Iowa Telecom Announces Acquisition of New Ulm’s Minority Interests in SHAL and En-Tel

Iowa Telecommunications Services, Inc. (NYSE: IWA) announced that it has reached an agreement to acquire New Ulm Telecom Inc.’s ownership interests in En-Tel Communications, LLC, SHAL, LLC, and SHAL Networks, Inc. for $1.7 million, subject to specified customary adjustments. New Ulm Telecom is based in New Ulm, Minnesota.

SHAL owns and leases a 2,500-mile fiber-optic network throughout Minnesota that provides access to low cost, high quality transport facilities. En-Tel Communications is a CLEC based in Willmar, Minnesota, providing local voice, DSL and digital video services to customers in central Minnesota. Upon closing, Iowa Telecom will own all of the outstanding equity in the SHAL entities and substantially all of En-Tel Communications.

This is the fourth acquisition Iowa Telecom has announced in Minnesota over the past 18-months, following Bishop Communications, Sherburne Tele Systems and WH Comm. The sale is expected to close this fall.

About Iowa Telecom

Iowa Telecommunications Services, Inc. (d/b/a Iowa Telecom) is a telecommunications service provider that offers local telephone, long distance, Internet, broadband and network access services to business and residential customers. Today, the Company and its subsidiaries serve over 450 Iowa communities, 10 Minnesota communities and employs approximately 800 people. The Company’s headquarters are in Newton, Iowa. The Company trades on the New York Stock Exchange under the symbol IWA. For further information regarding Iowa Telecom, please go to www.iowatelecom.com and select “Investor Relations.” The Iowa Telecom logo is a registered trademark of Iowa Telecommunications Services, Inc. in the United States.
Contacts

Investor Relations Contact:
Corporate Communications, Inc.
Kevin Inda, 407-566-1180
Kevin.Inda {at} cci-ir(.)com
or
Media Contact:
Iowa Telecommunications Services, Inc.
Julie White, Director, Corporate Communications, 641-787-2040
Julie.White {at} iowatelecom(.)com