1120462--3/5/2007--IOWA_TELECOMMUNICATIONS_SERVICES

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Risk Related to Our Capital Structure and Ownership Our dividend policy may limit our ability to pursue growth opportunities. You may not receive any dividends. We have substantial indebtedness and may incur additional indebtedness in the future, which could restrict our ability to pay dividends. We are subject to restrictive debt covenants and other requirements related to our outstanding debt that limit our business flexibility by imposing operating and financial restrictions on us. We may not be able to refinance our credit facilities at maturity on favorable terms or at all. We will require a significant amount of cash, which may not be available to us, to service our debt, pay dividends and fund our other liquidity needs. There may be volatility in the trading price of our common stock, which could negatively affect the value of an investment in our common stock. Future sales, or the possibility of future sales, of a substantial amount of our common stock may depress the price of the shares of our common stock. Your interests may conflict with those of our current shareholders with whom we conduct significant business. Our organizational documents could limit another party s ability to acquire us and therefore could deprive our investors of the opportunity to obtain a takeover premium for their shares. Limitations on usage of our net operating losses, and other factors requiring us to pay cash taxes in future periods, may affect our ability to pay dividends to you. Competition in the telecommunications industry could result in access line losses or reduce our customer base, possibly requiring that we lower our rates, increase marketing expenditures, invest in new technologies or capabilities or use discounting and promotional campaigns that adversely affect our margins. We may continue to lose access lines due to economic conditions and competition. We may in the future compete with the Iowa Communications Network or with a future purchaser of the assets now owned by the Iowa Communications Network. We may not be able to integrate future technologies, respond effectively to customer requirements or provide new services. Network disruptions could adversely affect our operating results. We may not be able to maintain the necessary rights-of-way for our network. The successful operation and growth of our business are dependent on economic conditions and population stability in Iowa. Our competitive local exchange carrier strategy may adversely affect our profitability and Adjusted EBITDA. We face risks associated with our strategy of growth through acquisitions. We may not be successful in efficiently managing the growth of our business. Our relationships with other telecommunications companies are material to our operations and their financial difficulties may affect our business. We face risks associated with our reliance on our information and billing systems. Labor disputes with our employees could interrupt our operations and adversely affect our business. We depend on key members of our senior management team. Risks Related to Our Regulatory Environment Our business is subject to extensive regulation that could change in a manner adverse to us. FCC and Iowa Utilities Board decisions concerning telecommunications policy and judicial review of such decisions may adversely affect our business. New regulations and changes in existing regulations may force us to incur significant expenses. As the incumbent local exchange carrier in our service areas, we are subject to regulation that is not applicable to our competitors. Changes to existing regulations may reduce the revenue we receive from network access charges. To the extent that services that compete with ours are subject to different regulatory regimes, our revenues, particularly from network access charges, may be reduced. Because we are subject to extensive laws and regulations relating to the protection of the environment, natural resources and worker health and safety, we may face significant liabilities or compliance costs in the future.

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1120462--3/5/2007--IOWA_TELECOMMUNICATIONS_SERVICES_INC