Rural Cellular Corporation Makes Announcement Regarding Quarterly Preferred Stock Dividends

Business Wire, July 16, 2004

ALEXANDRIA, Minn. -- Rural Cellular Corporation (Nasdaq:RCCC) announced that the quarterly dividends on its 12 1/4% Junior Exchangeable Preferred Stock ("Junior Exchangeable Preferred Stock") will be paid on August 15, 2004, to holders of record on August 1, 2004. The Junior Exchangeable Preferred Stock dividend will be paid in shares of Junior Exchangeable Preferred Stock at a rate of 3.0625 shares per 100 shares. Fractional shares for the Junior Exchangeable Preferred Stock will be paid in cash.

Rural Cellular Corporation further announced that its Board of Directors has determined not to declare the quarterly dividend payable on the 11 3/8% Senior Exchangeable Preferred Stock. This dividend would have been payable in cash on August 15, 2004, to holders of record on August 1, 2004.

Rural Cellular Corporation (Nasdaq:RCCC), based in Alexandria, Minnesota, provides wireless communication services to Midwest, Northeast, South and Northwest markets located in 14 states.