CTE Raises 2001 Earnings Per Share Guidance.

Business Editors

DALLAS, Pa.--(BUSINESS WIRE)--Oct. 31, 2001

Michael J. Mahoney, president and CEO of Commonwealth Telephone Enterprises, Inc. ("CTE") (NASDAQ: CTCO, CTCOB), will announce in a conference call this morning that CTE is raising its full year fully diluted earnings per share ("EPS") guidance based on improved EBITDA expectations at both its Commonwealth Telephone Company ("CT") RLEC (rural local exchange carrier) operation and its "edge-out" CLEC (competitive local exchange carrier) operation, CTSI, LLC ("CTSI"), as well as reduced taxes resulting from the 2000 third quarter implementation of certain tax strategies, and a positive settlement in connection with CTE's 2000 fourth quarter restructuring charge.

Michael J. Mahoney, CTE president and CEO, will host a conference call and simultaneous webcast at 11:00 a.m. (EST) this morning. Mr. Mahoney will review CTE's 2001 third quarter results and provide updated 2001 full year guidance. The call is expected to last approximately 30 minutes. To access today's conference call, please call 1-800-521-5431. The conference call passcode is 1279796. The simultaneous webcast can be accessed via the Internet at www.ct-enterprises.com or www.nasdaq.com. The conference call will be archived and available for replay for 48 hours following the call. To access the replay, please call 1-800-625-5288, passcode 1279796. The webcast will also be available for replay for 48 hours at www.ct-enterprises.com and www.nasdaq.com.

The table below sets forth CTE's previously communicated 2001 full year guidance versus the revised guidance, which Mr. Mahoney will discuss on this morning's conference call and webcast:

                              Previously Communicated      Revised
                                  Full Year 2001        Full Year 2001
                Item                Guidance               Guidance

CT        Access Line Growth           5%-5.5%            Unchanged
          Revenues               $186M - $188M            Unchanged
          Revenue Growth Rate          2% - 3%            Unchanged
          EBITDA                 $117M - $119M        $118M - $120M
          EBITDA Margin              61% - 63%            63% - 65%
          CAPEX                    $30M - $35M            Unchanged

CTSI      Net Access Lines
          Installed-4Q01         2,500 - 3,500            Unchanged

("Edge-Out Markets Only)
          Net Access Lines
          Installed-FY01       12,000 - 14,000      13,500 - 14,500
          Revenue Growth
          Rate                       25% - 30%            30% - 35%
          EBITDA                   $13M - $15M          $15M - $17M
          EBITDA Margin              20% - 25%            23% - 25%
          CAPEX                    $20M - $25M            Unchanged

DSL       Net DSL Subscribers    7,000 - 9,000            Unchanged
          EBITDA Loss                $2M - $3M            Unchanged

Consolidated CTE
          Reported Revenue
          Growth                       3% - 4%              4% - 5%
          Pro Forma Revenue
          Growth(a)                    6% - 7%              7% - 8%
          Reported EBITDA        $125M - $130M        $130M - $135M
          Pro Forma EBITDA(a)    $130M - $135M        $133M - $138M
          Effective Tax Rate         42% - 45%            33% - 35%
          Reported Diluted
          EPS-4Q01               $0.32 - $0.34        $0.44 - $0.46
          Reported Diluted
          EPS-FY01               $1.29 - $1.33        $1.86 - $1.88
          CAPEX                    $70M - $75M            Unchanged
          Year-End Total Debt    $250M - $260M        $240M - $250M

      (a) Excludes the impact of CTSI's Expansion Markets.

About CTE

Headquartered in Dallas, PA, Commonwealth Telephone Enterprises, Inc., serves a growing base of business and residential customers with the full array of state-of-the-art data and voice telecommunications products and services, including broadband data services and high-speed Internet access, delivered over its 100% digitally-switched, fiber-rich network.

CTE's primary operating segments are: Commonwealth Telephone Company ("CT"), the nation's eighth largest publicly held independent incumbent local exchange carrier ("ILEC"), which has been operating in various rural Pennsylvania markets since 1897; and, CTSI, LLC ("CTSI"), a local exchange carrier operating outside CT's territory that commenced operations in 1997. CTE's support businesses include epix(R) Internet Services (www.epix.net), one of the northeast's largest rural ISPs with over 47,000 dial-up Internet access subscribers; and, Jack Flash(R), a broadband data service that uses DSL technology to offer high-speed Internet access and digital connectivity solutions. Additionally, CTE operates two other support businesses that provide expertise to its CT and CTSI operations. These businesses are Commonwealth Communications, a provider of telecommunications equipment and facilities management services; and, CLD, a switch-based long-distance reseller.

A web site featuring current information regarding Commonwealth Telephone Enterprises, Inc. can be found on the Internet at www.ct-enterprises.com.

Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release is forward-looking. Such forward-looking information involves important risks and uncertainties that could significantly affect expected results in the future and cause them to be different from those expressed in any forward-looking statements made by, or on behalf of, the Company. These risks and uncertainties include, but are not limited to, uncertainties related to the Company's ability to further penetrate its markets and the related costs of that effort, economic conditions, acquisitions and divestitures, government and regulatory policies, the pricing and availability of equipment, materials and inventories, technological developments and changes in the competitive environment in which the Company operates.