Second Quarter Financial Results

For the three months ended June 30, 2009, revenue was $60.3 million, 20% above the $50.4 million reported for the second quarter of 2008 and an 8% sequential increase over the first quarter. Wireless revenue increased 47% year-over-year and 15% sequentially, driven by significant growth in the Company's U.S. domestic wireless business, which more than offset the year-over-year and sequential decrease in international long distance revenue from the Company's Guyana operations. Revenue for 2008 included revenue from Bermuda Digital Communications (BDC) beginning on May 15, 2008, the date the Company began consolidating BDC's operating results. BDC revenue, prior to consolidation, for the second quarter and six months ended June 30, 2008 was approximately $3.3 million and $8.6 million, respectively.

Despite the significant increase in revenue, operating income remained unchanged at $18.1 million as a result of costs associated with the revenue growth, as well as:

$1.5 million of operating losses at two earlier stage businesses acquired in the third quarter of 2008

$0.8 million of costs associated with the previously announced termination of our digital television services in the U.S. Virgin Islands (USVI)

$0.4 million related to the Company's pending acquisition of the Alltel properties

The reduction in high-margin international long distance revenue

Net income attributable to ATN's stockholders1 was $9.6 million for the quarter compared to $10.2 million for the same period in 2008 and $8.8 million for the first quarter of 2009. On a per share basis, net income attributable to ATN's stockholders decreased 6% to $0.63 per diluted share from $0.67 per diluted share for last year's second quarter but was up 9% from the $0.58 per diluted share earned in the first quarter of 2009.

Commenting on second quarter results, Michael T. Prior, Chief Executive Officer said, "This was another quarter of solid financial and operating performance for ATN, reflecting the resilience of our network and our ability to provide attractive alternatives to customers in underserved domestic and international markets. While we are not immune to the current economic environment, we succeeded in posting strong revenue growth resulting from our expanded U.S. network footprint and higher volumes of voice and data traffic. Operating income was $18.1 million, or 30% of revenue, despite the costs of expanding our network and terminating our television services in the USVI. Although the early stage businesses we acquired in the second half of 2008 have also negatively impacted operating income, we are pleased overall with the strong growth in revenue and believe we are increasing the size of our platform for future cash flow and profit growth."

Recent Corporate Development

On June 9, 2009 the Company announced a definitive agreement to acquire certain wireless assets from Verizon Wireless, which were part of Alltel Corporation prior to its acquisition by Verizon Wireless. Under the terms of the agreement, the Company will acquire wireless properties, including wireless spectrum licenses and network assets serving approximately 800,000 subscribers primarily in rural areas across Georgia, North Carolina, South Carolina, Illinois, Ohio and Idaho for approximately $200 million in cash. Initial expectations are for this transaction to add approximately $450 million in revenue and be accretive upon completion. The acquisition is subject to customary closing conditions and regulatory approvals, including the receipt of required consents and approvals from the Department of Justice and the Federal Communications Commission.

"This acquisition is an ideal fit for the Company because it greatly increases our U.S. wireless network footprint and builds on the services we currently offer. It also provides us with greater revenue diversification and significant scale," Mr. Prior said. "Upon the completion of this transaction, we expect to have more than one million retail wireless subscribers in the U.S. and internationally. We will be offering our new customers the plans and differentiated service offerings they currently enjoy, plus a variety of new choices that have been popular with consumers in our other domestic markets. We are confident that this transaction will be very positive for all of our constituents. Please note, however, that transactional expenses are expected to increase significantly in the next two quarters and will reduce earnings until the acquisition closes. Once closed, we expect the acquisition to be significantly accretive to earnings."

Second Quarter 2009 Operating Highlights

The following operating results for the quarter ended June 30, 2009 are compared against the same period in 2008 unless otherwise indicated.

Wireless Revenue

Wireless revenue increased 47%, to $36.5 million from $24.8 million. Our U.S. rural wireless business increased revenue by 53%, to $25.8 million from $16.9 million benefiting from our ongoing investment in new base stations and the growth in recurring voice and data traffic. We ended the second quarter with a total of 537 base stations in our U.S. network, up from 367 base stations at the end of last year's second quarter and 484 base stations at the end of the 2009 first quarter. Of the increase in wireless revenue, $2.6 million was attributable to the consolidation of the operating results of BDC for the entire second quarter of 2009 as compared to only a portion of the second quarter of 2008. Wireless revenue in Guyana increased by $0.2 million. At the end of the second quarter, we had approximately 266,000 subscribers in Guyana, below the 277,000 we had at the end of last year's second quarter, but up from 248,000 as of December 31, 2008.

Local Telephone and Data Revenue

Local telephone and data revenue increased 10% to $13.5 million compared to $12.3 million in 2008. Sovernet's local telephone and data revenue increased 27%, to $4.7 million from $3.7 million in 2008, mainly due to its acquisition of ION in August 2008. Local telephone and data revenue generated by our Guyana operations increased 3% to $7.6 million compared to $7.4 million in 2008, while access lines increased 5% to 142,000 from 135,000. Data revenue at our Virgin Islands subsidiary remained fairly stable.

International Long Distance Revenue

International long distance revenue, all of which is generated by our GT&T subsidiary, declined 20% to $9.9 million from $12.4 million in 2008. We believe this decrease is a result of a considerable increase in illegal bypass activities in the quarter resulting in lost revenue opportunities, as well as an overall reduction in call volume into Guyana attributable to the current difficult economic environment.

First Half 2009 Results

For the six months ended June 30, 2009, revenue was $116.3 million, up 21% from the $96.0 million reported for last year's first half. Net income attributable to ATN's stockholders1 was $18.4 million for the year, as compared to $18.1 million for the same period in 2008, an increase of $0.3 million or 2%. On a per share basis, net income attributable to ATN's stockholders1 increased by 3% to $1.21 per diluted share from $1.18 per diluted share for the six months ended June 30, 2008.

Conference Call Information

Atlantic Tele-Network will host a conference call tomorrow, Friday, July 31, 2009 at 10:00 a.m. Eastern Time (ET) to discuss its second quarter results for 2009. The call will be hosted by Michael Prior, President and Chief Executive Officer, and Justin Benincasa, Chief Financial Officer. The dial-in numbers are US/Canada: (800) 920-4315 and International: (212) 231-2901. A replay of the call will be available from 12:30 p.m. (ET) July 31, 2009 until 12:30 p.m. (ET) on August 7, 2009. The replay dial-in numbers are US/Canada: (800) 633-8284 and International: (402) 977-9140, access code 21432610.

About Atlantic Tele-Network

Atlantic Tele-Network, Inc.