Citizens Communications Reports Financial Results for the First Quarter of 2001.

Business Editors

STAMFORD, Conn.--(BUSINESS WIRE)--May 8, 2001

Citizens Communications (NYSE:CZN) today reported financial results for the quarter ended March 31, 2001.

Consolidated first-quarter revenue from continuing operations, which includes revenue from the company's telecommunications, electric and gas operations, was $624.3 million, up 39 percent from the first quarter of 2000. The company's incumbent local exchange carrier and competitive local exchange carrier operations (telecommunications and Electric Lightwave operations) accounted for $349.1 million and $282.4 million of first quarter 2001 and 2000 revenue, respectively. The company's gas operations accounted for $220.5 million and $113.1 million of the first quarter 2001 and 2000 revenue, respectively. The company's electric operations accounted for $54.7 million and $53.2 million of the first quarter 2001 and 2000 revenue, respectively.

First quarter 2001 EBITDA (operating income plus depreciation and amortization) from continuing operations totaled $193.6 million, a 44 percent increase over 2000 first quarter EBITDA of $134.7 million.

The current and year-ago quarters include $153.1 million and $95.5 million in EBITDA, respectively, from the company's telecommunications and Electric Lightwave operations. The current and year-ago quarter also include $28.8 million and $24.5 million in EBITDA, respectively, from the company's gas operations and $11.7 million and $14.7 million, respectively, in EBITDA from the company's electric operations.

First quarter consolidated net income was $19.7 million, or .07 cents per share, compared to consolidated net income of $7.3 million, or .03 cents per share for the prior year quarter.

Telecommunications - Incumbent Local Exchange Carrier (ILEC )

Revenue for the first quarter of 2001 from the company's ILEC was $287.3 million, up 27 percent from $226.3 million for the 2000 first quarter. Acquisitions completed in the second half of 2000 of approximately 335,000 access lines accounted for $48.1 million of the increase. The remainder of the increase in 2001 ILEC revenue, $12.9 million, was the result of internal growth.

ILEC EBITDA for the first quarter was $149.0 million, up 46 percent from $102.0 million in the prior year period, resulting in an EBITDA margin of 52 percent. First quarter ILEC EBITDA results included $5.5 million of assimilation expense related to pending acquisitions of telephone access lines. Absent this one-time expense, continuing ILEC EBITDA was $154.5 million, a 46 percent increase over the prior year's corresponding period, for an EBITDA margin of 54 percent for the 2001 first quarter compared to 47 percent in the first quarter of 2000. Acquisitions accounted for ILEC EBITDA of $28.2 million, or 58 percent of the increase.

Electric Lightwave, Inc. (NASDAQ:ELIX) (ELI)

First quarter ELI revenue totaled $62.6 million compared to $56.8 million for the prior year period, a 10 percent improvement.

ELI first quarter EBITDA was $3.3 million, a $10 million improvement over the $6.7 million loss of the year ago first quarter.

ELI received a letter from The Nasdaq Stock Market, Inc., dated April 2, 2001, informing it that ELI's Class A Common Stock failed to maintain a minimum bid price of $5.00 over the prior 30 consecutive trading days which does not meet the minimum listing criteria of Nasdaq for shares listed on the National Market System. If the bid price for ELI's Class A Common Stock is not at least $5.00 for 10 consecutive days prior to July 2, 2001, subject to the filing of an application and its approval, ELI's listing will be transferred to the Nasdaq Small Cap Market. In addition, ELI has the opportunity to appeal any change in status to a Nasdaq Listing Qualifications Panel. ELI intends to explore its options, including an appeal and a transfer to the Nasdaq Small Cap Market, unless the price of its Class A Common Stock has achieved the minimum level. At the close of business on May 8, 2001, the bid price for a share of ELI's Class A Common Stock was $2.70.

About Citizens Communications

Citizens Communications serves 1.4 million access lines in 17 states and is acquiring an additional 1.7 million access lines. Citizens owns 85 percent of Electric Lightwave, Inc. (NASDAQ:ELIX), a facilities-based, integrated communications provider that offers a broad range of services to telecommunications-intensive businesses throughout the United States. More information about Citizens can be found at www.czn.net.

This document contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the statements. These and all forward-looking statements (including oral representations) are only predictions or statements of current plans that are constantly under review by the company. All forward-looking statements may differ from actual results because of, but not limited to, changes in the local and overall economy, changes in market conditions for debt and equity securities, the nature and pace of technological changes, the number and effectiveness of competitors in the company's markets, success in overall strategy, changes in legal or regulatory policy, changes in legislation, the company's ability to identify future markets and successfully expand existing ones, the mix of products and services offered in the company's target markets, the effects of acquisitions and dispositions and the ability to effectively integrate businesses acquired. These important factors should be considered in evaluating any statement contained herein and/or made by the company or on its behalf. The foregoing information should be read in conjunction with the company's filings with the U.S. Securities and Exchange Commission including, but not limited to, reports on Forms 10-K and 10-Q. The company does not intend to update or revise these forward-looking statements to reflect the occurrence of future events or circumstances.

                    Citizens Communications Company
                Financial and Operating Data by Service
                              (unaudited)
                                              For the quarter ended
                                                   March 31,
                                         -----------------------------
(Amounts in thousands -                                           %
   except per-share amounts)                2001       2000     Change
                                         -----------------------------
Income Statement Data (1)
Revenue from continuing operations        $624,281   $448,702      39%
Operating income from continuing
 operations                                 87,883     38,732     127%
Income from discontinued operations,
 net of tax                                  1,108        681      63%
Net income                                  19,723      7,326     169%

EBITDA Data (2)
EBITDA from continuing operations before
 acquisition assimilation expenses        $199,073   $138,687      44%
EBITDA from continuing operations          193,589    134,713      44%
EBITDA from discontinued operations          8,830      7,952      11%
Total Company EBITDA                       202,419    142,665      42%

Per Share Data
Basic net income per share of
 common stock                             $   0.07   $   0.03     133%
EBITDA per share from
 continuing operations                        0.74       0.52      42%
EBITDA per share from
 discontinued operations                      0.03       0.03      --
Total Company EBITDA per share                0.77       0.55      40%
EBITDA per share from
 continuing operations before
  acquisition assimilation expenses           0.76       0.53      43%

Weighted average shares outstanding        263,036    261,427       1%

(1)   Includes our Incumbent Local Exchange Carrier (ILEC), Electric
    Lightwave, Inc. (ELI), (our Competitive Local Exchange Carrier)
    and our natural gas and electric businesses.
      The natural gas and electric businesses are presented in
    continuing operations in the selected income statement data and as
    assets held for sale on our balance sheet.
      We are reporting our water and wastewater businesses as
    discontinued operations.
      Prior year has been restated to conform to current presentation.
    Continuing operations reflect the elimination of intercompany
    transactions (see segment footnote in the SEC Form 10-Q).

(2) EBITDA is Operating income plus depreciation and amortization.