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Lexcom to Merge with Windstream Corporation

                                                             For additional information, contact:
                                                                                                Richard Reese: 336. 249.5765

On  September 8, 2009  Lexcom  announced that it had signed a definitive agreement to merge with Windstream Corporation (NYSE:WIN).  Richard Reese, Chairman of the Board and Chief Executive officer of Lexcom, stated, “ The Board of Directors recently approved the sale of the company for $141 million.  This, plus our working capital of approximately $20 million, is expected to net total consideration to Lexcom shareholders of $161 million.  The merger is subject to approval from the shareholders at a special called meeting expected to be in October or November.   Additionally, Windstream must receive approval from federal and state regulators - - FCC and NC Utilities Commission.”

Reese explained, “Throughout the years Lexcom has always provided state of the art services to our customers. The telecommunications industry continues to grow rapidly due to increased technological capabilities and ever-changing habits of users. However, whereby size and scope have become much more important in the industry, the Board of Directors feels that Windstream, especially considering its size and its presence within North Carolina, is positioned to continue providing state-of-the-art services to Lexcom’s customers.”  Lexcom customers should see no change in service and the company will continue to operate as it is under Windstream’s direction.  Windstream already owns 45 local exchanges in North Carolina, including Denton, Old Town, King, Lewisville, Mooresville, and Concord.  Their North Carolina headquarters is located in Matthews and the corporate office is in Little Rock, Arkansas.

“The Board of Directors believes this transaction is in the best interest of our shareholders.“   Reese noted, “Lexcom has been experiencing increasing competitive pressure, particularly through losses of services and landlines converting to wireless, so we think that now is the best time to sell the company.”

Under the terms of the agreement, the holders of the voting shares are to receive a slightly
higher price per share for their shares than the holders of non-voting shares, reflecting historic trading values of Lexcom stock.  Detailed information will be provided to shareholders prior to the shareholder meeting.

ADDITIONAL INFORMATION
Mazer Telecom Advisors and Robinson, Bradshaw & Hinson, P.A. acted as financial and legal advisors to Lexcom on the transaction.  Stephens Inc. and Kutak Rock LLP acted as financial adviser and legal adviser to Windstream.

ABOUT  LEXCOM
Lexcom Communications is a provider of integrated telecommunications and video services, as well as services in local and long distance telephone, Internet and data, and digital wireless, to business and residential customers located primarily in Davidson County.

In 1998, the parent company name changed to Lexcom, Inc. and continued the tradition of
service and technological advancement as it became the parent company to its subsidiaries:
Lexcom Telephone, Lexcom Wireless LLC, Lexcom Cable Services LLC and Lexcom Long Distance LLC.

HISTORY OF LEXCOM
Lexcom began its long history of service in 1896 as Lexington Telephone.  The original founders were Jonathan D. Grimes, George W. Montcastle, W.G. Penry, M.H. Pinnix, C.M. Thompson and J.M. Riley.  In 1904, Jesse Hayden bought a significant interest in the company.  After a brief stint as manager, he turned the reins over to his cousin, William F. Harris, a visionary who aggressively built the company.  In 1945, he resigned as manager of Lexington Telephone and his son, William C. “Bill” Harris, took over as President and General Manager, then also becoming Chairman of the Board in 1950. 

Bill and his brother, Charles D. Harris, guided the company through even greater growth and revolutionary changes in communication technology for almost 30 years.  In 1989, after 63 years with the company and 44 years at the helm, Bill Harris stepped down.  He died on April 21, 1992 and Charles Harris died on October 1, 2003.

In 1981, Richard Reese moved to Lexington Telephone Company.  He was named General
Manager in 1988, then was later elected President and Chairman of the Board.  In 1954, Reese  Began his telephone career at Hickory Telephone.  After Hickory was acquired by Central Telephone, he was transferred to Elkin to position of Manager  in 1959. 

Reese drew on his 28 years of experience and expertise as he guided Lexcom through unprecedented changes during his leadership.  At the time of Lexcom’s Centennial Celebration in 1996, Lexington Telephone was one of the strongest and most sophisticated independent phone companies in the nation.  With the sale of the company in 2009, Reese will retire after 28 years with Lexcom and 55 years of service to the industry.

ABOUT WINDSTREAM
Windstream Corporation is an S&P 500 company that provides phone, high-speed Internet and high-definition digital TV services to customers in 16 states.  The company also offers a wide range of IP-based voice and data services and advanced phone systems and equipment to businesses and government agencies.  The company has approximately 3 million access lines and about $3.1 billion in annual revenues.  Windstream is ranked 4th in the 2009 Business Week 50 ranking of the best performing U.S. companies.  For more information about Windstream, visit www.windstream.com.

FORWARD LOOKING STATEMENT
This press release contains forward-looking statements, including statements on plans for sale of Lexcom, the anticipated amount of the company's working capital, and the anticipated consideration to be paid to shareholders, and these statements are subject to uncertainties that could cause actual future events and results to differ materially from those expressed in the forward-looking statements. These forward-looking statements are based on estimates, projections, beliefs and assumptions that Lexcom believes are reasonable but are not guarantees of future events and results. Actual future events and results may differ materially from those expressed in these forward-looking statements as a result of a number of important factors.

Additional information for Lexcom Shareholders:  Shares Outstanding, Common Voting shares: 463,938, Class B Common Non-Voting shares: 1,582,397, Total Shares Outstanding: 2,046,335.

Phone Directory

Lexcom Telephone strives to deliver high quality telephone service at the most economical rate possible to our customers. We also continually upgrade and improve our facilities.. We offer a local customer service and payment center for folks who want face to face service as well as convenient, local 24-hour customer care and technical assistance. So should there ever be a service problem, your friends at Lexcom will respond immediately.

If you have a service problem, simply dial 611. For customer service questions or requests, please call 249-9901 (Lexington/Thomasville) or 731-8000 (High Point).