D&E Communications Employees in Birdsboro, PA Ratify New Three-Year Labor Contract

  D&E Communications, Inc. (D&E) (NASDAQ: DECC),
a leading provider of integrated communications services in central and
eastern Pennsylvania, reported a contract ratification with International
Brotherhood of Electrical Workers (IBEW) local 1671, representing 62 D&E
employees in Birdsboro, PA.  The agreement was ratified on July 15, 2009.
The company and union bargaining committees worked together during the last
several months to address issues that were priorities for both parties
recognizing the increased competition in the telecommunications business,
the challenging economic times and the importance of hiring and retaining
the best employees with competitive wages and benefits.

The new contract calls for discontinuation of future benefit accruals under the Union Pension Plan as of January 1, 2010. All active participants will continue to have accrued benefits reflecting their service credit and eligible wages through December 31, 2009. A one-time payment will be offered to all union employees who are or will be eligible for unreduced retirement benefits by December 31, 2009 and who elect to retire by December 31, 2009. This is similar to the one-time payment opportunity offered to eligible non-union employees in January 2009 who are or will be eligible for unreduced retirement benefits by December 31, 2009 and who elect to retire by December 31, 2009. The IBEW and the Company agreed to no wage increase for 2009 and a 1.25% increase for years 2010 and 2011. A five-hundred dollar ratification payment was made to union employees on July 20, 2009.

About D&E

D&E is an integrated communications provider offering residential Voice, Video, High Speed Broadband and On-Site Computer Support services as well as business-class Networking, Business Continuity, IT, Security, Voice and Training solutions. Based in Lancaster County, D&E has been serving communities in central Pennsylvania with industry-leading innovation and an enterprising spirit for more than 100 years. For more information, visit www.decommunications.com.

Contact person: Thomas E. Morell [phone]