3 Rivers Offers $4,000,000
Capital Credit Distribution

Beginning June 1, 2005, members of 3 Rivers Telephone Cooperative, Inc. (dba 3 Rivers Communications) are eligible to take a discounted cash-out of the entire balance of their individual capital credit account. As a cooperative, 3 Rivers does not keep "profits" in the same sense that other businesses do. Most funds in excess of operating expenses are transferred to a capital credit account. All funds in the capital credit account are guaranteed to be paid to the members, although the timing of that payment is determined exclusively by the Board of Trustees. Annually, the Board determines the amount to be returned based upon the financial health of the Cooperative, the cash needs, financial performance, and balance sheet impact. Capital credits are normally returned to members based on the oldest year's capital credits on record.

Every member's capital credit account exists as a "Future Value" account. This means that if your account balance is $5,000, it is only worth that amount at some point in the future. It may take 30 or 40 years for the company to complete payment. In many cases capital credit accounts end up as estate assets, and still take years to completely pay out. But this year, you are being offered an opportunity to clear your unpaid capital credit balance!

3 Rivers will accomplish this through a voluntary process known as a "Discounted Cash Buy Out". Discounted buy outs are a standard financial tool, which allow offering a percentage of a future value account as cash today. In the case of 3 Rivers, the cash today offer is 20% of your future value account, through December 31, 2004. So if we take that $5,000 mentioned earlier, you now have a choice; you can wait to collect your capital credits in full over a period of many years, or you can take $1,000 today! Then you can make an individual decision as to whether you will invest, pay some personal bills, or just spend your money. It's entirely YOUR CHOICE!

The obvious question then, is, "What is my future value, and what will I get today if I take this offer"? There are two easy places you can get that information. First, you will receive a mailing roughly June 15 showing you exactly this information. Second, if you happen to miss seeing the mailing, or simply lose it, you can call a telephone Customer Service Representative at 800- 796-4567 (467-2535 in Fairfield) and get the same information.

SHOULD you exercise your option and take this offer? We can't really answer that question for you. We CAN tell you it would help the Cooperative if you do. Your personal situation should be reviewed by you, your family, your business partners, and any financial advisor you use. The offer is open until the goal of $4,000,000 is distributed, or December 15, 2005, whichever comes first, on a first come, first served basis. For additional information, see the PDF document above, or call 800-796-4567 and ask for a mailed or faxed copy of the Capital Credit Frequently Asked Questions sheet.