Exhibit 99.1

CTE Reports Fourth Quarter Diluted Earnings Per Share of $0.67,
Reflecting an 18% Increase Versus Year Ago Quarter

Dallas, PA – February 15, 2005 – Commonwealth Telephone Enterprises, Inc. (“CTE”) [NASDAQ: CTCO], today announced financial results for the 2004 fourth quarter.

CTE Consolidated Results
(Note: Beginning with the 2004 fourth quarter, all reported diluted earnings per share figures are presented on a comparable basis to reflect the change in accounting for contingent convertible securities as prescribed by the Emerging Issues Task Force of the Financial Accounting Standards Board.)

For the 2004 fourth quarter, CTE reported diluted earnings per share (“EPS”) of $0.67, versus reported diluted EPS of $0.57 in the 2003 fourth quarter. Included in the 2004 and 2003 fourth quarter reported diluted EPS are reductions of $0.08 per share and $0.06 per share, respectively, in connection with the revised accounting for contingent convertible securities. Also included in CTE’s 2004 fourth quarter reported diluted EPS is a $0.8 million (pre-tax), or $0.02 per share (after-tax), favorable effect resulting from the settlement of a trunking dispute with Verizon, a

$1.7 million (pre-tax), or $0.04 per share (after-tax) favorable effect resulting primarily from certain network costs settlements, and a $1.2 million (after-tax), or $0.05 per share (after-tax) unfavorable effect resulting from a true-up of income tax liability. Included in CTE’s 2003 fourth quarter reported diluted EPS is a $1.6 million (pre-tax), or $0.04 per share (after-tax), favorable effect resulting from an after-tax settlement in connection with certain restructuring charges recorded in the 2000 fourth quarter.

For the 2004 full year, CTE reported diluted EPS of $2.60, versus a reported diluted EPS of $2.92 for the 2003 full year. Included in the 2004 and 2003 full year reported diluted EPS are reductions of $0.28 per share and $0.15 per share, respectively, in connection with the revised accounting for contingent convertible securities. The 2003 full year also includes a one-time, after-tax gain of $13.2 million, or $0.51 per diluted share, in connection with the previously announced adoption of new accounting rules on asset retirement obligations under SFAS 143 (Statement of Financial Accounting Standards No. 143), which were effective January 1, 2003. A summary of certain items that are reflected in the 2004 full year and 2003 full year reported diluted EPS figures is detailed on an accompanying schedule.

The 2004 versus 2003 fourth quarter and full year reported diluted EPS results also reflect the accretive effect of CTE’s common stock repurchases during 2004. CTE’s authorized common stock repurchase program commenced in November 2003.

CTE ended the 2004 fourth quarter with a total of 471,842 switched access lines installed, reflecting a decrease of 5,287 switched access lines installed over the past 12 months, or a reduction of 1%.

CTE’s reported consolidated revenues in the 2004 fourth quarter were $83.6 million, down 1% versus 2003 fourth quarter revenues of $84.6 million.

CTE’s reported consolidated operating income in the 2004 fourth quarter was $27.7 million, versus $25.9 million in last year’s fourth quarter, reflecting an increase of 7%.

For the 2004 fourth quarter, CTE reported net income of $16.0 million, versus reported net income of $14.8 million in the 2003 fourth quarter.

Consolidated capital expenditures (“CAPEX”) were $12.1 million in the 2004 fourth quarter, versus CAPEX of $17.8 million in the year ago quarter.

The table below sets forth highlights of CTE’s 2004 fourth quarter consolidated results, versus the 2003 fourth quarter:

CTE’s consolidated revenues for the 2004 full year were $335.8 million, slightly above the 2003 full year revenues of $335.7 million. Consolidated operating income was $106.4 million, versus $103.4 million for the 2003 full year. Consolidated capital expenditures were $43.5 million, versus $49.5 million for the 2003 full year.

The table below sets forth highlights of CTE’s 2004 full year consolidated results, versus the 2003 full year consolidated results:

Common Stock Repurchase Program Update
In the 2004 fourth quarter, CTE did not repurchase any additional shares of common stock. Since the stock repurchase program began in November 2003, CTE has repurchased 3,047,244 shares of common stock in open market and block transactions at an average all-in cost of approximately $38.90 per share, or just under $119 million.

Repurchased shares have been placed in Treasury and may be used for the Company’s employee benefit plans. No time limit has been set for the completion of the remaining $31 million of authorized common stock repurchases. The remaining authorized repurchases will be executed at CTE’s discretion, based on ongoing assessments of the Company’s capital needs and the market value of CTE’s common stock.

Commonwealth Telephone Company (“CT”) Results
CT had a total of 333,022 switched access lines installed at the end of the 2004 fourth quarter – reflecting a reduction of slightly less than 2% versus last year’s fourth quarter. CT’s residential additional line penetration was 36% at the end of the quarter. CT’s business line growth in the 2004 fourth quarter was modestly positive versus the 2003 fourth quarter.

CT’s 2004 fourth quarter revenues were $56.2 million, versus revenues of $57.3 million in the 2003 fourth quarter. For the 2004 full year, revenues were $227.7 million, versus $223.8 million for the 2003 full year, a growth rate of 2%.

CT’s 2004 fourth quarter operating income was $23.9 million, versus $24.6 million in the 2003 fourth quarter. For the 2004 full year, operating income was $100.4 million, versus $97.2 million for the 2003 full year, a growth rate of 3%.

CT’s 2004 fourth quarter CAPEX were $8.0 million, versus $10.4 million in the 2003 fourth quarter. For the 2004 full year, CAPEX were $27.0 million, versus $28.6 million for the 2003 full year.

CTSI Results
CTSI had a total of 138,820 switched access lines installed at the end of the 2004 fourth quarter – slightly above the 138,667 switched access lines installed at the end of the 2003 fourth quarter. At the end of the 2004 fourth quarter, 98% of CTSI’s access lines were “on-switch,” and 55% were “on-net” (defined as 100% on CTSI’s owned network). CTSI’s business/residential line split at the end of the 2004 fourth quarter was 91%/9%.

CTSI’s 2004 fourth quarter revenues were $21.6 million, versus revenues of $20.7 million in the 2003 fourth quarter. CTSI’s 2004 fourth quarter and full year revenues include a $0.8 million favorable effect resulting from the settlement of a trunking dispute with Verizon. For the 2004 full year, CTSI’s revenues were $83.6 million, versus 2003 full year revenues of $85.3 million. The 2004 full year revenue figure also reflects the loss of approximately $7.0 million of access revenues in connection with the previously disclosed PLU issue versus the 2003 full year.

CTSI’s operating income in the 2004 fourth quarter was $4.5 million, versus operating income of $2.9 million in the 2003 fourth quarter. CTSI’s 2004 fourth quarter and full year operating income include a $0.8 million favorable effect resulting from the settlement of a trunking dispute with Verizon, as well as a $1.7 million favorable effect primarily resulting from certain network

costs settlements. For the 2004 full year, CTSI’s operating income was $10.4 million, versus 2003 full year operating income of $10.6 million. The 2004 full year operating income also reflects the loss of approximately $7.0 million of operating income in connection with the PLU issue versus the 2003 full year.

CTSI’s 2004 fourth quarter capital expenditures were $3.4 million, versus $6.5 million in the year ago quarter. For the 2004 full year, CTSI’s CAPEX were $14.9 million, versus 2003 full year CAPEX of $19.2 million.

Jack Flash® DSL
In the 2004 fourth quarter, CTE’s DSL (digital subscriber line) product, Jack Flash®, installed 1,583 net new DSL subscribers. Jack Flash® had 18,612 installed DSL subscribers at the end of the 2004 fourth quarter, having added a record total of 5,622 net new subscribers over the past 12 months. Jack Flash® is marketed in CTE’s CT and CTSI geographies. Jack Flash® utilizes DSL technology to provide broadband connectivity over standard telephone lines at speeds over 50 times faster than today’s traditional dial-up modems.

2005 Guidance Outlined
The table below sets forth CTE’s consolidated 2005 full year guidance, which Mr. Mahoney will discuss on this morning’s conference call and webcast:

About CTE
Headquartered in Dallas, PA, Commonwealth Telephone Enterprises, Inc., serves a growing base of business and residential customers with the full array of technologically advanced data and voice telecommunications products and services, including broadband data services and high-speed Internet access, delivered over its 100% digitally switched, fiber-rich network.

CTE’s primary operating segments are: Commonwealth Telephone Company (“CT”), the nation’s seventh largest publicly held independent local exchange carrier, which has been operating in various rural Pennsylvania markets since 1897; and, CTSI, LLC (“CTSI”), a local exchange carrier operating in competitive markets outside CT’s territory, that formally

commenced operations in 1997. Jack Flash®, a broadband data service that uses DSL technology to offer high-speed Internet access and digital connectivity solutions, is offered throughout CTE’s service territories. CTE’s support businesses include epix® Internet Services (www.epix.net), one of the Northeast’s largest rural Internet Service Providers (“ISPs”), and Commonwealth Communications, a provider of telecommunications equipment and facilities management services.

A web site featuring current information regarding Commonwealth Telephone Enterprises, Inc., can be found on the Internet at www.ct-enterprises.com. However, the information on this web site does not form a part of this release.

Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Certain information included in this press release is forward-looking. Such forward-looking information involves important risks and uncertainties that could significantly affect expected results in the future and cause them to be different from those expressed in any forward-looking statements made by, or on behalf of, the Company. These risks and uncertainties include, but are not limited to, uncertainties related to the Company’s ability to further penetrate its markets and the related costs of that effort, economic conditions, acquisitions and divestitures, government and regulatory policies, the pricing and availability of equipment, materials and inventories, technological developments and changes in the competitive environment in which the Company operates and receipt of necessary approvals.

COMMONWEALTH TELEPHONE ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(Dollars in Thousands)
(GAAP)

COMMONWEALTH TELEPHONE ENTERPRISES, INC.
SUMMARY OF CERTAIN ITEMS INCLUDED IN REPORTED EPS
(UNAUDITED)
(Dollars in Thousands, Except Per Share Data)

(more)

11TH ADD/COMMONWEALTH TELEPHONE ENTERPRISES, INC./FEBRUARY 15, 2005

COMMONWEALTH TELEPHONE ENTERPRISES, INC.
CONSOLIDATED QUARTERLY STATEMENTS OF OPERATIONS
(UNAUDITED)
(GAAP)

	THREE MONTHS ENDED
		MARCH 31,		JUNE 30,	SEPTEMBER 30,

		2004		2004		2004

Income before Cumulative Effect of Accounting Change	$	14,565	$	16,318	$	15,119
Cumulative Effect of Accounting Change, Net of Tax		-		-		-

Net Income		14,565		16,318		15,119

Net Income Adjustment for Interest on Convertible Debt, Net of Tax		1,869		1,874		1,868

Net Income, as Adjusted	$	16,434	$	18,192	$	16,987

Weighted Average Common Shares Outstanding - Basic		22,142,626		21,207,371		20,957,919

Effect of Dilutive Securities on Shares Outstanding:
Stock Options and Restricted Stock		161,724		180,113		206,862
Convertible Debt		5,263,170		5,263,170		5,263,170

Weighted Average Common Shares Outstanding - Diluted		27,567,520		26,650,654		26,427,951

Diluted Earnings per
Average Common Share (as reported):

Income before Cumulative Effect of Accounting Change		$0.65		$0.76		$0.71
Cumulative Effect of Accounting Change, Net of Tax		$0.00		$0.00		$0.00

Net Income		$0.65		$0.76		$0.71

Diluted Earnings per
Average Common Share (as adjusted):

Income before Cumulative Effect of Accounting Change		$0.60		$0.68		$0.64
Cumulative Effect of Accounting Change, Net of Tax		$0.00		$0.00		$0.00

Net Income		$0.60		$0.68		$0.64

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12TH ADD/COMMONWEALTH TELEPHONE ENTERPRISES, INC./FEBRUARY 15, 2005

COMMONWEALTH TELEPHONE ENTERPRISES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(Dollars in Thousands)

	DECEMBER 31, 2004		DECEMBER 31, 2003

ASSETS

CURRENT ASSETS:

Cash and Temporary Cash Investments	$	312,260	$	336,035

Accounts Receivable and Unbilled Revenues, Net of Allowance for Doubtful Accounts of $2,185 in 2004 and $2,329 in 2003		40,090		50,240

Other Current Assets		8,804		9,387

Deferred Income Taxes		13,388		17,016

Total Current Assets		374,542		412,678

PROPERTY PLANT AND EQUIPMENT (NET OF ACCUMULATED DEPRECIATION OF $506,711 IN 2004 AND $452,989 IN 2003)		382,523		410,485

INVESTMENTS		10,338		10,204

DEFERRED CHARGES AND OTHER ASSETS		16,028		18,286

TOTAL ASSETS	$	783,431	$	851,653

(more)

13TH ADD/COMMONWEALTH TELEPHONE ENTERPRISES, INC./FEBRUARY 15, 2005

COMMONWEALTH TELEPHONE ENTERPRISES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(Dollars in Thousands)

	DECEMBER 31, 2004			DECEMBER 31, 2003

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Notes Payable	$	35,000		$	65,000

Capital Lease Obligation		721			777

Current Maturities of Long Term Debt		-			5,623

Accounts Payable		25,012			29,135

Advance Billings and Customer Deposits		5,316			5,212

Accrued Expenses		55,057			54,331

Accrued Restructuring Expenses		344			812

Total Current Liabilities		121,450			160,890

LONG TERM DEBT		300,000			323,898

CAPITAL LEASE OBLIGATION		361			1,082

DEFERRED INCOME TAXES		77,279			79,876

OTHER LONG TERM LIABILITIES		18,411			23,178

COMMON SHAREHOLDERS' EQUITY:

Common Stock		24,172			24,014

Additional Paid-in Capital		284,358			267,076

Deferred Compensation		(10,093	)		(6,451	)


Other Comprehensive Loss		(830	)		(2,490	)

Retained Earnings		86,931			24,900

Treasury Stock at Cost, 3,049,114 shares at December 31, 2004 and 1,207,016 at December 31, 2003		(118,608	)		(44,320	)

Total Common Shareholders' Equity		265,930			262,729

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	783,431		$	851,653

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14TH ADD/COMMONWEALTH TELEPHONE ENTERPRISES, INC./FEBRUARY 15, 2005

COMMONWEALTH TELEPHONE ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(Dollars in Thousands)
(GAAP)

	YEAR ENDED DECEMBER 31,

		2004			2003

NET CASH PROVIDED BY OPERATING ACTIVITIES	$	142,505		$	150,275
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to Property, Plant & Equipment		(43,519	)		(47,372	)
Other		3,655			3,636

Net Cash Used in Investing Activities		(39,864	)		(43,736	)

CASH FLOWS FROM FINANCING ACTIVITIES:

Issuance of Long-Term Debt		-			300,000
Redemption of Long-Term Debt		(29,521	)		(56,788	)
Redemption of Short-Term Debt		(30,000	)		-
Proceeds from Exercise of Stock Options		9,136			3,881
Capital Lease Payments		(777	)		(491	)
Payment Made for Debt Issuance Costs		(77	)		(8,674	)
Stock Repurchases		(75,177	)		(43,367	)

Net Cash Used in Financing Activities		(126,416	)		194,561

Net (Decrease)/Increase in Cash and Temporary Cash Investments		(23,775	)		301,100

Cash and Temporary Cash Investments at Beginning of Period		336,035			34,935

Cash and Temporary Cash Investments at End of Period	$	312,260		$	336,035

###





INVESTOR NEWS

Contact:	David G. Weselcouch
	Senior Vice President – Investor Relations
	and Corporate Communications
	(570) 631-2807

	2004 Fourth Quarter	2003 Fourth Quarter	% Change Inc./(Dec.)

Total Access Lines	471,842	477,129	(1%)
Revenues	$83.6M	$84.6M	(1%)
Operating Income	$27.7M	$25.9M	7%
Depreciation and Amortization	$17.6M	$18.1M	(3%)
CAPEX	$12.1M	$17.8M	(32%)
Reported EPS	$0.67	$0.57	18%

	2004 Full Year	2003 Full Year	% Change Inc./(Dec.)

Total Access Lines	471,842	477,129	(1	%)
Revenues	$335.8M	$335.7M	-
Operating Income	$106.4M	$103.4M	3	%
Depreciation and Amortization	$71.0M	$71.1M	-
CAPEX	$43.5M	$49.5M	(12	%)
Reported EPS	$2.60	$2.92*	(11	%)

	Item	2005 Full Year Guidance*

Consolidated	Access Line Growth	(2%) -	0%
	Revenue Growth	(1%) -	0%
	Operating Income	$95M -	$97M
	Depreciation and Amortization	$70M -	$71M
	Effective Tax Rate		38%
	Diluted EPS – 1Q05	$0.57 -	$0.59
	Diluted EPS – FY05	$2.42 -	$2.45
	CAPEX	$40M -	$42M

		THREE MONTHS ENDED DECEMBER 31, 2004							THREE MONTHS ENDED DECEMBER 31, 2003
		CT		CTSI		OTHER		TOTAL		CT		CTSI		OTHER		TOTAL
Sales	$	56,248	$	21,563	$	5,830	$	83,641	$	57,335	$	20,665	$	6,602	$	84,602
Costs & Expenses (excluding other operating expenses)		20,125		12,142		6,080		38,347		20,823		14,055		7,292		42,170
Depreciation & Amortization		12,260		4,895		481		17,636		11,947		5,354		820		18,121
Restructuring Reversals		-		-		-		-		-		(1,636)		-		(1,636)

Operating Income (Loss)		23,863		4,526		(731)		27,658		24,565		2,892		(1,510)		25,947

Interest and Dividend Income								1,726								1,186
Interest Expense								(4,403)								(4,535)
Other Income (Expense), Net								199								229
Equity in Income of Unconsolidated Entities								971								843

Income before Income Taxes and
Cumulative Effect of Accounting Change								26,151								23,670

Provision for Income Taxes								10,122								8,866

Income before Cumulative
Effect of Accounting Change								16,029								14,804

Cumulative Effect of Accounting Change,
Net of Tax								-								-

Net Income							$	16,029							$	14,804

*	Includes a one-time, after-tax gain of $13.2 million, or $0.51 per diluted share, in connection with the previously announced adoption of new accounting rules on asset retirement obligations under SFAS 143 (Statement of Financial Accounting Standards No. 143), which were effective January 1, 2003.

		YEAR ENDED DECEMBER 31, 2004								YEAR ENDED DECEMBER 31, 2003
		CT		CTSI		OTHER		TOTAL		CT		CTSI		OTHER		TOTAL
Sales	$	227,666	$	83,568	$	24,577	$	335,811	$	223,827	$	85,336	$	26,559	$	335,722
Costs & Expenses (excluding other operating expenses)		79,219		53,809		26,161		159,189		79,730		55,610		27,500		162,840

Depreciation & Amortization		48,047		20,205		2,722		70,974		46,944		20,748		3,445		71,137

Restructuring Reversals		-		(799)		-		(799)		-		(1,636)		-		(1,636)

Operating Income (Loss)		100,400		10,353		(4,306)		106,447		97,153		10,614		(4,386)		103,381

Interest and Dividend Income								5,773								3,372
Interest Expense								(16,800)								(13,560)
Other Income (Expense), Net								686								(884)
Equity in Income of Unconsolidated Entities								3,236								2,698

Income before Income Taxes and
Cumulative Effect of Accounting Change								99,342								95,007

Provision for Income Taxes								37,311								35,372

Income before Cumulative
Effect of Accounting Change								62,031								59,635

Cumulative Effect of Accounting Change,
Net of Tax								-								13,230

Net Income							$	62,031							$	72,865

	THREE MONTHS ENDED DECEMBER 31,				YEAR ENDED DECEMBER 31,
		2004		2003		2004		2003

Income before Cumulative Effect of Accounting Change	$	16,029	$	14,804	$	62,031	$	59,635
Cumulative Effect of Accounting Change, Net of Tax		-		-		-		13,230

Net Income		16,029		14,804		62,031		72,865

Net Income Adjustment for Interest on Net of Tax Convertible Debt,		1,869		1,822		7,480		3,369

Net Income, as Adjusted	$	17,898	$	16,626	$	69,511	$	76,234

Weighted Average Common Shares Outstanding - Basic		21,003,357		23,498,967		21,325,907		23,515,367

Effect of Dilutive Securities on Shares Outstanding:
Stock Options and Restricted Stock		262,122		157,901		190,608		182,469
Convertible Debt		5,263,170		5,263,170		5,263,170		2,408,081

Weighted Average Common Shares Outstanding - Diluted		26,528,649		28,920,038		26,779,685		26,105,917

Basic Earnings per
Average Common Share:

Income before Cumulative Effect of Accounting Change		$0.76		$0.63		$2.91		$2.54
Cumulative Effect of Accounting Change, Net of Tax		$0.00		$0.00		$0.00		$0.56

Net Income		$0.76		$0.63		$2.91		$3.10

Diluted Earnings per
Average Common Share:

Income before Cumulative Effect of Accounting Change		$0.67		$0.57		$2.60		$2.41
Cumulative Effect of Accounting Change, Net of Tax		$0.00		$0.00		$0.00		$0.51

Net Income		$0.67		$0.57		$2.60		$2.92

	YEAR ENDED DECEMBER 31, 2004
Favorable/(Unfavorable) Items		Pre-tax	After-tax			EPS

Restructuring Reversals	$	799	$	504	$	0.02
Network Costs Settlements	$	1,701	$	1,060	$	0.04
Verizon Trunking Dispute Settlement	$	760	$	473	$	0.02
True-Up of Income Tax Liability	$	(979)	$	(1,228)	$	(0.05)

	YEAR ENDED DECEMBER 31, 2003
Favorable/(Unfavorable) Items		Pre-tax	After-tax			EPS

Asset Retirement Obligation (SFAS 143)	$	21,689	$	13,230	$	0.51
Recapitalization Costs	$	(1,450)	$	(885)	$	(0.03)
Sale of WorldCom Impaired Receivables	$	965	$	605	$	0.02
Restructuring Reversals	$	1,636	$	1,026	$	0.04

% Change Inc./(Dec.)

(1%)

(1%)

7%

(3%)

(32%)

18%

% Change
Inc./(Dec.)