Shenandoah Telecommunications Company Declares Dividend and Reports Third Quarte

Shentel announced financial results for the third quarter of 2007. Netincome for the third quarter increased to $5.1 million, a 50.0% increase from$3.4 million for the same period in 2006. Year-to-date net income was $15.1million, an 81.9% increase from $8.3 million for the same period in 2006,excluding the one-time, net of tax gain of $6.4 million the Telephone Companyrecorded in 2006 related to the liquidation of the company's investment inRural Telephone Bank. Fully diluted earnings per share for the third quarterand the year-to-date 2007 were $0.22 and $0.64, respectively, compared to$0.14 and $0.63 for the same periods last year. Earnings per share for allperiods reflect the three-for-one stock split which occurred on August 2,2007.

Third Quarter Highlights

For the quarter ended September 30, 2007, net income was $5.1 million,compared to $3.4 million in the third quarter of 2006. The Company's totalrevenues for the third quarter of 2007 were $35.4 million, compared to $42.6million for the same quarter in 2006. The decrease in the Company's revenuesis a result of the change in presentation of PCS revenues and expenses toconform to the new terms of the Management Agreement signed with Sprint Nextelin March 2007 retroactive to January 1, 2007. Operating income for thequarter was $8.1 million, an increase of $2.2 million from the third quarterof 2006 primarily as a result of the improved performance of the Company's PCSoperations. Net income for the third quarter of 2007 was $840 thousand lessthan the second quarter of 2007, primarily as a result of having a fullquarter of expenses related to the 13 new Nextel stores transferred to thecompany in May of 2007 (including some one-time costs associated withrebranding), and an increase in the bad debt expense related to the Company'sPCS operation.

PCS Operations

The Company continued to experience strong growth in wireless as a SprintPCS Affiliate of Sprint Nextel, with third quarter net income of $4.1 million,a $1.6 million increase over the third quarter of 2006. Year-to-date netincome was $13.3 million, compared to $6.0 million in 2006. PCS revenuedecreased by $7.8 million, to a total of $21.8 million, compared to the sameperiod last year due to the aforementioned change in presentation effectiveJanuary 2007. PCS operating income was $6.9 million in the third quarter of2007, compared to $4.5 million in the third quarter of 2006. Year-to-dateoperating income was $22.2 million, an increase of $11.0 million or 98.6% overthe same period in 2006.

The Company's Sprint PCS retail wireless customer count at September 30,2007 was 178,077. During the third quarter, net retail customers increased by5,094, a 27.6% decrease in net additions compared to the third quarter of2006. Year-to-date, net retail customers have increased by 24,574, a 32.0%increase in net additions compared to the first nine months of 2006. Grossadditions for the third quarter of 2007 were 17,057, an increase of 15.2%compared to the third quarter of 2006. The Company's third quarter churn was2.3% compared to 1.9% in the third quarter of 2006. The increase in churn isrelated to deactivations for non-payment.

Telephone Operations

Third quarter net income for the local telephone operations was $2.2million, a decrease of $0.1 million or 3.4% from the same quarter last year.The operating income of the local telephone operations for the third quarterof 2007 was $3.2 million, a decrease of $0.3 million or 8.1% from 2006.Telephone had 24,712 voice service subscribers at September 30, 2007, adecrease of 118 from December 31, 2006.

Converged Services

The third quarter net loss for this unit was $1.5 million, an improvementof $0.3 million from the same quarter last year. At September 30, 2007,Converged Services had 25,542 data users, 10,969 video users and 3,775 voiceusers compared to 22,881, 8,539 and 5,741 users, respectively, at September30, 2006. The overall increase in users resulted in an increase in revenuesof 8.1% in the third quarter of 2007 relative to the third quarter of 2006.The third quarter results reflect the effect of initiating service under newcontracts, improved margins and better economies of scale. The Company plansto bring four new Multi-Dwelling Unit complexes, with a total of 863apartments, into service in the fourth quarter.

Other Operations

The Company ended the third quarter with 15,959 Dial-up and BroadbandInternet customers, of which 7,604 access the service through DigitalSubscriber Lines (DSL). This represents a 27.4% increase in DSL customers,but an overall decrease of 722 Internet customers from September 30, 2006.Over 30% of the Company's voice telephone subscriber lines currently use theCompany's DSL service. However, dial-up customers, primarily outside of theCompany's DSL footprint, continue to migrate to other high-speed alternatives.

Other Information

The Company's 2007 third quarter and year-to-date capital expenditures andcommitments were $15.8 million and $25.7 million, respectively, related toadditional PCS base stations and towers, switch upgrades, Converged Services'network upgrades and new apartment complex build outs, fiber projects,technology upgrades and other capital needs. The company had cash and cashequivalents at September 30, 2007 of $23.2 million. The growth in cash of$9.7 million since December 31, 2006 is a result of cash generated fromoperating activities of $31.6 million exceeding funds used for capitalexpenditures and other investment activities of $19.8 million and debtrepayments and other financing activities of $2.1 million. At September 30,2007, the debt/equity ratio was .15; and debt as a percent of total assets was10.4%. As previously announced, the Company completed a three-for-one stocksplit with a record date of August 2, 2007.

About Shenandoah Telecommunications

Shenandoah Telecommunications Company is a holding company that provides abroad range of telecommunications services through its operating subsidiaries.The Company is traded on the NASDAQ National Market under the symbol "SHEN."The Company's operating subsidiaries provide local and long distancetelephone, Internet and data services, cable television, wireless voice anddata services, alarm monitoring, and telecommunications equipment, along withmany other associated solutions in the Mid-Atlantic and Southeastern UnitedStates.

This release contains forward-looking statements that are subject tovarious risks and uncertainties. The Company's actual results could differmaterially from those anticipated in these forward-looking statements as aresult of unforeseen factors. A discussion of factors that may cause actualresults to differ from management's projections, forecasts, estimates andexpectations is available in the Company filings with the SEC. Those factorsmay include changes in general economic conditions, increases in costs,changes in regulation and other competitive factors.

    SHENANDOAH TELECOMMUNICATIONS COMPANY    SUMMARY FINANCIAL INFORMATION (unaudited)    (In thousands, except per share amounts)    Condensed Consolidated Balance Sheets                                                   September 30,  December 31,                                                       2007           2006    Cash and cash equivalents                        $23,202        $13,440    Other current assets                              20,997         17,423    Total securities and investments                   9,960          7,075    Property, plant and equipment                    290,211        274,061      Less accumulated depreciation                  138,535        118,417    Net property, plant and equipment                151,676        155,644    Other assets, net                                 13,933         14,138      Total assets                                  $219,768       $207,720    Current liabilities, exclusive of current     maturities of long-term debt     $4,212 and $4,109, respectively                 $17,616        $17,171    Long-term debt, including current maturities      22,947         26,016    Total other liabilities                           27,726         29,344    Total shareholders' equity                       151,479        135,189      Total liabilities and shareholders' equity    $219,768       $207,720    SHENANDOAH TELECOMMUNICATIONS COMPANY    SUMMARY FINANCIAL INFORMATION    (unaudited)    (In thousands, except per share amounts)    Condensed Consolidated Statements of Income                              Three months ended       Nine months ended                                 September 30,             September 30,                               2007         2006         2007         2006    Revenues                 $35,422      $42,594     $103,571     $123,820    Cost of goods and     services                 12,129       18,253       34,599       52,691    Depreciation and     amortization              7,544        6,613       21,856       20,266    Selling, general and     administrative            7,620       11,801       22,164       36,012    Operating income           8,129        5,927       24,952       14,851    Interest expense             453          599        1,432        1,857    Other income                (733)        (179)      (1,800)     (11,340)    Income tax provision       3,302        2,126       10,195        9,547      Net income before       change in accounting    5,107        3,381       15,125       14,787    Cumulative effect of a     change in accounting,     net of income taxes       ____-        ____-        ____-       ___(77)      Net income              $5,107       $3,381      $15,125      $14,710    Basic net income per share:    Net income before     cumulative effect of a     change in accounting,     net of taxes              $0.22        $0.15        $0.65        $0.64    Cumulative effect of a     change in accounting,     net of income taxes           -            -            -            -    Net income per share,     basic                     $0.22        $0.15        $0.65        $0.64    Diluted net income per share:    Net income before     cumulative effect of     change in accounting,     net of taxes              $0.22        $0.14        $0.64        $0.63    Cumulative effect of a     change in accounting,     net of income taxes        ___-         ___-            -            -    Net income per share,     diluted                   $0.22        $0.14        $0.64        $0.63