CT Communications Announces Third Quarter Results.

CONCORD, N.C.--(BUSINESS WIRE)--Dec. 18, 1998--During the third quarter of 1998, CT Communications, Inc., (CTC)(OTC BB: CNOTB) continued to show strong growth in its core telephone business and received increased contributions from new competitive services such as Internet, digital wireless, and competitive local service. CTC Wireless, CTC's digital wireless subsidiary, signed up its 5,000th customer in August. Internet continued its explosive growth; as of September 30, the company had over 10,000 dial-up Internet accounts.

For the third quarter of 1998, CTC's operating revenues were $23.8 million, an increase of 17.6% over the same period of 1997, while operating income grew 21.2% to $5.5 million. Net income was $3.2 million versus $3.0 million for 1997, an increase of 6.5%. As a result, basic earnings per common share for the third quarter increased from $1.33 in 1997 to $1.40 in 1998. Concord Telephone Company's number of access lines increased 6.7% to 107,918 through September 30, 1998, versus the 1997 third quarter total of 101,163.

Year-to-date revenue, through September 30, 1998, was $67 million, up from $58 million for the same period in 1997. Net income year-to-date before extraordinary items was $9.5 million, up from $8.7 million for the same period last year. Earnings per share before extraordinary items rose to $4.20 versus last year's total of $3.88 for the same period, an increase of 8.2%.

CTC's competitive local telephone subsidiary, CTC Exchange Services (CTCES), began commercially offering service in April 1998. CTCES's objective is to sell local telephone service and the complete line of products and services offered by CTC to small- and medium-sized businesses in areas adjacent to the company's traditional telephone service area, such as Salisbury. Says Michael R. Coltrane, President and CEO, "I am pleased to say that as of September 30, CTCES had acquired approximately 1,800 access lines. Our new customers range from local government offices and private colleges to professional services firms and manufacturing companies."

In late September, CTC implemented a new billing and customer care system referred to as the Integrated Customer Management System, or ICMS, developed by IBM. This was the first installation of this system in North America. ICMS will allow CTC to better manage customer information and offers more flexibility for bundling together various products and services, as well as offering specific discounts and promotions to customers.

Due to the anticipated increase in share transaction volume, effective January 1, 1999, First Union National Bank (FUNB) will serve as Transfer Agent and Registrar for the preferred and common stock of CT Communications.

Says Coltrane, "Currently, we are enjoying the satisfaction, and oftentimes accompanying challenge and difficulty, of being proactive in this intensely competitive industry, notably through the launch of our new competitive local telephone subsidiary and through ongoing changes to processes and systems. We are not waiting for change to come to us; we're creating the change ourselves. We believe this strategy will move us forward and set us apart from our competition."

CT Communications, Inc., which is headquartered in Concord, N.C., provides a full array of integrated telecommunications services to both residential and business customers. Offerings include local and long distance, digital wireless phones, paging, Internet, data services, and business phone systems. CTC's largest subsidiary, Concord Telephone Company, is the 22nd largest telephone company in the United States.