^{Oxford Networks Announces First Quarter Financial Results and Fiber Builds}


Download PDF of First Quarter earnings report in full detail

Lewiston, Maine – April 28th, 2008
Oxford County Telephone and Telegraph Company (dba Oxford Networks) today reported financial results for the three month period ended March 31, 2008. Net income of ($59,000) or ($.14) per common share was down from $96,000 for the same period in 2007. Revenues were $5.9 million, up 8% from $5.5 million for the previous year. Earnings before interest, taxes, depreciation and amortization (EBITDA) was $1.5 million, a decrease of 9% versus 2007 EBITDA. In addition to having an extra payroll period in 2008 versus 2007, planned increases in marketing and new hires to support new market development increased expenses by 12% depressing EBITDA and Net Income.

Combined, the competitive telephone company, and data transport backbone network grew a healthy 15%. The traditional telephone company continued to produce strong cash flows, however revenues were flat as growth in high-speed Internet and unlimited long distance calling plan sales off-set access line losses. Dial-up internet sales continued to decline, down $29,000 or 18%, as customers migrated to higher speed broadband options.

Oxford Networks has been aggressively expanding its’ fiber networks over the last ten years to transform itself from a regulated telephone company to a full service telecommunications provider. Investments in fiber networks and people are positioning Oxford Networks to become one of the preeminent fiber optic telecommunications and data transport backbone networks in Maine.

TNew fiber builds are currently underway in a number of communities throughout Maine. In
Bangor and Brewer, Oxford Networks is nearing completion of a fiber network to the business
corridors that will pass 1,200 potential business customers. Similarly, builds passing 1,900 businesses through Topsham, Brunswick, Freeport, Yarmouth, Falmouth and Portland are expected to be completed this summer. By year’s end, Oxford will complete additional fiber networks in South
Portland, Scarborough and Waterville.

Most recently, Oxford Networks announced a fiber connection to Boston, Massachusetts. In addition
to fulfilling two large customer contracts, this network will connect Oxford’s backbone network from Bangor to all the communities along our existing fiber network to strategic locations in Boston, MA and Manchester, NH. This will enable Oxford Networks to obtain attractively priced long distance and data services for all our customers in Maine.

Craig Gunderson, Oxford Networks president and CEO, said “It is an exciting time for us. We have
assembled a great team of employees and a fantastic network that are both being received very positively in the market.”