Exhibit 99.1

FOR IMMEDIATE RELEASE	Contacts:	David Christensen, CFO
		507-387-3355
		Jennifer Spaude, Investor Relations
		507-386-3765

HickoryTech Reports Second Quarter 2010 Earnings Results

·   Revenue growth of 18 percent year-over-year

·   Net income up 66 percent over Q2 2009

·   Enventis fiber and data revenue grew 63 percent and Telecom Broadband revenue increased 10 percent year-over-year

·   Company’s Fiscal 2010 outlook increased for net income and EBITDA

MANKATO, Minn., July 28, 2010—HickoryTech Corporation (Nasdaq: HTCO) today reported second quarter 2010 operating results including revenue of $38.3 million, up 18 percent over the comparable period in 2009.  Net income totaled $3.5 million, or 27 cents per diluted share, a 66 percent increase over the $2.1 million, reported a year ago.  A release of income tax reserves added $800,000 to the second quarter net income in 2010.  Excluding the income tax release, net income totaled $2.7 million, an increase of 28 percent year-over-year.

“We are making good progress on our strategic initiatives to grow our company,” said John Finke, HickoryTech’s president and chief executive officer.  “We initiated a joint fiber construction project in the second quarter to expand our fiber network to new markets. This project, which is increasing our earnings, is an example of our commitment to take calculated risks to grow our company, while leveraging our current assets, existing cost structure and core competencies.”

As part of HickoryTech’s growth plan, it is upgrading its fiber network in Des Moines, Iowa, and extending its fiber network to Sioux Falls, South Dakota and Fargo, North Dakota.  Capital expenditures in the second quarter totaled $7.1 million, up from the $4.7 million a year ago.  A portion of those fiber expansion plans include a joint construction project with another carrier, contributing $1.1 million of revenue and $200,000 of net income to second quarter operating results for the Enventis fiber and data product line.

“We had another strong quarter within our Enventis Sector with 63 percent fiber and data revenue growth and a consecutive quarter of solid equipment and services sales,” said Finke.  We are pleased with this business’ performance in the first half of the year and the current backlog of equipment and service sales scheduled for the second half of the year is encouraging.”

Enventis Sector Enventis Sector (before intersegment eliminations)

Enventis Sector revenue before eliminations totaled $21.2 million, up 44 percent compared to one year ago.  Costs and expenses in the Enventis Sector, including depreciation, totaled $19 million, an increase of 45 percent year-over-year, the result of adding CP Telecom operations and higher equipment sales.  Enventis Sector net income totaled $1.4 million, up 33 percent from the $1.0 million reported one year ago.  The Enventis net income increase was mainly driven by ongoing growth of fiber and data services and recovery in the equipment and services business.

·   Fiber and data revenue totaled $10.8 million, up 63 percent year-over-year, the result of strong sales of fiber services, the addition of CP Telecom, and the impact of a joint construction project with another carrier.

·   Equipment and service revenue totaled $10.4 million, up 28 percent year-over-year.  Second quarter equipment and services revenue included a higher level of maintenance contracts, which have higher margins.  Net income for the equipment and services product line has increased 227 percent in 2010 due to sales increases and operating cost reductions.

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Telecom Sector (before intersegment eliminations)

Telecom Sector revenue totaled $17.6 million, down 2 percent year-over-year.  Telecom Sector results were stable and continue to be affected by a decline in network access and local service revenue, offset in part by broadband growth.  Costs and expenses including depreciation totaled $14.6 million for the second quarter, an increase of 2 percent year-over-year.  Telecom Sector net income for the second quarter totaled $1.8 million, a 20 percent decrease from one year ago driven by the anticipated decline of traditional telecom recurring revenue.

·   Broadband revenue totaled $3.3 million, up 10 percent from the comparable period in fiscal 2009.  Broadband revenue includes DSL, Data and Digital TV services.  Digital TV subscribers increased 11 percent, to 9,841, and DSL subscribers increased 2 percent, to 19,359.

·   Network access revenue was $5.9 million, down 2 percent year-over-year.

·   Local service revenue totaled $3.6 million, down 6 percent from fiscal 2009. Local access lines declined 7 percent year-over-year.  Local service declines are a result of competition and wireless substitution.

Capital Expenditures and Debt Position

Capital expenditures totaled $7.1 million for the second quarter of 2010, and were $2.4 million higher than the comparable period in 2009.  Enventis Sector capital expenditures totaled $3.9 million.  Telecom Sector capital expenditures were $3.2 million.  HickoryTech’s long-term and current debt position as of June 30, 2010 was $121.3 million, an increase of $5.1 million from the previous quarter ended March 31, 2010. The company’s construction season along with increased equipment sales caused a temporary increase in debt at the end of second quarter 2010.

“We’re especially pleased with our performance in the first half of this year,” Finke said.  “We are investing in long-term growth initiatives, expanding our network and looking for opportunities to grow recurring revenues.”

2010 Annual Company Expectations Increased

HickoryTech increased its fiscal 2010 outlook in several areas as follows:

·   Revenue is targeted in the range of $150 million to $158 million (no change)

·   Net Income is targeted in the range of $9.7 million to $10.6 million (previously $8.7 to $9.6 million)

·   Capital spending is targeted in the range of $22 million to $26 million (no change)

·   EBITDA is targeted in the range of $41.5 million to $44 million (previously $40.5 to $43 million)

·   A year-end debt balance is targeted in the range of $117 million to $120 million (previously $117 to $119 million)

Conference Call and Webcast

HickoryTech will host a conference call and webcast on Thursday, July 29 at 9 a.m. CT. The dial-in number for the call is 877-774-2369 (U.S. and Canada) and the participant pass code is 85702241.  A simultaneous webcast of the call and presentation will be available through a link on HickoryTech’s Investor Relations webpage at http://investor.hickorytech.com.

About HickoryTech

HickoryTech Corporation (dba HickoryTech and Enventis) is a leading integrated communications provider in the markets it serves.  With headquarters in Mankato, Minn., the corporation has approximately 450 employees and a regional fiber network with facilities-based operations in Minnesota and Iowa.  Enventis serves businesses of all sizes across a five-state region with IP-based voice, data and network solutions.  HickoryTech provides bundled residential and business services including high-speed Internet, Digital TV and voice services in its legacy telecom markets.  The Company trades on the Nasdaq Stock Exchange (symbol: HTCO). For more information, visit www.hickorytech.com.

Non-GAAP Measures

To supplement the Company’s financial statements presented in accordance with GAAP, the Company provides certain non-GAAP financial measures of financial performance. These non-GAAP measures include earnings before interest, income taxes, depreciation and amortization. The Company’s reference to these non-GAAP measures should be considered in addition to results prepared under current accounting standards, but are not a substitute for, or superior to, GAAP results.  These non-GAAP measures are provided to enhance investors’ overall understanding of the Company’s current financial performance and ability to generate cash flows. In many cases non-GAAP financial measures are used by analysts and investors to evaluate the Company’s performance. Reconciliation to the nearest GAAP measure included in this press release can be found in the financial table included below. 

Forward-looking statement

Certain statements included in this press release that are not historical facts are "forward-looking statements." Such forward-looking statements are based on current expectations, estimates and projections about the industry in which HickoryTech operates and management's beliefs and assumptions. The forward-looking statements are subject to uncertainties. These statements are not guarantees of future performance and involve certain risks, uncertainties and probabilities. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they were made. HickoryTech undertakes no obligation to update any of its forward-looking statements, except as required by law.

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Consolidated Statement of Operations

(unaudited)

	Three Months Ended June 30						%			Six Months Ended June 30						%
(Dollars in thousands, except share data)	2010			2009			Change			2010			2009			Change
Revenue:
Enventis Sector
Equipment	$	8,068		$	5,393			50	%	$	17,952		$	12,184			47	%
Services		13,060			9,229			42	%		24,530			18,227			35	%
Total Enventis Sector		21,128			14,622			44	%		42,482			30,411			40	%
Telecom Sector		17,140			17,781			-4	%		34,506			35,453			-3	%
Total revenue		38,268			32,403			18	%		76,988			65,864			17	%
Costs and Expenses:
Cost of sales, excluding depreciation and amortization		6,974			4,717			48	%		15,449			10,716			44	%
Cost of services, excluding depreciation and amortization		14,766			11,948			24	%		28,944			24,413			19	%
Selling, general and administrative expenses		5,560			5,406			3	%		11,756			10,562			11	%
Depreciation		5,222			4,830			8	%		10,544			9,899			7	%
Amortization of intangibles		89			213			-58	%		178			427			-58	%
Total costs and expenses		32,611			27,114			20	%		66,871			56,017			19	%
Operating income		5,657			5,289			7	%		10,117			9,847			3	%
Interest and other income		14			32			-56	%		51			41			24	%
Interest expense		(1,101	)		(1,719	)		-36	%		(2,692	)		(3,427	)		-21	%
Income before income taxes		4,570			3,602			27	%		7,476			6,461			16	%
Income taxes		1,060			1,485			-29	%		2,539			2,718			-7	%
Net income	$	3,510		$	2,117			66	%	$	4,937		$	3,743			32	%
Basic earnings per share	$	0.27		$	0.16			69	%	$	0.37		$	0.29			28	%
Basic weighted average common shares outstanding		13,225,561			13,049,238						13,190,366			13,034,005
Diluted earnings per share	$	0.27		$	0.16			69	%	$	0.37		$	0.29			28	%
Diluted weighted average common and equivalent shares outstanding		13,230,861			13,049,677						13,197,666			13,034,005
Dividends per share	$	0.13		$	0.13			0	%	$	0.26		$	0.26			0	%

Consolidated Balance Sheets

(unaudited)

(Dollars and Share Data in Thousands)	June 30, 2010				December 31, 2009
ASSETS
Current assets:
Cash and cash equivalents	$	135		$	2,420
Receivables, net of allowance for doubtful accounts of $723and $643		25,143			19,729
Inventories		5,826			5,069
Deferred income taxes		2,423			2,423
Prepaid expenses		2,215			1,751
Other		1,619			1,039
Total current assets		37,361			32,431
Investments		4,492			4,306
Property, plant and equipment		367,118			357,607
Accumulated depreciation		(213,670	)		(204,129	)
Property, plant and equipment, net		153,448			153,478
Other assets:
Goodwill		27,303			27,423
Intangible assets, net		2,847			3,025
Deferred costs and other		1,606			1,820
Total other assets		31,756			32,268
Total assets	$	227,057		$	222,483
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Extended term payable	$	6,166		$	6,788
Accounts payable		7,542			2,883
Accrued expenses and other		6,595			7,792
Accrued income taxes		424			642
Deferred revenue		5,936			6,016
Current maturities of long-term obligations		912			620
Total current liabilities		27,575			24,741
Long-term liabilities:
Debt obligations, net of current maturities		120,343			119,871
Financial derivative instruments		1,410			1,908
Accrued income taxes		2,449			3,218
Deferred income taxes		22,452			21,895
Deferred revenue		1,462			2,095
Accrued employee benefits and deferred compensation		14,623			14,209
Total long-term liabilities		162,739			163,196
Total liabilities		190,314			187,937
Commitments and contingencies
Shareholders' equity:
Common stock, no par value, $.10 stated value
Shares authorized: 100,000
Shares issued and outstanding: 13,239 in 2010 and 13,101 in 2009		1,324			1,310
Additional paid-in capital		13,228			12,975
Retained earnings		26,198			24,687
Accumulated other comprehensive (loss)		(4,007	)		(4,426	)
Total shareholders' equity		36,743			34,546
Total liabilities and shareholders' equity	$	227,057		$	222,483

Enventis Sector Recap

(unaudited)

	Three Months Ended June 30				%			Six Months Ended June 30				%
(Dollars In thousands)	2010		2009		Change			2010		2009		Change
Revenue before intersegment eliminations
Equipment	$	8,068	$	5,393		50	%	$	17,952	$	12,184		47	%
Services		2,352		2,749		-14	%		4,209		5,090		-17	%
Equipment and Services		10,420		8,142					22,161		17,274
Fiber and Data		10,708		6,480		65	%		20,321		13,137		55	%
Intersegment		97		142		-32	%		230		283		-19	%
	$	21,225	$	14,764		44	%	$	42,712	$	30,694		39	%
Total Enventis revenue before intersegment eliminations
Unaffiliated customers	$	21,128	$	14,622				$	42,482	$	30,411
Intersegment		97		142					230		283
		21,225		14,764					42,712		30,694
Cost of sales (excluding depreciation and amortization)		6,974		4,717		48	%		15,449		10,716		44	%
Cost of services (excluding depreciation and amortization)		7,582		4,849		56	%		14,281		10,087		42	%
Selling, general and administrative expenses		2,992		2,294		30	%		6,034		4,683		29	%
Depreciation and amortization		1,406		1,201		17	%		2,770		2,350		18	%
Total costs and expenses		18,954		13,061		45	%		38,534		27,836		38	%
Operating income	$	2,271	$	1,703		33	%	$	4,178	$	2,858		46	%
Net income	$	1,353	$	1,018		33	%	$	2,475	$	1,699		46	%
Capital expenditures	$	3,907	$	2,262		73	%	$	5,971	$	3,453		73	%

Enventis Equipment and Services Product Line

(unaudited)

	Three Months Ended June 30				%			Six Months Ended June 30				%
(Dollars in thousands)	2010		2009		Change			2010		2009		Change
Revenue before intersegment eliminations
Equipment	$	8,068	$	5,393		50	%	$	17,952	$	12,184		47	%
Services		2,352		2,749		-14	%		4,209		5,090		-17	%
	$	10,420	$	8,142		28	%	$	22,161	$	17,274		28	%
Cost of sales (excluding depreciation and amortization)		6,974		4,701		48	%		15,449		10,699		44	%
Cost of services (excluding depreciation and amortization)		1,693		1,649		3	%		3,412		3,601		-5	%
Selling, general and administrative expenses		1,105		1,211		-9	%		2,228		2,499		-11	%
Depreciation and amortization		77		104		-26	%		150		186		-19	%
Total costs and expenses		9,849		7,665		28	%		21,239		16,985		25	%
Operating income	$	571	$	477		20	%	$	922	$	289		219	%
Net income	$	341	$	284		20	%	$	565	$	173		227	%
Capital expenditures	$	49	$	119		-59	%	$	134	$	262		-49	%

Enventis Fiber and Data Product Line

(unaudited)

	Three Months Ended June 30				%			Six Months Ended June 30				%
(Dollars in thousands)	2010		2009		Change			2010		2009		Change
Revenue before intersegment eliminations:
Services	$	10,708	$	6,480		65	%	$	20,321	$	13,137		55	%
Intersegment		97		142		-32	%		230		283		-19	%
	$	10,805	$	6,622		63	%	$	20,551	$	13,420		53	%
Cost of sales (excluding depreciation and amortization)		-		16		-100	%		-		17		-100	%
Cost of services (excluding depreciation and amortization)		5,889		3,200		84	%		10,869		6,486		68	%
Selling, general and administrative expenses		1,887		1,083		74	%		3,806		2,184		74	%
Depreciation and amortization		1,329		1,097		21	%		2,620		2,164		21	%
Total costs and expenses		9,105		5,396		69	%		17,295		10,851		59	%
Operating income	$	1,700	$	1,226		39	%	$	3,256	$	2,569		27	%
Net income	$	1,012	$	734		38	%	$	1,910	$	1,526		25	%
Capital expenditures	$	3,858	$	2,143		80	%	$	5,837	$	3,191		83	%

Telecom Sector Recap

(unaudited)

	Three Months Ended June 30				%			Six Months Ended June 30				%
(Dollars in thousands)	2010		2009		Change			2010		2009		Change
Revenue
Local Service	$	3,638	$	3,880		-6	%	$	7,303	$	7,757		-6	%
Network Access		5,851		5,955		-2	%		11,979		12,165		-2	%
Long Distance		800		1,027		-22	%		1,620		2,058		-21	%
Broadband		3,287		2,979		10	%		6,503		5,863		11	%
Internet		1,262		1,252		1	%		2,494		2,506		0	%
Directory		888		1,023		-13	%		1,805		2,100		-14	%
Bill Processing		802		961		-17	%		1,577		1,630		-3	%
Intersegment		468		234		100	%		897		477		88	%
Other		612		704		-13	%		1,225		1,374		-11	%
Total Telecom Revenue	$	17,608	$	18,015		-2	%	$	35,403	$	35,930		-1	%
Total Telecom revenue before intersegment eliminations
Unaffiliated Customers	$	17,140	$	17,781				$	34,506	$	35,453
Intersegment		468		234					897		477
		17,608		18,015					35,403		35,930
Costs and expenses
Cost of services, excluding depreciation and amortization		7,709		7,440		4	%		15,713		15,016		5	%
Selling, general and administrative expenses		3,033		3,040		0	%		5,983		5,874		2	%
Depreciation and amortization		3,875		3,827		1	%		7,891		7,947		-1	%
Total costs and expenses		14,617		14,307		2	%		29,587		28,837		3	%
Operating income	$	2,991	$	3,708		-19	%	$	5,816	$	7,093		-18	%
Net income	$	1,774	$	2,205		-20	%	$	3,180	$	4,183		-24	%
Capital expenditures	$	3,156	$	2,351		34	%	$	4,521	$	3,786		19	%
Key Metrics
Business access lines		24,479		25,034		-2	%
Residential access lines		28,839		32,334		-11	%
Total access lines		53,318		57,368		-7	%
Long distance customers		35,131		37,557		-6	%
DSL customers		19,359		19,065		2	%
Digital TV customers		9,841		8,895		11	%

Reconciliation of Non-GAAP Measures

	Three Months Ended June 30				Six Months Ended June 30
	2010		2009		2010		2009
(Dollars in thousands)
Reconciliation of net income to EBITDA:
Net income	$	3,510	$	2,117	$	4,937	$	3,743
Add:
Depreciation		5,222		4,830		10,544		9,899
Amortization of intangibles		89		213		178		427
Interest expense		1,101		1,719		2,692		3,427
Taxes		1,060		1,485		2,539		2,718
EBITDA	$	10,982	$	10,364	$	20,890	$	20,214
Reconciliation of net income to net income without
release of income tax reserve:
Net income	$	3,510	$	2,117	$	4,937	$	3,743
Deduct: Income tax reserve release		807		-		807		-
Net income excluding income tax reserve release	$	2,703	$	2,117	$	4,130	$	3,743
	Year Ending
	December 31, 2010
(Dollars in thousands)	Guidance Range
Reconciliation of net income to 2010 EBITDA guidance:	Low		High
Projected net income	$	9,700	$	10,600
Add back:
Depreciation and amortization		21,300		21,900
Interest expense		5,100		5,400
Income tax expense		5,400		6,100
Projected EBITDA1	$	41,500	$	44,000
1EBITDA, a non-GAAP financial measure, is as defined in our debt agreement

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