Mr. Mike Weaver reports

OTELCO COMPLETES ACQUISITION OF SHOREHAM TELEPHONE

Otelco Inc. has completed its previously announced acquisition of Shoreham Telephone Company Inc. for approximately $4.5-million in cash, plus certain purchase price adjustments.

Shoreham Telephone, a privately owned company located in Shoreham, Vt., has provided telecommunications solutions to residential and business customers for nearly a century. The company offers a complete set of voice, data and Internet services to its customers in middle Vermont. As of Sept. 30, 2011, the company serves approximately 5,019 voice and data lines (or access line equivalents).

"We are excited to add Shoreham and Vermont to our service area in New England," said Mike Weaver, president and chief executive officer of Otelco. "Shoreham has similar roots to Otelco as a rural wireline telecommunications services provider. This year, they have substantially improved their broadband offering with significant capital investment. We expect to expand from Shoreham's base in central Vermont to bring new and creative services through our OTT Communications team to other Vermont businesses. Clearly, this demonstrates our commitment to continue to grow our presence and impact in New England."