<PAGE>


                                      FORM 10-Q
                                           
                          SECURITIES AND EXCHANGE COMMISSION
                                           
                                WASHINGTON, D.C. 20549
                                           
                                      (Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

For the quarterly period ended               June 30, 1997  
                              ------------------------------------------------
                                        - or -
                                           
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
    EXCHANGE ACT OF 1934

    For the transition period from           to                          
                                  ---------------------------------

                                           
                            Commission file number 0-13721
                                           
                                           
                               HICKORY TECH CORPORATION
                                    P.O. Box 3248
                               221 East Hickory Street
                            Mankato, Minnesota 56002-3248
                                    (800) 326-5789
                                           
                                           
Incorporated in Minnesota    I.R.S. Employer Identification
                             41-1524393



Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities and Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the Registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. [X]


The number of shares outstanding of each of the Registrant's classes of common
stock, as of the latest practicable date: 4,592,543 shares of no par common
stock as of June 30, 1997.


<PAGE>


                               HICKORY TECH CORPORATION
                                    JUNE 30, 1997
                                           
                            PART I.  FINANCIAL INFORMATION
                                           
ITEM 1.  FINANCIAL STATEMENTS.

                            CONSOLIDATED INCOME STATEMENT
                                    (NOT AUDITED)
 
<TABLE>
<CAPTION>

In Thousands                       For Quarter Ended   For Six Months Ended
                                  ------------------   --------------------
                                     6-30-97  6-30-96   6-30-97    6-30-96
                                     -------  -------   -------    -------
<S>                                  <C>      <C>       <C>      <C>
OPERATING REVENUES
  Telephone                          $11,232  $8,533    $20,248  $17,078 
  Billing and Data Services            2,304   2,122      4,608     4,796
  Equipment Sales                      3,533   3,564      8,000     6,319
  Telecom. Product Development         2,230   1,723      3,933     3,290
                                     -------  -------   -------  --------
  TOTAL OPERATING REVENUES            19,299  15,942     36,789    31,483

COSTS AND EXPENSES
  Cost of Sales                        4,015   3,586      8,335     6,445
  Operating Expenses                   7,540   6,801     14,744    13,942
  Depreciation                         1,729   1,363      3,152     2,748
  Amortization of Intangibles            352     882        550     1,184
                                     -------  -------   -------  --------
  TOTAL COSTS AND EXPENSES            13,636  12,632     26,781    24,319
                                     -------  -------   -------  --------
  OPERATING INCOME                     5,663   3,310     10,008     7,164

  OTHER INCOME                           421     241        753       540
  INTEREST EXPENSE                      (664)    (42)      (720)     (137)
                                     -------  -------    -------  --------
  INCOME BEFORE INCOME TAXES           5,420   3,509      10,041     7,567

  INCOME TAXES                         2,264   1,338       4,163     2,980
                                     -------  -------    -------  --------
  CONSOLIDATED NET INCOME             $3,156  $2,171      $5,878    $4,587
                                     -------  -------    -------  --------
                                     -------  -------    -------  --------

  EARNINGS PER SHARE                  $0.68   $0.43       $1.26     $0.90

  DIVIDENDS PER SHARE                 $0.300  $0.275      $0.60     $0.55

</TABLE>

       The accompanying notes are an integral part of the financial statements.

<PAGE>


                               HICKORY TECH CORPORATION
                                    JUNE 30, 1997
                      CONSOLIDATED BALANCE SHEET (NOT AUDITED) 
                                           

<TABLE>
<CAPTION>

In Thousands                                        6/30/97       12/31/96
                                                 ------------   ------------
<S>                                              <C>            <C>

ASSETS
CURRENT ASSETS:
  Cash and Cash Equivalents                            ($10)        $2,954
  Receivables, Net of Allowance                      11,867         10,782
  Inventories                                         2,616          2,859
  Deferred Tax Benefit and Other                      1,266          1,372
                                                 ------------   ------------
    TOTAL CURRENT ASSETS                             15,739         17,967
INVESTMENTS                                           3,183          2,980
PROPERTY, PLANT & EQUIPMENT:
  Telecommunications Plant                          106,971         78,132
  Other Property and Equipment                        9,834          9,464
                                                 ------------   ------------
    TOTAL                                           116,805         87,596
  Less Accumulated Depreciation                      61,448         46,723
                                                 ------------   ------------
    NET PROPERTY, PLANT AND EQUIPMENT                55,357         40,873
OTHER ASSETS:
  Intangible Assets                                  31,745          8,735
  Note Receivable                                        65            230
  Miscellaneous                                         471            478
                                                 ------------   ------------
    TOTAL OTHER ASSETS                               32,281          9,443
                                                 ------------   ------------
TOTAL ASSETS                                       $106,560        $71,263
                                                 ------------   ------------
                                                 ------------   ------------
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
  Accounts Payable and Accrued Taxes                 $7,632         $9,396
  Advanced Billings & Deposits                        1,925          2,080
  Current Maturities of Long-Term Debt                    -            212
                                                 ------------   ------------
    TOTAL CURRENT LIABILITIES                         9,557         11,688
LONG-TERM DEBT, NET OF CURRENT MATURITIES            41,038            877
DEFERRED CREDITS:
  Income Taxes and Credits                            2,889          2,921
  Compensation Benefits and Other                     3,047          3,150
                                                 ------------   ------------
    TOTAL DEFERRED CREDITS                            5,936          6,071
SHAREHOLDERS' EQUITY:
  Common Stock                                          459            479
  Additional Paid-In Capital                          1,803          1,778
  Reinvested Earnings                                47,767         50,370
                                                 ------------   ------------
    TOTAL SHAREHOLDERS' EQUITY                       50,029         52,627
                                                 ------------   ------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY           $106,560        $71,263
                                                 ------------   ------------
                                                 ------------   ------------
</TABLE>
                                           
       The accompanying notes are an integral part of the financial statements.

<PAGE>

                              HICKORY TECH CORPORATION
                                    JUNE 30, 1997
                  CONSOLIDATED STATEMENT OF CASH FLOWS (NOT AUDITED)

<TABLE>
<CAPTION>

In Thousands                                              6/30/97        6/30/96
                                                       ------------   ------------
<S>                                                    <C>            <C>

CASH FLOWS FROM OPERATING ACTIVITIES
  Net Income                                               $5,878         $4,587
  Adjustments to Reconcile Net Income to Net
    Cash Provided by Operating Activities
    Depreciation and Amortization                           3,790          4,058
    Equity in Subsidiary Income                              (372)          (241)
    Provision for Losses on Notes Rec. & Investments          375            130
    Gain from Disposition of Assets                          (326)             0
                                                        ------------   ------------
  CASH PROVIDED FROM OPERATIONS BEFORE CHANGES
    IN ASSETS AND LIABILITIES                               9,345          8,534
    Changes in Assets and Liabilities Net of 
      Effects of Acquisitions and Dispositions:
    (Increase) Decrease in:
      Receivables                                          (1,085)        (1,758)
      Inventories                                             243           (447)
    Increase (Decrease) in:
    Accounts Payable and Accrued Taxes                     (1,764)          (600)
    Advanced Billings & Deposits                             (155)          (277)
    Deferred Income Taxes and Credits                         (32)           (72)
    Other                                                      10           (388)
                                                       ------------   ------------
  Net Cash Provided by Operating Activities                 6,562          4,992
                                                       ------------   ------------
CASH FLOWS FROM INVESTING ACTIVITIES
  Additions to Property, Plant & Equipment                (17,795)        (1,656)
  Additions  to Intangible Assets                         (23,560)        (1,057)
  Increase in Note Receivable and Investments                 (41)           (43)
  Decrease in Temporary Cash Investments                        0          5,899
  Proceeds from Sale of Assets                                397              0
                                                       ------------   ------------
  Net Cash Provided by(Used in) Investing Activities      (40,999)         3,143
                                                       ------------   ------------
CASH FLOWS FROM FINANCING ACTIVITIES
  Repayments of  Debt                                         (51)          (101)
  Increase in Long-Term Debt                               40,000              0
  Proceeds from Issuance of Common Stock                      100            303
  Acquisition of Common Stock                              (5,773)        (3,612)
  Dividends Paid                                           (2,803)        (2,811)
                                                       ------------   ------------
  Net Cash Provided by(Used in) Financing Activities       31,473         (6,221)
                                                       ------------   ------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS       (2,964)         1,914

CASH AND CASH EQUIVALENTS At Beginning of Year              2,954          4,517
                                                       ------------   ------------
CASH AND CASH EQUIVALENTS At End of Period                   ($10)       $6,431 
                                                       ------------   ------------
                                                       ------------   ------------
</TABLE>
                                           
       The accompanying notes are an integral part of the financial statements.

<PAGE>

                              HICKORY TECH CORPORATION
                                    JUNE 30, 1997
                            PART 1. FINANCIAL INFORMATION

ITEM 1.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
         The preceding, not audited, Consolidated Statement of Income, 
Balance Sheet and Statement of Cash Flows include all adjustments which are, 
in the opinion of management, necessary to present a fair statement of the 
results for the interim periods being reported.

NOTE 1.  BASIS OF CONSOLIDATION
         The Registrant is a communications holding company headquartered in 
Mankato, Minnesota. The consolidated financial statements of the Registrant 
include Hickory Tech Corporation, the parent company, and its eight 
wholly-owned operating subsidiaries. The companies and operations of the 
Registrant are grouped into four primary lines of business.

         MANKATO CITIZENS TELEPHONE COMPANY, MID-COMMUNICATIONS, INC., AMANA 
COLONIES TELEPHONE COMPANY, and HEARTLAND TELECOMMUNICATIONS COMPANY OF IOWA 
are local exchange telephone companies.  Mankato Citizens Telephone Company 
and Mid-Communications, Inc. provide telephone service in south central 
Minnesota, specifically, Mankato (population 42,000) and eleven communities 
surrounding Mankato.  CABLE NETWORK, INC. owns and operates fiber optic cable 
facilities in southern Minnesota which are used to transport interexchange 
communications as a service to telephone exchange carriers. It also holds a 
minority ownership interest in a rural cellular limited liability company in 
south central Minnesota.  Amana Colonies Telephone Company provides telephone 
service for the seven communities of the Amana Colonies in east central Iowa. 
Heartland Telecommunications Company of Iowa provides telephone service for 
eleven communities in northwest Iowa. These five subsidiaries comprise the 
Registrant's Telephone Sector.

        COMPUTOSERVICE, INC. (CSI) provides data processing service to local 
telephone companies, interexchange long distance companies and enhanced 
service providers throughout the United States. CSI also provides standard 
batch processing of telephone billing and rating in large volume 
applications, as well as specialized contract data processing services, 
through its subsidiary, National Independent Billing, Inc. (NIB). The 
operations of CSI and NIB constitute the Registrant's Billing and Data 
Services Sector.

        COLLINS COMMUNICATIONS SYSTEMS CO. (Collins) sells, installs and 
services telecommunications equipment in the retail market in the 
metropolitan Minneapolis/St. Paul area. Collins primarily installs and 
maintains Nortel PBX and key system equipment and integrated software. The 
Registrant's Equipment Sales Sector is comprised of this subsidiary.

        DIGITAL TECHNIQUES, INC. (DTI) designs, assembles and distributes 
unique business telecommunications components for business telephone systems 
throughout North America, the United Kingdom and the Pacific Rim. The 
operations comprise the Registrant's Telecommunications Product Development 
Sector.

        The accounting policies of the Registrant are in conformity with 
generally accepted accounting principles and, where applicable, conform to 
the accounting principles as prescribed by federal and state telephone 
utility regulatory authorities.

<PAGE>

         All intercompany transactions have been eliminated from the 
consolidated financial statements.

         Certain balances for 1996 have been restated to conform with 
presentation of 1997. In the quarter ended June 30, 1996 and the six month 
period ended June 30, 1996, $546,000 and $1,167,000 respectively, of revenues 
associated with Equipment Sales in southern Minnesota and Iowa were 
reclassified from the Equipment Sales Sector to the Telephone Sector. This 
reclassification more closely matches the Company's management reporting 
lines. Total revenues and all other subtotals of the Consolidated Income 
Statement remain unchanged.

NOTE 2.  EARNINGS AND CASH DIVIDENDS PER COMMON SHARE
         Earnings per common share are based on the weighted average number 
of shares of common stock equivalents outstanding during all periods. For the 
quarter ended June 30, 1997, the earnings per common share calculation was 
based on 4,613,091 shares. For the six months ended June 30, 1997, the 
calculation was based on 4,662,495 shares. For the quarter ended June 30, 
1996, the earnings per common share calculation was based on 5,081,645 
shares. For the six months ended June 30, 1996, the calculation was based on 
5,101,992 shares. The number of shares outstanding on June 30, 1997 was 
4,592,543.

         Cash dividends are based on the number of common shares outstanding 
at the respective record dates. The number of shares outstanding as of the 
record date for the first and second quarters of 1997 and 1996 were as 
follows:

<TABLE>
<CAPTION>

      SHARES OUTSTANDING ON RECORD DATE                1997           1996
      ---------------------------------           ---------      ---------
      <S>                                         <C>            <C>

                    1st Quarter (Feb 15)          4,733,981      5,121,873
                    2nd Quarter (May 15)          4,608,924      5,098,119
    
</TABLE>

NOTE 3.  INVENTORIES
    Inventories are stated at the lower of average cost or market and consist
of the following:

<TABLE>
<CAPTION>

              (IN THOUSANDS)           6/30/97   12/31/96
              ---------------         --------   --------
              <S>                     <C>        <C>

              Finished Goods              $188     $  211
              Work in Process              195        156
              Materials and Supplies     2,233      2,492
              ---------------         --------   --------
              Total                    $  2,616  $  2,859
              ---------------         --------   --------
              ---------------         --------   --------
</TABLE>

NOTE 4.  COMMON STOCK
         The Registrant's common stock has no par value. There are 25,000,000 
shares authorized. There were 4,592,543 shares outstanding on June 30, 1997, 
and 4,790,229 shares outstanding on December 31, 1996.

         Pursuant to the Retainer Stock Plan for Directors, 264 shares of 
common stock were issued in place of retainers to three members of the 
Registrant's Board of Directors on March 31, 1997 and 270 shares were issued 
to three Directors on June 30, 1997. Pursuant to a long-term incentive award 
plan for officers, 3,155 shares of common stock were issued to officers of 
the Registrant. Shares issued to directors and officers were issued at 100% 
of fair market value on the date of issue.

<PAGE>

         During the six months ended June 30, 1997, 201,375 shares of common 
stock were retired at a cost of $5,774,293.

          On January 29, 1997, the Board of Directors of the Registrant 
adopted a new share repurchase program authorizing the Registrant to 
repurchase up to 500,000 additional shares, which represented 10.8% of its 
outstanding common stock. This new repurchase program follows the repurchase 
program which the Registrant announced on April 8, 1996. Due to the 
successful completion of the initial repurchase program in February 1997, the 
Registrant began the new repurchase program effective February 17, 1997. This 
program was reported on Form 8-K dated February 17, 1997.

NOTE 5.  CORPORATE DEVELOPMENT
         On January 31, 1997, the Registrant sold the assets associated with 
its cable television operations to Woodstock LLC. The Registrant recorded a 
gain on the sale of the assets of $326,000.

         On April 10, 1997, the Registrant acquired the assets of eleven 
rural telephone exchanges in the State of Iowa from US West Communications, 
Inc. ("US West") for $35,271,000. The eleven exchanges contain approximately 
12,500 access lines. The new exchanges are reported as operations of 
Heartland Telecommunications Company of Iowa, a wholly-owned subsidiary of 
the Registrant. The acquisition was structured as a purchase of telephone 
assets from US West. The acquisition was financed by new long-term debt 
instruments from seven institutional investors in a private debt placement. A 
total of $40,000,000 in senior unsecured notes was funded. This acquisition 
was reported on Form 8-K dated April 25, 1997.

NOTE 6.  OTHER
         Certain information and footnote disclosures normally included in 
financial statements prepared in accordance with generally accepted 
accounting principles have been condensed or omitted. It is suggested these 
condensed financial statements be read in conjunction with the financial 
statements and notes thereto included in the Registrant's December 31, 1996 
Form 10-K.

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
FINANCIAL CONDITION.

         Consolidated net income for the quarter ended June 30, 1997, was 
45.4% higher than the same period in 1996, as illustrated by the following 
table:

<TABLE>
<CAPTION>

    NET INCOME (thousands)        1997      1996      1995      1994
    ----------------------        ------    ------    ------    ------
    <S>                           <C>       <C>       <C>       <C>

    1st  Quarter                  $2,722    $2,416    $2,221    $2,121
    2nd  Quarter                  $3,156    $2,171    $2,505    $2,255

</TABLE>

         Operating Revenues were 21.1% higher for the quarter ended June 30, 
1997, than for the quarter ended June 30, 1996, as illustrated by the 
following table:

<TABLE>
<CAPTION>

    OPERATING REVENUES (thousands)     1997      1996      1995      1994
    ------------------------------     -------   -------   -------   -------
    <S>                                <C>       <C>       <C>       <C>

    1st  Quarter                       $17,490   $15,541   $14,647   $14,095
    2nd  Quarter                       $19,299   $15,942   $15,573   $14,589

</TABLE>

<PAGE>

A.  Material changes in results of operations:

    1.   TELEPHONE - Operating Revenues for the second quarter of 1997 
increased $2,699,000 or 31.6% compared with the same period in 1996. For the 
six months ended June 30, 1997, Operating Revenues were $3,170,000 or 18.6% 
higher than the same period in 1996. The primary contributors to the revenue 
growth include the commencement of Heartland Telecommunications Company of 
Iowa operations on April 10, 1997, new fiber optic cable networks providing 
additional toll transport revenue, access line growth and minutes of use 
growth. Without the commencement of Heartland Telecommunications Company of 
Iowa operations, Operating Revenues would have increased $1,255,000 or 7.3% 
for the first six months of 1997 compared to the same period in 1996.

    2.   BILLING AND DATA SERVICES - Operating Revenues for the second 
quarter of 1997 increased $182,000 or 8.6% compared with the same period in 
1996. For the six months ended June 30, 1997, Operating Revenues were 
$188,000 or 3.9% lower than the six months ended June 30, 1996. The increase 
in the second quarter can be attributed to increased messages processed for 
an international long distance carrier, now in the local exchange telephone 
business, and an increase in the long distance reseller business. The decline 
in Operating Revenues for the six month period ending June 30, 1997 was 
mostly due to activities in the first quarter of 1997. During first quarter 
1997, revenues attributed to contract programming services were $302,000 
lower as compared to the same period in the prior year. Although the revenues 
were lower, the higher margins associated with processing the sector's 
growing volume of service bureau transactions resulted in a significant 
increase in profitability for this sector.

    3.   EQUIPMENT SALES - Operating Revenues for this sector for the quarter 
ended June 30, 1997 decreased $31,000 or 0.9% compared with the quarter ended 
June 30, 1996. For the six months ended June 30, 1997, Operating Revenues 
were $1,681,000 or 26.6% higher than the same period in 1996. This six month 
period increase in Operating Revenues was a result of a $827,000 increase in 
new phone system installations and $852,000 increase in phone system moves, 
adds and changes (MAC) over the first six months of 1996. The Equipment Sales 
Sector experienced considerable customer base growth in 1996 that has 
assisted in the higher margin MAC activity in the first six months of 1997.

    4.   TELECOMMUNICATIONS PRODUCT DEVELOPMENT - Operating Revenues for the 
quarter ended June 30, 1997 increased $507,000 or 29.4% compared with the 
second quarter of 1996. For the six months ended June 30, 1997, Operating 
Revenues were $643,000 or 19.5% higher than the six months ended June 30, 
1996. Standard Product Sales increased $580,000 as compared to 1996's first 
six months. Standard Product Sales are sold at a higher margin than Original 
Equipment Manufacturer (OEM) Sales. The OEM Sales were flat as compared to 
the same period in 1996. The sector generated a net profit of $121,000 for 
the first six months of 1997, compared to a net loss of $128,000 for the same 
period in 1996.

<PAGE>

    5.   COST OF SALES - Cost of Sales increased $429,000 or 12.0% for the 
quarter ended June 30, 1997, compared with the same period in 1996. For the 
six months ended June 30, 1997, Cost of Sales were $1,890,000 or 29.3% higher 
than the six months ended June 30, 1996. Through the first six months of 
1997, Operating Revenues for the two sectors (Equipment Sales and 
Telecommunications Product Development) which generated most of the Cost of 
Sales increased $2,324,000 or 24.2% compared with Operating Revenues during 
the six months ended June 30, 1996. In terms of percentage of Operating 
Revenues from these two sectors, Cost of Sales was 69.8% for the six months 
ended June 30, 1997, compared to 67.1% for the same period in 1996. Operating 
margins have been satisfactory to management, considering the new business 
development for Collins and DTI. 

         6.   OPERATING EXPENSES - Operating Expenses for the quarter ended 
June 30, 1997, increased $739,000 or 10.9% compared with the same period in 
1996. For the six months ended June 30, 1997, Operating Expenses were 
$802,000 or 5.8% higher than the six months ended June 30, 1996. Heartland 
Telecommunications Company of Iowa's Operating Expenses were $635,000 for the 
period of April 10, 1997 through June 30, 1997. Without the addition 
Heartland Telecommunications Company of Iowa's Operating Expense, the first 
six months would have only increased $167,000 or 1.2%. This minimal increase 
is a result of various cost control measures implemented in 1996. Operating 
Expense curtailment has been particularly effective in the Billing and Data 
Services and the Telecommunications Product Development Sectors.

    7.   DEPRECIATION - Depreciation expense for the quarter ended June 30, 
1997 was $366,000 or 26.9% higher than for the same period ended June 30, 
1996. For the six months ended June 30, 1997, Depreciation expense was 
$404,000 or 14.7% higher than for the same period in 1996. The increase is 
due to the new operations of Heartland Telecommunications Company of Iowa 
that incurred $312,000 in Depreciation expense in the six months ended June 
30, 1997. 
         
     8.  AMORTIZATION OF INTANGIBLES - Amortization for the quarter ended 
June 30, 1997, was $530,000 lower than for the quarter ended June 30, 1996. 
For the six months ended June 30, 1997, Amortization was $634,000 lower than 
for the same period in 1996. In the second quarter 1996, the Registrant 
accelerated the amortization of capitalized software costs in its Billing and 
Data Services Sector, which resulted in a nonrecurring expense of $573,000. 

    9.   OTHER INCOME - Other Income increased $180,000 or 74.7% for the 
quarter ended June 30, 1997, compared to the same period last year. For the 
six months ended June 30, 1997, Other Income was $213,000 higher than for the 
same period in 1996. Gain on the sale of cable television assets of $326,000, 
Equity in Cellular Partnership income increase of $130,000, miscellaneous 
income increase of $270,000, and offsets of provision for losses on note 
receivable and investments of $375,000 were the contributors to the balance.

    INTEREST EXPENSE - Interest Expense increased $622,000 for the quarter 
ended June 30, 1997, compared to the same period last year. For the six 
months ended June 30, 1997, Interest Expense was $583,000 higher than for the 
same period in 1996. The increase in Interest Expense was due to the 
Registrant securing $40,000,000 long-term debt instruments in April 1997 for 
the acquisition of the US West telephone exchanges in Iowa which are operated 
as Heartland Telecommunications Company of Iowa.

<PAGE>

B.  Material changes in financial condition: 
    1.   CASH FLOWS - Cash and Cash Equivalents decreased $2,964,000 for the 
six months ended June 30, 1997, compared with an increase of $1,914,000 for 
the same period in 1996. The primary sources of cash in 1997 were from the 
securing of long term debt instruments of $40,000,000 and from the 
Registrant's internal operations. The primary uses of cash in the first six 
months of 1997 were the acquisition of the US West telephone exchanges in 
Iowa for $35,271,00 and the Registrant's stock repurchase program which 
required $5,773,000. Additions to Property, Plant and Equipment required 
$4,846,000 in 1997 and $1,656,000 in 1996. Dividends paid for the first six 
months were $2,803,000 in 1997 compared to $2,811,000 for the same period in 
1996. The 0.3% decrease was due to a combination of a $0.05 or 9.1% per share 
increase in dividends paid, offset by a 877,087 or an average of 8.6% 
decrease in the number of shares outstanding on the respective record dates.

    2.   WORKING CAPITAL - Current Assets exceeded Current Liabilities by 
$6,182,000 as of June 30, 1997, compared to a working capital surplus of 
$6,279,000 as of December 31, 1996. The ratio of current assets to current 
liabilities was 1.6:1.0 as of June 30, 1997.
    3.   LONG-TERM DEBT - The Registrant's Long-Term Debt as of June 30, 
1997, was $41,038,000.
     On April 8, 1997, the Registrant secured new $40,000,000 long-term debt 
instruments with 15 year maturities to fund the $35,271,000 acquisition of 
the Iowa - US West telephone exchanges. The new long-term debt will accrue 
interest at 7.11%. No principal payments are due during the first four years. 
     In addition, the Registrant has $1,038,000 of outstanding long term debt 
that was secured in the 1970's with Rural Utilities Service (RUS) for the 
financing of telephone property, plant and equipment of Mid-Communications, 
Inc. Due to accumulated principal prepayment credits with RUS, the Registrant 
has not recorded current maturities on the long-term debt. The accumulated 
prepayment credits will be applied to the long-term debt payments over the 
next twelve months. This debt has final maturities at various times in 2003 
through 2007 with interim sinking fund payments. Currently debt service is 
being funded out of operations. No material liquidity problems are 
anticipated from the long-term funding of the debts maturing in 2003 through 
2007.
     In July 1996, the Registrant secured a $10,000,000 line of credit 
arrangement. This line of credit will be used for general corporate purposes 
and as bridge financing for future acquisition activity. The line of credit 
provides for borrowing at a variable annual rate equal to 150 basis points in 
excess of the 30 day LIBOR rate. On June 30, 1997, the Registrant had no 
advances against this line of credit.

    4.   CAPITAL FROM OPERATIONS - Management believes the Registrant will be 
able to generate sufficient working capital internally from operations to 
meet its immediate operating needs, and sustain its historical dividend 
levels. The Registrant has completed seven acquisitions in the previous six 
years which were funded out of existing cash balances. The April 1997 
acquisition of Iowa rural telephone assets from US West required external 
debt financing. Growth plans and acquisitions in the future will require 
additional debt financing. Should the Registrant have a need to secure 
additional senior debt financing as a result of pursuing additional corporate 
acquisitions, the Registrant has been assured by its financial capital 
sources that no difficulty should be anticipated.
     The Registrant's stock repurchase program has been funded with internal 
cash and advances on the line of credit to date. It is anticipated the same 
sources will be utilized for financing future stock repurchases. 

<PAGE>
                                           
                               HICKORY TECH CORPORATION
                                    June 30, 1997
                              PART II. OTHER INFORMATION
                              --------------------------

Item 1.  LEGAL PROCEEDINGS.
         None.

Item 2.  CHANGES IN SECURITIES.
         None.

Item 3.  DEFAULT UPON SENIOR SECURITIES.
         None.

Item 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
    
         a.   The annual shareholders' meeting was held on April 14, 1997.

         b.   Two directors were elected to serve three year terms.  The names
              of  the directors elected at the annual meeting and the
              applicable votes were as follows:

<TABLE>
<CAPTION>
                                                                 BROKER
           DIRECTOR              FOR        AGAINST   WITHHELD  NONVOTES
      -------------------     ---------     -------   --------  --------
      <S>                     <C>           <C>       <C>       <C>

      Lyle T. Bosacker        3,506,910      62,278       290    None
      Brett M. Taylor,        3,501,726      65,326     2,426    None

</TABLE>

    The other directors of the Registrant are as follows:

      Robert D. Alton, Jr.                       Lyle G. Jacobson    
      Robert K. Else                             R. Wynn Kearney, Jr.
      James H. Holdrege                          Starr J. Kirklin    

         c.   Olsen Thielen & Co., Ltd. was also confirmed as the auditors
              for the Registrant for 1997 at the annual meeting. The votes
              regarding the selection of the auditors were as follows:

<TABLE>
<CAPTION>

                                                       BROKER
               FOR     AGAINST         ABSTAIN        NONVOTES
               ---     -------         -------        --------
         <S>           <C>             <C>            <C>

         3,726,194     13,884           28,462          None

</TABLE>

Item 5.  OTHER INFORMATION.
         None.

Item 6.  EXHIBITS AND REPORTS OF FORM 8-K.
    
         On July 30, 1997, the Registrant filed a Form 8-K.  Items 2 
(Acquisition or Disposition of Assets) and 7 (Financial Statements and 
Exhibits) were reported on the Form 8-K. The Form 8-K reported that on July 
15, 1997, the Company sold its exclusive DirecTV distribution rights in seven 
counties in southern Minnesota to Golden Sky Systems, Inc. of Kansas City, 
Missouri in exchange for approximately $7.2 million in cash. The DirecTV 
distribution rights were acquired by the Registrant in 1993 and had a net 
asset value of approximately $900,000 as of July 15, 1997.

<PAGE>

                                      SIGNATURES
                                           
    Pursuant to the requirements of the Securities and Exchange Act of 1934, 
the Registrant has duly caused this report to be signed on its behalf by the 
undersigned hereto duly authorized.

Dated:   August  13, 1997                         HICKORY TECH CORPORATION
         ----------------


         By      /s/ Robert D. Alton, Jr.
             ----------------------------------------------------------------
                 Robert D. Alton, Jr., Chief Executive Officer





         By        /s/ David A. Christensen 
             ----------------------------------------------------------------
                 David A. Christensen, Chief Financial Officer