<PAGE>


                                     FORM 10-Q

                         SECURITIES AND EXCHANGE COMMISSION

                                WASHINGTON, DC 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    March 31, 1998
                                        -----------------------

                                       - 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          IRS 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: 4,542,940 shares of no par 
common stock as of March 31, 1998.


<PAGE>

                           HICKORY TECH CORPORATION
                                March 31, 1998

                        PART I. FINANCIAL INFORMATION


ITEM 1.  FINANCIAL STATEMENTS.

                        CONSOLIDATED INCOME STATEMENTS
                                  (UNAUDITED)

<TABLE>
<CAPTION>
In Thousands                                      For Three Months Ended
                                                  ------------------------
                                                    3/31/98      3/31/97
                                                  ------------  ----------
<S>                                               <C>           <C>
OPERATING REVENUES
 Telephone                                         $  11,670      $  9,016
 Billing / Data Services                               2,158         2,304
 Communications Products and Services                  6,850         6,170
                                                  ------------  ----------
 TOTAL OPERATING REVENUES                             20,678        17,490

COSTS AND EXPENSES
 Cost of Sales                                         5,137         4,320
 Operating Expenses                                    7,869         7,204
 Depreciation                                          1,858         1,423
 Amortization of Intangibles                             202           198
                                                  ------------  ----------
 TOTAL COSTS AND EXPENSES                             15,066        13,145
                                                  ------------  ----------
OPERATING INCOME                                       5,612         4,345

OTHER INCOME                                             347           332
INTEREST EXPENSE                                         772            56
                                                  ------------  ----------
INCOME BEFORE INCOME TAXES                             5,187         4,621

INCOME TAXES                                           2,145         1,899
                                                  ------------  ----------
CONSOLIDATED NET INCOME                             $  3,042      $  2,722
                                                  ------------  ----------
                                                  ------------  ----------


EARNINGS PER SHARE                                  $  0.67       $  0.58
                                                  ------------  ----------
EARNINGS PER SHARE ASSUMING DILUTION                $  0.67       $  0.58
                                                  ------------  ----------
DIVIDENDS PER SHARE                                 $  0.33       $  0.30
                                                  ------------  ----------

</TABLE>



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


                                     -1-

<PAGE>

                           HICKORY TECH CORPORATION
                                March 31, 1998

                          CONSOLIDATED BALANCE SHEETS
                                  (UNAUDITED)

<TABLE>
<CAPTION>

In Thousands                                           3/31/98        12/31/97
                                                     -----------    ------------
<S>                                                  <C>            <C>
ASSETS
CURRENT ASSETS:
 Cash and Cash Equivalents                            $   3,633       $   1,219
 Receivables, Net of Allowances of $517 in 1998          14,337          12,609
               and $271 in 1997
 Inventories                                              3,147           3,131
 Deferred Tax Benefit and Other                           1,534           1,314
                                                     -----------    ------------
 TOTAL CURRENT ASSETS                                    22,651          18,273

INVESTMENTS                                               3,771           3,657

PROPERTY, PLANT & EQUIPMENT
 Telecommunications Plant                               111,071         110,229
 Other Property and Equipment                            11,223          11,000
                                                     -----------    ------------
 TOTAL                                                  122,294         121,229
 Less Accumulated Depreciation                           65,277          63,460
                                                     -----------    ------------
 NET PROPERTY, PLANT & EQUIPMENT                         57,017          57,769

INTANGIBLE ASSETS                                        31,985          32,135

OTHER                                                       636             550

TOTAL ASSETS                                          $ 116,060      $  112,384
                                                     -----------    ------------
                                                     -----------    ------------
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
 Accounts Payable                                     $   5,429       $   6,765
 Accrued Interest                                         1,456             735
 Accrued Taxes                                            1,861             191
 Advanced Billings & Deposits                             2,686           1,878
 Current Maturities of Long-Term Debt                       439             439
                                                     -----------    ------------
 TOTAL CURRENT LIABILITIES                               11,871          10,008

LONG-TERM DEBT, NET OF CURRENT MATURITIES                41,531          41,525

DEFERRED INCOME TAXES                                     2,474           2,496

DEFERRED COMPENSATION AND OTHER                           3,147           3,178

SHAREHOLDERS' EQUITY:
 Common Stock                                               454             454
 Additional Paid-In Capital                               2,307           1,990
 Reinvested Earnings                                     54,276          52,733
                                                     -----------    ------------
 TOTAL SHAREHOLDERS' EQUITY                              57,037          55,177

TOTAL LIABILITIES & SHAREHOLDERS' EQUITY              $ 116,060       $ 112,384
                                                     -----------    ------------
                                                     -----------    ------------

</TABLE>

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


                                         -2-


<PAGE>

                           HICKORY TECH CORPORATION
                                March 31, 1998

                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (UNAUDITED)

<TABLE>
<CAPTION>

                                                           For Three Months Ended
                                                         --------------------------
In Thousands                                              3/31/98         3/31/97
                                                         ----------      ----------
<S>                                                      <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
 Net Income                                               $  3,042        $  2,722
 Adjustments to Reconcile Net Income to Net
 Cash Provided by Operating Activities:
  Depreciation and Amortization                              2,060           1,665
  Equity in income of non-consolidated affiliates             (254)           (148)
  Provision for Losses on Notes Rec. and Investments           -               175
  Gain resulting from disposition of assets                    (12)           (326)
 Changes in Operating Assets and Liabilities:
  Receivables                                               (1,728)           (345)
  Inventories                                                  (16)            157
  Accounts Payable and Accrued Liabilities                   1,372          (1,733)
  Advance Billings & Deposits                                  808            (613)
  Deferred Income Taxes                                       (242)            (16)
  Other                                                       (111)            167
                                                         ----------      ----------
 NET CASH PROVIDED BY OPERATING ACTIVITIES                   4,919           1,705
                                                         ----------      ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
 Capital Expenditures                                       (1,087)         (1,452)
 Increase in Notes Receivable and Investments                  (43)           (138)
 Distributions from non-consolidated affiliates                183              77
 Proceeds from sale of assets                                   13             397
 Other                                                         (72)            (64)
                                                         ----------      ----------
 NET CASH USED IN INVESTING ACTIVITIES                      (1,006)         (1,180)
                                                         ----------      ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
 Proceeds from issuance of debt                                -             2,170
 Repayments of debt                                            -               (52)
 Retirement  of common stock                                   -            (3,699)
 Dividends Paid                                             (1,499)         (1,420)
                                                         ----------      ----------
 NET CASH USED IN FINANCING ACTIVITIES                      (1,499)         (3,001)
                                                         ----------      ----------
NET INCREASE(DECREASE) IN CASH AND CASH EQUIVALENTS          2,414          (2,476)

CASH AND CASH EQUIVALENTS At Beginning of Year               1,219           2,954

                                                         ----------      ----------
CASH AND CASH EQUIVALENTS At End of Period                $  3,633        $    478
                                                         ----------      ----------
                                                         ----------      ----------

</TABLE>

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

                                         -3-


<PAGE>

                              HICKORY TECH CORPORATION
                                   MARCH 31, 1998
                           PART 1. FINANCIAL INFORMATION

ITEM 1.   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

     The preceding, unaudited, Consolidated Statements of Income, Balance 
Sheets and Statements of Cash Flows contain all adjustments representing 
normal recurring items 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 nine 
wholly-owned operating subsidiaries. The companies and operations of the 
Registrant are grouped into three 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. 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. 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.  These five 
subsidiaries comprise the Registrant's Telephone Sector.

     NATIONAL INDEPENDENT BILLING, INC.(NIBI) provides data processing 
service to local telephone companies, interexchange long distance companies 
and enhanced service providers throughout the United States. NIBI also 
provides standard batch processing of telephone billing and rating in large 
volume applications, as well as specialized contract data processing 
services. The operations of NIBI constitute the Registrant's Billing/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. 
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.  CRYSTAL 
COMMUNICATIONS, INC. (Crystal), beginning operations in January 1998, 
currently markets resale long distance service to the Registrant's Telephone 
Sector's southern Minnesota and northwestern Iowa subscribers. In addition, 
Crystal is exploring opportunities to become an alternative choice for 
telecommunications service on a local service basis to customers in towns in 
southern Minnesota and Iowa not currently in the Registrant's Telephone 
Sector's service area. These three subsidiaries comprise the Registrant's 
Communications Products and Services Sector.


                                         -4-

<PAGE>

     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. All intercompany transactions have been 
eliminated from the consolidated financial statements. Certain balances for 
1997 have been reclassified to conform with the 1998 presentation. 


NOTE 2.   EARNINGS AND CASH DIVIDENDS PER COMMON SHARE
     Basic earnings per share is computed by dividing net income by the 
weighted average number of shares of common stock outstanding during the 
year.   Shares used in the earnings per share assuming dilution calculation 
are based on the weighted average number of shares of common stock 
outstanding during the year increased by dilutive potential common shares.  
Dilutive potential common shares include stock options and stock subscribed 
under the employee stock purchase plan (ESPP).

<TABLE>
<CAPTION>
                                              3/31/98        3/31/97
                                              -------        -------
<S>                                          <C>            <C>
Weighted average shares outstanding          4,538,586      4,712,448
Stock options                                    7,870              -
Stock subscribed (ESPP)                          3,768          4,352
                                                 -----          -----
Total dilutive shares outstanding            4,550,224      4,716,800
                                             ---------      ---------
                                             ---------      ---------

</TABLE>

     Options to purchase 42,328 shares were not included in the period ending 
March 31, 1997 computation of earnings per share assuming dilution because 
including them would have been anti-dilutive.

     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 quarter ended March 31, 1998 was 4,542,672.  The number 
of shares outstanding as of the record date for the quarter ended March 31, 
1997 was 4,733,981.

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

<TABLE>
<CAPTION>

           (In Thousands)                               3/31/98        12/31/97
                                                        -------        --------
           <S>                                          <C>            <C>
           Finished Goods                               $   346        $   264
           Work in Process                                  153            210
           Materials and Supplies                         2,648          2,657
                                                          -----          -----
           Total                                        $ 3,147        $ 3,131
                                                        -------        -------
                                                        -------        -------

</TABLE>
NOTE 4.   COMMON STOCK
     The Registrant's common stock has no par value. The common stock has a
stated value of $0.10 per share.  There are 25,000,000 shares authorized. There
were 4,542,940 shares outstanding on March 31, 1998, and 4,534,119 shares
outstanding on December 31, 1997.


                                         -5-


<PAGE>

     Pursuant to the Retainer Stock Plan for Directors, 268 shares of common 
stock were issued in lieu of retainers to four members of the Registrant's 
Board of Directors on March 31, 1998. Pursuant to a long-term incentive award 
plan for officers, 6,041 shares of common stock were issued to officers of 
the Registrant. Also pursuant to the long-term incentive award plan, 2,512 
shares of common stock were issued to HTC Rabbi Trust based on the election 
of four officers for funding of their long-term incentive award. Shares 
issued to directors and officers were issued at 100% of fair market value on 
the date of issue.  The noncash activities related to the above items were 
$317,000 in 1998. In 1997, the comparable noncash activities for issuance of 
common stock  was $93,000.

     In 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 represents 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. Through March 31, 1998, 120,738 shares of 
common stock have been repurchased under the February 17,1997, repurchase 
program. No common stock was purchased during the first three months of 1998.

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 northwest 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 and included in the Telephone Sector. 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.

     On July 15, 1997, the Registrant sold its exclusive DirecTV distribution 
rights in seven counties in southern Minnesota, along with related assets, to 
Golden Sky Systems, Inc. The Registrant recorded a pre-tax gain on the sale 
of the assets of $6,345,000.  The sale was reported on Form 8-K dated July 
15, 1997.

     On October 30, 1997, the Registrant acquired the assets of Datacomm 
Products (Datacomm). Datacomm is a data networking business based in Brooklyn 
Park, Minnesota with a customer base spanning the Midwest. The operations of 
the acquisition are reported as a division of Collins Communications Systems 
Co. and included in the Communications Products and Services Sector. The 
purchase price of $2,573,000 is scheduled to be paid over three years with 
$1,600,000 paid in 1997. A final contingent payment is possible on November 
1, 2000. This acquisition was reported on Form 8-K dated November 17, 1997.





                                         -6-

<PAGE>

     On December 18, 1997, Registrant announced that it had entered into an 
agreement to purchase the stock of Frontier Corporation's Minnesota RSA 10 
cellular property in a cash transaction. The property, marketed as 
CellularOne, comprises seven counties of southern Minnesota serving a 
population of 230,000. The acquisition was completed on May 1,1998 and will 
be accounted for under the purchase method of accounting. The Registrant 
utilized new long-term debt instruments to fund the majority of the 
$40,000,000 acquisition price.

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, 1997 
Form 10-K.

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

     Consolidated net income for the quarter ended March 31, 1998, was 11.8% 
higher than the same period in 1997, as illustrated by the following table. 
This increase is due primarily to the benefits of new telephone property 
acquired in April 1997.

<TABLE>
<CAPTION>

     NET INCOME (thousands)                       1998           1997
                                                  ----           ----
     <S>                                        <C>            <C>
     1st Quarter                                $3,042         $2,722
</TABLE>

     Operating Revenues were 18.2% higher for the quarter ended March 31, 
1998, than for the quarter ended March 31, 1997, as illustrated by the 
following table. Again, the primary reason for this increase was the new 
telephone property acquired in April 1997.

<TABLE>
<CAPTION>

     OPERATING REVENUES (thousands)               1998           1997 
                                                  ----           ----
     <S>                                       <C>            <C>
     1st Quarter                               $20,678        $17,490
</TABLE>

A.   Material changes in results of operations:

Operating Revenues and Net Profits described in the following discussions are 
shown prior to intercompany eliminations.

     1. TELEPHONE - Operating Revenues for the first quarter of 1998 
increased $2,654,000 or 29.4% compared with the same period in 1997. The 
primary contributors to the revenue growth include the April 1997 addition of 
Heartland Telecommunications Company of Iowa, new fiber optic cable networks 
providing additional toll transport revenue, access line growth and minutes 
of use growth. Without the April 1997 addition of Heartland 
Telecommunications Company of Iowa, Operating Revenues would have increased 
$100,000 or 1.1% for the first quarter of 1998 compared to the same period in 
1997. Net profits from this line of business follow a similar pattern with a 
first quarter of 1998 increase of 31.6% as compared to the same period of 
1997 and 8.4% increase without the impact of Heartland Telecommunications 
Company of Iowa for the same three month period. Profits have grown to a 
greater degree than revenues since the majority in revenue growth in 1998 was 
from high margin business (i.e. toll transport revenue).


                                         -7-


<PAGE>

     2. BILLING/DATA SERVICES - Operating Revenues for the first quarter of
1998 decreased $146,000 or 6.3% compared with the same period in 1997. This
decline was due to less contract programming services 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 an increase in profitability for this sector. The net
profit for the first quarter of 1998 increased $44,000 or 12.4% as compared with
the same period in 1997.

     3. COMMUNICATIONS PRODUCTS AND SERVICES - This Sector has $4,966,000 in 
revenues from Collins in 1998 (72.5% of Sector total), $1,709,000 from DTI 
(24.9% of Sector total) and $175,000 from Crystal (2.6% of Sector total). 
Operating Revenues for this sector for the first quarter of 1998 increased 
$680,000 or 11.0% compared with the same period in 1997. The primary 
contributors to the revenue growth include the addition of Datacomm Products 
to Collins and the January 1998 addition of Crystal's new resale long 
distance service. Without the addition of Datacomm and Crystal, Operating 
Revenues would have decreased $509,000 or 8.2% for the first quarter of 1998 
compared to the same period in 1997. This decrease is due primarily to 
lagging sales in the Collin's equipment sales division.  DTI's Operating 
Revenues as well as net profits for the first three months of 1998 were 
comparable to the same period in 1997. 

     Net profits from this sector for the first quarter of 1998 decreased 
65.0% as compared to the same period of 1997. Without the impact of the 
start-up subsidiary, Crystal, and Datacomm Products, the sector reflected a 
decrease in net profits of 3.6% for the same three month period.   

     4. COST OF SALES - Consolidated Cost of Sales increased $817,000 or 18.9% 
for the quarter ended March 31, 1998, compared with the same period in 1997 
due to volume and to lower profit margins. Through the first three months of 
1998, Operating Revenues for Registrant's subsidiaries' DTI and Collins of 
the Communications Products and Services sector, which generated most of the 
Cost of Sales, increased $505,000 or 8.2% compared with Operating Revenues 
during the three months ended March 31, 1997. In terms of percentage of 
Operating Revenues from these two subsidiaries, Cost of Sales was 64.3% for 
the three months ended March 31, 1998, compared to 62.7% for the same period 
in 1997. The lower profit margins are viewed as temporary and the Registrant 
is still projecting profit margins similar to prior periods. 

     5. OPERATING EXPENSES - Operating Expenses for the quarter ended March 
31, 1998, increased $665,000 or 9.2% compared with the same period in 1997. 
Without the addition of Heartland, Datacomm and Crystal, Operating Expenses 
would have decreased $545,000 or 7.6%. This decrease is a result of various 
cost control measures implemented corporate-wide over the last two years. As 
employee staffing position vacancies are filled, the operating expense 
advantage may decline or reverse in the future quarters of 1998.

     6. DEPRECIATION - Depreciation expense for the quarter ended March 31, 
1998 was $435,000 or 30.6% higher than for the same period in 1997. The 
increase is due to the new operations of Heartland Telecommunications Company 
of Iowa that incurred $442,000 in Depreciation expense for the quarter ended 
March 31, 1998. 

     7. INTEREST EXPENSE - Interest Expense increased $716,000 for the quarter 
ended March 31, 1998, compared to the same period last year.  The increase in 
Interest Expense was due to the new $40,000,000 in senior indebtedness 
initiated in April 1997. The proceeds of the debt were for the Heartland 
Telecommunications Company of Iowa acquisition and for working capital uses.


                                         -8-

<PAGE>

B.   Material changes in financial condition: 

     1. CASH FLOWS - Cash and Cash Equivalents increased $2,414,000 for the 
three months ended March 31, 1998, compared with a decrease of $2,476,000 for 
the same period in 1997. The primary source of cash in 1998 was from internal 
operations.  The primary uses of cash in the first three months of 1998 were 
the Additions to Property, Plant and Equipment of $1,087,000 and Dividends 
Paid of $1,499,000. In quarter ended March 31, 1997, Additions to Property, 
Plant and Equipment were $1,452,000 and Dividends Paid equaled $1,420,000. 
The net change in cash flows from a decrease of $2,476,000 during the first 
three months of 1997 to an increase of $2,414,000 in 1998 is mainly due to 
$3,699,000 of common stock retired under the Registrant's Stock Repurchase 
Plan during the first three months of 1997 as compared to no common stock 
repurchased in 1998.

     2. WORKING CAPITAL - Current Assets exceeded Current Liabilities by 
$10,780,000 as of March 31, 1998, compared to a working capital surplus of 
$8,265,000 as of December 31, 1997.  The primary source of working capital 
was internal operations.  The ratio of current assets to current liabilities 
was 1.9:1.0 as of March 31, 1998.

     3. USES OF WORKING CAPITAL - The largest use of internal capital during 
the quarter ended March 31, 1998 was the common stock dividends paid by the 
Registrant.  Dividends paid used $1,499,000 of capital during the quarter. 
Additions to Property, Plant and Equipment, excluding acquisitions, have 
historically been the Registrant's largest investing activity, using 
$20,900,000 for the two years ended December 31, 1997.  During the first 
three months of 1998, $1,087,000 of working capital was used to purchase 
fixed assets and as usual, the first quarter is one of the lower capital 
expenditure periods in the Registrant's business cycle.

     4. LONG-TERM DEBT - The Registrant's Long-Term Debt as of March 31,1998, 
was $41,531,000.

     In April 1997, the Registrant obtained $40,000,000 senior unsecured 
notes with 15 year maturities to fund the $35,271,000 acquisition of the US 
West telephone exchanges in Iowa.  The notes accrue interest at 7.11%.  No 
principal payments are due during the first four years. Provisions of the 
notes contain covenants relating to liens, consolidated net worth and cash 
flow coverage. The Registrant is in compliance with all financial debt 
covenants.

     In October 1997, the Registrant acquired the assets of Datacomm 
Products. The terms of the purchase agreement require the Registrant to make 
annual payments in 1998 and 1999 on an unsecured note. On March 31, 1998, 
$473,000 is included in Long-Term Debt.

     As of March 31, 1998, the Registrant has $1,058,000 of outstanding debt 
remaining with the Rural Utilities Service and the Rural Telephone Bank for 
the financing of telephone property, plant and equipment of 
Mid-Communications, Inc.

     In July, 1997, the Registrant obtained a $10,000,000 unsecured line of 
credit arrangement.  This line of credit will be used for general corporate 
purposes including interim financing for acquisitions.  The line of credit 
provides for borrowing at a variable annual rate of LIBOR plus 1.5%. There 
are no material compensating balance or commitment fee requirements under 
this arrangement. On March 31, 1998, the Registrant had no advances against 
this line of credit.


                                         -9-

<PAGE>

     5. 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 several 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.  The May 1998 cellular property acquisition from Frontier 
Corporation will utilize a portion of a new $45,000,000 senior unsecured 
revolving credit facility which was implemented on April 30, 1998. 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 management 
believes through its strong relationship with its financial capital sources, 
that no funding difficulty will 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 any future stock repurchases. 

     6. ACCOUNTING PRONOUNCEMENTS In 1997, the Financial Accounting Standards 
Board (FASB) issued Financial Accounting Standards No. 130, "Reporting 
Comprehensive Income" (FAS 130). FAS 130 establishes standards for reporting 
and display of comprehensive income and its components in the financial 
statements. FAS 130 is effective for fiscal years beginning after December 
15, 1997. Reclassification of financial statements for earlier periods 
provided for comparative purposes is required. The adoption of this standard 
had no impact on the Registrant's results of operations, financial position 
or cash flows. 

     In 1997, the FASB issued Financial Accounting Standards No. 131, 
"Disclosures about Segments of an Enterprise and Related Information" (FAS 
131). FAS 131 establishes standards for the way that public business 
enterprises report information about operating segments in annual financial 
statements and requires that those enterprises report selected information 
about operating segments in interim financial reports issued to shareholders. 
It also establishes standards for related disclosures about products and 
services, geographic areas and major customers. FAS 131 is effective for 
financial statements for fiscal years beginning after December 15, 1997. 
Adoption of FAS 131 is not required on interim financial statements in 1998. 
The Registrant is currently evaluating the requirements of FAS 131, and upon 
adoption, disclosure changes may be made.

     7. YEAR 2000 COMPLIANCE The Year 2000 Compliance issue concerns the 
inability of computerized information systems to properly recognize and 
process date-sensitive information as the year 2000 approaches.  The 
Registrant has taken actions to understand the nature and extent of the work 
required to make its systems, products and infrastructure, in those 
situations in which the Registrant is required to do so, Year 2000 compliant. 
 The Registrant continues to evaluate the estimated costs associated with 
these efforts based on actual experience.  The most vital facets of the 
Registrant's data processing are the telephone network (central office 
switching), the backbone customer record system of the telephone operation 
and the basic software platforms of the Billing/Data Services Sector.  The 
Registrant believes, based on available information, that the costs of 
measuring and achieving Year 2000 compliance will not have a materially 
adverse effect on its results of operations, financial position or cash flows.


                                        -10-


<PAGE>

     8. FORWARD-LOOKING STATEMENTS This Management's Discussion and Analysis 
of Results of Operations and Financial Condition, and other sections of this 
Form 10-Q filing contain forward-looking statements that are based on current 
expectations, estimates and projections about the industry in which the 
Registrant operates, management's beliefs, and assumptions made by Registrant 
management. Words such as "expects", "anticipates", "intends", "plans", 
"believes", "seeks", "estimates", variations of such words and similar 
expressions are intended to identify such forward-looking statements. These 
statements are not guarantees of future performance and involve certain 
risks, uncertainties and probabilities which are difficult to predict. 
Therefore, actual outcomes and results may differ materially from what is 
expressed or forecasted in such forward-looking statements, whether as a 
result of new information, future events or otherwise.


                             PART II. OTHER INFORMATION

Item 1.LEGAL PROCEEDINGS.
     From time to time, the Registrant or a subsidiary of the Registrant is
involved in litigation incidental to its business, including administrative
hearings of state public utility commissions, actions relating to employee
claims and miscellaneous routine lawsuits. Based on the information currently
available, the Registrant believes that none of such current proceedings,
individually or in the aggregate, will have a material adverse effect on their
financial positions, results of operations or cash flows.

Item 2.CHANGES IN SECURITIES.
     None.

Item 3.DEFAULT UPON SENIOR SECURITIES.
     None.

Item 4.SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
     None.

Item 5.OTHER INFORMATION.
     None.

Item 6.EXHIBITS AND REPORTS OF FORM 8-K.

On March 11, 1998, the Registrant filed a Form 8-K. Item 4 (Changes in 
Registrant's Certifying Accountant) was reported on the Form 8-K. The Form 
8-K reported that on March 5, 1998, the Company notified Olsen, Thielen & 
Co., Ltd. of their dismissal as the Company's certifying accountants 
effective April 13, 1998. There were no disagreements with the accountants 
nor reportable events (as described in Regulation S-K Item 304 (a)(1)(v)). 
The Company had provided a copy of the disclosure to the accountants and was 
furnished with a letter addressed to the Securities and Exchange Commission 
stating their agreement with the statements concerning their firm in the Form 
8-K disclosure.

On April 14, 1998, the Registrant filed a Form 8-K. Item 4 (Changes in 
Registrant's Certifying Accountant) was reported on the Form 8-K. The Form 
8-K reported that on April 13,1998, the shareowners of the Registrant 
confirmed the Board of Directors' selection of Coopers & Lybrand L.L.P. as 
the Registrant's auditors for 1998.



                                        -11-

<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:    MAY 13, 1998         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






                                        -12-