Spreadsheet: 4ded3d4b-2867-44c8-b13d-0d71e9a30d68
Sheet: Page 1

 | WINDSTREAM CORPORATION
 | UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
 | (In millions, except per share amounts)
 |  |  | THREE MONTHS ENDED |  |  |  |  |  |  |  | SIX MONTHS ENDED
 |  |  |  |  |  |  | Increase |  |  |  |  |  |  |  | Increase
 |  |  | June 30, |  | June 30, |  | (Decrease) |  |  |  | June 30, |  | June 30, |  | (Decrease)
 |  |  | 2011 |  | 2010 |  | Amount |  | % |  | 2011 |  | 2010 |  | Amount |  | %
 | UNDER GAAP:
 | Revenues and sales:
 | Service revenues |  | 1002.4 |  | 898 |  | 104.4 |  | 11.62583518930957 |  | 1999 |  | 1726.4 |  | 272.5999999999999 |  | 15.79008341056533
 | Product sales |  | 28 |  | 19.3 |  | 8.7 |  | 45.07772020725388 |  | 54.5 |  | 38.8 |  | 15.7 |  | 40.4639175257732
 | Total revenues and sales |  | 1030.4 |  | 917.3 |  | 113.1000000000001 |  | 12.3296631418293 |  | 2053.5 |  | 1765.2 |  | 288.3 |  | 16.33242692046227
 | Costs and expenses:
 | Cost of services |  | 376 |  | 331.9 |  | 44.10000000000002 |  | 13.28713467912022 |  | 743.5 |  | 627.1 |  | 116.4 |  | 18.56163291341094
 | Cost of products sold |  | 24 |  | 17.9 |  | 6.100000000000001 |  | 34.0782122905028 |  | 44.1 |  | 34.2 |  | 9.899999999999999 |  | 28.94736842105263
 | Selling, general, administrative and other |  | 135.4 |  | 128.3 |  | 7.100000000000023 |  | 5.533904910366346 |  | 274.1 |  | 239.3 |  | 34.80000000000001 |  | 14.54241537818638
 | Depreciation and amortization |  | 197 |  | 167.7 |  | 29.29999999999998 |  | 17.47167561121049 |  | 402.4 |  | 323.1 |  | 79.29999999999995 |  | 24.54348498916742
 | Merger, integration and restructuring |  | 5.199999999999999 |  | 17.3 |  | -12.1 |  | -69.94219653179191 |  | 14.2 |  | 40.5 |  | -26.3 |  | -64.93827160493827
 | Total costs and expenses |  | 737.6 |  | 663.0999999999999 |  | 74.50000000000011 |  | 11.23510782687379 |  | 1478.3 |  | 1264.2 |  | 214.0999999999997 |  | 16.93561145388385
 |  |  | 0 |  |  |  | 0 |  |  |  |  |  |  |  | 0
 | Operating income |  | 292.8 |  | 254.2 |  | 38.59999999999991 |  | 15.18489378442168 |  | 575.2 |  | 500.9999999999998 |  | 74.20000000000027 |  | 14.81037924151703
 |  |  | 0 |  |  |  | 0 |  |  |  |  |  |  |  | 0
 | Other expense, net |  | -3.2 |  | -0.9 |  | -2.3 |  | -255.5555555555556 |  | -0.6 |  | -1.2 |  | 0.6 |  | 50
 | Loss on early extinguishment of debt |  | -2.5 |  | 0 |  | -2.5 |  | -100 |  | -103.9 |  | 0 |  | -103.9 |  | -100
 | Interest expense |  | -136.4 |  | -123.6 |  | -12.79999999999998 |  | -10.35598705501617 |  | -282.9 |  | -246.6 |  | -36.29999999999998 |  | -14.72019464720194
 | Income before income taxes |  | 150.6999999999999 |  | 129.7 |  | 20.99999999999989 |  | 16.19121048573622 |  | 187.8 |  | 253.1999999999998 |  | -65.39999999999975 |  | -25.82938388625585
 | Income taxes |  | 57.49999999999999 |  | 50.7 |  | 6.79999999999999 |  | 13.41222879684416 |  | 71.1 |  | 100.1 |  | -29 |  | -28.97102897102897
 |  |  | 0
 | Net income |  | 93.19999999999993 |  | 79.00000000000004 |  | 14.19999999999989 |  | 17.97468354430364 |  | 116.7 |  | 153.0999999999998 |  | -36.39999999999975 |  | -23.77531025473533
 | Weighted average common shares |  | 506.3 |  | 462.1 |  | 44.19999999999999 |  | 9.565029214455741 |  | 504.5 |  | 453.4 |  | 51.10000000000002 |  | 11.27040141155713
 | Common stock outstanding |  | 510 |  | 483.2 |  | 26.80000000000001 |  | 5.546357615894042
 | Basic and diluted earnings per share:
 | Net income |  | 0.18 |  | 0.17 |  | 0.009999999999999981 |  | 5.882352941176459 |  | 0.23 |  | 0.33 |  | -0.1 |  | -30.3030303030303
 | PRO FORMA RESULTS OF OPERATIONS (A):
 | Revenues and sales |  | 1030.4 |  | 1029.1 |  | 1.300000000000182 |  | 0.1263239724030883 |  | 2053.5 |  | 2070.7 |  | -17.19999999999982 |  | -0.8306369826628589
 | OIBDA (B) |  | 494.9 |  | 488.9 |  | 5.999999999999943 |  | 0 |  | 991.6 |  | 985.6999999999997 |  | 5.900000000000318 |  | 0
 | Adjusted OIBDA (C) |  | 512.7 |  | 509.6000000000001 |  | 3.099999999999966 |  | 0.6083202511773873 |  | 1025.1 |  | 1027 |  | -1.899999999999409 |  | -0.1850048685491149
(A) | Pro forma results adjusts results of operations under GAAP to include the acquisitions of NuVox Inc. ("NuVox"), Iowa Telecommunications Services, Inc. ("Iowa Telecom"), Hosted Solutions Acquisition, LLC ("Hosted Solutions") and Q-Comm Corporation ("Q-Comm"), and to exclude all merger and integration costs related to strategic transactions.  Q-Comm results of operations only include those entities acquired from Q-Comm.  For further details on these adjustments, see the Notes to Unaudited Reconciliation of Revenues and Sales, Operating Income and Capital Expenditures Under GAAP to Pro Forma Revenues and Sales, Pro Forma Adjusted OIBDA and Pro Forma Capital Expenditures.
(B) | OIBDA is operating income before depreciation and amortization.
(C) | Adjusted OIBDA adjusts OIBDA for the impact of restructuring charges, pension expense and stock-based compensation.  For further details on these adjustments, see the Notes to Unaudited Reconciliation of Revenues and Sales, Operating Income and Capital Expenditures Under GAAP to Pro Forma Revenues and Sales, Pro Forma Adjusted OIBDA and Pro Forma Capital Expenditures.