^{Oxford Networks Announces Third Quarter Earnings} Download PDF of Third Quarter earnings report in full detail

Lewiston, Maine — October 24, 2008 — Oxford County Telephone and Telegraph Company (dba Oxford Networks) today reported financial results for the 3-month period ended September 30, 2008. Revenues were $6.2 million, up 9% from $5.6 million during the previous year. Net income was a loss of $156,000, down from the $239,000 income recorded in the same period in 2007. Earnings before interest, taxes, depreciation and amortization (EBITDA) were $1.6 million, a decrease of 15% versus the 2007 third quarter EBITDA of $1.9 million.

The Company also reported financial results for the first nine months of 2008. Revenue was $18.1 million, up 8% from $16.7 million. The Company recorded a Net Loss of $47,000, down from a $589,000 profit in the first nine months of 2007, and year to date EBITDA was $5.0 million, down 10% from $5.5 million.

Revenue growth continues to be fueled by the competitive telephone company and our data transport backbone network which grew a combined 18% during the first nine months of the year. While the traditional telephone company continues to produce strong cash flows, revenues in this segment of our business decreased 1.7% as owners of vacation homes are increasingly using their cellular phones to maintain a voice connection. At the same time however demand for Oxford’s high-speed Internet service remains strong.

Oxford Networks’ President and CEO, Craig Gunderson, explained that during this long planned for period of aggressive new network investments, operating expenses grew significantly. Year to date, operating expenses have increased 15% driven by new markets promotion activity, additional sales and operating personnel, and other operating expenses associated with adding new customers along our recently constructed networks. Additionally, Net Income was negatively impacted by higher interest expenses arising from the previously announced $10 million of additional investment financing. Gunderson stated despite these higher levels of expenses in 2008, the Company remains on track to achieve its longer term financial goals.

Gunderson also stated that to date, business customers in our new markets are responding very positively
to our fiber-to-the-business product offerings. While it is unclear how recent developments in the worldwide credit and equity markets will impact the businesses of our current and future customers, we are emboldened by the fact that our fiber optic product offerings are superior to, and often save mour customers money, versus those offered by our competitors. In these tight economic times, we believe customers will be looking extra hard at ways to save money.

Gunderson went on to explain that as part of our efforts to focus future investments solely on those segments of our business which hold the greatest promise for growth and creation of shareholder value, we are considering a number of possible performance enhancing restructuring steps on non-core businesses and products. We plan on making and implementing these restructuring determinations so as to optimize the performance of our Company in 2009 and beyond.

Oxford Networks is a 108 year-old company that offers a full line of telecommunications services to consumers and businesses in Maine. It has offices in Bangor, Lewiston and Norway.