Shenandoah Telecommunications Company To Explore Sale Of Shenandoah Personal Communications Company

April 14, 2006 at 12:00 AM EDT
Shenandoah Telecommunications Company To Explore Sale Of Shenandoah Personal Communications CompanyEDINBURG, VA, (April 14, 2006) – Shenandoah Telecommunications Company (Shentel: NASDAQ: SHEN) announced that it is now considering a potential sale of its wireless subsidiary, Shenandoah Personal Communications Company, a Sprint PCS Affiliate of Sprint Nextel Corporation. The Company had earlier reported its ongoing discussions to negotiate a new affiliate agreement with Sprint Nextel, but to date the parties have been unable to reach a mutually acceptable agreement.

As a result, Shentel is now going to consider other alternatives in discussions with Sprint Nextel including the possible sale of Shentel’s PCS operations. Shentel is unable to predict whether it will be able to negotiate a sale or the terms or timeline for such negotiations; nor is it able to predict the ultimate resolution of its discussions with Sprint Nextel concerning its relationship.

Shenandoah Personal Communications Company and Sprint Nextel Corporation have agreed to extend the Forbearance Agreement originally executed by the parties on August 9, 2005 from April 15, 2006 to July 14, 2006. The Agreement sets forth Sprint Nextel's agreement to observe specified limitations on operating Nextel's wireless business in the Shentel personal communication services (PCS) service area and Shentel's agreement not to initiate or seek certain injunctive or equitable relief under certain circumstances during the term of the Agreement.

About Shenandoah Telecommunications

Shenandoah Telecommunications Company is a holding company that provides a broad range of telecommunications services through its operating subsidiaries. The Company is traded on the NASDAQ National Market under the symbol “SHEN.” The Company’s operating subsidiaries provide local and long distance telephone, Internet and data services, cable television, wireless voice and data services, alarm monitoring, and telecommunications equipment, along with many other associated solutions in the Mid-Atlantic and Southeastern United States.

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