          |   |        |               |         |   |        |      |    |              |         |         |              |  

18



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##### Table of Contents



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


For the Six Months Ended June 30, 2004


|                                                                                       |                                                                                  |                                                                                         |                          |         |          |         |         |               |        |         |        |        |   |              |         |         |              |   |   |         |      |        |         |          |         |         | 
|-------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------- | ------------------------ | ------- | -------- | ------- | ------- | ------------- | ------ | ------- | ------ | ------ | - | ------------ | ------- | ------- | ------------ | - | - | ------- | ---- | ------ | ------- | -------- | ------- | ------- | 
|                                                                                       |                                                                                  | Dobson                                                                                  |                          |         | American |         |         | Non-Guarantor |        |         |        |        |   |              |        
|                                                                                       |                                                                                  | Cellular                                                                                |                          |         | Cellular |         |         | Subsidiaries  |        |         | Parent |        |   | Eliminations |         |         | Consolidated |  
|                                                                                       |                                                                                  |                                                                                         |                          |         |          |         |         |               |        |         |        |        |   |              |         |         |              |  
|                                                                                       |                                                                                  | ($ in thousands)                                                                        |                         
|                                                                                       |                                                                                  | (Unaudited)                                                                             |                         
|OPERATING REVENUE:                                                                     |                                                                                  |                                                                                         |                          |         |          |         |         |               |        |         |        |        |   |              |         |         |              |   |   |         |      |        |         |         
|                                                                                       | Service revenue                                                                  |                                                                                         | $                        | 213,787 |          |         | $       | 157,201       |        |         | $      |       |   |              | $       |        |              |   | $ |        |      |        | $       | 370,988  |        
|                                                                                       | Roaming revenue                                                                  |                                                                                         |                          | 53,168  |          |         |         | 39,514        |        |         |        |       |   |              |         |        |              |   |   |        |      |        |         | 92,682   |        
|                                                                                       | Equipment and other revenue                                                      |                                                                                         |                          | 15,872  |          |         |         | 10,088        |        |         |        |       |   |              |         |        |              |   |   | (3,475  | )    |        |         | 22,485   |        
|                                                                                       |                                                                                  |                                                                                         |                          |         |          |         |         |               |        |         |        |        |   |              |         |         |              |  
|                                                                                       |                                                                                  |                                                                                         | Total operating revenue  |         |          | 282,827 |         |               |        | 206,803 |        |        |   |             |         |         |              |  |   |         |      | (3,475 | )       |          |         | 486,155 | 
|                                                                                       |                                                                                  |                                                                                         |                          |         |          |         |         |               |        |         |        |        |   |              |         |         |              |  
|OPERATING EXPENSES:                                                                    |                                                                                  |                                                                                         |                          |         |          |         |         |               |        |         |        |        |   |              |         |         |              |   |   |         |      |        |         |         
|                                                                                       |                                                                                  | Cost of service (exclusive of depreciation and amortization
    shown separately below) |                          |         | 70,759   |         |         |               | 45,759 |         |        |        |  |              |         |         |             |   |   |         | (360 | )      |         |          | 116,158 |        
|                                                                                       | Cost of equipment                                                                |                                                                                         |                          | 28,453  |          |         |         | 22,952        |        |         |        |       |   |              |         |        |              |   |   |        |      |        |         | 51,405   |        
|                                                                                       | Marketing and selling                                                            |                                                                                         |                          | 34,485  |          |         |         | 28,463        |        |         |        |       |   |              |         |        |              |   |   |        |      |        |         | 62,948   |        
|                                                                                       | General and administrative                                                       |                                                                                         |                          | 46,204  |          |         |         | 43,733        |        |         |        | 10     |   |              |         |        |              |   |   | (3,115  | )    |        |         | 86,832   |        
|                                                                                       | Depreciation and amortization                                                    |                                                                                         |                          | 50,934  |          |         |         | 41,149        |        |         |        |       |   |              |         |        |              |   |   |        |      |        |         | 92,083   |        
|                                                                                       |                                                                                  |                                                                                         |                          |         |          |         |         |               |        |         |        |        |   |              |         |         |              |  
|                                                                                       |                                                                                  |                                                                                         | Total operating expenses |         |          | 230,835 |         |               |        | 182,056 |        |        |   | 10           |         |         |              |  |   |         |      | (3,475 | )       |          |         | 409,426 | 
|                                                                                       |                                                                                  |                                                                                         |                          |         |          |         |         |               |        |         |        |        |   |              |         |         |              |  
|OPERATING INCOME (LOSS)                                                                |                                                                                  |                                                                                         | 51,992                   |         |          |         | 24,747  |               |        |         | (10    | )      |   |              |        |         |              |   |  |         |      |        | 76,729  |         
|                                                                                       |                                                                                  |                                                                                         |                          |         |          |         |         |               |        |         |        |        |   |              |         |         |              |  
|OTHER (EXPENSE) INCOME:                                                                |                                                                                  |                                                                                         |                          |         |          |         |         |               |        |         |        |        |   |              |         |         |              |   |   |         |      |        |         |         
|                                                                                       | Interest (expense) income                                                        |                                                                                         |                          | (37,970 | )        |         |         | (47,368       | )      |         |        | (1,137 | ) |              |         | (44,703 | )            |   |   | 24,157  |      |        |         | (107,021 | )      
|                                                                                       | (Loss) gain from extinguishment of debt                                          |                                                                                         |                          | (349    | )        |         |         |              |        |         |        |       |   |              |         | 6,088   |              |   |   |        |      |        |         | 5,739    |        
|                                                                                       | Gain on redemption and repurchases of mandatorily redeemable
    preferred stock |                                                                                         |                          |        |          |         |         |              |        |         |        |       |   |              |         | 5,069   |              |   |   |        |      |        |         | 5,069    |        
|                                                                                       | Dividends on mandatory redeemable preferred stock                                |                                                                                         |                          |        |          |         |         |              |        |         |        |       |   |              |         | (16,907 | )            |   |   |        |      |        |         | (16,907  | )      
|                                                                                       | Other income (expense), net                                                      |                                                                                         |                          | 3,708   |          |         |         | (1,353        | )      |         |        | 389    |   |              |         | 23,131  |              |   |   | (24,157 | )    |        |         | 1,718    |        
|                                                                                       |                                                                                  |                                                                                         |                          |         |          |         |         |               |        |         |        |        |   |              |         |         |              |  
|INCOME (LOSS) BEFORE MINORITY INTERESTS IN INCOME OF
    SUBSIDIARIES AND INCOME TAXES |                                                                                  |                                                                                         | 17,381                   |         |          |         | (23,974 | )             |        |         | (758   | )      |   |              | (27,322 | )       |              |   |  |         |      |        | (34,673 | )       
|MINORITY INTERESTS IN INCOME OF SUBSIDIARIES                                           |                                                                                  |                                                                                         | (2,002                   | )       |          |         |        |               |        |         |       |        |   |              |        |         |              |   |  |         |      |        | (2,002  | )       
|                                                                                       |                                                                                  |                                                                                         |                          |         |          |         |         |               |        |         |        |        |   |              |         |         |              |  
|INCOME (LOSS) BEFORE INCOME TAXES                                                      |                                                                                  |                                                                                         | 15,379                   |         |          |         | (23,974 | )             |        |         | (758   | )      |   |              | (27,322 | )       |              |   |  |         |      |        | (36,675 | )       
|                                                                                       | Income tax (expense) benefit                                                     |                                                                                         |                          | (5,844  | )        |         |         | 9,110         |        |         |        | 288    |   |              |         | 3,949   |              |   |   |        |      |        |         | 7,503    |        
|                                                                                       |                                                                                  |                                                                                         |                          |         |          |         |         |               |        |         |        |        |   |              |         |         |              |  
|INCOME (LOSS) FROM CONTINUING OPERATIONS                                               |                                                                                  |                                                                                         | 9,535                    |         |          |         | (14,864 | )             |        |         | (470   | )      |   |              | (23,373 | )       |              |   |  |         |      |        | (29,172 | )       
|                                                                                       | Income from discontinued operations, net of income tax expense                   |                                                                                         |                          | 443     |          |         |         |              |        |         |        |       |   |              |         |        |              |   |   |        |      |        |         | 443      |        
|                                                                                       |                                                                                  |                                                                                         |                          |         |          |         |         |               |        |         |        |        |   |              |         |         |              |  
|NET INCOME (LOSS)                                                                      |                                                                                  | $                                                                                       | 9,978                    |         |          | $       | (14,864 | )             |        | $       | (470   | )      |   | $            | (23,373 | )       |              | $ |  |         |      | $      | (28,729 | )       
|                                                                                       |                                                                                  |                                                                                         |                          |         |          |         |         |               |        |         |        |        |   |              |         |         |              |  

19



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##### Table of Contents



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


For the Six Months Ended June 30, 2005


|                                               |                                                                                                                                                                    |                                                            |                                                     |         |          |        |        |               |        |        |        |        |     |              |       |              |        |      |   |   |   |   |         |         |         |        | 
|---------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------- | --------------------------------------------------- | ------- | -------- | ------ | ------ | ------------- | ------ | ------ | ------ | ------ | --- | ------------ | ----- | ------------ | ------ | ---- | - | - | - | - | ------- | ------- | ------- | ------ | 
|                                               |                                                                                                                                                                    | Dobson                                                     |                                                     |         | American |        |        | Non-Guarantor |        |        |        |        |     |              |      
|                                               |                                                                                                                                                                    | Cellular                                                   |                                                     |         | Cellular |        |        | Subsidiaries  |        |        | Parent |        |     | Eliminations |       | Consolidated |       
|                                               |                                                                                                                                                                    |                                                            |                                                     |         |          |        |        |               |        |        |        |        |     |              |       |              |       
|                                               |                                                                                                                                                                    | ($ in thousands)                                           |                                                    
|                                               |                                                                                                                                                                    | (Unaudited)                                                |                                                    
|CASH FLOWS FROM OPERATING ACTIVITIES:          |                                                                                                                                                                    |                                                            |                                                     |         |          |        |        |               |        |        |        |        |     |              |       |              |        |      |   |   |   |   |         |        
|                                               | (Loss) income from continuing operations                                                                                                                           |                                                            | $                                                   | (11,434 | )        |        | $      | (4,787        | )      |        | $      | 484    |     |              | $     | (17,549      | )      |      | $ |  |   |   | $       | (33,286 | )      
|                                               | 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                              |                                                     |         | 59,494   |        |        |               | 42,416 |        |        |        |    |              |       |              |       |      |   |   |  |   |         |         | 101,910 |       
|                                               |                                                                                                                                                                    | Amortization of bond discount and deferred financing costs |                                                     |         | 947      |        |        |               | 1,691  |        |        |        |    |              |       |              | 1,001  |      |   |   |  |   |         |         | 3,639   |       
|                                               |                                                                                                                                                                    | Deferred income taxes                                      |                                                     |         | (7,330   | )      |        |               | (2,890 | )      |        |        | 297 |              |       |              | (994   | )    |   |   |  |   |         |         | (10,917 | )     
|                                               |                                                                                                                                                                    | Non-cash mandatorily redeemable preferred stock dividends  |                                                     |         |         |        |        |               |       |        |        |        |    |              |       |              | 15,927 |      |   |   |  |   |         |         | 15,927  |       
|                                               |                                                                                                                                                                    | Gain on disposition of operating assets, net               |                                                     |         |         |        |        |               | (939   | )      |        |        |    |              |       |              |       |      |   |   |  |   |         |         | (939    | )     
|                                               |                                                                                                                                                                    | Other operating activities                                 |                                                     |         | 4,500    |        |        |               | 6      |        |        |        |    |              |       |              |       |      |   |   |  |   |         |         | 4,506   |       
|Changes in current assets and liabilities     |                                                                                                                                                                    |                                                            |                                                     |         |          |        |        |               |        |        |        |        |     |              |       |              |        |      |   |   |   |   |         |        
|                                               |                                                                                                                                                                    | Accounts receivable                                        |                                                     |         | (18,352  | )      |        |               | (6,452 | )      |        |        |    |              |       |              |       |      |   |   |  |   |         |         | (24,804 | )     
|                                               |                                                                                                                                                                    | Inventory                                                  |                                                     |         | 774      |        |        |               | 752    |        |        |        |    |              |       |              |       |      |   |   |  |   |         |         | 1,526   |       
|                                               |                                                                                                                                                                    | Prepaid expenses and other                                 |                                                     |         | (8,536   | )      |        |               | 46     |        |        |        | (10 | )            |       |              |       |      |   |   |  |   |         |         | (8,500  | )     
|                                               |                                                                                                                                                                    | Accounts payable                                           |                                                     |         | 7,024    |        |        |               | 7,076  |        |        |        |    |              |       |              |       |      |   |   |  |   |         |         | 14,100  |       
|                                               |                                                                                                                                                                    | Accrued expenses                                           |                                                     |         | 3,646    |        |        |               | (2,593 | )      |        |        | (89 | )            |       |              | 1,319  |      |   |   |  |   |         |         | 2,283   |       
|                                               |                                                                                                                                                                    | Deferred revenue and customer deposits                     |                                                     |         | 975      |        |        |               | 108    |        |        |        |    |              |       |              |       |      |   |   |  |   |         |         | 1,083   |       
|                                               |                                                                                                                                                                    |                                                            |                                                     |         |          |        |        |               |        |        |        |        |     |              |       |              |        |     
|                                               |                                                                                                                                                                    |                                                            | Net cash provided by (used in) operating activities |         |          | 31,708 |        |               |        | 34,434 |        |        |     | 682          |       |              |        | (296 | ) |   |   |  |         |         |         | 66,528 | 
|                                               |                                                                                                                                                                    |                                                            |                                                     |         |          |        |        |               |        |        |        |        |     |              |       |              |        |     
|CASH FLOWS FROM INVESTING ACTIVITIES:          |                                                                                                                                                                    |                                                            |                                                     |         |          |        |        |               |        |        |        |        |     |              |       |              |        |      |   |   |   |   |         |        
|                                               | Capital expenditures                                                                                                                                               |                                                            |                                                     | (52,831 | )        |        |        | (23,472       | )      |        |        |       |     |              |       |             |        |      |   |  |   |   |         | (76,303 | )      
|                                               | Proceeds from the sale of assets                                                                                                                                   |                                                            |                                                     | 46,095  |          |        |        | 30,922        |        |        |        |       |     |              |       |             |        |      |   |  |   |   |         | 77,017  |        
|                                               | (Increase) decrease in receivable-affiliates                                                                                                                       |                                                            |                                                     | (26,342 | )        |        |        | 2,942         |        |        |        | 24,017 |     |              |       | (617         | )      |      |   |  |   |   |         |        |        
|                                               | Sales of marketable securities                                                                                                                                     |                                                            |                                                     | 39,000  |          |        |        |              |        |        |        |       |     |              |       |             |        |      |   |  |   |   |         | 39,000  |        
|                                               | Other investing activities                                                                                                                                         |                                                            |                                                     | (1,007  | )        |        |        | (291          | )      |        |        |       |     |              |       |             |        |      |   |  |   |   |         | (1,298  | )      
|                                               |                                                                                                                                                                    |                                                            |                                                     |         |          |        |        |               |        |        |        |        |     |              |       |              |        |     
|                                               |                                                                                                                                                                    |                                                            | Net cash provided by (used in) investing activities |         |          | 4,915  |        |               |        | 10,101 |        |        |     | 24,017       |       |              |        | (617 | ) |   |   |  |         |         |         | 38,416 | 
|                                               |                                                                                                                                                                    |                                                            |                                                     |         |          |        |        |               |        |        |        |        |     |              |       |              |        |     
|CASH FLOWS FROM FINANCING ACTIVITIES:          |                                                                                                                                                                    |                                                            |                                                     |         |          |        |        |               |        |        |        |        |     |              |       |              |        |      |   |   |   |   |         |        
|                                               | Distributions to minority interest holders                                                                                                                         |                                                            |                                                     | (3,359  | )        |        |        |              |        |        |        |       |     |              |       |             |        |      |   |  |   |   |         | (3,359  | )      
|                                               | Maturities of restricted investments                                                                                                                               |                                                            |                                                     | 5,960   |          |        |        |              |        |        |        |       |     |              |       |             |        |      |   |  |   |   |         | 5,960   |        
|                                               | Other financing activities                                                                                                                                         |                                                            |                                                     | (440    | )        |        |        | (27           | )      |        |        |       |     |              |       | 934          |        |      |   |  |   |   |         | 467     |        
|                                               |                                                                                                                                                                    |                                                            |                                                     |         |          |        |        |               |        |        |        |        |     |              |       |              |        |     
|                                               |                                                                                                                                                                    |                                                            | Net cash provided by (used in) financing activities |         |          | 2,161  |        |               |        | (27    | )      |        |     |             |       |              |        | 934  |   |   |   |  |         |         |         | 3,068  | 
|                                               |                                                                                                                                                                    |                                                            |                                                     |         |          |        |        |               |        |        |        |        |     |              |       |              |        |     
|NET INCREASE IN CASH AND CASH EQUIVALENTS      |                                                                                                                                                                    |                                                            | 38,784                                              |         |          |        | 44,508 |               |        |        | 24,699 |        |     |              | 21    |              |        |      |  |   |   |   | 108,012 |        
|CASH AND CASH EQUIVALENTS, beginning of period |                                                                                                                                                                    |                                                            | 47,427                                              |         |          |        | 41,489 |               |        |        | 48,303 |        |     |              | 2,665 |              |        |      |  |   |   |   | 139,884 |        
|                                               |                                                                                                                                                                    |                                                            |                                                     |         |          |        |        |               |        |        |        |        |     |              |       |              |        |     
|CASH AND CASH EQUIVALENTS, end of period       |                                                                                                                                                                    | $                                                          | 86,211                                              |         |          | $      | 85,997 |               |        | $      | 73,002 |        |     | $            | 2,686 |              |        | $    |  |   |   | $ | 247,896 |        
|                                               |                                                                                                                                                                    |                                                            |                                                     |         |          |        |        |               |        |        |        |        |     |              |       |              |        |     

20



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##### Table of Contents



DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


For the Six Months Ended June 30, 2004


|                                                     |                                                                                                                                                                    |                                                                                  |                                                     |         |          |         |         |               |        |         |        |         |         |              |         |              |        |          |   |   |   |   |         |         |         |         |  
|---------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------- | --------------------------------------------------- | ------- | -------- | ------- | ------- | ------------- | ------ | ------- | ------ | ------- | ------- | ------------ | ------- | ------------ | ------ | -------- | - | - | - | - | ------- | ------- | ------- | ------- | -
|                                                     |                                                                                                                                                                    | Dobson                                                                           |                                                     |         | American |         |         | Non-Guarantor |        |         |        |         |         |              |        
|                                                     |                                                                                                                                                                    | Cellular                                                                         |                                                     |         | Cellular |         |         | Subsidiaries  |        |         | Parent |         |         | Eliminations |         | Consolidated |       
|                                                     |                                                                                                                                                                    |                                                                                  |                                                     |         |          |         |         |               |        |         |        |         |         |              |         |              |       
|                                                     |                                                                                                                                                                    | ($ in thousands)                                                                 |                                                    
|                                                     |                                                                                                                                                                    | (Unaudited)                                                                      |                                                    
|CASH FLOWS FROM OPERATING ACTIVITIES:                |                                                                                                                                                                    |                                                                                  |                                                     |         |          |         |         |               |        |         |        |         |         |              |         |              |        |          |   |   |   |   |         |        
|                                                     | Income (loss) from continuing operations                                                                                                                           |                                                                                  | $                                                   | 9,535   |          |         | $       | (14,864       | )      |         | $      | (470    | )       |              | $       | (23,373      | )      |          | $ |  |   |   | $       | (29,172 | )      
|                                                     | 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                                                    |                                                     |         | 50,934   |         |         |               | 41,149 |         |        |         |        |              |         |              |       |          |   |   |  |   |         |         | 92,083  |        
|                                                     |                                                                                                                                                                    | Amortization of bond discount and deferred financing costs                       |                                                     |         | 1,172    |         |         |               | 1,609  |         |        |         |        |              |         |              | 1,207  |          |   |   |  |   |         |         | 3,988   |        
|                                                     |                                                                                                                                                                    | Deferred income taxes                                                            |                                                     |         | 5,339    |         |         |               | (9,469 | )       |        |         | (288    | )            |         |              | (3,950 | )        |   |   |  |   |         |         | (8,368  | )      
|                                                     |                                                                                                                                                                    | Non-cash mandatorily redeemable preferred stock dividends                        |                                                     |         |         |         |         |               |       |         |        |         |        |              |         |              | 6,598  |          |   |   |  |   |         |         | 6,598   |        
|                                                     |                                                                                                                                                                    | Gain on redemption and repurchases of mandatorily redeemable
    preferred stock |                                                     |         |         |         |         |               |       |         |        |         |        |              |         |              | (5,069 | )        |   |   |  |   |         |         | (5,069  | )      
|                                                     |                                                                                                                                                                    | Other operating activities                                                       |                                                     |         | 1,380    |         |         |               | 27     |         |        |         |        |              |         |              | 1,094  |          |   |   |  |   |         |         | 2,501   |        
|                                                     | Changes in current assets and liabilities                                                                                                                         |                                                                                  |                                                     |         |          |         |         |               |        |         |        |         |         |              |         |              |        |          |   |   |   |   |         |         |        
|                                                     |                                                                                                                                                                    | Accounts receivable                                                              |                                                     |         | 1,031    |         |         |               | 4,647  |         |        |         |        |              |         |              |       |          |   |   |  |   |         |         | 5,678   |        
|                                                     |                                                                                                                                                                    | Inventory                                                                        |                                                     |         | (3,101   | )       |         |               | (3,088 | )       |        |         |        |              |         |              |       |          |   |   |  |   |         |         | (6,189  | )      
|                                                     |                                                                                                                                                                    | Prepaid expenses and other                                                       |                                                     |         | (6,190   | )       |         |               | (832   | )       |        |         | 10      |              |         |              |       |          |   |   |  |   |         |         | (7,012  | )      
|                                                     |                                                                                                                                                                    | Accounts payable                                                                 |                                                     |         | (15,008  | )       |         |               | (5,458 | )       |        |         |        |              |         |              |       |          |   |   |  |   |         |         | (20,466 | )      
|                                                     |                                                                                                                                                                    | Accrued expenses                                                                 |                                                     |         | (2,130   | )       |         |               | 2,304  |         |        |         | (14,162 | )            |         |              | 11,829 |          |   |   |  |   |         |         | (2,159  | )      
|                                                     |                                                                                                                                                                    | Deferred revenue and customer deposits                                           |                                                     |         | 294      |         |         |               | (782   | )       |        |         | (7      | )            |         |              |       |          |   |   |  |   |         |         | (495    | )      
|                                                     |                                                                                                                                                                    |                                                                                  |                                                     |         |          |         |         |               |        |         |        |         |         |              |         |              |        |         
|                                                     |                                                                                                                                                                    |                                                                                  | Net cash provided by (used in) operating activities |         |          | 43,256  |         |               |        | 15,243  |        |         |         | (14,917      | )       |              |        | (11,664  | ) |   |   |  |         |         |         | 31,918  |  
|                                                     |                                                                                                                                                                    |                                                                                  |                                                     |         |          |         |         |               |        |         |        |         |         |              |         |              |        |         
|CASH FLOWS FROM INVESTING ACTIVITIES:                |                                                                                                                                                                    |                                                                                  |                                                     |         |          |         |         |               |        |         |        |         |         |              |         |              |        |          |   |   |   |   |         |        
|                                                     | Capital expenditures                                                                                                                                               |                                                                                  |                                                     | (62,722 | )        |         |         | (26,161       | )      |         |        |        |         |              |         |             |        |          |   |  |   |   |         | (88,883 | )      
|                                                     | Purchase of selected wireless licenses and properties                                                                                                              |                                                                                  |                                                     | (29,416 | )        |         |         |              |        |         |        |        |         |              |         |             |        |          |   |  |   |   |         | (29,416 | )      
|                                                     | Receipt of funds held in escrow for contingencies on sold assets                                                                                                   |                                                                                  |                                                     | 7,185   |          |         |         | 4,169         |        |         |        |        |         |              |         |             |        |          |   |  |   |   |         | 11,354  |        
|                                                     | Cash received from exchange of assets                                                                                                                              |                                                                                  |                                                     | 21,978  |          |         |         |              |        |         |        |        |         |              |         |             |        |          |   |  |   |   |         | 21,978  |        
|                                                     | Purchases of marketable securities                                                                                                                                 |                                                                                  |                                                     |        |          |         |         |              |        |         |        | (25,000 | )       |              |         |             |        |          |   |  |   |   |         | (25,000 | )      
|                                                     | Sales of marketable securities                                                                                                                                     |                                                                                  |                                                     |        |          |         |         |              |        |         |        | 56,700  |         |              |         |             |        |          |   |  |   |   |         | 56,700  |        
|                                                     | (Increase) decrease in receivable-affiliates                                                                                                                       |                                                                                  |                                                     | (22,379 | )        |         |         | (5,463        | )      |         |        | (62,842 | )       |              |         | 90,684       |        |          |   |  |   |   |         |        |        
|                                                     | Other investing activities                                                                                                                                         |                                                                                  |                                                     | 887     |          |         |         | 2             |        |         |        |        |         |              |         | (19          | )      |          |   |  |   |   |         | 870     |        
|                                                     |                                                                                                                                                                    |                                                                                  |                                                     |         |          |         |         |               |        |         |        |         |         |              |         |              |        |         
|                                                     |                                                                                                                                                                    |                                                                                  | Net cash (used in) provided by investing activities |         |          | (84,467 | )       |               |        | (27,453 | )      |         |         | (31,142      | )       |              |        | 90,665   |   |   |   |  |         |         |         | (52,397 | )
|                                                     |                                                                                                                                                                    |                                                                                  |                                                     |         |          |         |         |               |        |         |        |         |         |              |         |              |        |         
|CASH FLOWS FROM FINANCING ACTIVITIES:                |                                                                                                                                                                    |                                                                                  |                                                     |         |          |         |         |               |        |         |        |         |         |              |         |              |        |          |   |   |   |   |         |        
|                                                     | Proceeds from long-term debt                                                                                                                                       |                                                                                  |                                                     | 28,000  |          |         |         |              |        |         |        |        |         |              |         |             |        |          |   |  |   |   |         | 28,000  |        
|                                                     | Repayments and purchases of long-term debt                                                                                                                         |                                                                                  |                                                     | (7,995  | )        |         |         |              |        |         |        |        |         |              |         | (55,500      | )      |          |   |  |   |   |         | (63,495 | )      
|                                                     | Preferred stock dividends paid                                                                                                                                     |                                                                                  |                                                     |        |          |         |         |              |        |         |        |        |         |              |         | (3,676       | )      |          |   |  |   |   |         | (3,676  | )      
|                                                     | Distributions to minority interest holders                                                                                                                         |                                                                                  |                                                     | (2,896  | )        |         |         |              |        |         |        |        |         |              |         |             |        |          |   |  |   |   |         | (2,896  | )      
|                                                     | Redemption and repurchases of exchangeable preferred stock                                                                                                         |                                                                                  |                                                     |        |          |         |         |              |        |         |        |        |         |              |         | (12,835      | )      |          |   |  |   |   |         | (12,835 | )      
|                                                     | Investment in subsidiary                                                                                                                                           |                                                                                  |                                                     | (2,300  | )        |         |         |              |        |         |        |        |         |              |         | 2,300        |        |          |   |  |   |   |         |        |        
|                                                     | Capital contribution from parent                                                                                                                                   |                                                                                  |                                                     |        |          |         |         |              |        |         |        | 65,300  |         |              |         | (65,300      | )      |          |   |  |   |   |         |        |        
|                                                     | Other financing costs                                                                                                                                              |                                                                                  |                                                     | (1,482  | )        |         |         | (60           | )      |         |        |        |         |              |         | 9            |        |          |   |  |   |   |         | (1,533  | )      
|                                                     |                                                                                                                                                                    |                                                                                  |                                                     |         |          |         |         |               |        |         |        |         |         |              |         |              |        |         
|                                                     |                                                                                                                                                                    |                                                                                  | Net cash provided by (used in) financing activities |         |          | 13,327  |         |               |        | (60     | )      |         |         | 65,300       |         |              |        | (135,002 | ) |   |   |  |         |         |         | (56,435 | )
|                                                     |                                                                                                                                                                    |                                                                                  |                                                     |         |          |         |         |               |        |         |        |         |         |              |         |              |        |         
|NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS |                                                                                                                                                                    |                                                                                  | (27,884                                             | )       |          |         | (12,270 | )             |        |         | 19,241 |         |         |              | (56,001 | )            |        |          |  |   |   |   | (76,914 | )      
|CASH AND CASH EQUIVALENTS, beginning of period       |                                                                                                                                                                    |                                                                                  | 59,387                                              |         |          |         | 27,505  |               |        |         | 3,801  |         |         |              | 60,846  |              |        |          |  |   |   |   | 151,539 |        
|                                                     |                                                                                                                                                                    |                                                                                  |                                                     |         |          |         |         |               |        |         |        |         |         |              |         |              |        |         
|CASH AND CASH EQUIVALENTS, end of period             |                                                                                                                                                                    | $                                                                                | 31,503                                              |         |          | $       | 15,235  |               |        | $       | 23,042 |         |         | $            | 4,845   |              |        | $        |  |   |   | $ | 74,625  |        
|                                                     |                                                                                                                                                                    |                                                                                  |                                                     |         |          |         |         |               |        |         |        |         |         |              |         |              |        |         

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DOBSON COMMUNICATIONS CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                  
|--- | -----------------
|13. | Subsequent Events





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

The following discussion and analysis presents factors that
we believe are relevant to an assessment and understanding of
our condensed consolidated financial position and results of
operations. This financial and business analysis should be read
in conjunction with our December 31, 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.






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Acquisition of NPI.




Maryland/ Michigan Swap.




NEW ROAMING AGREEMENT WITH CINGULAR WIRELESS






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

RESULTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED
JUNE 30, 2005 AND JUNE 30, 2004




|                                                  |  |                             |            |   |                           |   |            |      |  |   |            |   |  |   |            |  
|------------------------------------------------- |  | --------------------------- | ---------- | - | ------------------------- | - | ---------- | ---- |  | - | ---------- | - |  | - | ---------- | -
|                                                  |  | Three Months Ended June 30, |            |   | Six Months Ended June 30, |  
|                                                  |  |                             |            |   |                           |  
|                                                  |  | 2005                        |            |   | 2004                      |   |            | 2005 |  |   | 2004       |  
|                                                  |  |                             |            |   |                           |   |            |      |  |   |            |  
|Market population(1)                              |  |                             | 11,757,400 |   |                           |   | 11,436,800 |      |  |   | 11,757,400 |   |  |   | 11,436,800 |  
|Ending subscribers                                |  |                             | 1,589,400  |   |                           |   | 1,607,500  |      |  |   | 1,589,400  |   |  |   | 1,607,500  |  
|Market penetration(2)                             |  |                             | 13.5       | % |                           |   | 14.1       | %    |  |   | 13.5       | % |  |   | 14.1       | %
|Gross subscriber additions                        |  |                             | 131,500    |   |                           |   | 107,000    |      |  |   | 253,500    |   |  |   | 206,600    |  
|Average subscribers                               |  |                             | 1,590,000  |   |                           |   | 1,576,300  |      |  |   | 1,596,400  |   |  |   | 1,568,200  |  
|Average monthly service revenue per subscriber(3) |  | $                           | 45         |   |                           | $ | 40         |      |  | $ | 44         |   |  | $ | 39         |  
|Average monthly post-paid churn(4)                |  |                             | 2.3        | % |                           |   | 1.7        | %    |  |   | 2.3        | % |  |   | 1.8        | %

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|    |                                                                                                                                                                                                                                                                                                                                              
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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




|                                                                                        |  |                                  |         |            |                                  |            |             |         |  |   |            |            |  |         |             |  |         |             |       |             |  |   |         |  |  |  |      |  
|--------------------------------------------------------------------------------------- |  | -------------------------------- | ------- | ---------- | -------------------------------- | ---------- | ----------- | ------- |  | - | ---------- | ---------- |  | ------- | ----------- |  | ------- | ----------- | ----- | ----------- |  | - | ------- |  |  |  | ---- | -
|                                                                                        |  |                                  |         |            |                                  | Percentage |            
|                                                                                        |  | Three Months Ended June 30, 2005 |         |            | Three Months Ended June 30, 2004 |            |             | Change  | 
|                                                                                        |  |                                  |         |            |                                  |            |             | in Non- | 
|                                                                                        |  |                                  |         | Results    |                                  |            | Results     |         |  |   |            | Results    |  |         | Results     |  |         | 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                                                                         |  | $                                | 215,984 |            |                                  | $          | 5,450       |         |  | $ | 210,534    |            |  | $       | 189,288     |  |         | $           | 2,835 |             |  | $ | 186,453 |  |  |  | 12.9 | %
|Roaming revenue                                                                         |  |                                  | 61,149  |            |                                  |            | 3,121       |         |  |   | 58,028     |            |  |         | 50,606      |  |         |             | 980   |             |  |   | 49,626  |  |  |  | 16.9 | %
|Equipment and other revenue                                                             |  |                                  | 20,533  |            |                                  |            | 604         |         |  |   | 19,929     |            |  |         | 12,469      |  |         |             | 138   |             |  |   | 12,331  |  |  |  | 61.6 | %
|                                                                                        |  |                                  |         |            |                                  |            |             |         |  |   |            |            |  |         |             |  |         |             |       |             | 
|Total operating revenue                                                                 |  |                                  | 297,666 |            |                                  |            | 9,175       |         |  |   | 288,491    |            |  |         | 252,363     |  |         |             | 3,953 |             |  |   | 248,410 |  |  |  | 16.1 | %
|                                                                                        |  |                                  |         |            |                                  |            |             |         |  |   |            |            |  |         |             |  |         |             |       |             | 
|Operating Expenses:                                                                     |  |                                  |         |            |                                  |            |             |         |  |   |            |            |  |         |             |  |         |             |       |             |  |   |         |  |  |  |      |  
|Cost of service (exclusive of depreciation and amortization
    shown separately below) |  |                                  | 68,965  |            |                                  |            | 3,774       |         |  |   | 65,191     |            |  |         | 61,972      |  |         |             | 955   |             |  |   | 61,017  |  |  |  | 6.8  | %
|Cost of equipment                                                                       |  |                                  | 34,255  |            |                                  |            | 1,220       |         |  |   | 33,035     |            |  |         | 27,870      |  |         |             | 306   |             |  |   | 27,564  |  |  |  | 19.8 | %
|Marketing and selling                                                                   |  |                                  | 35,855  |            |                                  |            | 1,614       |         |  |   | 34,241     |            |  |         | 33,786      |  |         |             | 528   |             |  |   | 33,258  |  |  |  | 3.0  | %
|General and administrative                                                              |  |                                  | 49,308  |            |                                  |            | 2,784       |         |  |   | 46,524     |            |  |         | 43,056      |  |         |             | 726   |             |  |   | 42,330  |  |  |  | 9.9  | %
|Depreciation and amortization                                                           |  |                                  | 50,340  |            |                                  |            | 2,256       |         |  |   | 48,084     |            |  |         | 46,635      |  |         |             | 603   |             |  |   | 46,032  |  |  |  | 4.5  | %
|Gain on disposition of operating assets                                                 |  |                                  | (939    | )          |                                  |            |            |         |  |   | (939       | )          |  |         |            |  |         |             |      |             |  |   |        |  |  |  | *    |  
|                                                                                        |  |                                  |         |            |                                  |            |             |         |  |   |            |            |  |         |             |  |         |             |       |             | 
|Total operating expenses                                                                |  |                                  | 237,784 |            |                                  |            | 11,648      |         |  |   | 226,136    |            |  |         | 213,319     |  |         |             | 3,118 |             |  |   | 210,201 |  |  |  | 7.6  | %
|                                                                                        |  |                                  |         |            |                                  |            |             |         |  |   |            |            |  |         |             |  |         |             |       |             | 

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|                                                                                 |  |                                  |         |            |                                  |            |             |         |  |   |            |            |  |         |             |   |         |             |      |             |  |   |         |   |  |  |       |   
|-------------------------------------------------------------------------------- |  | -------------------------------- | ------- | ---------- | -------------------------------- | ---------- | ----------- | ------- |  | - | ---------- | ---------- |  | ------- | ----------- | - | ------- | ----------- | ---- | ----------- |  | - | ------- | - |  |  | ----- | --
|                                                                                 |  |                                  |         |            |                                  | Percentage |            
|                                                                                 |  | Three Months Ended June 30, 2005 |         |            | Three Months Ended June 30, 2004 |            |             | Change  | 
|                                                                                 |  |                                  |         |            |                                  |            |             | in Non- | 
|                                                                                 |  |                                  |         | Results    |                                  |            | Results     |         |  |   |            | Results    |  |         | Results     |   |         | 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 income (loss)                                                          |  |                                  | 59,882  |            |                                  |            | (2,473      | )       |  |   | 62,355     |            |  |         | 39,044      |   |         |             | 835  |             |  |   | 38,209  |   |  |  | 63.2  | % 
|                                                                                 |  |                                  |         |            |                                  |            |             |         |  |   |            |            |  |         |             |   |         |             |      |             | 
|Interest expense                                                                 |  |                                  | (61,258 | )          |                                  |            |            |         |  |   | (61,258    | )          |  |         | (52,783     | ) |         |             |     |             |  |   | (52,783 | ) |  |  | 16.1  | % 
|Gain on redemption and repurchases of mandatorily redeemable
    preferred stock |  |                                  |        |            |                                  |            |            |         |  |   |           |            |  |         | 5,069       |   |         |             |     |             |  |   | 5,069   |   |  |  | *     |   
|Dividends on mandatorily redeemable preferred stock                              |  |                                  | (7,996  | )          |                                  |            |            |         |  |   | (7,996     | )          |  |         | (8,289      | ) |         |             |     |             |  |   | (8,289  | ) |  |  | (3.5  | )%
|Other income, net                                                                |  |                                  | 744     |            |                                  |            | (28         | )       |  |   | 772        |            |  |         | 441         |   |         |             |     |             |  |   | 441     |   |  |  | 75.1  | % 
|Minority interest in income of subsidiaries                                      |  |                                  | (2,646  | )          |                                  |            |            |         |  |   | (2,646     | )          |  |         | (1,058      | ) |         |             |     |             |  |   | (1,058  | ) |  |  | 150.1 | % 
|Income tax benefit (expense)                                                     |  |                                  | 1,245   |            |                                  |            | 950         |         |  |   | 295        |            |  |         | 3,529       |   |         |             | (317 | )           |  |   | 3,846   |   |  |  | (92.3 | )%
|                                                                                 |  |                                  |         |            |                                  |            |             |         |  |   |            |            |  |         |             |   |         |             |      |             | 
|(Loss) income from continuing operations                                         |  | $                                | (10,029 | )          |                                  | $          | (1,551      | )       |  | $ | (8,478     | )          |  | $       | (14,047     | ) |         | $           | 518  |             |  | $ | (14,565 | ) |  |  | 41.8  | % 
|                                                                                 |  |                                  |         |            |                                  |            |             |         |  |   |            |            |  |         |             |   |         |             |      |             | 

|                                                                                        |  |                                |          |            |                                |            |             |         |  |   |            |            |  |         |             |   |         |             |       |             |  |   |          |   |  |  |       |   
|--------------------------------------------------------------------------------------- |  | ------------------------------ | -------- | ---------- | ------------------------------ | ---------- | ----------- | ------- |  | - | ---------- | ---------- |  | ------- | ----------- | - | ------- | ----------- | ----- | ----------- |  | - | -------- | - |  |  | ----- | --
|                                                                                        |  |                                |          |            |                                | Percentage |            
|                                                                                        |  | Six Months Ended June 30, 2005 |          |            | Six Months Ended June 30, 2004 |            |             | Change  | 
|                                                                                        |  |                                |          |            |                                |            |             | in Non- | 
|                                                                                        |  |                                |          | Results    |                                |            | Results     |         |  |   |            | Results    |  |         | Results     |   |         | 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                                                                         |  | $                              | 422,066  |            |                                | $          | 10,826      |         |  | $ | 411,240    |            |  | $       | 370,988     |   |         | $           | 3,900 |             |  | $ | 367,088  |   |  |  | 12.0  | % 
|Roaming revenue                                                                         |  |                                | 114,579  |            |                                |            | 5,323       |         |  |   | 109,256    |            |  |         | 92,682      |   |         |             | 1,092 |             |  |   | 91,590   |   |  |  | 19.3  | % 
|Equipment and other revenue                                                             |  |                                | 32,779   |            |                                |            | 1,294       |         |  |   | 31,485     |            |  |         | 22,485      |   |         |             | 177   |             |  |   | 22,308   |   |  |  | 41.1  | % 
|                                                                                        |  |                                |          |            |                                |            |             |         |  |   |            |            |  |         |             |   |         |             |       |             | 
|Total operating revenue                                                                 |  |                                | 569,424  |            |                                |            | 17,443      |         |  |   | 551,981    |            |  |         | 486,155     |   |         |             | 5,169 |             |  |   | 480,986  |   |  |  | 14.8  | % 
|                                                                                        |  |                                |          |            |                                |            |             |         |  |   |            |            |  |         |             |   |         |             |       |             | 
|Operating Expenses:                                                                     |  |                                |          |            |                                |            |             |         |  |   |            |            |  |         |             |   |         |             |       |             |  |   |          |   |  |  |       |   
|Cost of service (exclusive of depreciation and amortization
    shown separately below) |  |                                | 141,264  |            |                                |            | 6,960       |         |  |   | 134,304    |            |  |         | 116,158     |   |         |             | 1,224 |             |  |   | 114,934  |   |  |  | 16.9  | % 
|Cost of equipment                                                                       |  |                                | 64,621   |            |                                |            | 1,971       |         |  |   | 62,650     |            |  |         | 51,405      |   |         |             | 412   |             |  |   | 50,993   |   |  |  | 22.9  | % 
|Marketing and selling                                                                   |  |                                | 69,949   |            |                                |            | 3,286       |         |  |   | 66,663     |            |  |         | 62,948      |   |         |             | 677   |             |  |   | 62,271   |   |  |  | 7.1   | % 
|General and administrative                                                              |  |                                | 94,119   |            |                                |            | 5,171       |         |  |   | 88,948     |            |  |         | 86,832      |   |         |             | 1,097 |             |  |   | 85,735   |   |  |  | 3.7   | % 
|Depreciation and amortization                                                           |  |                                | 101,910  |            |                                |            | 4,549       |         |  |   | 97,361     |            |  |         | 92,083      |   |         |             | 987   |             |  |   | 91,096   |   |  |  | 6.9   | % 
|Gain on disposition of operating assets                                                 |  |                                | (939     | )          |                                |            |            |         |  |   | (939       | )          |  |         |            |   |         |             |      |             |  |   |         |   |  |  | *     |   
|                                                                                        |  |                                |          |            |                                |            |             |         |  |   |            |            |  |         |             |   |         |             |       |             | 
|Total operating expenses                                                                |  |                                | 470,924  |            |                                |            | 21,937      |         |  |   | 448,987    |            |  |         | 409,426     |   |         |             | 4,397 |             |  |   | 405,029  |   |  |  | 10.9  | % 
|                                                                                        |  |                                |          |            |                                |            |             |         |  |   |            |            |  |         |             |   |         |             |       |             | 
|Operating income (loss)                                                                 |  |                                | 98,500   |            |                                |            | (4,494      | )       |  |   | 102,994    |            |  |         | 76,729      |   |         |             | 772   |             |  |   | 75,957   |   |  |  | 35.6  | % 
|                                                                                        |  |                                |          |            |                                |            |             |         |  |   |            |            |  |         |             |   |         |             |       |             | 
|Interest expense                                                                        |  |                                | (122,000 | )          |                                |            |            |         |  |   | (122,000   | )          |  |         | (107,021    | ) |         |             |      |             |  |   | (107,021 | ) |  |  | 14.0  | % 
|Gain from extinguishment of debt                                                        |  |                                |         |            |                                |            |            |         |  |   |           |            |  |         | 5,739       |   |         |             |      |             |  |   | 5,739    |   |  |  | *     |   
|Gain on redemption and repurchases of mandatorily redeemable
    preferred stock        |  |                                |         |            |                                |            |            |         |  |   |           |            |  |         | 5,069       |   |         |             |      |             |  |   | 5,069    |   |  |  | *     |   
|Dividends on mandatorily redeemable preferred stock                                     |  |                                | (15,927  | )          |                                |            |            |         |  |   | (15,927    | )          |  |         | (16,907     | ) |         |             |      |             |  |   | (16,907  | ) |  |  | (5.8  | )%
|Other (expense) income, net                                                             |  |                                | (22      | )          |                                |            | 23          |         |  |   | (45        | )          |  |         | 1,718       |   |         |             | 1     |             |  |   | 1,717    |   |  |  | *     |   
|Minority interest in income of subsidiaries                                             |  |                                | (4,476   | )          |                                |            |            |         |  |   | (4,476     | )          |  |         | (2,002      | ) |         |             |      |             |  |   | (2,002   | ) |  |  | 123.6 | % 
|Income tax benefit (expense)                                                            |  |                                | 10,639   |            |                                |            | 1,699       |         |  |   | 8,940      |            |  |         | 7,503       |   |         |             | (294  | )           |  |   | 7,797    |   |  |  | 14.7  | % 
|                                                                                        |  |                                |          |            |                                |            |             |         |  |   |            |            |  |         |             |   |         |             |       |             | 
|(Loss) income from continuing operations                                                |  | $                              | (33,286  | )          |                                | $          | (2,772      | )       |  | $ | (30,514    | )          |  | $       | (29,172     | ) |         | $           | 479   |             |  | $ | (29,651  | ) |  |  | (2.9  | )%
|                                                                                        |  |                                |          |            |                                |            |             |         |  |   |            |            |  |         |             |   |         |             |       |             | 






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

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Subscribers








Operating Revenue.


Service revenue.




27



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Roaming revenue.




Equipment and other revenue.




Operating Expenses




Cost of service.


28



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|                      |  |                             |        |  |                           |  |        |        |  |   |            |  |  |        |        |  |            |   |         |        |  |  |            |  |  |   |         |  |  |  |        | 
|--------------------- |  | --------------------------- | ------ |  | ------------------------- |  | ------ | ------ |  | - | ---------- |  |  | ------ | ------ |  | ---------- | - | ------- | ------ |  |  | ---------- |  |  | - | ------- |  |  |  | ------ | 
|                      |  | Three Months Ended June 30, |        |  | Six Months Ended June 30, | 
|                      |  |                             |        |  |                           | 
|                      |  | 2005                        |        |  | 2004                      |  |        | 2005   |  |   | 2004       | 
|                      |  |                             |        |  |                           |  |        |        |  |   |            | 
|                      |  | Amount                      |        |  | Percentage                |  |        | Amount |  |   | Percentage |  |  | Amount |        |  | Percentage |   |         | Amount |  |  | Percentage | 
|                      |  |                             |        |  |                           |  |        |        |  |   |            |  |  |        |        |  |            |   |         |        |  |  |            | 
|                      |  | ($ in thousands)            |        |  | ($ in thousands)          | 
|Network costs         |  | $                           | 53,802 |  |                           |  | 78.0%  |        |  | $ | 41,694     |  |  |        | 67.3%  |  |            | $ | 103,440 |        |  |  | 73.2%      |  |  | $ | 76,280  |  |  |  | 65.7%  | 
|Roaming costs         |  |                             | 15,163 |  |                           |  | 22.0%  |        |  |   | 20,278     |  |  |        | 32.7%  |  |            |   | 37,824  |        |  |  | 26.8%      |  |  |   | 39,878  |  |  |  | 34.3%  | 
|                      |  |                             |        |  |                           |  |        |        |  |   |            |  |  |        |        |  |            |   |         |        |  |  |            | 
|Total cost of service |  | $                           | 68,965 |  |                           |  | 100.0% |        |  | $ | 61,972     |  |  |        | 100.0% |  |            | $ | 141,264 |        |  |  | 100.0%     |  |  | $ | 116,158 |  |  |  | 100.0% | 
|                      |  |                             |        |  |                           |  |        |        |  |   |            |  |  |        |        |  |            |   |         |        |  |  |            | 





Cost of equipment.




Marketing and selling costs.




29



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General and administrative costs.




Depreciation and amortization expense.


Gain on disposition of operating assets.


Non-Operating Results


Interest expense.


Gain from extinguishment of debt.


Gain on redemption and repurchases of mandatorily redeemable
preferred stock.


Dividends on mandatorily redeemable preferred stock.


Other (expense) income, net.


30



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Discontinued operations.


LIQUIDITY AND CAPITAL RESOURCES








| |                          
| | -------------------------
| | Tower Sale and Lease-Back





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







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Capital Resources


Dobson Cellular Senior Secured Credit Facility














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

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| |   |                                                                                 
| | - | --------------------------------------------------------------------------------
| |  | 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




33



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Exchange Offer




34



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##### Table of Contents







Capital Expenditures and Commitments






Contractual Obligations






Forward-Looking Statements




35



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










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



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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



37



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|                                     |  |               |            |  |               |  |           | 
|------------------------------------ |  | ------------- | ---------- |  | ------------- |  | --------- | 
|                                     |  | Class A Votes |            |  | Class A Votes | 
|Name of Nominee for Class A director |  | Cast For      |            |  | Withheld      | 
|                                     |  |               |            |  |               | 
|Mark S. Feighner                     |  |               | 97,462,633 |  |               |  | 2,433,783 | 

|                      |  |                |             |  |                |  |           | 
|--------------------- |  | -------------- | ----------- |  | -------------- |  | --------- | 
|Name of Nominee       |  | Votes Cast for |             |  | Votes Withheld | 
|                      |  |                |             |  |                | 
|Justin L. Jaschke     |  |                | 288,248,763 |  |                |  | 2,313,053 | 
|Albert H. Pharis, Jr. |  |                | 287,684,384 |  |                |  | 2,877,432 | 













| |  |                |             |  |                |  |            | 
| |  | -------------- | ----------- |  | -------------- |  | ---------- | 
| |  | Votes Cast For |             |  | Votes Withheld | 
| |  |                |             |  |                | 
| |  |                | 253,572,633 |  |                |  | 38,170,832 | 



|                |  |                |             |  |                |  |         | 
|--------------- |  | -------------- | ----------- |  | -------------- |  | ------- | 
|Name of Nominee |  | Votes Cast For |             |  | Votes Withheld | 
|                |  |                |             |  |                | 
|KPMG LLP        |  |                | 288,901,119 |  |                |  | 399,937 | 






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








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



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 |             |  | Form of Support Agreement                                                                         |  |  | (2) [10.30] | 
|        | 31.1 |             |  | Rule 13a-14(a) Certification by our principal executive
    officer                               |  |  | (3)         | 
|        | 31.2 |             |  | Rule 13a-14(a) Certification by our principal financial
    officer                               |  |  | (3)         | 
|        | 32.1 |             |  | Section 1350 Certification by our principal executive
    officer                                 |  |  | (3)         | 
|        | 32.2 |             |  | Section 1350 Certification by our principal financial
    officer                                 |  |  | (3)         | 






|    |                                                                                                                                                                                               
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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 as an exhibit to the Registrants Registration
    Statement on Form S-4 (File No. 333-126247) as the
    exhibit number indicated in brackets and incorporated by
    reference herein.
|   
|(3) | Filed herewith.                                                                                                                                                                               

38



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SIGNATURES






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



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



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

39



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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 |             |  | Form of Support Agreement                                                                         |  |  | (2) [10.30] | 
|        | 31.1 |             |  | Rule 13a-14(a) Certification by our principal executive
    officer                               |  |  | (3)         | 
|        | 31.2 |             |  | Rule 13a-14(a) Certification by our principal financial
    officer                               |  |  | (3)         | 
|        | 32.1 |             |  | Section 1350 Certification by our principal executive
    officer                                 |  |  | (3)         | 
|        | 32.2 |             |  | Section 1350 Certification by our principal financial
    officer                                 |  |  | (3)         | 






|    |                                                                                                                                                                                               
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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 as an exhibit to the Registrants Registration
    Statement on Form S-4 (File No. 333-126247) as the
    exhibit number indicated in brackets and incorporated by
    reference herein.
|   
|(3) | Filed herewith.