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Fairpoint Telephone Rate Reduction Delayed – But Customers Will Get Retroactive Credit

August 26, 2008

As a result of delays associated with transferring FairPoint’s billing and operational systems from Verizon’s old systems, FairPoint was unable to comply with our agreement to reduce basic telephone rates as of August 1, 2008. Currently, we expect the rate reduction to occur beginning December, 2008, at which time, customers will receive a bill credit representing the agreed upon rate reduction retroactive to August 1. The Public Utilities Commission approved this unfortunate, but necessary delay. We expect that most customers with premium basic service will see a rate reduction of approximately $4.60 per month.