Centennial Communications Announces Fiscal Second-Quarter Results; U.S. Wireless Records Highest Net Subscriber Additions in Nearly Three Years

Market Wire, January, 2006

Centennial Communications Corp. (NASDAQ: CYCL) ("Centennial") today reported income from continuing operations of $8.2 million, or $0.08 per diluted share, for the fiscal second quarter of 2006 as compared to income from continuing operations of $18.6 million, or $0.18 per diluted share, in the fiscal second quarter of 2005. The fiscal second quarter of 2005 included an after-tax gain of approximately $0.09 per diluted share related to the Company's sale of spectrum in the Midwest. Consolidated adjusted operating income (AOI)(1) from continuing operations for the fiscal second quarter was $91.2 million, as compared to $89.8 million for the prior-year quarter.

"We continue to pursue a path of long-term leadership in each of our local markets, and are encouraged by the healthiest subscriber growth in nearly three years in our U.S wireless business," said Michael J. Small, Centennial's chief executive officer. "Our commitment to our local market strategy is stronger than it's ever been, with great networks and great local teams remaining critical to our ongoing success."

Centennial reported fiscal second-quarter consolidated revenue from continuing operations of $235.6 million, which included $111.0 million from U.S. wireless and $124.6 million from Caribbean operations. Consolidated revenue from continuing operations grew 10 percent versus the fiscal second quarter of 2005. The Company ended the quarter with 1.34 million total wireless subscribers, which compares to 1.11 million for the year-ago quarter and 1.31 million for the previous quarter ended August 31, 2005. The Company reported 326,400 total access lines and equivalents at the end of the fiscal second quarter.

"We have a proven track record of deleveraging in a highly competitive and rapidly changing market," said Centennial chief financial officer Thomas J. Fitzpatrick. "We'll continue to operate in a disciplined way to generate solid free cash flow as we return to our path of deleveraging."

OTHER HIGHLIGHTS

--  On September 23, 2005, Centennial announced that Carlos T. Blanco was
    named President of Centennial de Puerto Rico.  Blanco will have operational
    responsibility for Centennial's wireless and broadband businesses in Puerto
    Rico, overseeing the customer service, human resources, marketing, network
    engineering and sales teams.

--  On December 21, 2005, Centennial completed its offering of $550
    million in aggregate principal amount of senior notes due 2013.  The senior
    notes were issued in two series consisting of (i) $350 million of floating
    rate notes that bear interest at three-month LIBOR plus 5.75% and mature in
    January 2013 and (ii) $200 million of fixed rate notes that bear interest
    at 10% and mature in January 2013.  Centennial will use the net proceeds
    from the offering, together with a portion of its available cash, to pay a
    special cash dividend to Centennial's common stockholders of $5.52 per
    share, and prepay $39.5 million of term loan borrowings under its senior
    secured credit facility.
    

CENTENNIAL SEGMENT HIGHLIGHTS

U.S. Wireless Operations

--  Revenue was $111.0 million, a 13 percent increase from last year's
    second quarter.  Roaming revenue increased 65 percent from the prior-year
    quarter as a result of increased traffic from strong growth in GSM minutes.
    Due to recent strong performance, Centennial expects growth in roaming
    revenues during fiscal 2006, but anticipates that roaming revenue will
    remain a small percentage of consolidated revenue in future periods.

--  AOI was $40.2 million, a 3 percent year-over-year decrease,
    representing an AOI margin of 36 percent.  AOI growth was pressured during
    the quarter by higher customer acquisition and advertising costs associated
    with a 46 percent increase in customer activations, costs related to
    increased minutes-of-use, increased equipment expense associated with GSM
    handset upgrades and costs related to the continued build out of new
    markets in Grand Rapids and Lansing, MI.

--  U.S. wireless ended the quarter with 614,100 total subscribers
    including 48,200 wholesale subscribers.  This compares to 564,900 for the
    year-ago quarter including 20,000 wholesale subscribers and to 592,600 for
    the previous quarter ended August 31, 2005 including 43,200 wholesale
    subscribers.  At the end of the fiscal second quarter, approximately 56
    percent of U.S. retail wireless subscribers were on GSM calling plans.
    Postpaid retail subscribers increased 12,300 from the fiscal first quarter
    of 2006, as the build-out of contiguous footprint in Grand Rapids and
    Lansing, MI and a robust marketing effort supported renewed subscriber
    growth.

--  Capital expenditures were $16.1 million for the fiscal second quarter
    as U.S. wireless continued to build out its network and distribution
    channels in Grand Rapids and Lansing, MI.
    

Caribbean Wireless Operations

--  Revenue was $92.2 million, an increase of 7 percent from the prior-
    year second quarter, driven primarily by subscriber growth.

--  Average revenue per user (ARPU) was $42, a 22 percent decline from the
    year-ago period, due to the continued impact of prepaid subscriber growth
    in the Dominican Republic.  Postpaid ARPU in Puerto Rico remained above
    $70.

--  AOI totaled $34.2 million, a 1 percent year-over-year increase,
    representing an AOI margin of 37 percent.  AOI was favorably impacted by
    subscriber growth, partially offset by higher phone costs for customer
    retention and higher bad debt expense resulting from increased involuntary
    churn in Puerto Rico.

--  Caribbean wireless ended the quarter with 724,100 subscribers, which
    compares to 543,400 for the prior-year quarter and to 715,000 for the
    previous quarter ended August 31, 2005.  Customer growth benefited from
    prepaid subscriber growth in the Dominican Republic, partially offset by
    weak postpaid subscriber growth due to higher churn in both the Dominican
    Republic and Puerto Rico.  Centennial continues to emphasize prepaid and
    hybrid plans in the Dominican Republic, shifting its marketing effort away
    from postpaid plans.

--  Capital expenditures were $18.7 million for the fiscal second quarter,
    which included investments to complete the replacement and upgrade of the
    Company's wireless network in Puerto Rico.