<PAGE>
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_______________
AMENDMENT NO. 1
TO
SCHEDULE 13E-3
RULE 13E-3 TRANSACTION STATEMENT
(PURSUANT TO SECTION 13(c) OF THE
SECURITIES EXCHANGE ACT OF 1934)
EMERGING COMMUNICATIONS, INC.
(Name of the Issuer)
EMERGING COMMUNICATIONS, INC.
INNOVATIVE COMMUNICATION CORPORATION
INNOVATIVE COMMUNICATION COMPANY, LLC
JEFFREY J. PROSSER
(Name of Person(s) Filing Statement)
COMMON STOCK, PAR VALUE $0.01 PER SHARE
(Title of Class of Securities)
29089K108
(CUSIP Number of Class of Securities)
Jeffrey J. Prosser
Innovative Communication Company, LLC
Chase Financial Center
P.O. Box 1730
St. Croix, U.S. Virgin Islands 00821
(340) 777-7700
(Name, Address and Telephone Number of Person Authorized to Receive
Notices and Communications on Behalf of Person(s) Filing Statement)
Copy to:
Roger Meltzer, Esq.
Cahill Gordon & Reindel
80 Pine Street
New York, New York 10005
(212) 701-3000
This statement is filed in connection with (check the appropriate box):
[ ] (a) The filing of solicitation materials or an information statement
subject to Regulation 14A, Regulation 14C, or Rule 13e-3(c) under the
Securities Exchange Act of 1934.
[ ] (b) The filing of a registration statement under the Securities Exchange
Act of 1933.
[X] (c) A tender offer.
<PAGE>
[ ] (d) None of the above.
Check the following box if the soliciting materials or information statement
referred to in checking box (a) are preliminary copies. [ ]
Calculation of Filing Fee
Transaction Valuation*: Amount of Filing Fee**:
$ 54,860,644.50 $10,973.00
* For purposes of calculating the filing fee only. The filing fee was
calculated, pursuant to Section 13(e)(3) of the Securities Exchange Act of
1934, as amended, and Rule 0-11 thereunder, on the basis of 5,352,258
Shares of Common Stock (the number of Common Stock outstanding on the date
hereof, but excluding 5,606,873 Shares of Common Stock owned by Innovative
Communications Company), multiplied by the proposed acquisition price U.S.
$10.25 per share.
** 1/50 of 1% of Transaction Valuation.
[X] Check box if any part of the fee is offset as provided by Rule 0-11(a)(2)
and identify the filing with which the offsetting fee was previously paid.
Identify the previous filing by registration statement number, or the form
or schedule and the date of its filing.
Amount Previously Paid: $10,973.00
Form of Registration No.: Schedule 14D-1
Filing Parties: Innovative Communication, Corporation
Innovative Communication, Company, LLC
Jeffrey J. Prosser
Date Filed: August 24, 1998
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<PAGE>
Cross-Reference Sheet
Item in Location of Item(s)
Schedule 13E-3 in Schedule 14D-1
- -------------- -----------------
1(a)........................................ 1(a)
(b)........................................ 1(b)
(c)........................................ 1(c)
(d)-(f)........................................ *
2(a)-(g)....................................... 2(a)-(g)
3(a)(1)........................................ 3(a)
3(a)(2)........................................ 3(b)
3(b)........................................... *
4(a)........................................... *
(b)............................................ **
5(a)-(g).................................... 5
6(a)........................................ 4(a)
(b)........................................ *
(c)........................................ 4(b)
(d)........................................ **
7(a)........................................ 5
(b)-(d).................................... *
8(a)-(e).................................... *
(f)........................................ **
9........................................... *
10(a)-(b).................................... 6(a)-(b)
11........................................... 7
12........................................... *
13(a)........................................ *
(b)(c)
14(a)........................................ *
(b)........................................ **
15(a)........................................ **
(b)........................................ 8
16 10(f)
17(a) 11(b)
(b)........................................ *
(c)........................................ *
(d)........................................ 11(a)
(e)........................................ *
(f)........................................ **
_______________________
* The Item is not required by Schedule 14D-1 of the Exchange Act.
** The Item is not applicable or the answer thereto is in the negative.
<PAGE>
This Amendment No. 1 to Rule 13E-3 Transaction Statement (the "Schedule
13E-3") is being filed by Emerging Communications, Inc., a Delaware corporation
(the "Company"), Innovative Communication Corporation, a U.S. Virgin Islands
corporation (the "Purchaser") and a wholly owned subsidiary of Innovative
Communication Company, LLC, a Delaware limited liability company ("Parent"), and
by the Parent and Jeffrey J. Prosser, pursuant to Section 13(e) of the
Securities and Exchange Act of 1934, as amended (the "Exchange Act"), and Rule
13e-3 thereunder in connection with the tender offer by the Purchaser for all of
the outstanding shares of Common Stock, par value $0.01 per share (the
"Shares"), of the Company not currently directly or indirectly owned by Parent,
net to the seller in cash, without interest thereon, upon the terms and subject
to the conditions set forth in the Offer to Purchase, dated August 24, 1998 (as
supplemented, the "Offer to Purchase") and in the related Letter of Transmittal
(the "Letter of Transmittal", together with the Offer to Purchase, the "Offer").
This Schedule 13E-3 is intended to satisfy the reporting requirements of Section
13(e) of the Exchange Act. The preceding cross-reference sheet, prepared
pursuant to General Instruction F to Schedule 13E-3 of the Exchange Act, shows
the location in the Schedule 14D-1 and Schedule 13 D/A (as amended, the
"Schedule 14D-1") of the information required to be included in response to the
items of Schedule 13E-3 of the Exchange Act. The Schedule 14D-1 was originally
filed by the Purchaser, the Parent and Jeffrey J. Prosser on August 24, 1998. An
amendment thereto is being filed contemporaneously herewith. The information
contained in the Schedule 14D-1, including all exhibits thereto, is expressly
and hereby incorporated herein by reference and the responses to each item are
qualified in their entirety by reference to the information contained in the
Schedule 14D-1 and the exhibits thereto. All cross references in this Schedule
13E-3, other than cross references to the Schedule 14D-1, are to the Offer to
Purchase (as supplemented) included in the Schedule 14D-1.
Item 2. Identity and Background.
Item 2. is hereby supplemented by the addition of the following:
This Schedule 13E-3 is also being filed by the Company. During the
last five years, neither the Company nor any of the directors or executive
officers of the Company have been convicted in a criminal proceeding (excluding
traffic violations or similar misdemeanors) or was party to a civil proceeding
of a judicial or administrative body of competant jurisdiction as a result of
which any such person was or is subject to a judgment, decree or final order
enjoining future violations of, or prohibiting activities subject to, federal or
state securities laws or finding any violation of such laws.
Item 4. Terms of the Transaction.
(a) The information set forth in
<PAGE>
"THE OFFER - 13. Certain Conditions of the Offer" of the Offer to Purchase is
incorporated herein by reference.
Item 8. Fairness of the Transaction.
(a)-(b) The information set forth in "SPECIAL FACTORS - 3. Fairness of
the Offer and the Merger" and "SPECIAL FACTORS - 6. Recommendation of the
Company's Board of Directors and the Special Committee" of the Offer to Purchase
is incorporated herein by reference.
(c)-(e) The information set forth in "SPECIAL FACTORS - 3. Fairness of
the Offer and the Merger" and "SPECIAL FACTORS - 6. Recommendation of the
Company's Board of Directors and the Special Committee" and in "THE OFFER - 13.
Certain Conditions of the Offer" of the Offer to Purchase is incorporated herein
by reference.
<PAGE>
Item 9. Reports, Opinions, Appraisals and Certain Negotiations.
(a)-(b) The information set forth in "SPECIAL FACTORS - 3. Fairness
of the Offer and the Merger" of the Offer to Purchase is incorporated herein
by reference.
Item 12. Present Intention and Recommendation of Certain persons with Regard to
the Transaction.
(b) The information set forth in "SPECIAL FACTORS" - 3. Fairness of
the Offer and the Merger" and "SPECIAL FACTORS - 6. Recommendation of the
Company's Board of Directors and the Special Committee" of the Offer to Purchase
is incorporated herein by reference.
Item 14. Financial Information.
(a) The information set forth in "THE OFFER - 8. Certain Information
Concerning the Company" of the Offer to Purchase is incorporated herein by
reference.
<PAGE>
Item 17. Material to be Filed as Exhibits.
(a) Commitment Letter of the RTFC.
(b)(1) Opinion of Houlihan, Lokey, Howard & Zukin Capital dated
August 17, 1998.
(b)(2) Presentation of Houlihan Lokey dated August 4, 1998.
(b)(3) Presentation of Houlihan Lokey dated August 13, 1998.
(c)(1) Agreement and Plan of Merger (the "Merger Agreement"), dated
as of August 17, 1998, among the Purchaser, ICC Merger Sub Corporation and the
Company.
(c)(2) Non-Competition Agreement dated December 31, 1997 among the
Company, ATN and Mr. Prosser.
(c)(3) Indemnity Agreement dated December 31, 1997 among the Company,
ATN, Mr. Prosser and Mr. Prior.
(c)(4) Tax Sharing Agreement dated December 31, 1997 among the
Company, ATN, Mr. Prosser and Mr. Prior.
(c)(5) Employment Agreement dated December 31, 1997 between Mr.
Prosser and the Company.
(d)(1) Offer to Purchase.
(d)(1)(A) First Supplement to Offer to Purchase.
(d)(2) Letter of Transmittal (including Guidelines for Certification
of Taxpayer Identification Number on Form W-9).
(d)(3) Letter to brokers, dealers, commercial banks, trust companies
and nominees.
(d)(4) Letter to be used by brokers, dealers, commercial banks, trust
companies and nominees to their clients.
(d)(5) Press Release issued by the Company and the Purchaser, dated
August 18, 1998.
(d)(6) Form of newspapers advertisement, dated August 24, 1998.
(d)(7) Notice of Guaranteed Delivery.
(e)(1) Certain provisions of the Delaware General Corporation Law
pertaining to rights of dissenting stockholders.
(f) Not applicable.
(g)(1) Complaint, Brickell Partners, Jeffrey J. Prosser, et al., C.A.
--------------------------------------------
No. 16415NC.
<PAGE>
SIGNATURE
After due inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement are true, complete and
correct.
Dated: September 10, 1998
INNOVATIVE COMMUNICATION CORPORATION
By: /s/ Jeffrey J. Prosser
-------------------------------------
Name:Jeffrey J. Prosser
Title: President
INNOVATIVE COMMUNICATION COMPANY, LLC
By: /s/ Jeffrey J. Prosser
-------------------------------------
Name:Jeffrey J. Prosser
Title: Sole Member
/s/ Jeffrey J. Prosser
----------------------------------------
Jeffrey J. Prosser
EMERGING COMMUNICATIONS, INC.
By: /s/ Thomas Minnich
-------------------------------------
Name: Thomas Minnich
Title: Chief Operating Officer
<PAGE>
EXHIBIT INDEX
-------------
<TABLE>
<CAPTION>
Exhibit Number
------ Page
Exhibit Name Number
------------ ------
<S> <C> <C>
(a)* Commitment Letter from the RTFC.
(b)(1)* Opinion of Houlihan Lokey Howard & Zukin Capital, dated August 17, 1998.
(b)(2) Presentation of Houlihan Lokey dated August 4, 1998.
(b)(3) Presentation of Houlihan Lokey dated August 13, 1998.
(c)(1)* Agreement and Plan of Merger (the "Merger Agreement"), dated as of
August 17, 1998, among the Purchaser, ICC Merger Sub Corporation
and the Company.
(c)(2)* Non-Competition Agreement dated December 31, 1997 among the Company,
ATN and Mr. Prosser.
(c)(3)* Indemnity Agreement dated December 31, 1997 among the Company, ATN,
Mr. Prosser and Mr. Prior.
(c)(4)* Tax Sharing Agreement dated December 31, 1997 among the Company, ATN,
Mr. Prosser and Mr. Prior.
(c)(5)* Employment Agreement dated December 31, 1997 between Mr. Prosser and
the Company.
</TABLE>
______________________
* Incorporated by reference from the Parent's, the Purchaser's and Mr.
Prosser's Statement on Schedule 14D-1 and Schedule 13D/A (Amendment No.
1), dated August 24, 1998 (the "Schedule 14D-1").
<PAGE>
<TABLE>
<CAPTION>
Exhibit Number
------ Page
Exhibit Name Number
------------ ------
<S> <C> <C>
(d)(1)* Offer to Purchase.
(d)(1)(A)* First Supplement to Offer to Purchase.
(d)(2)* Letter of Transmittal (including Guidelines for Certification of
Taxpayer Identification Number on Form W-9.
(d)(3)* Letter to brokers, dealers, commercial banks, trust companies and
nominees.
(d)(4)* Letter to be used by brokers, dealers, commercial banks, trust
companies and nominees to their clients.
(d)(5)* Press Release issued by the Company and the Purchaser, dated August 18,
1998.
(d)(6)* Form of newspaper advertisement, dated August 24, 1998.
(d)(7)* Notice of Guaranteed Delivery.
(e)(1)* Certain provisions of the Delaware General Corporation Law pertaining
to rights of dissenting stockholders.
(f) Not applicable.
(g)(1)* Complaint, Brickell Partners, Jeffrey J. Prosser, et al., C.A. No.
--------------------------------------------
16415NC.
</TABLE>
___________________
* Incorporated by reference from the Parent's, the Purchaser's and Mr.
Prosser's Statement on Schedule 14D-1 and Schedule 13D/A (Amendment No.
1), originally filed on August 24, 1998.
________________________________________________________________________________
<PAGE>
EXHIBIT(b)(2)
[GRAPHIC]
Presentation to the Special Committee of the
Board of Directors of
Emerging Communications, Inc.
- --------------------------------------------------------------------------------
August 4, 1998
HOULIHAN LOKEY HOWARD & ZUKIN CAPITAL
31 West 52nd Street, 11th Floor
New York, NY 10019
(212) 582-5000 . http://www.hlhz.com
New York . Los Angeles . Chicago . San Francisco . Washington, D.C. .
Minneapolis . Dallas . Atlanta . Toronto
<PAGE>
Emerging Communications, Inc.
- --------------------------------------------------------------------------------
Table of Contents
SECTION
-------
Introduction.................................................... A
Timeline of Significant Events.................................. B
Valuation Summary of Proposed Offer............................. C
Valuation Parameters of Emerging Communications................. D
Comparison of Company Projections............................... E
Relative Volume Analysis........................................ F
Supporting Documents............................................ G
- ------------------------------ Houlihan Lokey Howard & Zukin Capital ----------
<PAGE>
- --------------------------------------------------------------------------------
INTRODUCTION
- --------------------------------------------------------------------------------
Emerging Communications, Inc.
- --------------------------------------------------------------------------------
Introduction
- --------------------------------------------------------------------------------
SCOPE OF ENGAGEMENT
Houlihan Lokey Howard & Zukin Capital has been retained by the Special Committee
of the Board of Directors of Emerging Communications, Inc. ("EmCom" or the
"Company") to provide an opinion as to whether the consideration received by the
public common stockholders of EmCom in the proposed acquisition of the Company
(the "Transaction") by Innovative Communications Company LLC ("ICC") is fair
from a financial point of view.
SUMMARY DESCRIPTION OF THE TRANSACTION
On May 29, 1998, the Company announced that it had received a proposal from ICC
for the acquisition of the Company pursuant to which the public shareholders of
the Company would receive $9.125 per share in cash.
Each EmCom shareholder will be entitled to receive $9.125 in cash for each EmCom
share.
DUE DILIGENCE COMPLETED
In connection with our analysis, we have made such reviews, analyses and
inquiries as we have deemed necessary and appropriate under the circumstances.
Among other things, we have:
1. reviewed the publicly available financial information of the Company since
the split-off of the Company from Atlantic Tele-Network Inc. ("ATNI"),
including Annual Reports on Form 10-K of the Company for the fiscal year
ended December 31, 1997, and the Quarterly Report on 10-Q of the Company as
of March 31, 1998;
2. met with certain members of the senior management of the Company to discuss
the operations, financial condition, future prospects and projected
operations and performance of the Company;
3. visited certain facilities and business offices of the Company in St.
Thomas, U.S. Virgin Islands;
4. reviewed forecasts dated March 25, 1998 prepared by the Company's
management for the years ending December 31, 1998 through 2007:
- ---------------------------------- Houlihan Lokey Howard & Zukin Capital --- 1
<PAGE>
Emerging Communications, Inc.
- --------------------------------------------------------------------------------
Introduction
- --------------------------------------------------------------------------------
5 reviewed the historical market prices and trading volume for the publicly
traded securities of the Company;
6. reviewed publicly available financial data for certain companies that we
deem comparable to the Company, and publicly available prices and premiums
paid in other transactions that we considered similar to the Transaction;
7. had discussions with Jeffrey J. Prosser, the majority shareholder of the
Company and the sole shareholder of ICC, and with certain members of
Prudential Securities who are acting as advisor to Mr. Prosser; and
8 conducted such other studies, analyses and inquiries as we have deemed
appropriate.
LIMITING CONDITIONS
We have relied upon and assumed, without independent verification, that the
financial forecasts and projections provided to us have been reasonably prepared
and reflect the best currently available estimates of the future financial
results and condition of the Company, and that there has been no material change
in the assets, financial condition, business or prospects of the Company since
the date of the most recent financial statements made available to us.
We have not independently verified the accuracy and completeness of the
information supplied to us with respect to the Company and do not assume any
responsibility with respect to it. We have not made any physical inspection or
independent appraisal of any of the properties or assets of the Company. Our
opinion is necessarily based on business, economic, market and other conditions
as they exist and can be evaluated by us at the date of this presentation.
Houlihan Lokey's Opinion is directed to the Special Committee of the Board of
Directors of the Company and does not constitute a recommendation to any
stockholder of the Company as to how such stockholder should vote at the
stockholders' meeting to be held in connection with the Transaction. Houlihan
Lokey's Opinion is delivered to each recipient subject to the conditions, scope
of engagement, limitations and understandings set forth in this Opinion and our
engagement letter, and subject to the understanding that the obligations of
Houlihan Lokey in the Transaction are solely corporate obligations, and without
limiting Houlihan Lokey's obligations, to the extent permitted by applicable
law, no officer, director, employee, agent, shareholder or controlling person of
Houlihan Lokey shall be subjected to any personal liability whatsoever to any
person, nor will any such claim be asserted by or on behalf of you or your
affiliates.
- ---------------------------------- Houlihan Lokey Howard & Zukin Capital --- 2
<PAGE>
- --------------------------------------------------------------------------------
TIMELINE OF SIGNIFICANT EVENTS
- --------------------------------------------------------------------------------
Emerging Communications, Inc.
- --------------------------------------------------------------------------------
Timeline of Significant Events
- --------------------------------------------------------------------------------
February 1996 The two largest (and majority) shareholders of ATNI agreed to
explore the possibility of selling the company. PaineWebber
Inc. and Prudential Securities Inc. were retained to solicit
potential buyers. During the selling process, 36 potential
buyers were contacted resulting in 2 credible offers for the
assets of EmCom. One offer represented an equity value range
of between $35-$50 million (enterprise value of between $116
and $131) and the other offer represented an equity value
range of between $90-$120 (enterprise value of between $171
and $201). No transaction was consummated.
January 1997 Mr. Prosser and Mr. Prior announced their intention to split
ATNI into two separate companies.
May 1997 The U.S. Virgin Islands Industrial Development Commission
granted Vitelco, a wholly owned subsidiary of ATNI, a tax
abatement to allow Vitelco to recover damage costs associated
with Hurricane Marilyn in September 1995. The IDC granted a
rebate of 90% of Virgin Islands income taxes and 100% of
Virgin Islands' gross receipts, excise and property taxes for
five years beginning October 1, 1998.
July 1997 The Board of Directors of EmCom approve the split-up of ATNI
into two separate companies. Prudential Securities renders an
opinion stating that the transaction as a whole is fair from a
financial point of view. The terms of the transaction required
Mr. Prosser and Mr. Prior to exchange shares in each of the
two companies implying a price of $13.25 for each share of
EmCom and, simultaneous with the closing of the transaction,
the Company purchased approximately 1.3 million shares of
EmCom from Mr. Prior for cash consideration equal to $13.25
per share.
December 1997 ATNI split to create two public companies, Emerging
Communications (AMEX: ECM) and ATN (AMEX: ANK). Emerging
Communications retained ownership of the telephone operations
in the U.S. The Virgin Islands and ATN retained ownership of
operations in Guyana.
March 1998 Mr. Prosser completed the purchase of the Virgin Islands
cable company through ICC.
April 1998 The Company announced the completed acquisition of 66% of SMB
Holdings ("SMB"), a cellular provider in St. Maarten and St.
Martin. The purchase price was based on 5 times SMB's EBITDA.
May 1998 EmCom announced that the Board of Directors received a
proposal from ICC for the acquisition of the Company for
$9.125 per share. ICC is a Company wholly owned by Jeffrey
Prosser, the Chairman, CEO and controlling shareholder of
Emcom.
- ----------------------------------- Houlihan Lokey Howard & Zukin Capital --- 3
<PAGE>
- --------------------------------------------------------------------------------
VALUATION SUMMARY OF PROPOSED OFFER
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Emerging Communications
Valuation Summary of Proposed Offer
- --------------------------------------------------------------------------------
($ in 000, except per share and access line values)
Offer Price
-----------
Offer Price Per Share $9.125
Shares Outstanding 10,959
------
Market Value of Equity ("MVE") $100,002
Net Debt (debt net of cash as of June 30, 1998) $168,180
--------
Total Invested Capital ("TIC") $268,182
Premium Over Unaffected Stock Price of $6.8375 (1) 33.5%
Premium Over 52 Week High of $9.00 as of January 6, 1998 1.4%
Premium Over 52 Week Low of $6.25 as of February 5, 1998 46.0%
Representative
P/E Multiples Level
- ----------------- -----
Projected 1998 P/E $7,119 14.0x
Projected 1999 P/E (2) $8,803 11.4x
TIC Multiples (3)
- -----------------
LTM Pro Forma Revenue $84,221 3.2x
LTM Pro Forma EBITDA $39,719 6.8x
LTM Pro Forma EBIT $20,925 12.8x
Notes
- -----
LTM = Latest Twelve Months
P/E = Price Earnings
EBITDA = Earnings Before Interest Taxes and Depreciation
EBIT = Earnings Before Interest and Taxes
(1) Unaffected stock price represents the average stock price for the 30 days
prior to the announcement of the offer.
(2) Net Income is adjusted to reflect a normalized tax rate of 40.0%
(3) All results are pro forma for the acquisition of the St. Martin cellular
operations.
4
<PAGE>
- --------------------------------------------------------------------------------
Emerging Communications, Inc.
- --------------------------------------------------------------------------------
VALUATION SUMMARY OF PROPOSED OFFER
- --------------------------------------------------------------------------------
Emerging Communications
Daily Stock Price and Volume History
[FOLLOWING WAS REPRESENTED BY A GRAPH IN THE PRINTED MATERIAL]
EMCOM
Price Volume Index
----- ------
12/31/97 8.00 21,300 1.00
7.88 0 0.98
8.25 2,000 1.03
8.75 19,600 1.09
8.50 14,100 1.06
8.25 9,700 1.03
8.00 7,700 1.00
7.63 23,900 0.95
7.25 17,600 0.91
7.63 15,900 0.95
01/15/98 7.63 13,600 0.95
7.75 5,800 0.97
7.63 8,300 0.95
7.25 11,100 0.91
7.25 12,800 0.91
7.38 7,400 0.92
7.00 13,800 0.88
6.88 7,000 0.86
6.88 4,500 0.86
6.50 18,200 0.81
01/30/98 6.75 11,100 0.84
6.69 28,500 0.84
6.69 3,900 0.84
6.69 1,800 0.84
6.50 24,200 0.81
6.50 19,300 0.81
6.91 25,000 0.87
6.94 13,900 0.87
7.50 39,800 0.94
7.56 12,300 0.95
02/13/98 7.38 3,300 0.92
7.50 2,300 0.94
7.50 5,500 0.94
7.50 12,200 0.94
7.56 5,600 0.95
7.63 3,100 0.95
7.63 37,800 0.95
7.63 11,500 0.95
7.63 900 0.95
7.63 60,100 0.95
03/02/98 7.63 1,600 0.95
7.69 53,100 0.96
7.75 51,400 0.97
7.50 6,700 0.94
7.50 5,500 0.94
7.13 43,900 0.89
7.00 15,100 0.88
6.94 3,000 0.87
7.31 81,400 0.91
7.44 10,000 0.93
03/16/98 7.50 41,800 0.94
7.44 4,400 0.93
7.38 17,600 0.92
7.38 2,200 0.92
7.38 21,100 0.92
7.38 15,300 0.92
7.13 6,800 0.89
7.00 19,600 0.88
7.06 1,300 0.88
7.38 15,600 0.92
03/30/98 7.38 20,900 0.92
7.00 53,600 0.88
6.94 4,000 0.87
6.88 12,200 0.86
6.75 11,500 0.84
6.63 200 0.83
6.88 3,500 0.86
6.75 800 0.84
6.75 5,400 0.84
6.75 4,000 0.84
04/14/98 6.75 3,200 0.84
6.75 10,000 0.84
6.63 5,600 0.83
6.63 13,600 0.83
6.75 7,000 0.84
6.75 2,300 0.84
6.56 6,200 0.82
6.56 1,600 0.82
6.75 5,400 0.84
6.50 4,400 0.81
04/28/98 6.50 5,600 0.81
6.50 13,500 0.81
6.38 11,000 0.80
6.25 0 0.78
6.50 3,500 0.81
6.56 1,700 0.82
6.69 1,800 0.84
6.75 10,100 0.84
6.75 5,000 0.84
6.63 12,600 0.83
05/12/98 6.94 56,500 0.87
7.06 34,200 0.88
7.00 23,600 0.88
7.04 50,000 0.88
7.50 23,200 0.94
7.50 9,400 0.94
7.44 32,100 0.93
7.38 13,500 0.92
7.19 11,100 0.90
7.00 8,400 0.88
05/27/98 7.00 1,300 0.88
7.00 30,300 0.88
8.94 47,600 1.12
8.75 51,600 1.09
8.56 11,600 1.07
8.63 25,500 1.08
8.56 21,500 1.07
8.75 22,700 1.09
8.56 12,500 1.07
8.50 12,900 1.06
06/10/98 8.50 10,800 1.06
8.38 14,500 1.05
8.38 1,800 1.05
8.38 100 1.05
8.38 2,100 1.05
8.31 5,500 1.04
8.31 7,500 1.04
8.25 300 1.03
8.38 3,700 1.05
8.38 7,500 1.05
06/24/98 8.50 1,400 1.06
8.50 4,800 1.06
8.63 4,300 1.08
8.50 6,400 1.06
8.56 13,700 1.07
8.50 300 1.06
8.50 3,100 1.06
8.50 8,700 1.06
8.44 20,500 1.05
8.44 3,500 1.05
07/09/98 8.38 7,900 1.05
8.13 25,700 1.02
8.13 4,600 1.02
8.13 4,100 1.02
8.38 9,400 1.05
8.25 30,400 1.03
8.00 0 1.00
8.31 20,300 1.04
8.38 13,200 1.05
07/22/98 8.38 11,000 1.05
- ------------------------------------ Houlihan Lokey Howard & Zukin Capital --- 5
<PAGE>
- --------------------------------------------------------------------------------
VALUATION PARAMETERS OF
EMERGING COMMUNICATIONS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Emerging Communications
Proforma Historical Representative Earnings Levels
- --------------------------------------------------------------------------------
($ in thousands)
<TABLE>
<CAPTION>
Estimated Estimated Estimated
Proforma FYE (1) Proforma FYE (1) LTM Ended (1) Projected FYE 1996-1998
December 1996 December 1997 June 1998 December 1998 CAGR
---------------- ---------------- ---------------- ---------------- ---------
% of % of % of % of
Dollars Revenue Dollars Revenue Dollars Revenue Dollars Revenue
------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Total Revenues $78,527 100.0% $83,779 100.0% $84,221 100.0% $82,620 100.0% 2.6%
Total Operating
Expenses 42,078 53.6% 44,897 53.6% 44,502 52.8% 41,380 50.1%
------- ------- ------- -------
- --------------------------------------------------------------------------------------------------------------
Total EBITDA $36,449 46.4% $38,882 46.4% $39,719 47.2% $41,240 49.9% 6.4%
- --------------------------------------------------------------------------------------------------------------
Total Depreciation
and Amortization 15,075 19.2% 16,342 19.5% 18,794 22.3% 20,033 24.2%
- --------------------------------------------------------------------------------------------------------------
Total EBIT $21,374 27.2% $22,540 26.9% $20,925 24.8% $21,207 25.7% -0.4%
- --------------------------------------------------------------------------------------------------------------
Interest (net) 9,998 12.1%
----------------
Earning Before Taxes 11,209 13.6%
Taxes 4,090 5.0%
- --------------------------------------------------------------------------------------------------------------
Net Income Before Minority Interest 7,119 8.6%
- --------------------------------------------------------------------------------------------------------------
Access Lines 58,036 62,140 63,689 64,626 5.5%
</TABLE>
(1) Includes pro forma results of EmCom and the St. Martin cellular operations
assuming the transaction occurred on January 1, 1996.
6
<PAGE>
- --------------------------------------------------------------------------------
Emerging Communications
Actual Historical Representative Earnings Levels
- --------------------------------------------------------------------------------
($ in thousands)
<TABLE>
<CAPTION>
6 Months 6 Months
EmCom EmCom Ended Ended LTM EmCom 1996-1998
FYE 1996 FYE 1997 Jun-98 Jun-97 Jun-98 FYE 1998 CAGR
-------- -------- -------- -------- ------ -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Revenue $68,664 $73,339 $36,988 $36,546 $73,781 $82,620 9.7%
Operating Expenses 37,455 39,914 17,540 17,935 39,519 41,380
------- ------- ------- ------- ------- -------
- ---------------------------------------------------------------------------------------------------------------
EBITDA $31,209 $33,425 $19,448 $18,611 $34,262 $41,240 15.0%
- ---------------------------------------------------------------------------------------------------------------
Depreciation and
Amortization 14,276 15,489 10,467 8,015 17,941 20,033
- ---------------------------------------------------------------------------------------------------------------
EBIT $16,933 $17,936 $8,981 $10,596 $16,321 $21,207 11.9%
- ---------------------------------------------------------------------------------------------------------------
Other Income and
Expense (9,082) (8,038) (3,998) (4,148) (7,888) 9,998
Income Taxes 2,215 (8,391) 1,761 (8,997) 2,367 4,090
Minority Interest 81 -- -- 4 (4) (1,452)
------- ------- ------- ------- ------- -------
- ---------------------------------------------------------------------------------------------------------------
Net Income $5,555 $18,289 $3,222 $15,441 $6,070 $5,667 1.0%
- --------------------------------------------------------------------------------------------------------------- ----------
</TABLE>
7
<PAGE>
- --------------------------------------------------------------------------------
Emerging Communications
Actual Historical Representative Earnings Levels
- --------------------------------------------------------------------------------
($ in thousands)
<TABLE>
<CAPTION>
Projected
1998-2003
-----------------------------------------------------------------------------------------------------
December 1998 December 1999 December 2000 December 2001 December 2002 December 2003 CAGR
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
% % % % % %
Dollars Revenue Dollars Revenue Dollars Revenue Dollars Revenue Dollars Revenue Dollars Revenue
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Revenues $82,620 100.0% $85,953 100.0% $89,244 100.0% $92,504 100.0% $95,826 100.0% $99,152 100.0% 3.7%
Operating
Expenses(1) 41,380 50.1% 39,675 46.2% 40,954 45.9% 42,018 45.4% 43,096 45.0% 45,134 45.5%
--------------- --------------- --------------- --------------- --------------- ---------------
Operating
Margin 41,240 49.9% 46,278 53.8% 48,290 54.1% 50,486 54.6% 52,730 55.0% 54,018 54.5%
--------------- --------------- --------------- --------------- --------------- ---------------
- ---------------------------------------------------------------------------------------------------------------------
EBITDA $41,240 49.9% $46,278 53.8% $48,290 54.1% $50,486 54.6% $52,730 55.0% $54,018 54.5% 5.5%
- ---------------------------------------------------------------------------------------------------------------------
Depreciation and
Amortization 20,033 24.2% 21,615 25.1% 22,057 24.-% 21,968 23.0% 22,463 23.4% 20,894 21.1%
--------------- --------------- --------------- --------------- --------------- ---------------
- ---------------------------------------------------------------------------------------------------------------------
EBIT $21,207 25.7% $24,663 28.7% $26,233 29.4% $28,518 30.8% $30,267 31.6% $33,124 33.4% 9.3%
- ---------------------------------------------------------------------------------------------------------------------
Interest (net) 9,998 12.1% 9,991 11.6% 9,405 10.5% 8,825 9.5% 8,103 8.5% 7,407 7.5%
--------------- --------------- --------------- --------------- --------------- ---------------
Earnings Before
Taxes $11,209 13.6% $14,672 17.1% $16,828 18.9% $19,693 21.3% $22,164 23.1% $25,717 25.9% 18.1%
Taxes 4,090 5.0% 1,669 1.9% 2,621 2.9% 3,492 3.8% 3,760 3.9% 6,182 6.2%
--------------- --------------- --------------- --------------- --------------- ---------------
Net Income
before Minority
Interest 7,119 8.6% 13,003 15.1% 14,207 15.9% 16,201 17.5% 18,404 19.2% 19,535 19.7% 22.4%
Tax
Adjustment (2) $0 $4,200 $4,110 $4,385 $5,106 $4,105
--------------- --------------- --------------- --------------- --------------- ---------------
- ---------------------------------------------------------------------------------------------------------------------
Adjusted Net
Income 7,119 8.6% 8,803 10.2% 10,097 11.3% 11,816 12.8% 13,298 13.9% 15,430 15.6% 16.7%
- ---------------------------------------------------------------------------------------------------------------------
Access Lines 64,626 67,211 69,899 72,695 75,603 78,627 4.0%
</TABLE>
(1) Excludes Depreciation and Amortization.
(2) Adjusts Reported Net Income levels to reflect a normalized 40.0% tax rate.
8
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Emerging Communications
Market Multiple Valuation Analysis
- ------------------------------------------------------------------------------------------------------------------------------------
($ in thousands)
Representative Debt and Total Invested Capital
Level Multiple Range Preferred Range
---------------- -------------------------- ------------- --------------------------------
LTM Ended
6/30/98
- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
TIC/Pro forma Revenue $84,221 2.90 - 3.10 $244,241 - $261,085
TIC/Pro forma EBITDA $39,719 6.5 - 7.5 $258,174 - $297,893
TIC/Pro forma EBIT $20,925 11.0 - 12.0 $230,175 - $251,100
Projected
FY Ending
12/31/98
- -------------
TIC/EBITDA $41,240 6.0 - 7.0 $247,440 - $288,680
TIC/EBIT $21,207 10.5 - 11.5 $222,674 - $243,881
Price/Earnings $7,119 14.0 - 16.0 172,520 $272,186 - $286,424
Projected
Year Ending
12/31/99
- -------------
TIC/EBITDA $46,278 5.5 - 6.5 $254,529 - $300,807
TIC/EBIT $24,663 10.0 - 11.0 $246,630 - $271,293
Price/Earnings $8,803 12.0 - 14.0 172,520 $278,158 - $295,765
- ----------------------------------------------------------------------------------------------------------------------------------
Average of Implied Total Invested Capital Ranges $250,000 - $277,000
- ----------------------------------------------------------------------------------------------------------------------------------
Plus: Cash as of 6/30/98 4,340 - 4,340
Less: Total Debt as of 6/30/98 172,520 - 172,520
- ----------------------------------------------------------------------------------------------------------------------------------
Implied Equity Value Range $81,820 - $108,820
- ----------------------------------------------------------------------------------------------------------------------------------
Add: Value of Tax Abatement Benefit (1) 14,798 - 14,798
Less: Equity Value of Minority Interest in Cellular Operations (2) 10,000 - 10,000
- ----------------------------------------------------------------------------------------------------------------------------------
Adjusted Equity Value Range $86,618 - $113,618
- ----------------------------------------------------------------------------------------------------------------------------------
Shares Outstanding as of 7/23/98 10,959 - 10,959
- ----------------------------------------------------------------------------------------------------------------------------------
Implied Equity Value Per Share $7.90 - $10.37
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Calculation of tax abatement benefit determined using a discounted cash flow
analysis as shown on the following page.
(2) Represents the value of the minority equity ownership (33%) of the St.
Martin cellular operations. Based on verbal representation by the Company
that the 66% of the cellular operations were acquired for $20 million.
9
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Emerging Communications
Discounted Cash Flow - Tax Abatement
- ------------------------------------------------------------------------------------------------------------------------------------
3 Months Projected Fiscal Years Ending December 31,
Ended -----------------------------------------------------------------------
Dec-98 1999 2000 2001 2002 2003
------ ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Tax Abatement Benefit $0 $4,200 $4,110 $4,385 $5,106 $4,105
Discount (Cost of Equity) 16.0%
Discount Period 0.13 0.75 1.75 2.75 3.75 4.75
Discount Factor 0.98 0.89 0.77 0.66 0.57 0.49
Discounted Free Cash Flow $0 $3,757 $3,170 $2,916 $2,926 $2,028
- --------------------------------------------
Net Present Value $14,798
- --------------------------------------------
</TABLE>
Note: Cash Flow is discounted using mid-year convention.
10
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Emerging Communications
Risk Ranking
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Size Size Leverage
Revenue (000's) Access Lines (as of 12/31/97) Total Debt / EBITDA
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <S> <C> <S> <C>
Century Telephone $1,074,256 Century Telephone 1,200,000.00 CT Communications 0.4
Aliant Communications $293,250 Aliant Communications 273,008.00 CFW Communications 0.7
- ----------------------------------------
Emerging Communications $84,221 CT Communications 102,221.00 Aliant Communications 0.8
- ----------------------------------------
CT Communications $81,647 Conestoga Enterprises 76,421.00 North Pittsburgh 0.8
--------------------------------------------
Hickory Tech Corp $79,650 Emerging Communications 62,140.00 Hickory Tech Corp 1.4
--------------------------------------------
North Pittsburgh $65,716 Hickory Tech Corp 59,223.00 Conestoga Enterprises 1.8
CFW Communications $61,779 D & E Communications 53,673.00 D & E Communications 2.1
----------------------------------------
Conestoga Enterprises $59,161 CFW Communications 36,000.00 Emerging Communications 4.3
----------------------------------------
D & E Communications $49,418 North Pittsburgh NA Century Telephone 4.7
- ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ----------------------------------------------------------------------------------------
Coverage Quality of Earnings
EBITDA Interest Coverage Depreciation / Net Income
- ----------------------------------------------------------------------------------------
<S> <C> <S> <C>
Aliant Communications 62.8 D & E Communications 104.6%
---------------------------------------------
CFW Communications 42.4 Emerging Communications 89.8%
---------------------------------------------
CT Communications 40.8 Conestoga Enterprises 68.7%
North Pittsburgh 36.3 Century Telephone 58.2%
Conestoga Enterprises 12.3 Aliant Communications 55.0%
Hickory Tech Corp 10.1 North Pittsburgh 49.5%
D & E Communications 7.6 CT Communications 48.5%
Century Telephone 6.3 CFW Communications 46.4%
- -----------------------------------------
Emerging Communications NA Hickory Tech Corp 39.2%
- ----------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
Efficiency Efficiency Profitability
Inventory Turnover Average Collection Period EBIT / Sales
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <S> <C> <S> <C>
Conestoga Enterprises 44.2 Conestoga Enterprises 39.2 North Pittsburgh 33.7%
Century Telephone 34.6 CT Communications 40.4 CFW Communications 33.1%
D & E Communications 27.5 North Pittsburgh 50.8 Century Telephone 32.5%
---------------------------------------------
CT Communications 22.0 Emerging Communications 61.1 Aliant Communications 31.4%
---------------------------------------------
CFW Communications 20.9 Century Telephone 61.9 Hickory Tech Corp 27.5%
North Pittsburgh 12.6 CFW Communications 63.6 Conestoga Enterprises 26.4%
- ----------------------------------------
Emerging Communications 10.4 Hickory Tech Corp 65.7 CT Communications 26.3%
- ----------------------------------------
--------------------------------------
Hickory Tech Corp 8.2 D & E Communications 95.5 Emerging Communications 24.8%
--------------------------------------
Aliant Communications NA Aliant Communications NA D & E Communications 17.1%
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ----------------------------------------------------------------------------------------
Profitability Profitability
EBITDA /Sales EBT / Sales
- ----------------------------------------------------------------------------------------
<S> <C> <S> <C>
Century Telephone 51.4% North Pittsburgh 32.3%
North Pittsburgh 50.4% CFW Communications 32.0%
Aliant Communications 48.6% Aliant Communications 30.6%
CFW Communications 48.5% CT Communications 25.3%
- -----------------------------------------
Emerging Communications 47.2% Century Telephone 24.3%
- -----------------------------------------
Conestoga Enterprises 44.6% Hickory Tech Corp 23.7%
CT Communications 39.0% Conestoga Enterprises 22.8%
Hickory Tech Corp 38.3% D & E Communications 12.5%
---------------------------------------------
D & E Communications 35.0% Emerging Communications NA
- ----------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
Growth Growth Growth
4-Year Revenue Annual Revenue 4-Year EBITDA
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <S> <C> <S> <C>
D & E Communications 51.6% Conestoga Enterprises 31.0% D & E Communications 63.9%
CFW Communications 21.1% Century Telephone 20.3% Century Telephone 19.9%
Century Telephone 20.1% CFW Communications 18.1% Aliant Communications 15.4%
--------------------------------------
CT Communications 15.6% CT Communications 17.0% Emerging Communications (1) 15.0%
--------------------------------------
Aliant Communications 11.6% Hickory Tech Corp 14.9% CFW Communications 14.5%
North Pittsburgh 10.6% North Pittsburgh 10.5% Hickory Tech Corp 13.2%
Hickory Tech Corp 9.8% D & E Communications 9.2% North Pittsburgh 9.5%
- ----------------------------------------
Emerging Communications (1) 9.7% Aliant Communications 8.4% CT Communications 8.3%
- ---------------------------------------- --------------------------------------------
Conestoga Enterprises NA Emerging Communications 6.8% Conestoga Enterprises NA
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------------
Growth Growth
Annual EBITDA 5 Year Projected EPS Growth (2)
- ------------------------------------------------------------------------------------
<S> <C> <C> <C>
Hickory Tech Corp 21.0% Emerging Communications 17%
CFW Communications 20.1% Century Telephone 13%
CT Communications 19.0% CFW Communications 13%
Century Telephone 19.0% Aliant Communications (3) 10%
Conestoga Enterprises 17.8% North Pittsburgh 8%
North Pittsburgh 12.7% Hickory Tech Corp NA
Aliant Communications 12.1% D & E Communications NA
D & E Communications 8.4% Conestoga Enterprises NA
Emerging Communications 7.1% CT Communications NA
- ------------------------------------------------------------------------------------
</TABLE>
(1) Represents two year growth from 1996 to projected fiscal year 1998.
Comparable company growth rates are based on historical financial results.
(2) Source of EPS growth is S&P Earnings Guide, July 1998.
(3) Source of earnings growth is IBES.
11
<PAGE>
EMERGING COMMUNICATIONS
MULTIPLE RANKING ANALYSIS
- -------------------------------------- --------------------------------------
VALUATION MULTIPLE VALUATION MULTIPLE
TIC/REVENUE TIC/EBITDA
- -------------------------------------- --------------------------------------
Century Telephone 6.8x Century Telephone 13.2x
CFW Communications 6.2x CFW Communications 12.7x
CT Communications 3.8x CT Communications 9.6x
Aliant Communications 3.7x D & E Communications 8.6x
North Pittsburgh Systems 3.5x Hickory Tech Corp 8.6x
Conestoga Enterprises 3.3x Aliant Communications 7.7x
OFFER IMPLIED MULTIPLE 3.2x Conestoga Enterprises 7.3x
D & E Communications 3.0x North Pittsburgh Systems 6.9x
UNAFFECTED EMCOM MULTIPLE 2.9x OFFER IMPLIED MULTIPLE 6.8x
Hickory Tech Corp 2.8x UNAFFECTED EMCOM MULTIPLE 6.1x
- -------------------------------------- --------------------------------------
VALUATION MULTIPLE VALUATION MULTIPLE
TIC/PROJECTED 1998 P/E TIC/EBIT
- -------------------------------------- --------------------------------------
CFW Communications 39.7x Century Telephone 21.0x
Century Telephone 27.2x CFW Communications 18.6x
Aliant Communications 18.3x D & E Communications 17.6x
OFFER IMPLIED MULTIPLE 14.0x CT Communications 14.3x
UNAFFECTED EMCOM MULTIPLE 10.5x OFFER IMPLIED MULTIPLE 12.8x
North Pittsburgh Systems NA Conestoga Enterprises 12.3x
D & E Communications NA Aliant Communications 11.9x
CT Communications NA UNAFFECTED EMCOM MULTIPLE 11.6x
Hickory Tech Corp NA North Pittsburgh Systems 10.3x
Conestoga Enterprises NA Hickory Tech Corp 10.2x
Source: The July 1998 Standard & Poors Earnings Guide and IBES Earnings
Estimates.
Note: Unaffected Emcom Multiple is based on the average stock price for the 30
days prior to the date of the offer.
12
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
EMERGING COMMUNICATIONS
MULTIPLE RANKING ANALYSIS
- --------------------------------------------------------------------------------------------------------------------------------
TIC/REVENUE TIC/EBITDA
- ------------------------------------------------------- -------------------------------------------------------
PROJECTED
-------------------
LTM FYE 1999 1998 LTM FYE
---- ---- ---- ---- --- ---
<S> <C> <C> <C> <C> <C> <C> <C>
Aliant Communications 3.72 3.81 Aliant Communications 7.1 7.5 7.7 7.8
CFW Communications 6.17 6.46 CFW Communications 13.5 15.0 12.7 13.3
CT Communications 3.76 3.91 CT Communications NMF NMF 9.6 70
Century Telephone 6.81 8.12 Century Telephone 11.6 12.6 13.2 16.1
Conestoga Enterprises 3.25 3.42 Conestoga Enterprises NMF NMF 7.3 7.4
D & E Communications 3.01 3.06 D & E Communications NMF NMF 8.6 8.5
Hickory Tech Corp 2.80 2.92 Hickory Tech Corp NMF NMF 7.3 7.7
North Pittsburgh 3.46 3.44 North Pittsburgh NMF NMF 6.9 6.9
- ------------------------------------------------------ --------------------------------------------------------
Median 3.59 3.63 Median 11.6 12.6 8.1 8.1
Mean 4.12 4.39 Mean 10.7 11.7 9.2 9.7
- ------------------------------------------------------ --------------------------------------------------------
Unaffected EmCom Multiple 2.89 2.90 Unaffected EmCom Multiple 5.3 5.9 6.1 6.3
Offer Implied Emcom Multiple 3.18 3.20 Offer Implied Emcom Multiple 5.8 6.5 6.8 6.9
<CAPTION>
PRICE/EARNINGS TIC/REVENUE
- ------------------------------------------------------ --------------------------------------------------------
PROJECTED PROJECTED
-------------------- ---------------
1999 1998 LTM FYE 1999 1998 LTM FYE
---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Aliant Communications 16.7 18.3 18.7 19.2 Aliant Communications 10.5 11.5 11.9 12.2
CFW Communications 33.4 39.7 29.5 34.2 CFW Communications 20.4 24.0 18.6 19.6
CT Communications NMF NMF 24.1 23.0 CT Communications NMF NMF 14.3 14.5
Century Telephone 23.1 27.2 NMF NMF Century Telephone 17.1 19.4 21.0 24.8
Conestoga Enterprises NMF NMF 37.8 34.9 Conestoga Enterprises NMF NMF 12.3 12.4
D & E Communications NMF NMF NMF NMF D & E Communications NMF NMF 17.6 16.3
Hickory Tech Corp NMF NMF 41.8 44.8 Hickory Tech Corp NMF NMF 10.2 10.8
North Pittsburgh NMF NMF NMF NMF North Pittsburgh NMF NMF 10.3 10.3
- -----------------------------------------------------------------------------------------------------------------------------------
Median 28.3 27.2 29.5 34.2 Median 18.7 19.4 13.3 13.4
Mean 24.4 28.4 30.4 31.2 Mean 16.0 18.3 14.5 15.1
- -----------------------------------------------------------------------------------------------------------------------------------
Unaffected EmCom Multiple 8.5 10.5 NA NA Unaffected EmCom Multiple 9.9 11.5 11.6 10.8
Offer Implied Emcom Multiple 11.4 14.0 NA NA Offer Implied Emcom Multiple 10.9 12.6 12.8 11.9
</TABLE>
Note: Unaffected stock price is based on the average stock price 30 days prior
to the announcement date.
13
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
EMERGING COMMUNICATIONS
DISCOUNTED CASH FLOW
- ----------------------------------------------------------------------------------------------------------------------------------
3 MONTHS
ENDED PROJECTED FISCAL YEARS ENDING DECEMBER 31,
------------------------------------------------------
DEC-98 1999 2000 2001 2002
------ ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
EBITDA $ 10,310 $ 46,278 $ 48,290 $ 50,486 $ 52,730
Less Depreciation 5,008 21,615 22,057 21,968 22,463
-------------------------------------------------------------------
EBIT 5,302 24,663 26,233 28,518 30,267
Tax on EBIT(1) 40% 2,121 9,865 10,493 11,407 12,107
-------------------------------------------------------------------
Earnings Before Interest & After Taxes 3,181 14,798 15,740 17,111 18,160
Plus: Depreciation 5,008 21,615 22,057 21,968 22,463
Less:
Change in Working Capital(2) 0 0 0 0 0
Capital Expenditures (2250) (8950) (8850) (8850) (8850)
-------------------------------------------------------------------
Free Cash Flow $ 5,939 $ 27,463 $ 28,947 $ 30,229 $ 31,773
<CAPTION>
SENSITIVITY TABLE
- -----------------
TERMINAL EBITDA MULTIPLE
----------------------------------------------------------------
5.5 6.0 6.5 7.0 7.5
--------------------------------------------------------------------------
12.0% 275,873 292,068 308,264 324,459 340,654
13.0% 267,436 283,024 298,612 314,200 329,788
WACC 14.0% 259,362 274,370 289,379 304,387 319,396
15.0% 251,632 266,087 280,542 294,998 309,453
16.0% 244,228 258,155 272,082 286,009 299,936
--------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
IMPLIED TOTAL INVESTED CAPITAL RANGES $ 266,000 - $ 314,000
- -------------------------------------------------------------------------------------------------------------------
Plus: Cash as of 6/30/98 4,340 4,340
Less: Total Debt as of 6/30/98 172,520 172,520
- -------------------------------------------------------------------------------------------------------------------
IMPLIED EQUITY VALUE RANGE $ 97,820 $ 145,820
- -------------------------------------------------------------------------------------------------------------------
Add: Value of Tax Abatement Benefit 14,798 - 14,798
Less: Equity Value of Minority Interest in Cellular Operations(3) 10,000 - 10,000
- -------------------------------------------------------------------------------------------------------------------
ADJUSTED EQUITY VALUE RANGE $ 102,618 $ 150,618
- -------------------------------------------------------------------------------------------------------------------
Shares Outstanding as of 7/23/98 10,959 10,959
- -------------------------------------------------------------------------------------------------------------------
IMPLIED EQUITY VALUE PER SHARE $ 9.36 $ 13.74
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Tax rates are based on a normalized tax rate of 40% for the projected
period.
(2) The model assumes no changes in working capital over the projected
period. The June 30, 1998, balance sheet records an abnormally low accounts
payable balance relative to year-end balances.
(3) Represents the value of the minority equity ownership (33%) of the St.
Martin cellular operations.
14
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
EMERGING COMMUNICATIONS
COMPARABLE TRANSACTIONS
- ----------------------------------------------------------------------------------------------------------------------------------
($ in Millions)
DATE
ANNOUNCED TARGET NAME TARGET BUSINESS DESCRIPTION ACQUIROR NAME
- --------- ----------- --------------------------- -------------
<S> <C> <C> <C>
07/29/98 Puerto Rico Telephone Company Provide telecommunications services GTE Corp. (1)
17/29/98 GTE Corp. Provide telecommunications services Bell Atlantic Corp. (1)
05/11/98 Ameritech Corp. Provide telecommunications services SBC Communications (1)
04/16/98 ICON Communications Corp. Pacific Northwest telecom provider GST Telecommunications, Inc. (1)
03/16/98 360 Communications Co. Provide telecommunications services ALLTEL Corp. (2)
03/09/98 LCI International Inc. Provide telecommunications services Qwest Communications Corp. (2)
01/05/98 Southern New England Telecom Corp. Connecticut-based ILEC SBC Communications
01/02/98 NACT Telecommunications (GST) Provide telephonecommunications services World Access Inc.
12/19/97 Network Long Distance Inc. Provide national fiber optic telecom. svcs IXC Communications Inc.
11/26/97 ACC Corp. Provide telecommunications services Teleport Communications Group (2)
11/10/97 MCI Communications Provide telecommunications services Worldcom Inc. (1)
09/18/97 USLD Communications Corp. Provide long distance communication svcs LCI International Inc. (2)
06/16/97 Consolidated Communications Inc. Provide local telecommunications services McLeod Inc.
06/13/97 Pacific Telecom (PacifiCorp) Provide telecommunications services Century Telephone Enterprises
06/06/97 Teleco Communications Group Inc. Provide switch-based telecom. services Excel Communications Inc. (2)
04/22/96 NYNEX Corp Pvd telecommunication svcs Bell Atlantic Corp. (2)
05/29/98 EMERGING COMMUNICATIONS PVD TELECOMMUNICATIONS SVCS MANAGEMENT (3)
<CAPTION>
DATE TRANSACTION TIC/
ANNOUNCED TARGET NAME VALUE SALES EBITDA EBIT NET INCOME
- --------- ----------- ----- ----- ------- ---- ----------
07/29/98 Puerto Rico Telephone Company $ 2,009.0 3.28 NA 16.3 36.0
17/29/98 GTE Corp. 66,700.0 2.87 7.0 11.9 23.9
05/11/98 Ameritech Corp. 68,400.0 4.28 10.8 18.0 29.8
04/16/98 ICON Communications Corp. 23.8 1.24 15.9 NA NA
03/16/98 360 Communications Co. 6,021.4 4.65 14.1 24.5 91.9
03/09/98 LCI International Inc. 4,400.0 2.68 22.7 44.9 NMF
01/05/98 Southern New England Telecom Corp. 5,970.0 2.89 7.5 14.4 23.6
01/02/98 NACT Telecommunications (GST) 93.2 3.11 11.7 14.6 21.2
12/19/97 Network Long Distance Inc. 169.0 2.43 NMF NMF NA
11/26/97 ACC Corp. 930.2 2.64 21.1 41.2 56.0
11/10/97 MCI Communications 47,300.0 2.41 16.9 70.1 226.3
09/18/97 USLD Communications Corp. 407.1 1.92 39.5 NMF NMF
06/16/97 Consolidated Communications Inc. 423.0 1.65 9.1 15.1 NA
06/13/97 Pacific Telecom (PacifiCorp) 2,225.0 4.21 8.5 14.6 16.3
06/06/97 Teleco Communications Group Inc. 1,017.6 2.37 20.0 23.7 43.1
04/22/96 NYNEX Corp 25,600.0 1.92 5.5 13.1 24.8
LOW $ 23.8 1.24 5.5 11.9 16.3
HIGH $ 68,400.0 4.65 39.5 70.1 226.3
MEDIAN $ 2,117.0 2.66 12.9 16.3 29.8
MEAN $ 14,480.6 2.78 15.0 24.8 53.9
PROJ 1998
05/29/98 EMERGING COMMUNICATIONS $ 268.1 3.20 6.8 12.8 14.0
</TABLE>
Source: Securities Date Corporation and Mergerstat
Note: Includes completed and disclosed domestic transactions>$25MM in the 4813
SIC code range from June 199- to present. In addition, the Bell Atlantic/NYNEX
merger is included.
(1) Pending. Sources include Bloomberg and news releases. Financial Information
as of Fiscal Year End December 199-
(2) Enterprise value is used instead of transaction value, which is calculated
by multiplying the number of shares outstanding by the offering price and then
by adding the cost of convertible securities, short-term debt, straight debt,
convertible debt and preferred equity minus cash and marketable securities.
(3) Transaction value based on proposed offer price of $9,125 per share.
15
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
TARGET: PUERTO RICO TELEPHONE COMPANY (PRTC) TRANSACTION PRICING: ($ IN MILLIONS)
ACQUIROR: GTE, INC. ------------------------------------------------------------
- ---------------------------------------------------- Aggregate Transaction Value (1) $3,939.2
Contingent Payout 0.0
DATE: July 29, 1998 ---
STATUS: Pending Aggregate Transaction Value (no Payout) $3,939.2
Net Debt Assumed 0.0
---
Acquisition (Equity) Price $3,939.2
Consideration Paid: Cash
TARGET BUSINESS DESCRIPTION:
- ----------------------------------------------------------------------------------------------------------------------------
PRTC is the principal subsidiary of the Puerto Rico Telephone Authority (PRTA). It is the Island's largest
provider of telecommunications services to both the business and consumer markets, including local exchange,
long-distance, wireless and Internet access services. It is also the 12th largest telco in the United States.
PRTC serves over 1.3 million access lines, over 155,000 cellular subscribers and over 237,000 paging
customers. (2)
PUERTO RICO TELEPHONE COMPANY (PRTC) FINANCIALS ($ IN MILLIONS) TRANSACTION MULTIPLES:
- ------------------------------------------------------------- ----------------------------------------------------
-------------------------
1997(2) 1996(3) Aggregate Transaction Value to: 1997
------------------------- ----
Sales $1,200.0 $1,100.00 Sales 3.28 X
Access Lines 1,500,000 NA Access Lines $2,626.1
EBIT $242.2 NA EBIT 16.26 X
Net Income $109.4 $130.0 P/E 36.01 X
1996
----
Sales 3.58 X
Book Value of Equity NA NA P/E 30.3 X
DESCRIPTION OF TRANSACTION:
- ----------------------------------------------------------------------------------------------------------------------------
GTE was announced the successful bidder against Telefonico of Spain for the 51% interest in PRTC. GTE is to
contribute $444 million in cash towards the transaction price, while the remaining $1,565 million will be raised in
the public debt market by PRTC. GTE will then sell a 5% interest to Popular, Inc. GTE has also made a commitment to freeze
rates for a period of three years and to offer a 35% discount for nonprofit, secondary and postsecondary schools.
- ----------------------------------------
(1) Based on the 51% purchase price of $2,009 million, consisting of $444 million in cash paid by GTE and $1,565 million raised in
debt and contributed as equity by PRTC.
(2) Business Wire, July 21, 1998.
(3) Telephony, April 20, 1998.
</TABLE>
16
<PAGE>
- --------------------------------------------------------------------------------
COMPARISON OF COMPANY PROJECTIONS
- --------------------------------------------------------------------------------
Emerging Communications
Comparison of Company Projections
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Company Cash Flow Projections as of July 7, 1997
Presentation to the Board of Directors by Prudential Securities
- --------------------------------------------------------------------------------
Projected FY
---------------------------- 3-year
1997E 1998 1999 2000 CAGR
----- ---- ---- ---- ----
Net Revenues 64,812 66,756 68,759 70,822 3.0%
EBITDA 34,924 36,204 38,918 39,651 4.3%
EBIT 20,424 21,704 24,418 25,151 7.2%
Capital Expenditures 14,500 14,500 14,500 14,500
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Company Cash Flow Projections as of March 25, 1998
Presentation to the Board of Directors by Houlihan Lokey Howard & Zukin Capital
- --------------------------------------------------------------------------------
Projected FY
Actual ----------------------------- 3-year
1997 1998(1) 1999 2000 CAGR
----- ------- ---- ---- ----
Net Revenues 73,339 82,620 85,953 89,244 6.8%
EBITDA 33,425 41,240 46,278 48,290 13.0%
EBIT 17,936 21,207 24,663 26,233 13.5%
Capital Expenditures 14,500 9,000 8,850 8,850
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Difference
- --------------------------------------------------------------------------------
Net Revenues 8,527 15,864 17,194 18,422
EBITDA (1,499) 5,036 7,360 8,639
EBIT (2,488) (497) 245 1,082
Capital Expenditures 0 (5,500) (5,650) (5,650)
- --------------------------------------------------------------------------------
(1) Includes the acquisition of the St. Maartin Cellular
17
<PAGE>
- --------------------------------------------------------------------------------
RELATIVE VOLUME ANALYSIS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Emerging Communications
Relative Volume Analysis
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Total Public 90 Day Average Average
Primary Shares Public Float/ Avg. Daily Daily Vol/ Daily Vol/
Outstanding Float (1) Shares Out. Volume (2) Shares Out. Public Float
----------- ----- ----------- ------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Aliant Communications 36,203,000 32,528,581 89.85% 107,297 0.30% 0.33%
CFW Communications 13,009,000 12,260,858 94.25% 14,290 0.11% 0.12%
Conestoga Enterprises 4,626,000 4,257,862 92.04% 1,670 0.04% 0.04%
CT Communications 1,904,000 NA NA 192 0.01% NA
D&E Communications 7,438,000 6,796,677 91.38% 1,811 0.02% 0.03%
Hickory Tech. Corp. 4,543,000 4,320,204 95.10% 2,731 0.06% 0.06%
North Pittsburgh Systems 15,005,000 13,617,240 90.75% 8,613 0.06% 0.06%
Southern New England 57,993,000 67,187,672 98.82% 234,751 0.35% 0.35%
- ---------------------------------------------------------------------------------------------------------------------------
High 67,993,000 67,187,672 98.82% 234,751 0.35% 0.35%
Low 1,904,000 4,257,862 89.85% 192 0.01% 0.03%
Mean 18,840,125 20,138,442 93.17% 46,419 0.12% 0.14%
Median 10,223,500 12,260,858 92.04% 5,672 0.06% 0.06%
- ---------------------------------------------------------------------------------------------------------------------------
Emerging Communications 10,959,000 5,254,900 47.95% 20,627 0.19% 0.39%
</TABLE>
(1) Source: Company's proxy. Public Float is defined as total shares outstanding
less shares held by insiders.
(2) Based on 90-day average daily trading activity as of May 28, 1998.
18
<PAGE>
Emerging Communications
Public Float / Shares Outstanding
[BAR GRAPH]
<PAGE>
Emerging Communications
90 Day Average Daily Trading Volume (1) / Shares Outstanding
[BAR GRAPH]
<PAGE>
Emerging Communications
90 Day Average Daily Trading Volume (1) / Public Float
[BAR GRAPH]
<PAGE>
- --------------------------------------------------------------------------------
SUPPORTING DOCUMENTS
- --------------------------------------------------------------------------------
Emerging Communications, Inc.
- --------------------------------------------------------------------------------
Atlantic Tele-Network Daily Stock Price History
- --------------------------------------------------------------------------------
Daily Price and Volume History One Year
Prior to Split-Off Announcement of ATNI
Atlantic Tele-Network
Daily Price and Volume History
[THE FOLLOWING WAS REPRESENTED BY A GRAPH IN THE PRINTED MATERIAL]
1/2/96 - 1/29/97
Date Price Volume
----- ------
1/2/96 10.88 7,800
1/3/96 10.75 73,000
1/4/96 10.88 22,300
1/5/96 11.13 2,400
1/8/96 11.00 400
1/9/96 10.75 3,900
1/10/96 10.88 8,400
1/11/96 11.00 500
1/12/96 10.75 1,400
1/15/96 10.88 5,800
1/16/96 11.00 7,100
1/17/96 10.88 11,400
1/18/96 10.75 40,100
1/19/96 10.75 24,600
1/22/96 10.75 50,800
1/23/96 10.88 8,600
1/24/96 10.75 46,600
1/25/96 10.94 17,900
1/26/96 10.88 20,300
1/29/96 11.00 25,700
1/30/96 10.97 10,600
1/31/96 11.00 26,800
2/1/96 11.13 29,400
2/2/96 11.13 24,100
2/5/96 11.13 31,300
2/6/96 11.50 18,000
2/7/96 12.50 66,700
2/8/96 14.52 13,100
2/9/96 16.12 01,700
2/12/96 16.01 69,600
2/13/96 16.71 67,900
2/14/96 17.13 71,000
2/15/96 17.00 55,900
2/16/96 17.00 54,200
2/20/96 17.00 38,200
2/21/96 19.21 71,800
2/22/96 18.25 44,200
2/23/96 18.75 67,200
2/26/96 18.50 59,900
2/27/96 19.00 16,200
2/28/96 18.75 17,900
2/29/96 18.00 37,400
3/1/96 18.00 9,100
3/4/96 19.01 05,200
3/5/96 19.75 8,800
3/6/96 20.00 80,700
3/7/96 19.25 44,600
3/8/96 19.13 43,200
3/11/96 19.25 27,100
3/12/96 18.75 6,400
3/13/96 20.50 30,100
3/14/96 20.75 42,800
3/15/96 20.50 18,400
3/18/96 19.75 11,000
3/19/96 21.01 28,600
3/20/96 21.00 8,600
3/21/96 20.25 1,700
3/22/96 21.25 33,000
3/25/96 21.75 11,800
3/26/96 20.88 14,900
3/27/96 20.50 39,900
3/28/96 20.50 4,800
3/29/96 22.50 63,800
4/1/96 23.00 23,300
4/2/96 23.00 2,100
4/3/96 21.25 56,800
4/4/96 21.75 30,000
4/8/96 21.00 22,200
4/9/96 21.50 18,200
4/10/96 21.50 7,300
4/11/96 22.50 47,500
4/12/96 22.50 98,000
4/15/96 22.63 43,400
4/16/96 23.13 37,500
4/17/96 23.53 41,700
4/18/96 22.75 65,200
4/19/96 22.75 11,000
4/22/96 22.88 73,600
4/23/96 22.75 42,300
4/24/96 22.71 33,500
4/25/96 22.25 44,300
4/26/96 22.01 98,100
4/29/96 22.13 12,800
4/30/96 22.00 87,000
5/1/96 23.01 21,800
5/2/96 22.50 42,200
5/3/96 24.73 91,400
5/6/96 25.21 10,800
5/7/96 26.21 11,300
5/8/96 26.74 72,700
5/9/96 26.75 14,600
5/10/96 26.21 03,000
5/13/96 27.21 35,700
5/14/96 26.75 30,400
5/15/96 27.25 46,000
5/16/96 27.00 17,200
5/17/96 27.00 38,000
5/20/96 26.75 21,500
5/21/96 26.25 76,900
5/22/96 26.13 46,800
5/23/96 25.50 28,400
5/24/96 25.25 24,800
5/28/96 26.25 45,200
5/29/96 25.75 85,000
5/30/96 25.50 42,000
5/31/96 26.00 74,900
6/3/96 25.75 14,900
6/4/96 25.01 09,800
6/5/96 24.75 78,800
6/6/96 24.50 92,900
6/7/96 24.25 24,200
6/10/96 23.75 52,500
6/11/96 24.53 72,800
6/12/96 24.72 60,600
6/13/96 24.38 35,000
6/14/96 24.22 42,500
6/17/96 24.81 87,800
6/18/96 25.21 11,300
6/19/96 25.50 18,000
6/20/96 24.51 30,400
6/21/96 24.50 20,900
6/24/96 24.38 23,700
6/25/96 24.25 52,800
6/26/96 23.75 22,000
6/27/96 23.50 30,900
6/28/96 24.00 65,000
7/1/96 24.00 6,500
7/2/96 23.50 20,000
7/3/96 23.69 33,800
7/5/96 23.00 7,600
7/8/96 22.13 91,800
7/9/96 22.00 79,600
7/10/96 22.25 28,900
7/11/96 21.00 77,600
7/12/96 21.50 45,300
7/15/96 20.50 16,000
7/16/96 20.51 68,800
7/17/96 20.56 48,000
7/18/96 21.01 71,200
7/19/96 21.01 69,900
7/22/96 20.75 81,500
7/23/96 20.25 89,600
7/24/96 20.88 56,700
7/25/96 20.75 38,700
7/26/96 20.88 10,200
7/29/96 20.50 44,200
7/30/96 21.25 96,200
7/31/96 21.00 17,400
8/1/96 21.25 48,200
8/2/96 20.50 18,200
8/5/96 20.00 39,200
8/6/96 20.25 11,000
8/7/96 20.38 8,500
8/8/96 20.25 43,500
8/9/96 20.00 12,000
8/12/96 18.75 78,200
8/13/96 18.75 29,100
8/14/96 19.21 12,700
8/15/96 21.11 21,900
8/16/96 21.25 86,300
8/19/96 21.13 47,200
8/20/96 21.25 32,700
8/21/96 21.71 33,100
8/22/96 22.31 17,600
8/23/96 22.75 73,900
8/26/96 24.51 10,700
8/27/96 23.00 83,400
8/28/96 23.00 41,800
8/29/96 22.50 36,500
8/30/96 22.61 23,200
9/3/96 22.63 3,300
9/4/96 22.75 9,300
9/5/96 22.25 69,900
9/6/96 20.38 44,300
9/9/96 20.75 74,400
9/10/96 20.50 65,000
9/11/96 19.75 29,700
9/12/96 19.50 67,900
9/13/96 19.75 84,700
9/16/96 19.75 62,300
9/17/96 20.25 54,200
9/18/96 22.02 10,600
9/19/96 21.71 60,800
9/20/96 21.88 90,000
9/23/96 22.00 34,800
9/24/96 21.25 45,500
9/25/96 20.50 37,100
9/26/96 20.50 48,400
9/27/96 19.75 53,900
9/30/96 20.25 27,800
10/1/96 19.38 24,500
10/2/96 19.25 27,700
10/3/96 19.50 34,300
10/4/96 20.00 35,600
10/7/96 19.75 25,400
10/8/96 20.50 16,000
10/9/96 20.25 25,400
10/10/96 20.25 18,400
10/11/96 20.00 9,900
10/14/96 20.50 8,100
10/15/96 20.25 12,100
10/16/96 20.00 14,700
10/17/96 20.00 4,300
10/18/96 17.61 17,100
10/21/96 18.00 51,800
10/22/96 18.50 28,300
10/23/96 18.00 15,900
10/24/96 18.25 7,100
10/25/96 19.25 35,900
10/28/96 19.25 23,400
10/29/96 18.00 20,500
10/30/96 18.25 3,000
10/31/96 17.63 16,100
11/1/96 17.00 55,500
11/4/96 18.00 50,400
11/5/96 18.38 22,400
11/6/96 19.00 14,700
11/7/96 19.13 23,900
11/8/96 19.25 9,800
11/11/96 18.88 800
11/12/96 18.25 18,000
11/13/96 18.63 17,800
11/14/96 18.50 46,100
11/15/96 18.25 28,100
11/18/96 17.25 33,200
11/19/96 17.25 11,200
11/20/96 17.75 92,700
11/21/96 18.63 60,200
11/22/96 18.75 36,400
11/25/96 19.00 11,100
11/26/96 19.63 66,000
11/27/96 19.50 16,600
11/29/96 18.88 4,200
12/2/96 18.63 43,700
12/3/96 18.25 10,800
12/4/96 18.00 12,300
12/5/96 18.25 47,400
12/6/96 18.19 24,300
12/9/96 16.01 50,700
12/10/96 16.38 64,700
12/11/96 15.13 75,300
12/12/96 15.50 29,600
12/13/96 15.50 54,800
12/16/96 16.01 37,900
12/17/96 17.38 33,800
12/18/96 17.88 85,400
12/19/96 17.25 49,900
12/20/96 17.25 14,100
12/23/96 17.25 64,700
12/24/96 17.00 19,300
12/26/96 16.50 41,800
12/27/96 16.13 24,200
12/30/96 15.94 73,900
12/31/96 15.25 88,500
1/2/97 15.50 11,400
1/3/97 16.50 44,800
1/6/97 17.50 39,200
1/7/97 17.00 42,100
1/8/97 16.25 18,900
1/9/97 16.50 21,300
1/10/97 16.00 35,500
1/13/97 16.25 10,300
1/14/97 15.75 33,400
1/15/97 15.50 44,200
1/16/97 15.75 28,000
1/17/97 15.75 13,900
1/20/97 15.38 10,900
1/21/97 15.88 6,900
1/22/97 15.88 20,300
1/23/97 15.75 38,200
1/24/97 16.25 41,300
1/27/97 16.50 6,400
1/28/97 16.25 43,100
1/29/97 14.71 44,400
Daily Price and Volume History From
Announcement of Split-Off Until Closing
Atlantic Tele-Network
Daily Price and Volume History
[THE FOLLOWING WAS REPRESENTED BY A GRAPH IN THE PRINTED MATERIAL]
1/30/97-12/31/97
Date Price Volume
----- ------
1/30/97 13.22 25,800
1/31/97 12.50 40,500
2/3/97 12.75 14,500
2/4/97 12.75 15,500
2/5/97 12.13 51,200
2/6/97 12.75 19,400
2/7/97 12.75 41,500
2/10/97 11.88 60,400
2/11/97 12.50 15,800
2/12/97 11.00 22,200
2/13/97 12.00 12,100
2/14/97 12.00 20,500
2/18/97 12.25 1,800
2/19/97 12.25 9,100
2/20/97 11.50 7,800
2/21/97 12.25 94,700
2/24/97 12.71 53,600
2/25/97 12.25 53,300
2/26/97 13.00 23,700
2/27/97 13.05 24,400
2/28/97 12.50 1,200
3/3/97 13.00 24,800
3/4/97 12.50 23,000
3/5/97 12.25 33,500
3/6/97 11.50 2,900
3/7/97 12.50 5,300
3/10/97 12.50 1,200
3/11/97 12.50 7,100
3/12/97 12.25 18,000
3/13/97 12.00 14,600
3/14/97 11.38 18,000
3/17/97 12.00 42,300
3/18/97 12.00 51,400
3/19/97 11.31 25,800
3/20/97 11.11 21,700
3/21/97 11.63 43,300
3/24/97 11.00 0
3/25/97 11.63 12,800
3/26/97 11.88 7,400
3/27/97 11.75 10,000
3/31/97 12.25 6,200
4/1/97 11.75 6,900
4/2/97 11.50 6,900
4/3/97 11.13 22,900
4/4/97 11.00 10,900
4/7/97 11.00 20,800
4/8/97 10.75 5,600
4/9/97 11.25 8,800
4/10/97 11.13 12,000
4/11/97 11.00 5,400
4/14/97 11.00 8,100
4/15/97 11.00 4,200
4/16/97 11.00 7,900
4/17/97 11.25 2,500
4/18/97 11.13 2,200
4/21/97 11.00 4,800
4/22/97 11.25 4,100
4/23/97 11.00 2,700
4/24/97 11.00 14,600
4/25/97 10.88 8,100
4/28/97 11.00 65,500
4/29/97 10.88 2,100
4/30/97 10.50 3,700
5/1/97 10.75 60,500
5/2/97 11.75 12,200
5/5/97 12.63 61,100
5/6/97 12.00 11,200
5/7/97 12.50 15,800
5/8/97 12.25 4,200
5/9/97 12.31 5,300
5/12/97 12.31 14,200
5/13/97 12.25 9,000
5/14/97 12.25 20,700
5/15/97 12.38 5,300
5/16/97 12.25 19,300
5/19/97 12.25 2,700
5/20/97 12.25 4,000
5/21/97 12.25 21,200
5/22/97 12.25 48,800
5/23/97 12.50 42,000
5/27/97 12.63 62,900
5/28/97 12.50 28,600
5/29/97 12.13 10,600
5/30/97 12.50 6,400
6/2/97 13.38 22,100
6/3/97 13.00 5,900
6/4/97 12.94 14,400
6/5/97 13.19 10,600
6/6/97 13.00 47,900
6/9/97 13.13 20,800
6/10/97 12.94 2,200
6/11/97 13.00 74,900
6/12/97 12.75 5,500
6/13/97 12.56 9,600
6/16/97 12.00 4,700
6/17/97 12.00 23,400
6/18/97 12.25 13,600
6/19/97 12.00 3,900
6/20/97 11.69 18,000
6/23/97 11.50 14,700
6/24/97 11.75 18,600
6/25/97 11.38 65,500
6/26/97 11.11 11,900
6/27/97 11.19 53,100
6/30/97 12.50 48,300
7/1/97 11.75 14,800
7/2/97 11.63 36,700
7/3/97 11.38 8,800
7/7/97 11.13 9,900
7/8/97 11.25 8,000
7/9/97 11.13 3,800
7/10/97 11.94 89,200
7/11/97 12.75 24,500
7/14/97 13.25 11,800
7/15/97 13.25 2,400
7/16/97 12.88 19,500
7/17/97 12.88 4,800
7/18/97 13.00 4,600
7/21/97 12.94 800
7/22/97 12.94 1,200
7/23/97 12.94 8,400
7/24/97 13.00 2,300
7/25/97 12.81 13,900
7/28/97 12.88 74,500
7/29/97 13.25 46,700
7/30/97 13.25 34,900
7/31/97 12.50 26,700
8/1/97 12.75 17,300
8/4/97 12.63 16,100
8/5/97 12.75 11,700
8/6/97 12.88 1,300
8/7/97 12.25 12,400
8/8/97 12.13 1,500
8/11/97 12.00 13,000
8/12/97 12.88 43,900
8/13/97 13.00 31,000
8/14/97 13.13 11,600
8/15/97 13.50 34,100
8/18/97 13.38 9,900
8/19/97 13.13 6,500
8/20/97 13.50 5,600
8/21/97 13.38 1,000
8/22/97 13.13 2,300
8/25/97 13.13 11,600
8/26/97 13.25 2,300
8/27/97 13.19 4,300
8/28/97 13.13 6,000
8/29/97 13.06 3,900
9/2/97 13.13 2,300
9/3/97 13.00 200
9/4/97 13.00 30,300
9/5/97 12.88 500
9/8/97 12.94 4,500
9/9/97 13.13 23,400
9/10/97 12.88 5,700
9/11/97 12.81 1,500
9/12/97 12.94 800
9/15/97 13.06 3,600
9/16/97 13.06 5,300
9/17/97 13.25 14,800
9/18/97 13.25 3,000
9/19/97 13.25 800
9/22/97 13.75 25,800
9/23/97 13.25 9,400
9/24/97 13.25 6,500
9/25/97 13.01 99,200
9/26/97 12.88 5,300
9/29/97 12.81 16,600
9/30/97 13.00 41,700
10/1/97 12.94 400
10/2/97 12.81 3,500
10/3/97 12.75 13,300
10/6/97 12.88 7,400
10/7/97 12.75 16,100
10/8/97 12.38 13,400
10/9/97 12.06 4,800
10/10/97 12.38 4,300
10/13/97 12.44 5,700
10/14/97 12.50 7,900
10/15/97 12.63 7,200
10/16/97 13.25 31,600
10/17/97 12.88 14,800
10/20/97 13.31 14,700
10/21/97 13.25 1,100
10/22/97 13.50 4,600
10/23/97 13.25 5,800
10/24/97 13.38 18,400
10/27/97 12.88 7,600
10/28/97 12.88 9,600
10/29/97 13.00 3,200
10/30/97 12.88 1,200
10/31/97 12.63 10,400
11/3/97 12.63 1,600
11/4/97 12.63 300
11/5/97 12.63 1,300
11/6/97 12.63 6,600
11/7/97 12.88 3,000
11/10/97 12.75 600
11/11/97 12.50 1,000
11/12/97 12.63 200
11/13/97 12.44 2,300
11/14/97 12.31 11,600
11/17/97 12.50 5,500
11/18/97 12.75 5,800
11/19/97 12.75 3,000
11/20/97 12.38 6,900
11/21/97 12.38 10,300
11/24/97 12.38 1,600
11/25/97 12.25 4,600
11/26/97 12.13 14,600
11/28/97 11.63 0
12/1/97 12.00 4,100
12/2/97 11.88 4,000
12/3/97 11.88 8,600
12/4/97 12.00 1,100
12/5/97 12.38 15,600
12/8/97 12.38 1,400
12/9/97 12.38 6,400
12/10/97 12.38 2,200
12/11/97 12.38 16,200
12/12/97 12.00 2,700
12/15/97 11.88 5,900
12/16/97 12.00 1,900
12/17/97 11.88 10,100
12/18/97 11.75 2,000
12/19/97 11.63 5,100
12/22/97 11.38 15,300
12/23/97 11.19 31,100
12/24/97 10.88 8,500
12/26/97 11.25 5,000
12/29/97 10.63 24,000
12/30/97 10.94 17,200
12/31/97 10.88 29,400
- ---------------------------------- Houlihan Lokey Howard & Zukin Capital --- 22
<PAGE>
Emerging Communications, Inc.
- --------------------------------------------------------------------------------
Comparable Companies Stock Price Index
[THE FOLLOWING WAS REPRESENTED BY A GRAPH IN THE PRINTED MATERIAL]
INDEX
<TABLE>
<CAPTION>
Southern
Aliant CFW Conestoga T Comm D&E Comm Hickory Tech North Pitts New Eng.
Date
<S> <C> <C> <C> <C> <C> <C> <C> <C>
01/02/97 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
01/03/97 1.01 0.97 1.00 0.94 1.00 0.99 1.00 1.01
01/06/97 1.01 0.96 1.00 0.94 1.02 0.99 1.00 0.99
01/07/97 1.09 0.96 1.00 0.94 1.00 0.99 0.96 0.98
01/08/97 1.08 0.96 1.00 0.94 1.00 0.99 0.97 0.97
01/09/97 1.09 0.94 1.00 0.94 1.00 1.06 0.97 0.98
01/10/97 1.09 0.95 1.00 0.94 0.98 0.99 1.05 0.97
01/13/97 1.07 0.95 1.02 0.94 1.01 0.99 1.02 0.98
01/14/97 1.06 0.93 1.00 0.94 1.02 0.99 0.97 0.99
01/15/97 1.03 0.93 1.01 0.94 0.98 0.99 0.94 0.99
01/16/97 1.03 0.93 1.00 0.94 1.01 1.03 1.02 0.99
01/17/97 1.01 0.93 1.01 0.94 0.98 0.99 1.02 1.00
01/20/97 1.02 0.93 1.00 0.94 1.00 0.99 0.99 1.00
01/21/97 1.01 0.96 1.00 0.94 0.98 0.99 0.98 0.98
01/22/97 1.03 0.93 0.99 0.94 0.98 0.99 1.02 0.96
01/23/97 1.01 0.96 1.00 0.94 0.98 0.99 0.98 0.96
01/24/97 1.03 0.92 0.99 0.94 0.98 0.99 0.96 0.93
01/27/97 1.00 0.92 0.99 0.94 1.02 1.00 0.96 0.92
01/28/97 0.99 0.96 0.99 0.94 0.98 1.00 0.96 0.92
01/29/97 0.99 0.92 0.99 0.94 0.98 1.02 0.96 0.92
01/30/97 0.99 0.92 1.05 0.94 0.98 1.00 0.87 0.95
01/31/97 1.01 0.92 1.00 0.94 0.98 1.00 0.90 0.97
02/03/97 1.00 0.92 1.04 0.94 1.01 1.00 0.94 0.96
02/04/97 1.01 0.92 1.00 1.00 0.98 1.01 0.96 0.97
02/05/97 1.02 0.94 1.03 0.94 0.98 1.00 0.96 0.97
02/06/97 1.02 0.93 1.00 0.94 0.98 1.02 0.89 0.94
02/07/97 1.03 0.93 1.00 0.94 0.98 1.00 0.96 0.95
02/10/97 1.05 0.93 1.00 0.94 0.98 1.00 0.89 0.95
02/11/97 1.07 0.93 1.00 1.00 0.98 1.00 0.89 0.95
02/12/97 1.06 0.93 1.00 0.94 0.97 1.00 0.88 0.98
02/13/97 1.09 0.93 1.00 1.03 0.97 1.00 0.93 0.98
02/14/97 1.11 0.93 1.00 0.94 0.97 1.00 0.94 0.97
02/18/97 1.08 0.92 1.04 0.94 0.97 1.06 0.91 0.96
02/19/97 1.08 0.93 1.02 0.94 0.97 1.06 0.91 0.96
02/20/97 1.08 0.92 1.05 0.94 0.97 1.03 0.90 0.96
02/21/97 1.12 0.92 1.11 0.97 0.97 1.03 0.89 0.96
02/24/97 1.09 0.92 1.09 0.97 0.97 1.08 0.97 0.97
02/25/97 1.09 0.96 1.13 0.97 0.98 1.05 0.96 0.96
02/26/97 1.07 0.92 1.09 0.97 0.97 1.05 0.98 0.95
02/27/97 1.00 0.91 1.10 0.98 0.97 1.06 0.89 0.94
02/28/97 1.00 0.93 1.07 0.98 0.95 1.05 0.97 0.94
03/03/97 1.01 0.89 1.09 1.09 0.95 1.06 0.97 0.95
03/04/97 1.00 0.89 1.07 1.12 0.97 1.03 0.94 0.93
03/05/97 1.01 0.89 1.07 1.12 0.94 1.03 0.96 0.94
03/06/97 1.03 0.89 1.12 1.12 0.94 1.12 0.95 0.93
03/07/97 1.01 0.91 1.12 1.06 0.93 1.03 0.96 0.93
03/10/97 1.00 0.89 1.12 1.06 0.97 1.03 0.95 0.95
03/11/97 1.00 0.92 1.11 1.06 0.93 1.03 0.88 0.96
03/12/97 1.00 0.91 1.13 1.06 0.95 1.03 0.88 0.96
03/13/97 1.01 0.90 1.10 1.06 0.94 1.03 0.88 0.94
03/14/97 1.00 0.87 1.13 1.06 0.93 1.03 0.89 0.95
03/17/97 1.00 0.87 1.12 1.06 0.93 1.03 0.88 0.94
03/18/97 0.97 0.87 1.12 1.06 0.93 1.03 0.93 0.95
03/19/97 0.98 0.85 1.12 1.06 0.96 1.05 0.90 0.93
03/20/97 0.96 0.84 1.11 1.06 0.93 1.03 0.90 0.92
03/21/97 0.96 0.85 1.11 1.06 0.93 1.03 0.85 0.93
03/24/97 0.97 0.83 1.12 1.06 0.93 1.06 0.79 0.95
03/25/97 0.98 0.85 1.11 1.06 0.91 1.03 0.84 0.97
03/26/97 0.97 0.85 1.11 1.06 0.95 1.03 0.81 0.98
03/27/97 0.96 0.85 1.10 1.06 0.91 1.05 0.78 0.96
03/31/97 0.98 0.85 1.13 1.06 0.96 1.03 0.81 0.93
04/01/97 0.98 0.85 1.10 1.06 0.91 1.03 0.77 0.94
04/02/97 0.96 0.83 1.10 1.06 0.95 1.03 0.72 0.94
04/03/97 0.95 0.82 1.09 1.06 0.91 1.03 0.72 0.93
04/04/97 0.95 0.85 1.13 1.06 0.90 1.04 0.72 0.94
04/07/97 0.95 0.86 1.09 1.06 0.90 1.03 0.72 0.95
04/08/97 0.95 0.84 1.13 1.06 0.90 1.03 0.81 0.97
04/09/97 0.95 0.85 1.09 1.06 0.95 1.03 0.81 0.95
04/10/97 0.95 0.85 1.10 1.06 0.90 1.03 0.76 0.96
04/11/97 0.97 0.82 1.09 1.02 0.90 1.03 0.79 0.96
04/14/97 0.95 0.82 1.09 1.02 0.90 1.04 0.79 0.94
04/15/97 0.99 0.83 1.14 1.02 0.90 1.05 0.78 0.94
04/16/97 0.95 0.83 1.12 1.03 0.90 1.03 0.78 0.95
04/17/97 0.94 0.82 1.13 1.03 0.94 1.03 0.72 0.94
04/18/97 0.96 0.81 1.11 1.03 0.90 1.03 0.70 0.95
04/21/97 0.95 0.83 1.13 1.03 0.95 1.03 0.77 0.95
04/22/97 0.93 0.80 1.10 1.03 0.90 1.03 0.72 0.95
04/23/97 0.93 0.80 1.10 1.03 0.95 1.03 0.74 0.95
04/24/97 0.92 0.80 1.11 1.03 0.94 1.03 0.77 0.95
04/25/97 0.92 0.80 1.09 1.03 0.88 1.10 0.73 0.94
04/28/97 0.92 0.76 1.08 1.03 0.88 1.05 0.79 0.95
04/29/97 0.97 0.79 1.08 1.03 0.90 1.03 0.72 0.96
04/30/97 0.93 0.82 1.07 1.03 0.88 1.03 0.70 0.95
05/01/97 0.94 0.81 1.10 1.01 0.92 1.03 0.77 0.95
05/02/97 0.98 0.84 1.07 1.01 0.88 1.03 0.77 0.96
05/05/97 0.96 0.80 1.11 1.01 0.88 1.06 0.69 0.98
05/06/97 0.97 0.79 1.07 1.06 0.88 1.03 0.72 0.97
05/07/97 0.97 0.77 1.07 1.06 0.88 1.03 0.68 0.97
05/08/97 1.01 0.76 1.07 1.06 0.88 1.04 0.68 0.96
05/09/97 1.01 0.79 1.07 1.06 0.88 1.06 0.73 0.95
05/12/97 0.99 0.78 1.10 1.06 0.88 1.03 0.67 0.97
05/13/97 0.97 0.79 1.07 1.06 0.94 1.04 0.67 0.96
05/14/97 0.97 0.79 1.07 1.06 0.88 1.04 0.66 0.97
05/15/97 0.97 0.78 1.07 1.06 0.88 1.10 0.68 0.97
05/16/97 0.98 0.75 1.10 1.06 0.94 1.06 0.72 0.98
05/19/97 0.96 0.80 1.06 1.09 0.91 1.04 0.71 0.98
05/20/97 0.96 0.80 1.06 1.09 0.88 1.06 0.70 0.98
05/21/97 0.98 0.81 1.09 1.09 0.88 1.04 0.64 0.98
05/22/97 0.98 0.79 1.05 1.09 0.88 1.04 0.66 0.97
05/23/97 1.00 0.82 1.05 1.09 0.91 1.04 0.69 0.98
05/27/97 1.00 0.83 1.05 1.09 0.87 1.03 0.69 1.01
05/28/97 1.03 0.83 1.04 1.09 0.86 1.02 0.72 1.01
05/29/97 1.01 0.84 1.03 1.09 0.86 1.02 0.67 1.01
05/30/97 1.22 0.84 1.04 1.09 0.89 1.06 0.72 1.02
06/02/97 1.12 0.83 1.03 1.09 0.90 1.03 0.72 1.03
06/03/97 1.09 0.82 1.03 1.01 0.86 1.03 0.70 1.03
06/04/97 1.12 0.83 1.05 1.01 0.88 1.03 0.70 1.01
06/05/97 1.10 0.82 1.05 1.01 0.86 1.05 0.72 1.03
06/06/97 1.09 0.83 1.05 1.01 0.85 1.05 0.71 1.04
06/09/97 1.12 0.82 1.04 1.01 0.86 1.04 0.71 1.04
06/10/97 1.10 0.85 1.04 1.01 0.89 1.00 0.73 1.08
06/11/97 1.14 0.82 1.05 1.01 0.88 1.00 0.73 1.08
06/12/97 1.15 0.85 1.06 1.01 0.85 1.01 0.69 1.08
06/13/97 1.14 0.82 1.06 1.01 0.89 1.00 0.73 1.10
06/16/97 1.20 0.82 1.06 1.01 0.85 0.98 0.73 1.09
06/17/97 1.15 0.83 1.06 1.01 0.85 0.98 0.73 1.09
06/18/97 1.13 0.81 1.05 1.01 0.89 0.98 0.68 1.09
06/19/97 1.20 0.84 1.05 1.01 0.89 0.98 0.68 1.06
06/20/97 1.16 0.81 1.09 1.01 0.91 0.98 0.69 1.05
06/23/97 1.17 0.84 1.10 1.09 0.85 1.07 0.66 1.05
06/24/97 1.16 0.80 1.10 1.09 0.83 0.98 0.68 1.05
06/25/97 1.13 0.80 1.09 1.09 0.81 0.98 0.68 1.02
06/26/97 1.10 0.81 1.09 1.09 0.81 0.98 0.81 1.01
06/27/97 1.08 0.83 1.09 1.09 0.87 1.05 0.98 1.01
06/30/97 1.16 0.83 1.09 1.09 0.81 0.98 0.99 1.01
07/01/97 1.17 0.84 1.09 1.09 0.81 1.00 0.95 1.03
07/02/97 1.16 0.83 1.11 1.09 0.87 1.06 0.91 1.03
07/03/97 1.17 0.85 1.09 1.09 0.85 1.05 0.89 1.05
07/07/97 1.21 0.85 1.09 1.09 0.83 1.04 0.87 1.06
07/08/97 1.19 0.81 1.07 1.01 0.82 1.03 0.83 1.06
07/09/97 1.17 0.80 1.11 1.01 0.81 1.03 0.80 1.05
07/10/97 1.21 0.81 1.11 1.01 0.80 1.03 0.77 1.05
07/11/97 1.23 0.82 1.11 1.01 0.80 1.03 0.80 1.05
07/14/97 1.26 0.82 1.11 1.09 0.79 1.04 0.80 1.04
07/15/97 1.26 0.81 1.11 1.09 0.79 1.03 0.80 1.04
07/16/97 1.27 0.81 1.11 1.09 0.79 1.03 0.77 1.05
07/17/97 1.24 0.81 1.11 1.09 0.78 1.03 0.77 1.04
07/18/97 1.26 0.81 1.11 1.09 0.85 1.05 0.74 1.04
07/21/97 1.26 0.84 1.13 1.09 0.77 1.05 0.74 1.03
07/22/97 1.24 0.85 1.16 1.09 0.77 1.05 0.74 1.03
07/23/97 1.09 0.81 1.14 1.09 0.77 1.05 0.74 1.02
07/24/97 1.19 0.81 1.12 1.09 0.86 1.09 0.79 1.01
07/25/97 1.22 0.81 1.12 1.09 0.83 1.07 0.78 1.03
07/28/97 1.21 0.81 1.15 1.09 0.86 1.06 0.77 1.03
07/29/97 1.19 0.81 1.15 1.01 0.78 1.05 0.78 1.04
07/30/97 1.19 0.81 1.15 1.01 0.78 1.07 0.76 1.03
07/31/97 1.22 0.81 1.17 1.01 0.80 1.12 0.78 1.04
08/01/97 1.22 0.84 1.15 1.01 0.78 1.06 0.77 1.04
08/04/97 1.22 0.82 1.15 1.01 0.78 1.09 0.77 1.04
08/05/97 1.25 0.81 1.15 1.01 0.78 1.09 0.77 1.04
08/06/97 1.29 0.81 1.17 1.01 0.87 1.06 0.73 1.06
08/07/97 1.28 0.81 1.16 1.01 0.85 1.06 0.78 1.05
08/08/97 1.26 0.81 1.16 1.01 0.78 1.06 0.74 1.04
08/11/97 1.25 0.81 1.15 1.01 0.78 1.07 0.74 1.05
08/12/97 1.25 0.81 1.15 1.02 0.78 1.06 0.72 1.05
08/13/97 1.28 0.79 1.17 1.09 0.87 1.07 0.69 1.04
08/14/97 1.28 0.81 1.16 1.09 0.85 1.05 0.74 1.04
08/15/97 1.29 0.79 1.17 1.09 0.78 1.06 0.68 1.03
08/18/97 1.26 0.81 1.16 1.09 0.78 1.10 0.68 1.02
08/19/97 1.31 0.81 1.17 1.09 0.78 1.06 0.66 1.03
08/20/97 1.30 0.81 1.16 1.09 0.85 1.10 0.68 1.03
08/21/97 1.32 0.81 1.17 1.09 0.86 1.10 0.68 1.03
08/22/97 1.32 0.79 1.16 1.09 0.80 1.06 0.68 1.02
08/25/97 1.33 0.80 1.16 1.09 0.78 1.06 0.71 1.02
08/26/97 1.33 0.83 1.16 1.09 0.78 1.06 0.65 1.02
08/27/97 1.35 0.85 1.17 1.09 0.77 1.08 0.66 1.02
08/28/97 1.32 0.82 1.19 1.09 0.77 1.07 0.71 1.01
08/29/97 1.35 0.83 1.19 1.09 0.77 1.06 0.71 1.00
09/02/97 1.34 0.83 1.21 1.09 0.77 1.06 0.66 1.02
09/03/97 1.35 0.87 1.19 1.09 0.77 1.06 0.73 1.03
09/04/97 1.36 0.85 1.21 1.15 0.85 1.07 0.73 1.03
09/05/97 1.34 0.83 1.22 1.15 0.77 1.06 0.70 1.03
09/08/97 1.39 0.83 1.22 1.13 0.77 1.07 0.71 1.03
09/09/97 1.37 0.84 1.21 1.13 0.74 1.08 0.70 1.05
09/10/97 1.37 0.84 1.22 1.13 0.80 1.06 0.71 1.04
09/11/97 1.40 0.87 1.21 1.13 0.74 1.06 0.70 1.04
09/12/97 1.41 0.88 1.21 1.13 0.74 1.08 0.69 1.04
09/15/97 1.43 0.88 1.21 1.13 0.83 1.11 0.72 1.05
09/16/97 1.41 0.87 1.23 1.13 0.77 1.14 0.73 1.06
09/17/97 1.38 0.88 1.21 1.13 0.83 1.13 0.72 1.06
09/18/97 1.43 0.90 1.21 1.13 0.83 1.15 0.69 1.06
09/19/97 1.46 0.89 1.21 1.13 0.79 1.20 0.70 1.05
09/22/97 1.46 0.90 1.21 1.13 0.81 1.18 0.71 1.07
09/23/97 1.40 0.89 1.21 1.13 0.77 1.18 0.74 1.05
09/24/97 1.40 0.92 1.21 1.13 0.75 1.16 0.71 1.06
09/25/97 1.35 0.92 1.21 1.13 0.79 1.17 0.74 1.06
09/26/97 1.36 0.99 1.21 1.13 0.74 1.17 0.72 1.06
09/29/97 1.39 0.97 1.21 1.13 0.79 1.17 0.72 1.04
09/30/97 1.44 0.99 1.23 1.13 0.77 1.19 0.74 1.07
10/01/97 1.45 0.96 1.21 1.13 0.79 1.21 0.78 1.09
10/02/97 1.47 0.95 1.22 1.13 0.73 1.21 0.77 1.10
10/03/97 1.48 0.94 1.21 1.13 0.73 1.22 0.76 1.11
10/06/97 1.49 0.93 1.21 1.13 0.80 1.25 0.72 1.12
10/07/97 1.49 0.92 1.22 1.15 0.77 1.25 0.73 1.13
10/08/97 1.50 0.92 1.21 1.15 0.77 1.27 0.77 1.11
10/09/97 1.49 0.90 1.22 1.15 0.74 1.28 0.77 1.11
10/10/97 1.49 0.92 1.21 1.15 0.82 1.25 0.77 1.10
10/13/97 1.47 0.88 1.21 1.15 0.82 1.26 0.72 1.15
10/14/97 1.50 0.90 1.21 1.15 0.74 1.27 0.74 1.14
10/15/97 1.49 0.89 1.21 1.15 0.81 1.25 0.74 1.15
10/16/97 1.50 0.91 1.23 1.15 0.73 1.24 0.76 1.14
10/17/97 1.49 0.89 1.24 1.15 0.74 1.28 0.76 1.15
10/20/97 1.48 0.89 1.21 1.15 0.74 1.30 0.71 1.16
10/21/97 1.52 0.92 1.22 1.15 0.73 1.28 0.70 1.17
10/22/97 1.54 0.89 1.21 1.15 0.77 1.27 0.73 1.18
10/23/97 1.49 0.88 1.21 1.15 0.72 1.30 0.70 1.17
10/24/97 1.49 0.88 1.21 1.15 0.72 1.31 0.73 1.16
10/27/97 1.46 0.83 1.21 1.15 0.78 1.28 0.73 1.11
10/28/97 1.48 0.89 1.22 1.15 0.72 1.28 0.69 1.11
10/29/97 1.49 0.87 1.21 1.15 0.79 1.28 0.74 1.12
10/30/97 1.47 0.87 1.20 1.15 0.72 1.28 0.70 1.11
10/31/97 1.52 0.88 1.20 1.12 0.71 1.26 0.73 1.12
11/03/97 1.59 0.88 1.22 1.12 0.71 1.30 0.72 1.14
11/04/97 1.60 0.88 1.22 1.12 0.83 1.27 0.70 1.14
11/05/97 1.60 0.90 1.19 1.12 0.79 1.26 0.72 1.13
11/06/97 1.58 0.89 1.22 1.12 0.84 1.28 0.74 1.13
11/07/97 1.59 0.85 1.21 1.12 0.83 1.28 0.76 1.11
11/10/97 1.62 0.88 1.22 1.12 0.81 1.26 0.75 1.11
11/11/97 1.64 0.90 1.21 1.12 0.80 1.28 0.74 1.11
11/12/97 1.61 0.90 1.22 1.13 0.81 1.28 0.73 1.09
11/13/97 1.64 0.90 1.22 1.13 0.81 1.27 0.75 1.12
11/14/97 1.66 0.93 1.21 1.13 0.79 1.27 0.76 1.15
11/17/97 1.66 0.96 1.21 1.15 0.81 1.28 0.74 1.15
11/18/97 1.65 0.94 1.25 1.15 0.82 1.29 0.75 1.15
11/19/97 1.67 1.01 1.25 1.15 0.79 1.28 0.76 1.15
11/20/97 1.67 0.99 1.21 1.15 0.79 1.28 0.76 1.15
11/21/97 1.67 1.00 1.21 1.11 0.79 1.28 0.75 1.16
11/24/97 1.67 1.00 1.21 1.11 0.82 1.29 0.75 1.15
11/25/97 1.70 0.98 1.21 1.11 0.81 1.29 0.76 1.17
11/26/97 1.72 1.01 1.21 1.11 0.82 1.29 0.76 1.18
11/28/97 1.80 1.02 1.21 1.11 0.78 1.29 0.75 1.20
12/01/97 1.80 1.06 1.21 1.11 0.78 1.29 0.79 1.21
12/02/97 1.81 1.04 1.22 1.16 0.81 1.29 0.77 1.18
12/03/97 1.81 1.04 1.22 1.15 0.78 1.29 0.77 1.21
12/04/97 1.81 1.03 1.26 1.11 0.81 1.28 0.78 1.22
12/05/97 1.80 1.04 1.23 1.11 0.81 1.28 0.78 1.22
12/08/97 1.79 1.03 1.23 1.11 0.81 1.30 0.77 1.20
12/09/97 1.78 1.07 1.26 1.11 0.81 1.27 0.82 1.20
12/10/97 1.74 1.08 1.26 1.11 0.81 1.27 0.81 1.22
12/11/97 1.72 1.07 1.26 1.11 0.79 1.27 0.81 1.21
12/12/97 1.72 1.07 1.22 1.11 0.77 1.27 0.80 1.21
12/15/97 1.68 1.08 1.22 1.16 0.81 1.27 0.80 1.23
12/16/97 1.78 1.08 1.22 1.11 0.80 1.27 0.77 1.24
12/17/97 1.81 1.08 1.26 1.11 0.81 1.28 0.78 1.24
12/18/97 1.75 1.07 1.22 1.11 0.76 1.28 0.78 1.28
12/19/97 1.80 1.04 1.26 1.11 0.76 1.28 0.79 1.25
12/22/97 1.87 1.02 1.22 1.11 0.77 1.28 0.78 1.27
12/23/97 1.87 1.03 1.27 1.16 0.74 1.28 0.78 1.25
12/24/97 1.87 1.03 1.22 1.16 0.76 1.28 0.77 1.25
12/26/97 1.85 1.02 1.23 1.12 0.78 1.28 0.77 1.25
12/29/97 1.90 1.06 1.28 1.12 0.77 1.28 0.77 1.26
12/30/97 1.96 1.04 1.24 1.18 0.77 1.31 0.78 1.29
12/31/97 1.87 1.01 1.22 1.12 0.77 1.31 0.78 1.31
01/02/98 1.83 0.99 1.22 1.12 0.72 1.33 0.80 1.29
01/05/98 1.94 0.99 1.22 1.12 0.75 1.31 0.77 1.58
01/06/98 1.89 0.99 1.22 1.12 0.75 1.29 0.77 1.57
01/07/98 1.77 0.98 1.22 1.12 0.77 1.32 0.75 1.59
01/08/98 1.79 0.98 1.26 1.12 0.78 1.32 0.76 1.58
01/09/98 1.78 0.99 1.29 1.12 0.73 1.31 0.75 1.57
01/12/98 1.78 0.97 1.24 1.12 0.72 1.29 0.76 1.58
01/13/98 1.81 0.95 1.26 1.12 0.72 1.32 0.72 1.60
01/14/98 1.92 0.96 1.23 1.12 0.72 1.31 0.76 1.61
01/15/98 1.91 0.98 1.26 1.12 0.73 1.31 0.72 1.61
01/16/98 1.96 0.97 1.28 1.12 0.71 1.32 0.74 1.62
01/20/98 1.94 0.98 1.28 1.12 0.77 1.32 0.74 1.64
01/21/98 1.92 0.98 1.30 1.11 0.70 1.31 0.73 1.64
01/22/98 1.84 0.99 1.28 1.11 0.76 1.31 0.74 1.68
01/23/98 1.87 0.98 1.28 1.11 0.70 1.32 0.72 1.65
01/26/98 1.87 0.97 1.34 1.11 0.73 1.34 0.69 1.66
01/27/98 1.82 0.96 1.31 1.11 0.72 1.28 0.63 1.71
01/28/98 1.86 0.97 1.36 1.16 0.72 1.31 0.67 1.68
01/29/98 1.82 0.99 1.31 1.11 0.72 1.34 0.73 1.71
01/30/98 1.86 0.98 1.37 1.16 0.70 1.33 0.72 1.70
02/02/98 1.86 0.94 1.37 1.11 0.70 1.33 0.72 1.72
02/03/98 1.87 0.94 1.37 1.11 0.74 1.35 0.72 1.73
02/04/98 1.85 0.93 1.32 1.11 0.74 1.37 0.69 1.72
02/05/98 1.89 0.94 1.33 1.11 0.74 1.37 0.70 1.69
02/06/98 1.93 0.95 1.31 1.16 0.73 1.39 0.72 1.70
02/09/98 1.81 0.96 1.32 1.11 0.73 1.41 0.71 1.70
02/10/98 1.80 0.98 1.34 1.11 0.76 1.39 0.71 1.70
02/11/98 1.83 0.96 1.34 1.11 0.71 1.35 0.68 1.68
02/12/98 1.79 0.96 1.34 1.11 0.76 1.33 0.69 1.68
02/13/98 1.77 0.96 1.37 1.11 0.73 1.35 0.72 1.68
02/17/98 1.64 0.96 1.34 1.11 0.76 1.36 0.69 1.68
02/18/98 1.62 0.99 1.34 1.16 0.78 1.33 0.70 1.70
02/19/98 1.56 0.98 1.34 1.11 0.79 1.34 0.71 1.68
02/20/98 1.58 1.02 1.36 1.11 0.76 1.34 0.69 1.69
02/23/98 1.58 1.04 1.34 1.11 0.79 1.35 0.69 1.67
02/24/98 1.58 1.03 1.34 1.11 0.78 1.32 0.72 1.64
02/25/98 1.61 1.11 1.36 1.11 0.78 1.32 0.72 1.67
02/26/98 1.61 1.11 1.32 1.11 0.80 1.39 0.70 1.67
02/27/98 1.56 1.08 1.37 1.11 0.79 1.39 0.70 1.64
03/02/98 1.62 1.06 1.32 1.11 0.78 1.34 0.69 1.68
03/03/98 1.67 1.06 1.37 1.11 0.79 1.37 0.71 1.68
03/04/98 1.66 1.03 1.32 1.11 0.81 1.35 0.71 1.67
03/05/98 1.62 1.03 1.32 1.11 0.74 1.36 0.70 1.65
03/06/98 1.71 1.06 1.37 1.11 0.79 1.37 0.72 1.71
03/09/98 1.67 1.07 1.32 1.11 0.79 1.35 0.70 1.70
03/10/98 1.71 1.10 1.33 1.17 0.80 1.37 0.71 1.69
03/11/98 1.78 1.13 1.37 1.17 0.76 1.37 0.71 1.72
03/12/98 1.74 1.12 1.36 1.16 0.76 1.39 0.71 1.74
03/13/98 1.71 1.17 1.34 1.16 0.76 1.36 0.70 1.75
03/16/98 1.70 1.15 1.36 1.19 0.78 1.36 0.71 1.77
03/17/98 1.67 1.17 1.35 1.19 0.78 1.36 0.71 1.75
03/18/98 1.67 1.16 1.34 1.19 0.74 1.38 0.71 1.79
03/19/98 1.72 1.13 1.37 1.16 0.77 1.36 0.69 1.80
03/20/98 1.78 1.13 1.34 1.15 0.76 1.38 0.72 1.90
03/23/98 1.77 1.15 1.33 1.16 0.75 1.35 0.72 1.94
03/24/98 1.81 1.17 1.36 1.16 0.76 1.37 0.69 2.00
03/25/98 1.87 1.19 1.33 1.16 0.78 1.35 0.70 1.95
03/26/98 1.92 1.19 1.34 1.16 0.74 1.35 0.71 1.90
03/27/98 1.87 1.20 1.35 1.16 0.77 1.37 0.71 1.89
03/30/98 1.84 1.19 1.35 1.11 0.78 1.37 0.69 1.89
03/31/98 2.02 1.20 1.39 1.16 0.78 1.35 0.69 1.89
04/01/98 2.00 1.21 1.38 1.12 0.77 1.35 0.70 1.88
04/02/98 1.90 1.21 1.39 1.12 0.74 1.36 0.66 1.91
04/03/98 1.90 1.22 1.36 1.12 0.78 1.35 0.67 1.93
04/06/98 1.94 1.19 1.36 1.12 0.76 1.37 0.67 1.92
04/07/98 1.83 1.18 1.36 1.12 0.76 1.36 0.65 1.91
04/08/98 1.80 1.18 1.36 1.16 0.75 1.35 0.65 1.82
04/09/98 1.78 1.20 1.36 1.16 0.73 1.37 0.64 1.84
04/13/98 1.78 1.17 1.36 1.19 0.72 1.36 0.59 1.77
04/14/98 1.84 1.17 1.37 1.19 0.78 1.35 0.64 1.77
04/15/98 1.88 1.17 1.39 1.19 0.77 1.35 0.62 1.77
04/16/98 1.84 1.17 1.39 1.19 0.72 1.36 0.65 1.77
04/17/98 1.85 1.17 1.38 1.19 0.76 1.39 0.64 1.84
04/20/98 1.85 1.17 1.36 1.19 0.74 1.46 0.64 1.81
04/21/98 1.85 1.19 1.36 1.19 0.72 1.50 0.62 1.80
04/22/98 1.82 1.17 1.36 1.19 0.76 1.50 0.64 1.86
04/23/98 1.83 1.13 1.36 1.19 0.73 1.50 0.62 1.83
04/24/98 1.72 1.11 1.36 1.19 0.77 1.56 0.63 1.80
04/27/98 1.66 1.11 1.36 1.16 0.77 1.56 0.63 1.75
04/28/98 1.68 1.10 1.36 1.16 0.74 1.56 0.62 1.77
04/29/98 1.69 1.10 1.38 1.16 0.77 1.61 0.64 1.77
04/30/98 1.69 1.16 1.40 1.16 0.77 1.54 0.61 1.82
05/01/98 1.69 1.17 1.40 1.16 0.76 1.50 0.64 1.85
05/04/98 1.73 1.17 1.41 1.16 0.73 1.50 0.66 1.90
05/05/98 1.61 1.15 1.39 1.16 0.77 1.51 0.67 1.88
05/06/98 1.52 1.15 1.39 1.16 0.75 1.51 0.66 1.88
05/07/98 1.53 1.16 1.41 1.16 0.77 1.51 0.65 1.86
05/08/98 1.52 1.16 1.41 1.16 0.77 1.51 0.63 1.86
05/11/98 1.57 1.14 1.39 1.16 0.77 1.51 0.64 1.70
05/12/98 1.46 1.15 1.39 1.13 0.77 1.54 0.65 1.75
05/13/98 1.51 1.13 1.39 1.16 0.77 1.49 0.66 1.67
05/14/98 1.55 1.13 1.39 1.13 0.78 1.49 0.67 1.63
05/15/98 1.52 1.12 1.39 1.14 0.77 1.54 0.69 1.64
05/18/98 1.45 1.11 1.41 1.14 0.78 1.50 0.68 1.65
05/19/98 1.43 1.13 1.40 1.14 0.78 1.50 0.70 1.64
05/20/98 1.41 1.13 1.40 1.16 0.77 1.50 0.70 1.74
05/21/98 1.40 1.12 1.41 1.16 0.77 1.47 0.69 1.75
05/22/98 1.41 1.12 1.43 1.16 0.77 1.47 0.68 1.72
05/26/98 1.41 1.12 1.40 1.16 0.77 1.47 0.64 1.68
05/27/98 1.41 1.12 1.40 1.16 0.76 1.48 0.64 1.66
05/28/98 1.41 1.12 1.40 1.16 0.77 1.49 0.68 1.69
05/29/98 1.38 1.12 1.38 1.16 0.76 1.47 0.67 1.68
06/01/98 1.37 1.10 1.38 1.16 0.76 1.47 0.65 1.69
06/02/98 1.34 1.10 1.38 1.16 0.77 1.47 0.65 1.72
06/03/98 1.36 1.11 1.38 1.16 0.76 1.51 0.64 1.68
06/04/98 1.44 1.08 1.38 1.16 0.77 1.54 0.67 1.72
06/05/98 1.46 1.10 1.38 1.13 0.76 1.50 0.67 1.78
06/08/98 1.46 1.11 1.38 1.16 0.74 1.49 0.67 1.74
06/09/98 1.46 1.10 1.38 1.16 0.76 1.50 0.67 1.73
06/10/98 1.47 1.08 1.38 1.14 0.76 1.47 0.63 1.72
06/11/98 1.46 1.06 1.38 1.13 0.76 1.47 0.65 1.71
06/12/98 1.47 1.04 1.39 1.16 0.74 1.52 0.66 1.76
06/15/98 1.47 1.07 1.40 1.13 0.72 1.47 0.64 1.70
06/16/98 1.41 1.04 1.38 1.13 0.72 1.50 0.63 1.70
06/17/98 1.44 1.03 1.41 1.16 0.72 1.48 0.68 1.75
06/18/98 1.40 1.03 1.38 1.15 0.72 1.48 0.70 1.72
06/19/98 1.48 1.04 1.38 1.13 0.72 1.49 0.69 1.75
06/22/98 1.50 1.04 1.38 1.13 0.72 1.50 0.69 1.75
06/23/98 1.52 1.03 1.38 1.13 0.72 1.48 0.69 1.80
06/24/98 1.55 1.05 1.38 1.16 0.73 1.50 0.69 1.71
06/25/98 1.56 1.05 1.38 1.13 0.73 1.49 0.70 1.75
06/26/98 1.55 1.04 1.38 1.13 0.76 1.46 0.70 1.77
06/29/98 1.57 1.11 1.38 1.13 0.72 1.49 0.69 1.76
06/30/98 1.63 1.04 1.38 1.13 0.74 1.46 0.68 1.71
07/01/98 1.61 1.04 1.38 1.13 0.73 1.50 0.68 1.75
07/02/98 1.63 1.06 1.41 1.16 0.72 1.47 0.65 1.76
07/06/98 1.64 1.07 1.43 1.16 0.71 1.49 0.62 1.77
07/07/98 1.62 1.03 1.38 1.16 0.70 1.47 0.63 1.75
07/08/98 1.66 1.06 1.38 1.16 0.69 1.50 0.64 1.74
07/09/98 1.69 1.01 1.38 1.14 0.72 1.54 0.63 1.75
07/10/98 1.72 1.01 1.41 1.16 0.68 1.47 0.66 1.78
07/13/98 1.74 0.99 1.38 1.14 0.68 1.49 0.66 1.76
07/14/98 1.73 1.00 1.37 1.18 0.71 1.43 0.65 1.76
07/15/98 1.71 0.97 1.38 1.14 0.72 1.43 0.67 1.75
07/16/98 1.72 0.99 1.39 1.14 0.68 1.49 0.66 1.81
07/17/98 1.74 0.98 1.39 1.14 0.72 1.49 0.66 1.82
07/20/98 1.77 0.98 1.39 1.14 0.68 1.54 0.66 1.83
07/21/98 1.73 0.99 1.38 1.15 0.69 1.54 0.65 1.85
07/22/98 1.76 0.99 1.40 1.14 0.70 1.57 0.63 1.88
07/23/98 1.74 0.97 1.39 1.14 0.68 1.63 0.63 1.85
07/24/98 1.70 1.00 1.38 1.15 0.71 1.58 0.63 1.86
07/27/98 1.68 0.97 1.38 1.14 0.68 1.56 0.63 1.83
07/28/98 1.65 0.98 1.37 1.15 0.70 1.58 0.62 1.82
07/29/98 1.65 0.96 1.36 1.15 0.68 1.60 0.58 1.84
07/30/98 1.65 0.99 1.37 1.15 0.68 1.69 0.57 1.82
07/31/98 1.61 0.97 1.38 1.16 0.71 1.71 0.57 1.79
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
- ---------------------------------- Houlihan Lokey Howard & Zukin Capital --- 23
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
Aliant CFW Comm CT Comm Century Conestoga D & E Comm Hickory Tech
Comm Telephone Enterprises Corp
- ---------------------------------------------------------------------------------------------------------------------
(% in 000, except per share amounts)
MARKET INFORMATION
- ---------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Date of Quarter 31-Mar-98 31-Mar-98 31-Mar-98 31-Mar-98 31-Mar-98 31-Mar-98 31-Mar-98
Fiscal Year End 31-Dec-97 31-Dec-97 31-Dec-97 31-Dec-97 31-Dec-97 31-Dec-97 31-Dec-97
Stock Price as of 07/22/98 $ 29.625 $ 22.031 $129.500 $ 51.500 $ 33.000 $16.500 $42.375
52 Week High Stock Price $ 34.188 $ 27.500 $135.000 $ 52.688 $ 34.000 $20.500 $46.500
52 Week Low Stock Price $ 18.250 $ 17.500 $117.500 $ 23.750 $ 33.000 $16.500 $28.250
Number of Shares
Outstanding 36,203 13,009 2,242 91,552 4,624 7,438 4,543
Market Value of Equity
("MVE") 1,014,414 361,128 293,437 4,714,928 151,165 125,930 184,989
Debt & Preferred Less Cash 77,788 19,826 13,196 2,602,809 41,249 22,669 38,337
Total Invested Capital
("TIC") 1,092,202 380,954 306,633 7,317,737 192,414 148,599 223,326
LATEST TWELVE MONTHS
INCOME STATEMENT
- ---------------------------
Sales $ 293,250 $ 61,779 $ 81,647 $1,074,256 $ 59,161 $ 49,418 $ 79,650
Annual FF Sales Growth 8% 18% 17% 20% 31% 9% 15%
4 Year CAGR Sales 12% 21% 16% 19% NA 52% 10%
Operating Profit $ 91,958 $ 20,473 $ 21,433 $ 349,295 $ 15,639 $ 8,448 $ 21,923
Operating Margin 31% 33% 26% 33% 26% 17% 28%
EBITDA $ 142,511 $ 29,976 $ 31,825 $ 552,659 $ 26,382 $ 17,283 $ 30,516
EBITDA Margin 49% 49% 39% 51% 45% 35% 38%
Annual FY EBITDA Growth 12% 20% 19% 19% 18% 8% 21%
EBIT $ 91,958 $ 20,473 $ 21,433 $ 349,295 $ 15,639 $ 8,448 $ 21,923
EBIT Margin 31% 33% 26% 33% 26% 17% 28%
Net Income (Adjusted) $ 54,194 $ 12,227 $ 12,200 ($43,639) $ 3,997 ($4,868) $ 4,428
Net Income Margin 18% 20% 15% -4% 7% -10% 6%
EPS 1.50 0.94 5.44 (0.48) 0.86 (0.65) 0.97
Proj. Next FY Net Income $ 60,821 $ 10,797 NA $ 204,161 NA NA NA
Proj. Next FY Consensus EPS 1.53 0.70 NA 1.89 NA NA NA
BALANCE SHEET AND RATIOS
- ---------------------------
Total Assets $ 593,070 $146,512 $163,391 $4,708,223 $150,435 $137,290 $116,060
Total Debt 117,000 19,970 12,872 2,610,007 47,000 37,144 41,970
Tangible Book Value 309,746 71,443 106,653 (411,634) 30,956 77,467 25,052
Total Debt / EBITDA 0.8x 0.7x 0.4x 4.7x 1.8x 2.1x 1.4x
Total Debt / MVE 12% 6% 4% 55% 31% 29% 23%
Return on Average Equity 18% 11% 11% -3% 4% -5% 7%
Return on Average Assets 10% 17% 15% -2% 5% -7% 8%
MARKET MULTIPLE ANALYSIS
- ---------------------------
TIC / LTM Sales 3.7x 6.2x 3.8x 6.8x 3.3x 3.0x 2.8x
TIC / LTM EBITDA 7.7x 12.7x 9.6x 13.2x 7.3x 8.6x 7.3x
TIC / LTM EBIT 11.9x 18.6x 14.3x 21.0x 12.3x 17.6x 10.2x
MVE / LTM Net Income 18.7x 29.5x 24.1x NMF 37.8x NMF 41.8x
Price / Consensus Proj.
Next FY EPS 19.4x 31.5x NA 27.2x NA NA NA
MVE / Tangible Book Value 3.3x 5.1x 2.8x NMF 4.9x 1.6x 7.4x
TIC/Access Line (12/31/97) $ 4,001 $ 10,582 $ 3,000 $ 6,098 $ 2,518 $ 2,769 $ 3,771
</TABLE>
- ------------------------------------------------------------------------------
North Mean Median Emerging
Pittsburgh Comm
- ------------------------------------------------------------------------------
MARKET INFORMATION
- ---------------------------
Date of Quarter 31-Mar-98 30-Jun-98
Fiscal Year End 31-Dec-97 31-Dec-97
Stock Price as of 07/22/98 $ 14.875 $8.375
52 Week High Stock Price $ 19.500 $9.000
52 Week Low Stock Price $ 13.500 $6.250
Number of Shares
Outstanding 15,005 10,959
Market Value of Equity
("MVE") 233,328 $ 884,915 $263,382 $ 91,947
Debt & Preferred Less Cash (5,782) 351,261 30,503 168,180
Total Invested Capital
("TIC") 227,546 1,236,176 267,089 260,127
LATEST TWELVE MONTHS
INCOME STATEMENT
- ---------------------------
Sales $ 65,716 $ 220,610 $ 72,683 $ 84,221
Annual FY Sales Growth 10% 16% 18% 7%
4 Year CAGR Sales 11% 20% 16% NA
Operating Profit $ 22,171 $ 68,917 $ 21,678 $ 20,925
Operating Margin 34% 28% 29% 25%
EBITDA $ 33,143 $ 108,037 $ 31,171 $ 39,719
EBITDA Margin 50% 44% 47% 47%
Annual FY EBITDA Growth 13% 16% 18% 7%
EBIT $ 22,171 $ 68,917 $ 21,678 $ 20,925
EBIT Margin 34% 29% 29% 25%
Net Income (Adjusted) $ 463 $ 4,875 $ 4,213 NA
Net Income Margin 1% 7% 6% NA
EPS 0.03 1.08 0.90 NA
Proj. Next FY Net Income NA $ 91,927 $ 60,821 $ 7,119
Proj. Next FY Consensus EPS NA 1.37 1.53 0.52
BALANCE SHEET AND RATIOS
- ---------------------------
Total Assets $128,990 $ 767,996 $148,474 $259,211
Total Debt 27,646 364,201 39,557 172,520
Tangible Book Value 69,807 34,936 70,625 34,893
Total Debt / EBITDA 0.8x 1.6x 1.1x 4.3x
Total Debt / MVE 12% 21% 17% 188%
Return on Average Equity 1% 5% 6% NA
Return on Average Assets 1% 6% 6% NA
MARKET MULTIPLE ANALYSIS
- ---------------------------
TIC / LTM Sales 3.5x 4.1x 3.6x 3.1x
TIC / LTM EBITDA 6.9x 9.2x 8.1x 6.5x
TIC / LTM EBIT 10.3x 14.5x 13.3x 12.4x
MVE / LTM Net Income NMF 30.4x 29.5x NA
Price / Consensus Proj.
Next FY EPS NA 26.0x 27.2x 16.2x
MVE / Tangible Book Value 3.3x 4.0x 3.3x 2.6x
TIC/Access Line (12/31/97) NA $ 4,677 $ 3,771 $ 4,186
<PAGE>
Emerging Communications, Inc.
- --------------------------------------------------------------------------------
Comparable Company Descriptions
- --------------------------------------------------------------------------------
ALIANT COMMUNICATIONS INC.
Aliant Communications Inc. (the "Company"), through subsidiaries, provides local
and long distance telephone service in Nebraska and cellular telecommunications
services in Nebraska and Iowa. The Company also sells telecommunications
products and services and provides telephone answering services. Aliant
Communications Co. (Telco), a wholly owned subsidiary, provides local and
intraLATA interexchange service to approximately 201,000 customers in 22
southeastern counties of Nebraska through 273,008 landline customer access
lines. Telco also provides cellular telecommunications services in the Lincoln,
Nebraska Metropolitan Service Area. Aliant Cellular Inc., wholly owned, provides
cellular telecommunications services in 89 of the 93 counties in Nebraska.
Aliant Systems Inc., wholly owned, sells non-regulated telecommunications
products and services, and toll services within and beyond Telco's local service
territory; and provides telephone answering services. Prairie Communications,
Inc., wholly owned, owns a 50% to interest in Omaha Cellular General
Partnership, which manages a limited partnership that provides cellular
telecommunications services in Douglas and Sarpy Counties in Nebraska and
Pottawattamie County, Iowa.
Aliant Communications
Daily Stock Price and Volume History
Aliant
- ------
Price Volume
----- -------
07/16/97 21.38 82,500
07/17/97 20.88 55,200
07/18/97 21.13 71,300
07/21/97 21.25 51,800
07/22/97 20.88 90,200
07/23/97 18.38 132,500
07/24/97 20.00 112,100
07/25/97 20.50 65,600
07/28/97 20.38 83,700
07/29/97 20.00 16,700
07/30/97 20.00 60,500
07/31/97 20.50 48,000
08/01/97 20.50 28,100
08/04/97 20.50 56,300
08/05/97 21.00 72,400
08/06/97 21.75 124,000
08/07/97 21.56 73,700
08/08/97 21.13 59,100
08/11/97 21.00 154,000
08/12/97 21.00 301,000
08/13/97 21.44 145,200
08/14/97 21.50 48,500
08/15/97 21.75 34,900
08/18/97 21.25 38,100
08/19/97 22.00 102,100
08/20/97 21.88 90,700
08/21/97 22.13 101,300
08/22/97 22.13 74,700
08/25/97 22.38 75,600
08/26/97 22.38 172,200
08/27/97 22.63 205,700
08/28/97 22.19 64,400
08/29/97 22.63 47,300
09/02/97 22.56 46,100
09/03/97 22.75 58,300
09/04/97 22.88 60,500
09/05/97 22.50 61,700
09/08/97 23.44 96,500
09/09/97 23.00 85,700
09/10/97 23.00 34,800
09/11/97 23.50 74,100
09/12/97 23.69 112,700
09/15/97 24.00 24,200
09/16/97 23.63 65,700
09/17/97 23.13 44,000
09/18/97 24.00 51,200
09/19/97 24.63 211,600
09/22/97 24.50 32,000
09/23/97 23.50 58,100
09/24/97 23.50 13,300
09/25/97 22.75 28,100
09/26/97 22.94 15,300
09/29/97 23.38 87,400
09/30/97 24.25 120,300
10/01/97 24.31 59,700
10/02/97 24.69 40,400
10/03/97 24.88 181,600
10/06/97 25.00 40,300
10/07/97 25.00 61,700
10/08/97 25.25 71,300
10/09/97 25.13 27,500
10/10/97 25.13 28,000
10/13/97 24.75 33,900
10/14/97 25.25 75,900
10/15/97 25.13 46,900
10/16/97 25.19 82,700
10/17/97 25.13 41,200
10/20/97 24.88 15,500
10/21/97 25.63 59,400
10/22/97 25.88 112,200
10/23/97 25.00 26,200
10/24/97 25.00 51,700
10/27/97 24.50 124,400
10/28/97 24.88 101,500
10/29/97 25.13 27,800
10/30/97 24.75 14,400
10/31/97 25.63 39,200
11/03/97 26.75 100,800
11/04/97 26.94 114,400
11/05/97 26.88 77,000
11/06/97 26.50 81,500
11/07/97 26.69 40,000
11/10/97 27.25 96,200
11/11/97 27.50 61,100
11/12/97 27.00 31,600
11/13/97 27.63 48,600
11/14/97 27.94 154,800
11/17/97 27.88 139,800
11/18/97 27.75 141,500
11/19/97 28.06 100,300
11/20/97 28.13 211,400
11/21/97 28.00 90,400
11/24/97 28.13 69,000
11/25/97 28.50 142,300
11/26/97 28.88 208,200
11/28/97 30.25 73,300
12/01/97 30.31 179,000
12/02/97 30.50 87,600
12/03/97 30.44 227,500
12/04/97 30.38 164,600
12/05/97 30.25 226,000
12/08/97 30.13 87,900
12/09/97 30.00 19,300
12/10/97 29.19 119,700
12/11/97 28.88 39,400
12/12/97 29.00 42,800
12/15/97 28.25 51,400
12/16/97 30.00 81,100
12/17/97 30.50 49,900
12/18/97 29.38 81,700
12/19/97 30.31 51,100
12/22/97 31.44 133,300
12/23/97 31.38 154,900
12/24/97 31.50 56,100
12/26/97 31.13 4,500
12/29/97 32.00 140,300
12/30/97 32.88 84,100
12/31/97 31.38 83,100
01/02/98 30.75 58,000
01/05/98 32.56 65,000
01/06/98 31.75 133,900
01/07/98 29.75 219,200
01/08/98 30.13 112,600
01/09/98 30.00 286,600
01/12/98 30.00 84,700
01/13/98 30.50 121,300
01/14/98 32.25 224,000
01/15/98 32.19 97,100
01/16/98 33.00 133,200
01/20/98 32.56 148,000
01/21/98 32.25 74,000
01/22/98 31.00 84,200
01/23/98 31.38 56,600
01/26/98 31.38 64,800
01/27/98 30.63 52,400
01/28/98 31.19 139,000
01/29/98 30.63 61,500
01/30/98 31.25 82,400
02/02/98 31.25 30,100
02/03/98 31.4375 46200
02/04/98 31.0625 129100
02/05/98 31.75 29900
02/06/98 32.5 87900
02/09/98 30.4375 113300
02/10/98 30.3125 140600
02/11/98 30.75 30200
02/12/98 30.125 31800
02/13/98 29.75 126700
02/17/98 27.5 361100
02/18/98 27.25 177700
02/19/98 26.1875 186700
02/20/98 26.5 170600
02/23/98 26.5625 191900
02/24/98 26.5 75600
02/25/98 27 107000
02/26/98 27.125 76700
02/27/98 26.25 39400
03/02/98 27.1875 67900
03/03/98 28.125 149600
03/04/98 27.875 198800
03/05/98 27.25 86800
03/06/98 28.75 149600
03/09/98 28.125 18200
03/10/98 28.75 68600
03/11/98 29.9375 72900
03/12/98 29.25 11900
03/13/98 28.75 31200
03/16/98 28.5 194600
03/17/98 28.125 37500
03/18/98 28 67600
03/19/98 29 37200
03/20/98 30 96300
03/23/98 29.75 74400
03/24/98 30.5 54600
03/25/98 31.375 30800
03/26/98 32.25 134100
03/27/98 31.375 117100
03/30/98 31 90300
03/31/98 34 328500
04/01/98 33.625 144100
04/02/98 32 61000
04/03/98 32 61700
04/06/98 32.5625 11100
04/07/98 30.75 45300
04/08/98 30.25 28300
04/09/98 29.875 62400
04/13/98 29.875 19400
04/14/98 31 18200
04/15/98 31.6875 58000
04/16/98 31 10400
04/17/98 31.125 15600
04/20/98 31.125 19500
04/21/98 31.125 28200
04/22/98 30.625 29900
04/23/98 30.75 36700
04/24/98 29 28100
04/27/98 27.875 60600
04/28/98 28.25 158300
04/29/98 28.375 88800
04/30/98 28.375 106200
05/01/98 28.375 35600
05/04/98 29.125 55300
05/05/98 27.125 243800
05/06/98 25.625 209300
05/07/98 25.75 86800
05/08/98 25.5625 81800
05/11/98 26.375 191900
05/12/98 24.5 267100
05/13/98 25.4375 373200
05/14/98 26 105700
05/15/98 25.5 62200
05/18/98 24.375 182900
05/19/98 24 457000
05/20/98 23.625 261500
05/21/98 23.5 176200
05/22/98 23.75 148300
05/26/98 23.6875 127800
05/27/98 23.625 126100
05/28/98 23.625 338500
05/29/98 23.1875 173500
06/01/98 23.0625 134800
06/02/98 22.5 209700
06/03/98 22.875 96900
06/04/98 24.25 58200
06/05/98 24.625 97700
06/08/98 24.5625 228400
06/09/98 24.625 108100
06/10/98 24.6875 117300
06/11/98 24.625 357700
06/12/98 24.6875 354800
06/15/98 24.75 210100
06/16/98 23.6875 300500
06/17/98 24.25 326000
06/18/98 23.5625 72200
06/19/98 24.875 140900
06/22/98 25.1875 30900
06/23/98 25.625 120000
06/24/98 26 67800
06/25/98 26.25 67100
06/26/98 26.125 43800
06/29/98 26.375 53400
06/30/98 27.4375 259800
07/01/98 27 154100
07/02/98 27.4375 99700
07/06/98 27.5625 77700
07/07/98 27.25 86800
07/08/98 27.9375 135800
07/09/98 28.4375 78300
07/10/98 28.875 229200
07/13/98 29.25 66400
07/14/98 29.0625 113100
07/15/98 28.8125 97200
35992 28.9375 101900
- ----------------------------------- Houlihan Lokey Howard & Zukin Capital --- 25
<PAGE>
Emerging Communications, Inc.
- --------------------------------------------------------------------------------
Comparable Company Descriptions
- --------------------------------------------------------------------------------
CFW COMMUNICATIONS CO.
CFW Communications Co. (the "Company") provides local telephone, paging, data
and information services in Waynesboro, Covington and Clifton Forge, Virginia,
and surrounding areas. The Company owns and operates a fiber optic toll network,
provides cellular telephone service, and operates a wireless cable TV system in
Charlottesville, Virginia and nearby areas. The Company is positioned as a
diversified telecommunications provider offering a broad range of integrated
telecommunications solutions for business and residential customers. Renowned
for superior customer service, high quality and value, CFW has been Virginia's
premier telecommunications company for more than 100 years. The Company's
communications service provides a single source solution to meet customer
requirements for video, voice, and data applications. CFW Communications is the
largest independent telephone headquartered in Virginia and the 42nd largest in
the nation. Through Clifton Forge-Waynesboro Telephone Co., CFW provides local
exchange and telephone services in Waynesboro, Covington and Clifton Forge,
Virginia and surrounding areas, serving approximately 36,000 access lines. The
company also owns and operates over 450 miles of fiber optic cable in Western
and Central Virginia. CFW Communications Services Inc. provides a regional,
single point of customer contact for phone systems, paging, voicemail, data,
network access and other competitive products and services. CFW Cable Inc.
operates a wireless cable TV system in Charlottesville, Richmond and the
Shenandoah Valley and a traditional coax system in Alleghany County. CFW
Information Services Inc. provides operator based information services in the
Virgina Maryland. West Virginia and Washington, D.C. region.
CFW Communications
Daily Stock Price and Volume History
[THE FOLLOWING WAS REPRESENTED BY A GRAPH IN THE PRINTED MATERIAL]
CFW
---
Price Volume
----- ------
07/16/97 18.00 5,200
07/17/97 18.00 1,700
07/18/97 18.00 2,600
07/21/97 18.63 2,600
07/22/97 19.00 600
07/23/97 18.00 700
07/24/97 18.00 2,300
07/25/97 18.13 6,500
07/28/97 18.00 13,300
07/29/97 18.00 12,600
07/30/97 18.00 1,400
07/31/97 18.00 22,400
08/01/97 18.75 5,300
08/04/97 18.25 7,400
08/05/97 18.00 5,300
08/06/97 18.00 1,900
08/07/97 18.00 500
08/08/97 18.00 38,300
08/11/97 18.00 22,300
08/12/97 18.00 7,300
08/13/97 17.63 29,700
08/14/97 18.06 3,700
08/15/97 17.63 5,300
08/18/97 18.00 10,900
08/19/97 18.00 1,500
08/20/97 18.00 13,300
08/21/97 18.00 600
08/22/97 17.50 3,400
08/25/97 17.88 12,000
08/26/97 18.50 45,800
08/27/97 19.00 28,300
08/28/97 18.25 16,700
08/29/97 18.50 8,500
09/02/97 18.50 6,000
09/03/97 19.25 1,800
09/04/97 19.00 4,100
09/05/97 18.50 8,900
09/08/97 18.50 18,000
09/09/97 18.69 22,200
09/10/97 18.75 6,100
09/11/97 19.38 13,000
09/12/97 19.50 9,400
09/15/97 19.63 30,200
09/16/97 19.38 11,500
09/17/97 19.50 9,400
09/18/97 20.00 13,400
09/19/97 19.75 4,300
09/22/97 20.00 7,800
09/23/97 19.88 2,300
09/24/97 20.50 31,300
09/25/97 20.50 22,300
09/26/97 22.13 41,800
09/29/97 21.63 13,900
09/30/97 22.13 32,600
10/01/97 21.38 3,900
10/02/97 21.13 7,800
10/03/97 20.88 5,600
10/06/97 20.63 3,400
10/07/97 20.38 14,700
10/08/97 20.50 15,100
10/09/97 20.00 1,600
10/10/97 20.50 6,900
10/13/97 19.50 2,200
10/14/97 20.00 5,100
10/15/97 19.75 4,100
10/16/97 20.25 700
10/17/97 19.75 4,800
10/20/97 19.75 300
10/21/97 20.50 2,900
10/22/97 19.88 2,200
10/23/97 19.50 4,900
10/24/97 19.50 1,000
10/27/97 18.50 8,200
10/28/97 19.75 25,100
10/29/97 19.38 10,700
10/30/97 19.38 4,500
10/31/97 19.50 5,000
11/03/97 19.50 2,700
11/04/97 19.50 200
11/05/97 20.00 8,100
11/06/97 19.88 1,900
11/07/97 19.00 4,700
11/10/97 19.50 30,300
11/11/97 20.00 400
11/12/97 20.13 11,200
11/13/97 20.13 1,000
11/14/97 20.75 2,500
11/17/97 21.38 7,200
11/18/97 21.00 6,100
11/19/97 22.50 18,700
11/20/97 22.00 8,900
11/21/97 22.25 3,200
11/24/97 22.25 23,800
11/25/97 21.88 8,700
11/26/97 22.50 46,900
11/28/97 22.75 5,800
12/01/97 23.63 33,000
12/02/97 23.25 13,700
12/03/97 23.13 10,900
12/04/97 23.00 1,300
12/05/97 23.13 8,300
12/08/97 23.00 8,800
12/09/97 23.75 39,400
12/10/97 24.00 40,500
12/11/97 23.88 13,900
12/12/97 23.88 8,000
12/15/97 24.13 42,800
12/16/97 24.13 10,100
12/17/97 24.00 5,800
12/18/97 23.75 30,400
12/19/97 23.25 6,100
12/22/97 22.75 900
12/23/97 23.00 6,500
12/24/97 23.00 5,700
12/26/97 22.63 2,300
12/29/97 23.63 26,100
12/30/97 23.25 14,000
12/31/97 22.38 19,100
01/02/98 22.00 36,700
01/05/98 21.94 26,200
01/06/98 21.94 41,200
01/07/98 21.75 3,000
01/08/98 21.88 8,700
01/09/98 22.00 2,800
01/12/98 21.50 1,300
01/13/98 21.13 12,400
01/14/98 21.38 6,900
01/15/98 21.81 9,800
01/16/98 21.63 9,100
01/20/98 21.88 6,500
01/21/98 21.88 14,400
01/22/98 22.00 11,100
01/23/98 21.88 3,700
01/26/98 21.63 7,500
01/27/98 21.38 43,600
01/28/98 21.50 16,500
01/29/98 21.94 22,400
01/30/98 21.75 32,800
02/02/98 20.88 12,100
02/03/98 20.875 10,300
02/04/98 20.75 400
02/05/98 21 7,800
02/06/98 21.1875 2,900
02/09/98 21.375 25,200
02/10/98 21.75 18,600
02/11/98 21.375 10,500
02/12/98 21.375 14,900
02/13/98 21.25 17,400
02/17/98 21.40625 22,300
02/18/98 22 35,300
02/19/98 21.75 20,900
02/20/98 22.625 16,000
02/23/98 23.25 15,600
02/24/98 23 4,100
02/25/98 24.75 21,800
02/26/98 24.75 12,300
02/27/98 24 17,200
03/02/98 23.5 2,100
03/03/98 23.625 3,000
03/04/98 23 25,000
03/05/98 23 7,500
03/06/98 23.5 17,800
03/09/98 23.75 6,000
03/10/98 24.5 26,400
03/11/98 25.25 14,500
03/12/98 25 21,300
03/13/98 26 33,100
03/16/98 25.5 7,200
03/17/98 26 19,800
03/18/98 25.875 22,900
03/19/98 25.125 15,900
03/20/98 25.125 14,100
03/23/98 25.5 25,100
03/24/98 26 20,800
03/25/98 26.5 11,700
03/26/98 26.5 6,000
03/27/98 26.625 17,600
03/30/98 26.375 8,000
03/31/98 26.75 27,800
04/01/98 27 27,200
04/02/98 27 28,900
04/03/98 27.125 20,600
04/06/98 26.5 7,600
04/07/98 26.25 11,100
04/08/98 26.25 12,600
04/09/98 26.625 13,000
04/13/98 26.125 2,400
04/14/98 26.125 4,900
04/15/98 26 15,400
04/16/98 26.125 3,600
04/17/98 26 30,300
04/20/98 26 14,600
04/21/98 26.5 11,200
04/22/98 26.0625 19,500
04/23/98 25.25 15,300
04/24/98 24.75 7,400
04/27/98 24.625 16,500
04/28/98 24.5 6,500
04/29/98 24.5 17,500
04/30/98 25.875 37,500
05/01/98 26.125 2,900
05/04/98 26 6,600
05/05/98 25.5 20,500
05/06/98 25.625 5,300
05/07/98 25.75 3,200
05/08/98 25.75 1,000
05/11/98 25.375 23,300
05/12/98 25.5 9,800
05/13/98 25.25 33,900
05/14/98 25.03125 7,900
05/15/98 24.875 13,100
05/18/98 24.75 4,900
05/19/98 25.125 9,100
05/20/98 25.1875 900
05/21/98 24.875 4,500
05/22/98 24.9375 5,100
05/26/98 25 5,300
05/27/98 25 3,400
05/28/98 25 4,100
05/29/98 25 3,800
06/01/98 24.5 4,100
06/02/98 24.5 3,700
06/03/98 24.75 3,900
06/04/98 24 18,300
06/05/98 24.5 5,000
06/08/98 24.75 6,600
06/09/98 24.4375 28,500
06/10/98 24.125 10,200
06/11/98 23.5 2,600
06/12/98 23.125 1,400
06/15/98 23.75 600
06/16/98 23.125 20,600
06/17/98 23 4,500
06/18/98 23 1,400
06/19/98 23.125 7,300
06/22/98 23.25 81,700
06/23/98 23 26,900
06/24/98 23.375 51,000
06/25/98 23.3125 14,500
06/26/98 23.0625 1,700
06/29/98 24.75 4,900
06/30/98 23.25 34,600
07/01/98 23.25 9,000
07/02/98 23.5 12,800
07/06/98 23.75 600
07/07/98 23 9,200
07/08/98 23.5 6,200
07/09/98 22.375 14,900
07/10/98 22.375 5,400
07/13/98 22.125 6,500
07/14/98 22.25 8,600
07/15/98 21.5 37,400
35992 22.03125 50,300
- ---------------------------------- Houlihan Lokey Howard & Zukin Capital --- 26
<PAGE>
Emerging Communications, Inc.
- --------------------------------------------------------------------------------
Comparable Company Descriptions
- --------------------------------------------------------------------------------
CT COMMUNICATIONS, INC.
CT Communications, Inc. (the "Company"), through subsidiaries, provides local
and long distance telephone services to customers in the counties of Cabarrus,
Stanly and Rowan, North Carolina. The Company also provides cellular mobile
telephone service. CTC Long Distance Services, wholly owned, purchases long
distance capacity in bulk from interexchange carriers and resells it to
subscribers on a discounted retail basis. CT Cellular, Inc., wholly owned,
provides cellular mobile telephone service through ownership of a 24.5% interest
in Rural Service Area (RSA) 4/5, comprised of Anson, Lincoln, Montgomery and
Richmond Counties, North Carolina and a 50% interest in RSA 15, comprised of
Cabarrus, Stanly and parts of Iredell and Rowan Counties, North Carolina.
CT Communications
Daily Stock Price and Volume History
[THE FOLLOWING WAS REPRESENTED BY A GRAPH IN THE PRINTED MATERIAL]
CT Comm
-------
Price Volume
07/16/97 123.33 0
07/17/97 123.33 0
07/18/97 123.33 0
07/21/97 123.33 0
07/22/97 123.33 0
07/23/97 123.33 0
07/24/97 123.33 0
07/25/97 123.33 0
07/28/97 123.33 0
07/29/97 114.67 0
07/30/97 114.67 0
07/31/97 114.67 0
08/01/97 114.67 0
08/04/97 114.67 0
08/05/97 114.67 0
08/06/97 114.67 0
08/07/97 114.67 0
08/08/97 114.67 0
08/11/97 114.67 0
08/12/97 115.33 0
08/13/97 123.33 150
08/14/97 123.00 300
08/15/97 123.00 0
08/18/97 123.00 0
08/19/97 123.00 0
08/20/97 123.00 0
08/21/97 123.33 825
08/22/97 123.33 0
08/25/97 123.33 0
08/26/97 123.33 0
08/27/97 123.33 0
08/28/97 123.33 0
08/29/97 123.33 0
09/02/97 123.33 0
09/03/97 123.33 0
09/04/97 130.00 3,100
09/05/97 130.00 0
09/08/97 128.00 100
09/09/97 128.00 100
09/10/97 128.00 350
09/11/97 128.00 0
09/12/97 128.00 0
09/15/97 128.00 0
09/16/97 128.00 0
09/17/97 128.00 0
09/18/97 128.00 0
09/19/97 128.00 0
09/22/97 128.00 0
09/23/97 128.00 0
09/24/97 128.00 300
09/25/97 128.00 0
09/26/97 128.13 200
09/29/97 128.13 0
09/30/97 128.13 0
10/01/97 128.13 0
10/02/97 128.13 0
10/03/97 128.13 0
10/06/97 128.13 0
10/07/97 130.00 3,800
10/08/97 130.00 0
10/09/97 130.00 0
10/10/97 130.00 100
10/13/97 130.00 0
10/14/97 130.13 300
10/15/97 130.13 0
10/16/97 130.13 0
10/17/97 130.13 0
10/20/97 130.13 0
10/21/97 130.13 0
10/22/97 130.13 0
10/23/97 130.13 0
10/24/97 130.13 0
10/27/97 130.13 0
10/28/97 130.13 2,000
10/29/97 130.13 0
10/30/97 130.13 0
10/31/97 127.50 100
11/03/97 127.50 0
11/04/97 127.50 0
11/05/97 127.50 0
11/06/97 127.50 0
11/07/97 127.50 0
11/10/97 127.50 0
11/11/97 127.50 0
11/12/97 128.00 1,650
11/13/97 128.00 0
11/14/97 128.00 0
11/17/97 130.00 100
11/18/97 130.13 700
11/19/97 130.13 0
11/20/97 130.13 0
11/21/97 125.50 100
11/24/97 125.50 0
11/25/97 125.50 0
11/26/97 125.50 0
11/28/97 125.50 0
12/01/97 125.50 0
12/02/97 131.00 200
12/03/97 130.50 100
12/04/97 126.00 0
12/05/97 126.00 0
12/08/97 126.00 0
12/09/97 126.00 0
12/10/97 126.00 0
12/11/97 126.00 0
12/12/97 126.00 0
12/15/97 131.00 5,600
12/16/97 126.00 0
12/17/97 126.00 300
12/18/97 126.00 0
12/19/97 126.00 0
12/22/97 126.00 0
12/23/97 131.50 200
12/24/97 131.00 150
12/26/97 126.50 0
12/29/97 126.50 0
12/30/97 134.00 1,350
12/31/97 126.50 0
01/02/98 126.50 0
01/05/98 126.50 0
01/06/98 126.50 0
01/07/98 126.50 0
01/08/98 126.50 0
01/09/98 126.50 0
01/12/98 126.50 0
01/13/98 126.50 0
01/14/98 126.50 0
01/15/98 126.50 0
01/16/98 126.50 0
01/20/98 126.50 100
01/21/98 126.00 0
01/22/98 126.00 0
01/23/98 126.00 0
01/26/98 126.00 0
01/27/98 126.00 100
01/28/98 131.00 300
01/29/98 126.00 0
01/30/98 131.00 500
02/02/98 126.00 0
02/03/98 126 0
02/04/98 126 0
02/05/98 126 0
02/06/98 131 700
02/09/98 126 0
02/10/98 126 0
02/11/98 126 0
02/12/98 126 0
02/13/98 126 0
02/17/98 126 0
02/18/98 131 450
02/19/98 126 0
02/20/98 126 0
02/23/98 126 0
02/24/98 126 0
02/25/98 126 0
02/26/98 126 0
02/27/98 126 0
03/02/98 126 0
03/03/98 126 0
03/04/98 126 0
03/05/98 126 0
03/06/98 126 0
03/09/98 126 0
03/10/98 133 100
03/11/98 133 0
03/12/98 131 550
03/13/98 131 5450
03/16/98 135 200
03/17/98 135 0
03/18/98 135 0
03/19/98 131 100
03/20/98 130 50
03/23/98 131 100
03/24/98 131 0
03/25/98 131 0
03/26/98 131 0
03/27/98 131 50
03/30/98 126 200
03/31/98 131 100
04/01/98 127 0
04/02/98 127 0
04/03/98 127 150
04/06/98 127 0
04/07/98 127 0
04/08/98 131 850
04/09/98 131 400
04/13/98 135 750
04/14/98 135 0
04/15/98 135 0
04/16/98 135 0
04/17/98 135 0
04/20/98 135 0
04/21/98 135 0
04/22/98 135 0
04/23/98 135 0
04/24/98 135 0
04/27/98 131 900
04/28/98 131 0
04/29/98 131 0
04/30/98 131 0
05/01/98 131 0
05/04/98 131 0
05/05/98 131 0
05/06/98 131 0
05/07/98 131 3100
05/08/98 131 0
05/11/98 131 0
05/12/98 128 150
05/13/98 131 50
05/14/98 128 250
05/15/98 129 200
05/18/98 129 0
05/19/98 129 0
05/20/98 131 200
05/21/98 131 0
05/22/98 131 600
05/26/98 131 0
05/27/98 131 600
05/28/98 131 0
05/29/98 131 0
06/01/98 131 300
06/02/98 131 0
06/03/98 131 0
06/04/98 131 100
06/05/98 128 0
06/08/98 131 300
06/09/98 131 350
06/10/98 129 0
06/11/98 128 0
06/12/98 131 200
06/15/98 128 0
06/16/98 128 0
06/17/98 131 100
06/18/98 130 950
06/19/98 128 50
06/22/98 128 0
06/23/98 128 0
06/24/98 131 200
06/25/98 128 0
06/26/98 128 0
06/29/98 128 0
06/30/98 128 0
07/01/98 128 0
07/02/98 131 300
07/06/98 131 1800
07/07/98 131 300
07/08/98 131 650
07/09/98 129 0
07/10/98 131 150
07/13/98 129 0
07/14/98 134 100
07/15/98 129 0
35992 129 0
- ----------------------------------- Houlihan Lokey Howard & Zukin Capital --- 27
<PAGE>
Emerging Communications, Inc.
- --------------------------------------------------------------------------------
Comparable Company Descriptions
- --------------------------------------------------------------------------------
CENTURY TELEPHONE ENTERPRISES, INC.
Century Telephone Enterprises, Inc. (the "Company"), through subsidiaries,
provides traditional local exchange telephone service mainly in rural, suburban
and small urban areas in 21 states; and provides cellular telephone
communications service. Through its December 1, 1997 acquisition of Pacific
Telecom, Inc. for $1.503 billion, the Company (i) acquired Pacific Telecom,
Inc., on December 1, 1997 for $1.503 billion cash. As a result, the company
acquired over 600,000 telephone access lines in four Midwestern states, seven
Western states and Alaska; (ii) over 88,000 cellular customers in ten markets
and minority equity interests in 12 additional cellular markets; and (iii)
various other wireless, cable television and other communications assets. The
Company's largest customer bases are located in Wisconsin, Louisiana, Michigan,
Ohio, Washington, Alaska, Colorado, Oregon and Montana. The Company also
provides cellular telephone communications service to about 570,000 customers in
21 Metropolitan Statistical Areas (MSAs) and 23 Rural Service Areas (RSAs). The
Company's cellular operations owned about 8.1 million pops (the estimated
population of licensed cellular telephone markets multiplied by the Company's
proportionate equity interest in the licensed operators thereof). At December
31, 1997, the Company also owned minority equity interests in 12 MSAs and 22
RSAs, representing about 2.2 million pops. The company also provides long
distance, operator, cable television and interactive services in certain local
and regional markets, as wall as certain printing and related services.
Subsidiaries also install fiber optic cable in high traffic routes in certain
areas in which its subsidiaries operate and provide alternative routing of
telephone service over fiber optic cable networks in several strategic operating
areas.
Century Telephone
Daily Stock Price and Volume History
Century Tel Enterprises Inc
- ---------------------------
Price Volume
----- ------
07/16/97 23.79 252,000
07/17/97 23.75 351,450
07/18/97 23.75 454,650
07/21/97 23.75 159,450
07/22/97 24.38 368,250
07/23/97 24.13 236,550
07/24/97 24.13 354,300
07/25/97 24.04 153,000
07/28/97 24.29 173,700
07/29/97 24.33 187,650
07/30/97 24.46 258,300
07/31/97 24.50 162,300
08/01/97 24.63 101,700
08/04/97 24.92 114,750
08/05/97 24.83 110,625
08/06/97 24.88 144,450
08/07/97 24.88 130,950
08/08/97 24.42 343,500
08/11/97 25.13 215,550
08/12/97 24.71 184,950
08/13/97 24.71 114,000
08/14/97 24.67 45,900
08/15/97 24.71 62,250
08/18/97 24.50 149,100
08/19/97 24.79 190,500
08/20/97 24.96 128,250
08/21/97 25.00 221,100
08/22/97 24.92 195,450
08/25/97 24.92 449,250
08/26/97 24.67 137,850
08/27/97 24.92 82,800
08/28/97 24.50 188,550
08/29/97 24.21 90,750
09/02/97 25.33 180,600
09/03/97 25.46 106,350
09/04/97 24.71 307,500
09/05/97 25.33 112,050
09/08/97 25.50 123,000
09/09/97 25.71 121,200
09/10/97 25.63 60,900
09/11/97 25.79 323,700
09/12/97 26.46 255,900
09/15/97 26.79 202,050
09/16/97 26.92 395,700
09/17/97 27.08 180,900
09/18/97 26.96 265,950
09/19/97 26.96 325,350
09/22/97 27.42 174,450
09/23/97 27.29 216,900
09/24/97 27.67 120,450
09/25/97 27.79 144,450
09/26/97 27.71 266,250
09/29/97 27.92 69,600
09/30/97 29.33 180,900
10/01/97 29.83 363,300
10/02/97 30.04 417,600
10/03/97 29.63 381,600
10/06/97 29.33 216,000
10/07/97 29.63 178,950
10/08/97 29.29 173,250
10/09/97 29.63 155,850
10/10/97 29.88 231,150
10/13/97 29.79 52,800
10/14/97 29.83 223,650
10/15/97 29.75 363,150
10/16/97 29.75 245,100
10/17/97 29.67 127,800
10/20/97 29.54 127,200
10/21/97 29.50 151,350
10/22/97 29.13 230,400
10/23/97 29.04 312,150
10/24/97 29.33 475,500
10/27/97 27.33 194,700
10/28/97 28.08 307,050
10/29/97 28.21 121,800
10/30/97 28.04 100,500
10/31/97 28.29 146,850
11/03/97 28.75 141,300
11/04/97 28.88 68,700
11/05/97 28.46 65,400
11/06/97 28.58 102,750
11/07/97 28.04 98,250
11/10/97 28.25 100,200
11/11/97 28.08 138,300
11/12/97 27.42 120,750
11/13/97 27.42 231,150
11/14/97 27.79 203,400
11/17/97 28.54 59,550
11/18/97 28.63 171,750
11/19/97 28.83 116,100
11/20/97 29.83 210,750
11/21/97 30.17 393,150
11/24/97 30.04 437,400
11/25/97 30.42 375,150
11/26/97 30.63 184,800
11/28/97 30.71 94,650
12/01/97 31.17 216,600
12/02/97 30.83 180,000
12/03/97 30.58 205,950
12/04/97 31.33 168,750
12/05/97 31.08 131,550
12/08/97 30.83 83,400
12/09/97 30.50 189,450
12/10/97 31.46 163,350
12/11/97 31.17 89,250
12/12/97 31.42 128,100
12/15/97 32.00 170,850
12/16/97 32.67 706,650
12/17/97 32.13 253,050
12/18/97 31.96 230,850
12/19/97 31.96 195,150
12/22/97 32.04 153,450
12/23/97 32.08 714,450
12/24/97 32.42 258,750
12/26/97 32.08 76,650
12/29/97 32.08 178,500
12/30/97 33.54 242,850
12/31/97 33.21 93,150
01/02/98 32.92 179,700
01/05/98 33.54 522,900
01/06/98 34.88 471,900
01/07/98 34.17 361,500
01/08/98 33.88 229,050
01/09/98 33.17 250,200
01/12/98 32.63 326,400
01/13/98 33.29 266,850
01/14/98 33.83 247,800
01/15/98 33.83 346,800
01/16/98 34.33 126,600
01/20/98 34.42 220,800
01/21/98 34.29 214,050
01/22/98 34.33 370,800
01/23/98 34.38 187,050
01/26/98 34.67 175,950
01/27/98 35.04 244,800
01/28/98 34.67 118,350
01/29/98 34.54 501,450
01/30/98 35.17 378,900
02/02/98 35.79 324,750
02/03/98 36.542 516000
02/04/98 38 579900
02/05/98 37.5 441450
02/06/98 37.875 438150
02/09/98 37.417 387300
02/10/98 37.417 366900
02/11/98 37.208 201750
02/12/98 37.333 253050
02/13/98 37.917 478950
02/17/98 38.5 267300
02/18/98 39.667 425400
02/19/98 38.917 794850
02/20/98 38.792 341550
02/23/98 39.167 274050
02/24/98 39.083 238350
02/25/98 39.542 245400
02/26/98 40.583 261900
02/27/98 40.667 224550
03/02/98 40.292 672300
03/03/98 39.958 529500
03/04/98 39 483450
03/05/98 38.5 390150
03/06/98 39.167 373500
03/09/98 39.333 364950
03/10/98 39.292 211350
03/11/98 39.292 267150
03/12/98 40.25 280350
03/13/98 40.667 353400
03/16/98 40.458 247800
03/17/98 40.417 176400
03/18/98 40.5 201450
03/19/98 39.5 288900
03/20/98 39.667 519450
03/23/98 39.708 230250
03/24/98 39.75 207150
03/25/98 39.583 348900
03/26/98 40.083 202650
03/27/98 39.833 226350
03/30/98 39.875 188850
03/31/98 40.75 630450
04/01/98 41.063 314700
04/02/98 42 365800
04/03/98 42.75 337000
04/06/98 42.063 303100
04/07/98 41.688 230400
04/08/98 41.625 232100
04/09/98 42.438 434200
04/13/98 43.313 375200
04/14/98 44.438 504000
04/15/98 44.125 211800
04/16/98 43.938 398500
04/17/98 44.188 136400
04/20/98 45 261500
04/21/98 45 165300
04/22/98 44.563 152500
04/23/98 43.688 168500
04/24/98 43.313 138200
04/27/98 41.5 263900
04/28/98 41.313 315400
04/29/98 41.563 303900
04/30/98 42.563 420600
05/01/98 43.5 209400
05/04/98 43.625 113400
05/05/98 44.313 199300
05/06/98 45.063 430600
05/07/98 44 223700
05/08/98 45.125 134100
05/11/98 45.5 230100
05/12/98 45.688 201000
05/13/98 45.688 151600
05/14/98 46.125 273800
05/15/98 46.125 362800
05/18/98 46.25 232000
05/19/98 47.063 431100
05/20/98 47.063 285500
05/21/98 47.063 295700
05/22/98 46.625 123900
05/26/98 45.563 134200
05/27/98 44 253000
05/28/98 44.438 197900
05/29/98 44.313 144300
06/01/98 45 174300
06/02/98 45.125 182700
06/03/98 44.938 150000
06/04/98 46.125 235700
06/05/98 47.313 175700
06/08/98 49.313 430500
06/09/98 48.25 331200
06/10/98 48.063 325100
06/11/98 47.625 282800
06/12/98 46.938 230200
06/15/98 45 178900
06/16/98 45.188 311600
06/17/98 47.063 273500
06/18/98 46.438 167700
06/19/98 45.438 267300
06/22/98 47.25 180800
06/23/98 47.563 197400
06/24/98 46.688 296100
06/25/98 46.688 145400
06/26/98 47.125 124900
06/29/98 46.813 99000
06/30/98 45.875 143700
07/01/98 46.313 132300
07/02/98 47.813 262200
07/06/98 47.813 196000
07/07/98 48.563 175600
07/08/98 48.875 147200
07/09/98 48.5 239900
07/10/98 48.313 165900
07/13/98 48.875 86400
07/14/98 49 177300
07/15/98 49.063 125500
35992 49.313 223900
- ----------------------------------- Houlihan Lokey Howard & Zukin Capital --- 28
<PAGE>
Emerging Communications, Inc.
- --------------------------------------------------------------------------------
Comparable Company Descriptions
- --------------------------------------------------------------------------------
CONESTOGA ENTERPRISES, INC.
Conestoga Enterprises, Inc. (the "Company"), through subsidiaries, furnishes
communication services, mainly local and toll telephone service, to parts of six
counties in the Commonwealth of Pennsylvania. The Company also resells long
distance service; and provides pager services.
The Company, through wholly owned Conestoga Telephone & Telegraph Co., provides
communication services to an area of approximately 300 square miles which
includes parts of Berks, Chester, Lancaster, and Montgomery counties in
Pennsylvania, and includes a population of approximately 120,400; and, through
wholly owned Buffalo Valley Telephone. The Company serves some 36,500 people in
Union and Northcumberland counties in Pennsylvania. The Company's services are
distributed through its telephone exchanges and system of overhead and
underground wire and cables. The Company also has interests in two joint
ventures which provide cellular telephone services. As of December 31, 1996, the
Company had 72,266 access lines in service, including approximately 21,000 lines
serving business customers.
Conestoga Enterprises
Daily Stock Price and Volume History
Conestoga
- ---------
Price Volume
----- ------
07/16/97 26.19 800
07/17/97 26.13 0
07/18/97 26.19 11,800
07/21/97 26.56 3,100
07/22/97 27.25 2,100
07/23/97 26.75 1,900
07/24/97 26.38 0
07/25/97 26.38 300
07/28/97 27.00 4,000
07/29/97 27.00 0
07/30/97 27.00 0
07/31/97 27.50 200
08/01/97 27.00 0
08/04/97 27.00 0
08/05/97 27.00 700
08/06/97 27.50 700
08/07/97 27.19 4,000
08/08/97 27.19 2,200
08/11/97 27.00 0
08/12/97 27.00 0
08/13/97 27.50 8,300
08/14/97 27.38 1,500
08/15/97 27.50 2,200
08/18/97 27.25 1,000
08/19/97 27.50 1,500
08/20/97 27.25 0
08/21/97 27.50 500
08/22/97 27.25 0
08/25/97 27.25 0
08/26/97 27.25 0
08/27/97 27.50 800
08/28/97 28.00 1,000
08/29/97 28.06 7,200
09/02/97 28.50 3,800
09/03/97 28.00 0
09/04/97 28.50 8,100
09/05/97 28.75 5,800
09/08/97 28.56 3,000
09/09/97 28.50 0
09/10/97 28.75 600
09/11/97 28.50 0
09/12/97 28.50 0
09/15/97 28.50 800
09/16/97 29.00 800
09/17/97 28.50 0
09/18/97 28.50 1,400
09/19/97 28.50 3,200
09/22/97 28.50 10,500
09/23/97 28.50 500
09/24/97 28.50 1,600
09/25/97 28.50 300
09/26/97 28.50 0
09/29/97 28.50 0
09/30/97 29.00 400
10/01/97 28.50 0
10/02/97 28.56 5,700
10/03/97 28.50 200
10/06/97 28.50 0
10/07/97 28.56 5,000
10/08/97 28.50 1,100
10/09/97 28.75 4,800
10/10/97 28.38 0
10/13/97 28.38 200
10/14/97 28.38 100
10/15/97 28.50 1,700
10/16/97 28.88 500
10/17/97 29.13 3,000
10/20/97 28.50 0
10/21/97 28.75 8,700
10/22/97 28.50 1,200
10/23/97 28.50 2,700
10/24/97 28.50 0
10/27/97 28.50 3,200
10/28/97 28.75 900
10/29/97 28.38 700
10/30/97 28.25 0
10/31/97 28.25 0
11/03/97 28.75 200
11/04/97 28.63 200
11/05/97 28.00 3,900
11/06/97 28.56 6,400
11/07/97 28.50 0
11/10/97 28.56 3,600
11/11/97 28.50 100
11/12/97 28.75 1,200
11/13/97 28.56 1,000
11/14/97 28.50 0
11/17/97 28.50 0
11/18/97 29.38 200
11/19/97 29.38 800
11/20/97 28.50 200
11/21/97 28.50 0
11/24/97 28.50 400
11/25/97 28.50 1,700
11/26/97 28.50 0
11/28/97 28.50 0
12/01/97 28.50 200
12/02/97 28.75 400
12/03/97 28.75 600
12/04/97 29.50 6,400
12/05/97 29.00 0
12/08/97 29.00 0
12/09/97 29.63 1,000
12/10/97 29.63 6,800
12/11/97 29.63 400
12/12/97 28.75 0
12/15/97 28.75 6,300
12/16/97 28.75 3,600
12/17/97 29.50 800
12/18/97 28.75 1,000
12/19/97 29.50 1,000
12/22/97 28.75 0
12/23/97 29.75 1,500
12/24/97 28.75 0
12/26/97 28.81 800
12/29/97 30.00 1,500
12/30/97 29.25 0
12/31/97 28.75 0
01/02/98 28.75 100
01/05/98 28.75 0
01/06/98 28.75 200
01/07/98 28.75 200
01/08/98 29.63 1,500
01/09/98 30.25 2,600
01/12/98 29.25 300
01/13/98 29.50 300
01/14/98 29.00 2,400
01/15/98 29.63 5,700
01/16/98 30.13 1,600
01/20/98 30.13 0
01/21/98 30.50 6,300
01/22/98 30.13 0
01/23/98 30.13 0
01/26/98 31.38 300
01/27/98 30.75 1,300
01/28/98 32.00 4,500
01/29/98 30.75 0
01/30/98 32.25 100
02/02/98 32.25 700
02/03/98 32.25 1100
02/04/98 31 1500
02/05/98 31.3125 0
02/06/98 30.75 0
02/09/98 31 2200
02/10/98 31.5 700
02/11/98 31.5 3900
02/12/98 31.5 3600
02/13/98 32.25 200
02/17/98 31.5 0
02/18/98 31.5 100
02/19/98 31.5 200
02/20/98 32 600
02/23/98 31.5 0
02/24/98 31.5 0
02/25/98 32 200
02/26/98 31.09375 17600
02/27/98 32.25 3000
03/02/98 31 500
03/03/98 32.25 3100
03/04/98 31 1000
03/05/98 31 500
03/06/98 32.25 1200
03/09/98 31 100
03/10/98 31.25 8500
03/11/98 32.25 9700
03/12/98 32 2400
03/13/98 31.5 400
03/16/98 31.875 1000
03/17/98 31.625 900
03/18/98 31.375 9400
03/19/98 32.25 100
03/20/98 31.5 300
03/23/98 31.25 300
03/24/98 32 1300
03/25/98 31.25 0
03/26/98 31.375 300
03/27/98 31.75 1800
03/30/98 31.75 1100
03/31/98 32.625 7200
04/01/98 32.5 0
04/02/98 32.625 9200
04/03/98 32 0
04/06/98 32 800
04/07/98 32 0
04/08/98 32 0
04/09/98 32 0
04/13/98 32 300
04/14/98 32.125 3100
04/15/98 32.75 200
04/16/98 32.625 2100
04/17/98 32.375 1300
04/20/98 32 0
04/21/98 32 0
04/22/98 32 700
04/23/98 32 0
04/24/98 32 3100
04/27/98 32 0
04/28/98 32 400
04/29/98 32.3125 3900
04/30/98 33 1900
05/01/98 33 0
05/04/98 33.25 1700
05/05/98 32.75 0
05/06/98 32.75 0
05/07/98 33.125 3200
05/08/98 33.25 1200
05/11/98 32.75 0
05/12/98 32.75 0
05/13/98 32.75 0
05/14/98 32.75 6600
05/15/98 32.75 100
05/18/98 33.125 3700
05/19/98 33 500
05/20/98 33 800
05/21/98 33.125 2000
05/22/98 33.5 1100
05/26/98 33 0
05/27/98 33 2900
05/28/98 32.9375 300
05/29/98 32.5 0
06/01/98 32.5 0
06/02/98 32.5 0
06/03/98 32.5 0
06/04/98 32.5 0
06/05/98 32.5 0
06/08/98 32.5 0
06/09/98 32.5 800
06/10/98 32.5 300
06/11/98 32.5 1900
06/12/98 32.75 200
06/15/98 33 700
06/16/98 32.5 1000
06/17/98 33.25 1000
06/18/98 32.3125 0
06/19/98 32.3125 0
06/22/98 32.3125 200
06/23/98 32.3125 0
06/24/98 32.4375 3400
06/25/98 32.3125 0
06/26/98 32.3125 0
06/29/98 32.3125 0
06/30/98 32.3125 300
07/01/98 32.3125 0
07/02/98 33.25 500
07/06/98 33.625 1500
07/07/98 32.3125 0
07/08/98 32.5 5500
07/09/98 32.375 500
07/10/98 33.125 300
07/13/98 32.4375 3800
07/14/98 32.25 1100
07/15/98 32.375 0
35992 32.625 0
- ----------------------------------- Houlihan Lokey Howard & Zukin Capital --- 29
<PAGE>
Emerging Communications, Inc.
- --------------------------------------------------------------------------------
Comparable Company Descriptions
- --------------------------------------------------------------------------------
D & E COMMUNICATIONS, INC.
D & E Communications, Inc. (the "Company"), through subsidiaries, provides
telecommunications services for local exchange and long distance markets, and
sells related systems equipment to customers in the southcentral Pennsylvania
area; and provides network access services for switching and transporting
telephone calls. Other communications services include computer network design
and installation, directory advertising, and billing and collection services.
Red Rose Communications, Inc., wholly owned, sells, installs and maintains
telecommunications equipment, providing service for approximately 2,400 business
customers in central and eastern Pennsylvania Red Rose also operates a retail
store that specializes in communications equipment such as telephones and
accessories.
D & E Communications
Daily Stock Price and Volume History
D&E Comm
- --------
Price Volume
----- ------
07/16/97 18.50 500
07/17/97 18.25 400
07/18/97 20.00 100
07/21/97 18.00 0
07/22/97 18.00 0
07/23/97 18.00 1,400
07/24/97 20.25 400
07/25/97 19.50 700
07/28/97 20.25 100
07/29/97 18.25 800
07/30/97 18.25 1,300
07/31/97 18.75 200
08/01/97 18.25 0
08/04/97 18.25 100
08/05/97 18.25 0
08/06/97 20.50 100
08/07/97 20.00 200
08/08/97 18.25 0
08/11/97 18.25 0
08/12/97 18.25 0
08/13/97 20.50 1,000
08/14/97 20.00 100
08/15/97 18.25 0
08/18/97 18.25 0
08/19/97 18.25 0
08/20/97 20.00 2,300
08/21/97 20.25 1,200
08/22/97 18.75 2,000
08/25/97 18.25 1,000
08/26/97 18.25 2,000
08/27/97 18.00 0
08/28/97 18.00 0
08/29/97 18.00 0
09/02/97 18.00 0
09/03/97 18.00 300
09/04/97 20.00 200
09/05/97 18.00 1,500
09/08/97 18.00 1,200
09/09/97 17.50 2,000
09/10/97 18.75 400
09/11/97 17.50 0
09/12/97 17.50 0
09/15/97 19.50 100
09/16/97 18.00 200
09/17/97 19.50 400
09/18/97 19.50 2,700
09/19/97 18.50 1,500
09/22/97 19.13 6,600
09/23/97 18.00 1,400
09/24/97 17.63 2,400
09/25/97 18.50 1,100
09/26/97 17.50 0
09/29/97 18.50 400
09/30/97 18.00 2,500
10/01/97 18.63 100
10/02/97 17.25 0
10/03/97 17.25 0
10/06/97 18.88 6,000
10/07/97 18.00 1,200
10/08/97 18.00 6,700
10/09/97 17.50 0
10/10/97 19.25 300
10/13/97 19.25 100
10/14/97 17.38 0
10/15/97 19.00 1,100
10/16/97 17.25 0
10/17/97 17.38 0
10/20/97 17.38 0
10/21/97 17.25 3,300
10/22/97 18.00 600
10/23/97 17.00 2,700
10/24/97 17.00 0
10/27/97 18.25 100
10/28/97 17.00 400
10/29/97 18.50 100
10/30/97 17.00 2,600
10/31/97 16.75 2,000
11/03/97 16.69 2,500
11/04/97 19.50 17,700
11/05/97 18.50 13,600
11/06/97 19.75 1,000
11/07/97 19.50 2,100
11/10/97 19.00 1,800
11/11/97 18.75 2,400
11/12/97 19.00 200
11/13/97 19.00 4,100
11/14/97 18.63 0
11/17/97 19.00 700
11/18/97 19.25 500
11/19/97 18.50 800
11/20/97 18.63 200
11/21/97 18.63 600
11/24/97 19.25 500
11/25/97 19.00 5,600
11/26/97 19.25 500
11/28/97 18.38 0
12/01/97 18.38 0
12/02/97 19.13 400
12/03/97 18.38 0
12/04/97 19.13 2,600
12/05/97 19.00 3,600
12/08/97 19.13 9,200
12/09/97 19.00 1,000
12/10/97 19.13 400
12/11/97 18.50 3,500
12/12/97 18.13 1,700
12/15/97 19.00 400
12/16/97 18.88 800
12/17/97 19.00 200
12/18/97 17.88 0
12/19/97 17.88 4,100
12/22/97 18.00 1,100
12/23/97 17.50 900
12/24/97 17.75 1,200
12/26/97 18.38 1,800
12/29/97 18.13 2,500
12/30/97 18.13 700
12/31/97 18.13 300
01/02/98 17.00 0
01/05/98 17.63 1,000
01/06/98 17.63 9,600
01/07/98 18.00 1,000
01/08/98 18.25 1,000
01/09/98 17.25 0
01/12/98 17.00 2,600
01/13/98 17.00 3,100
01/14/98 17.00 800
01/15/98 17.19 5,600
01/16/98 16.75 3,500
01/20/98 18.00 100
01/21/98 16.50 500
01/22/98 17.75 200
01/23/98 16.50 1,100
01/26/98 17.25 100
01/27/98 17.00 6,400
01/28/98 17.00 600
01/29/98 17.00 4,200
01/30/98 16.50 0
02/02/98 16.50 0
02/03/98 17.5 400
02/04/98 17.5 100
02/05/98 17.5 900
02/06/98 17.25 5500
02/09/98 17.25 3100
02/10/98 17.75 1000
02/11/98 16.75 0
02/12/98 17.75 1400
02/13/98 17.25 1700
02/17/98 17.75 4300
02/18/98 18.25 25400
02/19/98 18.5 2500
02/20/98 17.875 0
02/23/98 18.625 2600
02/24/98 18.25 1200
02/25/98 18.25 0
02/26/98 18.75 5200
02/27/98 18.5 3600
03/02/98 18.25 0
03/03/98 18.5 4700
03/04/98 19 13600
03/05/98 17.5 3400
03/06/98 18.5 3100
03/09/98 18.5 3100
03/10/98 18.75 2800
03/11/98 17.75 3100
03/12/98 17.75 800
03/13/98 17.75 0
03/16/98 18.25 300
03/17/98 18.25 800
03/18/98 17.5 0
03/19/98 18 100
03/20/98 17.75 0
03/23/98 17.625 500
03/24/98 17.75 600
03/25/98 18.25 3200
03/26/98 17.5 1800
03/27/98 18 600
03/30/98 18.25 700
03/31/98 18.25 1200
04/01/98 18 1400
04/02/98 17.5 2200
04/03/98 18.25 600
04/06/98 17.75 3400
04/07/98 17.75 1000
04/08/98 17.625 1800
04/09/98 17.25 500
04/13/98 17 500
04/14/98 18.25 700
04/15/98 18 100
04/16/98 17 800
04/17/98 17.875 3500
04/20/98 17.5 2400
04/21/98 17 400
04/22/98 17.75 1000
04/23/98 17.25 800
04/24/98 18.125 3300
04/27/98 18.125 1300
04/28/98 17.5 0
04/29/98 18 100
04/30/98 18 3100
05/01/98 17.75 800
05/04/98 17.25 1200
05/05/98 18 800
05/06/98 17.625 0
05/07/98 18 3400
05/08/98 18 1500
05/11/98 18 800
05/12/98 18 700
05/13/98 18 2500
05/14/98 18.25 700
05/15/98 18 0
05/18/98 18.25 900
05/19/98 18.25 300
05/20/98 18 200
05/21/98 18 0
05/22/98 18 1800
05/26/98 18 1400
05/27/98 17.75 0
05/28/98 18 600
05/29/98 17.75 0
06/01/98 17.75 300
06/02/98 18 2000
06/03/98 17.75 0
06/04/98 18 3600
06/05/98 17.75 0
06/08/98 17.5 2500
06/09/98 17.75 500
06/10/98 17.75 200
06/11/98 17.75 900
06/12/98 17.5 700
06/15/98 17 0
06/16/98 17 2300
06/17/98 17 800
06/18/98 17 0
06/19/98 17 600
06/22/98 17 1300
06/23/98 16.875 0
06/24/98 17.25 0
06/25/98 17.25 1500
06/26/98 17.75 200
06/29/98 16.875 700
06/30/98 17.5 2300
07/01/98 17.125 1500
07/02/98 16.875 500
07/06/98 16.75 13100
07/07/98 16.5 10000
07/08/98 16.25 500
07/09/98 17 400
07/10/98 16 0
07/13/98 16 200
07/14/98 16.75 1100
07/15/98 17 100
35992 16 0
- ----------------------------------- Houlihan Lokey Howard & Zukin Capital --- 30
<PAGE>
Emerging Communications, Inc.
- --------------------------------------------------------------------------------
Comparable Company Descriptions
- --------------------------------------------------------------------------------
HICKORY TECH CORP.
Hickory Tech Corp. (the "Company") provides telephone and cable television
services in Minnesota; billing and data processing services; and sells, leases
and services telephone equipment. The Company operates though the following
business segments: Telephone Segment provides local telephone service and
interexchange network services in south central Minnesota, specifically Mankato
population 42,000) and eleven rural communities surrounding Mankato. In
addition, the Company also provides local service for seven communities of the
Amana Colonies in east central Iowa. The total number of lines served in 1996
was 44,583. In addition, this segment owns and operates two cable television
franchises in the Mankato, Minnesota area and has minority interests in a rural
cellular partnership. The Billing & Data Services Segment provides data
processing service to local telephone companies, interexchange long distance
companies and enhanced services providers throughout the United States. The
Equipment Sales Segment sells and services telecommunications equipment in the
Minneapolis/St. Paul metropolitan area and southern Minnesota. It primarily
installs and maintains Nortel PBX and key system equipment and integrated
software. The Telecommunications Product Development Segment designs, assembles
and distributes unique telecommunications components for business telephone
systems throughout North America, the United Kingdom and the Pacific Rim.
Hickory Tech Corporation
Daily Stock Price and Volume History
Hickory Tech
- ------------
Price Volume
----- ------
07/16/97 9.33 17,400
07/18/97 9.50 0
07/21/97 9.50 3,300
07/22/97 9.50 900
07/23/97 9.50 4,500
07/24/97 9.88 31,500
07/25/97 9.71 7,800
07/28/97 9.63 2,100
07/29/97 9.50 0
07/30/97 9.71 4,800
07/31/97 10.17 9,300
08/01/97 9.67 3,600
08/04/97 9.92 1,500
08/05/97 9.92 5,100
08/06/97 9.67 2,400
08/07/97 9.63 2,400
08/08/97 9.63 5,100
08/11/97 9.75 9,300
08/12/97 9.67 4,500
08/13/97 9.75 4,500
08/14/97 9.50 0
08/15/97 9.58 300
08/18/97 9.96 11,100
08/19/97 9.58 32,700
08/20/97 10.00 4,500
08/21/97 9.96 300
08/22/97 9.58 0
08/25/97 9.58 1,800
08/26/97 9.58 0
08/27/97 9.79 2,100
08/28/97 9.71 7,200
08/29/97 9.58 0
09/02/97 9.58 1,500
09/03/97 9.58 600
09/04/97 9.75 9,000
09/05/97 9.58 3,000
09/08/97 9.71 20,100
09/09/97 9.83 3,000
09/10/97 9.67 0
09/11/97 9.67 1,200
09/12/97 9.79 6,300
09/15/97 10.08 59,400
09/16/97 10.33 5,700
09/17/97 10.29 27,000
09/18/97 10.42 60,300
09/19/97 10.92 42,600
09/22/97 10.71 12,000
09/23/97 10.75 35,700
09/24/97 10.50 0
09/25/97 10.58 14,700
09/26/97 10.67 12,900
09/29/97 10.63 9,600
09/30/97 10.83 6,900
10/01/97 10.96 2,400
10/02/97 10.96 600
10/03/97 11.08 16,800
10/06/97 11.33 17,700
10/07/97 11.33 14,100
10/08/97 11.50 17,400
10/09/97 11.58 6,600
10/10/97 11.33 1,500
10/13/97 11.46 5,700
10/14/97 11.50 43,200
10/15/97 11.33 4,800
10/16/97 11.29 23,700
10/17/97 11.67 8,400
10/20/97 11.83 1,800
10/21/97 11.67 7,800
10/22/97 11.50 600
10/23/97 11.83 17,400
10/24/97 11.88 5,400
10/27/97 11.67 19,800
10/28/97 11.67 30,600
10/29/97 11.58 4,500
10/30/97 11.67 3,600
10/31/97 11.42 25,500
11/03/97 11.79 900
11/04/97 11.50 11,700
11/05/97 11.42 3,600
11/06/97 11.63 2,700
11/07/97 11.67 7,800
11/10/97 11.42 0
11/11/97 11.63 1,500
11/12/97 11.58 0
11/13/97 11.54 18,600
11/14/97 11.50 0
11/17/97 11.67 1,500
11/18/97 11.71 24,000
11/19/97 11.67 0
11/20/97 11.67 600
11/21/97 11.67 0
11/24/97 11.75 6,300
11/25/97 11.75 0
11/26/97 11.75 0
11/28/97 11.75 6,900
12/01/97 11.75 6,900
12/02/97 11.75 0
12/03/97 11.71 8,700
12/04/97 11.58 1,800
12/05/97 11.58 0
12/08/97 11.83 7,200
12/09/97 11.50 0
12/10/97 11.50 6,600
12/11/97 11.50 0
12/12/97 11.50 900
12/15/97 11.50 1,200
12/16/97 11.50 2,400
12/17/97 11.63 6,300
12/18/97 11.58 300
12/19/97 11.58 3,900
12/22/97 11.63 8,700
12/23/97 11.58 1,500
12/24/97 11.58 0
12/26/97 11.58 5,700
12/29/97 11.58 4,800
12/30/97 11.88 2,700
12/31/97 11.92 11,700
01/02/98 12.04 15,300
01/05/98 11.92 8,700
01/06/98 11.71 3,900
01/07/98 12.00 16,200
01/08/98 12.00 27,300
01/09/98 11.92 48,600
01/12/98 11.75 21,900
01/13/98 12.00 5,400
01/14/98 11.88 1,200
01/15/98 11.88 2,400
01/16/98 12.00 900
01/20/98 12.00 7,500
01/21/98 11.88 5,700
01/22/98 11.92 31,200
01/23/98 12.00 1,200
01/26/98 12.17 2,100
01/27/98 11.67 8,400
01/28/98 11.92 2,400
01/29/98 12.17 3,300
01/30/98 12.04 2,100
02/02/98 12.08 18,600
02/03/98 12.25 42900
02/04/98 12.41666698 17100
02/05/98 12.41666698 13500
02/06/98 12.58333397 6600
02/09/98 12.83333397 9600
02/10/98 12.58333397 2100
02/11/98 12.29166698 9900
02/12/98 12.08333397 54000
02/13/98 12.25 1200
02/17/98 12.33333397 1200
02/18/98 12.08333397 1200
02/19/98 12.16666698 2400
02/20/98 12.16666698 7800
02/23/98 12.25 600
02/24/98 12 8100
02/25/98 12 109500
02/26/98 12.58333397 6300
02/27/98 12.58333397 1500
03/02/98 12.16666698 0
03/03/98 12.41666698 1200
03/04/98 12.25 5400
03/05/98 12.33333397 7500
03/06/98 12.41666698 1200
03/09/98 12.25 300
03/10/98 12.41666698 1200
03/11/98 12.41666698 600
03/12/98 12.60416698 0
03/13/98 12.375 600
03/16/98 12.33333397 15600
03/17/98 12.33333397 4200
03/18/98 12.5 600
03/19/98 12.33333397 12900
03/20/98 12.5 7200
03/23/98 12.25 3600
03/24/98 12.41666698 9000
03/25/98 12.25 5700
03/26/98 12.25 4800
03/27/98 12.45833397 900
03/30/98 12.45833397 3600
03/31/98 12.25 0
04/01/98 12.25 900
04/02/98 12.39583397 3600
04/03/98 12.25 0
04/06/98 12.41666698 1200
04/07/98 12.33333397 19800
04/08/98 12.25 0
04/09/98 12.41666698 2700
04/13/98 12.33333397 9300
04/14/98 12.29166698 900
04/15/98 12.25 300
04/16/98 12.33333397 2100
04/17/98 12.66666698 3300
04/20/98 13.25 21900
04/21/98 13.66666698 4500
04/22/98 13.66666698 12000
04/23/98 13.66666698 102900
04/24/98 14.16666698 13500
04/27/98 14.16666698 7500
04/28/98 14.16666698 0
04/29/98 14.66666698 7200
04/30/98 14 3900
05/01/98 13.66666698 600
05/04/98 13.66666698 600
05/05/98 13.75 600
05/06/98 13.75 0
05/07/98 13.75 0
05/08/98 13.75 600
05/11/98 13.75 0
05/12/98 14 10500
05/13/98 13.5 0
05/14/98 13.5 3600
05/15/98 14 6000
05/18/98 13.66666698 900
05/19/98 13.66666698 0
05/20/98 13.66666698 5400
05/21/98 13.33333397 7200
05/22/98 13.33333397 6300
05/26/98 13.33333397 1200
05/27/98 13.41666698 3900
05/28/98 13.54166698 8400
05/29/98 13.33333397 0
06/01/98 13.33333397 0
06/02/98 13.33333397 1200
06/03/98 13.72916698 3900
06/04/98 14 1200
06/05/98 13.66666698 2400
06/08/98 13.5 3000
06/09/98 13.66666698 12300
06/10/98 13.33333397 8400
06/11/98 13.33333397 0
06/12/98 13.83333397 3600
06/15/98 13.33333397 0
06/16/98 13.625 1800
06/17/98 13.41666698 3900
06/18/98 13.41666698 900
06/19/98 13.54166698 3300
06/22/98 13.625 2400
06/23/98 13.41666698 300
06/24/98 13.66666698 6900
06/25/98 13.5 900
06/26/98 13.25 6000
06/29/98 13.5 7500
06/30/98 13.25 2100
07/01/98 13.66666698 600
07/02/98 13.33333397 0
07/06/98 13.5 1200
07/07/98 13.33333397 900
07/08/98 13.66666698 7500
07/09/98 14 3600
07/10/98 13.33333397 2700
07/13/98 13.5 5100
07/14/98 13 0
07/15/98 13 5700
35992 13.5 900
- ----------------------------------- Houlihan Lokey Howard & Zukin Capital --- 31
<PAGE>
Emerging Communications, Inc.
- --------------------------------------------------------------------------------
Comparable Company Descriptions
- --------------------------------------------------------------------------------
NORTH PITTSBURGH SYSTEMS, INC.
North Pittsburgh Systems, Inc. (the "Company"), through subsidiaries, provides
telecommunication services to customers in western Pennsylvania; provides
facilities for special circuits (alarms, data transmission, etc.), mobile
telephone and other services; and receives revenue from the sale of advertising
space in telephone directories. The Company provides telecommunication services
to customers generally located within Allegheny, Armstrong, Butler, and
Westmoreland Counties in western Pennsylvania servicing approximately 61,500
customers at January 31, 1997. Telephone service to areas outside the Company's
franchised telephone service territory is furnished through switched and special
access connections with Bell Atlantic-Pennsylvania, Inc., other independent
telephone companies, various Interexchange Carriers and resellers.
North Pittsburgh Systems
Daily Stock Price and Volume History
----------------------------------
North Pitts
- -----------
Price Volume
----- ------
07/16/97 18.19 11,400
07/17/97 18.00 3,900
07/18/97 17.50 1,800
07/21/97 17.50 1,800
07/22/97 17.50 5,200
07/23/97 17.50 4,300
07/24/97 18.50 4,600
07/25/97 18.38 400
07/28/97 18.00 2,400
07/29/97 18.25 1,000
07/30/97 17.75 700
07/31/97 18.25 3,000
08/01/97 18.00 2,100
08/04/97 18.00 4,000
08/05/97 18.00 12,100
08/06/97 17.25 4,600
08/07/97 18.25 2,800
08/08/97 17.50 6,100
08/11/97 17.38 3,000
08/12/97 16.88 1,800
08/13/97 16.25 4,300
08/14/97 17.50 200
08/15/97 16.00 1,200
08/18/97 16.00 5,300
08/19/97 15.50 0
08/20/97 16.00 2,100
08/21/97 16.00 3,700
08/22/97 16.00 1,000
08/25/97 16.75 500
08/26/97 15.25 0
08/27/97 15.50 500
08/28/97 16.75 3,600
08/29/97 16.75 1,100
09/02/97 15.50 5,400
09/03/97 17.13 12,200
09/04/97 17.25 3,100
09/05/97 16.50 3,000
09/08/97 16.75 3,000
09/09/97 16.50 0
09/10/97 16.75 700
09/11/97 16.50 1,300
09/12/97 16.25 0
09/15/97 17.00 100
09/16/97 17.25 1,000
09/17/97 17.00 2,500
09/18/97 16.25 0
09/19/97 16.50 4,900
09/22/97 16.75 700
09/23/97 17.50 3,100
09/24/97 16.75 900
09/25/97 17.50 4,800
09/26/97 17.00 2,000
09/29/97 17.00 1,500
09/30/97 17.50 3,000
10/01/97 18.38 6,300
10/02/97 18.00 3,000
10/03/97 17.75 6,900
10/06/97 17.00 2,600
10/07/97 17.25 4,000
10/08/97 18.00 10,100
10/09/97 18.00 2,200
10/10/97 18.00 3,900
10/13/97 17.00 2,900
10/14/97 17.50 5,800
10/15/97 17.50 200
10/16/97 17.75 13,700
10/17/97 17.75 8,000
10/20/97 16.75 7,000
10/21/97 16.50 4,400
10/22/97 17.25 4,600
10/23/97 16.50 1,200
10/24/97 17.13 100
10/27/97 17.13 2,700
10/28/97 16.25 1,400
10/29/97 17.38 7,800
10/30/97 16.50 5,500
10/31/97 17.13 4,000
11/03/97 16.88 400
11/04/97 16.50 1,800
11/05/97 17.00 4,400
11/06/97 17.50 5,400
11/07/97 17.75 4,000
11/10/97 17.69 6,300
11/11/97 17.31 12,800
11/12/97 17.19 4,800
11/13/97 17.63 3,100
11/14/97 17.88 4,100
11/17/97 17.38 1,500
11/18/97 17.63 4,200
11/19/97 17.88 2,500
11/20/97 17.75 11,100
11/21/97 17.63 3,600
11/24/97 17.56 12,700
11/25/97 17.88 1,300
11/26/97 17.75 13,400
11/28/97 17.56 300
12/01/97 18.50 21,100
12/02/97 18.13 33,600
12/03/97 18.00 14,900
12/04/97 18.25 900
12/05/97 18.25 1,400
12/08/97 18.06 100
12/09/97 19.38 21,900
12/10/97 19.00 7,900
12/11/97 19.00 2,200
12/12/97 18.88 3,100
12/15/97 18.75 5,700
12/16/97 18.19 3,700
12/17/97 18.25 600
12/18/97 18.25 6,200
12/19/97 18.50 6,300
12/22/97 18.25 8,400
12/23/97 18.44 4,500
12/24/97 18.19 200
12/26/97 18.13 2,000
12/29/97 18.16 5,300
12/30/97 18.31 3,500
12/31/97 18.31 1,600
01/02/98 18.75 1,700
01/05/98 18.13 4,500
01/06/98 18.13 2,900
01/07/98 17.63 1,000
01/08/98 17.75 1,100
01/09/98 17.63 2,900
01/12/98 17.94 1,400
01/13/98 17.00 4,600
01/14/98 17.75 300
01/15/98 17.00 1,300
01/16/98 17.31 6,000
01/20/98 17.50 2,700
01/21/98 17.13 1,000
01/22/98 17.50 1,300
01/23/98 16.81 4,600
01/26/98 16.25 6,300
01/27/98 14.88 38,400
01/28/98 15.75 5,200
01/29/98 17.25 25,600
01/30/98 17.00 9,700
02/02/98 16.81 5,600
02/03/98 17 3800
02/04/98 16.25 800
02/05/98 16.5 1900
02/06/98 17 2100
02/09/98 16.75 7200
02/10/98 16.625 1200
02/11/98 16 6600
02/12/98 16.25 5700
02/13/98 17 700
02/17/98 16.25 700
02/18/98 16.5 10300
02/19/98 16.75 4000
02/20/98 16.25 4100
02/23/98 16.125 4600
02/24/98 17 2100
02/25/98 17 1200
02/26/98 16.375 5800
02/27/98 16.5 2700
03/02/98 16.125 2200
03/03/98 16.75 9400
03/04/98 16.75 5100
03/05/98 16.34375 8000
03/06/98 17 16300
03/09/98 16.5 7300
03/10/98 16.625 5500
03/11/98 16.6875 3700
03/12/98 16.625 5400
03/13/98 16.5 9800
03/16/98 16.6875 5600
03/17/98 16.625 9200
03/18/98 16.75 5700
03/19/98 16.1875 9000
03/20/98 17 5000
03/23/98 17 8600
03/24/98 16.25 4400
03/25/98 16.5 6500
03/26/98 16.75 1500
03/27/98 16.75 4100
03/30/98 16.25 1800
03/31/98 16.125 19700
04/01/98 16.5 13700
04/02/98 15.5 14300
04/03/98 15.75 700
04/06/98 15.75 500
04/07/98 15.25 20700
04/08/98 15.25 9700
04/09/98 15.125 1900
04/13/98 13.875 63500
04/14/98 15 24100
04/15/98 14.625 5200
04/16/98 15.25 12600
04/17/98 15 4900
04/20/98 15 9300
04/21/98 14.625 4600
04/22/98 15.125 500
04/23/98 14.59375 5600
04/24/98 14.8125 9700
04/27/98 14.75 9500
04/28/98 14.5 15600
04/29/98 15.125 17400
04/30/98 14.25 19700
05/01/98 15 10500
05/04/98 15.5 400
05/05/98 15.75 11800
05/06/98 15.625 17500
05/07/98 15.1875 14600
05/08/98 14.875 19600
05/11/98 15.0625 24600
05/12/98 15.25 8300
05/13/98 15.625 13600
05/14/98 15.75 15700
05/15/98 16.3125 9700
05/18/98 16.09375 7000
05/19/98 16.5 3400
05/20/98 16.5 7000
05/21/98 16.125 3200
05/22/98 16 2600
05/26/98 15.125 5300
05/27/98 15 11900
05/28/98 15.875 5100
05/29/98 15.75 7500
06/01/98 15.25 3400
06/02/98 15.1875 3600
06/03/98 15.125 11000
06/04/98 15.75 2000
06/05/98 15.75 3000
06/08/98 15.6875 9500
06/09/98 15.6875 4000
06/10/98 14.6875 26800
06/11/98 15.25 4100
06/12/98 15.5 3500
06/15/98 15 8300
06/16/98 14.875 6700
06/17/98 16 3000
06/18/98 16.5 13000
06/19/98 16.25 19500
06/22/98 16.25 3900
06/23/98 16.25 3700
06/24/98 16.25 1200
06/25/98 16.375 6500
06/26/98 16.5 3400
06/29/98 16.125 1000
06/30/98 15.9375 8800
07/01/98 16 17900
07/02/98 15.25 2000
07/06/98 14.625 11300
07/07/98 14.75 6600
07/08/98 15.125 12400
07/09/98 14.75 900
07/10/98 15.5 1300
07/13/98 15.5 3600
07/14/98 15.25 2600
07/15/98 15.75 1100
35992 15.625 0
- ----------------------------------- Houlihan Lokey Howard & Zukin Capital --- 32
<PAGE>
EXHIBIT (b)(3)
[GRAPHIC]
PRESENTATION TO THE
BOARD OF DIRECTORS OF
EMERGING COMMUNICATIONS, INC.
- --------------------------------------------------------------------------------
AUGUST 13, 1998
HOULIHAN LOKEY HOWARD & ZUKIN CAPITAL
31 West 52nd Street, 11th Floor
New York, NY 10019
(212) 582-5000 -- http://www.hlhz.com
New York -- Los Angeles -- Chicago -- San Francisco -- Washington, D.C. --
Minneapolis -- Dallas -- Atlanta -- Toronto
<PAGE>
Emerging Communications, Inc.
- --------------------------------------------------------------------------------
Table of Contents
Section
-------
Introduction.................................................. A
Timeline of Significant Events................................ B
Valuation Summary of Proposed Offer........................... C
Valuation Parameters of Emerging Communications............... D
Comparison of Company Projections............................. E
Relative Volume Analysis...................................... F
Supporting Documents.......................................... G
- --------------------------------------------------------------------------------
Houlihan Lokey Howard & Zukin Capital
<PAGE>
- --------------------------------------------------------------------------------
INTRODUCTION
- --------------------------------------------------------------------------------
Emerging Communications, Inc.
- --------------------------------------------------------------------------------
Introduction
- --------------------------------------------------------------------------------
SCOPE OF ENGAGEMENT
Houlihan Lokey Howard & Zukin Capital has been retained by the Special Committee
of the Board of Directors of Emerging Communications, Inc. ("EmCom" or the
"Company") to provide an opinion as to whether the consideration received by the
public common stockholders of EmCom in the proposed acquisition of the Company
(the "Transaction") by Innovative Communications Company LLC ("ICC") is fair
from a financial point of view.
SUMMARY DESCRIPTION OF THE TRANSACTION
On August 10, 1998, Mr. Jeffery Prosser and the Special Committee to the Board
of Directors negotiated a purchase price of $10.25 per share in cash for the
common stock of EmCom. Previously, on May 29, 1998, the Company announced that
it had received a proposal from Mr. Prosser for the acquisition of the Company
pursuant to which the public shareholders of the Company would receive $9.125
per share in cash.
Each EmCom shareholder will be entitled to receive $10.25 in cash for each EmCom
share.
DUE DILIGENCE COMPLETED
In connection with our analysis, we have made such reviews, analyses and
inquiries as we have deemed necessary and appropriate under the circumstances.
Among other things, we have:
1. reviewed the publicly available financial information of the Company
since the split-off of the Company from Atlantic Tele-Network, Inc.
("ATNI"), including Annual Reports on Form 10-K of the Company for the
fiscal year ended December 31, 1997, and the Quarterly Report on 10-Q of
the Company as of March 31, 1998;
2. met with certain members of the senior management of the Company to
discuss the operations, financial condition, future prospects and
projected operations and performance of the Company;
3. visited certain facilities and business offices of the Company in St.
Thomas, U.S. Virgin Islands;
- ---------------------------------- Houlihan Lokey Howard & Zukin Capital --- 1
<PAGE>
Emerging Communications, Inc.
- --------------------------------------------------------------------------------
Introduction
- --------------------------------------------------------------------------------
4. reviewed forecasts dated March 25, 1998 prepared by the Company's
management for the years ending December 31, 1998 through 2007;
5. reviewed the historical market prices and trading volume for the
publicly traded securities of the Company;
6. reviewed publicly available financial data for certain companies that we
deem comparable to the Company, and publicly available prices and
premiums paid in other transactions that we considered similar to the
Transaction;
7. had discussions with Jeffrey J. Prosser, the majority shareholder of the
Company and the sole shareholder of ICC, and with certain members of
Prudential Securities who are acting as advisor to Mr. Prosser; and
8. conducted such other studies, analyses and inquiries as we have deemed
appropriate.
LIMITING CONDITIONS
We have relied upon and assumed, without independent verification, that the
financial forecasts and projections provided to us have been reasonably prepared
and reflect the best currently available estimates of the future financial
results and condition of the Company, and that there has been no material change
in the assets, financial condition, business or prospects of the Company since
the date of the most recent financial statements made available to us.
We have not independently verified the accuracy and completeness of the
information supplied to us with respect to the Company and do not assume any
responsibility with respect to it. We have not made any physical inspection or
independent appraisal of any of the properties or assets of the Company. Our
opinion is necessarily based on business, economic, market and other conditions
as they exist and can be evaluated by us at the date of this presentation.
Houlihan Lokey's Opinion is directed to the Special Committee of the Board of
Directors of the Company and does not constitute a recommendation to any
stockholder of the Company as to how such stockholder should vote at the
stockholders' meeting to be held in connection with the Transaction. Houlihan
Lokey's Opinion is delivered to each recipient subject to the conditions, scope
of engagement, limitations and understandings set forth in this Opinion and our
engagement letter, and subject to the understanding that the obligations of
Houlihan Lokey in the Transaction are solely corporate obligations, and without
limiting Houlihan Lokey's obligations, to the extent permitted by applicable
law, no officer, director, employee, agent, shareholder or controlling person of
Houlihan Lokey shall be subjected to any personal liability whatsoever to any
person, nor will any such claim be asserted by or on behalf of you or your
affiliates.
- ---------------------------------- Houlihan Lokey Howard & Zukin Capital --- 2
<PAGE>
- --------------------------------------------------------------------------------
TIMELINE OF SIGNIFICANT EVENTS
- --------------------------------------------------------------------------------
Emerging Communications, Inc.
- --------------------------------------------------------------------------------
Timeline of Significant Events
- --------------------------------------------------------------------------------
February 1996 The two largest (and majority) shareholders of ATNI
agreed to explore the possibility of selling the
company. PaineWebber Inc. and Prudential Securities Inc.
were retained to solicit potential buyers. During the
selling process, 36 potential buyers were contacted
resulting in 2 credible offers for the assets of EmCom.
One offer represented an equity value range of between
$35 - $50 million (enterprise value of between $116 and
$131) and the other offer represented an equity value
range of between $90 - $120 (enterprise value of between
$171 and $201). No transaction was consummated.
January 1997 Mr. Prosser and Mr. Prior announced their intention to
split ATNI into two separate companies.
May 1997 The U.S. Virgin Islands Industrial Development
Commission granted Vitelco, a wholly owned subsidiary of
ATNI, a tax abatement to allow Vitelco to recover damage
costs associated with Hurricane Marilyn in September
1995. The IDC granted a rebate of 90% of Virgin Islands
income taxes and 100% of Virgin Islands' gross receipts,
excise and property taxes for five years beginning
October 1, 1998.
July 1997 The Board of Directors of ATNI approves the split-up of
ATNI into two separate companies. Prudential Securities
renders an opinion stating that the transaction as a
whole is fair from a financial point of view. The terms
of the transaction required Mr. Prosser and Mr. Prior to
exchange shares in each of the two companies implying a
price of $13.25 for each share of EmCom and,
simultaneous with the closing of the transaction, the
Company purchased approximately 1.3 million shares of
EmCom from Mr. Prior for cash consideration equal to
$13.25 per share.
December 1997 ATNI split to create two public companies, Emerging
Communications (AMEX: ECM) and ATN (AMEX: ANK). Emerging
Communications retained ownership of the telephone
operations in the U.S. Virgin Islands and ATN retained
ownership of operations in Guyana.
March 1998 Mr. Prosser completed the purchase of the Virgin Islands
cable company through ICC.
April 1998 The Company announced the completed acquisition of 66%
of SMB Holdings ("SMB"), a cellular provider in St.
Maarten and St. Martin. The purchase price was based on
5 times SMB's EBITDA.
May 1998 EmCom announced that the Board of Directors received a
proposal from ICC for the acquisition of the Company for
$9.125 per share. ICC is a company wholly owned by
Jeffrey Prosser, the Chairman, CEO and controlling
shareholder of EmCom.
August 10, 1998 Mr. Prosser increased his offer to $10.25 per share
after negotiating with the Special Committee of the
Board of Directors.
- ---------------------------------- Houlihan Lokey Howard & Zukin Capital --- 3
<PAGE>
- --------------------------------------------------------------------------------
VALUATION SUMMARY OF PROPOSED OFFER
- --------------------------------------------------------------------------------
Emerging Communications
Valuation Summary of Proposed Offer
- --------------------------------------------------------------------------------
($ in 000, except per share values)
Offer Price
-----------
Offer Price Per Share $10.250
Shares Outstanding (000's) 10,959
--------
Market Value of Equity ("MVE") $112,331
Net Debt (debt net of cash as of June 30, 1998) $168,180
--------
Total Invested Capital ("TIC") $280,511
Premium Over Unaffected Stock Price of $6.8375 (1) 49.9%
Premium Over 52 Week High of $9.00 as of January 6, 1998 13.9%
Premium Over 52 Week Low of $6.25 as of February 5, 1998 64.0%
Representative
P/E Multiples (2) Level
- ----------------- -----
Projected 1998 P/E $7,033 16.0x
Projected 1999 P/E $9,185 12.2x
TIC Multiples (3)
- -----------------
LTM Pro Forma Revenue $84,221 3.3x
LTM Pro Forma EBITDA $39,719 7.1x
LTM Pro Forma EBIT $20,925 13.4x
Notes
- -----
LTM = Latest Twelve Months
P/E = Price Earnings
EBITDA = Earnings Before Interest Taxes and Depreciation
EBIT = Earnings Before Interest and Taxes
(1) Unaffected stock price represents the average stock price for the 30 days
prior to the announcement of the offer.
(2) Net Income is adjusted to reflect a normalized tax rate of 37.4%
(3) All results are pro forma for the acquisition of the St. Martin cellular
operations.
4
<PAGE>
Emerging Communications, Inc.
- --------------------------------------------------------------------------------
Valuation Summary of Proposed Offer
- --------------------------------------------------------------------------------
Emerging Communications
Daily Stock Price and Volume History
[THE FOLLOWING WAS REPRESENTED BY A GRAPH IN THE PRINTED MATERIAL]
EMCOM
Price Volume Index
----- ------
12/31/97 8.00 21,300 1.00
7.88 0 0.98
8.25 2,000 1.03
8.75 19,600 1.09
8.50 14,100 1.06
8.25 9,700 1.03
8.00 7,700 1.00
7.63 23,900 0.95
7.25 17,600 0.91
7.63 15,900 0.95
01/15/98 7.63 13,600 0.95
7.75 5,800 0.97
7.63 8,300 0.95
7.25 11,100 0.91
7.25 12,800 0.91
7.38 7,400 0.92
7.00 13,800 0.88
6.88 7,000 0.86
6.88 4,500 0.86
6.50 18,200 0.81
01/30/98 6.75 11,100 0.84
6.69 28,500 0.84
6.69 3,900 0.84
6.69 1,800 0.84
6.50 24,200 0.81
6.50 19,300 0.81
6.94 125,000 0.87
6.94 13,900 0.87
7.50 39,800 0.94
7.56 12,300 0.95
02/13/98 7.38 3,300 0.92
7.50 2,300 0.94
7.50 5,500 0.94
7.50 12,200 0.94
7.56 5,600 0.95
7.63 3,100 0.95
7.63 37,800 0.95
7.63 11,500 0.95
7.63 900 0.95
7.63 60,100 0.95
03/02/98 7.63 1,600 0.95
7.69 53,100 0.96
7.75 51,400 0.97
7.50 6,700 0.94
7.50 5,500 0.94
7.13 43,900 0.89
7.00 15,100 0.88
6.94 3,000 0.87
7.31 81,400 0.91
7.44 10,000 0.93
03/16/98 7.50 41,800 0.94
7.44 4,400 0.93
7.38 17,600 0.92
7.38 2,200 0.92
7.38 21,100 0.92
7.38 15,300 0.92
7.13 6,800 0.89
7.00 19,600 0.88
7.06 1,300 0.88
7.38 15,600 0.92
03/30/98 7.38 20,900 0.92
7.00 53,600 0.88
6.94 4,000 0.87
6.88 12,200 0.86
6.75 11,500 0.84
6.63 200 0.83
6.88 3,500 0.86
6.75 800 0.84
6.75 5,400 0.84
6.75 4,000 0.84
04/14/98 6.75 3,200 0.84
6.75 10,000 0.84
6.63 5,600 0.83
6.63 13,600 0.83
6.75 7,000 0.84
6.75 2,300 0.84
6.56 6,200 0.82
6.56 1,600 0.82
6.75 5,400 0.84
6.50 4,400 0.81
04/28/98 6.50 5,600 0.81
6.50 13,500 0.81
6.38 11,000 0.80
6.25 0 0.78
6.50 3,500 0.81
6.56 1,700 0.82
6.69 1,800 0.84
6.75 10,100 0.84
6.75 5,000 0.84
6.63 12,600 0.83
05/12/98 6.94 56,500 0.87
7.06 34,200 0.88
7.00 23,600 0.88
7.00 450,000 0.88
7.50 23,200 0.94
7.50 9,400 0.94
7.44 32,100 0.93
7.38 13,500 0.92
7.19 11,100 0.90
7.00 8,400 0.88
05/27/98 7.00 1,300 0.88
7.00 30,300 0.88
8.94 47,600 1.12
8.75 51,600 1.09
8.56 11,600 1.07
8.63 25,500 1.08
8.56 21,500 1.07
8.75 22,700 1.09
8.56 12,500 1.07
8.50 12,900 1.06
06/10/98 8.50 10,800 1.06
8.38 14,500 1.05
8.38 1,800 1.05
8.38 100 1.05
8.38 2,100 1.05
8.31 5,500 1.04
8.31 7,500 1.04
8.25 300 1.03
8.38 3,700 1.05
8.38 7,500 1.05
06/24/98 8.50 1,400 1.06
8.50 4,800 1.06
8.63 4,300 1.08
8.50 6,400 1.06
8.56 13,700 1.07
8.50 300 1.06
8.50 3,100 1.06
8.50 8,700 1.06
8.44 20,500 1.05
8.44 3,500 1.05
07/09/98 8.38 7,900 1.05
8.13 25,700 1.02
8.13 4,600 1.02
8.13 4,100 1.02
8.38 9,400 1.05
8.25 30,400 1.03
8.00 0 1.00
8.31 20,300 1.04
8.38 13,200 1.05
07/22/98 8.38 11,000 1.05
- ---------------------------------- Houlihan Lokey Howard & Zukin Capital --- 5
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Emerging Communications
Proforma Historical Representative Earnings Levels
- ------------------------------------------------------------------------------------------------------------------------------------
($ in thousands)
Estimated Estimated Estimated
Proforma FYE Proforma FYE LTM Ended Projected FYE 1996-1998
December 1996 (1) December 1997 (1) June 1998 (2) December 1998 (3) CAGR
-------------------- ------------------- -------------------- -------------------- -----------
% of % of % of % of
Dollars Revenue Dollars Revenue Dollars Revenue Dollars Revenue
------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Total Revenues $78,527 100.0% $83,779 100.0% $84,221 100.0% $84,820 100.0% 3.9%
Total Operating Expenses 42,078 53.6% 44,897 53.6% 44,502 52.8% 42,814 50.5%
- -------------------------------------------------------------------------------------------------------------------------
Total EBITDA $36,449 46.4% $38,882 46.4% $39,719 47.2% $42,006 49.5% 7.4%
- -------------------------------------------------------------------------------------------------------------------------
Total Depreciation and
Amortization 15,075 19.2% 16,342 19.5% 18,794 22.3% 20,286 23.9%
- -------------------------------------------------------------------------------------------------------------------------
Total EBIT $21,374 27.2% $22,540 26.9% $20,925 24.8% $21,720 25.6% 0.8%
- -------------------------------------------------------------------------------------------------------------------------
Interest (net) 10,486 12.4%
------------------------
Earning Before Taxes 11,235 13.2%
Taxes (4) 4,202 5.0%
- -------------------------------------------------------------------------------------------------------------------------
Net Income Before Minority
Interest 7,033 8.3%
- -------------------------------------------------------------------------------------------------------------------------
Local Access Lines 58,036 62,140 63,689 64,626 5.5%
-----------
</TABLE>
(1) Includes pro forma results of EmCom and the St. Martin cellular operations
assuming the transactions occurred on January 1, 1996.
(2) Includes LTM results of EmCom and 12 months of St. Martin cellular for the
period ending 12/31/97.
(3) Includes projections for EmCom for the period 1/1/98 - 12/31/98, actual
results of the St. Martin for period 1/1/98 - 3/31/98 and projections for
St. Martin for the period 4/1/98 - 12/31/98.
(4) Taxes reflect a normalized tax rate of 37.4%
6
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Emerging Communications
Actual Representative Earnings Levels
- ------------------------------------------------------------------------------------------------------------------------------------
($ in thousands)
6 Months 6 Months Projected
EmCom EmCom Ended Ended LTM EmCom 1996-1998
FYE 1996 FYE 1997 Jun-98 Jun-97 Jun-98 FYE 1998 CAGR
-------- -------- ------ ------ ------ -------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
Revenue $68,664 $73,339 $36,988 $36,546 $73,781 $82,620 9.7%
Operating Expenses 37,455 39,914 17,540 17,935 39,519 41,380
- ------------------------------------------------------------------------------------------------------------------
EBITDA $31,209 $33,425 $19,448 $18,611 $34,262 $41,240 15.0%
- ------------------------------------------------------------------------------------------------------------------
Depreciation and Amortization 14,276 15,489 10,467 8,015 17,941 20,033
- ------------------------------------------------------------------------------------------------------------------
EBIT $16,933 $17,936 $8,981 $10,596 $16,321 $21,207 11.9%
- ------------------------------------------------------------------------------------------------------------------
Other Income and Expense (9,082) (8,038) (3,998) (4,148) (7,888) (9,998)
Income Taxes 2,215 (8,391) 1,761 (8,997) 2,367 4,090
Minority Interest 81 - - 4 (4) 1,452
- ------------------------------------------------------------------------------------------------------------------
Net Income $5,555 $18,289 $3,222 $15,441 $6,070 $5,667 1.0%
- ------------------------------------------------------------------------------------------------------------------ ---------------
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
Emerging Communications
Projected Representative Earnings Levels
- ------------------------------------------------------------------------------------------------------------------------------
($ in thousands)
Projected Fiscal Year Ending
-------------------------------------------------------------------------------------------
December 1998 December 1999 December 2000 December 2001
---------------------- -------------------- -------------------- --------------------
% of % of % of % of
Dollars Revenue Dollars Revenue Dollars Revenue Dollars Revenue
------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Revenues $84,820 100.0% $85,953 100.0% $89,244 100.0% $92,504 100.0%
Operating Expenses (1) 42,814 50.5% 39,675 46.2% 40,954 45.9% 42,018 45.4%
---------------------- -------------------- -------------------- --------------------
Operating Margin 42,006 49.5% 46,278 53.8% 48,290 54.1% 50,486 54.6%
- ------------------------------------------------------------------------------------------------------------------------------
EBITDA $42,006 49.5% $46,278 53.8% $48,290 54.1% $50,486 54.6%
- ------------------------------------------------------------------------------------------------------------------------------
Depreciation and Amortization 20,286 23.9% 21,615 25.1% 22,057 24.7% 21,968 23.7%
- ------------------------------------------------------------------------------------------------------------------------------
EBIT $21,720 25.6% $24,663 28.7% $26,233 29.4% $28,518 30.8%
- ------------------------------------------------------------------------------------------------------------------------------
Interest (net) 10,486 12.4% 9,991 11.6% 9,405 10.5% 8,825 9.5%
---------------------- -------------------- -------------------- --------------------
Earnings Before Taxes $11,235 13.2% $14,672 17.1% $16,828 18.9% $19,693 21.3%
Taxes 4,079 4.8% 1,669 1.9% 2,621 2.9% 3,492 3.8%
---------------------- -------------------- -------------------- --------------------
Net Income before Minority Interest 7,156 8.4% 13,003 15.1% 14,207 15.9% 16,201 17.5%
Tax Adjustment (2) $123 $3,818 $3,673 $3,873
- ------------------------------------------------------------------------------------------------------------------------------
Adjusted Net Income 7,033 8.3% 9,185 10.7% 10,534 11.8% 12,328 13.3%
- ------------------------------------------------------------------------------------------------------------------------------
Access Lines 64,626 67,211 69,899 72,695
<CAPTION>
Projected Fiscal Year Ending Projected
------------------------------------------ 1998-2003
December 2002 December 2003 CAGR
-------------------- -------------------- --------
% of % of
Dollars Revenue Dollars Revenue
------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Revenues $95,826 100.0% $99,152 100.0% 3.2%
Operating Expenses (1) 43,096 45.0% 45,134 45.5%
-------------------- --------------------
Operating Margin 52,730 55.0% 54,018 54.5%
- --------------------------------------------------------------------------------
EBITDA $52,730 55.0% $54,018 54.5% 5.2%
- --------------------------------------------------------------------------------
Depreciation and Amortization 22,463 23.4% 20,894 21.1%
- --------------------------------------------------------------------------------
EBIT $30,267 31.6% $33,124 33.4% 8.8%
- --------------------------------------------------------------------------------
Interest (net) 8,103 8.5% 7,407 7.5%
-------------------- --------------------
Earnings Before Taxes $22,164 23.1% $25,717 25.9% 18.0%
Taxes 3,760 3.9% 6,182 6.2%
-------------------- --------------------
Net Income before Minority Interest 18,404 19.2% 19,535 19.7% 22.2%
Tax Adjustment (2) $4,529 $3,436
- --------------------------------------------------------------------------------
Adjusted Net Income 13,875 14.5% 16,099 16.2% 18.0%
- --------------------------------------------------------------------------------
Access Lines 75,603 78,627 4.0%
--------
</TABLE>
(1) Excludes Depreciation and Amortization.
(2) Adjusts Reported Net Income levels to reflect a normalized tax rate of
37.4%.
8
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Emerging Communications
Market Multiple Valuation Analysis
- ------------------------------------------------------------------------------------------------------------------------------------
($ in thousands)
Representative Debt and Total Invested Capital
Level Multiple Range Preferred Range
---------------- -------------------------- ------------- --------------------------------
LTM Ended
6/30/98
- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
TIC/Revenue $84,221 2.90 - 3.10 $244,241 - $261,085
TIC/EBITDA $39,719 6.5 - 7.5 $258,174 - $297,893
TIC/EBIT $20,925 11.0 - 12.0 $230,175 - $251,100
Projected
FY Ending
12/31/98
- -------------
TIC/EBITDA $42,006 6.0 - 7.0 $252,038 - $294,044
TIC/EBIT $21,720 10.5 - 11.5 $228,063 - $249,783
Price/Earnings $7,033 14.0 - 16.0 172,520 $270,981 - $285,047
Projected
Year Ending
12/31/99
- -------------
TIC/EBITDA $46,278 5.5 - 6.5 $254,529 - $300,807
TIC/EBIT $24,663 10.0 - 11.0 $246,630 - $271,293
Price/Earnings $9,185 12.0 - 14.0 172,520 $282,736 - $301,105
- ----------------------------------------------------------------------------------------------------------------------------------
Average of Implied Total Invested Capital Ranges $252,000 - $279,000
- ----------------------------------------------------------------------------------------------------------------------------------
Plus: Cash as of 6/30/98 4,340 - 4,340
Less: Total Debt as of 6/30/98 172,520 - 172,520
- ----------------------------------------------------------------------------------------------------------------------------------
Implied Equity Value Range $83,820 - $110,820
- ----------------------------------------------------------------------------------------------------------------------------------
Add: Value of Tax Abatement Benefit (1) 13,965 - 13,965
Less: Equity Value of Minority Interest in Cellular Operations (2) 10,000 - 10,000
- ----------------------------------------------------------------------------------------------------------------------------------
Adjusted Equity Value Range $87,785 - $114,785
- ----------------------------------------------------------------------------------------------------------------------------------
Shares Outstanding as of 7/23/98 10,959 - 10,959
- ----------------------------------------------------------------------------------------------------------------------------------
Implied Equity Value Per Share $8.01 - $10.47
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Calculation of tax abatement benefit determined using a discounted cash flow
analysis as shown on the following page.
(2) Represents the value of the minority equity ownership (33%) of the St.
Martin cellular operations. Based on verbal representation by the Company
that the 66% of the cellular operations were acquired for $20 million.
9
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Emerging Communications
Discounted Cash Flow - Tax Abatement
- ------------------------------------------------------------------------------------------------------------------------------------
3 Months Projected Fiscal Years Ending December 31,
Ended -----------------------------------------------------------------------
Dec-98 1999 2000 2001 2002 2003
------ ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Tax Abatement Benefit (1) $863 $3,818 $3,673 $3,873 $4,529 $3,436
Discount (Cost of Equity) 16.0%
Discount Period 0.13 0.75 1.75 2.75 3.75 4.75
Discount Factor 0.98 0.89 0.77 0.66 0.57 0.49
Discounted Free Cash Flow $848 $3,416 $2,833 $2,575 $2,596 $1,698
- --------------------------------------------
Net Present Value $13,965
- --------------------------------------------
</TABLE>
(1) The tax abatement is calculated as the difference between a normalized tax
expense assuming a rate of 37.4% and the tax expense as provided in the
Company's projections.
Note: Cash Flow is discounted using mid-year convention.
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Emerging Communications
Risk Ranking
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Size Size Leverage
Revenue (000's) Access Lines (as of 12/31/97) Total Debt / EBITDA
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <S> <C> <S> <C>
Century Telephone $1,074,256 Century Telephone 1,200,000.00 CT Communications 0.4
Aliant Communications $293,250 Aliant Communications 273,008.00 CFW Communications 0.7
- ----------------------------------------
Emerging Communications $84,221 CT Communications 102,221.00 Aliant Communications 0.8
- ----------------------------------------
CT Communications $81,647 Conestoga Enterprises 76,421.00 North Pittsburgh 0.8
--------------------------------------------
Hickory Tech Corp $79,650 Emerging Communications 62,140.00 Hickory Tech Corp 1.4
--------------------------------------------
North Pittsburgh $65,716 Hickory Tech Corp 59,223.00 Conestoga Enterprises 1.8
CFW Communications $61,779 D & E Communications 53,673.00 D & E Communications 2.1
----------------------------------------
Conestoga Enterprises $59,161 CFW Communications 36,000.00 Emerging Communications 4.3
----------------------------------------
D & E Communications $49,418 North Pittsburgh NA Century Telephone 4.7
- ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ----------------------------------------------------------------------------------------
Coverage Quality of Earnings
EBITDA Interest Coverage Depreciation / Net Income
- ----------------------------------------------------------------------------------------
<S> <C> <S> <C>
Aliant Communications 62.8 D & E Communications 104.6%
---------------------------------------------
CFW Communications 42.4 Emerging Communications 89.8%
---------------------------------------------
CT Communications 40.8 Conestoga Enterprises 68.7%
North Pittsburgh 36.3 Century Telephone 58.2%
Conestoga Enterprises 12.3 Aliant Communications 55.0%
Hickory Tech Corp 10.1 North Pittsburgh 49.5%
D & E Communications 7.6 CT Communications 48.5%
Century Telephone 6.3 CFW Communications 46.4%
- -----------------------------------------
Emerging Communications NA Hickory Tech Corp 39.2%
- ----------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
Efficiency Efficiency Profitability
Inventory Turnover Average Collection Period EBIT / Sales
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <S> <C> <S> <C>
Conestoga Enterprises 44.2 Conestoga Enterprises 39.2 North Pittsburgh 33.7%
Century Telephone 34.6 CT Communications 40.4 CFW Communications 33.1%
D & E Communications 27.5 North Pittsburgh 50.8 Century Telephone 32.5%
---------------------------------------------
CT Communications 22.0 Emerging Communications 61.1 Aliant Communications 31.4%
---------------------------------------------
CFW Communications 20.9 Century Telephone 61.9 Hickory Tech Corp 27.5%
North Pittsburgh 12.6 CFW Communications 63.6 Conestoga Enterprises 26.4%
- ----------------------------------------
Emerging Communications 10.4 Hickory Tech Corp 65.7 CT Communications 26.3%
- ----------------------------------------
--------------------------------------
Hickory Tech Corp 8.2 D & E Communications 95.5 Emerging Communications 24.8%
--------------------------------------
Aliant Communications NA Aliant Communications NA D & E Communications 17.1%
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ----------------------------------------------------------------------------------------
Profitability Profitability
EBITDA /Sales EBT / Sales
- ----------------------------------------------------------------------------------------
<S> <C> <S> <C>
Century Telephone 51.4% North Pittsburgh 32.3%
North Pittsburgh 50.4% CFW Communications 32.0%
Aliant Communications 48.6% Aliant Communications 30.6%
CFW Communications 48.5% CT Communications 25.3%
- -----------------------------------------
Emerging Communications 47.2% Century Telephone 24.3%
- -----------------------------------------
Conestoga Enterprises 44.6% Hickory Tech Corp 23.7%
CT Communications 39.0% Conestoga Enterprises 22.8%
Hickory Tech Corp 38.3% D & E Communications 12.5%
---------------------------------------------
D & E Communications 35.0% Emerging Communications NA
- ----------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
Growth Growth Growth
4-Year Revenue (1) Annual Revenue 4-Year EBITDA
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <S> <C> <S> <C>
D & E Communications 51.6% Conestoga Enterprises 31.0% D & E Communications 63.9%
CFW Communications 21.1% Century Telephone 20.3% Century Telephone 19.9%
Century Telephone 20.1% CFW Communications 18.1% Aliant Communications 15.4%
--------------------------------------
CT Communications 15.6% CT Communications 17.0% Emerging Communications 15.0%
--------------------------------------
Aliant Communications 11.6% Hickory Tech Corp 14.9% CFW Communications 14.5%
North Pittsburgh 10.6% North Pittsburgh 10.5% Hickory Tech Corp 13.2%
Hickory Tech Corp 9.8% D & E Communications 9.2% North Pittsburgh 9.5%
- ----------------------------------------
Emerging Communications 9.7% Aliant Communications 8.4% CT Communications 8.3%
- ---------------------------------------- --------------------------------------------
Conestoga Enterprises NA Emerging Communications 6.8% Conestoga Enterprises NA
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ----------------------------------------------------------------------------------------
Growth Growth
Annual EBITDA 5 Year Projected EPS Growth (2)
<S> <C> <S> <C>
---------------------------------------------
Hickory Tech Corp 21.0% Emerging Communications 18%
---------------------------------------------
CFW Communications 20.1% Century Telephone 13%
CT Communications 19.0% CFW Communications 13%
Century Telephone 19.0% Aliant Communications (3) 10%
Conestoga Enterprises 17.8% North Pittsburgh 8%
North Pittsburgh 12.7% Hickory Tech Corp NA
Aliant Communications 12.1% D & E Communications NA
D & E Communications 8.4% Conestoga Enterprises NA
- ----------------------------------------
Emerging Communications 7.1% CT Communications NA
- ----------------------------------------------------------------------------------------
</TABLE>
(1) For Emerging Communications, represents two year growth from 1996 to
projected fiscal year 1998. Comparable company growth rates are based on
historical financial results.
(2) Source of EPS growth is S&P Earnings Guide, July 1998.
(3) Source of earnings growth is IBES.
11
<PAGE>
- --------------------------------------------------------------------------------
Emerging Communications
Multiple Ranking Analysis
- --------------------------------------------------------------------------------
- ----------------------------------- ------------------------------------
Valuation Multiple Valuation Multiple
TIC / Revenue TIC / EBITDA
- ----------------------------------- ------------------------------------
Century Telephone 6.81x Century Telephone 13.2x
CFW Communications 4.80x CFW Communications 9.9x
CT Communications 3.76x CT Communications 9.6x
Aliant Communications 3.54x D & E Communications 8.2x
Offer Implied Multiple 3.33x Hickory Tech Corp 7.7x
Conestoga Enterprises 3.20x Aliant Communications 7.3x
North Pittsburgh Systems 3.02x Conestoga Enterprises 7.2x
Hickory Tech Corp 2.96x Offer Implied Multiple 7.1x
Unaffected EmCom Multiple 2.89x Unaffected EmCom Multiple 6.1x
D & E Communications 2.87x North Pittsburgh Systems 6.0x
- ----------------------------------- ------------------------------------
Valuation Multiple Valuation Multiple
Projected 1998 P/E (1) TIC / EBIT
- ----------------------------------- ------------------------------------
CFW Communications 30.4x Century Telephone 21.0x
Century Telephone 27.2x D & E Communications 16.8x
Aliant Communications 17.3x CFW Communications 14.5x
Offer Implied Multiple 16.0x CT Communications 14.3x
Unaffected EmCom Multiple 10.7x Offer Implied Multiple 13.4x
North Pittsburgh NA Conestoga Enterprises 12.1x
D & E Communications NA Unaffected EmCom Multiple 11.6x
CT Communications NA Aliant Communications 11.3x
Hickory Tech Corp NA Hickory Tech Corp 10.8x
Conestoga Enterprises NA North Pittsburgh Systems 9.0x
Note: Unaffected Emcom Multiple is based on the average stock price for the 30
days prior to the date of the offer.
(1) Source: The July 1998 Standard & Poors Earnings Guide and IBES Earnings
Estimates.
<PAGE>
- --------------------------------------------------------------------------------
Emerging Communications
Market Multiples Analysis
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TIC / Revenue TIC / EBITDA
- ------------------------------------------------------------- ----------------------------------------------------------
Projected
------------------
LTM FYE 1999 1998 LTM FYE
--- --- ---- ---- --- ---
<S> <C> <C> <C> <C> <C> <C> <C>
Aliant Communications 3.54 3.62 Aliant Communications 6.7 7.1 7.3 7.4
CFW Communications 4.80 5.02 CFW Communications 10.5 11.7 9.9 10.4
CT Communications 3.76 3.91 CT Communications NMF NMF 9.6 10.0
Century Telephone 6.81 8.12 Century Telephone 11.6 12.6 13.2 16.1
Conestoga Enterprises 3.20 3.37 Conestoga Enterprises NMF NMF 7.2 7.3
D & E Communications 2.87 2.92 D & E Communications NMF NMF 8.2 8.1
Hickory Tech Corp 2.96 3.09 Hickory Tech Corp NMF NMF 7.7 8.2
North Pittsburgh 3.02 3.00 North Pittsburgh NMF NMF 6.0 6.1
- ------------------------------------------------------------- ----------------------------------------------------------
Median 3.37 3.50 Median 10.5 11.7 8.0 8.1
Mean 3.87 4.13 Mean 9.6 10.5 8.6 9.2
- ------------------------------------------------------------- ----------------------------------------------------------
Unaffected EmCom Multiple 2.89 2.90 Unaffected EmCom Multiple 5.3 5.8 6.1 6.3
Offer Implied Emcom Multiple 3.33 3.35 Offer Implied Emcom Multiple 6.1 6.7 7.1 7.2
<CAPTION>
Price / Earnings TIC / EBIT
- ------------------------------------------------------------- ----------------------------------------------------------
Projected Projected
--------------- ---------------
1999 1998 LTM FYE 1999 1998 LTM FYE
---- ---- --- --- ---- ---- --- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Aliant Communications 15.8 17.3 17.7 18.2 Aliant Communications 10.0 11.0 11.3 11.6
CFW Communications 25.6 30.4 22.6 26.2 CFW Communications 15.8 18.7 14.5 15.3
CT Communications NMF NMF 24.1 23.0 CT Communications NMF NMF 14.3 14.5
Century Telephone 23.1 27.2 NMF NMF Century Telephone 17.1 19.4 21.0 24.8
Conestoga Enterprises NMF NMF 37.0 34.2 Conestoga Enterprises NMF NMF 12.1 12.2
D & E Communications NMF NMF NMF NMF D & E Communications NMF NMF 16.8 15.6
Hickory Tech Corp NMF NMF 44.6 47.9 Hickory Tech Corp NMF NMF 10.8 11.4
North Pittsburgh NMF NMF NMF NMF North Pittsburgh NMF NMF 9.0 9.0
- ------------------------------------------------------------- ----------------------------------------------------------
Median 23.1 27.2 24.1 26.2 Median 15.8 18.7 13.2 13.3
Mean 21.5 25.0 29.2 29.9 Mean 14.3 16.4 13.7 14.3
- ------------------------------------------------------------- ----------------------------------------------------------
Unaffected EmCom Multiple 8.2 10.7 NA NA Unaffected EmCom Multiple 9.9 11.2 11.6 10.8
Offer Implied Emcom Multiple 12.2 16.0 NA NA Offer Implied Emcom Multiple 11.4 12.9 13.4 12.4
</TABLE>
Note: Unaffected stock price is based on the average stock price 30 days prior
to the announcement date.
<PAGE>
- --------------------------------------------------------------------------------
Emerging Communications
Discounted Cash Flow
- --------------------------------------------------------------------------------
($ in Thousands)
<TABLE>
<CAPTION>
3 Months Projected Fiscal Years Ending December 31,
Ended ---------------------------------------------------------------------
Dec 98 1999 2000 2001 2002
------ ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
EBITDA $10,502 $46,278 $48,290 $50,486 $52,730
Less Depreciation 5,072 21,615 22,057 21,968 22,463
EBIT 5,430 24,663 26,233 28,518 30,267
Tax on EBIT (1) 37.4% 2,031 9,224 9,811 10,666 11,320
Earnings Before Interest & After Taxes 3,399 15,439 16,422 17,852 18,947
Plus: Depreciation 5,072 21,615 22,057 21,968 22,463
Less:
Change in Working Capital (2) 0 0 0 0 0
Capital Expenditures (2,250) (8,950) (8,850) (8,850) (8,850)
----- ----- ----- ----- -----
Free Cash Flow $6,221 $28,104 $29,629 $30,970 $32,560
</TABLE>
Sensitivity Table
<TABLE>
<CAPTION>
Terminal EBITDA Multiple
---------------------------------------------------------------------------------------
5.5 6.0 6.5 7.0 7.5
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
12.0% 278,356 294,551 310,747 326,942 343,137
--------------------------------------------------
13.0% 269,876 285,464 301,052 316,640 332,228
WACC 14.0% 261,761 276,769 291,778 306,786 321,794
15.0% 253,990 268,446 282,901 297,356 311,812
--------------------------------------------------
16.0% 246,548 260,475 274,402 288,329 302,256
- ----------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
- --------------------------------------------------------------------------------------------------------------------
Implied Total Invested Capital Ranges $268,000 - $317,000
- --------------------------------------------------------------------------------------------------------------------
Plus: Cash as of 6/30/98 4,340 - 4,340
Less: Total Debt as of 6/30/98 172,520 - 172,520
- --------------------------------------------------------------------------------------------------------------------
Implied Equity Value Range $99,820 - $148,820
- --------------------------------------------------------------------------------------------------------------------
Add: Value of Tax Abatement Benefit 13,965 - 13,965
Less: Equity Value of Minority Interest in Cellular Operations (3) 10,000 - 10,000
- --------------------------------------------------------------------------------------------------------------------
Adjusted Equity Value Range $103,785 - $152,785
- --------------------------------------------------------------------------------------------------------------------
Shares Outstanding as of 7/23/98 10,959 - 10,959
- --------------------------------------------------------------------------------------------------------------------
Implied Equity Value Per Share $9.47 - $13.94
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Tax rates are based on a normalized tax rate of 37.4% for the projected
period.
(2) The model assumes no changes in working capital over the projected period.
The June 30, 1998, balance sheet records an abnormally low accounts payable
balance relative to year-end balances.
(3) Represents the value of the minority equity ownership (33%) of the St.
Martin cellular operations.
<PAGE>
- --------------------------------------------------------------------------------
VALUATION PARAMETERS OF EMERGING COMMUNICATIONS
- --------------------------------------------------------------------------------
Emerging Communications
Comparable Transactions
- --------------------------------------------------------------------------------
($ in Millions)
<TABLE>
<CAPTION>
Date
Announced Target Name Target Business Description Acquiror Name
- --------- ----------- --------------------------- -------------
<S> <C> <C> <C>
07/29/98 Puerto Rico Telephone Company Provide telecommunications services GTE Corp.
07/28/98 GTE Corp. Provide telecommunications services Bell Atlantic Corp.
05/11/98 Ameritech Corp. Provide telecommunications services SBC Communications
04/16/98 ICON Communications Corp. Pacific Northwest telecom provider GST Telecommunications, Inc.
03/16/98 360 Communications Co. Provide telecommunications services ALLTEL Corp.
03/09/98 LCI International Inc. Provide telecommunications services Qwest Communications Corp.
01/05/98 Southern New England Telecom Corp. Connecticut based ILEC SBC Communications
01/02/98 NACT Telecommunications (GST) Provide telephone communication services World Access Inc.
12/19/97 Network Long Distance Inc. Provide national fiber optic telecom. services IXC Communications Inc.
11/26/97 ACC Corp. Provide telecommunications services Teleport Communications Group
11/10/97 MCI Communications Provide telecommunications services Worldcom Inc.
09/18/97 USLD Communications Corp. Provide long distance communication services LCI International Inc.
06/16/97 Consolidated Communications Inc. Provide local telecommunications services McLeod Inc.
06/13/97 Pacific Telecom (PacifiCorp) Provide telecommunications services Century Telephone Enterprises
06/06/97 Telco Communications Group Inc. Provide switch based telecom. services Excel Communications Inc.
04/22/96 NYNEX Corp Pvd telecommunication svcs Bell Atlantic Corp
05/29/98 Emerging Communications Pvd telecommunications svcs Management
<CAPTION>
TIC/
Date Transaction ---------------------------------------
Announced Target Name Value Sales EBITDA EBIT Net Income
- --------- ----------- ----- ----- ------ ---- ----------
07/29/98 Puerto Rico Telephone Company (1) $2,009.0 3.28 NA 16.3 NA
07/28/98 GTE Corp. (1) 66,700.0 2.87 7.0 11.9 NA
05/11/98 Ameritech Corp. (1) 68,400.0 4.28 10.8 18.0 NA
04/16/98 ICON Communications Corp. 23.8 1.24 15.9 NA NA
03/16/98 360 Communications Co. (2) 6,021.4 4.65 14.1 24.5 NMF
03/09/98 LCI International Inc. (2) 4,400.0 2.68 22.7 44.9 NMF
01/05/98 Southern New England Telecom Corp. 5,970.0 2.89 7.5 14.4 NA
01/02/98 NACT Telecommunications (GST) 93.2 3.11 11.7 14.6 NA
12/19/97 Network Long Distance Inc. 169.0 2.43 NMF NMF NA
11/26/97 ACC Corp. (2) 930.2 2.64 21.2 41.2 NMF
11/10/97 MCI Communications (1) 47,300.0 2.41 16.9 70.1 NA
09/18/97 USLD Communications Corp. (2) 407.1 1.92 39.5 NMF NMF
06/16/97 Consolidated Communications Inc. 423.0 1.65 9.1 15.1 NA
06/13/97 Pacific Telecom (PacifiCorp) 2,225.0 4.21 8.5 14.6 NA
06/06/97 Telco Communications Group Inc. (2) 1,017.6 2.37 20.0 23.7 43.9
04/22/96 NYNEX Corp (2) 25,600.0 1.92 5.5 13.1 20.0
- --------------------------------------------------------------------------------------------------------------------
Low $23.8 1.24 5.5 11.9 20.0
High $68,400.0 4.65 39.5 70.1 43.9
Median $2,117.0 2.66 12.9 16.3 32.0
Mean $14,480.6 2.78 15.0 24.8 32.0
- --------------------------------------------------------------------------------------------------------------------
Proj 1998
- --------------------------------------------------------------------------------------------------------------------
05/29/98 Emerging Communications (3) $280.5 3.33 7.1 13.4 16.0
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
Source: Securities Data Corporation and Mergerstat.
Note: Includes completed and disclosed domestic transactions >$25MM in the 4813
SIC code range from June 1997 to present. In addition, the Bell
Atlantic/NYNEX merger is included.
(1) Pending. Sources include Bloomberg and news releases. Financial
Information as of Fiscal Year End December 1997.
(2) Enterprise value is used instead of transaction value, which is calculated
by multiplying the number of shares outstanding by the offering price and
then by adding the cost of convertible securities, short term debt,
straight debt, convertible debt and preferred equity minus cash and
marketable securities.
(3) Transaction value based on proposed offer price of $10.25 per share.
15
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
TARGET: PUERTO RICO TELEPHONE COMPANY (PRTC) TRANSACTION PRICING: ($ IN MILLIONS)
ACQUIROR: GTE, INC. ------------------------------------------------------------
- ---------------------------------------------------- Aggregate Transaction Value (1) $3,939.2
Contingent Payout 0.0
DATE: July 29, 1998 ---
STATUS: Pending Aggregate Transaction Value (no Payout) $3,939.2
Net Debt Assumed 0.0
---
Acquisition (Equity) Price $3,939.2
Consideration Paid: Cash
TARGET BUSINESS DESCRIPTION:
- ----------------------------------------------------------------------------------------------------------------------------
PRTC is the principal subsidiary of the Puerto Rico Telephone Authority (PRTA). It is the Island's largest
provider of telecommunications services to both the business and consumer markets, including local exchange,
long-distance, wireless and Internet access services. It is also the 12th largest telco in the United States.
PRTC serves over 1.3 million access lines, over 155,000 cellular subscribers and over 237,000 paging
customers. (2)
PUERTO RICO TELEPHONE COMPANY (PRTC) FINANCIALS ($ IN MILLIONS) TRANSACTION MULTIPLES:
- ------------------------------------------------------------- ----------------------------------------------------
-------------------------
1997(2) 1996(3) Aggregate Transaction Value to: 1997
------------------------- ----
Sales $1,200.0 $1,100.00 Sales 3.28 X
Access Lines 1,500,000 NA Access Lines $2,626.1
EBIT $242.2 NA EBIT 16.26 X
Net Income $109.4 $130.0 P/E 36.01 X
1996
----
Sales 3.58 X
Book Value of Equity NA NA P/E 30.3 X
DESCRIPTION OF TRANSACTION:
- ----------------------------------------------------------------------------------------------------------------------------
GTE was announced the successful bidder against Telefonico of Spain for the 51% interest in PRTC. GTE is to
contribute $444 million in cash towards the transaction price, while the remaining $1,565 million will be raised in
the public debt market by PRTC. GTE will then sell a 5% interest to Popular, Inc. GTE has also made a commitment to freeze
rates for a period of three years and to offer a 35% discount for nonprofit, secondary and postsecondary schools.
- ----------------------------------------
(1) Based on the 51% purchase price of $2,009 million, consisting of $444 million in cash paid by GTE and $1,565 million raised in
debt and contributed as equity by PRTC.
(2) Business Wire, July 21, 1998.
(3) Telephony, April 20, 1998.
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
COMPARISON OF COMPANY PROJECTIONS
- --------------------------------------------------------------------------------
Emerging Communications
Comparison of Company Projections
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Company Cash Flow Projections as of July 7, 1997
Presentation to the Board of Directors by Prudential Securities
- --------------------------------------------------------------------------------
Projected FY
---------------------------- 3 year
1997E 1998 1999 2000 CAGR
----- ---- ---- ---- ----
Net Revenues 64,812 66,756 68,759 70,822 3.0%
EBITDA 34,924 36,204 38,918 39,651 4.3%
EBIT 20,424 21,704 24,418 25,151 7.2%
Capital Expenditures 14,500 14,500 14,500 14,500
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Company Cash Flow Projections as of March 25, 1998
Presentation to the Board of Directors by Houlihan Lokey Howard & Zukin Capital
- --------------------------------------------------------------------------------
Projected FY
Actual ----------------------------- 3 year
1997 1998(1) 1999 2000 CAGR
----- ------- ---- ---- ----
Net Revenues 73,339 82,620 85,953 89,244 6.8%
EBITDA 33,425 41,240 46,278 48,290 13.0%
EBIT 17,936 21,207 24,663 26,233 13.5%
Capital Expenditures 14,500 9,000 8,850 8,850
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Difference
- --------------------------------------------------------------------------------
Net Revenues 8,527 15,864 17,194 18,422
EBITDA (1,499) 5,036 7,360 8,639
EBIT (2,488) (497) 245 1,082
Capital Expenditures 0 (5,500) (5,650) (5,650)
- --------------------------------------------------------------------------------
(1) Includes the acquisition of the St. Martin Cellular
17
<PAGE>
- --------------------------------------------------------------------------------
RELATIVE VOLUME ANALYSIS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Emerging Communications
Relative Volume Analysis
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Total Public 90 Day Average Average
Primary Shares Public Float/ Avg. Daily Daily Vol/ Daily Vol/
Outstanding Float (1) Shares Out. Volume (2) Shares Out. Public Float
----------- ----- ----------- ------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Aliant Communications 36,203,000 32,528,581 89.85% 107,297 0.30% 0.33%
CFW Communications 13,009,000 12,260,858 94.25% 14,290 0.11% 0.12%
CT Communications 1,904,000 NA NA 192 0.01% NA
Century Telephone 91,552,000 83,260,000 90.94% 304,272 0.33% 0.37%
Conestoga Enterprises 4,626,000 4,257,862 92.04% 1,670 0.04% 0.04%
D&E Communications 7,438,000 6,796,677 91.38% 1,811 0.02% 0.03%
Hickory Tech. Corp. 4,543,000 4,320,204 95.10% 2,731 0.06% 0.06%
North Pittsburgh Systems 15,005,000 13,617,240 90.75% 8,613 0.06% 0.06%
- ---------------------------------------------------------------------------------------------------------------------------
High 91,552,000 83,260,000 95.10% 304,272 0.33% 0.37%
Low 1,904,000 4,257,862 89.85% 192 0.01% 0.03%
Mean 21,785,000 22,434,489 92.04% 55,110 0.12% 0.14%
Median 10,223,500 12,260,858 91.38% 5,672 0.06% 0.06%
- ---------------------------------------------------------------------------------------------------------------------------
Emerging Communications 10,959,000 5,254,900 47.95% 20,627 0.19% 0.39%
</TABLE>
(1) Source: Company's proxy. Public Float is defined as total shares outstanding
less shares held by insiders.
(2) Based on 90-day average daily trading activity as of May 28, 1998.
18
<PAGE>
Emerging Communications
Public Float / Shares Outstanding
[BAR GRAPH]
<PAGE>
Emerging Communications
90 Day Average Daily Trading Volume (1) / Shares Outstanding
[BAR GRAPH]
<PAGE>
Emerging Communications
90 Day Average Daily Trading Volume (1) / Public Float
[BAR GRAPH]
<PAGE>
- --------------------------------------------------------------------------------
SUPPORTING DOCUMENTS
- --------------------------------------------------------------------------------
Emerging Communications, Inc.
- --------------------------------------------------------------------------------
Atlantic Tele-Network Daily Stock Price History
- --------------------------------------------------------------------------------
Daily Price and Volume History One Year
Prior to Split-Off Announcement of ATNI
Atlantic Tele-Network
Daily Price and Volume History
[THE FOLLOWING WAS REPRESENTED BY A GRAPH IN THE PRINTED MATERIAL]
1/2/96 - 1/29/97
----------------
Date Price Volume
----- ------
1/2/96 10.88 7,800
1/3/96 10.75 73,000
1/4/96 10.88 22,300
1/5/96 11.13 2,400
1/8/96 11.00 400
1/9/96 10.75 3,900
1/10/96 10.88 8,400
1/11/96 11.00 500
1/12/96 10.75 1,400
1/15/96 10.88 5,800
1/16/96 11.00 7,100
1/17/96 10.88 11,400
1/18/96 10.75 40,100
1/19/96 10.75 24,600
1/22/96 10.75 50,800
1/23/96 10.88 8,600
1/24/96 10.75 46,600
1/25/96 10.94 17,900
1/26/96 10.88 20,300
1/29/96 11.00 25,700
1/30/96 10.97 10,600
1/31/96 11.00 26,800
2/1/96 11.13 29,400
2/2/96 11.13 24,100
2/5/96 11.13 31,300
2/6/96 11.50 18,000
2/7/96 12.50 66,700
2/8/96 14.50 213,100
2/9/96 16.13 201,700
2/12/96 16.00 169,600
2/13/96 16.75 167,900
2/14/96 17.13 71,000
2/15/96 17.00 55,900
2/16/96 17.00 54,200
2/20/96 17.00 38,200
2/21/96 19.25 171,800
2/22/96 18.25 44,200
2/23/96 18.75 67,200
2/26/96 18.50 59,900
2/27/96 19.00 16,200
2/28/96 18.75 17,900
2/29/96 18.00 37,400
3/1/96 18.00 9,100
3/4/96 19.00 105,200
3/5/96 19.75 8,800
3/6/96 20.00 80,700
3/7/96 19.25 44,600
3/8/96 19.13 43,200
3/11/96 19.25 27,100
3/12/96 18.75 6,400
3/13/96 20.50 30,100
3/14/96 20.75 42,800
3/15/96 20.50 18,400
3/18/96 19.75 11,000
3/19/96 21.00 128,600
3/20/96 21.00 8,600
3/21/96 20.25 1,700
3/22/96 21.25 33,000
3/25/96 21.75 11,800
3/26/96 20.88 14,900
3/27/96 20.50 39,900
3/28/96 20.50 4,800
3/29/96 22.50 63,800
4/1/96 23.00 23,300
4/2/96 23.00 2,100
4/3/96 21.25 56,800
4/4/96 21.75 30,000
4/8/96 21.00 22,200
4/9/96 21.50 18,200
4/10/96 21.50 7,300
4/11/96 22.50 47,500
4/12/96 22.50 98,000
4/15/96 22.63 43,400
4/16/96 23.13 37,500
4/17/96 23.50 341,700
4/18/96 22.75 65,200
4/19/96 22.75 11,000
4/22/96 22.88 73,600
4/23/96 22.75 42,300
4/24/96 22.75 133,500
4/25/96 22.25 44,300
4/26/96 22.00 198,100
4/29/96 22.13 12,800
4/30/96 22.00 87,000
5/1/96 23.00 121,800
5/2/96 22.50 42,200
5/3/96 24.75 391,400
5/6/96 25.25 110,800
5/7/96 26.25 111,300
5/8/96 26.75 472,700
5/9/96 26.75 14,600
5/10/96 26.25 103,000
5/13/96 27.25 135,700
5/14/96 26.75 30,400
5/15/96 27.25 46,000
5/16/96 27.00 17,200
5/17/96 27.00 38,000
5/20/96 26.75 21,500
5/21/96 26.25 76,900
5/22/96 26.13 46,800
5/23/96 25.50 28,400
5/24/96 25.25 24,800
5/28/96 26.25 45,200
5/29/96 25.75 85,000
5/30/96 25.50 42,000
5/31/96 26.00 74,900
6/3/96 25.75 14,900
6/4/96 25.00 109,800
6/5/96 24.75 78,800
6/6/96 24.50 92,900
6/7/96 24.25 24,200
6/10/96 23.75 52,500
6/11/96 24.50 372,800
6/12/96 24.75 260,600
6/13/96 24.38 35,000
6/14/96 24.25 242,500
6/17/96 24.88 187,800
6/18/96 25.25 111,300
6/19/96 25.50 18,000
6/20/96 24.56 130,400
6/21/96 24.50 20,900
6/24/96 24.38 23,700
6/25/96 24.25 52,800
6/26/96 23.75 22,000
6/27/96 23.50 30,900
6/28/96 24.00 65,000
7/1/96 24.00 6,500
7/2/96 23.50 20,000
7/3/96 23.69 33,800
7/5/96 23.00 7,600
7/8/96 22.13 91,800
7/9/96 22.00 79,600
7/10/96 22.25 28,900
7/11/96 21.00 77,600
7/12/96 21.50 45,300
7/15/96 20.50 16,000
7/16/96 20.50 168,800
7/17/96 20.56 48,000
7/18/96 21.00 171,200
7/19/96 21.00 169,900
7/22/96 20.75 81,500
7/23/96 20.25 89,600
7/24/96 20.88 56,700
7/25/96 20.75 38,700
7/26/96 20.88 10,200
7/29/96 20.50 44,200
7/30/96 21.25 96,200
7/31/96 21.00 17,400
8/1/96 21.25 48,200
8/2/96 20.50 18,200
8/5/96 20.00 39,200
8/6/96 20.25 11,000
8/7/96 20.38 8,500
8/8/96 20.25 43,500
8/9/96 20.00 12,000
8/12/96 18.75 78,200
8/13/96 18.75 29,100
8/14/96 19.25 112,700
8/15/96 21.13 121,900
8/16/96 21.25 86,300
8/19/96 21.13 47,200
8/20/96 21.25 32,700
8/21/96 21.75 133,100
8/22/96 22.38 117,600
8/23/96 22.75 73,900
8/26/96 24.50 110,700
8/27/96 23.00 83,400
8/28/96 23.00 41,800
8/29/96 22.50 36,500
8/30/96 22.63 123,200
9/3/96 22.63 3,300
9/4/96 22.75 9,300
9/5/96 22.25 69,900
9/6/96 20.38 44,300
9/9/96 20.75 74,400
9/10/96 20.50 65,000
9/11/96 19.75 29,700
9/12/96 19.50 67,900
9/13/96 19.75 84,700
9/16/96 19.75 62,300
9/17/96 20.25 54,200
9/18/96 22.00 210,600
9/19/96 21.75 160,800
9/20/96 21.88 90,000
9/23/96 22.00 34,800
9/24/96 21.25 45,500
9/25/96 20.50 37,100
9/26/96 20.50 48,400
9/27/96 19.75 53,900
9/30/96 20.25 27,800
10/1/96 19.38 24,500
10/2/96 19.25 27,700
10/3/96 19.50 34,300
10/4/96 20.00 35,600
10/7/96 19.75 25,400
10/8/96 20.50 16,000
10/9/96 20.25 25,400
10/10/96 20.25 18,400
10/11/96 20.00 9,900
10/14/96 20.50 8,100
10/15/96 20.25 12,100
10/16/96 20.00 14,700
10/17/96 20.00 4,300
10/18/96 17.63 117,100
10/21/96 18.00 51,800
10/22/96 18.50 28,300
10/23/96 18.00 15,900
10/24/96 18.25 7,100
10/25/96 19.25 35,900
10/28/96 19.25 23,400
10/29/96 18.00 20,500
10/30/96 18.25 3,000
10/31/96 17.63 16,100
11/1/96 17.00 55,500
11/4/96 18.00 50,400
11/5/96 18.38 22,400
11/6/96 19.00 14,700
11/7/96 19.13 23,900
11/8/96 19.25 9,800
11/11/96 18.88 800
11/12/96 18.25 18,000
11/13/96 18.63 17,800
11/14/96 18.50 46,100
11/15/96 18.25 28,100
11/18/96 17.25 33,200
11/19/96 17.25 11,200
11/20/96 17.75 92,700
11/21/96 18.63 60,200
11/22/96 18.75 36,400
11/25/96 19.00 11,100
11/26/96 19.63 66,000
11/27/96 19.50 16,600
11/29/96 18.88 4,200
12/2/96 18.63 43,700
12/3/96 18.25 10,800
12/4/96 18.00 12,300
12/5/96 18.25 47,400
12/6/96 18.19 24,300
12/9/96 16.00 150,700
12/10/96 16.38 64,700
12/11/96 15.13 75,300
12/12/96 15.50 29,600
12/13/96 15.50 54,800
12/16/96 16.00 137,900
12/17/96 17.38 33,800
12/18/96 17.88 85,400
12/19/96 17.25 49,900
12/20/96 17.25 14,100
12/23/96 17.25 64,700
12/24/96 17.00 19,300
12/26/96 16.50 41,800
12/27/96 16.13 24,200
12/30/96 15.94 73,900
12/31/96 15.25 88,500
1/2/97 15.50 11,400
1/3/97 16.50 44,800
1/6/97 17.50 39,200
1/7/97 17.00 42,100
1/8/97 16.25 18,900
1/9/97 16.50 21,300
1/10/97 16.00 35,500
1/13/97 16.25 10,300
1/14/97 15.75 33,400
1/15/97 15.50 44,200
1/16/97 15.75 28,000
1/17/97 15.75 13,900
1/20/97 15.38 10,900
1/21/97 15.88 6,900
1/22/97 15.88 20,300
1/23/97 15.75 38,200
1/24/97 16.25 41,300
1/27/97 16.50 6,400
1/28/97 16.25 43,100
Daily Price and Volume History From
Announcement of Split-Off Until Closing
Atlantic Tele-Network
Daily Price and Volume History
[THE FOLLOWING WAS REPRESENTED BY A GRAPH IN THE PRINTED MATERIAL]
1/30/97-12/31/97
----------------
Date Price Volume
----- ------
1/30/97 13.25 225,800
1/31/97 12.50 40,500
2/3/97 12.75 14,500
2/4/97 12.75 15,500
2/5/97 12.13 51,200
2/6/97 12.75 19,400
2/7/97 12.75 41,500
2/10/97 11.88 60,400
2/11/97 12.50 15,800
2/12/97 11.00 22,200
2/13/97 12.00 12,100
2/14/97 12.00 20,500
2/18/97 12.25 1,800
2/19/97 12.25 9,100
2/20/97 11.50 7,800
2/21/97 12.25 94,700
2/24/97 12.75 153,600
2/25/97 12.25 53,300
2/26/97 13.00 23,700
2/27/97 13.00 524,400
2/28/97 12.50 1,200
3/3/97 13.00 24,800
3/4/97 12.50 23,000
3/5/97 12.25 33,500
3/6/97 11.50 2,900
3/7/97 12.50 5,300
3/10/97 12.50 1,200
3/11/97 12.50 7,100
3/12/97 12.25 18,000
3/13/97 12.00 14,600
3/14/97 11.38 18,000
3/17/97 12.00 42,300
3/18/97 12.00 51,400
3/19/97 11.31 25,800
3/20/97 11.13 121,700
3/21/97 11.63 43,300
3/24/97 11.00 0
3/25/97 11.63 12,800
3/26/97 11.88 7,400
3/27/97 11.75 10,000
3/31/97 12.25 6,200
4/1/97 11.75 6,900
4/2/97 11.50 6,900
4/3/97 11.13 22,900
4/4/97 11.00 10,900
4/7/97 11.00 20,800
4/8/97 10.75 5,600
4/9/97 11.25 8,800
4/10/97 11.13 12,000
4/11/97 11.00 5,400
4/14/97 11.00 8,100
4/15/97 11.00 4,200
4/16/97 11.00 7,900
4/17/97 11.25 2,500
4/18/97 11.13 2,200
4/21/97 11.00 4,800
4/22/97 11.25 4,100
4/23/97 11.00 2,700
4/24/97 11.00 14,600
4/25/97 10.88 8,100
4/28/97 11.00 65,500
4/29/97 10.88 2,100
4/30/97 10.50 3,700
5/1/97 10.75 60,500
5/2/97 11.75 12,200
5/5/97 12.63 61,100
5/6/97 12.00 11,200
5/7/97 12.50 15,800
5/8/97 12.25 4,200
5/9/97 12.31 5,300
5/12/97 12.31 14,200
5/13/97 12.25 9,000
5/14/97 12.25 20,700
5/15/97 12.38 5,300
5/16/97 12.25 19,300
5/19/97 12.25 2,700
5/20/97 12.25 4,000
5/21/97 12.25 21,200
5/22/97 12.25 48,800
5/23/97 12.50 42,000
5/27/97 12.63 62,900
5/28/97 12.50 28,600
5/29/97 12.13 10,600
5/30/97 12.50 6,400
6/2/97 13.38 22,100
6/3/97 13.00 5,900
6/4/97 12.94 14,400
6/5/97 13.19 10,600
6/6/97 13.00 47,900
6/9/97 13.13 20,800
6/10/97 12.94 2,200
6/11/97 13.00 74,900
6/12/97 12.75 5,500
6/13/97 12.56 9,600
6/16/97 12.00 4,700
6/17/97 12.00 23,400
6/18/97 12.25 13,600
6/19/97 12.00 3,900
6/20/97 11.69 18,000
6/23/97 11.50 14,700
6/24/97 11.75 18,600
6/25/97 11.38 65,500
6/26/97 11.13 111,900
6/27/97 11.19 53,100
6/30/97 12.50 48,300
7/1/97 11.75 14,800
7/2/97 11.63 36,700
7/3/97 11.38 8,800
7/7/97 11.13 9,900
7/8/97 11.25 8,000
7/9/97 11.13 3,800
7/10/97 11.94 89,200
7/11/97 12.75 24,500
7/14/97 13.25 11,800
7/15/97 13.25 2,400
7/16/97 12.88 19,500
7/17/97 12.88 4,800
7/18/97 13.00 4,600
7/21/97 12.94 800
7/22/97 12.94 1,200
7/23/97 12.94 8,400
7/24/97 13.00 2,300
7/25/97 12.81 13,900
7/28/97 12.88 74,500
7/29/97 13.25 46,700
7/30/97 13.25 34,900
7/31/97 12.50 26,700
8/1/97 12.75 17,300
8/4/97 12.63 16,100
8/5/97 12.75 11,700
8/6/97 12.88 1,300
8/7/97 12.25 12,400
8/8/97 12.13 1,500
8/11/97 12.00 13,000
8/12/97 12.88 43,900
8/13/97 13.00 31,000
8/14/97 13.13 11,600
8/15/97 13.50 34,100
8/18/97 13.38 9,900
8/19/97 13.13 6,500
8/20/97 13.50 5,600
8/21/97 13.38 1,000
8/22/97 13.13 2,300
8/25/97 13.13 11,600
8/26/97 13.25 2,300
8/27/97 13.19 4,300
8/28/97 13.13 6,000
8/29/97 13.06 3,900
9/2/97 13.13 2,300
9/3/97 13.00 200
9/4/97 13.00 30,300
9/5/97 12.88 500
9/8/97 12.94 4,500
9/9/97 13.13 23,400
9/10/97 12.88 5,700
9/11/97 12.81 1,500
9/12/97 12.94 800
9/15/97 13.06 3,600
9/16/97 13.06 5,300
9/17/97 13.25 14,800
9/18/97 13.25 3,000
9/19/97 13.25 800
9/22/97 13.75 25,800
9/23/97 13.25 9,400
9/24/97 13.25 6,500
9/25/97 13.00 199,200
9/26/97 12.88 5,300
9/29/97 12.81 16,600
9/30/97 13.00 41,700
10/1/97 12.94 400
10/2/97 12.81 3,500
10/3/97 12.75 13,300
10/6/97 12.88 7,400
10/7/97 12.75 16,100
10/8/97 12.38 13,400
10/9/97 12.06 4,800
10/10/97 12.38 4,300
10/13/97 12.44 5,700
10/14/97 12.50 7,900
10/15/97 12.63 7,200
10/16/97 13.25 31,600
10/17/97 12.88 14,800
10/20/97 13.31 14,700
10/21/97 13.25 1,100
10/22/97 13.50 4,600
10/23/97 13.25 5,800
10/24/97 13.38 18,400
10/27/97 12.88 7,600
10/28/97 12.88 9,600
10/29/97 13.00 3,200
10/30/97 12.88 1,200
10/31/97 12.63 10,400
11/3/97 12.63 1,600
11/4/97 12.63 300
11/5/97 12.63 1,300
11/6/97 12.63 6,600
11/7/97 12.88 3,000
11/10/97 12.75 600
11/11/97 12.50 1,000
11/12/97 12.63 200
11/13/97 12.44 2,300
11/14/97 12.38 111,600
11/17/97 12.50 5,500
11/18/97 12.75 5,800
11/19/97 12.75 3,000
11/20/97 12.38 6,900
11/21/97 12.38 10,300
11/24/97 12.38 1,600
11/25/97 12.25 4,600
11/26/97 12.13 14,600
11/28/97 11.63 0
12/1/97 12.00 4,100
12/2/97 11.88 4,000
12/3/97 11.88 8,600
12/4/97 12.00 1,100
12/5/97 12.38 15,600
12/8/97 12.38 1,400
12/9/97 12.38 6,400
12/10/97 12.38 2,200
12/11/97 12.38 16,200
12/12/97 12.00 2,700
12/15/97 11.88 5,900
12/16/97 12.00 1,900
12/17/97 11.88 10,100
12/18/97 11.75 2,000
12/19/97 11.63 5,100
12/22/97 11.38 15,300
12/23/97 11.19 31,100
12/24/97 10.88 8,500
12/26/97 11.25 5,000
12/29/97 10.63 24,000
12/30/97 10.94 17,200
12/31/97 10.88 29,400
- ---------------------------------- Houlihan Lokey Howard & Zukin Capital --- 22
<PAGE>
Emerging Communications, Inc.
- --------------------------------------------------------------------------------
Comparable Companies Stock Price Index
- --------------------------------------------------------------------------------
July 1, 1997 - August 8, 1998
[THE FOLLOWING WAS REPRESENTED BY A GRAPH IN THE PRINTED MATERIAL]
7/1/97-8/10/98
-------------- average index
-------------
07/01/97 1.00
07/02/97 1.01
07/03/97 1.01
07/07/97 1.01
07/08/97 0.98
07/09/97 0.98
07/10/97 0.98
07/11/97 0.99
07/14/97 1.00
07/15/97 1.00
07/16/97 1.00
07/17/97 0.99
07/18/97 1.00
07/21/97 1.00
07/22/97 1.00
07/23/97 0.98
07/24/97 1.01
07/25/97 1.01
07/28/97 1.01
07/29/97 0.99
07/30/97 0.99
07/31/97 1.01
08/01/97 1.00
08/04/97 1.00
08/05/97 1.00
08/06/97 1.02
08/07/97 1.01
08/08/97 0.99
08/11/97 1.00
08/12/97 0.99
08/13/97 1.01
08/14/97 1.02
08/15/97 1.00
08/18/97 1.00
08/19/97 1.00
08/20/97 1.02
08/21/97 1.02
08/22/97 1.00
08/25/97 1.01
08/26/97 1.00
08/27/97 1.01
08/28/97 1.01
08/29/97 1.01
09/02/97 1.01
09/03/97 1.03
09/04/97 1.05
09/05/97 1.03
09/08/97 1.03
09/09/97 1.03
09/10/97 1.04
09/11/97 1.04
09/12/97 1.04
09/15/97 1.07
09/16/97 1.06
09/17/97 1.07
09/18/97 1.07
09/19/97 1.08
09/22/97 1.08
09/23/97 1.07
09/24/97 1.07
09/25/97 1.07
09/26/97 1.08
09/29/97 1.08
09/30/97 1.11
10/01/97 1.11
10/02/97 1.10
10/03/97 1.10
10/06/97 1.11
10/07/97 1.11
10/08/97 1.11
10/09/97 1.11
10/10/97 1.12
10/13/97 1.11
10/14/97 1.11
10/15/97 1.11
10/16/97 1.11
10/17/97 1.11
10/20/97 1.10
10/21/97 1.11
10/22/97 1.11
10/23/97 1.09
10/24/97 1.10
10/27/97 1.08
10/28/97 1.09
10/29/97 1.10
10/30/97 1.08
10/31/97 1.08
11/03/97 1.10
11/04/97 1.11
11/05/97 1.11
11/06/97 1.12
11/07/97 1.11
11/10/97 1.11
11/11/97 1.12
11/12/97 1.11
11/13/97 1.12
11/14/97 1.12
11/17/97 1.14
11/18/97 1.14
11/19/97 1.15
11/20/97 1.15
11/21/97 1.15
11/24/97 1.15
11/25/97 1.15
11/26/97 1.16
11/28/97 1.17
12/01/97 1.18
12/02/97 1.19
12/03/97 1.18
12/04/97 1.18
12/05/97 1.18
12/08/97 1.18
12/09/97 1.19
12/10/97 1.19
12/11/97 1.18
12/12/97 1.17
12/15/97 1.18
12/16/97 1.19
12/17/97 1.20
12/18/97 1.17
12/19/97 1.18
12/22/97 1.18
12/23/97 1.19
12/24/97 1.19
12/26/97 1.18
12/29/97 1.20
12/30/97 1.22
12/31/97 1.19
01/02/98 1.18
01/05/98 1.19
01/06/98 1.19
01/07/98 1.18
01/08/98 1.19
01/09/98 1.18
01/12/98 1.17
01/13/98 1.17
01/14/98 1.18
01/15/98 1.19
01/16/98 1.20
01/20/98 1.21
01/21/98 1.19
01/22/98 1.19
01/23/98 1.18
01/26/98 1.19
01/27/98 1.17
01/28/98 1.19
01/29/98 1.19
01/30/98 1.20
02/02/98 1.20
02/03/98 1.21
02/04/98 1.21
02/05/98 1.21
02/06/98 1.23
02/09/98 1.21
02/10/98 1.22
02/11/98 1.20
02/12/98 1.20
02/13/98 1.21
02/17/98 1.20
02/18/98 1.21
02/19/98 1.20
02/20/98 1.20
02/23/98 1.21
02/24/98 1.21
02/25/98 1.23
02/26/98 1.24
02/27/98 1.23
03/02/98 1.22
03/03/98 1.24
03/04/98 1.22
03/05/98 1.20
03/06/98 1.24
03/09/98 1.22
03/10/98 1.24
03/11/98 1.26
03/12/98 1.25
03/13/98 1.25
03/16/98 1.26
03/17/98 1.26
03/18/98 1.25
03/19/98 1.25
03/20/98 1.25
03/23/98 1.25
03/24/98 1.26
03/25/98 1.27
03/26/98 1.27
03/27/98 1.28
03/30/98 1.27
03/31/98 1.30
04/01/98 1.29
04/02/98 1.28
04/03/98 1.29
04/06/98 1.28
04/07/98 1.26
04/08/98 1.26
04/09/98 1.27
04/13/98 1.26
04/14/98 1.29
04/15/98 1.29
04/16/98 1.28
04/17/98 1.29
04/20/98 1.30
04/21/98 1.31
04/22/98 1.30
04/23/98 1.29
04/24/98 1.29
04/27/98 1.26
04/28/98 1.26
04/29/98 1.28
04/30/98 1.28
05/01/98 1.29
05/04/98 1.29
05/05/98 1.28
05/06/98 1.28
05/07/98 1.27
05/08/98 1.28
05/11/98 1.28
05/12/98 1.27
05/13/98 1.27
05/14/98 1.28
05/15/98 1.28
05/18/98 1.27
05/19/98 1.28
05/20/98 1.28
05/21/98 1.27
05/22/98 1.27
05/26/98 1.26
05/27/98 1.25
05/28/98 1.26
05/29/98 1.25
06/01/98 1.24
06/02/98 1.24
06/03/98 1.25
06/04/98 1.27
06/05/98 1.27
06/08/98 1.28
06/09/98 1.28
06/10/98 1.26
06/11/98 1.26
06/12/98 1.26
06/15/98 1.24
06/16/98 1.23
06/17/98 1.26
06/18/98 1.25
06/19/98 1.25
06/22/98 1.26
06/23/98 1.26
06/24/98 1.27
06/25/98 1.27
06/26/98 1.27
06/29/98 1.27
06/30/98 1.26
07/01/98 1.27
07/02/98 1.28
07/06/98 1.28
07/07/98 1.27
07/08/98 1.28
07/09/98 1.28
07/10/98 1.28
07/13/98 1.28
07/14/98 1.28
07/15/98 1.27
07/16/98 1.28
07/17/98 1.29
07/20/98 1.30
07/21/98 1.30
07/22/98 1.30
07/23/98 1.30
07/24/98 1.30
07/27/98 1.27
07/28/98 1.28
07/29/98 1.28
07/30/98 1.29
07/31/98 1.29
December 31, 1997 - August 8, 1998
[THE FOLLOWING WAS REPRESENTED BY A GRAPH IN THE PRINTED MATERIAL]
12/31/97-8/10/98
---------------- Average of index
----------------
12/31/97 1.00
01/02/98 0.99
01/05/98 1.00
01/06/98 1.00
01/07/98 0.99
01/08/98 1.00
01/09/98 0.99
01/12/98 0.98
01/13/98 0.98
01/14/98 0.99
01/15/98 0.99
01/16/98 1.00
01/20/98 1.01
01/21/98 0.99
01/22/98 1.00
01/23/98 0.99
01/26/98 0.99
01/27/98 0.97
01/28/98 0.99
01/29/98 1.00
01/30/98 1.00
02/02/98 1.00
02/03/98 1.01
02/04/98 1.00
02/05/98 1.01
02/06/98 1.02
02/09/98 1.01
02/10/98 1.01
02/11/98 1.00
02/12/98 1.00
02/13/98 1.01
02/17/98 1.00
02/18/98 1.01
02/19/98 1.00
02/20/98 1.00
02/23/98 1.01
02/24/98 1.01
02/25/98 1.03
02/26/98 1.03
02/27/98 1.03
03/02/98 1.01
03/03/98 1.03
03/04/98 1.02
03/05/98 1.00
03/06/98 1.03
03/09/98 1.02
03/10/98 1.04
03/11/98 1.05
03/12/98 1.04
03/13/98 1.04
03/16/98 1.05
03/17/98 1.05
03/18/98 1.04
03/19/98 1.04
03/20/98 1.04
03/23/98 1.04
03/24/98 1.05
03/25/98 1.05
03/26/98 1.06
03/27/98 1.06
03/30/98 1.05
03/31/98 1.07
04/01/98 1.07
04/02/98 1.06
04/03/98 1.07
04/06/98 1.06
04/07/98 1.05
04/08/98 1.05
04/09/98 1.05
04/13/98 1.04
04/14/98 1.07
04/15/98 1.07
04/16/98 1.06
04/17/98 1.07
04/20/98 1.07
04/21/98 1.07
04/22/98 1.08
04/23/98 1.06
04/24/98 1.06
04/27/98 1.05
04/28/98 1.04
04/29/98 1.06
04/30/98 1.06
05/01/98 1.06
05/04/98 1.07
05/05/98 1.07
05/06/98 1.06
05/07/98 1.06
05/08/98 1.06
05/11/98 1.06
05/12/98 1.06
05/13/98 1.06
05/14/98 1.06
05/15/98 1.07
05/18/98 1.06
05/19/98 1.07
05/20/98 1.07
05/21/98 1.06
05/22/98 1.06
05/26/98 1.05
05/27/98 1.04
05/28/98 1.05
05/29/98 1.04
06/01/98 1.04
06/02/98 1.03
06/03/98 1.04
06/04/98 1.05
06/05/98 1.05
06/08/98 1.06
06/09/98 1.06
06/10/98 1.05
06/11/98 1.04
06/12/98 1.05
06/15/98 1.03
06/16/98 1.02
06/17/98 1.04
06/18/98 1.04
06/19/98 1.04
06/22/98 1.05
06/23/98 1.04
06/24/98 1.05
06/25/98 1.05
06/26/98 1.05
06/29/98 1.05
06/30/98 1.05
07/01/98 1.05
07/02/98 1.05
07/06/98 1.06
07/07/98 1.04
07/08/98 1.06
07/09/98 1.05
07/10/98 1.05
07/13/98 1.05
07/14/98 1.05
07/15/98 1.05
07/16/98 1.05
07/17/98 1.06
07/20/98 1.07
07/21/98 1.07
07/22/98 1.07
07/23/98 1.06
07/24/98 1.06
07/27/98 1.04
07/28/98 1.05
07/29/98 1.04
07/30/98 1.06
07/31/98 1.06
- ---------------------------------- Houlihan Lokey Howard & Zukin Capital --- 23
<PAGE>
Emerging Communications, Inc.
- --------------------------------------------------------------------------------
Comparable Company Descriptions
- --------------------------------------------------------------------------------
ALIANT COMMUNICATIONS INC.
Aliant Communications Inc. (the "Company"), through subsidiaries, provides local
and long distance telephone service in Nebraska and cellular telecommunications
services in Nebraska and Iowa. The Company also sells telecommunications
products and services and provides telephone answering services. Aliant
Communications Co. (Telco), a wholly owned subsidiary, provides local and
intraLATA interexchange service to approximately 201,000 customers in 22
southeastern counties of Nebraska through 273,008 landline customer access
lines. Telco also provides cellular telecommunications services in the Lincoln,
Nebraska Metropolitan Service Area. Aliant Cellular Inc., wholly owned, provides
cellular telecommunications services in 89 of the 93 counties in Nebraska.
Aliant Systems Inc., wholly owned, sells non-regulated telecommunications
products and services, and toll services within and beyond Telco's local service
territory; and provides telephone answering services. Prairie Communications,
Inc., wholly owned, owns a 50% interest in Omaha Cellular General Partnership,
which manages a limited partnership that provides cellular telecommunications
services in Douglas and Sarpy Counties in Nebraska and Pottawattamie County,
Iowa.
Aliant Communications
Daily Stock Price and Volume History
Aliant
- ------
Price Volume
----- ------
08/11/97 21.00 154,000
08/12/97 21.00 301,000
08/13/97 21.44 145,200
08/14/97 21.50 48,500
08/15/97 21.75 34,900
08/18/97 21.25 38,100
08/19/97 22.00 102,100
08/20/97 21.88 90,700
08/21/97 22.13 101,300
08/22/97 22.13 74,700
08/25/97 22.38 75,600
08/26/97 22.38 172,200
08/27/97 22.63 205,700
08/28/97 22.19 64,400
08/29/97 22.63 47,300
09/02/97 22.56 46,100
09/03/97 22.75 58,300
09/04/97 22.88 60,500
09/05/97 22.50 61,700
09/08/97 23.44 96,500
09/09/97 23.00 85,700
09/10/97 23.00 34,800
09/11/97 23.50 74,100
09/12/97 23.69 112,700
09/15/97 24.00 24,200
09/16/97 23.63 65,700
09/17/97 23.13 44,000
09/18/97 24.00 51,200
09/19/97 24.63 211,600
09/22/97 24.50 32,000
09/23/97 23.50 58,100
09/24/97 23.50 13,300
09/25/97 22.75 28,100
09/26/97 22.94 15,300
09/29/97 23.38 87,400
09/30/97 24.25 120,300
10/01/97 24.31 59,700
10/02/97 24.69 40,400
10/03/97 24.88 181,600
10/06/97 25.00 40,300
10/07/97 25.00 61,700
10/08/97 25.25 71,300
10/09/97 25.13 27,500
10/10/97 25.13 28,000
10/13/97 24.75 33,900
10/14/97 25.25 75,900
10/15/97 25.13 46,900
10/16/97 25.19 82,700
10/17/97 25.13 41,200
10/20/97 24.88 15,500
10/21/97 25.63 59,400
10/22/97 25.88 112,200
10/23/97 25.00 26,200
10/24/97 25.00 51,700
10/27/97 24.50 124,400
10/28/97 24.88 101,500
10/29/97 25.13 27,800
10/30/97 24.75 14,400
10/31/97 25.63 39,200
11/03/97 26.75 100,800
11/04/97 26.94 114,400
11/05/97 26.88 77,000
11/06/97 26.50 81,500
11/07/97 26.69 40,000
11/10/97 27.25 96,200
11/11/97 27.50 61,100
11/12/97 27.00 31,600
11/13/97 27.63 48,600
11/14/97 27.94 154,800
11/17/97 27.88 139,800
11/18/97 27.75 141,500
11/19/97 28.06 100,300
11/20/97 28.13 211,400
11/21/97 28.00 90,400
11/24/97 28.13 69,000
11/25/97 28.50 142,300
11/26/97 28.88 208,200
11/28/97 30.25 73,300
12/01/97 30.31 179,000
12/02/97 30.50 87,600
12/03/97 30.44 227,500
12/04/97 30.38 164,600
12/05/97 30.25 226,000
12/08/97 30.13 87,900
12/09/97 30.00 19,300
12/10/97 29.19 119,700
12/11/97 28.88 39,400
12/12/97 29.00 42,800
12/15/97 28.25 51,400
12/16/97 30.00 81,100
12/17/97 30.50 49,900
12/18/97 29.38 81,700
12/19/97 30.31 51,100
12/22/97 31.44 133,300
12/23/97 31.38 154,900
12/24/97 31.50 56,100
12/26/97 31.13 4,500
12/29/97 32.00 140,300
12/30/97 32.88 84,100
12/31/97 31.38 83,100
01/02/98 30.75 58,000
01/05/98 32.56 65,000
01/06/98 31.75 133,900
01/07/98 29.75 219,200
01/08/98 30.13 112,600
01/09/98 30.00 286,600
01/12/98 30.00 84,700
01/13/98 30.50 121,300
01/14/98 32.25 224,000
01/15/98 32.19 97,100
01/16/98 33.00 133,200
01/20/98 32.56 148,000
01/21/98 32.25 74,000
01/22/98 31.00 84,200
01/23/98 31.38 56,600
01/26/98 31.38 64,800
01/27/98 30.63 52,400
01/28/98 31.19 139,000
01/29/98 30.63 61,500
01/30/98 31.25 82,400
02/02/98 31.25 30,100
02/03/98 31.44 46,200
02/04/98 31.06 129,100
02/05/98 31.75 29,900
02/06/98 32.50 87,900
02/09/98 30.44 113,300
02/10/98 30.31 140,600
02/11/98 30.75 30,200
02/12/98 30.13 31,800
02/13/98 29.75 126,700
02/17/98 27.50 361,100
02/18/98 27.25 177,700
02/19/98 26.19 186,700
02/20/98 26.50 170,600
02/23/98 26.56 191,900
02/24/98 26.50 75,600
02/25/98 27.00 107,000
02/26/98 27.13 76,700
02/27/98 26.25 39,400
03/02/98 27.19 67,900
03/03/98 28.13 149,600
03/04/98 27.88 198,800
03/05/98 27.25 86,800
03/06/98 28.75 149,600
03/09/98 28.13 18,200
03/10/98 28.75 68,600
03/11/98 29.94 72,900
03/12/98 29.25 11,900
03/13/98 28.75 31,200
03/16/98 28.50 194,600
03/17/98 28.13 37,500
03/18/98 28.00 67,600
03/19/98 29.00 37,200
03/20/98 30.00 96,300
03/23/98 29.75 74,400
03/24/98 30.50 54,600
03/25/98 31.38 30,800
03/26/98 32.25 134,100
03/27/98 31.38 117,100
03/30/98 31.00 90,300
03/31/98 34.00 328,500
04/01/98 33.63 144,100
04/02/98 32.00 61,000
04/03/98 32.00 61,700
04/06/98 32.56 11,100
04/07/98 30.75 45,300
04/08/98 30.25 28,300
04/09/98 29.88 62,400
04/13/98 29.88 19,400
04/14/98 31.00 18,200
04/15/98 31.69 58,000
04/16/98 31.00 10,400
04/17/98 31.13 15,600
04/20/98 31.13 19,500
04/21/98 31.13 28,200
04/22/98 30.63 29,900
04/23/98 30.75 36,700
04/24/98 29.00 28,100
04/27/98 27.88 60,600
04/28/98 28.25 158,300
04/29/98 28.38 88,800
04/30/98 28.38 106,200
05/01/98 28.38 35,600
05/04/98 29.13 55,300
05/05/98 27.13 243,800
05/06/98 25.63 209,300
05/07/98 25.75 86,800
05/08/98 25.56 81,800
05/11/98 26.38 191,900
05/12/98 24.50 267,100
05/13/98 25.44 373,200
05/14/98 26.00 105,700
05/15/98 25.50 62,200
05/18/98 24.38 182,900
05/19/98 24.00 457,000
05/20/98 23.63 261,500
05/21/98 23.50 176,200
05/22/98 23.75 148,300
05/26/98 23.69 127,800
05/27/98 23.63 126,100
05/28/98 23.63 338,500
05/29/98 23.19 173,500
06/01/98 23.06 134,800
06/02/98 22.50 209,700
06/03/98 22.88 96,900
06/04/98 24.25 58,200
06/05/98 24.63 97,700
06/08/98 24.56 228,400
06/09/98 24.63 108,100
06/10/98 24.69 117,300
06/11/98 24.63 357,700
06/12/98 24.69 354,800
06/15/98 24.75 210,100
06/16/98 23.69 300,500
06/17/98 24.25 326,000
06/18/98 23.56 72,200
06/19/98 24.88 140,900
06/22/98 25.19 30,900
06/23/98 25.63 120,000
06/24/98 26.00 67,800
06/25/98 26.25 67,100
06/26/98 26.13 43,800
06/29/98 26.38 53,400
06/30/98 27.44 259,800
07/01/98 27.00 154,100
07/02/98 27.44 99,700
07/06/98 27.56 77,700
07/07/98 27.25 86,800
07/08/98 27.94 135,800
07/09/98 28.44 78,300
07/10/98 28.88 229,200
07/13/98 29.25 66,400
07/14/98 29.06 113,100
07/15/98 28.81 97,200
07/16/98 28.94 101,900
07/17/98 29.25 21,800
07/20/98 29.75 234,400
07/21/98 29.06 13,000
07/22/98 29.63 38,400
07/23/98 29.25 44,200
07/24/98 28.50 75,100
07/27/98 28.19 58,600
07/28/98 27.81 50,500
07/29/98 27.81 45,600
07/30/98 27.81 204,000
07/31/98 27.03 89,000
08/03/98 26.75 33,700
08/04/98 26.25 41,600
08/05/98 26.25 32,400
08/06/98 26.69 81,300
08/07/98 28.00 99,000
08/10/98 27.69 19,800
08/11/98 26.50 71,200
08/12/98 28.00 22,300
08/13/98 28.38 42,700
08/14/98 28.06 46,900
08/17/98 28.69 58,000
08/18/98 29.19 166,200
08/19/98 29.25 133,400
08/20/98 28.25 52,600
08/21/98 27.88 76,800
08/24/98 26.56 104,000
08/25/98 27.88 43,200
08/26/98 27.06 30,000
08/27/98 25.00 62,400
08/28/98 25.69 43,100
- ---------------------------------- Houlihan Lokey Howard & Zukin Capital --- 24
<PAGE>
Emerging Communications, Inc.
- --------------------------------------------------------------------------------
Comparable Company Descriptions
- --------------------------------------------------------------------------------
CFW COMMUNICATIONS CO.
CFW Communications Co. (the "Company") provides local telephone, paging, data
and information services in Waynesboro, Covington and Clifton Forge, Virginia,
and surrounding areas. The Company owns and operates a fiber optic toll network,
provides cellular telephone service, and operates a wireless cable TV system in
Charlottesville, Virginia and nearby areas. The Company is positioned as a
diversified telecommunications provider offering a broad range of integrated
telecommunications solutions for business and residential customers. Renowned
for superior customer service, high quality and value, CFW has been Virginia's
premier telecommunications company for more than 100 years. The Company's
communications service provides a single source solution to meet customer
requirements for video, voice, and data applications. CFW Communications is the
largest independent telephone headquartered in Virginia and the 42nd largest in
the nation. Through Clifton Forge-Waynesboro Telephone Co., CFW provides local
exchange and telephone services in Waynesboro, Covington and Clifton Forge,
Virginia and surrounding areas, serving approximately 36,000 access lines. The
company also owns and operates over 450 miles of fiber optic cable in Western
and Central Virginia. CFW Communications Services Inc. provides a regional,
single point of customer contact for phone systems, paging, voicemail, data,
network access and other competitive products and services. CFW Cable Inc.
operates a wireless cable TV system in Charlottesville, Richmond and the
Shenandoah Valley and a traditional coax system in Alleghany County. CFW
Information Services Inc. provides operator based information services in the
Virginia Maryland, West Virginia and Washington, D.C. region.
CFW Communications
Daily Stock Price and Volume History
CFW
- ---
Price Volume
----- ------
08/11/97 18.00 22,300
08/12/97 18.00 7,300
08/13/97 17.63 29,700
08/14/97 18.06 3,700
08/15/97 17.63 5,300
08/18/97 18.00 10,900
08/19/97 18.00 1,500
08/20/97 18.00 13,300
08/21/97 18.00 600
08/22/97 17.50 3,400
08/25/97 17.88 12,000
08/26/97 18.50 45,800
08/27/97 19.00 28,300
08/28/97 18.25 16,700
08/29/97 18.50 8,500
09/02/97 18.50 6,000
09/03/97 19.25 1,800
09/04/97 19.00 4,100
09/05/97 18.50 8,900
09/08/97 18.50 18,000
09/09/97 18.69 22,200
09/10/97 18.75 6,100
09/11/97 19.38 13,000
09/12/97 19.50 9,400
09/15/97 19.63 30,200
09/16/97 19.38 11,500
09/17/97 19.50 9,400
09/18/97 20.00 13,400
09/19/97 19.75 4,300
09/22/97 20.00 7,800
09/23/97 19.88 2,300
09/24/97 20.50 31,300
09/25/97 20.50 22,300
09/26/97 22.13 41,800
09/29/97 21.63 13,900
09/30/97 22.13 32,600
10/01/97 21.38 3,900
10/02/97 21.13 7,800
10/03/97 20.88 5,600
10/06/97 20.63 3,400
10/07/97 20.38 14,700
10/08/97 20.50 15,100
10/09/97 20.00 1,600
10/10/97 20.50 6,900
10/13/97 19.50 2,200
10/14/97 20.00 5,100
10/15/97 19.75 4,100
10/16/97 20.25 700
10/17/97 19.75 4,800
10/20/97 19.75 300
10/21/97 20.50 2,900
10/22/97 19.88 2,200
10/23/97 19.50 4,900
10/24/97 19.50 1,000
10/27/97 18.50 8,200
10/28/97 19.75 25,100
10/29/97 19.38 10,700
10/30/97 19.38 4,500
10/31/97 19.50 5,000
11/03/97 19.50 2,700
11/04/97 19.50 200
11/05/97 20.00 8,100
11/06/97 19.88 1,900
11/07/97 19.00 4,700
11/10/97 19.50 30,300
11/11/97 20.00 400
11/12/97 20.13 11,200
11/13/97 20.13 1,000
11/14/97 20.75 2,500
11/17/97 21.38 7,200
11/18/97 21.00 6,100
11/19/97 22.50 18,700
11/20/97 22.00 8,900
11/21/97 22.25 3,200
11/24/97 22.25 23,800
11/25/97 21.88 8,700
11/26/97 22.50 46,900
11/28/97 22.75 5,800
12/01/97 23.63 33,000
12/02/97 23.25 13,700
12/03/97 23.13 10,900
12/04/97 23.00 1,300
12/05/97 23.13 8,300
12/08/97 23.00 8,800
12/09/97 23.75 39,400
12/10/97 24.00 40,500
12/11/97 23.88 13,900
12/12/97 23.88 8,000
12/15/97 24.13 42,800
12/16/97 24.13 10,100
12/17/97 24.00 5,800
12/18/97 23.75 30,400
12/19/97 23.25 6,100
12/22/97 22.75 900
12/23/97 23.00 6,500
12/24/97 23.00 5,700
12/26/97 22.63 2,300
12/29/97 23.63 26,100
12/30/97 23.25 14,000
12/31/97 22.38 19,100
01/02/98 22.00 36,700
01/05/98 21.94 26,200
01/06/98 21.94 41,200
01/07/98 21.75 3,000
01/08/98 21.88 8,700
01/09/98 22.00 2,800
01/12/98 21.50 1,300
01/13/98 21.13 12,400
01/14/98 21.38 6,900
01/15/98 21.81 9,800
01/16/98 21.63 9,100
01/20/98 21.88 6,500
01/21/98 21.88 14,400
01/22/98 22.00 11,100
01/23/98 21.88 3,700
01/26/98 21.63 7,500
01/27/98 21.38 43,600
01/28/98 21.50 16,500
01/29/98 21.94 22,400
01/30/98 21.75 32,800
02/02/98 20.88 12,100
02/03/98 20.88 10,300
02/04/98 20.75 400
02/05/98 21.00 7,800
02/06/98 21.19 2,900
02/09/98 21.38 25,200
02/10/98 21.75 18,600
02/11/98 21.38 10,500
02/12/98 21.38 14,900
02/13/98 21.25 17,400
02/17/98 21.41 22,300
02/18/98 22.00 35,300
02/19/98 21.75 20,900
02/20/98 22.63 16,000
02/23/98 23.25 15,600
02/24/98 23.00 4,100
02/25/98 24.75 21,800
02/26/98 24.75 12,300
02/27/98 24.00 17,200
03/02/98 23.50 2,100
03/03/98 23.63 3,000
03/04/98 23.00 25,000
03/05/98 23.00 7,500
03/06/98 23.50 17,800
03/09/98 23.75 6,000
03/10/98 24.50 26,400
03/11/98 25.25 14,500
03/12/98 25.00 21,300
03/13/98 26.00 33,100
03/16/98 25.50 7,200
03/17/98 26.00 19,800
03/18/98 25.88 22,900
03/19/98 25.13 15,900
03/20/98 25.13 14,100
03/23/98 25.50 25,100
03/24/98 26.00 20,800
03/25/98 26.50 11,700
03/26/98 26.50 6,000
03/27/98 26.63 17,600
03/30/98 26.38 8,000
03/31/98 26.75 27,800
04/01/98 27.00 27,200
04/02/98 27.00 28,900
04/03/98 27.13 20,600
04/06/98 26.50 7,600
04/07/98 26.25 11,100
04/08/98 26.25 12,600
04/09/98 26.63 13,000
04/13/98 26.13 2,400
04/14/98 26.13 4,900
04/15/98 26.00 15,400
04/16/98 26.13 3,600
04/17/98 26.00 30,300
04/20/98 26.00 14,600
04/21/98 26.50 11,200
04/22/98 26.06 19,500
04/23/98 25.25 15,300
04/24/98 24.75 7,400
04/27/98 24.63 16,500
04/28/98 24.50 6,500
04/29/98 24.50 17,500
04/30/98 25.88 37,500
05/01/98 26.13 2,900
05/04/98 26.00 6,600
05/05/98 25.50 20,500
05/06/98 25.63 5,300
05/07/98 25.75 3,200
05/08/98 25.75 1,000
05/11/98 25.38 23,300
05/12/98 25.50 9,800
05/13/98 25.25 33,900
05/14/98 25.03 7,900
05/15/98 24.88 13,100
05/18/98 24.75 4,900
05/19/98 25.13 9,100
05/20/98 25.19 900
05/21/98 24.88 4,500
05/22/98 24.94 5,100
05/26/98 25.00 5,300
05/27/98 25.00 3,400
05/28/98 25.00 4,100
05/29/98 25.00 3,800
06/01/98 24.50 4,100
06/02/98 24.50 3,700
06/03/98 24.75 3,900
06/04/98 24.00 18,300
06/05/98 24.50 5,000
06/08/98 24.75 6,600
06/09/98 24.44 28,500
06/10/98 24.13 10,200
06/11/98 23.50 2,600
06/12/98 23.13 1,400
06/15/98 23.75 600
06/16/98 23.13 20,600
06/17/98 23.00 4,500
06/18/98 23.00 1,400
06/19/98 23.13 7,300
06/22/98 23.25 81,700
06/23/98 23.00 26,900
06/24/98 23.38 51,000
06/25/98 23.31 14,500
06/26/98 23.06 1,700
06/29/98 24.75 4,900
06/30/98 23.25 34,600
07/01/98 23.25 9,000
07/02/98 23.50 12,800
07/06/98 23.75 600
07/07/98 23.00 9,200
07/08/98 23.50 6,200
07/09/98 22.38 14,900
07/10/98 22.38 5,400
07/13/98 22.13 6,500
07/14/98 22.25 8,600
07/15/98 21.50 37,400
07/16/98 22.03 50,300
07/17/98 21.88 11,900
07/20/98 21.75 3,400
07/21/98 22.13 74,400
07/22/98 22.03 97,700
07/23/98 21.63 11,500
07/24/98 22.25 2,300
07/27/98 21.63 900
07/28/98 21.81 3,500
07/29/98 21.38 1,900
07/30/98 22.00 11,000
07/31/98 21.50 6,400
08/03/98 20.44 14,800
08/04/98 20.50 13,000
08/05/98 20.13 22,800
08/06/98 21.25 24,300
08/07/98 20.88 6,100
08/10/98 20.75 1,900
08/11/98 21.25 12,700
08/12/98 21.38 9,300
08/13/98 21.38 8,600
08/14/98 21.50 10,800
08/17/98 21.63 20,800
08/18/98 22.81 12,600
08/19/98 22.75 10,300
08/20/98 22.38 2,900
08/21/98 22.00 5,900
08/24/98 21.63 1,300
08/25/98 22.00 4,900
08/26/98 22.00 8,400
08/27/98 21.50 2,800
08/28/98 22.13 7,300
- ---------------------------------- Houlihan Lokey Howard & Zukin Capital --- 25
<PAGE>
Emerging Communications, Inc.
- --------------------------------------------------------------------------------
Comparable Company Descriptions
- --------------------------------------------------------------------------------
CT COMMUNICATIONS, INC.
CT Communications, Inc. (the "Company"), through subsidiaries, provides local
and long distance telephone services to customers in the counties of Cabarrus,
Stanly and Rowan, North Carolina. The Company also provides cellular mobile
telephone service. CTC Long Distance Services, wholly owned, purchases long
distance capacity in bulk from interexchange carriers and resells it to
subscribers on a discounted retail basis. CT Cellular, Inc., wholly owned,
provides cellular mobile telephone service through ownership of a 24.5% interest
in Rural Service Area (RSA) 4/5, comprised of Anson, Lincoln, Montgomery and
Richmond Counties, North Carolina and a 50% interest in RSA 15, comprised of
Cabarrus, Stanly and parts of Iredell and Rowan Counties, North Carolina.
CT Communications
Daily Stock Price and Volume History
CT Comm
- -------
Price Volume
----- ------
08/11/97 114.67 0
08/12/97 115.33 0
08/13/97 123.33 150
08/14/97 123.00 300
08/15/97 123.00 0
08/18/97 123.00 0
08/19/97 123.00 0
08/20/97 123.00 0
08/21/97 123.33 825
08/22/97 123.33 0
08/25/97 123.33 0
08/26/97 123.33 0
08/27/97 123.33 0
08/28/97 123.33 0
08/29/97 123.33 0
09/02/97 123.33 0
09/03/97 123.33 0
09/04/97 130.00 3,100
09/05/97 130.00 0
09/08/97 128.00 100
09/09/97 128.00 100
09/10/97 128.00 350
09/11/97 128.00 0
09/12/97 128.00 0
09/15/97 128.00 0
09/16/97 128.00 0
09/17/97 128.00 0
09/18/97 128.00 0
09/19/97 128.00 0
09/22/97 128.00 0
09/23/97 128.00 0
09/24/97 128.00 300
09/25/97 128.00 0
09/26/97 128.13 200
09/29/97 128.13 0
09/30/97 128.13 0
10/01/97 128.13 0
10/02/97 128.13 0
10/03/97 128.13 0
10/06/97 128.13 0
10/07/97 130.00 3,800
10/08/97 130.00 0
10/09/97 130.00 0
10/10/97 130.00 100
10/13/97 130.00 0
10/14/97 130.13 300
10/15/97 130.13 0
10/16/97 130.13 0
10/17/97 130.13 0
10/20/97 130.13 0
10/21/97 130.13 0
10/22/97 130.13 0
10/23/97 130.13 0
10/24/97 130.13 0
10/27/97 130.13 0
10/28/97 130.13 2,000
10/29/97 130.13 0
10/30/97 130.13 0
10/31/97 127.50 100
11/03/97 127.50 0
11/04/97 127.50 0
11/05/97 127.50 0
11/06/97 127.50 0
11/07/97 127.50 0
11/10/97 127.50 0
11/11/97 127.50 0
11/12/97 128.00 1,650
11/13/97 128.00 0
11/14/97 128.00 0
11/17/97 130.00 100
11/18/97 130.13 700
11/19/97 130.13 0
11/20/97 130.13 0
11/21/97 125.50 100
11/24/97 125.50 0
11/25/97 125.50 0
11/26/97 125.50 0
11/28/97 125.50 0
12/01/97 125.50 0
12/02/97 131.00 200
12/03/97 130.50 100
12/04/97 126.00 0
12/05/97 126.00 0
12/08/97 126.00 0
12/09/97 126.00 0
12/10/97 126.00 0
12/11/97 126.00 0
12/12/97 126.00 0
12/15/97 131.00 5,600
12/16/97 126.00 0
12/17/97 126.00 300
12/18/97 126.00 0
12/19/97 126.00 0
12/22/97 126.00 0
12/23/97 131.50 200
12/24/97 131.00 150
12/26/97 126.50 0
12/29/97 126.50 0
12/30/97 134.00 1,350
12/31/97 126.50 0
01/02/98 126.50 0
01/05/98 126.50 0
01/06/98 126.50 0
01/07/98 126.50 0
01/08/98 126.50 0
01/09/98 126.50 0
01/12/98 126.50 0
01/13/98 126.50 0
01/14/98 126.50 0
01/15/98 126.50 0
01/16/98 126.50 0
01/20/98 126.50 100
01/21/98 126.00 0
01/22/98 126.00 0
01/23/98 126.00 0
01/26/98 126.00 0
01/27/98 126.00 100
01/28/98 131.00 300
01/29/98 126.00 0
01/30/98 131.00 500
02/02/98 126.00 0
02/03/98 126.00 0
02/04/98 126.00 0
02/05/98 126.00 0
02/06/98 131.00 700
02/09/98 126.00 0
02/10/98 126.00 0
02/11/98 126.00 0
02/12/98 126.00 0
02/13/98 126.00 0
02/17/98 126.00 0
02/18/98 131.00 450
02/19/98 126.00 0
02/20/98 126.00 0
02/23/98 126.00 0
02/24/98 126.00 0
02/25/98 126.00 0
02/26/98 126.00 0
02/27/98 126.00 0
03/02/98 126.00 0
03/03/98 126.00 0
03/04/98 126.00 0
03/05/98 126.00 0
03/06/98 126.00 0
03/09/98 126.00 0
03/10/98 133.00 100
03/11/98 133.00 0
03/12/98 131.00 550
03/13/98 131.00 5,450
03/16/98 135.00 200
03/17/98 135.00 0
03/18/98 135.00 0
03/19/98 131.00 100
03/20/98 130.00 50
03/23/98 131.00 100
03/24/98 131.00 0
03/25/98 131.00 0
03/26/98 131.00 0
03/27/98 131.00 50
03/30/98 126.00 200
03/31/98 131.00 100
04/01/98 127.00 0
04/02/98 127.00 0
04/03/98 127.00 150
04/06/98 127.00 0
04/07/98 127.00 0
04/08/98 131.00 850
04/09/98 131.00 400
04/13/98 135.00 750
04/14/98 135.00 0
04/15/98 135.00 0
04/16/98 135.00 0
04/17/98 135.00 0
04/20/98 135.00 0
04/21/98 135.00 0
04/22/98 135.00 0
04/23/98 135.00 0
04/24/98 135.00 0
04/27/98 131.00 900
04/28/98 131.00 0
04/29/98 131.00 0
04/30/98 131.00 0
05/01/98 131.00 0
05/04/98 131.00 0
05/05/98 131.00 0
05/06/98 131.00 0
05/07/98 131.00 3,100
05/08/98 131.00 0
05/11/98 131.00 0
05/12/98 128.00 150
05/13/98 131.00 50
05/14/98 128.00 250
05/15/98 129.00 200
05/18/98 129.00 0
05/19/98 129.00 0
05/20/98 131.00 200
05/21/98 131.00 0
05/22/98 131.00 600
05/26/98 131.00 0
05/27/98 131.00 600
05/28/98 131.00 0
05/29/98 131.00 0
06/01/98 131.00 300
06/02/98 131.00 0
06/03/98 131.00 0
06/04/98 131.00 100
06/05/98 128.00 0
06/08/98 131.00 300
06/09/98 131.00 350
06/10/98 129.00 0
06/11/98 128.00 0
06/12/98 131.00 200
06/15/98 128.00 0
06/16/98 128.00 0
06/17/98 131.00 100
06/18/98 130.00 950
06/19/98 128.00 50
06/22/98 128.00 0
06/23/98 128.00 0
06/24/98 131.00 200
06/25/98 128.00 0
06/26/98 128.00 0
06/29/98 128.00 0
06/30/98 128.00 0
07/01/98 128.00 0
07/02/98 131.00 300
07/06/98 131.00 1,800
07/07/98 131.00 300
07/08/98 131.00 650
07/09/98 129.00 0
07/10/98 131.00 150
07/13/98 129.00 0
07/14/98 134.00 100
07/15/98 129.00 0
07/16/98 129.00 0
07/17/98 129.00 0
07/20/98 129.00 0
07/21/98 130.88 200
07/22/98 129.50 150
07/23/98 129.00 0
07/24/98 130.00 150
07/27/98 129.00 0
07/28/98 130.00 0
07/29/98 130.00 0
07/30/98 130.00 0
07/31/98 131.00 1,050
08/03/98 131.00 2,250
08/04/98 130.50 250
08/05/98 130.00 0
08/06/98 130.50 100
08/07/98 131.00 850
08/10/98 130.00 0
08/11/98 130.88 200
08/12/98 130.00 0
08/13/98 131.00 850
08/14/98 132.25 50
08/17/98 130.00 0
08/18/98 130.00 0
08/19/98 130.00 0
08/20/98 130.00 0
08/21/98 130.00 0
08/24/98 131.00 1,800
08/25/98 132.00 350
08/26/98 130.50 0
08/27/98 130.50 0
08/28/98 130.50 0
- ---------------------------------- Houlihan Lokey Howard & Zukin Capital --- 26
<PAGE>
Emerging Communications, Inc.
- --------------------------------------------------------------------------------
Comparable Company Descriptions
- --------------------------------------------------------------------------------
CENTURY TELEPHONE ENTERPRISES, INC.
Century Telephone Enterprises, Inc. (the "Company"), through subsidiaries,
provides traditional local exchange telephone service mainly in rural, suburban
and small urban areas in 21 states; and provides cellular telephone
communications service. Through its December 1, 1997 acquisition of Pacific
Telecom, Inc. for $1.503 billion, the Company (i) acquired Pacific Telecom,
Inc., on December 1, 1997 for $1.503 billion cash. As a result, the company
acquired over 600,000 telephone access lines in four Midwestern states, seven
Western states and Alaska; (ii) over 88,000 cellular customers in ten markets
and minority equity interests in 12 additional cellular markets; and (iii)
various other wireless, cable television and other communications assets. The
Company's largest customer bases are located in Wisconsin, Louisiana, Michigan,
Ohio, Washington, Alaska, Colorado, Oregon and Montana. The Company also
provides cellular telephone communications service to about 570,000 customers in
21 Metropolitan Statistical Areas (MSAs) and 23 Rural Service Areas (RSAs). The
Company's cellular operations owned about 8.1 million pops (the estimated
population of licensed cellular telephone markets multiplied by the Company's
proportionate equity interest in the licensed operators thereof). At December
31, 1997, the Company also owned minority equity interests in 12 MSAs and 22
RSAs, representing about 2.2 million pops. The company also provides long
distance, operator, cable television and interactive services in certain local
and regional markets, as well as certain printing and related services.
Subsidiaries also install fiber optic cable in high traffic routes in certain
areas in which its subsidiaries operate and provide alternative routing of
telephone service over fiber optic cable networks in several strategic operating
areas.
Century Communications
Daily Stock Price and Volume History
Century Tel Enterprises Inc.
- ----------------------------
Price Volume
----- ------
08/11/97 25.13 215,550
08/12/97 24.71 184,950
08/13/97 24.71 114,000
08/14/97 24.67 45,900
08/15/97 24.71 62,250
08/18/97 24.50 149,100
08/19/97 24.79 190,500
08/20/97 24.96 128,250
08/21/97 25.00 221,100
08/22/97 24.92 195,450
08/25/97 24.92 449,250
08/26/97 24.67 137,850
08/27/97 24.92 82,800
08/28/97 24.50 188,550
08/29/97 24.21 90,750
09/02/97 25.33 180,600
09/03/97 25.46 106,350
09/04/97 24.71 307,500
09/05/97 25.33 112,050
09/08/97 25.50 123,000
09/09/97 25.71 121,200
09/10/97 25.63 60,900
09/11/97 25.79 323,700
09/12/97 26.46 255,900
09/15/97 26.79 202,050
09/16/97 26.92 395,700
09/17/97 27.08 180,900
09/18/97 26.96 265,950
09/19/97 26.96 325,350
09/22/97 27.42 174,450
09/23/97 27.29 216,900
09/24/97 27.67 120,450
09/25/97 27.79 144,450
09/26/97 27.71 266,250
09/29/97 27.92 69,600
09/30/97 29.33 180,900
10/01/97 29.83 363,300
10/02/97 30.04 417,600
10/03/97 29.63 381,600
10/06/97 29.33 216,000
10/07/97 29.63 178,950
10/08/97 29.29 173,250
10/09/97 29.63 155,850
10/10/97 29.88 231,150
10/13/97 29.79 52,800
10/14/97 29.83 223,650
10/15/97 29.75 363,150
10/16/97 29.75 245,100
10/17/97 29.67 127,800
10/20/97 29.54 127,200
10/21/97 29.50 151,350
10/22/97 29.13 230,400
10/23/97 29.04 312,150
10/24/97 29.33 475,500
10/27/97 27.33 194,700
10/28/97 28.08 307,050
10/29/97 28.21 121,800
10/30/97 28.04 100,500
10/31/97 28.29 146,850
11/03/97 28.75 141,300
11/04/97 28.88 68,700
11/05/97 28.46 65,400
11/06/97 28.58 102,750
11/07/97 28.04 98,250
11/10/97 28.25 100,200
11/11/97 28.08 138,300
11/12/97 27.42 120,750
11/13/97 27.42 231,150
11/14/97 27.79 203,400
11/17/97 28.54 59,550
11/18/97 28.63 171,750
11/19/97 28.83 116,100
11/20/97 29.83 210,750
11/21/97 30.17 393,150
11/24/97 30.04 437,400
11/25/97 30.42 375,150
11/26/97 30.63 184,800
11/28/97 30.71 94,650
12/01/97 31.17 216,600
12/02/97 30.83 180,000
12/03/97 30.58 205,950
12/04/97 31.33 168,750
12/05/97 31.08 131,550
12/08/97 30.83 83,400
12/09/97 30.50 189,450
12/10/97 31.46 163,350
12/11/97 31.17 89,250
12/12/97 31.42 128,100
12/15/97 32.00 170,850
12/16/97 32.67 706,650
12/17/97 32.13 253,050
12/18/97 31.96 230,850
12/19/97 31.96 195,150
12/22/97 32.04 153,450
12/23/97 32.08 714,450
12/24/97 32.42 258,750
12/26/97 32.08 76,650
12/29/97 32.08 178,500
12/30/97 33.54 242,850
12/31/97 33.21 93,150
01/02/98 32.92 179,700
01/05/98 33.54 522,900
01/06/98 34.88 471,900
01/07/98 34.17 361,500
01/08/98 33.88 229,050
01/09/98 33.17 250,200
01/12/98 32.63 326,400
01/13/98 33.29 266,850
01/14/98 33.83 247,800
01/15/98 33.83 346,800
01/16/98 34.33 126,600
01/20/98 34.42 220,800
01/21/98 34.29 214,050
01/22/98 34.33 370,800
01/23/98 34.38 187,050
01/26/98 34.67 175,950
01/27/98 35.04 244,800
01/28/98 34.67 118,350
01/29/98 34.54 501,450
01/30/98 35.17 378,900
02/02/98 35.79 324,750
02/03/98 36.54 516,000
02/04/98 38.00 579,900
02/05/98 37.50 441,450
02/06/98 37.88 438,150
02/09/98 37.42 387,300
02/10/98 37.42 366,900
02/11/98 37.21 201,750
02/12/98 37.33 253,050
02/13/98 37.92 478,950
02/17/98 38.50 267,300
02/18/98 39.67 425,400
02/19/98 38.92 794,850
02/20/98 38.79 341,550
02/23/98 39.17 274,050
02/24/98 39.08 238,350
02/25/98 39.54 245,400
02/26/98 40.58 261,900
02/27/98 40.67 224,550
03/02/98 40.29 672,300
03/03/98 39.96 529,500
03/04/98 39.00 483,450
03/05/98 38.50 390,150
03/06/98 39.17 373,500
03/09/98 39.33 364,950
03/10/98 39.29 211,350
03/11/98 39.29 267,150
03/12/98 40.25 280,350
03/13/98 40.67 353,400
03/16/98 40.46 247,800
03/17/98 40.42 176,400
03/18/98 40.50 201,450
03/19/98 39.50 288,900
03/20/98 39.67 519,450
03/23/98 39.71 230,250
03/24/98 39.75 207,150
03/25/98 39.58 348,900
03/26/98 40.08 202,650
03/27/98 39.83 226,350
03/30/98 39.88 188,850
03/31/98 40.75 630,450
04/01/98 41.06 314,700
04/02/98 42.00 365,800
04/03/98 42.75 337,000
04/06/98 42.06 303,100
04/07/98 41.69 230,400
04/08/98 41.63 232,100
04/09/98 42.44 434,200
04/13/98 43.31 375,200
04/14/98 44.44 504,000
04/15/98 44.13 211,800
04/16/98 43.94 398,500
04/17/98 44.19 136,400
04/20/98 45.00 261,500
04/21/98 45.00 165,300
04/22/98 44.56 152,500
04/23/98 43.69 168,500
04/24/98 43.31 138,200
04/27/98 41.50 263,900
04/28/98 41.31 315,400
04/29/98 41.56 303,900
04/30/98 42.56 420,600
05/01/98 43.50 209,400
05/04/98 43.63 113,400
05/05/98 44.31 199,300
05/06/98 45.06 430,600
05/07/98 44.00 223,700
05/08/98 45.13 134,100
05/11/98 45.50 230,100
05/12/98 45.69 201,000
05/13/98 45.69 151,600
05/14/98 46.13 273,800
05/15/98 46.13 362,800
05/18/98 46.25 232,000
05/19/98 47.06 431,100
05/20/98 47.06 285,500
05/21/98 47.06 295,700
05/22/98 46.63 123,900
05/26/98 45.56 134,200
05/27/98 44.00 253,000
05/28/98 44.44 197,900
05/29/98 44.31 144,300
06/01/98 45.00 174,300
06/02/98 45.13 182,700
06/03/98 44.94 150,000
06/04/98 46.13 235,700
06/05/98 47.31 175,700
06/08/98 49.31 430,500
06/09/98 48.25 331,200
06/10/98 48.06 325,100
06/11/98 47.63 282,800
06/12/98 46.94 230,200
06/15/98 45.00 178,900
06/16/98 45.19 311,600
06/17/98 47.06 273,500
06/18/98 46.44 167,700
06/19/98 45.44 267,300
06/22/98 47.25 180,800
06/23/98 47.56 197,400
06/24/98 46.69 296,100
06/25/98 46.69 145,400
06/26/98 47.13 124,900
06/29/98 46.81 99,000
06/30/98 45.88 143,700
07/01/98 46.31 132,300
07/02/98 47.81 262,200
07/06/98 47.81 196,000
07/07/98 48.56 175,600
07/08/98 48.88 147,200
07/09/98 48.50 239,900
07/10/98 48.31 165,900
07/13/98 48.88 86,400
07/14/98 49.00 177,300
07/15/98 49.06 125,500
07/16/98 49.31 223,900
07/17/98 50.44 278,500
07/20/98 51.31 301,700
07/21/98 51.50 245,700
07/22/98 50.88 316,900
07/23/98 50.38 168,600
07/24/98 50.44 213,700
07/27/98 48.63 258,500
07/28/98 48.88 502,100
07/29/98 50.50 871,200
07/30/98 50.75 445,600
07/31/98 49.75 300,000
08/03/98 50.00 184,700
08/04/98 48.50 490,300
08/05/98 48.00 291,500
08/06/98 49.75 202,100
08/07/98 49.38 219,400
08/10/98 48.75 142,300
08/11/98 47.63 241,300
08/12/98 47.88 148,500
08/13/98 47.94 179,800
08/14/98 48.56 404,700
08/17/98 49.13 314,400
08/18/98 49.94 222,700
08/19/98 49.50 234,900
08/20/98 49.50 223,000
08/21/98 47.63 361,600
08/24/98 49.19 256,800
08/25/98 49.94 227,700
08/26/98 49.50 587,000
08/27/98 47.69 157,200
08/28/98 47.00 227,400
- ---------------------------------- Houlihan Lokey Howard & Zukin Capital --- 27
<PAGE>
Emerging Communications, Inc.
- --------------------------------------------------------------------------------
Comparable Company Descriptions
- --------------------------------------------------------------------------------
CONESTOGA ENTERPRISES, INC.
Conestoga Enterprises, Inc. (the "Company"), through subsidiaries, furnishes
communication services, mainly local and toll telephone service, to parts of six
counties in the Commonwealth of Pennsylvania. The Company also resells long
distance service; and provides pager services.
The Company, through wholly owned Conestoga Telephone & Telegraph Co., provides
communication services to an area of approximately 300 square miles which
includes parts of Berks, Chester, Lancaster, and Montgomery counties in
Pennsylvania, and includes a population of approximately 120,400; and, through
wholly owned Buffalo Valley Telephone. The Company serves some 36,500 people in
Union and Northcumberland counties in Pennsylvania. The Company's services are
distributed through its telephone exchanges and system of overhead and
underground wire and cables. The Company also has interests in two joint
ventures which provide cellular telephone services. As of December 31, 1996, the
Company had 72,266 access lines in service, including approximately 21,000 lines
serving business customers.
Conestoga Communications
Daily Stock Price and Volume History
Conestoga
- ---------
Price Volume
----- ------
08/11/97 27.00 0
08/12/97 27.00 0
08/13/97 27.50 8,300
08/14/97 27.38 1,500
08/15/97 27.50 2,200
08/18/97 27.25 1,000
08/19/97 27.50 1,500
08/20/97 27.25 0
08/21/97 27.50 500
08/22/97 27.25 0
08/25/97 27.25 0
08/26/97 27.25 0
08/27/97 27.50 800
08/28/97 28.00 1,000
08/29/97 28.06 7,200
09/02/97 28.50 3,800
09/03/97 28.00 0
09/04/97 28.50 8,100
09/05/97 28.75 5,800
09/08/97 28.56 3,000
09/09/97 28.50 0
09/10/97 28.75 600
09/11/97 28.50 0
09/12/97 28.50 0
09/15/97 28.50 800
09/16/97 29.00 800
09/17/97 28.50 0
09/18/97 28.50 1,400
09/19/97 28.50 3,200
09/22/97 28.50 10,500
09/23/97 28.50 500
09/24/97 28.50 1,600
09/25/97 28.50 300
09/26/97 28.50 0
09/29/97 28.50 0
09/30/97 29.00 400
10/01/97 28.50 0
10/02/97 28.56 5,700
10/03/97 28.50 200
10/06/97 28.50 0
10/07/97 28.56 5,000
10/08/97 28.50 1,100
10/09/97 28.75 4,800
10/10/97 28.38 0
10/13/97 28.38 200
10/14/97 28.38 100
10/15/97 28.50 1,700
10/16/97 28.88 500
10/17/97 29.13 3,000
10/20/97 28.50 0
10/21/97 28.75 8,700
10/22/97 28.50 1,200
10/23/97 28.50 2,700
10/24/97 28.50 0
10/27/97 28.50 3,200
10/28/97 28.75 900
10/29/97 28.38 700
10/30/97 28.25 0
10/31/97 28.25 0
11/03/97 28.75 200
11/04/97 28.63 200
11/05/97 28.00 3,900
11/06/97 28.56 6,400
11/07/97 28.50 0
11/10/97 28.56 3,600
11/11/97 28.50 100
11/12/97 28.75 1,200
11/13/97 28.56 1,000
11/14/97 28.50 0
11/17/97 28.50 0
11/18/97 29.38 200
11/19/97 29.38 800
11/20/97 28.50 200
11/21/97 28.50 0
11/24/97 28.50 400
11/25/97 28.50 1,700
11/26/97 28.50 0
11/28/97 28.50 0
12/01/97 28.50 200
12/02/97 28.75 400
12/03/97 28.75 600
12/04/97 29.50 6,400
12/05/97 29.00 0
12/08/97 29.00 0
12/09/97 29.63 1,000
12/10/97 29.63 6,800
12/11/97 29.63 400
12/12/97 28.75 0
12/15/97 28.75 6,300
12/16/97 28.75 3,600
12/17/97 29.50 800
12/18/97 28.75 1,000
12/19/97 29.50 1,000
12/22/97 28.75 0
12/23/97 29.75 1,500
12/24/97 28.75 0
12/26/97 28.81 800
12/29/97 30.00 1,500
12/30/97 29.25 0
12/31/97 28.75 0
01/02/98 28.75 100
01/05/98 28.75 0
01/06/98 28.75 200
01/07/98 28.75 200
01/08/98 29.63 1,500
01/09/98 30.25 2,600
01/12/98 29.25 300
01/13/98 29.50 300
01/14/98 29.00 2,400
01/15/98 29.63 5,700
01/16/98 30.13 1,600
01/20/98 30.13 0
01/21/98 30.50 6,300
01/22/98 30.13 0
01/23/98 30.13 0
01/26/98 31.38 300
01/27/98 30.75 1,300
01/28/98 32.00 4,500
01/29/98 30.75 0
01/30/98 32.25 100
02/02/98 32.25 700
02/03/98 32.25 1,100
02/04/98 31.00 1,500
02/05/98 31.31 0
02/06/98 30.75 0
02/09/98 31.00 2,200
02/10/98 31.50 700
02/11/98 31.50 3,900
02/12/98 31.50 3,600
02/13/98 32.25 200
02/17/98 31.50 0
02/18/98 31.50 100
02/19/98 31.50 200
02/20/98 32.00 600
02/23/98 31.50 0
02/24/98 31.50 0
02/25/98 32.00 200
02/26/98 31.09 17,600
02/27/98 32.25 3,000
03/02/98 31.00 500
03/03/98 32.25 3,100
03/04/98 31.00 1,000
03/05/98 31.00 500
03/06/98 32.25 1,200
03/09/98 31.00 100
03/10/98 31.25 8,500
03/11/98 32.25 9,700
03/12/98 32.00 2,400
03/13/98 31.50 400
03/16/98 31.88 1,000
03/17/98 31.63 900
03/18/98 31.38 9,400
03/19/98 32.25 100
03/20/98 31.50 300
03/23/98 31.25 300
03/24/98 32.00 1,300
03/25/98 31.25 0
03/26/98 31.38 300
03/27/98 31.75 1,800
03/30/98 31.75 1,100
03/31/98 32.63 7,200
04/01/98 32.50 0
04/02/98 32.63 9,200
04/03/98 32.00 0
04/06/98 32.00 800
04/07/98 32.00 0
04/08/98 32.00 0
04/09/98 32.00 0
04/13/98 32.00 300
04/14/98 32.13 3,100
04/15/98 32.75 200
04/16/98 32.63 2,100
04/17/98 32.38 1,300
04/20/98 32.00 0
04/21/98 32.00 0
04/22/98 32.00 700
04/23/98 32.00 0
04/24/98 32.00 3,100
04/27/98 32.00 0
04/28/98 32.00 400
04/29/98 32.31 3,900
04/30/98 33.00 1,900
05/01/98 33.00 0
05/04/98 33.25 1,700
05/05/98 32.75 0
05/06/98 32.75 0
05/07/98 33.13 3,200
05/08/98 33.25 1,200
05/11/98 32.75 0
05/12/98 32.75 0
05/13/98 32.75 0
05/14/98 32.75 6,600
05/15/98 32.75 100
05/18/98 33.13 3,700
05/19/98 33.00 500
05/20/98 33.00 800
05/21/98 33.13 2,000
05/22/98 33.50 1,100
05/26/98 33.00 0
05/27/98 33.00 2,900
05/28/98 32.94 300
05/29/98 32.50 0
06/01/98 32.50 0
06/02/98 32.50 0
06/03/98 32.50 0
06/04/98 32.50 0
06/05/98 32.50 0
06/08/98 32.50 0
06/09/98 32.50 800
06/10/98 32.50 300
06/11/98 32.50 1,900
06/12/98 32.75 200
06/15/98 33.00 700
06/16/98 32.50 1,000
06/17/98 33.25 1,000
06/18/98 32.31 0
06/19/98 32.31 0
06/22/98 32.31 200
06/23/98 32.31 0
06/24/98 32.44 3,400
06/25/98 32.31 0
06/26/98 32.31 0
06/29/98 32.31 0
06/30/98 32.31 300
07/01/98 32.31 0
07/02/98 33.25 500
07/06/98 33.63 1,500
07/07/98 32.31 0
07/08/98 32.50 5,500
07/09/98 32.38 500
07/10/98 33.13 300
07/13/98 32.44 3,800
07/14/98 32.25 1,100
07/15/98 32.38 0
07/16/98 32.63 0
07/17/98 32.75 0
07/20/98 32.69 1,500
07/21/98 32.50 2,100
07/22/98 33.00 7,300
07/23/98 32.75 100
07/24/98 32.38 3,600
07/27/98 32.38 1,500
07/28/98 32.13 200
07/29/98 32.06 1,600
07/30/98 32.19 10,700
07/31/98 32.50 3,000
08/03/98 32.38 400
08/04/98 32.00 5,500
08/05/98 32.00 0
08/06/98 32.56 400
08/07/98 32.50 0
08/10/98 32.00 0
08/11/98 32.00 900
08/12/98 32.13 0
08/13/98 32.00 0
08/14/98 32.13 2,000
08/17/98 32.13 3,000
08/18/98 32.13 1,200
08/19/98 32.13 600
08/20/98 32.13 1,700
08/21/98 32.50 43,400
08/24/98 32.38 26,600
08/25/98 32.38 1,200
08/26/98 32.25 4,000
08/27/98 32.75 300
08/28/98 32.75 4,500
- ---------------------------------- Houlihan Lokey Howard & Zukin Capital --- 28
<PAGE>
Emerging Communications, Inc.
- --------------------------------------------------------------------------------
Comparable Company Descriptions
- --------------------------------------------------------------------------------
D & E COMMUNICATIONS, INC.
D & E Communications, Inc. (the "Company"), through subsidiaries, provides
telecommunications services for local exchange and long distance markets, and
sells related systems equipment to customers in the southcentral Pennsylvania
area; and provides network access services for switching and transporting
telephone calls. Other communications services include computer network design
and installation, directory advertising, and billing and collection services.
Red Rose Communications, Inc., wholly owned, sells, installs and maintains
telecommunications equipment, providing service for approximately 2,400 business
customers in central and eastern Pennsylvania Red Rose also operates a retail
store that specializes in communications equipment such as telephones and
accessories.
D & E Communications
Daily Stock Price and Volume History
D&E
- ---
Price Volume
----- ------
08/11/97 18.25 0
08/12/97 18.25 0
08/13/97 20.50 1,000
08/14/97 20.00 100
08/15/97 18.25 0
08/18/97 18.25 0
08/19/97 18.25 0
08/20/97 20.00 2,300
08/21/97 20.25 1,200
08/22/97 18.75 2,000
08/25/97 18.25 1,000
08/26/97 18.25 2,000
08/27/97 18.00 0
08/28/97 18.00 0
08/29/97 18.00 0
09/02/97 18.00 0
09/03/97 18.00 300
09/04/97 20.00 200
09/05/97 18.00 1,500
09/08/97 18.00 1,200
09/09/97 17.50 2,000
09/10/97 18.75 400
09/11/97 17.50 0
09/12/97 17.50 0
09/15/97 19.50 100
09/16/97 18.00 200
09/17/97 19.50 400
09/18/97 19.50 2,700
09/19/97 18.50 1,500
09/22/97 19.13 6,600
09/23/97 18.00 1,400
09/24/97 17.63 2,400
09/25/97 18.50 1,100
09/26/97 17.50 0
09/29/97 18.50 400
09/30/97 18.00 2,500
10/01/97 18.63 100
10/02/97 17.25 0
10/03/97 17.25 0
10/06/97 18.88 6,000
10/07/97 18.00 1,200
10/08/97 18.00 6,700
10/09/97 17.50 0
10/10/97 19.25 300
10/13/97 19.25 100
10/14/97 17.38 0
10/15/97 19.00 1,100
10/16/97 17.25 0
10/17/97 17.38 0
10/20/97 17.38 0
10/21/97 17.25 3,300
10/22/97 18.00 600
10/23/97 17.00 2,700
10/24/97 17.00 0
10/27/97 18.25 100
10/28/97 17.00 400
10/29/97 18.50 100
10/30/97 17.00 2,600
10/31/97 16.75 2,000
11/03/97 16.69 2,500
11/04/97 19.50 17,700
11/05/97 18.50 13,600
11/06/97 19.75 1,000
11/07/97 19.50 2,100
11/10/97 19.00 1,800
11/11/97 18.75 2,400
11/12/97 19.00 200
11/13/97 19.00 4,100
11/14/97 18.63 0
11/17/97 19.00 700
11/18/97 19.25 500
11/19/97 18.50 800
11/20/97 18.63 200
11/21/97 18.63 600
11/24/97 19.25 500
11/25/97 19.00 5,600
11/26/97 19.25 500
11/28/97 18.38 0
12/01/97 18.38 0
12/02/97 19.13 400
12/03/97 18.38 0
12/04/97 19.13 2,600
12/05/97 19.00 3,600
12/08/97 19.13 9,200
12/09/97 19.00 1,000
12/10/97 19.13 400
12/11/97 18.50 3,500
12/12/97 18.13 1,700
12/15/97 19.00 400
12/16/97 18.88 800
12/17/97 19.00 200
12/18/97 17.88 0
12/19/97 17.88 4,100
12/22/97 18.00 1,100
12/23/97 17.50 900
12/24/97 17.75 1,200
12/26/97 18.38 1,800
12/29/97 18.13 2,500
12/30/97 18.13 700
12/31/97 18.13 300
01/02/98 17.00 0
01/05/98 17.63 1,000
01/06/98 17.63 9,600
01/07/98 18.00 1,000
01/08/98 18.25 1,000
01/09/98 17.25 0
01/12/98 17.00 2,600
01/13/98 17.00 3,100
01/14/98 17.00 800
01/15/98 17.19 5,600
01/16/98 16.75 3,500
01/20/98 18.00 100
01/21/98 16.50 500
01/22/98 17.75 200
01/23/98 16.50 1,100
01/26/98 17.25 100
01/27/98 17.00 6,400
01/28/98 17.00 600
01/29/98 17.00 4,200
01/30/98 16.50 0
02/02/98 16.50 0
02/03/98 17.50 400
02/04/98 17.50 100
02/05/98 17.50 900
02/06/98 17.25 5,500
02/09/98 17.25 3,100
02/10/98 17.75 1,000
02/11/98 16.75 0
02/12/98 17.75 1,400
02/13/98 17.25 1,700
02/17/98 17.75 4,300
02/18/98 18.25 25,400
02/19/98 18.50 2,500
02/20/98 17.88 0
02/23/98 18.63 2,600
02/24/98 18.25 1,200
02/25/98 18.25 0
02/26/98 18.75 5,200
02/27/98 18.50 3,600
03/02/98 18.25 0
03/03/98 18.50 4,700
03/04/98 19.00 13,600
03/05/98 17.50 3,400
03/06/98 18.50 3,100
03/09/98 18.50 3,100
03/10/98 18.75 2,800
03/11/98 17.75 3,100
03/12/98 17.75 800
03/13/98 17.75 0
03/16/98 18.25 300
03/17/98 18.25 800
03/18/98 17.50 0
03/19/98 18.00 100
03/20/98 17.75 0
03/23/98 17.63 500
03/24/98 17.75 600
03/25/98 18.25 3,200
03/26/98 17.50 1,800
03/27/98 18.00 600
03/30/98 18.25 700
03/31/98 18.25 1,200
04/01/98 18.00 1,400
04/02/98 17.50 2,200
04/03/98 18.25 600
04/06/98 17.75 3,400
04/07/98 17.75 1,000
04/08/98 17.63 1,800
04/09/98 17.25 500
04/13/98 17.00 500
04/14/98 18.25 700
04/15/98 18.00 100
04/16/98 17.00 800
04/17/98 17.88 3,500
04/20/98 17.50 2,400
04/21/98 17.00 400
04/22/98 17.75 1,000
04/23/98 17.25 800
04/24/98 18.13 3,300
04/27/98 18.13 1,300
04/28/98 17.50 0
04/29/98 18.00 100
04/30/98 18.00 3,100
05/01/98 17.75 800
05/04/98 17.25 1,200
05/05/98 18.00 800
05/06/98 17.63 0
05/07/98 18.00 3,400
05/08/98 18.00 1,500
05/11/98 18.00 800
05/12/98 18.00 700
05/13/98 18.00 2,500
05/14/98 18.25 700
05/15/98 18.00 0
05/18/98 18.25 900
05/19/98 18.25 300
05/20/98 18.00 200
05/21/98 18.00 0
05/22/98 18.00 1,800
05/26/98 18.00 1,400
05/27/98 17.75 0
05/28/98 18.00 600
05/29/98 17.75 0
06/01/98 17.75 300
06/02/98 18.00 2,000
06/03/98 17.75 0
06/04/98 18.00 3,600
06/05/98 17.75 0
06/08/98 17.50 2,500
06/09/98 17.75 500
06/10/98 17.75 200
06/11/98 17.75 900
06/12/98 17.50 700
06/15/98 17.00 0
06/16/98 17.00 2,300
06/17/98 17.00 800
06/18/98 17.00 0
06/19/98 17.00 600
06/22/98 17.00 1,300
06/23/98 16.88 0
06/24/98 17.25 0
06/25/98 17.25 1,500
06/26/98 17.75 200
06/29/98 16.88 700
06/30/98 17.50 2,300
07/01/98 17.13 1,500
07/02/98 16.88 500
07/06/98 16.75 13,100
07/07/98 16.50 10,000
07/08/98 16.25 500
07/09/98 17.00 400
07/10/98 16.00 0
07/13/98 16.00 200
07/14/98 16.75 1,100
07/15/98 17.00 100
07/16/98 16.00 0
07/17/98 17.00 900
07/20/98 16.00 0
07/21/98 16.25 0
07/22/98 16.50 1,200
07/23/98 16.00 1,200
07/24/98 16.75 500
07/27/98 16.00 0
07/28/98 16.38 4,100
07/29/98 16.00 900
07/30/98 16.00 700
07/31/98 16.75 2,100
08/03/98 16.00 0
08/04/98 16.00 1,400
08/05/98 16.00 0
08/06/98 16.38 1,300
08/07/98 16.00 0
08/10/98 16.00 200
08/11/98 16.00 3,200
08/12/98 15.50 0
08/13/98 15.50 2,800
08/14/98 16.25 4,000
08/17/98 15.00 3,100
08/18/98 15.00 0
08/19/98 15.88 2,100
08/20/98 15.88 500
08/21/98 15.00 700
08/24/98 15.00 100
08/25/98 16.25 700
08/26/98 15.00 0
08/27/98 15.00 0
08/28/98 15.00 0
- ---------------------------------- Houlihan Lokey Howard & Zukin Capital --- 29
<PAGE>
Emerging Communications, Inc.
- --------------------------------------------------------------------------------
Comparable Company Descriptions
- --------------------------------------------------------------------------------
HICKORY TECH CORP.
Hickory Tech Corp. (the "Company") provides telephone and cable television
services in Minnesota; billing and data processing services; and sells, leases
and services telephone equipment. The Company operates though the following
business segments: Telephone Segment provides local telephone service and
interexchange network services in south central Minnesota, specifically Mankato
(population 42,000) and eleven rural communities surrounding Mankato. In
addition, the Company also provides local service for seven communities of the
Amana Colonies in east central Iowa. The total number of lines served in 1996
was 44,583. In addition, this segment owns and operates two cable television
franchises in the Mankato, Minnesota area and has minority interests in a rural
cellular partnership. The Billing & Data Services Segment provides data
processing service to local telephone companies, interexchange long distance
companies and enhanced services providers throughout the United States. The
Equipment Sales Segment sells and services telecommunications equipment in the
Minneapolis/St. Paul metropolitan area and southern Minnesota. It primarily
installs and maintains Nortel PBX and key system equipment and integrated
software. The Telecommunications Product Development Segment designs, assembles
and distributes unique telecommunications components for business telephone
systems throughout North America, the United Kingdom and the Pacific Rim.
Hickory Tech Corporation
Daily Stock Price and Volume History
Hickory
- -------
Price Volume
----- ------
08/11/97 9.75 9,300
08/12/97 9.67 4,500
08/13/97 9.75 4,500
08/14/97 9.50 0
08/15/97 9.58 300
08/18/97 9.96 11,100
08/19/97 9.58 32,700
08/20/97 10.00 4,500
08/21/97 9.96 300
08/22/97 9.58 0
08/25/97 9.58 1,800
08/26/97 9.58 0
08/27/97 9.79 2,100
08/28/97 9.71 7,200
08/29/97 9.58 0
09/02/97 9.58 1,500
09/03/97 9.58 600
09/04/97 9.75 9,000
09/05/97 9.58 3,000
09/08/97 9.71 20,100
09/09/97 9.83 3,000
09/10/97 9.67 0
09/11/97 9.67 1,200
09/12/97 9.79 6,300
09/15/97 10.08 59,400
09/16/97 10.33 5,700
09/17/97 10.29 27,000
09/18/97 10.42 60,300
09/19/97 10.92 42,600
09/22/97 10.71 12,000
09/23/97 10.75 35,700
09/24/97 10.50 0
09/25/97 10.58 14,700
09/26/97 10.67 12,900
09/29/97 10.63 9,600
09/30/97 10.83 6,900
10/01/97 10.96 2,400
10/02/97 10.96 600
10/03/97 11.08 16,800
10/06/97 11.33 17,700
10/07/97 11.33 14,100
10/08/97 11.50 17,400
10/09/97 11.58 6,600
10/10/97 11.33 1,500
10/13/97 11.46 5,700
10/14/97 11.50 43,200
10/15/97 11.33 4,800
10/16/97 11.29 23,700
10/17/97 11.67 8,400
10/20/97 11.83 1,800
10/21/97 11.67 7,800
10/22/97 11.50 600
10/23/97 11.83 17,400
10/24/97 11.88 5,400
10/27/97 11.67 19,800
10/28/97 11.67 30,600
10/29/97 11.58 4,500
10/30/97 11.67 3,600
10/31/97 11.42 25,500
11/03/97 11.79 900
11/04/97 11.50 11,700
11/05/97 11.42 3,600
11/06/97 11.63 2,700
11/07/97 11.67 7,800
11/10/97 11.42 0
11/11/97 11.63 1,500
11/12/97 11.58 0
11/13/97 11.54 18,600
11/14/97 11.50 0
11/17/97 11.67 1,500
11/18/97 11.71 24,000
11/19/97 11.67 0
11/20/97 11.67 600
11/21/97 11.67 0
11/24/97 11.75 6,300
11/25/97 11.75 0
11/26/97 11.75 0
11/28/97 11.75 6,900
12/01/97 11.75 6,900
12/02/97 11.75 0
12/03/97 11.71 8,700
12/04/97 11.58 1,800
12/05/97 11.58 0
12/08/97 11.83 7,200
12/09/97 11.50 0
12/10/97 11.50 6,600
12/11/97 11.50 0
12/12/97 11.50 900
12/15/97 11.50 1,200
12/16/97 11.50 2,400
12/17/97 11.63 6,300
12/18/97 11.58 300
12/19/97 11.58 3,900
12/22/97 11.63 8,700
12/23/97 11.58 1,500
12/24/97 11.58 0
12/26/97 11.58 5,700
12/29/97 11.58 4,800
12/30/97 11.88 2,700
12/31/97 11.92 11,700
01/02/98 12.04 15,300
01/05/98 11.92 8,700
01/06/98 11.71 3,900
01/07/98 12.00 16,200
01/08/98 12.00 27,300
01/09/98 11.92 48,600
01/12/98 11.75 21,900
01/13/98 12.00 5,400
01/14/98 11.88 1,200
01/15/98 11.88 2,400
01/16/98 12.00 900
01/20/98 12.00 7,500
01/21/98 11.88 5,700
01/22/98 11.92 31,200
01/23/98 12.00 1,200
01/26/98 12.17 2,100
01/27/98 11.67 8,400
01/28/98 11.92 2,400
01/29/98 12.17 3,300
01/30/98 12.04 2,100
02/02/98 12.08 18,600
02/03/98 12.25 42,900
02/04/98 12.42 17,100
02/05/98 12.42 13,500
02/06/98 12.58 6,600
02/09/98 12.83 9,600
02/10/98 12.58 2,100
02/11/98 12.29 9,900
02/12/98 12.08 54,000
02/13/98 12.25 1,200
02/17/98 12.33 1,200
02/18/98 12.08 1,200
02/19/98 12.17 2,400
02/20/98 12.17 7,800
02/23/98 12.25 600
02/24/98 12.00 8,100
02/25/98 12.00 109,500
02/26/98 12.58 6,300
02/27/98 12.58 1,500
03/02/98 12.17 0
03/03/98 12.42 1,200
03/04/98 12.25 5,400
03/05/98 12.33 7,500
03/06/98 12.42 1,200
03/09/98 12.25 300
03/10/98 12.42 1,200
03/11/98 12.42 600
03/12/98 12.60 0
03/13/98 12.38 600
03/16/98 12.33 15,600
03/17/98 12.33 4,200
03/18/98 12.50 600
03/19/98 12.33 12,900
03/20/98 12.50 7,200
03/23/98 12.25 3,600
03/24/98 12.42 9,000
03/25/98 12.25 5,700
03/26/98 12.25 4,800
03/27/98 12.46 900
03/30/98 12.46 3,600
03/31/98 12.25 0
04/01/98 12.25 900
04/02/98 12.40 3,600
04/03/98 12.25 0
04/06/98 12.42 1,200
04/07/98 12.33 19,800
04/08/98 12.25 0
04/09/98 12.42 2,700
04/13/98 12.33 9,300
04/14/98 12.29 900
04/15/98 12.25 300
04/16/98 12.33 2,100
04/17/98 12.67 3,300
04/20/98 13.25 21,900
04/21/98 13.67 4,500
04/22/98 13.67 12,000
04/23/98 13.67 102,900
04/24/98 14.17 13,500
04/27/98 14.17 7,500
04/28/98 14.17 0
04/29/98 14.67 7,200
04/30/98 14.00 3,900
05/01/98 13.67 600
05/04/98 13.67 600
05/05/98 13.75 600
05/06/98 13.75 0
05/07/98 13.75 0
05/08/98 13.75 600
05/11/98 13.75 0
05/12/98 14.00 10,500
05/13/98 13.50 0
05/14/98 13.50 3,600
05/15/98 14.00 6,000
05/18/98 13.67 900
05/19/98 13.67 0
05/20/98 13.67 5,400
05/21/98 13.33 7,200
05/22/98 13.33 6,300
05/26/98 13.33 1,200
05/27/98 13.42 3,900
05/28/98 13.54 8,400
05/29/98 13.33 0
06/01/98 13.33 0
06/02/98 13.33 1,200
06/03/98 13.73 3,900
06/04/98 14.00 1,200
06/05/98 13.67 2,400
06/08/98 13.50 3,000
06/09/98 13.67 12,300
06/10/98 13.33 8,400
06/11/98 13.33 0
06/12/98 13.83 3,600
06/15/98 13.33 0
06/16/98 13.63 1,800
06/17/98 13.42 3,900
06/18/98 13.42 900
06/19/98 13.54 3,300
06/22/98 13.63 2,400
06/23/98 13.42 300
06/24/98 13.67 6,900
06/25/98 13.50 900
06/26/98 13.25 6,000
06/29/98 13.50 7,500
06/30/98 13.25 2,100
07/01/98 13.67 600
07/02/98 13.33 0
07/06/98 13.50 1,200
07/07/98 13.33 900
07/08/98 13.67 7,500
07/09/98 14.00 3,600
07/10/98 13.33 2,700
07/13/98 13.50 5,100
07/14/98 13.00 0
07/15/98 13.00 5,700
07/16/98 13.50 900
07/17/98 13.50 300
07/20/98 14.00 13,500
07/21/98 14.00 171,300
07/22/98 14.25 12,000
07/23/98 14.83 51,900
07/24/98 14.33 56,400
07/27/98 14.17 35,100
07/28/98 14.33 18,300
07/29/98 14.50 19,200
07/30/98 15.33 21,300
07/31/98 15.54 17,700
08/03/98 15.00 15,900
08/04/98 14.79 17,100
08/05/98 14.25 3,900
08/06/98 14.50 14,100
08/07/98 13.75 13,800
08/10/98 14.42 7,200
08/11/98 14.50 1,800
08/12/98 14.50 66,000
08/13/98 13.92 16,800
08/14/98 13.71 28,200
08/17/98 13.92 9,000
08/18/98 14.00 7,500
08/19/98 13.50 8,100
08/20/98 13.50 7,100
08/21/98 12.88 11,900
08/24/98 13.38 1,200
08/25/98 13.25 4,000
08/26/98 13.06 1,800
08/27/98 12.50 13,200
08/28/98 12.00 8,200
- ---------------------------------- Houlihan Lokey Howard & Zukin Capital --- 30
<PAGE>
Emerging Communications, Inc.
- --------------------------------------------------------------------------------
Comparable Company Descriptions
- --------------------------------------------------------------------------------
NORTH PITTSBURGH SYSTEMS, INC.
North Pittsburgh Systems, Inc. (the "Company"), through subsidiaries, provides
telecommunication services to customers in western Pennsylvania; provides
facilities for special circuits (alarms, data transmission, etc.), mobile
telephone and other services; and receives revenue from the sale of advertising
space in telephone directories. The Company provides telecommunication services
to customers generally located within Allegheny, Armstrong, Butler, and
Westmoreland Counties in western Pennsylvania servicing approximately 61,500
customers at January 31, 1997. Telephone service to areas outside the Company's
franchised telephone service territory is furnished through switched and special
access connections with Bell Atlantic-Pennsylvania, Inc., other independent
telephone companies, various Interexchange Carriers and resellers.
North Pittsburgh Systems
Daily Stock Price and Volume History
North Pitts.
- ------------
Price Volume
----- ------
08/11/97 17.38 3,000
08/12/97 16.88 1,800
08/13/97 16.25 4,300
08/14/97 17.50 200
08/15/97 16.00 1,200
08/18/97 16.00 5,300
08/19/97 15.50 0
08/20/97 16.00 2,100
08/21/97 16.00 3,700
08/22/97 16.00 1,000
08/25/97 16.75 500
08/26/97 15.25 0
08/27/97 15.50 500
08/28/97 16.75 3,600
08/29/97 16.75 1,100
09/02/97 15.50 5,400
09/03/97 17.13 12,200
09/04/97 17.25 3,100
09/05/97 16.50 3,000
09/08/97 16.75 3,000
09/09/97 16.50 0
09/10/97 16.75 700
09/11/97 16.50 1,300
09/12/97 16.25 0
09/15/97 17.00 100
09/16/97 17.25 1,000
09/17/97 17.00 2,500
09/18/97 16.25 0
09/19/97 16.50 4,900
09/22/97 16.75 700
09/23/97 17.50 3,100
09/24/97 16.75 900
09/25/97 17.50 4,800
09/26/97 17.00 2,000
09/29/97 17.00 1,500
09/30/97 17.50 3,000
10/01/97 18.38 6,300
10/02/97 18.00 3,000
10/03/97 17.75 6,900
10/06/97 17.00 2,600
10/07/97 17.25 4,000
10/08/97 18.00 10,100
10/09/97 18.00 2,200
10/10/97 18.00 3,900
10/13/97 17.00 2,900
10/14/97 17.50 5,800
10/15/97 17.50 200
10/16/97 17.75 13,700
10/17/97 17.75 8,000
10/20/97 16.75 7,000
10/21/97 16.50 4,400
10/22/97 17.25 4,600
10/23/97 16.50 1,200
10/24/97 17.13 100
10/27/97 17.13 2,700
10/28/97 16.25 1,400
10/29/97 17.38 7,800
10/30/97 16.50 5,500
10/31/97 17.13 4,000
11/03/97 16.88 400
11/04/97 16.50 1,800
11/05/97 17.00 4,400
11/06/97 17.50 5,400
11/07/97 17.75 4,000
11/10/97 17.69 6,300
11/11/97 17.31 12,800
11/12/97 17.19 4,800
11/13/97 17.63 3,100
11/14/97 17.88 4,100
11/17/97 17.38 1,500
11/18/97 17.63 4,200
11/19/97 17.88 2,500
11/20/97 17.75 11,100
11/21/97 17.63 3,600
11/24/97 17.56 12,700
11/25/97 17.88 1,300
11/26/97 17.75 13,400
11/28/97 17.56 300
12/01/97 18.50 21,100
12/02/97 18.13 33,600
12/03/97 18.00 14,900
12/04/97 18.25 900
12/05/97 18.25 1,400
12/08/97 18.06 100
12/09/97 19.38 21,900
12/10/97 19.00 7,900
12/11/97 19.00 2,200
12/12/97 18.88 3,100
12/15/97 18.75 5,700
12/16/97 18.19 3,700
12/17/97 18.25 600
12/18/97 18.25 6,200
12/19/97 18.50 6,300
12/22/97 18.25 8,400
12/23/97 18.44 4,500
12/24/97 18.19 200
12/26/97 18.13 2,000
12/29/97 18.16 5,300
12/30/97 18.31 3,500
12/31/97 18.31 1,600
01/02/98 18.75 1,700
01/05/98 18.13 4,500
01/06/98 18.13 2,900
01/07/98 17.63 1,000
01/08/98 17.75 1,100
01/09/98 17.63 2,900
01/12/98 17.94 1,400
01/13/98 17.00 4,600
01/14/98 17.75 300
01/15/98 17.00 1,300
01/16/98 17.31 6,000
01/20/98 17.50 2,700
01/21/98 17.13 1,000
01/22/98 17.50 1,300
01/23/98 16.81 4,600
01/26/98 16.25 6,300
01/27/98 14.88 38,400
01/28/98 15.75 5,200
01/29/98 17.25 25,600
01/30/98 17.00 9,700
02/02/98 16.81 5,600
02/03/98 17.00 3,800
02/04/98 16.25 800
02/05/98 16.50 1,900
02/06/98 17.00 2,100
02/09/98 16.75 7,200
02/10/98 16.63 1,200
02/11/98 16.00 6,600
02/12/98 16.25 5,700
02/13/98 17.00 700
02/17/98 16.25 700
02/18/98 16.50 10,300
02/19/98 16.75 4,000
02/20/98 16.25 4,100
02/23/98 16.13 4,600
02/24/98 17.00 2,100
02/25/98 17.00 1,200
02/26/98 16.38 5,800
02/27/98 16.50 2,700
03/02/98 16.13 2,200
03/03/98 16.75 9,400
03/04/98 16.75 5,100
03/05/98 16.34 8,000
03/06/98 17.00 16,300
03/09/98 16.50 7,300
03/10/98 16.63 5,500
03/11/98 16.69 3,700
03/12/98 16.63 5,400
03/13/98 16.50 9,800
03/16/98 16.69 5,600
03/17/98 16.63 9,200
03/18/98 16.75 5,700
03/19/98 16.19 9,000
03/20/98 17.00 5,000
03/23/98 17.00 8,600
03/24/98 16.25 4,400
03/25/98 16.50 6,500
03/26/98 16.75 1,500
03/27/98 16.75 4,100
03/30/98 16.25 1,800
03/31/98 16.13 19,700
04/01/98 16.50 13,700
04/02/98 15.50 14,300
04/03/98 15.75 700
04/06/98 15.75 500
04/07/98 15.25 20,700
04/08/98 15.25 9,700
04/09/98 15.13 1,900
04/13/98 13.88 63,500
04/14/98 15.00 24,100
04/15/98 14.63 5,200
04/16/98 15.25 12,600
04/17/98 15.00 4,900
04/20/98 15.00 9,300
04/21/98 14.63 4,600
04/22/98 15.13 500
04/23/98 14.59 5,600
04/24/98 14.81 9,700
04/27/98 14.75 9,500
04/28/98 14.50 15,600
04/29/98 15.13 17,400
04/30/98 14.25 19,700
05/01/98 15.00 10,500
05/04/98 15.50 400
05/05/98 15.75 11,800
05/06/98 15.63 17,500
05/07/98 15.19 14,600
05/08/98 14.88 19,600
05/11/98 15.06 24,600
05/12/98 15.25 8,300
05/13/98 15.63 13,600
05/14/98 15.75 15,700
05/15/98 16.31 9,700
05/18/98 16.09 7,000
05/19/98 16.50 3,400
05/20/98 16.50 7,000
05/21/98 16.13 3,200
05/22/98 16.00 2,600
05/26/98 15.13 5,300
05/27/98 15.00 11,900
05/28/98 15.88 5,100
05/29/98 15.75 7,500
06/01/98 15.25 3,400
06/02/98 15.19 3,600
06/03/98 15.13 11,000
06/04/98 15.75 2,000
06/05/98 15.75 3,000
06/08/98 15.69 9,500
06/09/98 15.69 4,000
06/10/98 14.69 26,800
06/11/98 15.25 4,100
06/12/98 15.50 3,500
06/15/98 15.00 8,300
06/16/98 14.88 6,700
06/17/98 16.00 3,000
06/18/98 16.50 13,000
06/19/98 16.25 19,500
06/22/98 16.25 3,900
06/23/98 16.25 3,700
06/24/98 16.25 1,200
06/25/98 16.38 6,500
06/26/98 16.50 3,400
06/29/98 16.13 1,000
06/30/98 15.94 8,800
07/01/98 16.00 17,900
07/02/98 15.25 2,000
07/06/98 14.63 11,300
07/07/98 14.75 6,600
07/08/98 15.13 12,400
07/09/98 14.75 900
07/10/98 15.50 1,300
07/13/98 15.50 3,600
07/14/98 15.25 2,600
07/15/98 15.75 1,100
07/16/98 15.63 0
07/17/98 15.50 10,800
07/20/98 15.50 7,300
07/21/98 15.25 2,200
07/22/98 14.88 900
07/23/98 14.88 4,600
07/24/98 14.75 13,100
07/27/98 14.75 3,500
07/28/98 14.50 800
07/29/98 13.56 17,500
07/30/98 13.50 10,100
07/31/98 13.50 5,100
08/03/98 13.75 4,500
08/04/98 13.38 10,000
08/05/98 13.50 3,800
08/06/98 13.50 10,100
08/07/98 13.25 21,000
08/10/98 14.00 1,000
08/11/98 13.63 8,100
08/12/98 13.41 500
08/13/98 13.31 700
08/14/98 13.50 2,500
08/17/98 13.44 2,400
08/18/98 13.25 11,300
08/19/98 13.63 7,300
08/20/98 13.25 600
08/21/98 13.06 10,200
08/24/98 13.00 4,200
08/25/98 13.44 3,300
08/26/98 13.25 3,400
08/27/98 13.25 2,600
08/28/98 13.00 3,900
- ---------------------------------- Houlihan Lokey Howard & Zukin Capital --- 31
