Atlantic Tele-Network Reports Second Quarter 2008 Results

-- Operating income increases 13% to $18.1 million; 21% excluding
one-time 2007 gains

-- Net income increases 13% to $10.2 million; 28% excluding
one-time 2007 gains
SALEM, Mass.--(Business Wire)--
Atlantic Tele-Network, Inc. (NASDAQ: ATNI) today reported results
for the quarter ended June 30, 2008. For the three months ended June
30, 2008, revenue was $50.4 million, an increase of $5.2 million, or
12%, as compared to revenue of $45.2 million for the three months
ended June 30, 2007. Net income was $10.2 million for the quarter, as
compared to $9.0 million for the same period in 2007, an increase of
$1.2 million, or 13%. On a per share basis, net income increased by
14% to $0.67 per diluted share from $0.59 per diluted share for the
three months ended June 30, 2007. Net income for 2007 was positively
impacted by $1.0 million of one-time gains. Excluding those one-time
gains, net income for 2007 would have been $8.0 million and the
comparative increase in net income for 2008 would be 28%.

For the six months ended June 30, 2008, revenue was $96.0 million,
an increase of $6.9 million or 8% as compared to revenue of $89.1
million for the six months ended June 30, 2007. Net income was $18.1
million for the six months ended June 30, 2008, as compared to $15.9
million for the same period in 2007, an increase of $2.2 million or
14%. On a per share basis, net income increased by 13% to $1.18 per
diluted share from $1.04 per diluted share for the six months ended
June 30, 2007.

Revenue and operating income for the second quarter of 2008 was
positively impacted by the previously announced increase in the
Company's ownership in Bermuda Digital Communications (BDC) from
approximately 43% to 58% of BDC's outstanding stock. The Company began
consolidating the operating results of BDC on May 15, 2008, the
effective date of its increase in ownership.

"This was a good quarter, with stronger results than we expected,"
said Michael T. Prior, Chief Executive Officer of Atlantic
Tele-Network, Inc. "Wireless continues to drive our growth. Our rapid
build-out of new markets in the rural United States more than made up
for the two markets sold last year, as we continue to see promising
results from the extensive investment we made in new network coverage
and capacity. Our wireless revenue also benefitted from a partial
quarter of consolidated results from Bermuda. The impact of the
consolidation of BDC will be even more apparent in the third quarter,
and will allow investors a better sense of the health and diversity of
our revenue streams. Bermuda has been a great investment for us in the
past and we believe our increase in ownership and its contribution to
our consolidated wireless revenue will generate additional value for
shareholders. In Guyana, which we expect will generate approximately
15% of our total wireless revenue next quarter, the competitive
environment is still more difficult than we have faced in the past,
leading to a decline in wireless revenue in that market. Another
challenge to this quarter was a marked increase in bypass
traffic--international traffic that bypasses our network in Guyana
costing us revenue and, because of the methods used, presents a very
poor quality experience for callers. We have taken a variety of steps
to counter this development and hope to see improvement in coming
quarters.

"On the fixed line side of our business, we were pleased to see
another quarter of growth. We increased the access lines in service in
Guyana, had strong increases in high-speed data subscribers in the
Virgin Islands and Guyana and continued to add business customers in
Vermont and New Hampshire."

Second Quarter 2008 Operating Highlights

The following operating results for the quarter ended June 30,
2008 are compared against the same period in 2007 unless otherwise
indicated.

Wireless Revenue. Wireless revenue increased by $4.9 million, or
25%, to $24.8 million from $19.9 million. Of this increase, our U.S.
rural wireless, notwithstanding the sale of 59 sites in the fourth
quarter of 2007, saw revenue increase by $4.0 million, or 31%, to
$16.9 million from $12.9 million. An additional $2.9 million was
attributable to the consolidation of BDC, which represents operations
from May 15, 2008 through June 30, 2008, offset by a $2.0 million
decrease in our wireless business in Guyana. Our U.S. rural wireless
growth was a result of the ongoing deployment of new GSM and CDMA base
stations, along with switching fees earned on the 59 sold sites,
although those fees are expected to continue to decrease rapidly in
the third quarter and terminate by the end of the year. We ended the
quarter with a total of 367 GSM and CDMA base stations in our U.S.
network, compared to 263 on June 30, 2007. In Guyana, our wireless
revenue decline reflects the continued impact of competition that
entered the market in late 2006 and a decline in subscribers from
305,000 as of June 2007 to 277,000 as of June 2008.

Local Telephone and Data Revenue. Local telephone and data revenue
grew to $12.3 million compared to $11.4 million in 2007, an increase
of $0.9 million, or 8%. Our Guyana operations increased their local
telephone and data revenue by $0.7 million, or 11%, from $6.6 million
to $7.3 million, as access lines increased from 124,000 lines to
135,000 lines, or 9%, and interconnect fees increased. Sovernet
reported $3.7 million in local telephone and data revenue, consistent
with the prior year. While Sovernet continues to add business
customers for its voice and data services, to date this has been
almost entirely offset by the decline in its residential data
business, particularly its dial-up internet services. Our Virgin
Islands operations saw an increase in revenue attributable to
additional sales of high-capacity data services to businesses and
government offices and a 30% increase in high-speed data subscribers
over the same period in 2007.

International Long Distance Revenue. International long distance
revenue, all of which is generated by our GT&T subsidiary, was $12.4
million in 2008, a decrease of $0.4 million, or 3%, from $12.8 million
in 2007. This decrease was partly a result of certain non-recurring
events during the second quarter of 2007, including Guyana's hosting
of Cricket World Cup matches and the Rio Group Summit, which we
believe caused an increase in international traffic during that
period. We also believe that bypass activities increased considerably
in the quarter, leading to lost revenue opportunities. Inbound minutes
represented 86% of international traffic for the quarter.

Operating Expenses. Operating expenses increased by $3.3 million,
or 11%, from $29.1 million to $32.4 million for the second quarter of
2007 and 2008, respectively. Of this increase, $2.0 million represents
operating expenses of BDC from May 15, 2008 through June 30, 2008. In
addition, the Company recorded increased depreciation and amortization
expense associated with our network expansion in the rural U.S and
Guyana. Such increases, however, were offset by the decrease in
marketing expenses in Guyana, which had increased in 2007 in response
to new increased competition. Operating expenses were reduced in 2007
by a $1.0 million gain on the disposition of certain long lived
assets. Operating expenses for the second quarter 2007 and 2008 also
included non-cash stock based compensation expense of $0.2 million and
$0.3 million, respectively.

Operating Income. Operating income increased by $2.1 million, or
13%, from $16.0 million to $18.1 million for the quarter. This
increase came predominately from U.S. rural wireless revenue growth
and the consolidation of the results of the operations of BDC,
effective May 15, 2008. Operating income for 2007 was positively
impacted by $1.0 million of one-time gains. Excluding those one-time
gains, operating income for 2007 would have been $15.0 million and the
comparative increase in operating income for 2008 would be 21%.

Conference Call Information

Atlantic Tele-Network will host a conference call tomorrow, Friday
August 1, 2008 at 10:00 a.m. Eastern Time (ET) to discuss its second
quarter results for 2008. The call will be hosted by Michael Prior,
President and Chief Executive Officer, and Justin Benincasa, Chief
Financial Officer. The dial-in numbers are US/Canada: (800) 734-4208
and International: (212) 231-2900. A replay of the call will be
available from 12:00 p.m. (ET) August 1, 2008 until 12:00 p.m. (ET) on
August 8, 2008. The replay dial-in numbers are US/Canada: (800)
633-8284 and International: (402) 977-9140, access code 21389480.

About Atlantic Tele-Network

Atlantic Tele-Network, Inc. (NASDAQ:ATNI) is a telecommunications
company headquartered in Salem, Massachusetts. Its principal
subsidiaries include: Guyana Telephone and Telegraph Company, Limited,
which is the national telephone service provider for all local,
long-distance and international service, as well as a wireless service
provider, in Guyana; Commnet Wireless, LLC, which provides voice and
data wireless roaming services for U.S. and international carriers in
rural areas throughout the United States; Bermuda Digital
Communications Ltd., which, under the Cellular One name, is the
leading provider of wireless voice and data services in Bermuda;
Sovernet, Inc., which provides wireline voice and data services to
businesses and homes in New England; and Choice Communications, LLC,
which provides wireless television and wireless broadband services in
the U.S. Virgin Islands.

Non-GAAP Financial Information and Cautionary Language Concerning
Forward-Looking Statements

This news release contains references to net income and operating
income for 2007 that exclude certain one-time gains and, accordingly
are financial measures not prepared in accordance with generally
accepted accounting principles (GAAP). These measures are presented as
additional performance metrics to enhance the comparability of our
current results to prior periods and should not be considered
alternatives to net income or operating income determined in
accordance with GAAP.

This news release contains forward-looking statements relating to,
among other matters, the future financial performance and results of
operations of the Company; demand for our services and industry
trends; the pace of our network expansion and improvement, including
our realization of the benefits of these investments; and management's
plans and strategy for the future. These forward-looking statements
are based on estimates, projections, beliefs, and assumptions and are
not guarantees of future events or results. Actual future events and
results could differ materially from the events and results indicated
in these statements as a result of many factors, including, among
others, (1) significant political and regulatory risk facing our
exclusive license to provide local exchange and international voice
and data services in Guyana; (2) any significant decline in the price
or volume of international long distance calls to Guyana;
(3) increased competition affecting our businesses; (4) the regulation
of rates that GT&T may charge for local wireline telephone service;
(5) significant tax disputes between GT&T and the Guyanese tax
authorities; (6) the derivation of a significant portion of our U.S.
wireless revenue from a small number of customers; (7) our ability to
maintain favorable roaming arrangements, including the rates Commnet
charges its wholesale customers; (8) economic, political and other
risks facing our foreign operations; (9) regulatory changes affecting
our businesses; (10) rapid and significant technological changes in
the telecommunications industry; (11) our reliance on a limited number
of key suppliers and vendors for timely supply of equipment and
services relating to our network infrastructure; (12) any loss of any
key members of management; (13) the adequacy and expansion
capabilities of our network capacity and customer service system to
support our customer growth; (14) dependence of our wireless and
wireline revenues on the reliability and performance of our network
infrastructure; (15) the occurrence of severe weather and natural
catastrophes; and (16) our ability to realize the value that we
believe exists in businesses that we acquire. These and other
additional factors that may cause actual future events and results to
differ materially from the events and results indicated in the
forward-looking statements above are set forth more fully under Item
1A "Risk Factors" of the Company's Annual Report on Form 10-K for the
year ended December 31, 2007, which is on file with the SEC. The
Company undertakes no obligation to update these forward-looking
statements to reflect actual results, changes in assumptions or
changes in other factors that may affect such forward-looking
statements.

-0-
*T
ATLANTIC TELE-NETWORK, INC.
Unaudited Condensed Consolidated Balance Sheets
(in Thousands)

December 31, June 30,
2007 2008
------------ --------
Assets:
Cash and Cash Equivalents $ 71,173 $ 55,053
Other Current Assets 47,202 48,285
------------ --------

Total Current Assets 118,375 103,338

Fixed Assets, net 155,753 173,752
Goodwill and Other Intangible Assets, net 56,431 67,707
Other Assets 14,067 5,876
------------ --------

Total Assets $344,626 $350,673
============ ========

Liabilities and Stockholders' Equity:
Current Liabilities $ 44,879 $ 34,217

Long Term Debt 50,000 50,000
Other Liabilities 13,540 14,535
------------ --------

Total Liabilities 108,419 98,752

Minority Interests 27,236 29,955

Stockholders' Equity 208,971 221,966
------------ --------

Total Liabilities and Stockholders' Equity $344,626 $350,673
============ ========
*T

-0-
*T
ATLANTIC TELE-NETWORK, INC.
Unaudited Condensed Consolidated Statements of Operations
(in Thousands, Except per Share Data)

Three Months Ended Six Months Ended
June 30, June 30,
------------------ -----------------
2007 2008 2007 2008
--------- -------- -------- --------
Revenue:
Wireless $19,884 $24,786 $38,587 $44,539
Local Telephone and Data 11,439 12,267 22,506 24,514
International Long Distance 12,802 12,387 25,974 24,942
Other Revenues 1,032 974 2,010 2,049
--------- -------- -------- --------

Total Revenue 45,157 50,414 89,077 96,044
Operating Expenses:
Termination and Access Fees 7,696 8,376 14,255 15,964
Internet and Programming 817 863 1,666 1,762
Engineering and Operations 5,709 5,930 11,473 11,785
Sales, Marketing and Customer
Services 3,641 2,944 8,738 5,618
General and Administrative 5,639 6,819 11,489 12,702
Depreciation and Amortization 6,658 7,424 13,159 14,501
Gain on Disposition of Long-
Lived Assets (1,043) - (1,176) -
--------- -------- -------- --------

Total Operating Expenses 29,117 32,356 59,604 62,332
--------- -------- -------- --------

Operating Income 16,040 18,058 29,473 33,712
Other Income (Expense):
Interest Income (Expense), net (144) (254) 225 (338)
Other Income 1,514 143 1,768 368
--------- -------- -------- --------

Other Income (Expense), net 1,370 (111) 1,993 30

Income Before Income Taxes,
Equity in Earnings of
Unconsolidated Affiliates and
Minority Interests 17,410 17,947 31,466 33,742
Income Taxes 7,250 6,642 13,914 14,032
--------- -------- -------- --------

Income Before Equity in Earnings
of Unconsolidated Affiliates and
Minority Interests 10,160 11,305 17,552 19,710
Equity in Earnings of
Unconsolidated Affiliates 642 272 1,098 735
Minority Interests (1,753) (1,373) (2,703) (2,374)
--------- -------- -------- --------

Net Income $ 9,049 $10,204 $15,947 $18,071
========= ======== ======== ========

Net Income Per Share
Basic $ 0.60 $ 0.67 $ 1.05 $ 1.19
========= ======== ======== ========
Diluted $ 0.59 $ 0.67 $ 1.04 $ 1.18
========= ======== ======== ========
Weighted Average Common Shares
Outstanding
Basic 15,161 15,187 15,156 15,192
========= ======== ======== ========
Diluted 15,286 15,253 15,288 15,267
========= ================= ========
*T

Atlantic Tele-Network, Inc.
Michael T. Prior, 978-619-1300
Chief Executive Officer
or
Justin D. Benincasa, 978-619-1300
Chief Financial Officer

Copyright Business Wire 2008