^{Oxford Networks Announces Third Quarter Earnings Growth}


Download PDF of Third Quarter earnings report in full detail

Lewiston, Maine – November 16th, 2007
Oxford County Telephone and Telegraph Company (dba Oxford Networks) today
reported financial results for the 3-month period ended September 30, 2007. Net income was
$239,000, up 299% from the same period in 2006. Revenues were $5.6 million, up 5% from $5.4 million for the previous year. Earnings before interest, taxes, depreciation and amortization (EBITDA) were $1.9 million, an increase of 13% over 2006 third quarter EBITDA of $1.7 million.

The company also reported improvements in financial results for the first nine months of 2007. Net income was $589,000, up 185% from $207,000 in the first nine months of 2006. Revenue was $16.67 million, up 7% from $16 million, and EBITDA was $5.5 million, up 11% from $5 million.

According to Craig Gunderson, Oxford Networks’ President and CEO, investments made in building a carrier grade fiber optic network across Maine over the last 5 years have significantly impacted the positive financial results. “Investing in Maine communities and Maine people is what Oxford Networks has
been doing for over 100 years. It makes good business sense, and all of the credit for our positive results goes to our exceptionally talented, customer-focused employees,” said Gunderson.

Revenue growth was most noteworthy in the competitive telephone company sector, growing 18.3% during the first nine months as more businesses have chosen to receive their voice and data communications across Oxford Networks’ fiber-to-the-premise network. Owning this superior network enables customers to receive a suite of scalable services across a single strand of fiber, and enables Oxford Networks’ employees to provide customers with an unparalleled quality of service.

Similarly, revenue growth in the backbone network segment of the business grew a healthy 12.9% as growing demand for data transport services fueled sales to our wholesale carriers and enterprise customers.

As expected, sales in the traditional telephone company were flat, growing 0.3%. Despite the limited growth opportunities from the traditional telephone company, we continue to benefit from its strong cash flows and the scale economies it provides.

Revenues from our dial-up Internet segment followed the decreasing trend falling 26% or $165 thousand as customers continued to migrate to high-speed (DSL) internet services.
During the quarter, the company increased its loan facilities to fund new hires and construction spending for the announced fiber distribution builds in Bangor, Brewer and Waterville as well as a transport build running from Lewiston through Brunswick, Yarmouth and Falmouth to Portland.

Once again, the company was selected as one of the Best Places to Work in Maine. Dawna Hannan, Human Resources Director, said “We are so very proud to be recognized again this year as one of the Best Places to Work in Maine. This recognition belongs to our team of talented and dedicated employees as they are the reason that we have evolved into a truly special team oriented culture.”

Oxford Networks is one of Maine’s leading local communication providers. Founded in Oxford County, Maine in 1900, Oxford Networks serves a territory from Bangor through Portsmouth, New Hampshire with its own high-speed fiber optic network. Oxford Networks also provides the first fiber to the premises technology in Maine, which brings competitive choice to consumers in Local and Long Distance Telephone and High-speed Internet.