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Frontier Communications Reports Solid 2008 Second-Quarter Results with Strong High-Speed Net Additions
    --  16,300 net high-speed internet additions

    --  Data and internet services revenue up 10% year over year

    --  Continued strong operating income and cash flow margins

    --  First half operating cash flow margin of 54%

    --  First half dividend payout ratio of 60%

    --  2008 free cash flow estimate unchanged

STAMFORD, Conn.--(BUSINESS WIRE)--Aug. 5, 2008--Frontier Communications (NYSE:FTR) (formerly Citizens Communications, NYSE:CZN) today reported second quarter 2008 revenue of $562.6 million, operating income of $162.0 million, and net income of $55.8 million.

"Frontier Communications had another quarter of solid financial and operating results," said Maggie Wilderotter, Chairman and CEO. "Despite a challenging economic environment, our employees did a terrific job of relentlessly focusing on our customers to deliver a strong second quarter performance. Our effective expense management enabled us to achieve an operating cash flow margin of 54.5% for the quarter and a dividend payout ratio of only 60% through the first six months. Finally, we continued to provide returns to our shareholders through dividends and stock repurchases in the first half of the year by applying over 100% of our free cash flow to these activities."

Revenue for the second quarter of 2008 was $562.6 million, as compared to $578.8 million in the second quarter of 2007, a 3 percent decrease. Revenue declined as a result of lower local services revenue, subsidy revenue and switched access revenue, partially offset by a 10 percent increase in data and internet services revenue. Despite the decline in access lines, our customer revenue, which is all revenue except switched access and subsidy, has remained relatively flat overall. The monthly customer revenue per access line has increased approximately $3.50 over the prior year's second quarter while the monthly total revenue per access line has increased $2.78 over the same period. These statistics reflect the Company's success in selling additional products and services to our customer base.

Other operating expenses and network access expenses for the second quarter of 2008 were $256.3 million, as compared to $267.1 million in the second quarter of 2007. The decrease of $10.8 million in 2008 as compared to the second quarter of 2007 is primarily the result of reduced expenses attributable to the integration of the back office, customer service and administrative support functions of the Commonwealth and Global Valley operations acquired in 2007.

Operating income for the second quarter of 2008 was $162.0 million and operating income margin was 28.8 percent, as compared to operating income of $171.3 million and operating income margin of 29.6 percent in the second quarter of 2007. The second quarter 2008 decrease of $9.3 million is primarily the result of the reduction in revenue.

The increase in investment and other income (loss), net reflects the premium paid in the second quarter of 2007 of $16.3 million to redeem the Company's 7.625% Senior Notes due 2008.

Income tax expense for the second quarter of 2008 was favorably impacted by the reversal of $7.5 million in income tax reserves.

The Company lost approximately 45,400 access lines, of which 6,100 were second lines, during the second quarter of 2008 and had more than 2,341,700 access lines at June 30, 2008.

The Company added approximately 16,300 net high-speed internet customers during the second quarter of 2008 and had more than 559,300 high-speed internet customers at June 30, 2008. The Company added approximately 6,200 video customers during the second quarter of 2008 and had more than 107,500 video customers at June 30, 2008.

Capital expenditures were $75.7 million for the second quarter of 2008 and $123.7 million for the first six months of 2008.

Free cash flow was $96.6 million for the second quarter of 2008 and $269.4 million for the first six months of 2008. The second quarter of 2008 includes increased seasonal payments for income taxes and capital expenditures. The Company's dividend represents a payout of 60 percent of free cash flow for the first six months of 2008.

During the second quarter of 2008, the Company repurchased 8,067,000 shares of its common stock for $87.8 million. Through the first half of 2008, the Company repurchased 10,383,000 shares of its common stock for $112.7 million, representing 56 percent of the $200 million share repurchase program.

The Company's free cash flow estimate for 2008 remains unchanged at approximately $470.0 million to $495.0 million after calculating the impact that the "Economic Stimulus Act of 2008" will have on its cash paid for income taxes.

The Company uses certain non-GAAP financial measures in evaluating its performance. These include free cash flow and operating cash flow. A reconciliation of the differences between free cash flow and operating cash flow and the most comparable financial measures calculated and presented in accordance with GAAP is included in the tables that follow. The non-GAAP financial measures are by definition not measures of financial performance under GAAP and are not alternatives to operating income or net income reflected in the statement of operations or to cash flow as reflected in the statement of cash flows and are not necessarily indicative of cash available to fund all cash flow needs. The non-GAAP financial measures used by the Company may not be comparable to similarly titled measures of other companies.

The Company believes that the presentation of non-GAAP financial measures provides useful information to investors regarding the Company's financial condition and results of operations because these measures, when used in conjunction with related GAAP financial measures, (i) together provide a more comprehensive view of the Company's core operations and ability to generate cash flow, (ii) provide investors with the financial analytical framework upon which management bases financial, operational, compensation and planning decisions and (iii) presents measurements that investors and rating agencies have indicated to management are useful to them in assessing the Company and its results of operations. Management uses these non-GAAP financial measures to plan and measure the performance of its core operations, and its divisions measure performance and report to management based upon these measures. In addition, the Company believes that free cash flow and operating cash flow, as the Company defines them, can assist in comparing performance from period to period, without taking into account factors affecting cash flow reflected in the statement of cash flows, including changes in working capital and the timing of purchases and payments. The Company has shown adjustments to its financial presentations to exclude $38.7 million in access revenue for the favorable impact of the one-time carrier dispute settlement in the first half of 2007, $3.4 million and $1.8 million of severance and early retirement costs in the first half of 2008 and 2007, respectively, and $0.5 million and $1.6 million of severance and early retirement costs in the second quarter of 2008 and 2007, respectively, because the Company believes that the magnitude of such revenues in the first half of 2007 is unusual, and such costs in the first half of 2008 materially exceeds the comparable costs in the first half of 2007.

Management uses these non-GAAP financial measures to (i) assist in analyzing the Company's underlying financial performance from period to period, (ii) evaluate the financial performance of its business units, (iii) analyze and evaluate strategic and operational decisions, (iv) establish criteria for compensation decisions, and (v) assist management in understanding the Company's ability to generate cash flow and, as a result, to plan for future capital and operational decisions. Management uses these non-GAAP financial measures in conjunction with related GAAP financial measures. The Company believes that the non-GAAP financial measures are meaningful and useful for the reasons outlined above.

While the Company utilizes these non-GAAP financial measures in managing and analyzing its business and financial condition and believes they are useful to management and to investors for the reasons described above, these non-GAAP financial measures have certain shortcomings. In particular, free cash flow does not represent the residual cash flow available for discretionary expenditures, since items such as debt repayments and dividends are not deducted in determining such measure. Operating cash flow has similar shortcomings as interest, income taxes, capital expenditures, debt repayments and dividends are not deducted in determining this measure. Management compensates for the shortcomings of these measures by utilizing them in conjunction with their comparable GAAP financial measures. The information in this press release should be read in conjunction with the financial statements and footnotes contained in our documents filed with the U.S. Securities and Exchange Commission.

About Frontier Communications

Frontier Communications Corporation (NYSE:FTR) offers telephone, television and internet services in 24 states with approximately 5,700 employees. More information is available at www.frontieronline.com.

This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. These statements are made on the basis of management's views and assumptions regarding future events and business performance. Words such as "believe," "anticipate," "expect" and similar expressions are intended to identify forward-looking statements. Forward-looking statements (including oral representations) involve risks and uncertainties that may cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. These risks and uncertainties are based on a number of factors, including but not limited to: reductions in the number of our access lines and high-speed internet subscribers; the effects of competition from cable, wireless and other wireline carriers (through voice over internet protocol (VOIP) or otherwise); the effects of greater than anticipated competition requiring new pricing, marketing strategies or new product offerings and the risk that we will not respond on a timely or profitable basis; the effects of general and local economic, business, industry and employment conditions on our revenues; our ability to effectively manage service quality; our ability to successfully introduce new product offerings, including our ability to offer bundled service packages on terms that are both profitable to us and attractive to our customers; our ability to sell enhanced and data services in order to offset ongoing declines in revenue from local services, switched access services and subsidies; changes in accounting policies or practices adopted voluntarily or as required by generally accepted accounting principles or regulators; the effects of ongoing changes in the regulation of the communications industry as a result of federal and state legislation and regulation, including potential changes in state rate of return limitations on our earnings, access charges and subsidy payments, and regulatory network upgrade and reliability requirements; our ability to effectively manage our operations, operating expenses and capital expenditures, to pay dividends and to reduce or refinance our debt; adverse changes in the credit markets and/or in the ratings given to our debt securities by nationally accredited ratings organizations, which could limit or restrict the availability and/or increase the cost of financing; the effects of bankruptcies in the telecommunications industry, which could result in potential bad debts; the effects of technological changes and competition on our capital expenditures and product and service offerings, including the lack of assurance that our ongoing network improvements will be sufficient to meet or exceed the capabilities and quality of competing networks; the effects of increased medical, retiree and pension expenses and related funding requirements; changes in income tax rates, tax laws, regulations or rulings, and/or federal or state tax assessments; the effects of state regulatory cash management policies on our ability to transfer cash among our subsidiaries and to the parent company; our ability to successfully renegotiate union contracts expiring in 2008 and thereafter; our ability to pay a $1.00 per common share dividend annually, which may be affected by our cash flow from operations, amount of capital expenditures, debt service requirements, cash paid for income taxes (which will increase in the future) and our liquidity; the effects of significantly increased cash taxes in 2008 and future years; and the effects of any unfavorable outcome with respect to any of our current or future legal, governmental or regulatory proceedings, audits or disputes. These and other uncertainties related to our business are described in greater detail in our filings with the Securities and Exchange Commission, including our reports on Forms 10-K and 10-Q, and the foregoing information should be read in conjunction with these filings. We do not intend to update or revise these forward-looking statements to reflect the occurrence of future events or circumstances.


                 Frontier Communications Corporation
                   Consolidated Financial Data (1)



                                         For the quarter ended
                                                June 30,
                                         ----------------------
(Amounts in thousands, except per share                          %
 amounts)                                    2008       2007   Change
                                         ----------------------------

Income Statement Data
  Revenue                                 $  562,550  $578,826    -3%
                                         ------------ ---------

  Network access expenses                     53,998    53,678     1%
  Other operating expenses                   202,333   213,388    -5%
  Depreciation and amortization              144,250   140,462     3%
                                         ------------ ---------
  Total operating expenses                   400,581   407,528    -2%
                                         ------------ ---------

  Operating income                           161,969   171,298    -5%
  Investment and other income (loss),
   net (3)                                     6,393    (6,517)  198%
  Interest expense                            90,710    98,649    -8%
                                         ------------ ---------
  Income before income taxes                  77,652    66,132    17%
  Income tax expense                          21,874    25,573   -14%
                                         ------------ ---------
Net income attributable to common
 shareholders                             $   55,778  $ 40,559    38%
                                         ============ =========

Weighted average shares outstanding          320,838   340,469    -6%

Basic net income per share attributable
 to common shareholders (4)               $     0.17  $   0.12    42%

Other Financial Data
Capital expenditures                      $   75,737  $ 66,658    14%
Operating cash flow (5)                      306,699   313,354    -2%
Free cash flow (5)                            96,615   116,295   -17%
Dividends paid                                80,221    85,379    -6%
Dividend payout ratio (6)                         83%       73%   14%

                                        For the six months
                                               ended
                                             June 30,
                                      -----------------------
(Amounts in thousands, except per                                 %
 share amounts)                          2008        2007       Change
                                      --------------------------------

Income Statement Data
  Revenue                             $1,131,755  $1,134,973 (2)    0%
                                      ----------- -----------

  Network access expenses                114,547     105,075        9%
  Other operating expenses               405,597     402,655        1%
  Depreciation and amortization          285,330     262,643        9%
                                      ----------- -----------
  Total operating expenses               805,474     770,373        5%
                                      ----------- -----------

  Operating income                       326,281     364,600      -11%
  Investment and other income (loss),
   net (3)                                 5,158       3,500       47%
  Interest expense                       181,570     192,613       -6%
                                      ----------- -----------
  Income before income taxes             149,869     175,487      -15%
  Income tax expense                      48,502      67,261      -28%
                                      ----------- -----------
Net income attributable to common
 shareholders                         $  101,367  $  108,226       -6%
                                      =========== ===========

Weighted average shares outstanding      323,340     332,331       -3%

Basic net income per share
 attributable to common shareholders
 (4)                                  $     0.31  $     0.33 (2)   -6%

Other Financial Data
Capital expenditures                  $  123,723  $  111,769       11%
Operating cash flow (5)                  614,982     590,319        4%
Free cash flow (5)                       269,425     303,850      -11%
Dividends paid                           162,324     170,841       -5%
Dividend payout ratio (6)                     60%         56%       7%


(1) On March 8, 2007, we acquired Commonwealth Telephone Enterprises,
 Inc. (CTE) for approximately $1.1 billion, and on October 31, 2007,
 we acquired Global Valley Networks, Inc. and GVN Services (together
 GVN) for $62.0 million, and have included the historical results of
 CTE and GVN from the dates of acquisition.
(2) Includes the $38.7 million favorable impact of a carrier dispute
 settlement, representing $.07 per share.
(3) Includes premium on debt repurchases of $17.1 million for the
 quarter ended June 30, 2007, and $6.3 million and $18.2 million for
 the six months ended June 30, 2008 and 2007, respectively, and $4.0
 million for bridge loan fee for the six months ended June 30, 2007.
(4) Calculated based on weighted average shares outstanding.
(5) A reconciliation to the most comparable GAAP measure is presented
 at the end of these tables.
(6) Represents dividends paid divided by free cash flow.

                 Frontier Communications Corporation
            Consolidated Financial and Operating Data (1)


                                      For the quarter ended
                                            June 30,
                                      ---------------------
(Amounts in thousands, except                                    %
 operating data)                         2008       2007       Change
                                      -------------------------------

Select Income Statement Data
Revenue
   Local services                     $  214,703 $  226,363(2)    -5%
   Data and internet services            151,655    138,243(2)    10%
   Access services                       101,003    113,429      -11%
   Long distance services                 46,912     47,053        0%
   Directory services                     29,070     28,664        1%
   Other                                  19,207     25,074      -23%
                                      ---------- ----------
Total revenue                            562,550    578,826       -3%
                                      ---------- ----------

Expenses
   Network access expenses                53,998     53,678(2)     1%
   Other operating expenses (4)          202,333    213,388(2)    -5%
   Depreciation and amortization         144,250    140,462        3%
                                      ---------- ----------
Total operating expenses                 400,581    407,528       -2%
                                      ---------- ----------

Operating Income                      $  161,969 $  171,298       -5%
                                      ========== ==========

Other Financial and Operating Data
Revenue:
   Residential                        $  239,633 $  248,550       -4%
   Business                              221,914    216,847        2%
                                      ---------- ----------
          Total customer revenue         461,547    465,397       -1%
   Regulatory (Access services)          101,003    113,429      -11%
                                      ---------- ----------
Total revenue                         $  562,550 $  578,826       -3%
                                      ---------- ----------
Access lines:
   Residential                         1,516,402  1,654,854       -8%
   Business                              825,345    848,864       -3%
                                      ---------- ----------
Total access lines                     2,341,747  2,503,718       -6%
                                      ---------- ----------
Other data:
   Employees                               5,734      6,224       -8%
   High-speed internet (HSI)
    subscribers                          559,345    479,317       17%
   Video subscribers                     107,596     81,092       33%
   Switched access minutes of use (in
    millions)                              2,538      2,748       -8%
   Average monthly total revenue per
    access line                       $    79.31 $    76.53        4%
   Average monthly customer revenue
    per access line                   $    65.07 $    61.53        6%

                                       For the six months
                                              ended
                                            June 30,
                                      ---------------------
(Amounts in thousands, except                                     %
 operating data)                         2008       2007        Change
                                      --------------------------------

Select Income Statement Data
Revenue
   Local services                     $  431,861 $  430,807(2)      0%
   Data and internet services            297,637    256,267(2)     16%
   Access services                       208,821    252,453(3)    -17%
   Long distance services                 93,365     87,481         7%
   Directory services                     57,698     57,334         1%
   Other                                  42,373     50,631       -16%
                                      ---------- ----------
Total revenue                          1,131,755  1,134,973         0%
                                      ---------- ----------

Expenses
   Network access expenses               114,547    105,075(2)      9%
   Other operating expenses (4)          405,597    402,655(2)      1%
   Depreciation and amortization         285,330    262,643         9%
                                      ---------- ----------
Total operating expenses                 805,474    770,373         5%
                                      ---------- ----------

Operating Income                      $  326,281 $  364,600       -11%
                                      ========== ==========

Other Financial and Operating Data
Revenue:
   Residential                        $  480,995 $  470,328         2%
   Business                              441,939    412,192         7%
                                      ---------- ----------
          Total customer revenue         922,934    882,520         5%
   Regulatory (Access services)          208,821    252,453       -17%
                                      ---------- ----------
Total revenue                         $1,131,755 $1,134,973         0%
                                      ---------- ----------
Access lines:
   Residential                         1,516,402  1,654,854        -8%
   Business                              825,345    848,864        -3%
                                      ---------- ----------
Total access lines                     2,341,747  2,503,718        -6%
                                      ---------- ----------
Other data:
   Employees                               5,734      6,224        -8%
   High-speed internet (HSI)
    subscribers                          559,345    479,317        17%
   Video subscribers                     107,596     81,092        33%
   Switched access minutes of use (in
    millions)                              5,141      5,276        -3%
   Average monthly total revenue per
    access line                       $    79.04 $    78.75(5)      0%
   Average monthly customer revenue
    per access line                   $    64.46 $    64.04(6)      1%


(1) On March 8, 2007, we acquired Commonwealth Telephone Enterprises,
 Inc. (CTE) for approximately $1.1 billion, and on October 31, 2007,
 we acquired Global Valley Networks, Inc. and GVN Services (together
 GVN) for $62.0 million, and have included the historical results of
 CTE and GVN from the dates of acquisition.
(2) Reflects a reclassification of $6.3 million and $7.9 million of
 revenue related to our CTE acquisition from local services to data
 and internet services for the quarter and six months ended June 30,
 2007, respectively. Also, expenses reflect a reclassification of $1.8
 million and $2.4 million of expenses related to our CTE acquisition
 from other operating expenses to network access expenses for the
 quarter and six months ended June 30, 2007, respectively.
(3) Includes the $38.7 million favorable impact of a carrier dispute
 settlement.
(4) Includes severance and early retirement costs of $0.5 million and
 $1.6 million for the quarter ended June 30, 2008 and 2007,
 respectively, and $3.4 million and $1.8 million for the six months
 ended June 30, 2008 and 2007, respectively.
(5) For the six months ended June 30, 2007, the calculation excludes
 CTE and GVN data and excludes the $38.7 million favorable one-time
 impact from the first quarter 2007 settlement of a switched access
 dispute.  The amount is $81.82 with the $38.7 million favorable one-
 time impact from the settlement.
(6) For the six months ended June 30, 2007, the calculation excludes
 CTE and GVN data.

                 Frontier Communications Corporation
            Condensed Consolidated Balance Sheet Data (1)

(Amounts in thousands)

                                                 June 30,   December
                                                    2008     31, 2007
                                                 ---------- ----------
                     ASSETS
-------------------------------------------------
Current assets:
  Cash and cash equivalents                      $  178,874 $  226,466
  Accounts receivable and other current assets      269,853    297,688
                                                 ---------- ----------
    Total current assets                            448,727    524,154

Property, plant and equipment, net                3,265,260  3,335,244

Other long-term assets                            3,299,242  3,396,671
                                                 ---------- ----------
      Total assets                               $7,013,229 $7,256,069
                                                 ========== ==========

      LIABILITIES AND SHAREHOLDERS' EQUITY
-------------------------------------------------
Current liabilities:
  Long-term debt due within one year             $    3,828 $    2,448
  Accounts payable and other current liabilities    368,704    443,443
                                                 ---------- ----------
    Total current liabilities                       372,532    445,891

Deferred income taxes and other liabilities       1,063,836  1,075,382
Long-term debt                                    4,746,612  4,736,897
Shareholders' equity                                830,249    997,899
                                                 ---------- ----------
      Total liabilities and shareholders' equity $7,013,229 $7,256,069
                                                 ========== ==========

(1) On March 8, 2007, we acquired Commonwealth Telephone Enterprises,
 Inc. (CTE) for approximately $1.1 billion, and on October 31, 2007,
 we acquired Global Valley Networks, Inc. and GVN Services (together
 GVN) for $62.0 million, and have included the historical results of
 CTE and GVN from the dates of acquisition.

                 Frontier Communications Corporation
                   Consolidated Cash Flow Data (1)

                        (Amounts in thousands)
                                                 For the six months
                                                    ended June 30,
                                                ----------------------
                                                   2008       2007
                                                ---------- -----------

Cash flows provided by (used in) operating
 activities:
Net income                                      $ 101,367  $  108,226
Adjustments to reconcile income to net cash
 provided by operating activities:
  Depreciation and amortization expense           285,330     262,643
  Stock based compensation expense                  6,164       5,445
  Loss on extinguishment of debt                    6,290      20,186
  Other non-cash adjustments                       (7,303)      4,760
  Deferred income taxes (including FIN 48)         (8,996)     28,576
  Change in accounts receivable                     8,039       4,232
  Change in accounts payable and other
   liabilities                                    (58,597)    (71,248)
  Change in other current assets                    6,561       6,736
                                                ---------- -----------
Net cash provided by operating activities         338,855     369,556

Cash flows provided from (used by) investing
 activities:
  Capital expenditures                           (123,723)   (111,769)
  Cash paid for Commonwealth acquisition (net of
   cash acquired)                                       -    (657,610)
  Other assets (purchased) distributions
   received, net                                   (1,277)      3,851
                                                ---------- -----------
Net cash used by investing activities            (125,000)   (765,528)

Cash flows provided from (used by) financing
 activities:

  Long-term debt borrowings                       135,000     950,000
  Long-term debt payments                        (130,281)   (914,516)
  Settlement of interest rate swaps                15,521           -
  Financing costs paid                               (857)    (15,753)
  Premium paid to retire debt                      (6,290)    (16,160)
  Issuance of common stock                            955      11,472
  Dividends paid                                 (162,324)   (170,841)
  Common stock repurchased                       (112,659)    (70,730)
  Repayment of customer advances for
   construction                                      (512)       (506)
                                                ---------- -----------
Net cash used by financing activities            (261,447)   (227,034)

Decrease in cash and cash equivalents             (47,592)   (623,006)
Cash and cash equivalents at January 1,           226,466   1,041,106
                                                ---------- -----------

Cash and cash equivalents at June 30,           $ 178,874  $  418,100
                                                ========== ===========

Cash paid during the period for:
  Interest                                      $ 184,552  $  176,558
  Income taxes                                  $  49,585  $   47,426

(1) On March 8, 2007, we acquired Commonwealth Telephone Enterprises,
 Inc. (CTE) for approximately $1.1 billion, and on October 31, 2007,
 we acquired Global Valley Networks, Inc. and GVN Services (together
 GVN) for $62.0 million, and have included the historical results of
 CTE and GVN from the dates of acquisition.

                                                            Schedule A

         Reconciliation of Non-GAAP Financial Measures (1)


                             For the quarter    For the six months
                               ended June 30,      ended June 30,
                            ------------------- -------------------
(Amounts in thousands)        2008      2007      2008      2007
                            --------- --------- --------- ---------

Net Income to Free Cash
 Flow;
Net Cash Provided by
 Operating Activities
----------------------------

Net income                  $ 55,778  $ 40,559  $101,367  $108,226

 Add back:

    Depreciation and
     amortization            144,250   140,462   285,330   262,643

    Income tax expense        21,874    25,573    48,502    67,261

    Stock based compensation   3,145     2,038     6,164     5,445

 Subtract:

    Cash paid for income
     taxes                    47,726    40,640    49,585    47,426

    Other income (loss), net
     (2)                       4,969   (14,961)   (1,370)  (19,470)

    Capital expenditures      75,737    66,658   123,723   111,769

                            --------- --------- --------- ---------
Free cash flow                96,615   116,295   269,425   303,850 (3)

 Add back:

    Deferred income taxes     (8,714)    4,962    (8,996)   28,576

    Non-cash (gains)/losses,
     net                      (2,745)   19,976     5,151    30,391

    Other income (loss), net
     (2)                       4,969   (14,961)   (1,370)  (19,470)

    Cash paid for income
     taxes                    47,726    40,640    49,585    47,426

    Capital expenditures      75,737    66,658   123,723   111,769

 Subtract:

    Changes in current
     assets and liabilities   (8,775)   11,690    43,997    60,280

    Income tax expense        21,874    25,573    48,502    67,261

    Stock based compensation   3,145     2,038     6,164     5,445

                            --------- --------- --------- ---------
Net cash provided by
 operating activities       $197,344  $194,269  $338,855  $369,556
                            ========= ========= ========= =========

(1) On March 8, 2007, we acquired Commonwealth Telephone
 Enterprises, Inc. (CTE) for approximately $1.1 billion, and on
 October 31, 2007, we acquired Global Valley Networks, Inc. and GVN
 Services (together GVN) for $62.0 million, and have included the
 historical results of CTE and GVN from the dates of acquisition.
(2) Includes premium on debt repurchases of $17.1 million for the
 quarter ended June 30, 2007, and $6.3 million and $18.2 million
 for the six months ended June 30, 2008 and 2007, respectively, and
 $4.0 million for bridge loan fee for the six months ended June 30,
 2007.
(3) Includes the $38.7 million favorable impact of a carrier
 dispute settlement.

                                                            Schedule B

          Reconciliation of Non-GAAP Financial Measures (1)



                               For the quarter ended June 30, 2008
                             ----------------------------------------
(Amounts in thousands)
                                             Severance
                                             and Early
Operating Cash Flow and           As         Retirement       As
Operating Cash Flow Margin     Reported        Costs       Adjusted
---------------------------- ------------   ------------ ------------


Operating Income              $  161,969       $   (480)  $  162,449

 Add back:
    Depreciation and
     amortization                144,250              -      144,250
                             ------------   ------------ ------------

Operating cash flow           $  306,219       $   (480)  $  306,699
                             ============   ============ ============


Revenue                       $  562,550                  $  562,550
                             ============                ============

Operating income margin
(Operating income divided by
 revenue)                           28.8%                       28.9%
                             ============                ============

Operating cash flow margin
(Operating cash flow divided
 by revenue)                        54.4%                       54.5%
                             ============                ============



                                     For the six months ended
                                          June 30, 2008
                             ----------------------------------------

                                             Severance
                                             and Early
Operating Cash Flow and           As         Retirement       As
Operating Cash Flow Margin     Reported        Costs       Adjusted
---------------------------- ------------   ------------ ------------


Operating Income              $  326,281       $ (3,371)  $  329,652

 Add back:
    Depreciation and
     amortization                285,330              -      285,330
                             ------------   ------------ ------------

Operating cash flow           $  611,611       $ (3,371)  $  614,982
                             ============   ============ ============


Revenue                       $1,131,755                  $1,131,755
                             ============                ============

Operating income margin
(Operating income divided by
 revenue)                           28.8%                       29.1%
                             ============                ============

Operating cash flow margin
(Operating cash flow divided
 by revenue)                        54.0%                       54.3%
                             ============                ============


                         For the quarter ended June 30,
                                       2007
                        ----------------------------------
(Amounts in thousands)
                                    Severance
Operating Cash Flow and             and Early
Operating Cash Flow         As      Retirement     As
 Margin                  Reported     Costs     Adjusted
----------------------- ----------- ---------- -----------


Operating Income        $  171,298    $(1,594)   $172,892

 Add back:
    Depreciation and
     amortization          140,462          -     140,462
                        ----------- ---------- -----------

Operating cash flow     $  311,760    $(1,594)   $313,354
                        =========== ========== ===========


Revenue                 $  578,826               $578,826
                        ===========            ===========

Operating income margin
(Operating income
 divided by revenue)          29.6%                  29.9%
                        ===========            ===========

Operating cash flow
 margin
(Operating cash flow
 divided by revenue)          53.9%                  54.1%
                        ===========            ===========



                                   For the six months ended
                                        June 30, 2007
                        ----------------------------------------------

                                                Severance
Operating Cash Flow and              Carrier   and Early
Operating Cash Flow         As       Dispute    Retirement     As
 Margin                  Reported   Settlement    Costs     Adjusted
----------------------- ----------- ---------- ----------- -----------


Operating Income        $  364,600    $38,700    $ (1,776) $  327,676

 Add back:
    Depreciation and
     amortization          262,643          -           -     262,643
                        ----------- ---------- ----------- -----------

Operating cash flow     $  627,243    $38,700    $ (1,776) $  590,319
                        =========== ========== =========== ===========


Revenue                 $1,134,973    $38,700              $1,096,273
                        =========== ==========             ===========

Operating income margin
(Operating income
 divided by revenue)          32.1%                              29.9%
                        ===========                        ===========

Operating cash flow
 margin
(Operating cash flow
 divided by revenue)          55.3%                              53.8%
                        ===========                        ===========


(1) On March 8, 2007, we acquired Commonwealth Telephone Enterprises,
 Inc. (CTE) for approximately $1.1 billion, and on October 31, 2007,
 we acquired Global Valley Networks, Inc. and GVN Services (together
 GVN) for $62.0 million, and have included the historical results of
 CTE and GVN from the dates of acquisition.

CONTACT: Frontier Communications
David Whitehouse, 203-614-5708
Senior Vice President & Treasurer
david.whitehouse@frontiercorp.com

SOURCE: Frontier Communications

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Frontier Communications Corporation's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.