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July 15, 1998 - Citizens Utilities (NYSE: CZN, CZNPr) announced today that it has agreed to acquire Rhinelander Telecommunications, Inc. (OTC: RLNT) in a cash-for-stock transaction valued at approximately $45 per Rhinelander share, subject to certain closing adjustments.

Located in north-central Wisconsin, Rhinelander is a diversified telecommunications company engaged in providing local exchange, long distance, Internet, wireless and cable television services to its franchised service areas. The acquisition is expected to be completed by year-end 1998.

"This transaction is in line with our strategy to expand our national telecommunications footprint," said Leonard Tow, Citizens Chairman and Chief Executive Officer. "In addition to its clustered access lines, the company's wireless operations overlay the local telephone exchange properties, enabling us to offer bundled services to customers. We will also be able to capitalize on Rhinelander's successful penetration of surrounding markets with long-distance and Internet product offerings."

"In addition," Tow said, "the high quality of the underlying assets has contributed to Rhinelander's exceptional growth rates. Recent upgrades to switching facilities and fiber deployment allow for the provisioning of high-margin features, including data. Rhinelander's past capital expenditures will minimize Citizens' future capital obligations."

As previously announced, Citizens is separating its telecommunications businesses and public services businesses into two stand-alone, publicly traded companies. The separation, which should be completed in 1999, will not be affected by the acquisition of Rhinelander.
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