CenturyTel Completes KMC Metro Fiber Networks Acquisition.

MONROE, La. -- CenturyTel, Inc. (NYSE: CTL) completed the acquisition of fiber networks in 16 markets from KMC Telecom Holdings, Inc. (KMC) for $65 million in cash subject to final purchase price adjustments that are not expected to be material.

With this purchase, CenturyTel adds key markets to its operations in Alabama (Huntsville and Montgomery), Indiana (Fort Wayne), Kansas (Topeka), Louisiana (Baton Rouge), Michigan (Lansing and Ann Arbor), Minnesota (Eden Prairie), Mississippi (Biloxi/Gulfport), Ohio (Akron, Dayton and Toledo), Tennessee (Chattanooga), Texas (Corpus Christi & Longview), and Wisconsin (Madison).

"This acquisition helps expand CenturyTel's competitive local exchange carrier operations and advances our strategic goal of growing and diversifying our revenue streams by becoming a leading fiber transport provider near our existing markets," Glen F. Post, III, CenturyTel chairman and CEO, said. "We look forward to delivering a full array of advanced telecommunications services and an exceptional experience to our new business customers in these cities."

The KMC networks include almost 1,000 lit route miles of metro fiber and more than 100 points of presence (POPs).

The transaction is anticipated to be breakeven, or slightly dilutive including transition costs, to earnings per share for the first 12 months of operation and accretive thereafter. First-year revenues are expected to exceed $50 million.

Included in the S&P 500 Index, CenturyTel (NYSE: CTL) is a leading provider of a full array of communications services primarily to rural areas and small to mid-size cities in 26 states. Visit CenturyTel at www.centurytel.com.