8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 27, 2006

CT COMMUNICATIONS, INC.

(Exact name of registrant as specified in its charter)

NORTH CAROLINA
(State or other
Jurisdiction
of incorporation) 0-19179
(Commission
File Number) 56-1837282
(IRS Employer
Identification No.)

1000 PROGRESS PLACE NE
P.O. BOX 227
CONCORD, NORTH CAROLINA
(Address of principal executive offices) 28026-0227
(Zip Code)

Registrant’s telephone number, including area code: (704) 722-2500

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e4(c))

INFORMATION TO BE INCLUDED IN THE REPORT

ITEM 2.02 Results of Operations and Financial Condition.

On July 27, 2006, CT Communications, Inc. (the “Company”) announced its second quarter 2006 results. The press release related to those results is furnished as Exhibit 99.1.

On July 28, 2006, the Company will hold an investor conference call and webcast to disclose financial results for the second quarter 2006. The Supplemental Information package for use during this conference call is attached as Exhibit 99.2. All information in the Supplemental Information package is presented as of June 30, 2006, and the Company does not assume any obligation to correct or update said information in the future.

This information, including the related Exhibits attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as shall be expressly set forth by specific reference in such filing.

This Current Report on Form 8-K and the Exhibits attached hereto contain forward-looking statements within the meaning of the federal securities laws. These forward-looking statements are based on current expectations and are not guarantees of future performance. Further, the forward-looking statements are subject to the limitations listed in such Exhibits and in the Company’s other SEC reports, including that actual events or results may differ materially from those in the forward-looking statements.

ITEM 8.01 Other Events.

On July 27, 2006, the Company announced the declaration of a quarterly cash dividend on its common stock of $0.10 per share to all shareholders of record as of the close of business on September 1, 2006. The quarterly dividend is payable on September 15, 2006. The press release related to the dividend declaration is furnished as Exhibit 99.3.

ITEM 9.01 Financial Statements and Exhibits.

(c) Exhibits.

Ex. No.	Description
99.1	Press Release dated July 27, 2006, Announcing Second Quarter 2006 Results
99.2	Supplemental Information for Press Release dated July 27, 2006
99.3	Press Release dated July 27, 2006, Announcing Quarterly Cash Dividend

SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	CT COMMUNICATIONS, INC.                   (Registrant)
Date: July 27, 2006	By:	/s/ Ronald A. Marino
		Ronald A. Marino
		Chief Accounting Officer

EX-99.1

	Exhibit 99.1
CT COMMUNICATIONS PRESS RELEASE
	For Immediate Release
	July 27, 2006
	Concord, NC
	Contact:
	Jim Hausman
		704.722.2410
	Ron Marino
		704.722.2212

CT Communications Announces Second Quarter 2006 Results

Second Quarter 2006 Highlights

• Company received $16.0 million from Clearwire wireless spectrum transaction

• Operating revenue increased 7.1% to $44.0 million vs. year ago quarter

• Operating income increased 34.3% to $4.8 million vs. year ago quarter

• Net income increased 31.8% to $3.9 million vs. year ago quarter

• DSL subscribers increased 40% vs. year ago quarter

• Wireless customer churn improved to 1.3% while subscribers increased 7%

Second Quarter 2006 Consolidated Results

CT Communications, Inc. (NASDAQ: CTCI) announces consolidated operating revenue for the quarter ended June 30, 2006 increased 7.1% to $44.0 million from $41.0 million in the second quarter of 2005. The increase resulted primarily from a $0.8 million increase in customer recurring revenue, a $0.4 million increase in Wireless roaming revenue and a $1.1 million increase in access and interconnection revenue. The growth in customer recurring revenue was driven by a 40% increase in DSL customers, a 15% increase in Greenfield access lines and a 7% increase in Wireless subscribers. The increase in Wireless roaming revenue was driven by higher roaming minutes of use on the Company’s wireless network.

Operating expense in the second quarter of 2006 increased 4.6% to $39.2 million from $37.5 million in the second quarter of 2005. The increase in operating expense was primarily attributable to a $0.9 million increase in marketing expense and to $0.7 million in non-cash compensation expense related to fair value adjustments for CTC stock units held in the Company’s nonqualified deferred compensation plan. The increase in marketing expense was related to additional advertising and promotional efforts, as well as

proactive retention programs in preparation for the entrance of cable telephone competition in the Company’s ILEC service territory. Operating income increased 34.3% to $4.8 million in the second quarter of 2006, compared to $3.5 million in the second quarter of 2005.

Other income was $1.4 million in the second quarter of 2006 and 2005. Net income for the second quarter of 2006 was $3.9 million, or $0.20 per diluted common share, compared to $3.0 million, or $0.15 per diluted common share in the second quarter of 2005.

Consolidated operating revenue for the six months ended June 30, 2006 increased 5.7% to $87.1 million compared to $82.4 million in the same period last year. The increase in operating revenue was mainly driven by a $1.3 million increase in customer recurring revenue, a $0.8 million increase in roaming and settlement revenue and a $1.6 million increase in access and interconnection revenue. Operating expense for the six months ended June 30, 2006 increased 4.7% to $77.2 million compared to $73.8 million in the same period last year. The increase in operating expense was mainly due to an increase in administrative expense related to marketing, professional fees and a charge for non-cash compensation expense related to fair value adjustments for CTC stock units held in the Company’s nonqualified deferred compensation plan. Operating income for the six months ended June 30, 2006 increased 14.3% to $9.9 million compared to $8.6 million in the same period last year. Net income for the six months ended June 30, 2006 was $61.4 million, or $3.17 per diluted common share, compared to $5.9 million, or $0.31 per diluted common share. Included in net income for the six months ended June 30, 2006 was $54.2 million, or $2.80 per diluted common share, related to the sale of Palmetto MobileNet’s (“PMN”) interests in several wireless partnerships to Alltel. Excluding the PMN transaction, diluted earnings per share increased 19.4% from the same six-month period last year.

Second Quarter 2006 Results by Business Unit

•

ILEC – (“Concord Telephone”)

Concord Telephone’s operating revenue in the second quarter of 2006 increased 7.1% to $23.6 million from $22.0 million in the same quarter last year. The $1.6 million increase in operating revenue was driven by a $0.9 million increase in access and interconnection revenue, a $0.4 million increase in telephone system sales and a $0.3 million increase in universal service revenue. Operating expense for the second quarter of 2006 increased 6.1% to $19.0 million from $17.9 million in the second quarter of 2005. The increase in operating expense was due to a $1.3 million increase in selling, general and administrative expense that was primarily attributable to a $0.7 million increase in personnel expense largely

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	due to a non-cash charge for compensation expense related to fair value adjustments for CTC stock units held in the Company’s nonqualified deferred compensation plan and to a $0.5 million increase in marketing expense. Operating income for the second quarter of 2006 increased to $4.6 million from $4.1 million in the same period last year. Operating margin for the second quarter of 2006 was 19.4% compared to 18.6% for the second quarter of 2005. Concord Telephone ended the second quarter of 2006 with 109,356 access lines in service, a 2.2% decrease from the second quarter of 2005.
•	Wireless Service – (“Wireless”)
	Wireless operating revenue in the second quarter of 2006 increased 7.6% to $9.6 million from $9.0 million in the second quarter of 2005. The increase was attributable to a $0.3 million increase in customer recurring revenue driven by a 7% increase in Wireless subscribers, as well as a $0.4 million increase in roaming and settlement revenue. Operating expense in the second quarter of 2006 increased $0.3 million to $8.9 million compared to the second quarter of 2005. The increase in operating expense was primarily attributable to a $0.3 million increase in marketing expense and a $0.2 million increase in Wireless handset and accessories expense associated with retention and contract renewal programs targeted to reduce customer churn. Partially offsetting these expense increases was a $0.2 million reduction in roaming and settlement expense. Operating income in the second quarter of 2006 increased to $0.8 million from $0.4 million in the same period last year. Wireless ended the second quarter of 2006 with 47,932 subscribers, a 7% increase in customers compared to the second quarter of 2005. Customer churn in the second quarter of 2006 improved to 1.3% from 1.7% in the second quarter of 2005.
•	CLEC
	CLEC operating revenue in the second quarter of 2006 was $4.8 million, which was relatively flat in comparison to the same period last year. Operating revenue in the second quarter of 2006 included a $0.2 million increase in access and interconnection revenue from the recovery of previously disputed billings, but was offset by a $0.1 million decrease in customer recurring revenue. The operating loss for the second quarter of 2006 and 2005 was $0.3 million. CLEC ended the second quarter of 2006 with 34,372 access lines compared to 31,644 access lines for the same quarter last year.

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•	Greenfield
	Greenfield’s operating revenue in the second quarter of 2006 increased $0.1 million to $2.6 million compared to the second quarter of 2005. The increase in operating revenue was attributable to growth in customer recurring revenue driven by a 15% increase in access lines. Operating expense in the second quarter of 2006 increased $0.3 million to $3.4 million compared to the same period last year, due primarily to a $0.2 million increase in depreciation expense. Operating loss for the second quarter of 2006 was $0.8 million compared to $0.6 million in the second quarter of 2005. Greenfield ended the second quarter of 2006 with 15,895 access lines compared to 13,864 access lines in the second quarter of 2005. As of June 30, 2006 the Company had 124 Greenfield projects, which represent a potential of more than 54,500 marketable lines upon completion of the projects.
•	Internet & Data – (“CTC Internet Services”)
	CTC Internet Services operating revenue in the second quarter of 2006 increased 17.3% to $3.4 million from $2.9 million in the same period last year. DSL revenue increased $0.6 million, or 32.0% to $2.5 million, while operating expense decreased 3.2% to $2.4 million from the same quarter last year. Operating income in the second quarter of 2006 increased to $1.0 million from $0.4 million in the same quarter last year. CTC Internet Services ended the second quarter of 2006 with 22,907 DSL customers, an increase of 6,573 customers compared to the second quarter of 2005. Dial-up customers declined to 5,594, while high-speed customers increased to 754 at June 30, 2006.

Future Period Guidance

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

• 3rd Quarter 2006

o Revenue of $43.0 to $44.0 million

o Operating income of $5.5 to $6.5 million

o Depreciation expense of $8.1 to $8.3 million

o Diluted earnings per share of $0.20 to $0.22

o Capital expenditures of $10.0 to $12.0 million

• Full Year 2006

o Revenue of $173.0 to $175.0 million

o Operating income of $21.0 to $23.0 million

o Depreciation expense of $32.5 to $33.5 million

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o Diluted earnings per share of $0.71 to $0.75, excluding the $2.77 related to the estimated full-year impact of the PMN transaction

o Capital expenditures of $35.5 to $39.5 million

CT Communications will host a conference call to discuss the results of the second quarter on Friday, July 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 August 31, 2006. Additionally, a replay of the call will be available until 5:00 PM ET on Friday, August 4, 2006 at 800-633-8284. Enter access number 21299818.

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

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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 June 30,						%
	2006			2005			Change
Operating Revenue
ILEC Services	$	23,558		$	21,996			7.1	%
Wireless Services		9,645			8,963			7.6	%
CLEC Services		4,763			4,721			0.9	%
Greenfield Services		2,559			2,427			5.4	%
Internet & Data Services		3,432			2,926			17.3	%
Total Operating Revenue		43,957			41,033			7.1	%
Operating Expense
ILEC Services		18,981			17,894			6.1	%
Wireless Services		8,870			8,554			3.7	%
CLEC Services		5,049			4,992			1.1	%
Greenfield Services		3,351			3,014			11.2	%
Internet & Data Services		2,431			2,511			(3.2	%)
Other		511			520			(1.7	%)
Total Operating Expense		39,193			37,485			4.6	%
Operating Income		4,764			3,548			34.3	%
Other Income (Expense)
Investment, Equity Method		263			1,305
Gains, Interest, Dividends		1,945			1,529
Impairment on Investments		—			(111	)
Other Expenses, Principally Interest		(838	)		(1,356	)
Total Other Income (Expense)		1,370			1,367
Pre-Tax Income		6,134			4,915
Income Tax Expense		2,241			1,962
Net Income	$	3,893		$	2,953
Diluted Weighted Average Shares		19,452			19,090
Diluted Earnings Per Share	$	0.20		$	0.15

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CT Communications, Inc.

Consolidated Statements of Income

(Unaudited, in thousands, except per share amounts)

	Six Months Ended June 30,						%
	2006			2005			Change
Operating Revenue
ILEC Services	$	47,145		$	44,675			5.5	%
Wireless Services		18,772			17,455			7.5	%
CLEC Services		9,393			9,856			(4.7	%)
Greenfield Services		5,070			4,718			7.5	%
Internet & Data Services		6,716			5,726			17.3	%
Total Operating Revenue		87,096			82,430			5.7	%
Operating Expense
ILEC Services		36,758			35,155			4.6	%
Wireless Services		17,476			16,241			7.6	%
CLEC Services		10,256			10,243			0.1	%
Greenfield Services		6,628			5,977			10.9	%
Internet & Data Services		4,900			5,114			(4.2	%)
Other		1,195			1,052			13.6	%
Total Operating Expense		77,213			73,782			4.7	%
Operating Income		9,883			8,648			14.3	%
Other Income (Expense)
Investment, Equity Method		90,103			2,548
Gains, Interest, Dividends		2,758			1,677
Impairment on Investments		(876	)		(529	)
Other Expenses, Principally Interest		(1,872	)		(2,531	)
Total Other Income (Expense)		90,113			1,165
Pre-Tax Income		99,996			9,813
Income Tax Expense		38,614			3,871
Net Income	$	61,382		$	5,942
Diluted Weighted Average Shares		19,359			19,035
Diluted Earnings Per Share	$	3.17		$	0.31

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CT Communications, Inc.

Consolidated Balance Sheets

(Unaudited, in thousands)

	June 30,		December 31,
	2006		2005
ASSETS
Cash and Cash Equivalents	$	16,882	$	23,011
Short-term Investments		94,869		—
Accounts Receivable and Unbilled Revenue, Net		15,563		16,336
Wireless Spectrum Held-for-Sale		—		15,646
Other Assets		8,479		7,220
Current Assets		135,793		62,213
Investment Securities		5,270		5,845
Investments in Unconsolidated Companies		7,145		15,618
Property, Plant and Equipment, Net		196,897		200,179
Other Assets		38,365		37,565
TOTAL ASSETS	$	383,470	$	321,420
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Portion of Long-Term Debt	$	5,000	$	15,000
Accounts Payable		7,877		8,482
Customer Deposits and Advance Billings		2,307		2,538
Income Taxes Payable		15,887		2,107
Other Accrued Liabilities		9,240		11,814
Current Liabilities		40,311		39,941
Long-Term Debt		37,500		40,000
Deferred Credits and Other Liabilities		45,055		45,599
Stockholders’ Equity		260,604		195,880
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	383,470	$	321,420

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CT Communications, Inc.
Customer Information

	June 30,		June 30,		%
	2006		2005		Change
ILEC Access Lines
Business Lines		28,404		28,560		(0.5	%)
Residential Lines		80,952		83,207		(2.7	%)
Total ILEC Access Lines		109,356		111,767		(2.2	%)
CLEC Access Lines		34,372		31,644		8.6	%
Greenfield Access Lines		15,895		13,864		14.6	%
Total Wired Access Lines		159,623		157,275		1.5	%
Wireless Subscribers		47,932		44,723		7.2	%
Long Distance Lines
In ILEC		86,422		84,774		1.9	%
In CLEC		23,605		24,739		(4.6	%)
In Greenfield		9,633		7,631		26.2	%
Total Long Distance Lines		119,660		117,144		2.1	%
Internet Access Customers
Dial-Up		5,594		7,774		(28.0	%)
DSL		22,907		16,334		40.2	%
High Speed		754		632		19.3	%
Total Internet Access Customers		29,255		24,740		18.2	%

Greenfield Projects

			Projected
	Lines in		Marketable		Total
	Service		Lines		Projects
By Year Signed
Previous Years		13,918		40,000		75
2003		1,070		5,000		18
2004		743		4,000		12
2005		100		4,500		13
2006		64		1,000		6
Total		15,895		54,500		124
By Type
Mall		2,591		3,000		3
Single Family Homes		9,412		38,500		69
Multi-Dwelling Units		2,844		11,500		41
Business		1,048		1,500		11
Total		15,895		54,500		124

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

Capital Expenditures

	Three Months Ended June 30,						Six Months Ended June 30,
	2006			2005			2006			2005
ILEC	$	3,077		$	3,748		$	6,635		$	8,207
Wireless		491			374			687			1,467
CLEC		441			437			1,683			660
Greenfield		1,342			1,655			2,934			3,003
Internet		307			170			557			598
Other		406			206			555			413
Total	$	6,064		$	6,590		$	13,051		$	14,348
% of Revenue		13.8	%		16.1	%		15.0	%		17.4	%

Depreciation

	Three Months Ended June 30,				Six Months Ended June 30,
	2006		2005		2006		2005
ILEC	$	5,105	$	5,129	$	10,307	$	10,238
Wireless		641		576		1,276		1,080
CLEC		677		634		1,335		1,263
Greenfield		996		840		1,969		1,650
Internet		329		455		703		934
Other		225		339		503		674
Total	$	7,973	$	7,973	$	16,093	$	15,839

Reconciliation of Reported Results to Normalized Results

For the six months ended June 30, 2006

			Palmetto
	GAAP		MobileNet			Normalized
Operating Revenue	$	87,096	$	—		$	87,096
Operating Expense		77,213		—			77,213
Operating Income		9,883		—			9,883
Other Income (Expense)		90,113		(89,164	)		949
Pre-Tax Income		99,996		(89,164	)		10,832
Income Tax Expense		38,614		(34,943	)		3,671
Net Income	$	61,382	$	(54,221	)	$	7,161
Diluted EPS	$	3.17	$	(2.80	)	$	0.37

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EX-99.2

Exhibit 99.2

CT Communications, Inc.
Supplemental Information
Second Quarter 2006

ILEC

	2Q 2006			2Q 2005			% Change
Cap Ex as a % of Revenue		13.1	%		17.0	%
Business Access Lines		28,404			28,560			(0.5	%)
Residential Access Lines		80,952			83,207			(2.7	%)
Gross Adds		3,089			2,805			10.1	%
Disconnects		3,604			3,859			(6.6	%)
Net Adds (Losses)		(515	)		(1,054	)		51.1	%
Monthly Churn Rate		1.1	%		1.1	%
Long Distance Penetration		79.0	%		75.8	%
DSL Penetration of ILEC Lines		18.3	%		12.9	%

Wireless

	2Q 2006			2Q 2005%			Change
Cap Ex as a % of Revenue		5.1	%		4.2	%
Gross Adds		2,646			2,940			(10.0	%)
Disconnects		1,859			2,308			(19.5	%)
Net Adds / (Losses)		787			632			24.5	%
Monthly Churn Rate		1.3	%		1.7	%
Subscriber ARPU	$	41.31		$	42.04			(1.7	%)
Cell Sites		90			82			9.8	%

CLEC

	2Q 2006			2Q 2005%			Change
Cap Ex as a % of Revenue		9.3	%		9.3	%
T-1/PRI Facility Based Lines		20,996			17,676			18.8	%
B-1/R-1 Facility Based Lines		7,459			8,003			(6.8	%)
Resale and UNE-P Lines		5,917			5,965			(0.8	%)
Gross Adds		1,942			1,114			74.3	%
Disconnects		960			1,331			(27.9	%)
Net Adds (Losses)		982			(217	)		552.5	%
Monthly Churn Rate		0.9	%		1.4	%
CLEC LD Lines		21,055			20,708			1.7	%
Out of Area LD Only Lines		2,550			4,031			(36.7	%)
LD Penetration of CLEC Lines		61.3	%		65.4	%

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Greenfield

	2Q 2006			2Q 2005			% Change
Cap Ex as a % of Revenue		52.4	%		68.2	%
Business Lines		5,262			4,578			14.9	%
Residential Lines		10,633			9,286			14.5	%
Gross Adds		1,549			1,371			13.0	%
Disconnects		978			958			2.1	%
Net Adds / (Losses)		571			413			38.3	%
Monthly Churn Rate		2.1	%		2.3	%
Greenfield LD Lines		9,633			7,631			26.2	%
LD Penetration of Grfld. Lines		60.6	%		55.0	%
DSL Penetration of Grfld. Lines		18.2	%		13.3	%

Internet & Data

	2Q 2006			2Q 2005			% Change
Cap Ex as a % of Revenue		8.9	%		5.8	%
DSL Gross Adds		2,373			1,790			32.6	%
DSL Disconnects		1,176			979			20.1	%
DSL Net Adds (Losses)		1,197			811			47.6	%
Dial-Up Gross Adds		264			390			(32.3	%)
Dial-Up Disconnects		701			1,110			(36.8	%)
Dial-Up Net Adds (Losses)		(437	)		(720	)		39.3	%
High Speed Gross Adds		89			66			34.8	%
High Speed Disconnects		51			51			0.0	%
High Speed Net Adds (Losses)		38			15			153.3	%

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EX-99.3

	Exhibit 99.3
CT COMMUNICATIONS PRESS RELEASE
	July 27, 2006
	Concord, NC
	Jim Hausman
		704.722.2410
	Ron Marino
		704.722.2212

CT Communications Declares Quarterly Dividend

CT Communications, Inc., (Nasdaq: CTCI) declared a quarterly cash dividend on its common stock of $0.10 per share to all shareholders of record as of the close of business on September 1, 2006. The quarterly dividend is payable on September 15, 2006.

CT Communications, Inc., which is headquartered in Concord, NC, 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 and related services, including local and long distance telephone service, Internet and data services and wireless services.