CTSI Expands into Syracuse Market; Company Adds Approximately 12,500 Lines in Third Quarter As it Enters Sixth Regional Market.

SYRACUSE, NY--(BUSINESS WIRE)--Oct. 4, 1999--

CTSI, Inc. (CTSI), a business unit of Dallas, PA-based Commonwealth Telephone Enterprises, Inc. (CTE) (Nasdaq: CTCO, CTCOB), today announced its entry into its sixth regional market, Syracuse, New York.

CTSI, a facilities-based competitive local exchange carrier (CLEC) will build and own a digitally switched, fiber-rich state-of-the-art telecommunications network in the Syracuse market. CTSI will offer a value-driven alternative in providing the full array of telecommunications services for all-sized businesses in the communities of Syracuse, North Syracuse, Mattydale, Liverpool, Camillus and Clay, as well as Auburn and Cortland. Additionally, CTSI's established success in providing residential customers a telecommunications choice versus the incumbent provider will be extended into the Syracuse market.

CTSI Adds Approximately 12,500 Access Lines in Third Quarter

Concurrently, CTSI announced that it added approximately 12,500 lines in the 1999 third quarter, reflecting a sequential quarterly growth rate of roughly 21%. Over the past four quarters, CTSI has installed approximately 37,000 access lines, reflecting an annual growth rate of over 100%. CTSI now serves over 73,000 installed lines. In addition to the Syracuse market, CTSI has operations in Wilkes-Barre/Scranton/ Hazleton, PA; Harrisburg, PA; Lancaster/Reading/York, PA; Bucks/Chester/Montgomery counties in southeastern Pennsylvania; and Binghamton, NY.

"CTSI is entering the attractive Syracuse market with great momentum following the record number of lines installed in the just completed third quarter," said Michael I. Gottdenker, president & CEO of CTE (CTSI's parent company). "The roughly 12,500 lines installed in the third quarter reflects the fine-tuned, coordinated execution of our sales, network, provisioning and customer service operations."

Proven Record and Experience Brought to Syracuse Market

CTSI brings to the Syracuse telecommunications market a distinguished level of experience and knowledge, as well as a broad product suite and enhanced customer benefits, including:

-- the experience and knowledge gained from its sister company,

102-year Commonwealth Telephone Company, the nation's ninth

largest independent incumbent local exchange carrier serving

almost 300,000 access lines in the eastern half of Pennsylvania; -- a highly-trained direct sales force offering a responsive,

personal link to the business customer; -- the full-array of telecommunications services including unlimited

flat-rate local calling, all-distance long-distance, vertical

services (e.g. Caller ID, Call Waiting and Voice Mail),

high-speed data, including Jack Flash(TM) high-speed DSL Internet

access services, and Internet access through its epix(TM) Internet

Services affiliate; -- advanced telecommunications applications such as distance

learning, wide-area networking and electronic commerce; -- a new, state-of-the-art, fiber-rich network infrastructure; -- an easy and efficient alternative to multiple telecommunications

vendors by providing the convenience and simplicity of one bill

from CTSI for all telecommunications needs; and

"Our two and one-half years of CLEC experience proves that businesses of all sizes want one company to satisfy all of their telecommunications requirements," said Gottdenker. "Businesses also desire more responsive service than they've been forced to accept. Since CTSI invests heavily in both its own state-of-the-art switching equipment and network infrastructure, we are able to provide a level of customer service to all-sized businesses that is unrivaled."

Advertising Campaign Kicks Off

CTSI is launching a full-scale advertising campaign this week - through local media outlets promoting introductory offers to Syracuse area businesses via direct mail, outdoor, radio and print ads. "We are coming to the business and residential markets with compelling introductory offers that include very attractive incentives for customers who sign up with CTSI in the month of October," said Gottdenker.

Providing a telecommunications alternative is only one of the many benefits that CTSI brings to the Syracuse market. The company's local staff is expected to significantly expand in the areas of sales, operations and administration at its temporary office in the Thruway Office Complex in Liverpool. CTSI will be moving to its permanent location at 2221 Erie Boulevard East in Syracuse on November 1. Several businesses in the region have already chosen CTSI and the company has stepped up its recruiting efforts in the region in response to the early customer demand and enthusiasm. "CTSI's commitment to the Syracuse market is more than an investment in telecommunications facilities, new jobs and growing the local tax base. We will work hard for our customers in New York by providing high quality, dependable and cost-effective telecommunications services," said Gottdenker.

Among CTSI's first business customers in the Syracuse market are Sterling Optical and State Farm Insurance, Cynthia Drake agent. Steve Downing, owner of Sterling Optical in Camillus, commented on his company's decision to select CTSI as its local telephone service provider. "CTSI will provide me with the same, if not better, telecommunications services than I receive now at a much better cost for a longer period of time. The representatives from CTSI were both professional and knowledgeable about which telecommunications services best fit the needs of my business."

Cynthia Drake of State Farm Insurance in Camillus had another motive for choosing CTSI. "The main reason I selected CTSI is that they will provide both my local and long distance service. I will get just one telephone bill each month and only have to make one telephone call if I have any questions. I am also extremely pleased with the personal service I have received from my CTSI representative. The CTSI staffers are there when I need them and can address my concerns, unlike my past experiences with my current provider."

Businesses in CTSI's new Syracuse area service territory that are interested in the company's telecommunications services can call 1-800-GO-4-CTSI (1-800-464-2874) for more information.

About CTSI

CTSI, Inc., a business unit of Dallas, PA-based Commonwealth Telephone Enterprises (CTE), is a competitive local exchange carrier (CLEC) focused on tier-two markets which include Wilkes-Barre/Scranton/Hazleton, PA; Harrisburg, PA; Lancaster/Reading/York, PA; Bucks/Chester/ Montgomery counties in southeastern Pennsylvania; Binghamton, NY; and Syracuse, NY. Since formally commencing operations in 1997, CTSI has installed over 73,000 access lines during its eleven quarters of operation. Through the 1999 second quarter, the company has achieved an annualized quarterly revenue run rate of nearly $37 million.

CTE's other operating segments include: Commonwealth Telephone Company, the nation's ninth largest independent incumbent local exchange carrier (ILEC), which has been operating in various rural Pennsylvania markets since 1897; and epix(TM) Internet Services (www.epix.net), one of the northeast's largest rural ISPs with over 42,600 dial-up Internet access customers. Additionally, CTE operates two other support businesses that provide expertise to its CLEC and ILEC operations. These businesses are Commonwealth Communications, a telecommunications engineering and consulting business, and CLD, a facilities-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.