Oxford Networks Announces Fourth Quarter Financial Results

Lewiston, Maine – March 14, 2011 – Oxford County Telephone and Telegraph Company (dba Oxford Networks) today reported financial results for the 3-month period ended December 31, 2010. Revenues were $7.3 million up from $6.7 million in the fourth quarter of 2009. Net Income in the fourth quarter of 2010 was $225,000 up from $47,000 in 2009. Fourth quarter EBITDA of $2.3 million was up 17% from $2.0 million for the same period in 2009.

The Company also reported financial results for full calendar year 2010. Revenues were $28.6 million, up +7% from $26.7 million in the previous year. Net Income from continuing operations was $994,000, up $463,000 from the prior year or +115% as we continued to capitalize on the extensive investments we have made over the last few years in our fiber network and market development efforts to support our expansion in new communities across Maine.

The Net Loss from discontinued operations increased from a loss of ($13,000) in 2009 to a loss of ($61,000) in 2010 as we completed our efforts to exit non strategic lines of business. The combination of continuing operations plus discontinued operations equaled the total company Net Income of $933,000 which was up from a Net Income of $450,000 for the same period in 2009. Earnings per common share were $.79 in 2010, up from $.29 in 2009. Earnings before interest, taxes, depreciation and amortization (EBITDA) were $9.9 million, an increase of 14.9% from 2009 EBITDA of $8.6 million.

Revenues from our competitive operations continue to be the segment of our business driving the growth of the Company. Full year revenues from our competitive telephone company and our fiber based data transport network increased by a combined $2.1 million or 12.2% during 2010. Our fiber optic network now provides advanced communication services to businesses in twenty-two Maine communities with data transport services between Bangor, southern Maine, southern New Hampshire, and Boston, Massachusetts.

Craig Gunderson, Oxford Networks’ President and CEO, noted that for the fifth year in a row, Oxford Networks was recognized as being one of Maine’s Best Places to Work. The employees of Oxford continue to provide a level of service to our customers that differentiates Oxford and is fueling our revenue growth. Revenues by major operating segment of our business changed as follows:

Oxford Networks is a 111 year-old company that offers a full line of telecommunications services to consumers and businesses in Maine. It has offices in Lewiston, Norway and Bangor.

This press release contains certain forward-looking statements, including, but not limited to, statements regarding expected earnings, revenues, operating income, results of operations, financial performance, and future business operations. Such forward-looking statements reflect management’s current expectations, beliefs, estimates, and projections regarding the company, its industry, and future events, and are based on information currently available to management and certain assumptions made by management. Although the company believes that its expectations are based on reasonable assumptions, these forward-looking statements are not guarantees of future performance and necessarily are subject to risks, uncertainties, and a number of other important factors (many of which are outside the control of the company) which could cause actual results to differ materially from those in the forward-looking statements. Any forward-looking statement speaks only to the date on which the statement is made and the company disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.