Atlantic Tele-Network, Inc. Reports Lower Earnings for the First Quarter of 2002

Business Wire, April 24, 2002

Business Editors

ST. THOMAS, U.S. Virgin Islands--(BUSINESS WIRE)--April 24, 2002

Atlantic Tele-Network, Inc. (AMEX:ANK), today reported earnings of $2.0 million, or $0.40 per share, for the quarter ended March 31, 2002 as compared to $2.8 million, or $.55 per share, for the quarter ended March 31, 2001. The decrease of 27% was primarily due to the negative overall impact of the FCC's Benchmark Order coming into effect for Guyana on January 1, 2002, as previously disclosed, when the international settlement rate for traffic controlled by the FCC from the U.S. to Guyana decreased from $.85 per minute to $.23 per minute.

While revenue from regular inbound international traffic decreased by $5.5 million, or 53%, in the first quarter of 2002 when compared to first quarter 2001, the decrease was offset by a 74% increase in local exchange revenue and cellular service. Cellular subscribers in Guyana increased from 9800 at March 31, 2001, to 51,244 at March 31, 2002 -- an increase of over 400%. Wireline subscribers increased 11% from 73,283 to 81,386. An increase in local rates granted by the Guyana PUC on February 2002 contributed about $200,000 in additional revenue in March.

Total telephone operating expenses were $10.2 million for the first quarter of 2002, compared with $11.4 million for the corresponding quarter of 2001, a decrease of $1.2 million, or 10%. This decrease was due primarily to reductions in outbound international traffic expense for traffic from Guyana to the U.S., which was also affected by the FCC Benchmark Order.

Cornelius B. Prior, Jr., Chairman of the Board and Chief Executive Officer of Atlantic Tele-Network, Inc. said, "I am pleased with GT&T's efforts to offset the loss caused by the FCC's Benchmark Order by capitalizing on the market's continued demand for cellular service. But I regret that neither the Government nor the PUC of Guyana has acted yet to reasonably compensate us for this revenue loss, notwithstanding our December 1997 rate case filing and subsequent amendments, petitions and hearings on the subject. Negotiations with the Government of Guyana are presently ongoing and first quarter 2002 results have proved our contention of a need for increased local rates; GT&T's annualized return on rate base in the quarter was only 8%, as compared to the 15% guaranteed by our 1990 Government contract."

Atlantic Tele-Network, Inc. is a telecommunications company with headquarters in St. Thomas, U.S. Virgin Islands. Its principal subsidiary, Guyana Telephone and Telegraph Company, Limited, is 80% owned by ATN and is the national telephone service provider in the Cooperative Republic of Guyana for all local, long-distance and international service. ATN owns 100% of Wireless World, LLC, the largest internet service provider in the U.S. Virgin Islands and the only wireless TV provider in the USVI, as well as 100% of Atlantic Tele-Center, Inc., a Web-enabled outsourcing call center in Guyana. ATN also holds a 44% investment in Bermuda Digital Communications Ltd., the non-wireline cellular operator in Bermuda using the name "Cellular One."

This release contains forward-looking statements within the meaning of the federal securities laws. Actual results could differ materially from these statements as a result of many factors, including matters discussed in the Company's Form 10K annual report for the year ended December 31, 2001, which is on file with the Securities and Exchange Commission.

                                                         Schedule A

                      ATLANTIC TELE-NETWORK, INC.
                     Statement of Operations Data
          For the Three Months Ended March 31, 2001 and 2002
                 (In Thousands, Except Per Share Data)

                                                      (Unaudited)
                                                  Three Months Ended
                                                       March 31,
                                                  ------------------
                                                   2002        2001
                                                   ----        ----
Telephone operations:
Revenues:
  Local exchange service revenues               $  6,158    $  3,542
  International long-distance revenues             8,518      14,087
  Other revenues                                     636         743
                                                --------    --------
    Total revenues                                15,312      18,372
                                                --------    --------

Expenses:
  International long-distance expenses             2,668       3,973
  Telephone operating expenses                     6,368       6,094
  General and administrative expenses              1,143       1,303
                                                --------    --------
    Total operating expenses                      10,179      11,370
                                                --------    --------
    Income from telephone operations               5,133       7,002
                                                --------    --------

Other operations:
  Revenues of other operations                     1,085       1,138
  Expenses of other operations                     1,906       1,853
                                                --------    --------
    Loss from other operations                      (821)       (715)
                                                --------    --------

Other income (expense):
  Interest expense                                  (155)       (179)
  Interest income                                    301         557
  Equity in earnings of Bermuda Digital Telecom      350         179
  Other income (expense):                            179          98
                                                --------    --------
    Other income (expense), net:                     675         655
                                                --------    --------

Income before income taxes and minority interest   4,987       6,942
Income taxes                                       2,547       3,548
                                                --------    --------
Income before minority interest                    2,440       3,394
Minority interest                                   (423)       (628)
                                                --------    --------

Net income                                      $  2,017    $  2,766
                                                ========    ========
Net income per share:
  Basic and Diluted                             $   0.40    $   0.55
                                                ========    ========

Weighted average common stock outstanding:
  Basic                                            4,992       4,987
                                                ========    ========
  Diluted                                          5,069       4,994
                                                ========    ========


                                                         Schedule B

                      ATLANTIC TELE-NETWORK, INC.
                               Selected
                     Operations Statistics For the
                   Quarters Ended December 31, 2001
                      and March 31, 2001 and 2002
                (In Thousands, Except Access Line Data)

Guyana Telephone & Telegraph Co., Ltd.

                                      As of      As of       As of
                                     03/31/02   12/31/01    03/31/01
                                     --------   --------    --------
Access lines (fixed)                  81,386     79,913      73,283
                                     ========   ========    ========

Cellular subscribers lines            51,244     39,206       9,800
                                     ========   ========    ========

International Long-Distance Traffic:

                                 For the Three Months Ended
                                     03/31/02   03/31/01
                                     --------   --------

  International Minutes of Traffic:

    Inbound                           19,364     16,868
    Audiotext                            958        677
                                    --------   --------
      Total inbound                   20,322     17,545

    Outbound                           4,484      4,716
                                    --------   --------
      Total                           24,806     22,261

  International Minutes of Traffic Mix:

    Inbound                             78.1%      75.8%
    Audiotext                            3.9%       3.0%
    Outbound                            18.0%      21.2%
                                     --------   --------
      Total                            100.0%     100.0%
                                     ========   ========