CFC Receives Regulatory Approvals From the BVI Government

  This week, the Minister for Communications and
Works and the Telecommunications Regulatory Commission of the British
Virgin Islands (BVI) approved the application of National Rural Utilities Cooperative Finance
Corporation (CFC) to acquire BVI Cable TV Ltd. ("BVI Cable") in
connection with its agreement with the Chapter 11 Trustee of Innovative
Communication Corporation (ICC). These are the first transfer-of-control
approvals ever granted under the BVI's new Telecommunications Act.

"CFC has already received interim bankruptcy court approval, U.S. antitrust clearance and now the BVI approvals. Once it receives the remaining regulatory approvals, CFC will request authorization from the bankruptcy court to proceed with the transfer of control process and acquire and rehabilitate BVI Cable and other ICC-owned companies in the U.S. Virgin Islands and Dutch St. Maarten," stated CFC CFO Steven Lilly.

Last January, CFC announced that it would make a credit bid to acquire the outstanding stock of BVI Cable and the other ICC-owned companies. The credit bid is conditioned on approval of regulatory authorities in the jurisdictions where ICC's businesses operate.

ABOUT CFC

National Rural Utilities Cooperative Finance Corporation (CFC) is a cooperative that serves the nation's rural utility systems. With more than $20 billion in assets, CFC provides its member-owners with an assured source of market-priced capital and financial products and services. CFC can be found online at nrucfc.org.

Contact: Mike O'Brien Vice President Corporate Communications Email Contact 703-709-6709 Andrew Don Vice President Capital Markets Relations Email Contact 703-709-6869