CFW Communications Reports Operating Revenues Increase 27% to $21.6 Million for First Quarter 2000 & Strong Customer Growth - Company Financial Information

Cambridge Telcom Report, May 8, 2000

CFW Communications Company (Nasdaq: CFWC) announced first quarter 2000 operating revenues of $21.6 million ($17.0 million for 1st quarter 1999) and net income of $0.05 million, or $0.004 per share ($1.3 million, or $0.102 per share for 1st quarter 1999).

Operating revenues for the first quarter of 2000 increased 27% to $21.6 million ($17.0 million for 1st quarter of 1999). Operating cash flows (operating income before depreciation and amortization) for the first quarter of 2000 were $8.0 million ($7.5 million for 1st quarter of 1999). Operating revenues for the first quarter of 2000 reflect strong revenue and customer growth associated with expansion of our Internet and competitive local telephone (CLEC) services. The increase in operating cash flows reflects the cash flow contributions from Internet acquisitions in the second half of 1999, offset by start-up costs associated with expansion of CLEC services in Virginia and West Virginia.

First quarter of 2000 included our share of equity losses from PCS investees of $1.5 million for Virginia PCS Alliance (VA PCS) and $2.1 million for West Virginia PCS Alliance (WV PCS). The Alliances' gross revenues for the first quarter of 2000 were $4.5 million for VA PCS ($2.4 million in 1st quarter of 1999) and $2.6 million for WV PCS ($0.3 million in 1st quarter of 1999). These reflect strong PCS subscriber growth as net subscriber additions in the first quarter of 2000 were 9,700 (3,900 in 1st quarter of 1999 and 10,200 in 4th quarter of 1999 (the strongest seasonal quarter)), exclusive of additions from CFW's VA RSA6 service area.=20

Highlights of revenue and customer growth:

* Digital PCS subscribers were 54,300 at March 31, 2000, an increase of 35,200 from March 31, 1999 and an increase of 11,000 from December 31, 1999. VA PCS and WV PCS digital PCS subscribers were 37,000 and 17,300, respectively, at March 31, 2000, increases of 5,000 and 6,000, respectively from December 31, 2000. Included in the VA PCS subscribers were 14,300 wholesale digital PCS subscribers in our VA RSA6 service area.

* Internet subscribers were 53,600, with 44,500 subscribers being added over the last twelve months and 12,800 being added since year-end. Additions from year-end included 8,400 from internal growth in existing and new markets and 4,400 from an acquisition.

* Competitive local exchange (CLEC) business lines sold were nearly 9,500, 8,900 of which were in service at March 31, 2000.

Other financial highlights and business activities:

* Growth in telephone access minutes of 12.6% for the first quarter of 2000 over the first quarter of 1999.

* Growth in telephone access lines of 3.1% over the prior year as access lines were 38,300.

* Internet services were further expanded in February 2000 through the purchase of Internet assets from Twin City Internet Access, and its 4,400 Internet subscribers throughout southwest Virginia and portions of North Carolina.

* Sold 141 telecommunications tower sites owned by VA PCS and WV PCS for a combined $44.3 million, the proceeds of which will be used by the Alliances to support operations and network expansion. Sold 10 telecommunications towers owned by the Company for $3.2 million. The gain from the sale of the towers has been deferred for book purposes, and will be recognized over a ten year expected leaseback period.

* Extended our fiber-optic network by 261 route-miles into several West Virginia markets, including Beckley, Bluefield, and Charleston. The fiber route was obtained by exchanging excess fiber capacity with AEP Communications.

* Announced a new contract with AT&T for directory assistance services that allows for the provisioning of regional and national directory assistance information.

"We are pleased with the net additions of 11,000 digital PCS subscribers in the first quarter of 2000," said James S. Quarforth, Chairman and CEO. "Over the last twelve months CFW and the VA and WV PCS Alliances have added nearly 80,000 combined digital PCS, Internet and CLEC subscribers through acquisitions and internal growth and service area expansion."

* Condensed Consolidated Statements of Income
* (In Thousands of Dollars
* except per share amounts)

                                       Quarters Ended
                                          March 31,
                                     2000           1999

Operating Revenues                          $21,576        $17,018
Operating Expenses, before depreciation
 and amortization                            13,597          9,514
Operating Cash Flows                          7,979          7,504
Depreciation & Amortization                   3,706          2,811
Operating Income                              4,273          4,693
Other Income (Expenses)
 Equity loss from PCS investees
   Virginia PCS Alliance                    (1,523)        (1,359)
   West Virginia PCS Alliance               (2,144)          (972)
 Other, principally interest, net             (440)          (159)
                                        166          2,203

Income Taxes (Benefit)                           45            774
                                        121          1,429

Minority Interests                             (73)           (89)
Net Income (Loss)                               $48         $1,340

Net income per share-basic                   $0.004         $0.103
Net income per share-diluted                 $0.004         $0.102

Average shares outstanding - basic       13,067,000     13,022,000
Average shares outstanding - diluted     13,296,000     13,088,000

Financial Highlights                              Quarters Ended
(In Thousands of Dollars)                           March 31,
                                       2000           1999

Summary Operating Data
Operating Revenues
 Wireline                                    $7,969         $7,701
  Telephone                                   2,034          1,202
  Network and CLEC                            3,473            502
  Internet                                      399            397
  Cable                                      13,875          9,802

Wireless

  Cellular & Paging                           2,873          2,570
  Cable                                         640            728
                                      3,513          3,298

  Directory Assistance                        3,332          2,874
  Other                                         856          1,044
                                    $21,576        $17,018

Operating Cash Flows
 Wireline
  Telephone                                  $5,493         $5,399
  Network                                      (69)            312
  Internet                                      102          (264)
  Cable                                         159            170
                                      5,685          5,617

 Wireless
  Cellular and Paging                         1,056          1,041
  Cable                                         139            139
                                      1,195          1,180

Directory Assistance                            760            324
Other                                           339            383
                                     $7,979         $7,504

An analysis of our subscribers and access lines as of March 31,
2000 and = 1999 and December 31, 1999 is as follows:

Subscribers and Access Lines
                           March 31,      March 31,   December 31,

                              2000            1999          1999

LEC Lines                     38,300         37,100        37,900
CLEC Business Lines            8,900            900         5,800
Digital PCS* Subscribers      54,300         19,100        43,300
Analog Cellular Subscribers   16,600         19,800        17,700
Paging Subscribers            15,600         14,500        15,100
Internet Subscribers          53,600          9,100        45,200
Long Distance Subscribers      8,100          6,500         7,300
Cable Subscribers             17,800         19,400        18,000
Total Subscribers and
 Access Lines                213,200        126,400       190,300