Exhibit 99.1


                                              Frontier Communications
                                              3 High Ridge Park
                                              Stamford, CT 06905
                                              203.614.5600
                                              Web site: www.frontieronline.com

Contact:
David Whitehouse
Senior Vice President & Treasurer
203.614.5708
david.whitehouse@frontiercorp.com

        Frontier Communications Reports Solid 2008 Second-Quarter Results
                      with Strong High-Speed Net Additions

               *    16,300 net high-speed internet additions
               *    Data and internet services revenue up 10% year over year
               *    Continued strong operating income and cash flow margins
               *    First half operating cash flow margin of 54%
               *    First half dividend payout ratio of 60%
               *    2008 free cash flow estimate unchanged

Stamford,  Conn., August 5, 2008 -- Frontier Communications (NYSE:FTR) (formerly
Citizens Communications, NYSE:CZN) today reported second quarter 2008 revenue of
$562.6  million,  operating  income of $162.0  million,  and net income of $55.8
million.

"Frontier  Communications  had another  quarter of solid financial and operating
results,"  said Maggie  Wilderotter,  Chairman and CEO.  "Despite a  challenging
economic environment,  our employees did a terrific job of relentlessly focusing
on our customers to deliver a strong second quarter  performance.  Our effective
expense  management enabled us to achieve an operating cash flow margin of 54.5%
for the  quarter and a dividend  payout  ratio of only 60% through the first six
months.  Finally,  we continued to provide returns to our  shareholders  through
dividends and stock  repurchases  in the first half of the year by applying over
100% of our free cash flow to these activities."

Revenue for the second quarter of 2008 was $562.6 million, as compared to $578.8
million in the second quarter of 2007, a 3 percent decrease. Revenue declined as
a result of lower local services  revenue,  subsidy  revenue and switched access
revenue, partially offset by a 10 percent increase in data and internet services
revenue. Despite the decline in access lines, our customer revenue, which is all
revenue  except  switched  access and  subsidy,  has  remained  relatively  flat
overall.   The  monthly   customer   revenue  per  access  line  has   increased
approximately $3.50 over the prior year's second quarter while the monthly total
revenue  per  access  line has  increased  $2.78  over the  same  period.  These
statistics  reflect the  Company's  success in selling  additional  products and
services to our customer base.

Other  operating  expenses and network access expenses for the second quarter of
2008 were $256.3 million, as compared to $267.1 million in the second quarter of
2007. The decrease of $10.8 million in 2008 as compared to the second quarter of
2007 is primarily the result of reduced expenses attributable to the integration
of the back office, customer service and administrative support functions of the
Commonwealth and Global Valley operations acquired in 2007.
<PAGE>

Operating income for the second quarter of 2008 was $162.0 million and operating
income  margin was 28.8  percent,  as  compared  to  operating  income of $171.3
million and  operating  income  margin of 29.6 percent in the second  quarter of
2007.  The second  quarter 2008 decrease of $9.3 million is primarily the result
of the reduction in revenue.

The increase in  investment  and other income  (loss),  net reflects the premium
paid in the  second  quarter of 2007 of $16.3  million  to redeem the  Company's
7.625% Senior Notes due 2008.

Income tax expense for the second quarter of 2008 was favorably  impacted by the
reversal of $7.5 million in income tax reserves.

The Company lost  approximately  45,400 access lines, of which 6,100 were second
lines,  during the second  quarter  of 2008 and had more than  2,341,700  access
lines at June 30, 2008.

The Company added approximately  16,300 net high-speed internet customers during
the  second  quarter  of 2008  and had more  than  559,300  high-speed  internet
customers  at June  30,  2008.  The  Company  added  approximately  6,200  video
customers  during the second  quarter  of 2008 and had more than  107,500  video
customers at June 30, 2008.

Capital  expenditures  were $75.7  million  for the  second  quarter of 2008 and
$123.7 million for the first six months of 2008.

Free cash flow was $96.6  million  for the  second  quarter  of 2008 and  $269.4
million for the first six months of 2008.  The second  quarter of 2008  includes
increased  seasonal  payments  for income  taxes and capital  expenditures.  The
Company's  dividend  represents a payout of 60 percent of free cash flow for the
first six months of 2008.

During the second quarter of 2008, the Company  repurchased  8,067,000 shares of
its common stock for $87.8 million.  Through the first half of 2008, the Company
repurchased   10,383,000   shares  of  its  common  stock  for  $112.7  million,
representing 56 percent of the $200 million share repurchase program.

The  Company's   free  cash  flow   estimate  for  2008  remains   unchanged  at
approximately $470.0 million to $495.0 million after calculating the impact that
the "Economic Stimulus Act of 2008" will have on its cash paid for income taxes.

                                     -MORE-

<PAGE>

The  Company  uses  certain  non-GAAP   financial  measures  in  evaluating  its
performance.   These  include  free  cash  flow  and  operating   cash  flow.  A
reconciliation of the differences between free cash flow and operating cash flow
and  the  most  comparable   financial  measures  calculated  and  presented  in
accordance  with GAAP is  included  in the  tables  that  follow.  The  non-GAAP
financial measures are by definition not measures of financial performance under
GAAP and are not alternatives to operating income or net income reflected in the
statement of  operations  or to cash flow as reflected in the  statement of cash
flows and are not necessarily indicative of cash available to fund all cash flow
needs. The non-GAAP financial measures used by the Company may not be comparable
to similarly titled measures of other companies.

The  Company  believes  that the  presentation  of non-GAAP  financial  measures
provides  useful  information  to investors  regarding the  Company's  financial
condition  and  results  of  operations  because  these  measures,  when used in
conjunction  with related GAAP financial  measures,  (i) together provide a more
comprehensive view of the Company's core operations and ability to generate cash
flow, (ii) provide investors with the financial  analytical framework upon which
management bases financial, operational, compensation and planning decisions and
(iii) presents measurements that investors and rating agencies have indicated to
management  are  useful to them in  assessing  the  Company  and its  results of
operations.  Management  uses  these  non-GAAP  financial  measures  to plan and
measure  the  performance  of its core  operations,  and its  divisions  measure
performance and report to management based upon these measures. In addition, the
Company  believes  that free cash flow and  operating  cash flow, as the Company
defines them, can assist in comparing performance from period to period, without
taking into account  factors  affecting  cash flow reflected in the statement of
cash flows, including changes in working capital and the timing of purchases and
payments.  The Company has shown  adjustments to its financial  presentations to
exclude $38.7 million in access revenue for the favorable impact of the one-time
carrier  dispute  settlement  in the first half of 2007,  $3.4  million and $1.8
million of severance  and early  retirement  costs in the first half of 2008 and
2007,  respectively,  and $0.5 million and $1.6  million of severance  and early
retirement costs in the second quarter of 2008 and 2007,  respectively,  because
the Company  believes  that the  magnitude of such revenues in the first half of
2007 is unusual, and such costs in the first half of 2008 materially exceeds the
comparable costs in the first half of 2007.

Management uses these non-GAAP financial measures to (i) assist in analyzing the
Company's underlying financial  performance from period to period, (ii) evaluate
the  financial  performance  of its business  units,  (iii) analyze and evaluate
strategic and operational  decisions,  (iv) establish  criteria for compensation
decisions,  and (v) assist  management in understanding the Company's ability to
generate cash flow and, as a result,  to plan for future capital and operational
decisions. Management uses these non-GAAP financial measures in conjunction with
related  GAAP  financial  measures.  The  Company  believes  that  the  non-GAAP
financial measures are meaningful and useful for the reasons outlined above.


                                     -MORE-

<PAGE>

While the Company  utilizes  these non-GAAP  financial  measures in managing and
analyzing its business and  financial  condition and believes they are useful to
management  and to investors for the reasons  described  above,  these  non-GAAP
financial measures have certain shortcomings. In particular, free cash flow does
not represent the residual cash flow available for  discretionary  expenditures,
since  items  such  as  debt  repayments  and  dividends  are  not  deducted  in
determining  such  measure.  Operating  cash flow has  similar  shortcomings  as
interest, income taxes, capital expenditures,  debt repayments and dividends are
not  deducted  in  determining  this  measure.  Management  compensates  for the
shortcomings  of these  measures by  utilizing  them in  conjunction  with their
comparable GAAP financial measures. The information in this press release should
be read in conjunction with the financial  statements and footnotes contained in
our documents filed with the U.S. Securities and Exchange Commission.

About Frontier Communications
Frontier Communications Corporation (NYSE:FTR) offers telephone,  television and
internet  services  in  24  states  with  approximately  5,700  employees.  More
information  is available at  www.frontieronline.com.

This press release contains forward-looking statements that are made pursuant to
the safe harbor  provisions of The Private  Securities  Litigation Reform Act of
1995.  These  statements  are  made  on the  basis  of  management's  views  and
assumptions  regarding  future  events and business  performance.  Words such as
"believe,"  "anticipate,"  "expect"  and  similar  expressions  are  intended to
identify forward-looking statements.  Forward-looking statements (including oral
representations)  involve risks and uncertainties  that may cause actual results
to differ  materially  from any  future  results,  performance  or  achievements
expressed or implied by such statements. These risks and uncertainties are based
on a number of factors,  including but not limited to:  reductions in the number
of our  access  lines  and  high-speed  internet  subscribers;  the  effects  of
competition from cable, wireless and other wireline carriers (through voice over
internet protocol (VOIP) or otherwise);  the effects of greater than anticipated
competition requiring new pricing, marketing strategies or new product offerings
and the risk that we will not  respond  on a timely  or  profitable  basis;  the
effects  of  general  and local  economic,  business,  industry  and  employment
conditions on our revenues;  our ability to effectively  manage service quality;
our ability to  successfully  introduce  new product  offerings,  including  our
ability to offer bundled  service  packages on terms that are both profitable to
us and  attractive  to our  customers;  our  ability to sell  enhanced  and data
services in order to offset  ongoing  declines in revenue  from local  services,
switched  access  services  and  subsidies;  changes in  accounting  policies or
practices adopted  voluntarily or as required by generally  accepted  accounting
principles or  regulators;  the effects of ongoing  changes in the regulation of
the  communications  industry as a result of federal and state  legislation  and
regulation,  including  potential changes in state rate of return limitations on
our  earnings,  access  charges and subsidy  payments,  and  regulatory  network
upgrade and  reliability  requirements;  our ability to  effectively  manage our
operations, operating expenses and capital expenditures, to pay dividends and to
reduce or refinance our debt;  adverse  changes in the credit  markets and/or in
the  ratings  given to our debt  securities  by  nationally  accredited  ratings
organizations,  which could limit or restrict the  availability  and/or increase
the cost of financing;  the effects of  bankruptcies  in the  telecommunications
industry,   which  could  result  in  potential   bad  debts;   the  effects  of
technological  changes and competition on our capital  expenditures  and product
and service offerings,  including the lack of assurance that our ongoing network
improvements  will be sufficient to meet or exceed the  capabilities and quality
of competing  networks;  the effects of increased  medical,  retiree and pension
expenses  and related  funding  requirements;  changes in income tax rates,  tax
laws,  regulations  or rulings,  and/or  federal or state tax  assessments;  the
effects of state regulatory cash management  policies on our ability to transfer
cash  among  our  subsidiaries  and  to  the  parent  company;  our  ability  to
successfully  renegotiate union contracts  expiring in 2008 and thereafter;  our
ability to pay a $1.00 per common share dividend annually, which may be affected
by our cash flow from operations,  amount of capital expenditures,  debt service
requirements, cash paid for income taxes (which will increase in the future) and
our  liquidity;  the effects of  significantly  increased cash taxes in 2008 and
future years; and the effects of any unfavorable  outcome with respect to any of
our current or future legal,  governmental or regulatory proceedings,  audits or
disputes. These and other uncertainties related to our business are described in
greater  detail in our filings  with the  Securities  and  Exchange  Commission,
including  our  reports on Forms 10-K and 10-Q,  and the  foregoing  information
should be read in conjunction with these filings.  We do not intend to update or
revise these  forward-looking  statements  to reflect the  occurrence  of future
events or circumstances.

                                       ###

TABLES TO FOLLOW

<PAGE>
<TABLE>
<CAPTION>

                       Frontier Communications Corporation
                         Consolidated Financial Data (1)

                                                      For the quarter ended                For the six months ended
                                                             June 30,                               June 30,
                                                    --------------------------   %      --------------------------------        %
(Amounts in thousands, except per share amounts)       2008          2007      Change       2008              2007           Change
                                                    ----------------------------------- --------------------------------------------

Income Statement Data
<S>                                                   <C>            <C>          <C>    <C>               <C>          <C>    <C>
  Revenue                                             $562,550       $578,826     -3%     $1,131,755        $ 1,134,973  (2)    0%
                                                    -----------   ------------          -------------    ---------------

  Network access expenses                               53,998         53,678      1%        114,547            105,075         9%
  Other operating expenses                             202,333        213,388     -5%        405,597            402,655         1%
  Depreciation and amortization                        144,250        140,462      3%        285,330            262,643         9%
                                                    -----------   ------------          -------------    ---------------
  Total operating expenses                             400,581        407,528     -2%        805,474            770,373         5%
                                                    -----------   ------------          -------------    ---------------

  Operating income                                     161,969        171,298     -5%        326,281            364,600       -11%
  Investment and other income (loss), net (3)            6,393         (6,517)   198%          5,158              3,500        47%
  Interest expense                                      90,710         98,649     -8%        181,570            192,613        -6%
                                                    -----------   ------------          -------------    ---------------
  Income before income taxes                            77,652         66,132     17%        149,869            175,487       -15%
  Income tax expense                                    21,874         25,573    -14%         48,502             67,261       -28%
                                                    -----------   ------------          -------------    ---------------
Net income attributable to common shareholders        $ 55,778       $ 40,559     38%     $  101,367        $   108,226        -6%
                                                    ===========   ============          =============    ===============

Weighted average shares outstanding                    320,838        340,469     -6%        323,340            332,331        -3%

Basic net income per share attributable to
     common shareholders (4)                          $   0.17       $   0.12     42%     $     0.31        $      0.33  (2)   -6%

Other Financial Data
Capital expenditures                                  $ 75,737       $ 66,658     14%     $  123,723        $   111,769        11%
Operating cash flow (5)                                306,699        313,354     -2%        614,982            590,319         4%
Free cash flow (5)                                      96,615        116,295    -17%        269,425            303,850       -11%
Dividends paid                                          80,221         85,379     -6%        162,324            170,841        -5%
Dividend payout ratio (6)                                  83%            73%     14%            60%                56%         7%
</TABLE>

(1)  On March 8, 2007,  we acquired  Commonwealth  Telephone  Enterprises,  Inc.
     (CTE) for approximately $1.1 billion,  and on October 31, 2007, we acquired
     Global  Valley  Networks,  Inc. and GVN Services  (together  GVN) for $62.0
     million,  and have included the historical  results of CTE and GVN from the
     dates of acquisition.
(2)  Includes  the  $38.7  million   favorable   impact  of  a  carrier  dispute
     settlement, representing $.07 per share.
(3)  Includes premium on debt repurchases of $17.1 million for the quarter ended
     June 30, 2007,  and $6.3 million and $18.2 million for the six months ended
     June 30, 2008 and 2007, respectively,  and $4.0 million for bridge loan fee
     for the six months ended June 30, 2007.
(4)  Calculated based on weighted average shares outstanding.
(5)  A  reconciliation  to the most  comparable GAAP measure is presented at the
     end of these tables.
(6)  Represents dividends paid divided by free cash flow.


                                       1
<PAGE>
<TABLE>
<CAPTION>

                       Frontier Communications Corporation
                  Consolidated Financial and Operating Data (1)

                                                    For the quarter ended                   For the six months ended
                                                           June 30,                                  June 30,
                                                 ----------------------------        %    -----------------------------        %
(Amounts in thousands, except operating data)        2008           2007          Change        2008            2007        Change
                                                 ---------------------------------------  -----------------------------------------

Select Income Statement Data
Revenue
<S>                                                <C>            <C>       <C>    <C>     <C>             <C>        <C>     <C>
     Local services                                $  214,703     $  226,363  (2)   -5%    $  431,861       $  430,807  (2)     0%
     Data and internet services                       151,655        138,243  (2)   10%       297,637          256,267  (2)    16%
     Access services                                  101,003        113,429       -11%       208,821          252,453  (3)   -17%
     Long distance services                            46,912         47,053         0%        93,365           87,481          7%
     Directory services                                29,070         28,664         1%        57,698           57,334          1%
     Other                                             19,207         25,074       -23%        42,373           50,631        -16%
                                                 -------------   ------------             ------------  ---------------
Total revenue                                         562,550        578,826        -3%     1,131,755        1,134,973          0%
                                                 -------------   ------------             ------------  ---------------
Expenses
     Network access expenses                           53,998         53,678  (2)    1%       114,547          105,075  (2)     9%
     Other operating expenses (4)                     202,333        213,388  (2)   -5%       405,597          402,655  (2)     1%
     Depreciation and amortization                    144,250        140,462         3%       285,330          262,643          9%
                                                 -------------   ------------             ------------  ---------------
Total operating expenses                              400,581        407,528        -2%       805,474          770,373          5%
                                                 -------------   ------------             ------------  ---------------
Operating Income                                   $  161,969     $  171,298        -5%    $  326,281       $  364,600        -11%
                                                 =============   ============             ============  ===============
Other Financial and Operating Data
Revenue:
        Residential                                $  239,633     $  248,550        -4%    $  480,995       $  470,328          2%
        Business                                      221,914        216,847         2%       441,939          412,192          7%
                                                 -------------   ------------             ------------  ---------------
               Total customer revenue                 461,547        465,397        -1%       922,934          882,520          5%
        Regulatory (Access services)                  101,003        113,429       -11%       208,821          252,453        -17%
                                                 -------------   ------------             ------------  ---------------
Total revenue                                      $  562,550     $  578,826        -3%    $1,131,755       $1,134,973          0%
                                                 -------------   ------------             ------------  ---------------
Access lines:
        Residential                                 1,516,402      1,654,854        -8%     1,516,402        1,654,854         -8%
        Business                                      825,345        848,864        -3%       825,345          848,864         -3%
                                                 -------------   ------------             ------------  ---------------
Total access lines                                  2,341,747      2,503,718        -6%     2,341,747        2,503,718         -6%
                                                 -------------   ------------             ------------  ---------------
Other data:
     Employees                                          5,734          6,224        -8%         5,734            6,224         -8%
     High-speed internet (HSI) subscribers            559,345        479,317        17%       559,345          479,317         17%
     Video subscribers                                107,596         81,092        33%       107,596           81,092         33%
     Switched access minutes of use (in millions)       2,538          2,748        -8%         5,141            5,276         -3%
     Average monthly total revenue per
        access line                                $    79.31     $    76.53         4%    $    79.04       $    78.75  (5)     0%
     Average monthly customer revenue per
        access line                                $    65.07     $    61.53         6%    $    64.46       $    64.04  (6)     1%

</TABLE>

(1)  On March 8, 2007,  we acquired  Commonwealth  Telephone  Enterprises,  Inc.
     (CTE) for approximately $1.1 billion,  and on October 31, 2007, we acquired
     Global  Valley  Networks,  Inc. and GVN Services  (together  GVN) for $62.0
     million,  and have included the historical  results of CTE and GVN from the
     dates of acquisition.
(2)  Reflects a  reclassification  of $6.3  million and $7.9  million of revenue
     related to our CTE  acquisition  from local  services to data and  internet
     services for the quarter and six months ended June 30, 2007,  respectively.
     Also,  expenses reflect a reclassification of $1.8 million and $2.4 million
     of expenses related to our CTE acquisition from other operating expenses to
     network access expenses for the quarter and six months ended June 30, 2007,
     respectively.
(3)  Includes  the  $38.7  million   favorable   impact  of  a  carrier  dispute
     settlement.
(4)  Includes  severance  and early  retirement  costs of $0.5  million and $1.6
     million for the quarter  ended June 30,  2008 and 2007,  respectively,  and
     $3.4  million and $1.8  million for the six months  ended June 30, 2008 and
     2007, respectively.
(5)  For the six months ended June 30, 2007,  the  calculation  excludes CTE and
     GVN data and excludes the $38.7 million favorable  one-time impact from the
     first quarter 2007 settlement of a switched  access dispute.  The amount is
     $81.82  with  the  $38.7  million   favorable   one-time  impact  from  the
     settlement.
(6)  For the six months ended June 30, 2007,  the  calculation  excludes CTE and
     GVN data.

                                       2
<PAGE>
<TABLE>
<CAPTION>
                       Frontier Communications Corporation
                  Condensed Consolidated Balance Sheet Data (1)

(Amounts in thousands)

                                                                           June 30, 2008           December 31, 2007
                                                                        --------------------      -------------------
                                      ASSETS
                                      ------
Current assets:
<S>                                                                             <C>                      <C>
    Cash and cash equivalents                                                   $   178,874              $   226,466
    Accounts receivable and other current assets                                    269,853                  297,688
                                                                        --------------------      -------------------
      Total current assets                                                          448,727                  524,154

Property, plant and equipment, net                                                3,265,260                3,335,244

Other long-term assets                                                            3,299,242                3,396,671
                                                                        --------------------      -------------------
           Total assets                                                         $ 7,013,229              $ 7,256,069
                                                                        ====================      ===================

                       LIABILITIES AND SHAREHOLDERS' EQUITY
                       ------------------------------------
Current liabilities:
    Long-term debt due within one year                                          $     3,828              $     2,448
    Accounts payable and other current liabilities                                  368,704                  443,443
                                                                        --------------------      -------------------
      Total current liabilities                                                     372,532                  445,891

Deferred income taxes and other liabilities                                       1,063,836                1,075,382
Long-term debt                                                                    4,746,612                4,736,897
Shareholders' equity                                                                830,249                  997,899
                                                                        --------------------      -------------------
           Total liabilities and shareholders' equity                           $ 7,013,229              $ 7,256,069
                                                                        ====================      ===================
</TABLE>

(1)  On March 8, 2007,  we acquired  Commonwealth  Telephone  Enterprises,  Inc.
     (CTE) for approximately $1.1 billion,  and on October 31, 2007, we acquired
     Global  Valley  Networks,  Inc. and GVN Services  (together  GVN) for $62.0
     million,  and have included the historical  results of CTE and GVN from the
     dates of acquisition.

                                       3
<PAGE>
<TABLE>
<CAPTION>

                       Frontier Communications Corporation
                         Consolidated Cash Flow Data (1)

                             (Amounts in thousands)

                                                                             For the six months ended June 30,
                                                                         -----------------------------------------
                                                                               2008                   2007
                                                                         -----------------     -------------------

Cash flows provided by (used in) operating activities:
<S>                                                                             <C>                    <C>
Net income                                                                      $ 101,367              $  108,226
Adjustments to reconcile income to net cash provided
   by operating activities:
     Depreciation and amortization expense                                        285,330                 262,643
     Stock based compensation expense                                               6,164                   5,445
     Loss on extinguishment of debt                                                 6,290                  20,186
     Other non-cash adjustments                                                    (7,303)                  4,760
     Deferred income taxes (including FIN 48)                                      (8,996)                 28,576
     Change in accounts receivable                                                  8,039                   4,232
     Change in accounts payable and other liabilities                             (58,597)                (71,248)
     Change in other current assets                                                 6,561                   6,736
                                                                         -----------------     -------------------
Net cash provided by operating activities                                         338,855                 369,556

Cash flows provided from (used by) investing activities:
     Capital expenditures                                                        (123,723)               (111,769)
     Cash paid for Commonwealth acquisition (net of cash acquired)                      -                (657,610)
     Other assets (purchased) distributions received, net                          (1,277)                  3,851
                                                                         -----------------     -------------------
Net cash used by investing activities                                            (125,000)               (765,528)

Cash flows provided from (used by) financing activities:

     Long-term debt borrowings                                                    135,000                 950,000
     Long-term debt payments                                                     (130,281)               (914,516)
     Settlement of interest rate swaps                                             15,521                       -
     Financing costs paid                                                            (857)                (15,753)
     Premium paid to retire debt                                                   (6,290)                (16,160)
     Issuance of common stock                                                         955                  11,472
     Dividends paid                                                              (162,324)               (170,841)
     Common stock repurchased                                                    (112,659)                (70,730)
     Repayment of customer advances for construction                                 (512)                   (506)
                                                                         -----------------     -------------------
Net cash used by financing activities                                            (261,447)               (227,034)

Decrease in cash and cash equivalents                                             (47,592)               (623,006)
Cash and cash equivalents at January 1,                                           226,466               1,041,106
                                                                         -----------------     -------------------

Cash and cash equivalents at June 30,                                           $ 178,874              $  418,100
                                                                         =================     ===================

Cash paid during the period for:
     Interest                                                                   $ 184,552              $  176,558
     Income taxes                                                               $  49,585              $   47,426

</TABLE>

(1)  On March 8, 2007,  we acquired  Commonwealth  Telephone  Enterprises,  Inc.
     (CTE) for approximately $1.1 billion,  and on October 31, 2007, we acquired
     Global  Valley  Networks,  Inc. and GVN Services  (together  GVN) for $62.0
     million,  and have included the historical  results of CTE and GVN from the
     dates of acquisition.

                                       4
<PAGE>
<TABLE>
<CAPTION>
                                                                                                                   Schedule A

             Reconciliation of Non-GAAP Financial Measures (1)


                                                    For the quarter ended June 30,           For the six months ended June 30,
                                                  ------------------------------------    -------------------------------------
 (Amounts in thousands)                                 2008               2007                 2008               2007
                                                  -----------------  -----------------    -----------------  ------------------

 Net Income to Free Cash Flow;
 -----------------------------
    Net Cash Provided by Operating Activities
    -----------------------------------------
<S>                                                      <C>                <C>                  <C>                 <C>
 Net income                                              $  55,778          $  40,559            $ 101,367           $ 108,226

  Add back:

     Depreciation and amortization                         144,250            140,462              285,330             262,643

     Income tax expense                                     21,874             25,573               48,502              67,261

     Stock based compensation                                3,145              2,038                6,164               5,445

  Subtract:
     Cash paid for income taxes                             47,726             40,640               49,585              47,426

     Other income (loss), net (2)                            4,969            (14,961)              (1,370)            (19,470)

     Capital expenditures                                   75,737             66,658              123,723             111,769

                                                  -----------------  -----------------    -----------------  ------------------
 Free cash flow                                             96,615            116,295              269,425             303,850  (3)

  Add back:
     Deferred income taxes                                  (8,714)             4,962               (8,996)             28,576

     Non-cash (gains)/losses, net                           (2,745)            19,976                5,151              30,391

     Other income (loss), net (2)                            4,969            (14,961)              (1,370)            (19,470)

     Cash paid for income taxes                             47,726             40,640               49,585              47,426

     Capital expenditures                                   75,737             66,658              123,723             111,769

  Subtract:
     Changes in current assets and liabilities              (8,775)            11,690               43,997              60,280

     Income tax expense                                     21,874             25,573               48,502              67,261

     Stock based compensation                                3,145              2,038                6,164               5,445

                                                  -----------------  -----------------    -----------------  ------------------
 Net cash provided by operating activities               $ 197,344          $ 194,269            $ 338,855           $ 369,556
                                                  =================  =================    =================  ==================

</TABLE>

(1)  On March 8, 2007,  we acquired  Commonwealth  Telephone  Enterprises,  Inc.
     (CTE) for approximately $1.1 billion,  and on October 31, 2007, we acquired
     Global  Valley  Networks,  Inc. and GVN Services  (together  GVN) for $62.0
     million,  and have included the historical  results of CTE and GVN from the
     dates of acquisition.
(2)  Includes premium on debt repurchases of $17.1 million for the quarter ended
     June 30, 2007,  and $6.3 million and $18.2 million for the six months ended
     June 30, 2008 and 2007, respectively,  and $4.0 million for bridge loan fee
     for the six months ended June 30, 2007.
(3)  Includes  the  $38.7  million   favorable   impact  of  a  carrier  dispute
     settlement.

                                       5
<PAGE>
<TABLE>
<CAPTION>
                                                                                                                 Schedule B

             Reconciliation of Non-GAAP Financial Measures (1)


                                     For the quarter ended June 30, 2008       For the quarter ended June 30, 2007
                                  -----------------------------------------  ---------------------------------------
 (Amounts in thousands)
                                                  Severance                                 Severance
                                                  and Early                                 and Early
 Operating Cash Flow and              As          Retirement       As            As         Retirement      As
    Operating Cash Flow Margin     Reported         Costs       Adjusted      Reported       Costs       Adjusted
                                 --------------  ------------ -------------  ------------  -----------  ------------


<S>                                 <C>               <C>        <C>           <C>            <C>          <C>
 Operating Income                 $   161,969       $   (480)   $  162,449    $  171,298     $ (1,594)     $172,892

  Add back:
     Depreciation and
      amortization                    144,250              -       144,250       140,462            -       140,462
                                 -------------   ------------ -------------  ------------  -----------  ------------

 Operating cash flow              $   306,219       $   (480)   $  306,699    $  311,760     $ (1,594)     $313,354
                                 =============   ============ =============  ============  ===========  ============


 Revenue                          $   562,550                   $  562,550    $  578,826                   $578,826
                                 =============                =============  ============               ============

 Operating income margin
    (Operating income divided
        by revenue)                     28.8%                        28.9%         29.6%                      29.9%
                                 =============                =============  ============               ============

 Operating cash flow margin
    (Operating cash flow
       dividend by revenue)             54.4%                        54.5%         53.9%                      54.1%
                                 =============                =============  ============               ============



                                         For the six months ended                       For the six months ended
                                              June 30, 2008                                   June 30, 2007
                                 ------------------------------------------  -------------------------------------------------------

                                                  Severance                                              Severance
                                                  and Early                                 Carrier      and Early
 Operating Cash Flow and              As          Retirement       As            As         Dispute     Retirement          As
    Operating Cash Flow Margin     Reported         Costs       Adjusted      Reported      Settlement     Costs         Adjusted
                                 --------------  ------------ -------------  ------------  -----------  ------------  --------------


 Operating Income                 $   326,281       $ (3,371)   $  329,652    $  364,600     $ 38,700      $ (1,776)     $  327,676

  Add back:
     Depreciation and
       amortization                   285,330              -       285,330       262,643            -             -         262,643
                                 -------------   ------------ -------------  ------------  -----------  ------------   -------------

 Operating cash flow              $   611,611       $ (3,371)   $  614,982    $  627,243     $ 38,700      $ (1,776)     $  590,319
                                 =============   ============ =============  ============  ===========  ============   =============


 Revenue                          $ 1,131,755                   $1,131,755    $1,134,973     $ 38,700                    $1,096,273
                                 =============                =============  ============  ===========                 =============

 Operating income margin
    (Operating income divided
        by revenue)                     28.8%                        29.1%         32.1%                                      29.9%
                                 =============                =============  ============                              =============

 Operating cash flow margin
    (Operating cash flow
     divided by revenue)                54.0%                        54.3%         55.3%                                      53.8%
                                 =============                =============  ============                              =============
</TABLE>

(1)  On March 8, 2007,  we acquired  Commonwealth  Telephone  Enterprises,  Inc.
     (CTE) for approximately $1.1 billion,  and on October 31, 2007, we acquired
     Global  Valley  Networks,  Inc. and GVN Services  (together  GVN) for $62.0
     million,  and have included the historical  results of CTE and GVN from the
     dates of acquisition.

                                       6