EX-99.1

Exhibit 99.1



CT COMMUNICATIONS PRESS RELEASE

For Immediate Release
April 27, 2006
Concord, NC
Contact:
Jim Hausman
704.722.2410
Duane Johnson
704.722.3231

CT Communications Announces First Quarter 2006 Results

First Quarter 2006 Highlights

•

Company receives $97.4 million from Palmetto MobileNet transaction

•

Net income grows to $57.2 million, including $54.1 million from Palmetto transaction

•

Operating revenue increases 4.2% to $43.1 million vs. year ago quarter

•

Best ever quarter for net DSL additions; 35% higher than previous record

•

Wireless customer churn improves to 1.4% while subscribers increase 7%

First Quarter 2006 Consolidated Results

CT Communications, Inc. (NASDAQ: CTCI) announces net income of $57.2 million and earnings per diluted common share of $2.98 for the first quarter of 2006. The first quarter diluted earnings per share include CTC’s share of Palmetto MobileNet’s sale of its interests in several wireless partnerships to Alltel, which contributed $2.82 to the quarter results. Asset impairment charges related to certain fixed wireless broadband equipment and certain investment securities totaled $0.03 per share. Diluted earnings per share, excluding the effect of these items, was $0.19 in the first quarter of 2006.

Consolidated operating revenue for the quarter ended March 31, 2006 increased 4.2% to $43.1 million from $41.4 million in the first quarter of 2005. The increase resulted primarily from a $0.5 million increase in customer recurring revenue, a $0.5 million increase in Wireless roaming revenue and a $0.5 million increase in access and interconnection revenue. The growth in customer recurring revenue was driven by a 40% increase in DSL customers, a 14% increase in Greenfield access lines and a 7% increase in Wireless subscribers. Partially offsetting the growth in these business units was a 2.6% decline in ILEC access lines. The increase in Wireless roaming revenue was driven by higher roaming minutes of

use on the Company’s wireless network, while the increase in access and interconnection revenue was primarily due to an increase in facility billings.

Operating expense in the first quarter of 2006 increased 4.7% to $38.0 million from $36.3 million in the first quarter of 2005. The increase in operating expense was primarily attributable to a $0.7 million increase in cost of service, a $0.6 million increase in administrative expense, a $0.3 million increase in depreciation expense and an asset impairment charge of $0.2 million. The increase in cost of service was primarily related to a $0.5 million increase in Wireless handset and accessories expense associated with retention and contract renewal programs targeted to improve customer churn. Also contributing to the increase in cost of service was a $0.2 million increase in Wireless roaming and settlement expense related to CTC Wireless customers’ higher minutes of use on other carriers’ networks. The increase in administrative expense was largely due to increases in medical claims and to changes made during 2005 to certain incentive programs for stock based compensation. The asset impairment charge relates to certain fixed wireless broadband equipment.

First Quarter 2006 Results by Business Unit

	•		ILEC – (“Concord Telephone”)

			Concord Telephone’s operating revenue in the first quarter of 2006 increased 4.0% to $23.6 million from $22.7 million in the same quarter last year. The $0.9 million increase in operating revenue was primarily due to a $0.8 million increase in access and interconnection revenue associated with higher facility billings. Operating expense for the first quarter of 2006 increased 3.0% to $17.8 million from $17.3 million in the first quarter of 2005. The increase in operating expense was mainly due to a $0.4 million increase in personnel expense due to an increase in medical benefit costs and to changes made during 2005 to certain incentive programs for stock based compensation. Operating income for the first quarter of 2006 increased 7.2% to $5.8 million from $5.4 million in the same period last year. Operating margin for the first quarter of 2006 was 24.6% compared to 23.9% for the first quarter of 2005. Concord Telephone ended the first quarter of 2006 with 109,871 access lines in service, a 2.6% decrease from the first quarter of 2005.

	•		Wireless Service – (“Wireless”)

			Wireless’ operating revenue in the first quarter of 2006 increased 7.5% to $9.1 million from $8.5 million in the first quarter of 2005. The increase was attributable to a $0.5 million increase in

			roaming and settlement revenue and a $0.2 million increase in customer recurring revenue driven by a 7% increase in Wireless subscribers. Operating expense in the first quarter of 2006 increased $0.9 million to $8.6 million compared to the first quarter of 2005. The increase in operating expense was primarily attributable to a $0.5 million increase in Wireless handset and accessories expense associated with retention and contract renewal programs targeted to reduce customer churn and to a $0.2 million increase in roaming and settlement expense. Operating income in the first quarter of 2006 decreased to $0.5 million from $0.8 million in the same period last year. Wireless ended the first quarter of 2006 with 47,145 subscribers, a 7% increase in customers compared to the first quarter of 2005. Customer churn in the first quarter of 2006 improved to 1.4% from 1.6% in the first quarter of 2005.

	•		CLEC

			CLEC operating revenue in the first quarter of 2006 decreased $0.5 million to $4.6 million compared to the same period last year. The decline in operating revenue was due to a $0.3 million decrease in access and interconnection revenue and a $0.2 million decrease in customer recurring revenue. Access and interconnection revenue in the first quarter of 2005 included $0.5 million in recoveries of previously disputed billings, while the decline in customer recurring revenue was attributable to lower average rates for customer contract renewals. Operating loss for the first quarter of 2006 was $0.6 million compared to an operating loss of $0.1 million in the first quarter of 2005. CLEC ended the first quarter of 2006 with 33,390 access lines compared to 31,861 access lines for the same quarter last year.

	•		Greenfield

			Greenfield’s operating revenue in the first quarter of 2006 increased 9.6% to $2.5 million from $2.3 million in the first quarter of 2005. The increase in operating revenue was attributable to growth in customer recurring revenue driven by a 14% increase in access lines. Operating expense in the first quarter of 2006 increased $0.3 million to $3.3 million compared to the same period last year, due primarily to a $0.2 million increase in depreciation expense. Operating loss for the first quarter of 2006 was $0.8 million compared to $0.7 million in the first quarter of 2005. Greenfield ended the first quarter of 2006 with 15,324 access lines compared to 13,451 access lines in the first quarter of 2005. As of March 31, 2006 the Company had 122 Greenfield projects, which represent a potential of more than 54,000 marketable lines at the completion of the projects.

	•		Internet & Data – (“CTC Internet Services”)

			CTC Internet Services’ operating revenue in the first quarter of 2006 increased 17.3% to $3.3 million from $2.8 million in the same period last year. DSL revenue increased $0.6 million, or 32.0% to $2.3 million, while operating expense decreased 5.1% to $2.5 million from the same quarter last year. Operating income in the first quarter of 2006 increased to $0.8 million from $0.2 million in the same quarter last year. CTC Internet Services ended the first quarter of 2006 with 21,710 DSL customers, an increase of 6,187 customers compared to the first quarter of 2005. Dial-up customers declined to 6,031, while high-speed customers increased to 716 at March 31, 2006.

Future Period Guidance

We currently expect operating results to approximate the following during these future periods:

•

2nd Quarter 2006

	o		Revenue of $41.5 to $43.5 million

	o		Operating income of $4.9 to $5.3 million

	o		Depreciation expense of $8.1 to $8.3 million

	o		Diluted earnings per share of $0.16 to $0.18

	o		Capital expenditures of $7.0 to $9.0 million

•

Full Year 2006

	o		Revenue of $168.0 to $172.0 million

	o		Operating income of $17.0 to $21.0 million

	o		Depreciation expense of $32.0 to $34.0 million

	o		Diluted earnings per share of $3.44 to $3.50

	o		Capital expenditures of $35.5 to $39.5 million

CT Communications will host a conference call to discuss the results of the first quarter on Friday, April 28, 2006 at 10:00 AM ET. You are invited to listen to the conference call that will be broadcast live over the Internet at www.ctc.net. If you are unable to listen during the live webcast, the call will be archived on the web site at www.ctc.net until May 31, 2006. Additionally, a replay of the call will be available until 5:00 PM ET on Friday, May 5, 2006 at 800-633-8284. Enter access number 21290420.

CT Communications, Inc. is headquartered in Concord, N.C. and is a growing provider of integrated telecommunications and related services to residential and business customers located primarily in North

Carolina. CT Communications, Inc. offers a comprehensive package of telecommunications services, including local and long distance telephone services, Internet and data services and wireless services.

Certain statements contained in this press release are “forward-looking statements,” within the meaning of federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties and assumptions made by management about us, including, among other things, changes in industry conditions created by the Telecommunications Act of 1996 and related state and federal legislation and regulations, the impact of economic conditions related to financial performance of customers, business partners, competitors and peers within the telecommunications industry, the recovery of the substantial costs incurred over the past few years in connection with our expansion into new businesses, retention of our existing customer base and our ability to attract new customers, our ability to control pricing and product offerings in a highly competitive industry, our ability to attract and retain key personnel, the performance of our investments, rapid changes in technology, our ability to manage capital expenditures related to changes in technology, actions of our competitors, and the impact of economic and political events on our business, operating regions and customers, including terrorist attacks. In some cases, these forward-looking statements can be identified by the use of words such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “intend” or “potential” or the negative of those words or other comparable words. These forward-looking statements may differ materially from actual events or results because they involve estimates, assumptions and uncertainties and should be viewed with caution. We undertake no obligation to update or revise any forward-looking statements, whether as the result of new information, future events or otherwise. Readers are also directed to consider the risks, uncertainties and other factors discussed in documents filed by us with the Securities and Exchange Commission, including those matters summarized under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2005.

CT Communications, Inc.
Consolidated Statements of Income
(Unaudited, in thousands, except per share amounts)


	Three Months Ended March 31,						%
	2006			2005			Change
Operating Revenue
ILEC Services	$	23,587		$	22,679			4.0	%
Wireless Services		9,127			8,492			7.5	%
CLEC Services		4,630			5,135			(9.8	%)
Greenfield Services		2,511			2,291			9.6	%
Internet & Data Services		3,284			2,800			17.3	%

Total Operating Revenue		43,139			41,397			4.2	%


Operating Expense
ILEC Services		17,777			17,261			3.0	%
Wireless Services		8,606			7,687			12.0	%
CLEC Services		5,207			5,251			(0.8	%)
Greenfield Services		3,277			2,963			10.6	%
Internet & Data Services		2,469			2,603			(5.1	%)
Other		684			532			28.6	%

Total Operating Expense		38,020			36,297			4.7	%


Operating Income		5,119			5,100			0.4	%

Other Income (Expense)
Investment, Equity Method		89,840			1,243
Gains, Interest, Dividends		812			148
Impairment on Investments		(876	)		(418	)
Other Expenses, Principally Interest		(1,034	)		(1,175	)

Total Other Income (Expense)		88,742			(202	)


Pre-Tax Income		93,861			4,898

Income Tax Expense		36,705			1,909


Net Income	$	57,156		$	2,989


Diluted Weighted Average Shares		19,187			18,980

Diluted Earnings Per Share	$	2.98		$	0.16

CT Communications, Inc.
Consolidated Balance Sheets
(Unaudited, in thousands)


	March 31,		December 31,
	2006		2005
ASSETS
Cash and Cash Equivalents	$	46,555	$	23,011
Temporary Investments		61,704		—
Accounts Receivable and Unbilled Revenue, Net		15,058		16,336
Wireless Spectrum Held-for-Sale		15,646		15,646
Other Assets		8,739		7,220

Current Assets		147,702		62,213

Investment Securities		5,584		5,845
Investments in Unconsolidated Companies		7,324		15,618
Property, Plant and Equipment, Net		198,827		200,179
Other Assets		37,949		37,565

TOTAL ASSETS	$	397,386	$	321,420


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Portion of Long-Term Debt	$	5,000	$	15,000
Accounts Payable		7,490		8,482
Customer Deposits and Advance Billings		2,507		2,538
Income Taxes Payable		36,847		2,107
Other Accrued Liabilities		6,707		11,814

Current Liabilities		58,551		39,941


Long-Term Debt		38,750		40,000
Deferred Credits and Other Liabilities		46,446		45,599
Stockholders’ Equity		253,639		195,880

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	397,386	$	321,420

CT Communications, Inc.
Customer Information


	March 31,		March 31,		%
	2006		2005		Change
ILEC Access Lines
Business Lines		28,241		28,647		(1.4	%)
Residential Lines		81,630		84,174		(3.0	%)

Total ILEC Access Lines		109,871		112,821		(2.6	%)

CLEC Access Lines		33,390		31,861		4.8	%

Greenfield Access Lines		15,324		13,451		13.9	%


Total Wired Access Lines		158,585		158,133		0.3	%


Wireless Subscribers		47,145		44,091		6.9	%

Long Distance Lines
In ILEC		85,999		84,900		1.3	%
In CLEC		23,485		24,443		(3.9	%)
In Greenfield		9,088		7,326		24.1	%

Total Long Distance Lines		118,572		116,669		1.6	%

Internet Access Customers
Dial-Up		6,031		8,494		(29.0	%)
DSL		21,710		15,523		39.9	%
High Speed		716		617		16.0	%

Total Internet Access Customers		28,457		24,634		15.5	%


			Projected
	Lines in		Marketable		Total
Greenfield Projects	Service		Lines		Projects
By Year Signed
Previous Years		13,622		40,000		75
2003		1,003		5,000		18
2004		614		4,000		12
2005		85		4,000		13
2006		—		1,000		4

Total		15,324		54,000		122

By Type
Mall		2,551		3,000		3
Single Family Homes		9,014		38,000		67
Multi-Dwelling Units		2,867		11,000		41
Business		892		2,000		11

Total		15,324		54,000		122

CT Communications, Inc.
Other Selected Financial Data
(Unaudited, in thousands)


	Three Months Ended March 31,
Capital Expenditures	2006			2005
ILEC	$	3,558		$	4,459
Wireless		196			1,093
CLEC		1,242			223
Greenfield		1,592			1,348
Internet		250			428
Other		149			207

Total	$	6,987		$	7,758

% of Revenue		16.2	%		18.7	%


	Three Months Ended March 31,
Depreciation	2006		2005
ILEC	$	5,202	$	5,109
Wireless		635		504
CLEC		658		629
Greenfield		973		810
Internet		374		479
Other		278		335

Total	$	8,120	$	7,866

Reconciliation of Reported Results to Normalized Results
Three Months Ended March 31, 2006


									Investment
			Palmetto			Fixed Asset			Securities
	GAAP		MobileNet			Impairment			Impairment		Normalized

Operating Revenue	$	43,139	$	—		$	—		$	—	$	43,139
Operating Expense		38,020		—			(190	)		—		37,830

Operating Income		5,119		—			190			—		5,309
Other Income (Expense)		88,742		(88,939	)		—			876		679

Pre-Tax Income		93,861		(88,939	)		190			876		5,988
Income Tax Expense		36,705		(34,817	)		74			343		2,305

Net Income	$	57,156	$	(54,122	)	$	116		$	533	$	3,683


Diluted EPS	$	2.98	$	(2.82	)	$	0.01		$	0.03	$	0.19