text: The $5.0 million placed in escrow, as part of the sales agreement on the Virginia 10 RSA limited partnership, should be 
  released after February 28, 2005. There are no known claims that have been filed against the amount in escrow. 
  
  The Company spent $12.5 million on capital projects in 2003, or about $7.0 million below what was budgeted for the 
  year. The variance was primarily due to postponing construction of an additional diverse fiber route and the delay of 
  the second phase of renovations on the Shentel Center in Edinburg, Virginia. 
  
  The Company has no other off-balance sheet arrangements and has not entered into any transactions involving 
  unconsolidated, limited purpose entities or commodity contracts. 
  
  Capital expenditures budgeted for 2004 total approximately $30 million, including approximately $20 million for 
  additional PCS base stations, additional towers, and switch upgrades to enhance the PCS network. Improvements and 
  replacements of approximately $5 million are planned for the telephone operation. The remaining $5 million covers 
  building renovations, vehicles, office equipment, and other miscellaneous capital needs. 
  
  The Company anticipates using funds from operations, to the extent they are available to fund the capital expenditures 
  and the payment of debt and interest. Due to lower than expected tax expenses in 2003, the Company will apply the 
  tax receivable to the 2004-year tax liability. It is anticipated by no later than second quarter of 2004, additional federal 
  tax payments will be due based on anticipated profits expected to be generated in the operation. 