----

----

| x | ANNUALREPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-------------------------------------------------------------------------------------|

| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|------------------------------------------------------------------------------------------|

| Iowa                                                           | 42-0895882                           |
|----------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

| 112 East Main, P.O. Box 190, Breda, Iowa | 51436      |
|------------------------------------------|------------|
| (Address of principal executive offices) | (Zip Code) |

----

----

----

| Large accelerated filer     o      | Accelerated filer                         o |
|-------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                        |                                                                                                                                                           |
| Non-accelerated filer       o | Smaller reporting company      x                                                                                                 |

----

|   | a) | adds and includes the now unqualified audit opinion of Kiesling Associates LLP in place of the qualified opinion filed with the Original 10-K.  Other than the unqualified audit opinion for the years ending December 31, 2008, and December 31, 2009, there were no changes to the financial statements themselves; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | includes the audit opinion of Deloitte & Touche LLP for Breda’s outside equity investment, RSA #7 Limited Partnership (“RSA #7”); includes the 2008 audit opinion of Schenck SC for Breda’s outside equity investment, Spiralight Network, LLC; and includes the 2009 audit opinion of Schenck SC for Hilbert Communications, LLC as described in Note 4 to Breda’s financial statements.  No opinion of either Deloitte & Touche LLP or Schenck SC was included in the Original 10-K; and |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c)  | includes audited financial statements for Breda’s outside equity investments, Iowa 8 Monona Limited Partnership (“RSA #8”), and Iowa RSA No. 9 Limited Partnership (“RSA #9”).  Breda’s portion of RSA #8 is represented by its investment in West Iowa Cellular, Inc. as described in Note 4 to Breda’s financial statements.  Note 4 to Breda’s financial statements reports Breda’s and its subsidiary, Westside Independent Telephone Company’s, combined 25% interest in West Iowa Cellular, Inc.  West Iowa Cellular, Inc. is the 51% owner of West Iowa Cellular of Iowa Limited Partnership, which holds a 42.43% general partner interest in RSA #8. |
|--------|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Item 8. | Financial Statements. |
|---------|-----------------------|

----

BREDA 

|                                                  | Page   |
|-------------------------------------------------------|--------|
|                                                  |   |
| Consolidated Financial Statements:                    |   |
|                                                  |   |
| Independent Auditor’s Reports                   | 3      |
|                                                  |   |
| Consolidated Balance Sheets                           | 8      |
|                                                  |   |
| Consolidated Statements of Income                     | 9      |
|                                                  |   |
| Consolidated Statements of Stockholders’ Equity | 10     |
|                                                  |   |
| Consolidated Statements of Cash Flow                  | 11     |
|                                                  |   |
| Notes to Consolidated Financial Statements            | 12     |
|                                                  |   |
| Consolidated Financial Statements for RSA #8          | 31     |
|                                                  |   |
| Consolidated Financial Statements for RSA #9          | 46     |

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REPORT

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INDEPENDENT 

----

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BREDA 

|                                                                                                                                                            |   | December 31, |       |   | December 31,    |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|------------|--------|-----------------|--------|
|                                                                                                                                                            |   | 2009         |       |   | 2008 (Restated) |   |
| ASSETS                                                                                                                                                          |   |         |       |   |            |   |
|                                                                                                                                                            |   |         |       |   |            |   |
| CURRENT ASSETS                                                                                                                                                  |   |         |       |   |            |   |
| Cash and cash equivalents                                                                                                                                       |   | $            | 4,987,960  |   |            | $      | 1,317,462 |   |
| Marketable securities                                                                                                                                           |   |         | 490,724    |   |            |   | 604,435 |   |
| Accounts receivable, net of allowances of $159,831 and $3,415,824 in 2009 and 2008, respectively                                                                |   |         | 1,928,483  |   |            |   | 3,290,640 |   |
| Interest receivable                                                                                                                                             |   |         | 62,693     |   |            |   | 81,730 |   |
| Notes receivable, less impairment of $445,253 in 2008                                                                                                           |   |         | -          |   |            |   | 73,759 |   |
| Inventory, at average cost                                                                                                                                      |   |         | 297,678    |   |            |   | 227,731 |   |
| Prepaid income taxes                                                                                                                                            |   |         | 1,310,951  |   |            |   | 406,451 |   |
| Other                                                                                                                                                           |   |         | 291,977    |   |            |   | 112,438 |   |
| Deferred income taxes                                                                                                                                           |   |         | 58,862     |   |            |   | 718,595 |   |
|                                                                                                                                                            |   |         | 9,429,328  |   |            |   | 6,833,241 |   |
|                                                                                                                                                            |   |         |       |   |            |   |   |   |
| OTHER NONCURRENT ASSETS                                                                                                                                         |   |         |       |   |            |   |   |   |
| Marketable securities                                                                                                                                           |   |         | 5,223,501  |   |            |   | 5,440,550 |   |
| Investments in unconsolidated affiliates at equity                                                                                                              |   |         | 8,537,047  |   |            |   | 8,525,861 |   |
| Other investments at cost                                                                                                                                       |   |         | 655,542    |   |            |   | 673,590 |   |
| Goodwill                                                                                                                                                        |   |         | 918,715    |   |            |   | 896,812 |   |
|                                                                                                                                                            |   |         | 15,334,805 |   |            |   | 15,536,813 |   |
|                                                                                                                                                            |   |         |       |   |            |   |   |   |
| PROPERTY, PLANT AND EQUIPMENT                                                                                                                                   |   |         | 8,102,372  |   |            |   | 6,857,853 |   |
|                                                                                                                                                            |   |         |       |   |            |   |   |   |
| TOTAL ASSETS                                                                                                                                                    |   | $            | 32,866,505 |   |            | $      | 29,227,907 |   |
|                                                                                                                                                            |   |         |       |   |            |   |   |   |
|                                                                                                                                                            |   |         |       |   |            |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                            |   |         |       |   |            |   |   |   |
|                                                                                                                                                            |   |         |       |   |            |   |   |   |
| CURRENT LIABILITIES                                                                                                                                             |   |         |       |   |            |   |   |   |
| Current portion of long-term debt                                                                                                                               |   | $            | 14,144     |   |            | $      | 200,507 |   |
| Accounts payable                                                                                                                                                |   |         | 2,091,609  |   |            |   | 1,751,822 |   |
| Accrued taxes                                                                                                                                                   |   |         | 157,740    |   |            |   | 191,943 |   |
| Other                                                                                                                                                           |   |         | 136,722    |   |            |   | 124,536 |   |
|                                                                                                                                                            |   |         | 2,400,215  |   |            |   | 2,268,808 |   |
|                                                                                                                                                            |   |         |       |   |            |   |   |   |
| LONG-TERM DEBT, less current portion                                                                                                                            |   |         | 1,548,575  |   |            |   | 750,988 |   |
|                                                                                                                                                            |   |         |       |   |            |   |   |   |
| OTHER NONCURRENT LIABILITIES                                                                                                                                    |   |         | 2,468,101  |   |            |   | 1,947,128 |   |
|                                                                                                                                                            |   |         |       |   |            |   |   |   |
| STOCKHOLDERS' EQUITY                                                                                                                                            |   |         |       |   |            |   |   |   |
| Common stock, Class A - no par value, 5,000,000 shares authorized, 26,109 and 27,924 shares issued and outstanding at $547 and $509 stated values, respectively |   |         | 14,281,623 |   |            |   | 14,213,316 |   |
| Common stock, Class B - no par value, 5,000,000 shares authorized, 4,742 and 2,927 shares issued and outstanding at $547 and $509 stated values, respectively   |   |         | 2,593,874  |   |            |   | 1,489,843 |   |
| Retained earnings                                                                                                                                               |   |         | 9,508,416  |   |            |   | 8,421,630 |   |
|                                                                                                                                                            |   |         | 26,383,913 |   |            |   | 24,124,789 |   |
|                                                                                                                                                            |   |         |       |   |            |   |   |   |
| MINORITY INTEREST                                                                                                                                               |   |         | 65,701     |   |            |   | 136,194 |   |
|                                                                                                                                                            |   |         |       |   |            |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                      |   | $            | 32,866,505 |   |            | $      | 29,227,907 |   |

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BREDA 

|                                            |   | For the Years Ended |      |
|-------------------------------------------------|--------|---------------------|-----------|
|                                            |   | 2009                |      |   | 2008 (Restated) |   |
|                                            |   |                |      |   |   |   |
| OPERATING REVENUES                              |   | $                   | 9,069,766 |   |   | $ | 9,687,237 |   |
|                                            |   |                |      |   |   |   |   |   |
| OPERATING EXPENSES                              |   |                |      |   |   |   |   |   |
| Cost of services                                |   |                | 4,550,643 |   |   |   | 5,226,498 |   |
| Depreciation and amortization                   |   |                | 1,040,454 |   |   |   | 979,478 |   |
| Selling, general, and administrative            |   |                | 2,510,292 |   |   |   | 2,367,572 |   |
|                                            |   |                | 8,101,389 |   |   |   | 8,573,548 |   |
|                                            |   |                |      |   |   |   |   |   |
| OPERATING INCOME                                |   |                | 968,377   |   |   |   | 1,113,689 |   |
|                                            |   |                |      |   |   |   |   |   |
| OTHER INCOME (EXPENSES)                         |   |                |      |   |   |   |   |   |
| Interest and dividend income                    |   |                | 391,559   |   |   |   | 442,989 |   |
| Gain on sale of investments                     |   |                | 7,513     |   |   |   | 6,018 |   |
| Gain or (Loss) on disposal of assets            |   |                | (71,883   | ) |   |   | 15,561 |   |
| Interest expense                                |   |                | (26,321   | ) |   |   | (77,354 | ) |
| Income from equity investments                  |   |                | 1,827,141 |   |   |   | 1,749,349 |   |
| Gain or (Loss) on impairment of note receivable |   |                | 445,253   |   |   |   | (443,013 | ) |
| Other, net                                      |   |                | (39,770   | ) |   |   | (45,717 | ) |
|                                            |   |                | 2,533,492 |   |   |   | 1,647,833 |   |
|                                            |   |                |      |   |   |   |   |   |
| INCOME BEFORE INCOME TAXES                      |   |                | 3,501,869 |   |   |   | 2,761,522 |   |
|                                            |   |                |      |   |   |   |   |   |
| INCOME TAXES                                    |   |                | 998,335   |   |   |   | 830,299 |   |
|                                            |   |                |      |   |   |   |   |   |
| NET INCOME BEFORE MINORITY INTEREST             |   |                | 2,503,534 |   |   |   | 1,931,223 |   |
|                                            |   |                |      |   |   |   |   |   |
| MINORITY INTEREST                               |   |                | 2,398     |   |   |   | (2,668 | ) |
|                                            |   |                |      |   |   |   |   |   |
| NET INCOME                                      |   | $                   | 2,505,932 |   |   | $ | 1,928,555 |   |
|                                            |   |                |      |   |   |   |   |   |
| NET INCOME PER COMMON SHARE                     |   | $                   | 81.23     |   |   | $ | 62.50 |   |
|                                            |   |                |      |   |   |   |   |   |
| DIVIDENDS PER COMMON SHARE                      |   | $                   | 8.00      |   |   | $ | 8.00 |   |

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BREDA 

|                          |   | Common Stock, A and B Class |   |   | Retained |   |       |     |   |
|-------------------------------|--------|-----------------------------|--------|--------|----------|--------|------------|----------|--------|
|                          |   | Shares                      |   |   | Amount   |   |       | Earnings |   |   | Total |   |
|                          |   |                        |   |   |     |   |       |     |   |   |   |   |
| Balance at December 31, 2007  |   |                        | 30,936 |   |     | $      | 14,137,752 |     |   | $ | 8,344,135 |   |   | $ | 22,481,887 |   |
|                          |   |                        |   |   |     |   |       |     |   |   |   |   |   |   |   |   |
| Comprehensive income:         |   |                        |   |   |     |   |       |     |   |   |   |   |   |   |   |   |
| Net Income                    |   |                        |   |   |     |   |       |     |   |   | 1,928,555 |   |   |   | 1,928,555 |   |
|                          |   |                        |   |   |     |   |       |     |   |   |   |   |   |   |   |   |
| Dividends paid                |   |                        |   |   |     |   |       |     |   |   | (246,808 | ) |   |   | (246,808 | ) |
|                          |   |                        |   |   |     |   |       |     |   |   |   |   |   |   |   |   |
| Common stock redeemed, net    |   |                        | (85    | )      |     |   | (38,845    | )        |   |   |   |   |   |   | (38,845 | ) |
|                          |   |                        |   |   |     |   |       |     |   |   |   |   |   |   |   |   |
| Stated value stock adjustment |   |                        |   |   |     |   | 1,604,252  |     |   |   | (1,604,252 | ) |   |   |   |   |
|                          |   |                        |   |   |     |   |       |     |   |   |   |   |   |   |   |   |
| Balance at December 31, 2008  |   |                        | 30,851 |   |     |   | 15,703,159 |     |   |   | 8,421,630 |   |   |   | 24,124,789 |   |
|                          |   |                        |   |   |     |   |       |     |   |   |   |   |   |   |   |   |
| Comprehensive income:         |   |                        |   |   |     |   |       |     |   |   |   |   |   |   |   |   |
| Net Income                    |   |                        |   |   |     |   |       |     |   |   | 2,505,932 |   |   |   | 2,505,932 |   |
|                          |   |                        |   |   |     |   |       |     |   |   |   |   |   |   |   |   |
| Dividends paid                |   |                        |   |   |     |   |       |     |   |   | (246,808 | ) |   |   | (246,808 | ) |
|                          |   |                        |   |   |     |   |       |     |   |   |   |   |   |   |   |   |
| Common stock redeemed, net    |   |                        |   |   |     |   |       |     |   |   |   |   |   |   | - |   |
|                          |   |                        |   |   |     |   |       |     |   |   |   |   |   |   |   |   |
| Stated value stock adjustment |   |                        |   |   |     |   | 1,172,338  |     |   |   | (1,172,338 | ) |   |   |   |   |
|                          |   |                        |   |   |     |   |       |     |   |   |   |   |   |   |   |   |
| Balance at December 31, 2009  |   |                        | 30,851 |   |     | $      | 16,875,497 |     |   | $ | 9,508,416 |   |   | $ | 26,383,913 |   |

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BREDA 

|                                                                                                                                  |   | 2009   |       |   | 2008 (Restated) |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|-----------------|--------|
|                                                                                                                                  |   |   |       |   |            |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                                                                  |   |   |       |   |            |   |
| Net income                                                                                                                            |   | $      | 2,505,932  |   |            | $      | 1,928,555 |   |
| Adjustments to reconcile net income to cash provided by operating activities:                                                         |   |   |       |   |            |   |   |   |
| Depreciation and amortization                                                                                                         |   |   | 1,040,454  |   |            |   | 979,478 |   |
| Minority interest                                                                                                                     |   |   | (2,398     | )      |            |   | 2,668 |   |
| Deferred income taxes                                                                                                                 |   |   | 1,180,707  |   |            |   | 29,220 |   |
| Amortization of investment premium/discount - net                                                                                     |   |   | 36,764     |   |            |   | 43,363 |   |
| Equity income in unconsolidated affiliates, net of distributions received of $1,831,455 and $2,529,549 in 2009 and 2008, respectively |   |   | 4,314      |   |            |   | 780,200 |   |
| (Gain) or loss on disposal of property                                                                                                |   |   | 71,883     |   |            |   | (15,561 | ) |
| (Gain) or loss on impairment of note receivable                                                                                       |   |   | (445,253   | )      |            |   | 445,253 |   |
| Gain on sale of marketable securities                                                                                                 |   |   | (7,513     | )      |            |   | (6,018 | ) |
| Changes in assets and liabilities:                                                                                                    |   |   |       |   |            |   |   |   |
| (Increase) or decrease in assets                                                                                                      |   |   | 205,305    |   |            |   | (2,108,704 | ) |
| Increase or (decrease) in liabilities                                                                                                 |   |   | (3,824     | )      |            |   | 703,518 |   |
|                                                                                                                                  |   |   |       |   |            |   |   |   |
| Net cash provided by operating activities                                                                                             |   | $      | 4,586,371  |   |            | $      | 2,781,972 |   |
|                                                                                                                                  |   |   |       |   |            |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                                                                  |   |   |       |   |            |   |   |   |
| Capital expenditures                                                                                                                  |   |   | (2,114,856 | )      |            |   | (2,763,749 | ) |
| Proceeds from the sale of assets                                                                                                      |   |   | 79,594     |   |            |   | 18,835 |   |
| Purchase of marketable securities                                                                                                     |   |   | (598,466   | )      |            |   | (419,433 | ) |
| Purchase of equity investments                                                                                                        |   |   | (15,500    | )      |            |   | (1,422,000 | ) |
| Purchase of other investments - at cost                                                                                               |   |   | (6,055     | )      |            |   | (15,621 | ) |
| Purchase of investment in a subsidiary                                                                                                |   |   | (68,095    | )      |            |   | - |   |
| Proceeds from the sale of marketable securities                                                                                       |   |   | 899,975    |   |            |   | 2,192,168 |   |
| Proceeds from the sale of other investments - at cost                                                                                 |   |   | 24,103     |   |            |   | 28,197 |   |
| Proceeds from the receipt of principal on note receivable                                                                             |   |   | 519,011    |   |            |   | 254,384 |   |
| Issuance of notes receivable                                                                                                          |   |   | -          |   |            |   | (39,012 | ) |
| Net cash used in investing activities                                                                                                 |   | $      | (1,280,289 | )      |            | $      | (2,166,231 | ) |
|                                                                                                                                  |   |   |       |   |            |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                                                                  |   |   |       |   |            |   |   |   |
| Repayment of long term debt                                                                                                           |   |   | (953,105   | )      |            |   | (187,710 | ) |
| Proceeds from the issuance of long term debt                                                                                          |   |   | 1,564,329  |   |            |   | - |   |
| Common stock redeemed, net                                                                                                            |   |   | -          |   |            |   | (38,845 | ) |
| Dividends paid                                                                                                                        |   |   | (246,808   | )      |            |   | (246,808 | ) |
| Net cash provided by (used in) financing activities                                                                                   |   | $      | 364,416    |   |            | $      | (473,363 | ) |
|                                                                                                                                  |   |   |       |   |            |   |   |   |
| Net Increase in Cash and Cash Equivalents                                                                                             |   | $      | 3,670,498  |   |            | $      | 142,378 |   |
|                                                                                                                                  |   |   |       |   |            |   |   |   |
| Cash and Cash Equivalents at Beginning of Period                                                                                      |   |   | 1,317,462  |   |            |   | 1,175,084 |   |
|                                                                                                                                  |   |   |       |   |            |   |   |   |
| Cash and Cash Equivalents at End of Period                                                                                            |   | $      | 4,987,960  |   |            | $      | 1,317,462 |   |
|                                                                                                                                  |   |   |       |   |            |   |   |   |
| Supplemental Disclosures of Cash Flow Information                                                                                     |   |   |       |   |            |   |   |   |
| Cash paid during the period for:                                                                                                      |   |   |       |   |            |   |   |   |
| Interest                                                                                                                              |   | $      | 26,321     |   |            | $      | 77,354 |   |
| Income taxes                                                                                                                          |   | $      | 722,128    |   |            | $      | 1,388,117 |   |

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BREDA 

| NOTE 1. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
|---------|--------------------------------------------|

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| NOTE 1. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
|---------|--------------------------------------------------------|

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Table of Contents

| NOTE 1. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
|---------|--------------------------------------------------------|

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| NOTE 1. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
|---------|--------------------------------------------------------|

|                         |   | Difference |    |
|------------------------------|--------|------------|---------|
| Total assets                 |   | $          | 136,195 |   |
| Total liabilities and equity |   |       | 136,195 |   |
|                         |   |       |    |   |
|                         |   |       |    |   |
|                         |   | Difference |    |
| Operating revenues           |   | $          | 45,656  |   |
| Operating expenses           |   |       | 41,671  |   |
| Operating income             |   |       | 3,985   |   |
| Income before income taxes   |   |       | 2,668   |   |

| NOTE 2. | MARKETABLE SECURITIES |
|---------|-----------------------|

|                   |   |        |      |   | Gross      |   |      | Gross      |   |   |     |   |
|------------------------|--------|-------------|-----------|--------|------------|--------|-----------|------------|--------|--------|----------|--------|
|                   |   | Unamortized |      |   | Unrealized |   |      | Unrealized |   |   | Fair     |   |
|                   |   | Cost        |      |   | Gains      |   |      | Losses     |   |   | Value    |   |
|                   |   |        |      |   |       |   |      |       |   |   |     |   |
| December 31, 2009      |   |        |      |   |       |   |      |       |   |   |     |   |
|                   |   |        |      |   |       |   |      |       |   |   |     |   |
| Held-to-Maturity:      |   |        |      |   |       |   |      |       |   |   |     |   |
| Municipal bonds        |   | $           | 3,581,827 |   |       | $      | 131,229   |       |   | $      | (5,206   | )      |   | $ | 3,707,850 |   |
| Government securities  |   |        | 2,132,398 |   |       |   | 31,147    |       |   |   | (15,761  | )      |   |   | 2,147,784 |   |
|                   |   | $           | 5,714,225 |   |       | $      | 162,376   |       |   | $      | (20,967  | )      |   | $ | 5,855,634 |   |
|                   |   |        |      |   |       |   |      |       |   |   |     |   |   |   |   |   |
| December 31, 2008      |   |        |      |   |       |   |      |       |   |   |     |   |   |   |   |   |
|                   |   |        |      |   |       |   |      |       |   |   |     |   |   |   |   |   |
| Held-to-Maturity:      |   |        |      |   |       |   |      |       |   |   |     |   |   |   |   |   |
| Municipal bonds        |   | $           | 3,641,774 |   |       | $      | 77,334    |       |   | $      | (37,007  | )      |   | $ | 3,682,101 |   |
| Government securities  |   |        | 2,403,211 |   |       |   | 13,958    |       |   |   | (181,424 | )      |   |   | 2,235,745 |   |
|                   |   | $           | 6,044,985 |   |       | $      | 91,292    |       |   | $      | (218,431 | )      |   | $ | 5,917,846 |   |
|                   |   |        |      |   |       |   |      |       |   |   |     |   |   |   |   |   |
|                   |   |        | 2009      |   |       |   | 2008      |       |   |   |     |   |   |   |   |   |
| Amounts classified as: |   |        |      |   |       |   |      |       |   |   |     |   |   |   |   |   |
| Current                |   | $           | 490,724   |   |       | $      | 604,435   |       |   |   |     |   |   |   |   |   |
| Noncurrent             |   |        | 5,223,501 |   |       |   | 5,440,550 |       |   |   |     |   |   |   |   |   |
| Total                  |   | $           | 5,714,225 |   |       | $      | 6,044,985 |       |   |   |     |   |   |   |   |   |

----

Table of Contents

| NOTE 2. | MARKETABLE SECURITIES (Continued) |
|---------|-----------------------------------|

|                                     |   | Unamortized |      |   |       |   |
|------------------------------------------|--------|-------------|-----------|--------|------------|--------|
|                                     |   | Cost        |      |   | Fair Value |   |
| Due in one year or less                  |   | $           | 490,724   |   |       | $      | 502,517 |   |
| Due after one year through three years   |   |        | 1,249,076 |   |       |   | 1,299,387 |   |
| Due after three years through five years |   |        | 1,116,373 |   |       |   | 1,160,268 |   |
| Due after five years                     |   |        | 2,858,052 |   |       |   | 2,893,462 |   |
|                                     |   | $           | 5,714,225 |   |       | $      | 5,855,634 |   |

| NOTE 3. | NOTE RECEIVABLE |
|---------|-----------------|

|                           |   | December 31, |   |   | December 31, |   |
|--------------------------------|--------|-------------------|--------|--------|-------------------|--------|
|                           |   | 2009              |   |   | 2008              |   |
|                           |   |              |   |   |              |   |
| Spiralight Network, LLC - 8.5% |   |              | -      |   |              |   | 519,012 |   |
| Less impairment                |   |              | -      |   |              |   | (445,253 | ) |
|                           |   |              | -      |   |              |   | 73,759 |   |
| Less current portion           |   |              | -      |   |              |   | (73,759 | ) |
|                           |   | $                 | -      |   |              | $      | - |   |

----

Table of Contents

| NOTE 4. | OTHER INVESTMENTS |
|---------|-------------------|

|                           |   | 2009   |      |   | 2008   |   |
|--------------------------------|--------|--------|-----------|--------|--------|--------|
|                           |   |   |      |   |   |   |
| Alpine Communications, L.C.    |   | $      | 3,389,504 |   |   | $      | 3,085,415 |   |
| West Iowa Cellular, Inc.       |   |   | 1,547,040 |   |   |   | 1,632,882 |   |
| RSA #1, Ltd.                   |   |   | 1,660,481 |   |   |   | 1,561,117 |   |
| RSA #7, Ltd.                   |   |   | 594,949   |   |   |   | 555,730 |   |
| RSA #9, Ltd.                   |   |   | 1,011,261 |   |   |   | 973,207 |   |
| Quad County Communications     |   |   | 14,955    |   |   |   | 37,021 |   |
| Guthrie Group, L.L.C.          |   |   | 25,529    |   |   |   | 31,488 |   |
| Bug Tussel Wireless, L.L.C.    |   |   | -         |   |   |   | 649,001 |   |
| Spiralight Network, L.L.C.     |   |   | -         |   |   |   | - |   |
| Hilbert Communications, L.L.C. |   |   | 293,328   |   |   |   | - |   |
|                           |   | $      | 8,537,047 |   |   | $      | 8,525,861 |   |

|        |   | Alpine Communications, L.C. |       |
|-------------|--------|-----------------------------|------------|
|        |   |                        |       |   |   |   |
|        |   | 2009                        |       |   | 2008 |   |
|        |   |                        |       |   |   |   |
| Assets      |   | $                           | 23,955,426 |   |   | $ | 24,706,029 |   |
| Liabilities |   |                        | 11,979,642 |   |   |   | 13,928,446 |   |
| Equity      |   | $                           | 11,975,784 |   |   | $ | 10,777,583 |   |
|        |   |                        |       |   |   |   |   |   |
| Revenues    |   | $                           | 8,142,250  |   |   | $ | 7,981,757 |   |
| Expenses    |   |                        | 6,594,048  |   |   |   | 6,196,723 |   |
| Net Income  |   | $                           | 1,548,202  |   |   | $ | 1,785,034 |   |

| West Iowa Cellular, Inc., |   |   | 25.0 | % |
|---------------------------|--------|--------|------|---|
| RSA #1, Ltd.              |   |   | 10.3 | % |
| RSA #7, Ltd.              |   |   | 7.1  | % |
| RSA #9, Ltd.              |   |   | 16.7 | % |

----

Table of Contents

| NOTE 4. | OTHER INVESTMENTS (Continued) |
|---------|-------------------------------|

| 2009        |   |                     |      |   |   |   |       |   |   |   |       |   |
|-------------|--------|--------------------------|-----------|--------|--------|--------|------------|--------|--------|--------|------------|--------|
|        |   | West Iowa Cellular, Inc. |      |   | RSA #1 |   |       | RSA #7 |   |   | RSA #9     |   |
|        |   |                     |      |   |   |   |       |   |   |   |       |   |
| Assets      |   | $                        | 6,670,576 |   |   | $      | 17,039,404 |   |   | $      | 11,163,461 |   |   | $ | 8,339,709 |   |
| Liabilities |   |                     | 482,417   |   |   |   | 1,860,827  |   |   |   | 2,848,034  |   |   |   | 2,272,264 |   |
| Equity      |   | $                        | 6,188,159 |   |   | $      | 15,178,577 |   |   | $      | 8,315,427  |   |   | $ | 6,067,445 |   |
|        |   |                     |      |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Revenues    |   | $                        | 3,850,976 |   |   | $      | 10,800,091 |   |   | $      | 22,982,136 |   |   | $ | 15,284,205 |   |
| Expenses    |   |                     | 1,594,348 |   |   |   | 8,238,302  |   |   |   | 16,454,488 |   |   |   | 11,616,136 |   |
| Net Income  |   | $                        | 2,256,628 |   |   | $      | 2,561,789  |   |   | $      | 6,527,648  |   |   | $ | 3,668,069 |   |

| 2008        |   |           |      |   |   |   |       |   |   |   |       |   |
|-------------|--------|----------------|-----------|--------|--------|--------|------------|--------|--------|--------|------------|--------|
|        |   | West Iowa      |      |   |   |   |       |   |   |   |       |   |
|        |   | Cellular, Inc. |      |   | RSA #1 |   |       | RSA #7 |   |   | RSA #9     |   |
|        |   |           |      |   |   |   |       |   |   |   |       |   |
| Assets      |   | $              | 6,942,909 |   |   | $      | 15,635,382 |   |   | $      | 10,806,436 |   |   | $ | 7,822,542 |   |
| Liabilities |   |           | 411,378   |   |   |   | 1,413,854  |   |   |   | 3,039,166  |   |   |   | 1,983,413 |   |
| Equity      |   | $              | 6,531,531 |   |   | $      | 14,221,528 |   |   | $      | 7,767,270  |   |   | $ | 5,839,129 |   |
|        |   |           |      |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Revenues    |   | $              | 3,675,022 |   |   | $      | 10,374,220 |   |   | $      | 21,795,116 |   |   | $ | 13,048,641 |   |
| Expenses    |   |           | 1,511,719 |   |   |   | 7,008,521  |   |   |   | 16,138,900 |   |   |   | 9,353,024 |   |
| Net Income  |   | $              | 2,163,303 |   |   | $      | 3,365,699  |   |   | $      | 5,656,216  |   |   | $ | 3,695,617 |   |

----

Table of Contents

| NOTE 4. | OTHER INVESTMENTS (Continued) |
|---------|-------------------------------|

|        |   | Quad County Communications |    |
|-------------|--------|----------------------------|---------|
|        |   |                       |    |   |   |   |
|        |   | 2009                       |    |   | 2008 |   |
|        |   |                       |    |   |   |   |
| Assets      |   | $                          | 49,189  |   |   | $ | 116,125 |   |
| Liabilities |   |                       | 4,324   |   |   |   | 5,061 |   |
| Equity      |   | $                          | 44,865  |   |   | $ | 111,064 |   |
|        |   |                       |    |   |   |   |   |   |
| Revenues    |   | $                          | 24,214  |   |   | $ | 35,407 |   |
| Expenses    |   |                       | 116,030 |   |   |   | 67,330 |   |
| Net Income  |   | $                          | (91,816 | ) |   | $ | (31,923 | ) |

----

Table of Contents

| NOTE 4. | OTHER INVESTMENTS (Continued) |
|---------|-------------------------------|

| 2009        |   |                            |    |   |                  |   |
|-------------|--------|---------------------------------|---------|--------|-----------------------|--------|
|        |   | Carroll County Wireless, L.L.C. |    |   | Guthrie Group, L.L.C. |   |
|        |   |                            |    |   |                  |   |
| Assets      |   | $                               | 197,099 |   |                  | $      | 69,587 |   |
| Liabilities |   |                            | -       |   |                  |   | - |   |
| Equity      |   | $                               | 197,099 |   |                  | $      | 69,587 |   |
|        |   |                            |    |   |                  |   |   |   |
| Revenues    |   | $                               | 33,615  |   |                  | $      | 3,850 |   |
| Expenses    |   |                            | 40,808  |   |                  |   | 44,217 |   |
| Net Income  |   | $                               | (7,193  | )      |                  | $      | (40,367 | ) |

| 2008        |   |                            |    |   |                  |   |
|-------------|--------|---------------------------------|---------|--------|-----------------------|--------|
|        |   | Carroll County Wireless, L.L.C. |    |   | Guthrie Group, L.L.C. |   |
|        |   |                            |    |   |                  |   |
| Assets      |   | $                               | 204,291 |   |                  | $      | 94,463 |   |
| Liabilities |   |                            | -       |   |                  |   | - |   |
| Equity      |   | $                               | 204,291 |   |                  | $      | 94,463 |   |
|        |   |                            |    |   |                  |   |   |   |
| Revenues    |   | $                               | 45,671  |   |                  | $      | 4,814 |   |
| Expenses    |   |                            | 41,671  |   |                  |   | 37,017 |   |
| Net Income  |   | $                               | 4,000   |   |                  | $      | (32,203 | ) |

----

Table of Contents

| NOTE 4. | OTHER INVESTMENTS (Continued) |
|---------|-------------------------------|

|        |   | Bug Tussel Wireless, L.L.C. |       |
|-------------|--------|-----------------------------|------------|
|        |   |                        |       |   |   |   |
|        |   | 2009                        |       |   | 2008 |   |
|        |   |                        |       |   |   |   |
| Assets      |   | $                           | 17,355,477 |   |   | $ | 17,627,571 |   |
| Liabilities |   |                        | 12,296,277 |   |   |   | 12,955,330 |   |
| Equity      |   | $                           | 5,059,200  |   |   | $ | 4,672,241 |   |
|        |   |                        |       |   |   |   |   |   |
| Revenues    |   | $                           | 316,766    |   |   | $ | 14,031,407 |   |
| Expenses    |   |                        | 618,104    |   |   |   | 14,256,407 |   |
| Net Income  |   | $                           | (301,338   | ) |   | $ | (225,000 | ) |

----

Table of Contents

| NOTE 4. | OTHER INVESTMENTS (Continued) |
|---------|-------------------------------|

|        |   | Spiralight Network, L.L.C. |       |
|-------------|--------|----------------------------|------------|
|        |   |                       |       |   |   |   |
|        |   | 2009                       |       |   | 2008 |   |
|        |   |                       |       |   |   |   |
| Assets      |   | $                          | 2,787,947  |   |   | $ | 2,100,128 |   |
| Liabilities |   |                       | 4,704,486  |   |   |   | 3,251,268 |   |
| Equity      |   | $                          | (1,916,539 | ) |   | $ | (1,151,140 | ) |
|        |   |                       |       |   |   |   |   |   |
| Revenues    |   | $                          | 136,469    |   |   | $ | 3,236,060 |   |
| Expenses    |   |                       | 250,049    |   |   |   | 5,886,060 |   |
| Net Income  |   | $                          | (113,580   | ) |   | $ | (2,650,000 | ) |

|        |   | Hilbert Communications, L.L.C. |       |
|-------------|--------|--------------------------------|------------|
|        |   |                           |       |   |   |   |
|        |   | 2009                           |       |   | 2008 |   |
|        |   |                           |       |   |   |   |
| Assets      |   | $                              | 32,474,471 |   |   | $ |   |   |
| Liabilities |   |                           | 5,468,799  |   |   |   |   |   |
| Equity      |   | $                              | 27,005,672 |   |   | $ | - |   |
|        |   |                           |       |   |   |   |   |   |
| Revenues    |   | $                              | 15,973,227 |   |   | $ |   |   |
| Expenses    |   |                           | 20,832,084 |   |   |   |   |   |
| Net Income  |   | $                              | (4,858,857 | ) |   | $ | - |   |

----

Table of Contents

| NOTE 4. | OTHER INVESTMENTS (Continued) |
|---------|-------------------------------|

|                                               |   | 2009   |    |   | 2008   |   |
|----------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                               |   |   |    |   |   |   |
| Solix, Inc.                                        |   | $      | 300,000 |   |   | $      | 300,000 |   |
| Rural Telephone Finance Cooperative - certificates |   |   | 164,823 |   |   |   | 171,110 |   |
| Iowa Network Services - stock                      |   |   | 78,706  |   |   |   | 78,705 |   |
| NRTC Patronage Capital - certificates              |   |   | 20,339  |   |   |   | 32,390 |   |
| Other                                              |   |   | 91,674  |   |   |   | 91,385 |   |
|                                               |   | $      | 655,542 |   |   | $      | 673,590 |   |

| NOTE 5. | GOODWILL |
|---------|----------|

|                       |   | 2009   |    |   | 2008   |   |
|----------------------------|--------|--------|---------|--------|--------|--------|
|                       |   |   |    |   |   |   |
| Balance, beginning of year |   | $      | 896,812 |   |   | $      | 896,812 |   |
| Goodwill acquired          |   |   | 21,903  |   |   |   | - |   |
| Goodwill impairment        |   |   | -       |   |   |   | - |   |
| Balance, end of year       |   | $      | 918,715 |   |   | $      | 896,812 |   |

----

Table of Contents

| NOTE 6. | PROPERTY, PLANT AND EQUIPMENT |
|---------|-------------------------------|

|                                    |   | 2009   |       |   | 2008   |   |
|-----------------------------------------|--------|--------|------------|--------|--------|--------|
|                                    |   |   |       |   |   |   |
| Telephone plant in service:             |   |   |       |   |   |   |
| Land                                    |   | $      | 42,817     |   |   | $      | 43,408 |   |
| Buildings                               |   |   | 1,601,653  |   |   |   | 1,488,045 |   |
| Other general support assets            |   |   | 2,310,370  |   |   |   | 2,433,732 |   |
| Central office assets                   |   |   | 5,356,121  |   |   |   | 5,566,624 |   |
| Cable and wire facilities               |   |   | 6,254,357  |   |   |   | 6,025,376 |   |
| Other plant and equipment               |   |   | 1,159,874  |   |   |   | 1,148,988 |   |
|                                    |   |   | 16,725,192 |   |   |   | 16,706,173 |   |
|                                    |   |   |       |   |   |   |   |   |
| Cable television plant in service:      |   |   |       |   |   |   |   |   |
| Land                                    |   | $      | 1,000      |   |   | $      | 8,846 |   |
| Buildings                               |   |   | 43,313     |   |   |   | 132,673 |   |
| Other plant and equipment               |   |   | 172,522    |   |   |   | 182,497 |   |
| Towers, antennas and head end equipment |   |   | 321,877    |   |   |   | 1,613,382 |   |
| Cable and wire facilities               |   |   | 330,138    |   |   |   | 1,573,544 |   |
| Franchises                              |   |   | 5,992      |   |   |   | 30,092 |   |
|                                    |   |   | 874,842    |   |   |   | 3,541,034 |   |
|                                    |   |   |       |   |   |   |   |   |
| Total property, plant and equipment     |   |   | 17,600,034 |   |   |   | 20,247,207 |   |
| Less accumulated depreciation           |   |   | 11,571,548 |   |   |   | 13,744,653 |   |
|                                    |   |   | 6,028,486  |   |   |   | 6,502,554 |   |
| Plant under construction                |   |   | 2,073,886  |   |   |   | 355,299 |   |
|                                    |   | $      | 8,102,372  |   |   | $      | 6,857,853 |   |

----

Table of Contents

| NOTE 7. | INCOME TAXES |
|---------|--------------|

|                     |   | 2009   |     |   | 2008   |   |
|--------------------------|--------|--------|----------|--------|--------|--------|
|                     |   |   |     |   |   |   |
| Federal income taxes:    |   |   |     |   |   |   |
| Current tax expense      |   | $      | (161,525 | )      |   | $      | 509,074 |   |
| Deferred tax expense     |   |   | 823,893  |   |   |   | 55,623 |   |
| State income taxes:      |   |   |     |   |   |   |   |   |
| Current tax expense      |   |   | (20,847  | )      |   |   | 292,005 |   |
| Deferred tax expense     |   |   | 356,814  |   |   |   | (26,403 | ) |
| Total income tax expense |   | $      | 998,335  |   |   | $      | 830,299 |   |

|                           |   | 2009   |      |   | 2008   |   |
|--------------------------------|--------|--------|-----------|--------|--------|--------|
|                           |   |   |      |   |   |   |
| Deferred tax liabilities       |   |   |      |   |   |   |
| Federal                        |   | $      | 1,860,341 |   |   | $      | 1,645,669 |   |
| State                          |   |   | 637,491   |   |   |   | 538,397 |   |
| Total deferred tax liabilities |   |   | 2,497,832 |   |   |   | 2,184,066 |   |
|                           |   |   |      |   |   |   |   |   |
| Deferred tax assets            |   |   |      |   |   |   |   |   |
| Federal                        |   |   | (62,143   | )      |   |   | (671,364 | ) |
| State                          |   |   | (26,450   | )      |   |   | (284,169 | ) |
| Total deferred tax assets      |   |   | (88,593   | )      |   |   | (955,533 | ) |
|                           |   |   |      |   |   |   |   |   |
| Net deferred tax liabilities   |   | $      | 2,409,239 |   |   | $      | 1,228,533 |   |
|                           |   |   |      |   |   |   |   |   |
| Current portion                |   | $      | (58,862   | )      |   | $      | (718,595 | ) |
| Long-term portion              |   |   | 2,468,101 |   |   |   | 1,947,128 |   |
| Net deferred tax liability     |   | $      | 2,409,239 |   |   | $      | 1,228,533 |   |

----

Table of Contents

| NOTE 7. | INCOME TAXES (Continued) |
|---------|--------------------------|

|                                       |   | 2009   |   |   | 2008   |   |
|--------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                       |   |   |   |   |   |   |
| Statutory federal income tax rate          |   |   | 34.0   | %      |   |   | 34.0 | % |
| State income taxes, net of federal benefit |   |   | 10.1   | %      |   |   | 10.1 | % |
| Amortization of bond premiums              |   |   | 4.9    | %      |   |   | 1.0 | % |
| Dividends received deduction               |   |   | -8.0   | %      |   |   | -8.0 | % |
| Tax exempt interest                        |   |   | -9.1   | %      |   |   | -9.1 | % |
| Other                                      |   |   | -3.4   | %      |   |   | 2.1 | % |
| Effective income tax rate                  |   |   | 28.5   | %      |   |   | 30.1 | % |

| NOTE 8. | LONG-TERM DEBT |
|---------|----------------|

|                                       |   | 2009   |      |   | 2008   |   |
|--------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                       |   |   |      |   |   |   |
| Rural Telephone Finance Cooperative (RTFC) |   |   |      |   |   |   |
| 7.00% (Variable Rate)                      |   |   | -         |   |   |   | 951,495 |   |
| Rural Utilities Service (RUS)              |   |   | 1,562,719 |   |   |   | - |   |
|                                       |   |   | 1,562,719 |   |   |   | 951,495 |   |
|                                       |   |   |      |   |   | $      |   |   |
| Less current portion                       |   |   | 14,144    |   |   |   | 200,507 |   |
|                                       |   |   | 1,548,575 |   |   | $      | 750,988 |   |

| 2010           |   | $      | 14,144    |   |
|----------------|--------|--------|-----------|--------|
| 2011           |   |   | 59,145    |   |
| 2012           |   |   | 60,294    |   |
| 2013           |   |   | 62,958    |   |
| 2014           |   |   | 65,562    |   |
| 2015 and After |   |   | 1,300,616 |   |

----

Table of Contents

| NOTE 8. | LONG-TERM DEBT (Continued) |
|---------|----------------------------|

| NOTE 9. | OPERATING SEGMENTS INFORMATION |
|---------|--------------------------------|

----

Table of Contents

| NOTE 9. | OPERATING SEGMENTS INFORMATION (Continued) |
|---------|--------------------------------------------|

|                            |   | Local    |       |   |      |   |     | Internet |   |   |      |   |
|---------------------------------|--------|----------|------------|--------|-----------|--------|----------|----------|--------|--------|-----------|--------|
|                            |   | Exchange |       |   |      |   |     | Service  |   |   |      |   |
| 2009                            |   | Carrier  |       |   | Broadcast |   |     | Provider |   |   | Total     |   |
|                            |   |     |       |   |      |   |     |     |   |   |      |   |
| Revenues and sales              |   | $        | 7,917,048  |   |      | $      | 382,498  |     |   | $      | 770,220   |   |   | $ | 9,069,766 |   |
| Interest income                 |   |     | 348,770    |   |      |   | 10,348   |     |   |   | 32,441    |   |   |   | 391,559 |   |
| Interest expense                |   |     | (26,317    | )      |      |   | -        |     |   |   | (4        | )      |   |   | (26,321 | ) |
| Depreciation and amortization   |   |     | 890,583    |   |      |   | 24,561   |     |   |   | 125,310   |   |   |   | 1,040,454 |   |
| Income tax expense (benefit)    |   |     | 874,067    |   |      |   | (144,616 | )        |   |   | 268,884   |   |   |   | 998,335 |   |
| Segment profit (loss)           |   |     | 2,976,009  |   |      |   | (178,202 | )        |   |   | (291,875  | )      |   |   | 2,505,932 |   |
| Segment assets                  |   |     | 27,682,775 |   |      |   | 458,343  |     |   |   | 4,725,387 |   |   |   | 32,866,505 |   |
| Expenditures for segment assets |   |     | 1,355,088  |   |      |   | 6,341    |     |   |   | 753,427   |   |   |   | 2,114,856 |   |
|                            |   |     |       |   |      |   |     |     |   |   |      |   |   |   |   |   |
| 2008                            |   |     |       |   |      |   |     |     |   |   |      |   |   |   |   |   |
|                            |   |     |       |   |      |   |     |     |   |   |      |   |   |   |   |   |
| Revenues and sales              |   | $        | 8,322,715  |   |      | $      | 651,163  |     |   | $      | 713,359   |   |   | $ | 9,687,237 |   |
| Interest income                 |   |     | 407,154    |   |      |   | 16,962   |     |   |   | 18,873    |   |   |   | 442,989 |   |
| Interest expense                |   |     | (77,354    | )      |      |   | -        |     |   |   | -         |   |   |   | (77,354 | ) |
| Depreciation and amortization   |   |     | 802,801    |   |      |   | 35,478   |     |   |   | 141,199   |   |   |   | 979,478 |   |
| Income tax expense (benefit)    |   |     | 866,403    |   |      |   | (174,132 | )        |   |   | 138,028   |   |   |   | 830,299 |   |
| Segment profit (loss)           |   |     | 2,453,972  |   |      |   | (193,502 | )        |   |   | (331,915  | )      |   |   | 1,928,555 |   |
| Segment assets                  |   |     | 24,845,441 |   |      |   | 536,311  |     |   |   | 3,846,155 |   |   |   | 29,227,907 |   |
| Expenditures for segment assets |   |     | 3,021,452  |   |      |   | (75,806  | )        |   |   | (181,897  | )      |   |   | 2,763,749 |   |

| NOTE 10. | NET INCOME PER COMMON SHARE |
|----------|-----------------------------|

| NOTE 11. | STOCK VALUE ADJUSTMENT |
|----------|------------------------|

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| NOTE 12. | STOCK RESTRICTIONS |
|----------|--------------------|

|   | (i) | Series 1 – these shares represent Class A shares issued after March 29, 2007.  These shares have voting rights of one vote per shareholder, regardless of the number of Class A shares held. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Series 2 – these shares were issued and outstanding immediately prior to the March 29, 2007 effective date and with respect to which the holders of such shares had one vote per shareholder, regardless of the number of Class A shares held.  The shares had previously been shares of the former Class A stock of the Corporation that were issued and outstanding on February 28, 1995. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Series 3 – these shares were issued and outstanding immediately prior to the March 29, 2007 effective date and with respect to which the holders of such shares had one vote for each such share.  The shares had previously been shares of the former Class A stock of the Corporation that were issued and outstanding on February 28, 1995.  These shares have voting rights of one vote per share. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Individuals purchasing Class A, Series 1 stock must be living within the Breda and Lidderdale service areas of the Company and subscribe to its telephone services.  Individuals or entities can purchase Class B, non-voting stock without service area or service participation restrictions. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Shareholders are individually limited to ownership of not more than one percent of the joint outstanding Class A and Class B stock unless ownership was prior to the Articles of Restatement.  There may be two stockholders per household and their joint ownership may not exceed two percent of the joint outstanding Class A and Class B stock. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Shareholders shall not sell any shares of stock owned unless the Company has been given first right of refusal. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------|

|   | · | Stock transfers require consent of the board of directors. |
|--------|--------|------------------------------------------------------------|

|   | · | The Company may adopt bylaws, which may further restrict the transfer or ownership of capital stock of the Company. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------|

| NOTE 13. | EMPLOYEE BENEFITS |
|----------|-------------------|

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| NOTE 14. | ASSET RETIREMENT OBLIGATION |
|----------|-----------------------------|

| NOTE 15. | RELATED PARTY TRANSACTIONS |
|----------|----------------------------|

| NOTE 16. | CONCENTRATIONS OF CREDIT RISK |
|----------|-------------------------------|

| NOTE 17. | NONCASH INVESTING ACTIVITIES |
|----------|------------------------------|

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Iowa 

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|                                                    | Page   |
|---------------------------------------------------------|--------|
|                                                    |   |
| REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 33     |
|                                                    |   |
|                                                    |   |
| Balance Sheets                                          | 34     |
| As ofDecember 31, 2009 and 2008                         |   |
|                                                    |   |
| Statements of Operations                                | 35     |
| For the years ended December 31, 2009 and 2008          |   |
|                                                    |   |
| Statements of Changes in Partners’ Capital        | 36     |
| For the years ended December 31, 2009 and 2008          |   |
|                                                    |   |
| Statements of Cash Flows                                | 37     |
| For the years ended December 31, 2009 and 2008          |   |
|                                                    |   |
| Notes to Financial Statements                           | 38     |

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| IOWA 8 MONONA LIMITED PARTNERSHIP                    |   |   |   |   |   |   |
|------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                 |   |   |   |   |   |   |
| BALANCE SHEETS                                       |   |   |   |   |   |   |
| DECEMBER 31, 2009 AND 2008                           |   |   |   |   |   |   |
| (Dollars in Thousands)                               |   |   |   |   |   |   |
|                                                 |   |   |   |   |   |   |
|                                                 |   |   |   |   |   |   |
| ASSETS                                               |   | 2009   |   |   | 2008   |   |
|                                                 |   |   |   |   |   |   |
| CURRENT ASSETS:                                      |   |   |   |   |   |   |
| Accounts receivable, net of allowance of $62 and $68 |   | $      | 1,602  |   |   | $      | 1,645 |   |
| Unbilled revenue                                     |   |   | 237    |   |   |   | 202 |   |
| Due from affiliate                                   |   |   | 2,099  |   |   |   | 2,609 |   |
| Prepaid expenses and other current assets            |   |   | 4      |   |   |   | 3 |   |
|                                                 |   |   |   |   |   |   |   |   |
| Total current assets                                 |   |   | 3,942  |   |   |   | 4,459 |   |
|                                                 |   |   |   |   |   |   |   |   |
| PROPERTY, PLANT AND EQUIPMENT—Net              |   |   | 6,947  |   |   |   | 5,911 |   |
|                                                 |   |   |   |   |   |   |   |   |
| TOTAL ASSETS                                         |   | $      | 10,889 |   |   | $      | 10,370 |   |
|                                                 |   |   |   |   |   |   |   |   |
| LIABILITIES AND PARTNERS’ CAPITAL              |   |   |   |   |   |   |   |   |
|                                                 |   |   |   |   |   |   |   |   |
| CURRENT LIABILITIES:                                 |   |   |   |   |   |   |   |   |
| Accounts payable and accrued liabilities             |   | $      | 475    |   |   | $      | 497 |   |
| Advance billings and customer deposits               |   |   | 596    |   |   |   | 514 |   |
|                                                 |   |   |   |   |   |   |   |   |
| Total current liabilities                            |   |   | 1,071  |   |   |   | 1,011 |   |
|                                                 |   |   |   |   |   |   |   |   |
| LONG TERM LIABILITIES                                |   |   | 21     |   |   |   | 20 |   |
|                                                 |   |   |   |   |   |   |   |   |
| Total liabilities                                    |   |   | 1,092  |   |   |   | 1,031 |   |
|                                                 |   |   |   |   |   |   |   |   |
| COMMITMENTS AND CONTINGENCIES (see Notes 6 and 7)    |   |   |   |   |   |   |   |   |
|                                                 |   |   |   |   |   |   |   |   |
| PARTNERS’ CAPITAL                              |   |   | 9,797  |   |   |   | 9,339 |   |
|                                                 |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES AND PARTNERS' CAPITAL              |   | $      | 10,889 |   |   | $      | 10,370 |   |
|                                                 |   |   |   |   |   |   |   |   |
| See notes to financial statements.                   |   |

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| IOWA 8 MONONA LIMITED PARTNERSHIP                                                                  |   |   |   |   |   |   |
|----------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                                                               |   |   |   |   |   |   |
| STATEMENTS OF OPERATIONS                                                                           |   |   |   |   |   |   |
| YEARS ENDED DECEMBER 31, 2009 AND 2008                                                             |   |   |   |   |   |   |
| (Dollars in Thousands)                                                                             |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |
|                                                                                               |   | 2009   |   |   | 2008   |   |
|                                                                                               |   |   |   |   |   |   |
| OPERATING REVENUES                                                                                 |   |   |   |   |   |   |
| Service revenues, net                                                                              |   | $      | 18,656 |   |   | $      | 17,932 |   |
| Equipment, net and other revenues                                                                  |   |   | 4,470  |   |   |   | 5,289 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| Total operating revenues                                                                           |   |   | 23,126 |   |   |   | 23,221 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| OPERATING COSTS AND EXPENSES:                                                                      |   |   |   |   |   |   |   |   |
| Cost of service (excluding depreciation and amortization related to network assets included below) |   |   | 6,209  |   |   |   | 6,685 |   |
| Cost of equipment                                                                                  |   |   | 3,241  |   |   |   | 3,034 |   |
| Selling, general and administrative                                                                |   |   | 5,411  |   |   |   | 5,557 |   |
| Depreciation and amortization                                                                      |   |   | 1,005  |   |   |   | 857 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| Total operating costs and expenses                                                                 |   |   | 15,866 |   |   |   | 16,133 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| OPERATING INCOME                                                                                   |   |   | 7,260  |   |   |   | 7,088 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| INTEREST INCOME, NET                                                                               |   |   | 198    |   |   |   | 123 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| NET INCOME                                                                                         |   | $      | 7,458  |   |   | $      | 7,211 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| Allocation of Net Income:                                                                          |   |   |   |   |   |   |   |   |
| Limited Partners                                                                                   |   | $      | 4,294  |   |   | $      | 4,151 |   |
| General Partner                                                                                    |   | $      | 3,164  |   |   | $      | 3,060 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| See notes to financial statements.                                                                 |   |

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| IOWA 8 MONONA LIMITED PARTNERSHIP                |   |                                        |   |   |                    |   |   |                  |   |   |
|--------------------------------------------------|--------|---------------------------------------------|--------|--------|-------------------------|--------|--------|-----------------------|--------|--------|
|                                             |   |                                        |   |   |                    |   |   |                  |   |   |   |   |   |   |   |
| STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL |   |                                        |   |   |                    |   |   |                  |   |   |
| YEARS ENDED DECEMBER 31, 2009 AND 2008           |   |                                        |   |   |                    |   |   |                  |   |   |
| (Dollars in Thousands)                           |   |                                        |   |   |                    |   |   |                  |   |   |   |   |   |   |   |
|                                             |   |                                        |   |   |                    |   |   |                  |   |   |   |   |   |   |   |
|                                             |   | General                                     |   |   |                    |   |   |                  |   |   |   |   |   |   |   |
|                                             |   | Partner                                     |   |   | Limited Partners        |   |   |                  |   |
|                                             |   | West IowaCellular ofIowa LimitedPartnership |   |   | West IowaCellular, Inc. |   |   | CommnetCellular, Inc. |   |   | CellcoPartnership |   |   | TotalPartners’Capital |   |
|                                             |   |                                        |   |   |                    |   |   |                  |   |   |   |   |   |   |   |
| BALANCE—January 1, 2008                    |   | $                                           | 3,872  |   |                    | $      | 2,680  |                  |   | $      | 2,203 |   |   | $ | 373 |   |   | $ | 9,128 |   |
|                                             |   |                                        |   |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions                                    |   |                                        | (2,970 | )      |                    |   | (2,055 | )                     |   |   | (1,689 | ) |   |   | (286 | ) |   |   | (7,000 | ) |
|                                             |   |                                        |   |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                       |   |                                        | 3,060  |   |                    |   | 2,117  |                  |   |   | 1,740 |   |   |   | 294 |   |   |   | 7,211 |   |
|                                             |   |                                        |   |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE—December 31, 2008                  |   |                                        | 3,962  |   |                    |   | 2,742  |                  |   |   | 2,254 |   |   |   | 381 |   |   |   | 9,339 |   |
|                                             |   |                                        |   |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions                                    |   |                                        | (2,970 | )      |                    |   | (2,055 | )                     |   |   | (1,689 | ) |   |   | (286 | ) |   |   | (7,000 | ) |
|                                             |   |                                        |   |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                       |   |                                        | 3,164  |   |                    |   | 2,190  |                  |   |   | 1,799 |   |   |   | 305 |   |   |   | 7,458 |   |
|                                             |   |                                        |   |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE—December 31, 2009                  |   | $                                           | 4,156  |   |                    | $      | 2,877  |                  |   | $      | 2,364 |   |   | $ | 400 |   |   | $ | 9,797 |   |
|                                             |   |                                        |   |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   |                                        |   |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |
| See notes to financial statements.               |   |                                        |   |   |                    |

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| IOWA 8 MONONA LIMITED PARTNERSHIP                                                 |   |   |   |   |   |   |
|-----------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                                              |   |   |   |   |   |   |
| STATEMENTS OF CASH FLOWS                                                          |   |   |   |   |   |   |
| YEARS ENDED DECEMBER 31, 2009 AND 2008                                            |   |   |   |   |   |   |
| (Dollars in Thousands)                                                            |   |   |   |   |   |   |
|                                                                              |   | 2009   |   |   | 2008   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                             |   |   |   |   |   |   |
| Net income                                                                        |   | $      | 7,458  |   |   | $      | 7,211 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                                     |   |   | 1,005  |   |   |   | 857 |   |
| Provision for losses on accounts receivable                                       |   |   | 126    |   |   |   | 166 |   |
| Changes in certain assets and liabilities:                                        |   |   |   |   |   |   |   |   |
| Accounts receivable                                                               |   |   | (83    | )      |   |   | (234 | ) |
| Unbilled revenue                                                                  |   |   | (36    | )      |   |   | (23 | ) |
| Prepaid expenses and other current assets                                         |   |   | (1     | )      |   |   | - |   |
| Accounts payable and accrued liabilities                                          |   |   | -      |   |   |   | 19 |   |
| Advance billings and customer deposits                                            |   |   | 81     |   |   |   | 59 |   |
| Other long term liabilities                                                       |   |   | 2      |   |   |   | 3 |   |
|                                                                              |   |   |   |   |   |   |   |   |
| Net cash provided by operating activities                                         |   |   | 8,552  |   |   |   | 8,058 |   |
|                                                                              |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                             |   |   |   |   |   |   |   |   |
| Capital expenditures, net                                                         |   |   | (2,062 | )      |   |   | (1,592 | ) |
| Change in due from affiliate, net                                                 |   |   | 510    |   |   |   | 534 |   |
|                                                                              |   |   |   |   |   |   |   |   |
| Net cash used in investing activities                                             |   |   | (1,552 | )      |   |   | (1,058 | ) |
|                                                                              |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                             |   |   |   |   |   |   |   |   |
|                                                                              |   |   |   |   |   |   |   |   |
| Distributions to partners                                                         |   |   | (7,000 | )      |   |   | (7,000 | ) |
|                                                                              |   |   |   |   |   |   |   |   |
| Net cash used in financing activities                                             |   |   | (7,000 | )      |   |   | (7,000 | ) |
|                                                                              |   |   |   |   |   |   |   |   |
| CHANGE IN CASH                                                                    |   |   | -      |   |   |   | - |   |
|                                                                              |   |   |   |   |   |   |   |   |
| CASH—Beginning of year                                                      |   |   | -      |   |   |   | - |   |
| CASH—End of year                                                            |   | $      | -      |   |   | $      | - |   |
|                                                                              |   |   |   |   |   |   |   |   |
| NONCASH TRANSACTIONS FROM INVESTING AND FINANCING ACTIVITIES:                     |   |
| Accruals for capital expenditures                                                 |   | $      | -      |   |   | $      | 21 |   |
|                                                                              |   |   |   |   |   |   |   |   |
| See notes to financial statements.                                                |   |

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| 1. | ORGANIZATION AND MANAGEMENT |
|----|-----------------------------|

| General Partner:                               |   |   |    |
|------------------------------------------------|--------|--------|---------|
| West Iowa Cellular of Iowa Limited Partnership |   |   | 42.4242 | % |
|                                           |   |   |    |   |
| Limited Partners:                              |   |   |    |   |
| West Iowa Cellular, Inc.                       |   |   | 29.3637 | % |
| CommNet Cellular, Inc.*                        |   |   | 24.1288 | % |
| Cellco Partnership                             |   |   | 4.0833  | % |

|   | · | CommNet Cellular, Inc. (“Managing Partner”), is a wholly-owned subsidiary of Cellco Partnership (“Cellco”) doing business as Verizon Wireless and holds a 49% ownership interest in West Iowa Cellular of Iowa Limited Partnership. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | SIGNIFICANT ACCOUNTING POLICIES |
|----|---------------------------------|

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| 3. | PROPERTY, PLANT AND EQUIPMENT |
|----|-------------------------------|

|                                           | Useful Lives |   | 2009   |   |   | 2008   |   |
|------------------------------------------------|--------------|--------|--------|--------|--------|--------|--------|
|                                           |         |   |   |   |   |   |   |
| Land                                           |         |   | $      | 75     |   |   | $      | 75 |   |
| Buildings and improvements                     | 10-40 years  |   |   | 2,784  |   |   |   | 2,141 |   |
| Cellular plant equipment                       | 3-15 years   |   |   | 9,797  |   |   |   | 8,510 |   |
| Leasehold improvements                         | 5 years      |   |   | 264    |   |   |   | 176 |   |
|                                           |         |   |   |   |   |   |   |   |   |
|                                           |         |   |   | 12,920 |   |   |   | 10,902 |   |
|                                           |         |   |   |   |   |   |   |   |   |
| Less accumulated depreciation and amortization |         |   |   | 5,973  |   |   |   | 4,991 |   |
|                                           |         |   |   |   |   |   |   |   |   |
| Property, plant and equipment, net             |         |   | $      | 6,947  |   |   | $      | 5,911 |   |

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| 4. | CURRENT LIABILITIES |
|----|---------------------|

|                                    |   | 2009   |   |   | 2008   |   |
|-----------------------------------------|--------|--------|--------|--------|--------|--------|
|                                    |   |   |   |   |   |   |
| Accounts payable                        |   | $      | 404    |   |   | $      | 427 |   |
| Accrued liabilities                     |   |   | 71     |   |   |   | 70 |   |
| Accounts payable and accrued libilities |   | $      | 475    |   |   | $      | 497 |   |

|                                   |   | 2009   |   |   | 2008   |   |
|----------------------------------------|--------|--------|--------|--------|--------|--------|
|                                   |   |   |   |   |   |   |
| Advance billings                       |   | $      | 555    |   |   | $      | 455 |   |
| Customer deposits                      |   |   | 41     |   |   |   | 59 |   |
| Advance billings and customer deposits |   | $      | 596    |   |   | $      | 514 |   |

| 5. | TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES |
|----|--------------------------------------------------|

|                                    |   | 2009   |   |   | 2008   |   |
|-----------------------------------------|--------|--------|--------|--------|--------|--------|
|                                    |   |   |   |   |   |   |
| Service revenues (a)                    |   | $      | 4,321  |   |   | $      | 4,277 |   |
| Equipment and other revenues (b)        |   |   | (68    | )      |   |   | (22 | ) |
| Cost of service (c)                     |   |   | 5,687  |   |   |   | 5,568 |   |
| Cost of equipment (d)                   |   |   | 293    |   |   |   | 292 |   |
| Selling, general and administrative (e) |   |   | 3,469  |   |   |   | 3,484 |   |

|   | (a) | Service revenues include roaming revenues relating to customers of other affiliated markets, long distance, data and allocated contra-revenues including revenue concessions. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Equipment and other revenues include cell sharing revenues, sales of handsets and accessories and allocated contra-revenues including equipment concessions and coupon rebates. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Cost of service includes roaming costs relating to customers roaming in other affiliated markets, switch costs and allocated cost of telecom, long distance, and handset applications. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (d) | Cost of equipment includes allocations of handsets, accessories and other costs incurred by Cellco on behalf of the Partnership and excludes the cost of inventory transferred to the Partnership of $2,948 and $2,742 during 2009 and 2008, respectively, as discussed in Note 2. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Selling, general and administrative expenses includes allocations and/or directly charged commissions, customer billing, office telecom, customer care, salaries, sales and marketing and advertising. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | COMMITMENTS |
|----|-------------|

| Years                  |   | Amount |   |
|------------------------|--------|--------|--------|
|                   |   |   |   |
| 2010                   |   | $      | 165    |   |
| 2011                   |   |   | 165    |   |
| 2012                   |   |   | 156    |   |
| 2013                   |   |   | 110    |   |
| 2014                   |   |   | 83     |   |
| 2015 and thereafter    |   |   | 146    |   |
|                   |   |   |   |   |
| Total minimum payments |   | $      | 825    |   |

| 7. | CONTINGENCIES |
|----|---------------|

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| 8. | RECONCILIATION OF ALLOWANCE FOR DOUBTFUL ACCOUNTS |
|----|---------------------------------------------------|

|                            |   | Balance at  |   |   | Additions  |   |   | Write-offs |   |   | Balance at  |   |
|---------------------------------|--------|-------------|--------|--------|------------|--------|--------|------------|--------|--------|-------------|--------|
|                            |   | Beginning   |   |   | Charged to |   |   | Net of     |   |   | End         |   |
|                            |   | of the Year |   |   | Operations |   |   | Recoveries |   |   | of the Year |   |
|                            |   |        |   |   |       |   |   |       |   |   |        |   |
| Accounts Receivable Allowances: |   |        |   |   |       |   |   |       |   |   |        |   |
| 2009                            |   | $           | 68     |   |       | $      | 126    |       |   | $      | (132        | )      |   | $ | 62 |   |
| 2008                            |   |        | 46     |   |       |   | 166    |       |   |   | (144        | )      |   |   | 68 |   |

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Iowa 

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|                                             | Page(s) |
|--------------------------------------------------|---------|
|                                             |    |
| Report of Independent Auditors                   | 48      |
|                                             |    |
| Financial Statements                             |    |
|                                             |    |
| Balance Sheets                                   | 49      |
|                                             |    |
| Statements of Operations                         | 50      |
|                                             |    |
| Statements of Cash Flows                         | 51      |
|                                             |    |
| Statements of Changes in Partners’ Capital | 52      |
|                                             |    |
| Notes to Financial Statements                    | 53      |

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|                                               |   | 2009   |      |   | 2008   |   |
|----------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Assets                                             |   |   |      |   |   |   |
| Cash                                               |   | $      | 229,890   |   |   | $      | 126,668 |   |
| Deposits with affiliate                            |   |   | 2,090,444 |   |   |   | 1,141,183 |   |
| Accounts receivable                                |   |   |      |   |   |   |   |   |
| Customers, less allowance of $24,069 and $3,010 at |   |   |      |   |   |   |   |   |
| December 31, 2009 and 2008, respectively           |   |   | 729,927   |   |   |   | 722,044 |   |
| Affiliates                                         |   |   | 177,181   |   |   |   | 111,422 |   |
| Other                                              |   |   | 153,350   |   |   |   | 166,775 |   |
| Other current assets                               |   |   | 58,407    |   |   |   | 45,424 |   |
| Total current assets                               |   |   | 3,439,199 |   |   |   | 2,313,516 |   |
| Property, plant and equipment, net                 |   |   | 4,891,462 |   |   |   | 5,502,312 |   |
| Other deferred charges                             |   |   | 37,032    |   |   |   | 35,302 |   |
| Total assets                                       |   | $      | 8,367,693 |   |   | $      | 7,851,130 |   |
| Liabilities and Partners' Capital                  |   |   |      |   |   |   |   |   |
| Accounts payable and accrued expenses              |   | $      | 234,320   |   |   | $      | 202,577 |   |
| Accounts payable - affiliates                      |   |   | 850,241   |   |   |   | 650,385 |   |
| Deferred revenues                                  |   |   | 344,935   |   |   |   | 337,165 |   |
| Customer deposits                                  |   |   | 22,025    |   |   |   | 32,975 |   |
| Accrued taxes                                      |   |   | 302,811   |   |   |   | 192,310 |   |
| Other current liabilities                          |   |   | 259,687   |   |   |   | 415,614 |   |
| Total current liabilities                          |   |   | 2,014,019 |   |   |   | 1,831,026 |   |
| Deferred credits                                   |   |   | 41,616    |   |   |   | 36,186 |   |
| Asset retirement obligation                        |   |   | 305,613   |   |   |   | 284,542 |   |
| Partners’ capital                            |   |   | 6,006,445 |   |   |   | 5,699,376 |   |
| Total liabilities and partners’ capital      |   | $      | 8,367,693 |   |   | $      | 7,851,130 |   |

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|                                |   | 2009   |       |   | 2008   |   |
|-------------------------------------|--------|--------|------------|--------|--------|--------|
|                                |   |   |       |   |   |   |
| Revenues                            |   | $      | 15,289,132 |   |   | $      | 14,905,616 |   |
| Operating expenses                  |   |   |       |   |   |   |   |   |
| Cost of equipment sold              |   |   | 65,622     |   |   |   | 57,276 |   |
| System operations                   |   |   | 4,731,047  |   |   |   | 4,735,879 |   |
| Selling, general and administrative |   |   | 6,046,817  |   |   |   | 5,773,255 |   |
| Depreciation and accretion          |   |   | 814,416    |   |   |   | 753,469 |   |
| Loss on asset disposals             |   |   | 7,075      |   |   |   | 8,023 |   |
| Total operating expenses            |   |   | 11,664,977 |   |   |   | 11,327,902 |   |
| Operating income                    |   |   | 3,624,155  |   |   |   | 3,577,714 |   |
| Other expense, net                  |   |   | (17,086    | )      |   |   | (21,848 | ) |
| Net income                          |   | $      | 3,607,069  |   |   | $      | 3,555,866 |   |

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|                                                                                          |   | 2009   |       |   | 2008   |   |
|-----------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                                                          |   |   |       |   |   |   |
| Cash flows from operating activities                                                          |   |   |       |   |   |   |
| Net Income                                                                                    |   | $      | 3,607,069  |   |   | $      | 3,555,866 |   |
| Add (deduct) adjustments to reconcile net income to net cash provided by operating activities |   |   |       |   |   |   |   |   |
| Depreciation and accretion                                                                    |   |   | 814,416    |   |   |   | 753,469 |   |
| Bad debts expense                                                                             |   |   | 103,644    |   |   |   | 70,407 |   |
| Loss on asset disposals                                                                       |   |   | 7,075      |   |   |   | 8,023 |   |
| Changes in assets and liabilities from operations                                             |   |   |       |   |   |   |   |   |
| Change in accounts receivable                                                                 |   |   | (163,861   | )      |   |   | 45,543 |   |
| Change in accounts payable and accrued expenses                                               |   |   | 231,599    |   |   |   | (148,753 | ) |
| Change in deferred revenues                                                                   |   |   | 7,770      |   |   |   | 29,825 |   |
| Change in deferred charges and credits                                                        |   |   | 3,700      |   |   |   | 1,273 |   |
| Change in customer deposits                                                                   |   |   | (10,950    | )      |   |   | 1,225 |   |
| Change in accrued taxes                                                                       |   |   | 110,501    |   |   |   | 67,233 |   |
| Change in other assets and liabilities                                                        |   |   | (168,899   | )      |   |   | 170,179 |   |
| Net cash provided by operating activities                                                     |   |   | 4,542,064  |   |   |   | 4,554,290 |   |
|                                                                                          |   |   |       |   |   |   |   |   |
| Cash flows from investing activities                                                          |   |   |       |   |   |   |   |   |
| Purchases of property, plant, and equipment                                                   |   |   | (191,543   | )      |   |   | (1,623,270 | ) |
| Proceeds from the sale of property, plant, and equipment                                      |   |   | 1,962      |   |   |   | 22,335 |   |
| Deposits (to) from affiliate, net                                                             |   |   | (949,261   | )      |   |   | 725,421 |   |
| Net cash required for investing activities                                                    |   |   | (1,138,842 | )      |   |   | (875,514 | ) |
|                                                                                          |   |   |       |   |   |   |   |   |
| Cash flows from financing activities                                                          |   |   |       |   |   |   |   |   |
| Distributions to partners                                                                     |   |   | (3,300,000 | )      |   |   | (3,700,000 | ) |
| Net cash required for financing activities                                                    |   |   | (3,300,000 | )      |   |   | (3,700,000 | ) |
|                                                                                          |   |   |       |   |   |   |   |   |
| Net increase/(decrease) in cash                                                               |   |   | 103,222    |   |   |   | (21,224 | ) |
| Cash                                                                                          |   |   |       |   |   |   |   |   |
| Beginning of period                                                                           |   |   | 126,668    |   |   |   | 147,892 |   |
| End of period                                                                                 |   | $      | 229,890    |   |   | $      | 126,668 |   |

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|                                       |   | JeffersonCellularTelephoneCompany, Inc. |    |   | JeffersonTelephoneCompany |   |     | IowaRSA #9,Inc. |   |   | BredaTelephoneCorporation |   |   | CellCo. |      |   | ScrantonTelephoneCompany |   |      | WebsterCalhounCooperativeTelephoneAssociation |   |   |      |   |
|--------------------------------------------|--------|-----------------------------------------|---------|--------|---------------------------|--------|----------|-----------------|--------|--------|---------------------------|--------|--------|---------|-----------|--------|--------------------------|--------|-----------|-----------------------------------------------|--------|--------|-----------|--------|
|                                       |   | General                                 |    |   | Limited                   |   |     | Limited         |   |   | Limited                   |   |   | Limited |      |   | Limited                  |   |      | Limited                                       |   |   |      |   |
|                                       |   | Partner                                 |    |   | Partner                   |   |     | Partner         |   |   | Partner                   |   |   | Partner |      |   | Partner                  |   |      | Partner                                       |   |   | Total     |   |
| Partners' capital, December 31, 2007       |   | $                                       | 58,432  |   |                      | $      | 944,080  |            |   | $      | 945,246                   |   |   | $       | 973,938   |   |                     | $      | 973,938   |                                          |   | $      | 973,938   |   |   | $ | 973,938 |   |   | $ | 5,843,510 |   |
| 2008 Distributions to partners             |   |                                    | (37,000 | )      |                      |   | (597,772 | )               |   |   | (598,512                  | )      |   |    | (616,679  | )      |                     |   | (616,679  | )                                             |   |   | (616,679  | )      |   |   | (616,679 | ) |   |   | (3,700,000 | ) |
| 2008 Net income                            |   |                                    | 35,559  |   |                      |   | 574,486  |            |   |   | 575,197                   |   |   |    | 592,656   |   |                     |   | 592,656   |                                          |   |   | 592,656   |   |   |   | 592,656 |   |   |   | 3,555,866 |   |
| Partners’ capital, December 31, 2008 |   | $                                       | 56,991  |   |                      | $      | 920,794  |            |   | $      | 921,931                   |   |   | $       | 949,915   |   |                     | $      | 949,915   |                                          |   | $      | 949,915   |   |   | $ | 949,915 |   |   | $ | 5,699,376 |   |
| 2009 Distributions to partners             |   |                                    | (33,000 | )      |                      |   | (533,148 | )               |   |   | (533,808                  | )      |   |    | (550,011  | )      |                     |   | (550,011  | )                                             |   |   | (550,011  | )      |   |   | (550,011 | ) |   |   | (3,300,000 | ) |
| 2009 Net income                            |   |                                    | 36,072  |   |                      |   | 582,758  |            |   |   | 583,479                   |   |   |    | 601,190   |   |                     |   | 601,190   |                                          |   |   | 601,190   |   |   |   | 601,190 |   |   |   | 3,607,069 |   |
| Partners’ capital, December 31, 2009 |   | $                                       | 60,063  |   |                      | $      | 970,404  |            |   | $      | 971,602                   |   |   | $       | 1,001,094 |   |                     | $      | 1,001,094 |                                          |   | $      | 1,001,094 |   |   | $ | 1,001,094 |   |   | $ | 6,006,445 |   |

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| 1. | Organization and Basis of Presentation |
|----|----------------------------------------|

| General Partner                                   |   |   |   |
|---------------------------------------------------|--------|--------|--------|
| Jefferson Cellular Telephone Company, Inc         |   |   | 1.000  | % |
|                                              |   |   |   |   |
| Limited Partners                                  |   |   |   |   |
| Jefferson Telephone Company                       |   |   | 16.156 | % |
| Iowa RSA #9, Inc.                                 |   |   | 16.176 | % |
| Breda Telephone Corporation                       |   |   | 16.667 | % |
| Cell Co.                                          |   |   | 16.667 | % |
| Scranton Telephone Company                        |   |   | 16.667 | % |
| Webster-Calhoun Cooperative Telephone Association |   |   | 16.667 | % |

| 2. | Summary of Significant Accounting Policies |
|----|--------------------------------------------|

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|                                |   | 2009   |    |   | 2008   |   |
|-------------------------------------|--------|--------|---------|--------|--------|--------|
| Beginning Balance                   |   | $      | 284,542 |   |   | $      | 213,348 |   |
| Additional liabilities accrued      |   |   | -       |   |   |   | 22,057 |   |
| Revision in estimated cash outflows |   |   | 16      |   |   |   | 32,252 |   |
| Accretion expense                   |   |   | 21,055  |   |   |   | 16,885 |   |
| Ending Balance                      |   | $      | 305,613 |   |   | $      | 284,542 |   |

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|   | · | Charges for access, airtime, roaming, long distance, data and other value added services provided to the Partnership’s customers; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Charges to carriers whose customers use the Partnership’s systems when roaming; |
|--------|--------|---------------------------------------------------------------------------------------|

|   | · | Sales of equipment and accessories; and |
|--------|--------|-----------------------------------------|

|   | · | Amounts received from the Universal Service Fund where the Partnership has been designated an Eligible Telecommunications Carrier (“ETC”). |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Property, Plant and Equipment |
|----|-------------------------------|

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|                                       |   | 2009   |       |   | 2008   |   |
|--------------------------------------------|--------|--------|------------|--------|--------|--------|
| Land and land improvements (10-25 years)   |   | $      | 163,428    |   |   | $      | 163,428 |   |
| Leasehold improvements (1-10 years)        |   |   | 1,552,479  |   |   |   | 1,539,349 |   |
| Buildings and equipment (5-25 years)       |   |   | 7,861,931  |   |   |   | 8,545,778 |   |
| Furniture and office equipment (3-5 years) |   |   | 23,678     |   |   |   | 60,146 |   |
| Work in process                            |   |   | 18,352     |   |   |   | 204,735 |   |
|                                       |   |   | 9,619,868  |   |   |   | 10,513,436 |   |
| Less accumulated depreciation              |   |   | (4,728,406 | )      |   |   | (5,011,124 | ) |
| Net property, plant and equipment          |   | $      | 4,891,462  |   |   | $      | 5,502,312 |   |

| 4. | Line of Credit |
|----|----------------|

| 5. | Lease Commitments |
|----|-------------------|

|       |   | Operating Leases               |      |   | Operating Leases               |   |
|------------|--------|--------------------------------|-----------|--------|--------------------------------|--------|
|       |   | Future Minimum Rental Payments |      |   | Future Minimum Rental Receipts |   |
| 2010       |   | $                              | 89,588    |   |                           | $      | 14,143 |   |
| 2011       |   |                           | 88,188    |   |                           |   | - |   |
| 2012       |   |                           | 79,082    |   |                           |   | - |   |
| 2013       |   |                           | 74,902    |   |                           |   | - |   |
| 2014       |   |                           | 74,877    |   |                           |   | - |   |
| Thereafter |   |                           | 1,457,898 |   |                           |   | - |   |
|       |   | $                              | 1,864,535 |   |                           | $      | 14,143 |   |

| 6. | Concentration of Credit Risk |
|----|------------------------------|

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| 7. | Transactions with Related Parties |
|----|-----------------------------------|

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|                    | BREDA TELEPHONE CORP. |
|-------------------------|-----------------------|
|                    |                  |   |
|                    |                  |   |
| Date: December 31, 2010 | By:                   | /s/ Charles Deisbeck |
|                    |                  | Charles Deisbeck, Chief Executive Officer |
|                    |                  |   |
|                    | By:                   |  /s/ Jane Morlok |
|                    |                  | Jane Morlok, Chief Financial Officer |

| By:    | /s/ Daniel Nieland                          |   | By:    | /s/ Neil Kanne                         |   |
|--------|---------------------------------------------|--------|--------|----------------------------------------|--------|
|   | Daniel Nieland, Vice President and Director |   |   | Neil Kanne, Secretary and Director     |   |
|   | Date:  December 31, 2010          |   |   | Date:  December 31, 2010     |   |
|   |                                        |   |   |                                   |   |
| By:    | /s/ Rick Anthofer                           |   | By:    | /s/Daniel McDermott                    |   |
|   | Rick Anthofer, Treasurer and Director       |   |   | Daniel McDermott, Director             |   |
|   | Date:  December 31, 2010          |   |   | Date:  December 31, 2010     |   |
|   |                                        |   |   |                                   |   |
| By:    | /s/ Clifford Neumayer                       |   | By:    | /s/ Dean Schettler                     |   |
|   | Clifford Neumayer, Director                 |   |   | Dean Schettler, President and Director |   |
|   | Date:  December 31, 2010          |   |   | Date:  December 31, 2010     |   |
|   |                                        |   |   |                                   |   |
| By:    | /s/ David Grabner                           |   | By:    | /s/ Jane Morlok                        |   |
|   | David Grabner, Director                     |   |   | Jane Morlok, Chief Financial Officer   |   |
|   | Date:  December 31, 2010          |   |   | Date: December 31, 2010                |   |
|   |                                        |   |   |                                   |   |
| By:    | /s/ Charles Deisbeck                        |   |   |                                   |   |
|   | Charles Deisbeck, Chief Executive Officer   |   |   |                                   |   |
|   | Date: December 31, 2010                     |   |   |                                   |   |

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