News Release: May 1, 2002
SureWest Communications Reports First Quarter 2002 Results

(Roseville, California) - Integrated communications provider SureWest Communications ("SureWest") (Nasdaq:SURW) announced financial results today for the quarter ended March 31, 2002.

SureWest reported quarterly operating revenues of $44.0 million, up 4.0 percent from $42.3 million in the first quarter of 2001.  Results reflect growth in Wireless, digital subscriber line (DSL), Internet and Long Distance services and a 21 percent annual increase in voice-grade access line equivalents.

Consolidated operating expenses in the quarter were $38.8 million, up 7.2 percent from the comparable period last year.  Year-over-year increases reflect higher costs of service from above-plan growth in Wireless, and incrementally more customer operations and selling costs related to Directory and Internet operations.

Non-operating quarterly income increased $2.0 million over the first quarter of 2001.  The increase reflects a pre-tax gain of $4.4 million related to a previously announced sale of alarm monitoring assets and equipment, which was partially offset by a $2.4 million decrease in interest income resulting from lower invested balances in 2002.

Net income for the quarter totaled $5.6 million, or $.37 per share compared to net income of $5.0 million, or $.32 per share in the first quarter last year.  Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) were $20.0 million in the first quarter of 2002, compared to $15.7 million in the first quarter last year.

"We saw consistent growth in DSL, Long Distance, CLEC, Wireless and Internet services result from layer-and-leverage network synergies again," said Brian Strom, President and Chief Executive Officer. "Our focus for the remainder of 2002 is driving sales growth and margin stability with our unified brand and advanced fiber network while carefully evaluating the unprecedented array of available tactical assets in our markets," Strom added.

SureWest's telecom segment, including incumbent local exchange carrier Roseville Telephone Company, reported first quarter operating revenues of $38.5 million, up 2.4 percent from the first quarter last year.  Telco operating margins remained strong at more than 30 percent.  Network access revenues were 19.8 percent higher year-over-year through yearly DSL revenue growth that exceeded 60 percent, along with data services growth and a lower year-over-year provision for shareable earnings.  Growth in network access revenues offset lower local service revenue resulting from a provision for intrastate shareable earnings and a modest decrease in measured-call use.  Increases in both business and residential access lines helped boost total Telco access lines by 1.4 percent annually to 135,000.  Voice-grade equivalents, a measure of broadband usage, rose 21 percent from the first quarter last year on robust broadband and data services demand.  Residential DSL penetration surpassed 13 percent in the first quarter of 2002 as total subscribers topped 12,200.

Telecom expenses totaled $26.4 million in the first quarter 2002 versus $26.2 million in the same quarter a year ago as Directory, Long Distance, Internet and network access growth increased associated customer and operations costs. Higher expenses were partially offset by cost savings from the alarm monitoring transaction.

SureWest's competitive local exchange carrier (CLEC) SureWest Broadband, accelerated expansion of its network during the quarter.  The California Public Utilities Commission granted approval to acquire certain assets from Williams Communications that will extend the network twenty additional miles into the cities of West Sacramento and Davis.  SureWest Broadband also is nearing completion of negotiations that will boost its fiber optics further in the fast-growing community of Folsom, east of Sacramento.  The CLEC fiber network is now fully Ethernet capable as well, enhancing the services SureWest Broadband can offer on-network customers.

Revenues from SureWest's Internet, Long Distance and Directory businesses, reported under the Telco segment, totaled $6.2 million in the quarter compared to $5.5 million in the same period last year, an 12.9 percent increase.  SureWest Internet now serves over 15,000 subscribers.  SureWest Long Distance achieved a 26.7 percent market share in the quarter.

SureWest Wireless subscribers increased 62 percent year-over-year to 35,600.  Revenue rose to $5.4 million in the first quarter from $4.7 million a year ago and $4.2 million in the fourth quarter of 2001 as growth regained momentum following a period of subscriber-base adjustments.  Over the past year, the percentage of subscribers on contract has risen from 35 percent to 64 percent.  Costs rose 24 percent versus the first quarter last year, reflecting increased customer operations and selling expenses.

"We're confident of our position in the robust Sacramento marketplace as we pursue our goal of becoming its dominant integrated communications provider," said Strom.

SureWest Communications
Selected Financial Data
(Unaudited)
 (dollars in thousands, except per share amounts)

Selected Operating Statistics

 * includes dial-up accounts from SureWest's July 2001 acquisition of QuikNet.

About SureWest Communications
SureWest Communications and its family of companies, including Roseville Telephone Company, SureWest Wireless, SureWest Broadband, SureWest Internet, SureWest Directories and SureWest Long Distance, create value for customers and shareholders through an integrated network of highly reliable advanced communications products and services with unsurpassed customer care. The company's principal operating subsidiary, Roseville Telephone Company, is California's third largest telecommunications company, and has provided telecommunications services for nearly 90 years as the Incumbent Local Exchange Carrier (ILEC) to the communities of Roseville, Citrus Heights, Granite Bay, Antelope and parts of Rocklin. The company, through its Competitive Local Exchange Carrier (CLEC) and subsidiaries, is licensed to provide fiber optics, 39 GHz wireless, PCS wireless, DSL, high-speed Internet access and data transport. For more information, visit the SureWest web site at www.surewest.com.

Statements made in this news release that are not historical facts are forward-looking statements and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the company's actual results to differ from those projected in such forward-looking statements.

Important factors that could cause actual results to differ from those set forth in the forward-looking statements include, but are not limited to: advances in telecommunications technology, changes in the telecommunications regulatory environment, changes in competition in markets in which the company operates, the availability of future financing, changes in the demand for services and products, new product and service development and introductions, pending and future litigation and unanticipated changes in the growth of the company's emerging businesses, including the PCS, Internet and CLEC operating entities.

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For more information, contact media@surewest.com.

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