Strategic Advisors for the Telecommunications and Broadband Infrastructure Industry

Has Sold its Idaho Operations to

Advisor to Seller

January 31, 2013

FairPoint sells Fremont Telcom and Fretel Communications to Blackfoot

Target: FairPoint Communications Idaho operations, Fremont Telcom and Fretel Communications (“FairPoint Idaho”)

Buyer: Blackfoot Telecommunications Group (“Blackfoot”)

Price: $30 million in cash

Assets: FairPoint Idahos competitive and incumbent properties serve approximately 5,400 business and residential customers in eastern Idaho. On an annualized basis, the properties contribute approximately $8 million in revenue and approximately $5 million in EBITDA, with capital expenditures of approximately $1 million. FairPoint Idaho also owns a minority investment in Syringa Networks, LLC, a regional fiber transport business.

Valuation: Approximately 6.0x annualized EBITDA

Closed: January 31, 2013

Comments: Based in Missoula, Montana, Blackfoot is a cooperatively-owned telecommunications company that delivers voice, data, IT, and security solutions to more than 20,000 business and residential customers throughout Montana and Idaho. Blackfoot’s fiber optic network covers 6,500 square-miles in western Montana. Eleven FairPoint Idaho employees will join Blackfoot at the transaction closing. The transaction follows other recent acquisitions by Blackfoot. In early 2012, Blackfoot purchased Modwest, a Missoula-based web-hosting company. Blackfoot recently announced the pending acquisition of Cutthroat Communications, a provider of wireless and fiber optic services. Source: FairPoint Communications and Blackfoot press releases

Charlesmead Advisors, LLC served as exclusive financial advisor to FairPoint Communications in this transaction.