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HECTOR COMMUNICATIONS ANNOUNCES SALE OF ROCHESTER CELLULAR INTERESTS AND ISSUANCE OF PREFERRED STOCK

 HECTOR, Minn., Aug. 30 /PRNewswire/ -- Hector Communications Corporation (NASDAQ: HCCO) (HCC) announced today that it has agreed to sell its ownership and management interests in a limited partnership providing cellular telephone service to the Rochester, Minn. metropolitan area. The cellular interests will be sold to Telephone and Data Systems, Inc. (TDS) in exchange for 47,802 shares of TDS common stock. Based on the price of TDS stock on Aug. 27, HCC will receive shares worth approximately $2,250,000. The transaction, which is subject to FCC approval, is expected to close within approximately 75 days.
 Hector Communications also announced today that it has issued 382,587 shares of its non-voting convertible preferred stock to mutual funds affiliated with Gabelli Funds, Inc. and Mario J. Gabelli in exchange for 382,587 shares of HCC common stock held by such entities. The company exchanged its preferred stock for common stock to enable Gabelli Funds and Gabelli to resolve an FCC inquiry regarding the application of FCC cross-ownership rules to securities held by the mutual funds. Apart from lacking voting rights, the preferred stock has rights equivalent to common stock and is convertible into HCC common stock at any time on a one-for-one basis.
 HCC is headquartered in Hector. The company operates five independent telephone companies serving nine rural communities in Minnesota and Wisconsin. HCC also owns and operates cable television systems in Minnesota and Wisconsin and is involved in cellular telephone ventures.
 -0- 8/30/93
 /CONTACT: Steven H. Sjogren, president, Paul N. Hanson, vice president-finance, or Avis J. Johnson, director of Shareholder Relations, 612-848-6611, all of Hector Communications/
 (HCCO)


CO: Hector Communications Corporation; Telephone and Data Systems, Inc. ST: Minnesota IN: TLS SU:

AL-DB -- MN005 -- 7129 08/30/93 13:54 EDT
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Publication:PR Newswire
Date:Aug 30, 1993
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