Canby Telcom

Mt Angel

Wednesday, October 10, 2007

CANBY TELCOM, MOUNT ANGEL TELEPHONE ANNOUNCE ACQUISITION

CANBY - Canby Telcom and Mt. Angel Telecommunications, Inc. announced today that their Boards of Directors have entered into a definitive agreement for Canby Telcom to acquire Mount Angel Telephone Company.

Officials said the acquisition is expected to be completed shortly after the first of the year. In a joint statement this morning, Keith Galitz, President and General Manager of Canby Telcom, and Thomas C. Bauman, President of Mount Angel Telephone, said the acquisition will make both companies stronger.

"This is a good fit," the executives said. "Mount Angel has a strong heritage in the community where it has served residents for more than 97 years. Canby Telcom also has a long history providing quality services and this acquisition strengthens its customer base and expands its reach beyond Clackamas County."

All employees for both companies will remain with their current operations. When final, Mount Angel Telephone will operate as a subsidiary of Canby Telcom, allowing it to retain its status as a private company while Canby will remain a cooperative.

"For customers, this acquisition will be seamless," according to the joint statement from both executives. "Over time, we believe the new operation will able to provide a range of new services to all of our customers, including the approximately11,000 access lines in Canby and 2,000 in Mount Angel."

The acquisition is subject to approval by the Federal Communications Commission. Galitz and Bauman met in-person with employees to announce the change. Shareholders of Mount Angel voted last night to approve the sale and plans are going forward to transition local government franchise agreements to the new ownership.