New Ulm Telecom, Inc. Provides Update on Pending Hutchinson Telephone Company Transaction

New Ulm Telecom, Inc. (“New Ulm”) (OTCBB:NULM) today announced several developments in its pending transaction with Hutchinson Telephone Company (“HTC”).

Bill Otis, President and CEO of New Ulm stated that on August 31, 2007, shareholders of HTC approved the merger under which HTC will merge into a subsidiary of New Ulm, with HTC continuing to operate as a wholly owned subsidiary of New Ulm. Shareholder approval by the HTC shareholders was a condition of the merger. The transaction is also subject to customary closing conditions and regulatory approvals.

Mr. Otis also announced that New Ulm and HTC have filed a Joint Petition for approval of the Merger Agreement with the Minnesota Public Utilities Commission and have also made required FCC filings. New Ulm and HTC are also working together to obtain the required other approvals and consents.

New Ulm continues to expect the transaction to close in the fourth quarter of 2007.

On August 3, 2007, New Ulm and HTC entered into a definitive merger agreement under which New Ulm will acquire Hutchinson Telephone Company for approximately $62 million in cash. After giving effect to closing date adjustments for HTC cash and working capital, and transaction expenses, the overall transaction size is approximately $77 million. The acquisition will result in a combined company that provides phone, video and internet services with over 50,000 connections in a number of Minnesota and Iowa communities.

About New Ulm

New Ulm owns and operates incumbent local exchange carriers (ILECs) and a competitive local exchange carrier (CLEC) that together provide, own and operate phone, video and internet services in a number of Minnesota and Iowa communities. New Ulm also sells and services cellular phones and accessories, customer premise equipment and transport operations. New Ulm also holds a 25.18% investment in FiberComm, LC, a CLEC based in Sioux City, Iowa and on November 3, 2006, New Ulm acquired a 33.33% ownership interest in Hector Communications Corporation, which provides phone, video and internet services to a number of communities in Minnesota and Wisconsin.

Forward-Looking Statements

Statements about New Ulm’s future prospects are forward-looking and, therefore, involve certain risks and uncertainties. These and other risk factors are discussed in New Ulm’s Report on Form 10-K for the year ended December 31, 2006 and from time to time in its other filings with the Securities and Exchange Commission. In addition to these factors, forward looking statements in this press release are subject to the ability of New Ulm and HTC to obtain the required regulatory approvals needed for consummation of the merger and the ability of New Ulm to operate the combined company in a profitable manner after the merger.

Contacts

NU-Telecom
Bill Otis, 507-354-4111
E-mail: billotis {at} nu-telcom(.)net