Iowa Telecom Declares Final Interim Dividend In Preparation For Completing Merger

Iowa Telecommunications Services, Inc. (NYSE Symbol: IWA) today announced its Board of Directors has declared the final interim dividend on Iowa Telecommunications common stock in anticipation of the closing of the previously-announced merger with Windstream Corporation. The dividend is contingent upon the closing of the merger.

The Board declared a dividend of $0.0022418 per share of common stock, per day, from and including April 1, 2010 (the first day of the current fiscal quarter), until and including the closing date of the merger, in accordance with the terms of the merger agreement and provided that the closing date is prior to July 1, 2010. The merger is currently expected to close on June 1, 2010, assuming satisfaction or waiver of all of the conditions to the merger. If the merger is completed on June 1, 2010, the final dividend will be $0.1389890 per share.

The final dividend will be payable as soon as practicable after the closing date of the merger to shareholders of record as of the close of business on the last business day immediately preceding the closing date of the merger.

On November 23, 2009, Iowa Telecom entered into the merger agreement under which Windstream will acquire Iowa Telecom. Under the merger agreement, each outstanding share of Iowa Telecom common stock will be converted into the right to receive $7.90 in cash and 0.804 shares of common stock of Windstream.

The final interim dividend, when combined with the 25-cent dividend declared by the Windstream board of directors on May 5, 2010, will permit Iowa Telecom shareholders effectively to continue to receive the regular Iowa Telecom dividend for all periods through the effective time of the merger. The 25-cent dividend is payable on July 15, 2010, to Windstream stockholders of record as of June 30, 2010, including former Iowa Telecom shareholders who receive and continue to hold Windstream stock as of the June 30 record date.