SureWest Video RGUs down 100 in 4Q09

Thursday, February 25th, 2010 
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ROSEVILLE, Calif. — SureWest Communications (Nasdaq: SURW) today announced operating results for the fourth quarter and full year ended December 31, 2009.

Steve Oldham, SureWest’s president and chief executive officer, said, “Our new video service, Advanced Digital TV, has created an exciting buzz among both fiber and copper network customers in the Sacramento region due to its compelling features, such as Whole Home DVR, lightning-fast channel change times and an intuitive program guide. In Kansas City, improvements to the network in 2010 will allow us to add more HD channels and deliver faster Internet speeds.”

As previously announced, SureWest’s video service is expanding to reach over 25,000 existing voice and data marketable ILEC homes on the Sacramento copper network, creating the ability to deliver a new IP-based triple-play option to these potential customers. The first 15,000 homes receiving SureWest’s extended video became available in January 2010 and the second phase of over 10,000 homes will become available throughout the second quarter of 2010.

SureWest Operating Metrics – Broadband, Residential Video:

                                     As of and for the quarter ended
                              --------------------------------------
                                3/31/     6/30/     9/30/    12/31/
                                 2008      2008      2008      2008 
                              --------  --------  --------  --------
  Marketable Homes - Fiber
   & HFC (2)                  211,000   217,700   221,700   232,400
  RGUs - Fiber & HFC           52,500    54,500    55,900    57,500
    Qtrly change                  800     2,000     1,400     1,600
    YoY (% change)                  6%        9%       10%       11%
  RGUs - Copper                 2,700     2,600     2,600     2,600
    Qtrly change                 (200)     (100)        0         0
    YoY (% change)                -13%      -10%      -13%      -10%
  Penetration - Fiber & HFC      24.9%     25.0%     25.2%     24.7%
  ARPU                            $63       $62       $59       $59

                                     As of and for the quarter ended
                              --------------------------------------
                                3/31/     6/30/     9/30/    12/31/
                                 2009      2009      2009      2009 
                              --------  --------  --------  --------
  Marketable Homes - Fiber
   & HFC (2)                  236,500   239,800   240,000   240,500
  RGUs - Fiber & HFC           57,600    56,900    57,000    56,900
    Qtrly change                  100      (700)      100      (100)
    YoY (% change)                 10%        4%        2%       -1%
  RGUs - Copper                 2,400     2,200     2,200     2,200
    Qtrly change                 (200)     (200)        0         0
    YoY (% change)                -11%      -15%      -15%      -15%
  Penetration - Fiber & HFC      24.4%     23.7%     23.8%     23.7%
  ARPU                            $65       $67       $66       $68

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