LICT Corporation Announces First Quarter Earnings

RYE, N.Y.--(Business Wire)--
LICT Corporation (Pink Sheets(R): LICT) announced today its first
quarter 2008 earnings results (see attachment A).

FIRST QUARTER RESULTS

During the first quarter of 2008, our revenues were $25.4 million,
as compared to $25.0 million in the first quarter of 2007, an increase
of $0.4 million, or 1.7%. EBITDA (earnings before interest, taxes,
depreciation and amortization) generated during the first quarter of
2008 by our operating subsidiaries was $12.6 million, a $0.3 million
increase, or 2.8%, from the $12.3 million recorded in 2007. Interstate
revenue, which relates to out-of-state calling in our telephone
operations, increased $0.1 million primarily due to increased
estimates of full year NECA pool earnings in 2008 compared to 2007.
Intrastate revenue, which relates to in-state calling, declined $0.1
million primarily due to a decline in minutes of use at several of our
operations. On the non-regulated front, revenues grew by $0.3 million,
or 5.1% during the first quarter primarily due to increased broadband
penetration, both DSL and cable. Such increases were partially offset
by the $0.2 million reduction of cable revenue due to the absence in
2008 of a Kansas cable provider, which was distributed to shareholders
as part of the November 2007 spin-off of CIBL, Inc. Operating costs
were higher in 2008 due to startup costs of certain deregulated
operations, somewhat offset by the reduction of cable costs due to the
spin-off of the Kansas cable provider. Corporate office expenses were
$1.2 million as compared to $1.0 million last year.

In December 2007, we agreed to sell four of the Company's Lower
700 MHz wireless licenses to AT&T Mobility II, LLC for a total of $6.6
million. We acquired these licenses in the Federal Communications
Commission Auction 44 during 2002 for $1.0 million to help grow our
business. However, the sudden liquidity crisis in the financial system
necessitated that we re-focus our priorities toward our liquidity
versus our growth opportunities. The licenses cover Davenport, IA/Rock
Island-Moline, IL; Des Moines, IA; Santa Barbara-Santa Maria-Lompoc,
CA; and Reno, NV. The sale closed in March 2008 and we realized a $5.6
million pretax gain or $148 per share after tax.

We continue to hold the following Lower 700 MHz licenses: Elmira,
NY; Las Cruces, NM; Dubuque, IA; Michigan 1 - Gogebic; New Mexico 1 -
San Juan; New Mexico 3 - Catron; New Mexico 5 - Grant; and New York 3
- Chautauqua.

Earnings per share for the first quarter of 2008 were $251, which
included $148 from the sale of the licenses, or $103 excluding the
sale of the licenses compared to $90 reported in the first quarter of
2007.

SPIN-OFF OF CIBL, INC.

On November 19, 2007, the company completed the spin-off of CIBL
Inc., which consists primarily of LICT's previously owned investments
in broadcasting, cellular telephone operations in New Mexico, and our
CATV provider in northeast Kansas. The operating results of these
investments were included in LICT reported financial results until the
date on the spin-off. Attachment B shows the LICT results as if the
investments in CIBL had been treated as discontinued operations. In
that presentation, the operations of LICT's on-going businesses
generated earnings per share of $76 in the first quarter of 2007.

FULL YEAR RESULTS

The company is currently projecting $102 million in revenues and
$50 million in EBITDA from operations for the year ended December 31,
2008, comparable to 2007 results. Earnings per share, excluding the
gain from the sale of spectrum is projected to be $400. Certain
non-regulated start-up operations will hamper 2008 results on a
short-term basis.

LICT's Annual Report for 2007, including its audited financial
statements has been posted to the Company's web site:
http://www.lictcorp.com. The 2008 first quarter report will be posted
shortly.

OPERATING STATISTICS

At March 31, 2008, the Company's in-territory DSL penetration
based on ILEC Voice lines was 25.5%, up from 23.3% at December 31,
2007. Our summary operating statistics are as follows:

-0-
*T
Percent
March 31 Dec. 31 Increase Increase
2008 2007 (Decrease) (Decrease)
--------------------------------------
ILEC voice lines 50,333 50,716 (383) -0.8%
CLEC voice lines 7,073 6,861 212 3.1%
--------------------------------------
Total voice lines 57,406 57,577 (171) -0.3%
======================================
DSL lines 12,699 11,599 1,100 9.5%
ISP Subscribers 21,251 20,908 343 1.6%
LD Resale lines 20,757 20,274 483 2.4%
Cable TV Subs. 4,392 4,337 55 1.3%
Cable Modem 1,378 1,156 222 19.2%
*T

BALANCE SHEET

At March 31, 2008, the Company had approximately $41 million in
cash and $169 million in total debt. Due to numerous debt covenants
and other restrictions, our parent company does not have direct access
to the majority of this cash which is held in various subsidiary
companies.

LICT STOCK REPURCHASES

For the first quarter ended March 31, 2008, LICT repurchased 4
shares of it common stock for $17,000. Since March 31, 2008, the
Company purchased an additional 92 shares for $383,000.

STRATEGIC INITIATIVES

Our operating subsidiaries are in the process of developing and
launching several wireless and wireline broadband initiatives. These
initiatives will provide an excellent complement to our strong RLEC
base, and provide the communities that we serve with the
telecommunication and data transport tools necessary to compete in
today's economy. In addition, the Company will continue to look at its
portfolio, adding acquisitions that will strategically fit its
long-term objectives and selling assets that benefit others.

MONETIZATION OF ASSETS

The Company is also in the process of evaluating a refinancing
plan to maximize shareholder value and provide a strong financial
platform to fund growth objectives. The Company anticipates that as
part of this plan, it will continue to repurchase shares of our common
stock in the open market, subject to regulatory and financial
constraints, and continue developing plans to harvest some assets and
compensate our shareholders in the form of distributions or share
repurchases. As of March 31, 2008 the Company had 25,111 shares
outstanding as compared to 25,115 at December 31, 2007.

This release contains certain forward-looking information within
the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
including without limitation, full year revenue, EBITDA and capital
expenditure expectations, and anticipated financing and corporate
transactions. It should be recognized that such information is based
upon certain assumptions, projections and forecasts, including without
limitation business conditions and financial markets, regulatory and
other approvals, and the cautionary statements set forth in documents
filed by LICT on its website, www.lictcorp.com. As a result, there can
be no assurance that any possible transactions will be accomplished or
be successful or that financial targets will be met, and such
information is subject to uncertainties, risks and inaccuracies, which
could be material.

LICT Corporation is a holding company with subsidiaries in
telecommunications that actively seeks acquisitions, principally in
its existing business areas.

LICT Corporation is listed on the Pink Sheets(R) under the symbol
LICT. Its World Wide Web address is: http://www.lictcorp.com.

Release: 08-04

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*T
LICT Corporation Attachment A
Statements of Operations and Selected Balance Sheet Data
Unaudited
(In Thousands, Except Per Share Data)

STATEMENTS OF OPERATIONS
Three Months Ended Percent
March 31, Increase
-------------------
2008 2007 (Decrease)
--------------------------------

Revenues $ 25,374 $ 24,954 1.7%

Cost and Expenses:
Cost of service and sales 8,984 9,024
Selling, general and administration 3,785 3,670
Corporate office expense 868 979
Depreciation and amortization 5,247 5,573
-------------------
Operating profit, in accordance
with generally accepted
accounting principles 6,490 5,708 13.7%

Other Income(Expense)
Investment income 1,130 1,181
Interest expense (3,347) (3,831)
Equity in earnings of affiliated
companies 143 1,101
Gains on sale of investments 5,615 7
-------------------
3,541 (1,542)
-------------------

Income (Loss) Before Income Taxes
Minority Interests 10,031 4,166
Minority Interests (15) (448)
(Provision) Benefit For Income Taxes (3,722) (1,459)
-------------------
Net Income (Loss) $ 6,294 $ 2,259
===================

Weighted Average Shares Used In
Earnings Per Share Computations 25,112 25,210

Basic and Diluted Earnings Per Share $ 250.64 $ 89.61

----------------------------------------------------------------------

Adjusted Operating Profit
Operating Subsidiaries $ 12,605 $ 12,260 2.8%
Corporate Office Expense (868) (979)
-------------------
Total Adjusted Operating Profit 11,737 11,281 4.0%
Depreciation and amortization (5,247) (5,573)
-------------------
Operating profit, in accordance
with generally accepted
accounting principles $ 6,490 $ 5,708
===================

Capital Expenditures $ 4,211 $ 2,599

----------------------------------------------------------------------

SELECTED BALANCE SHEET DATA
Mar. 31, Dec. 31,
2008 2007
-------------------
Cash and Cash Equivalents $ 41,088 $ 41,318

Notes Payable 10,058 16,429
Long-Term Debt (including current
portion) 158,791 162,512
-------------------
Total Debt 168,849 178,941

Minority Interests 146 131
Shareholders' Equity 43,274 36,997

Shares Outstanding at Date 25,111 25,115
*T

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*T
LICT Corporation Attachment B
Statements of Operations - excluding CIBL
Unaudited
(In Thousands, Except Per Share Data)

STATEMENTS OF OPERATIONS
Excluding operations distributed to Three Months Ended Percent
CIBL
March 31, Increase
------------------
2008 2007 (Decrease)
-------------------------------

Revenues $25,374 $24,649 2.9%

Cost and Expenses:
Cost of service and sales 8,984 8,811
Selling, general and administration 3,785 3,660
Corporate office expense 868 979
Depreciation and amortization 5,247 5,484
------------------
Operating profit, in accordance
with generally accepted accounting
principles 6,490 5,715 13.6%

Other Income(Expense)
Investment income 1,130 1,181
Interest expense (3,347) (3,831)
Equity in earnings of affiliated
companies 143 91
Gains on sale of investments 5,615 7
------------------
3,541 (2,552)
------------------

Income (Loss) Before Income Taxes
Minority Interests 10,031 3,163
Minority Interests (15) (2)
(Provision) Benefit For Income Taxes (3,722) (1,250)
------------------
Net Income (Loss) $ 6,294 $ 1,911
==================

Weighted Average Shares Used In
Earnings Per Share Computations 25,112 25,210

Basic and Diluted Earnings Per Share $250.64 $ 75.80
*T

LICT Corporation
Robert E. Dolan, 914-921-8821
Interim Chief Executive Officer

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