News Release: October 31, 2000
Profits Rise At RCC

(ROSEVILLE, CALIFORNIA) - Roseville Communications Company (OTC:RVCL) announced operating results for the third quarter 2000. Operating revenues increased to $39.3 million, a gain of $3.9 million, or 11%, over the same period in 1999. Operating revenues for the nine-month period ended September 30, 2000 increased to $113.6 million, a gain of $8.2 million, over the same period in 1999.

The increase in quarterly and year-to-date operating revenues resulted from a combination of an increase in data and broadband service revenues, a two percent growth in access lines and increased minutes-of-use volumes. Data revenues for the three month period ended September 30, 2000 increased over 80 percent from a year earlier bolstered by the demand for digital subscriber lines (DSL), Internet access and the introduction of advanced products and services to customers both within and beyond the company's traditional service territory. Revenues were also positively impacted by wireless, and long distance services, as the demand for the latest technology at competitive prices continues to reflect the region's strong economic growth.

Net income was $7.8 million or $.50 per share for the third quarter 2000, compared to net income of $7.6 million or $.48 per share for the same period in 1999. The third quarter results reflect a one-time increase to net income of $535 thousand relating to the regulatory accounting associated with local number portability. Net income for the nine months ended September 30, 2000 was off 9% from the prior year due primarily to the network buildout and startup cost associated with RCS Wireless and the deployment of DSL and Internet services. Fourth quarter results may also reflect the impact of the Company's continued commitment to the expansion of its newer businesses.

"The Company made several significant strides in implementing its growth and diversification strategies during the third quarter of 2000" said Brian Strom, president and chief executive officer of the Company. "The fact that we can have strong earnings in the midst of our diversification shows that we are beginning to realize the benefits associated with the introduction of advanced products and services to customers both within and beyond our traditional service territory. While the increased spending on growth initiatives will dilute earnings in the near term, we believe that the long-term potential for wireless, Internet services, DSL and integrated data services will significantly contribute to the overall financial strength of the company in the future" said Strom.

The Company continues to expand its traditional boundaries by penetrating new markets by providing competitive broadband, integrated data services, Internet access and corporate network solutions to medium and large businesses in the greater Sacramento region. "We are taking over 85 years of experience in the communications industry and expanding this knowledge into the greater Sacramento region. Our strategy is to build a fully diversified fiber optic network from the ground up that will support today's applications while promoting the development of future technologies and tomorrow's applications," indicated Strom.

The Company also continues to expand its geographic presence into the greater Sacramento area through its PCS subsidiary. RCS Wireless recently became the first and only wireless carrier to offer an unlimited local wireless calling plan in the Sacramento valley. Since the plan's introduction, RCS Wireless has experienced a vigorous increase in the demand for its new service. "RCS Wireless combines the voice quality and security of a regular phone with the local mobility of wireless. It is designed as a wireless alternative to a landline phone for the home, office and around town. We are engaged in an aggressive build-out program to provide the most advanced wireless services to our current customers and to those beyond our traditional service area," said Strom.

In August 1999, the Company launched RCS Internet, which offers high-speed connections to the Internet for both home and business applications. This service is offered in conjunction with Roseville Telephone Company's DSL, which turns ordinary copper telephone lines into broadband conduits for high-speed access to the Internet. Because RTC can presently offer its DSL service in over 90 percent of its coverage area, response to this service has been robust as reflected by the over 5,000 customers currently enjoying the benefits of high-speed internet access.

The Company recently announced that Verizon Wireless has agreed to acquire the 24% limited partnership interest owned by the Company in the Sacramento-Valley Limited Partnership. Sacramento-Valley Limited Partnership is a California limited partnership that provides cellular telephone service in portions of Northern California and Nevada through Verizon Wireless. Strom indicated "We've realized the full benefits of the partnership and its an optimum time to liquidate this investment to provide us with additional capital to fund the expansion of our wireless, internet and integrated data services. We are not exiting the wireless business. In fact, this transaction provides us additional capital to facilitate the continued growth of RCS Wireless."

The Board of Directors also declared its regular quarterly dividend of $.25 per share payable December 15, 2000 to shareholders of record on November 30, 2000.

For more information, contact media@surewest.com.

Recent News Releases
News Release Archive