EX-99.1

Exhibit 99.1



CT COMMUNICATIONS PRESS RELEASE

For Immediate Release
October 26, 2006
Concord, NC
Contact:
Jim Hausman
704.722.2410
Ron Marino
704.722.2212

CT Communications Increases Dividend and Announces Third Quarter 2006 Results

Announcement Highlights

•

20% increase in quarterly common stock dividend to $0.12 per share

•

Net income increased 8.1% to $5.1 million vs. year ago quarter

•

DSL subscribers increased 37% vs. year ago quarter

•

Internet Services operating margin increased to 30%

•

Operating revenue and income up 3.7% and 5.1% year-to-date, respectively, vs. same period last year

CT Communications, Inc. (NASDAQ: CTCI) announced a 20% increase in its regular quarterly common stock dividend to $0.12 per share. The new dividend is payable on December 15, 2006, to all shareholders of record at the close of business on December 1, 2006, and represents the third increase in dividends in the past twenty-four months.

Third Quarter 2006 Consolidated Results

Consolidated operating revenue for the quarter ended September 30, 2006 increased to $45.0 million compared to $44.9 million reported in the third quarter of 2005. Customer recurring revenue increased $0.9 million, or 3.4% from the third quarter of 2005, but was offset by a reduction in telephone system sales. The third quarter of last year included a record $2.1 million in telephone system sales, or $0.9 million higher than the $1.2 million recorded in the third quarter of 2006. The growth in customer recurring revenue was driven by a 37% increase in DSL customers, a 14% increase in Greenfield access lines and an 8% increase in Wireless subscribers.

During the third quarter of 2006, cable company telephone service was introduced in the ILEC service area. In addition, the Company disconnected 384 access lines related to certain transport efficiency initiatives in the Company’s Internet and Data business. After adjustment for the Internet and Data business lines, ILEC net line losses increased by 328 lines compared to the same quarter last year.

Operating expense in the third quarter of 2006 increased 1.3% to $38.4 million from $37.9 million in the third quarter of 2005. The increase in operating expense was primarily due to a $0.4 million increase in

selling expense driven by an increase in marketing expense associated with the entrance of cable telephone competition in the Company’s ILEC service territory, as well as commissions related to our Wireless renewal and retention programs. Although operating income decreased 6.1% to $6.6 million in the third quarter of 2006, operating margin improved sequentially from the second quarter of 2006 to 14.8%.

Other income in the third quarter of 2006 increased $0.6 million to $1.3 million compared to the same period in 2005. During the third quarter of 2006 the Company recorded $1.2 million of interest income associated with the Company’s short-term investments and a $0.8 million gain on the sale of Palmetto MobileNet (“PMN”). The Company received a final cash payment of $4.2 million from the sale of PMN.

During the third quarter of 2006 the Company settled certain State of North Carolina tax credits that lowered tax expense $0.2 million for the quarter. Net income for the third quarter of 2006 was $5.1 million, or $0.26 per diluted common share, compared to $4.7 million, or $0.25 per diluted common share in the third quarter of 2005.

Year-to-Date Consolidated Results

Consolidated operating revenue for the nine months ended September 30, 2006 increased 3.7% to $132.1 million compared to $127.4 million in the same period last year. The increase in operating revenue was primarily driven by a $2.2 million increase in customer recurring revenue, a $0.6 million increase in roaming and settlement revenue and a $1.6 million increase in access and interconnection revenue. Operating expense for the nine months ended September 30, 2006 increased 3.5% to $115.6 million compared to $111.6 million in the same period last year. The increase in operating expense was mainly due to increases in marketing expense, 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 nine months ended September 30, 2006 increased 5.1% to $16.5 million compared to $15.7 million in the same period last year.

Net income for the nine months ended September 30, 2006 was $66.5 million, or $3.38 per diluted common share, compared to $10.7 million, or $0.56 per diluted common share for the same period last year. Included in net income for the nine months ended September 30, 2006 was $54.2 million, or $2.76 per diluted common share, related to the sale of PMN’s interests in ten wireless partnerships. Excluding the PMN transaction, earnings per share increased 10.7% to $0.62 per diluted common share from the same nine-month period last year.

Third Quarter 2006 Results by Business Unit

	•		ILEC — (“Concord Telephone”)

			Concord Telephone’s operating revenue in the third quarter of 2006 decreased 3.3% to $24.4 million from $25.2 million in the same quarter last year. The decrease in operating revenue primarily related to a $0.9 million decrease in telephone system sales compared to the prior year period that included record sales levels due to several large system sales. Operating expense for the third quarter of 2006 decreased 1.9% to $17.9 million from $18.2 million in the third quarter of 2005. The reduction in operating expense was mainly due to a decrease in cost of sales expense related to the lower level of telephone system sales. Operating income for the third quarter of 2006 decreased to $6.6 million from $7.0 million in the same period last year. Operating margin on a sequential quarter basis improved to 26.8% in the third quarter of 2006, which is also an improvement over the year to date 2006 operating margin of 23.7%. Concord Telephone ended the third quarter of 2006 with 107,920 access lines in service.

	•		Wireless Service — (“Wireless”)

			Wireless operating revenue of $9.5 million in the third quarter of 2006 was relatively flat compared to the same period in 2005. Customer recurring revenue increased $0.2 million, but was offset by a decrease in roaming and settlement revenue related to certain rate reductions. Operating expense in the third quarter of 2006 increased $0.7 million to $9.1 million compared to the third quarter of 2005. The increase in operating expense was primarily attributable to a $0.4 million increase in network expense driven by higher network usage, as well as a $0.2 million increase in commission expense associated with retention and contract renewal programs targeted to reduce customer churn. Operating income in the third quarter of 2006 decreased to $0.4 million from $1.1 million in the same period last year. Wireless ended the third quarter of 2006 with 48,706 subscribers, an 8% increase in customers compared to the third quarter of 2005. Customer churn in the third quarter of 2006 improved to 1.6% from 1.7% in the third quarter of 2005.

	•		CLEC

			CLEC operating revenue in the third quarter of 2006 increased $0.2 million to $5.0 million compared to the third quarter of 2005. The increase in operating revenue was mainly due to a $0.2 million increase in access and interconnection revenue related to the growth in CLEC lines. The operating loss for the third quarter of 2006 was $0.1 million compared to $0.3 million in the same period last year. CLEC ended the third quarter of 2006 with 34,868 access lines compared to 31,853 access lines at the end of the same quarter last year.

	•		Greenfield

			Greenfield’s operating revenue in the third quarter of 2006 increased 9.1% to $2.7 million compared to the third 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 third quarter of 2006 increased $0.2 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 was $0.6 million for the third quarter of 2006 and 2005. Greenfield ended the third quarter of 2006 with 16,361 access lines compared to 14,387 access lines in the third quarter of 2005. As of September 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 third quarter of 2006 increased 18.4% to $3.5 million from $2.9 million in the same period last year, while operating expense decreased 2.3% to $2.4 million from the same quarter last year. DSL revenue increased $0.6 million, or 29.8% to $2.5 million. Operating income in the third quarter of 2006 increased to $1.0 million from $0.4 million in the same quarter last year. CTC Internet Services ended the third quarter of 2006 with 24,544 DSL customers, an increase of 6,623 customers compared to the third quarter of 2005. Dial-up customers declined to 5,132, while high-speed customers increased to 812 at September 30, 2006.

Future Period Guidance

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

•

4th Quarter 2006

•

Revenue of $43.0 to $44.0 million

•

Operating income of $6.0 to $6.5 million

•

Depreciation expense of $8.0 to $8.1 million

•

Diluted earnings per share of $0.20 to $0.22

•

Capital expenditures of approximately $13 to $15 million

•

Full Year 2006

•

Revenue of $175.0 to $176.0 million

•

Operating income of $22.5 to $23.0 million

•

Depreciation expense of $32.0 to $32.2 million

•

Diluted earnings per share of $0.82 to $0.84, excluding $2.73 related to the estimated full-year impact of the PMN transaction, based on projected full-year diluted weighted average shares outstanding

•

Capital expenditures of approximately $37 to $39 million

CT Communications will host a conference call to discuss the results of the third quarter on Friday, October 27, 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 November 30, 2006. Additionally, a replay of the call will be available until 5:00 PM ET on Friday, November 3, 2006 at 800-633-8284. Enter access number 21307434.

CT Communications, Inc., headquartered in Concord, N.C., 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 broadband high-speed data services, local and long-distance telephone services, and digital wireless voice and data 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 September 30,						%
	2006			2005			Change
Operating Revenue
ILEC	$	24,406		$	25,237			(3.3	%)
Wireless		9,459			9,521			(0.7	%)
CLEC		4,977			4,785			4.0	%
Greenfield		2,686			2,463			9.1	%
Internet & Data		3,478			2,937			18.4	%

Total Operating Revenue		45,006			44,943			0.1	%


Operating Expense
ILEC		17,854			18,194			(1.9	%)
Wireless		9,077			8,391			8.2	%
CLEC		5,074			5,113			(0.8	%)
Greenfield		3,273			3,075			6.4	%
Internet & Data		2,434			2,492			(2.3	%)
Other		648			600			8.0	%

Total Operating Expense		38,360			37,865			1.3	%


Operating Income		6,646			7,078			(6.1	%)

Other Income (Expense)
Investment, Equity Method		—			1,434
Gains, Interest, Dividends		2,020			396
Other Expenses, Principally Interest		(721	)		(1,162	)

Total Other Income (Expense)		1,299			668


Pre-Tax Income		7,945			7,746

Income Tax Expense		2,825			3,010


Net Income	$	5,120		$	4,736


Diluted Weighted Average Shares		20,046			18,975

Diluted Earnings Per Share	$	0.26		$	0.25

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


	Nine Months Ended September 30,						%
	2006			2005			Change
Operating Revenue
ILEC	$	71,551		$	69,912			2.3	%
Wireless		28,231			26,976			4.7	%
CLEC		14,370			14,641			(1.9	%)
Greenfield		7,756			7,181			8.0	%
Internet & Data		10,194			8,663			17.7	%

Total Operating Revenue		132,102			127,373			3.7	%


Operating Expense
ILEC		54,612			53,349			2.4	%
Wireless		26,553			24,632			7.8	%
CLEC		15,330			15,356			(0.2	%)
Greenfield		9,901			9,052			9.4	%
Internet & Data		7,334			7,606			(3.6	%)
Other		1,843			1,652			11.6	%

Total Operating Expense		115,573			111,647			3.5	%


Operating Income		16,529			15,726			5.1	%

Other Income (Expense)
Investment, Equity Method		90,103			3,982
Gains, Interest, Dividends		4,778			2,073
Impairment on Investments		(876	)		(529	)
Other Expenses, Principally Interest		(2,593	)		(3,693	)

Total Other Income (Expense)		91,412			1,833


Pre-Tax Income		107,941			17,559

Income Tax Expense		41,439			6,881


Net Income	$	66,502		$	10,678


Diluted Weighted Average Shares		19,652			18,986

Diluted Earnings Per Share	$	3.38		$	0.56

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


	September 30,		December 31,
	2006		2005

ASSETS
Cash and Cash Equivalents	$	22,280	$	23,011
Short-term Investments		94,567		—
Accounts Receivable and Unbilled Revenue, Net		15,722		16,336
Wireless Spectrum Held-for-Sale		—		15,646
Other Assets		9,361		7,220

Current Assets		141,930		62,213

Investment Securities		5,345		5,845
Investments in Unconsolidated Companies		3,823		15,618
Property, Plant and Equipment, Net		199,994		200,179
Other Assets		38,497		37,565

TOTAL ASSETS	$	389,589	$	321,420


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Portion of Long-Term Debt	$	6,250	$	15,000
Accounts Payable		8,164		8,482
Customer Deposits and Advance Billings		2,283		2,538
Income Taxes Payable		7,754		2,107
Other Accrued Liabilities		12,208		11,814

Current Liabilities		36,659		39,941


Long-Term Debt		36,250		40,000
Deferred Credits and Other Liabilities		43,937		45,599
Stockholders’ Equity		272,743		195,880

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	389,589	$	321,420

CT Communications, Inc.
Customer Information


	September 30,		September 30,		%
	2006		2005		Change

ILEC Access Lines
Business Lines		28,164		28,532		(1.3	%)
Residential Lines		79,756		82,511		(3.3	%)

Total ILEC Access Lines		107,920		111,043		(2.8	%)

CLEC Access Lines		34,868		31,853		9.5	%
Greenfield Access Lines		16,361		14,387		13.7	%


Total Wired Access Lines		159,149		157,283		1.2	%


Wireless Subscribers		48,706		45,285		7.6	%


Long Distance Lines
In ILEC		86,279		84,723		1.8	%
In CLEC		23,503		24,723		(4.9	%)
In Greenfield		10,158		8,080		25.7	%

Total Long Distance Lines		119,940		117,526		2.1	%


Internet Access Customers
Dial-Up		5,132		7,197		(28.7	%)
DSL		24,544		17,921		37.0	%
High Speed		812		649		25.1	%

Total Internet Access Customers		30,488		25,767		18.3	%

Greenfield Projects


			Projected
	Lines in		Marketable		Total
	Service		Lines		Projects

By Year Signed
Previous Years		14,155		40,000		75
2003		1,097		5,000		18
2004		853		4,000		12
2005		129		4,500		13
2006		127		1,000		6

Total		16,361		54,500		124


By Type
Mall		2,608		3,000		3
Single Family Homes		9,738		38,500		69
Multi-Dwelling Units		2,877		11,500		41
Business		1,138		1,500		11

Total		16,361		54,500		124

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

Capital Expenditures


	Three Months Ended September 30,						Nine Months Ended September 30,
	2006			2005			2006			2005

ILEC	$	5,732		$	3,921		$	12,367		$	12,128
Wireless		444			225			1,131			1,692
CLEC		658			348			2,341			1,008
Greenfield		1,371			1,055			4,305			4,058
Internet		348			352			905			950
Other		2,545			326			3,100			739

Total	$	11,098		$	6,227		$	24,149		$	20,575

% of Revenue		24.7	%		13.9	%		18.3	%		16.2	%

Depreciation


	Three Months Ended September 30,				Nine Months Ended September 30,
	2006		2005		2006		2005

ILEC	$	5,058	$	5,040	$	15,365	$	15,278
Wireless		651		601		1,927		1,681
CLEC		681		635		2,016		1,898
Greenfield		1,034		868		3,003		2,518
Internet		302		431		1,005		1,365
Other		226		334		729		1,008

Total	$	7,952	$	7,909	$	24,045	$	23,748

Reconciliation of Reported Results to Normalized Results
For the nine months ended September 30, 2006


			Palmetto
	GAAP		MobileNet*			Normalized

Operating Revenue	$	132,102	$	—		$	132,102
Operating Expense		115,573		—			115,573

Operating Income		16,529		—			16,529
Other Income (Expense)		91,412		(89,164	)		2,248

Pre-Tax Income		107,941		(89,164	)		18,777
Income Tax Expense		41,439		(34,943	)		6,496

Net Income	$	66,502	$	(54,221	)	$	12,281


Diluted EPS	$	3.38	$	(2.76	)	$	0.62



*		Equity income related to the March 2006 sale of PMN’s ownership interests in ten wireless partnerships.