New Ulm Telecom, Inc. Announces the Acquisition of a One-Third Ownership in Hector Communications Corporation

  
    
  
  
    
      New Ulm Telecom, Inc. (OTCBB:NULM) announced today that it has completed 
      its acquisition of a one-third ownership in Hector Communications 
      Corporation (AMEX:HCT) through a recently formed corporation, Hector 
      Acquisition Corporation, that is owned equally by New Ulm Telecom, Inc., 
      Blue Earth Valley Communications, Inc. and Arvig Enterprises, Inc., all 
      of which are independent local exchange carriers. Each of the owners 
      will provide management and other operational services to Hector 
      Communications Corporation and its subsidiaries.
    
    
      New Ulm Telecom, Inc.’s President and CEO, Mr. 
      Bill Otis, has been named Chairman of the Board and President of Hector 
      Communications Corporation.
    
    
      Hector Acquisition Corporation entered into a merger agreement to 
      acquire all of the outstanding shares of Hector Communications 
      Corporation for $36.40 per share on June 27, 2006. New Ulm Telecom, 
      Inc., as a one-third owner of Hector Acquisition Corporation, previously 
      announced the entry into a merger agreement with Hector Communications 
      Corporation in its 8-K filed on June 27, 2006.
    
    
      Hector Communications Corporation is a telecommunications holding 
      company which through its subsidiaries provides telecommunications 
      services in rural communities in Minnesota, Wisconsin and North Dakota. 
      At June 30, 2006 Hector Communications Corporation served approximately 
      29,300 telephone access lines, 8,000 cable television subscribers and 
      11,700 Internet customers, as well as having minority ownership interest 
      in other telecommunications companies.
    
    
      New Ulm Telecom, Inc. is a telecommunications provider serving rural 
      communities in Minnesota and Iowa. At June 30, 2006, New Ulm Telecom, 
      Inc. served approximately 16,300 telephone access lines, 4,800 cable 
      television subscribers and 5,400 Internet customers.
    
    
      New Ulm Telecom, Inc., as it has previously announced in its October 10, 
      2006 8-K, used approximately $18 million of the proceeds it received 
      from the sale of Midwest Wireless Holding in connection with its 
      purchase of its one-third ownership of Hector Communications Corporation.
    
    
      CAUTIONARY STATEMENT
    
    
      The Private Securities Litigation Reform Act of 1995 contains certain 
      safe harbor provisions regarding forward-looking statements. These 
      statements may include, without limitation, statements with respect to 
      anticipated future operating and financial performance, growth 
      opportunities and growth rates, acquisition and divestiture 
      opportunities, business strategies, business and competitive outlook and 
      other similar forecasts and statements of expectation. Words such as 
      expects, anticipates, intends, plans, believes, seeks, estimates and 
      should, and variations of these words and similar expressions, are 
      intended to identify these forward-looking statements. Such 
      forward-looking statements are subject to risks and uncertainties that 
      could cause actual results to differ materially from such statements.
    
    
      Due to the uncertainties listed and the fact that any forward-looking 
      statements made by New Ulm Telecom, Inc. and its management are based on 
      estimates, projections, beliefs and assumptions of management, they are 
      not guarantees of future performance. Except as required by law, New Ulm 
      Telecom, Inc. disclaims any obligation to update or revise any 
      forward-looking statements based on the occurrence of future events, the 
      receipt of new information, or otherwise.
    
  
New Ulm Telecom, Inc. (OTCBB:NULM) announced today that it has
completed its acquisition of a one-third ownership in Hector
Communications Corporation (AMEX:HCT) through a recently formed
corporation, Hector Acquisition Corporation, that is owned equally by
New Ulm Telecom, Inc., Blue Earth Valley Communications, Inc. and
Arvig Enterprises, Inc., all of which are independent local exchange
carriers. Each of the owners will provide management and other
operational services to Hector Communications Corporation and its
subsidiaries.

   New Ulm Telecom, Inc.'s President and CEO, Mr. Bill Otis, has been
named Chairman of the Board and President of Hector Communications
Corporation.

   Hector Acquisition Corporation entered into a merger agreement to
acquire all of the outstanding shares of Hector Communications
Corporation for $36.40 per share on June 27, 2006. New Ulm Telecom,
Inc., as a one-third owner of Hector Acquisition Corporation,
previously announced the entry into a merger agreement with Hector
Communications Corporation in its 8-K filed on June 27, 2006.

   Hector Communications Corporation is a telecommunications holding
company which through its subsidiaries provides telecommunications
services in rural communities in Minnesota, Wisconsin and North
Dakota. At June 30, 2006 Hector Communications Corporation served
approximately 29,300 telephone access lines, 8,000 cable television
subscribers and 11,700 Internet customers, as well as having minority
ownership interest in other telecommunications companies.

   New Ulm Telecom, Inc. is a telecommunications provider serving
rural communities in Minnesota and Iowa. At June 30, 2006, New Ulm
Telecom, Inc. served approximately 16,300 telephone access lines,
4,800 cable television subscribers and 5,400 Internet customers.

   New Ulm Telecom, Inc., as it has previously announced in its
October 10, 2006 8-K, used approximately $18 million of the proceeds
it received from the sale of Midwest Wireless Holding in connection
with its purchase of its one-third ownership of Hector Communications
Corporation.

   CAUTIONARY STATEMENT

   The Private Securities Litigation Reform Act of 1995 contains
certain safe harbor provisions regarding forward-looking statements.
These statements may include, without limitation, statements with
respect to anticipated future operating and financial performance,
growth opportunities and growth rates, acquisition and divestiture
opportunities, business strategies, business and competitive outlook
and other similar forecasts and statements of expectation. Words such
as expects, anticipates, intends, plans, believes, seeks, estimates
and should, and variations of these words and similar expressions, are
intended to identify these forward-looking statements. Such
forward-looking statements are subject to risks and uncertainties that
could cause actual results to differ materially from such statements.

   Due to the uncertainties listed and the fact that any
forward-looking statements made by New Ulm Telecom, Inc. and its
management are based on estimates, projections, beliefs and
assumptions of management, they are not guarantees of future
performance. Except as required by law, New Ulm Telecom, Inc.
disclaims any obligation to update or revise any forward-looking
statements based on the occurrence of future events, the receipt of
new information, or otherwise.