Rural Cellular Corporation Signs Definitive Agreement To Sell 10 MHz Licenses in Southern Oregon.

Business Editors

ALEXANDRIA, Minn.--(BUSINESS WIRE)--June 5, 2001

Rural Cellular Corporation ("RCC") (Nasdaq:RCCC) today announced that its subsidiary, RCC Minnesota, Inc., has signed a definitive agreement with Cellco Partnership LLP, d/b/a Verizon Wireless, to sell Personal Communications Service ("PCS") Licenses covering the southern Oregon Basic Trading Areas ("BTAs") of Medford-Grants Pass, Roseburg, Bend and Klamath Falls. Subject to regulatory approval, the transaction is expected to close in the second half of 2001 with proceeds used to reduce RCC's debt. Financial terms were not disclosed.

Richard P. Ekstrand, president and chief executive officer commented: "This sale together with the sale of the Saco River Telephone Company ILEC assets that we announced in May are examples of our commitment to sell non-strategic assets and reduce our debt leverage."

Daniels & Associates, L.P., a Denver-based media and telecommunications mergers and acquisitions specialist, represented RCC in the sale of the PCS licenses.

RCC, based in Alexandria, Minnesota, provides wireless communication services to Midwest, Northeast, South and Northwest markets located in 14 states.

Statements about RCC's anticipated performance are forward looking and therefore involve certain risks and uncertainties, including but not limited to: competitive considerations, success of customer enrollment initiatives, the ability to increase wireless usage and reduce customer acquisition costs, the successful integration of newly acquired operations with RCC's existing operations, the ability to service debt incurred in connection with expansion, and other factors discussed from time to time in RCC's filings with the Securities and Exchange Commission.