California-Oregon Telecommunications Company Joins Lynch Interactive

Lynch Interactive Corporation (AMEX:LIC) today announced
that it completed the acquisition of California-Oregon
Telecommunications Company ("Cal-Ore") and its subsidiaries for
approximately $21.2 million, consisting of $14 million cash and $7.2
million of notes. The cash portion of the purchase price was financed
through bank borrowings.
   Headquartered in Dorris, California, Cal-Ore is a diversified
communications company offering services in the Butte Valley and
Tulelake areas of northern California, as well as some areas of
southern Klamath County, Oregon. Its subsidiaries include Cal-Ore
Telephone, Cal-Ore Cellular, Cal-Ore Long Distance, and Cal-Ore
Communications.
   Cal-Ore serves approximately 3,100 access lines, including Digital
Subscriber Line ("DSL") service. Cal-Ore's service offerings include
local telephone service, long distance, internet dial-up and
high-speed broadband services. In Klamath Falls, Oregon, Cal-Ore
Communications' competitive local exchange carrier ("CLEC") will
provide "triple play" fiber-to-the-home services in the new Southview
Properties development including voice, high-speed data and video.
   Cal-Ore will continue to have business offices in Dorris and
Tulelake, California, and will continue to offer the same quality of
service their customers have come to expect over the previous 55
years.
   This transaction brings Lynch Interactive's total access lines,
including DSL, to approximately 59,500 in 15 telephone companies.
Cal-Ore marks the entry of Lynch Interactive's telephone operations to
the State of California and its CLEC activities in the State of
Oregon.
   Jack Keen, President of Lynch Interactive's subsidiary Western New
Mexico Telephone Company, will be the Regional Manager for Cal-Ore.
Mr. Keen said, "I look forward to working with the Cal-Ore management
since Cal-Ore shares Western New Mexico's belief that providing high
quality service in rural America is fundamental to the future of our
country."
   After viewing the Cal-Ore facilities and meeting with Cal-Ore
personnel, Eddie Cox, General Manager of Central Utah Telephone
Company, another member of the Lynch Interactive family, said, "I
believe Cal-Ore's addition to the Lynch Interactive family will be
very positive since Cal-Ore has a great team of employees, led by Ed
Ormsbee, who provide customers excellent, quality service."

   Lynch Interactive is a diversified company with subsidiaries in
multimedia and telecommunications services, and actively seeks
acquisitions, principally in existing business areas. The Company's
World Wide Web address is: http://www.lynchinteractivecorp.com.

   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 194, as amended. It
should be recognized that such information is based upon certain
assumptions, projections and forecasts, including without limitation
business conditions and financial markets, regulatory actions and
initiatives, and the cautionary statements set forth in documents
filed by Interactive with the Securities and Exchange Commission. 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.