Windstream sells product distribution subsidiary assets

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Aug 13, 2009

Windstream sells product distribution subsidiary assets

LITTLE ROCK, Ark., August 13, 2009 - Windstream Corporation (NYSE: WIN) has entered into an agreement to sell the non-affiliate operating assets of the company’s product distribution subsidiary, Windstream Supply LLC, to Walker and Associates, Inc., based in Welcome, N.C.

“This transaction provides a better strategic path for our supply business and allows Windstream to focus on our core communications business,” said Brent Whittington, chief operating officer for Windstream.

Virginia Walker, CEO of Walker, stated, "For nearly 40 years, Walker has been an innovator in customer-oriented supply and services to network operators. Our storied market strength is a great platform for leveraging this added scale and customer reach."

The transaction primarily includes product inventory and customer accounts. The sale is expected to close later this month. Terms were not disclosed. The transaction is expected to have virtually no effect on the company’s operating income before depreciation and amortization (OIBDA) performance in 2009. Windstream Supply was expected to generate roughly $75 million in sales from external customers for 2009.

About Windstream

Windstream Corporation is an S&P 500 company that provides phone, high-speed Internet and high-definition digital TV services to customers in 16 states. The company also offers a wide range of IP-based voice and data services and advanced phone systems and equipment to businesses and government agencies. The company has approximately 3 million access lines and about $3.1 billion in annual revenues. Windstream is ranked 4th in the 2009 BusinessWeek 50 ranking of the best performing U.S. companies. For more information about Windstream, visit

Windstream claims the protection of the safe-harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including statements on the company’s expected OIBDA performance in 2009, are subject to uncertainties that could cause actual future events and results to differ materially from those expressed in the forward-looking statements. These forward-looking statements are based on estimates, projections, beliefs and assumptions that Windstream believes are reasonable but are not guarantees of future events and results. Actual future events and results of Windstream may differ materially from those expressed in these forward-looking statements as a result of a number of important factors. Factors that could cause actual results to differ materially from those contemplated above include, among others: risks associated with the disposition of the non-affiliate business to Walker and Associates, Inc.; the ability of Windstream to realize the anticipated cost reductions and other benefits from the disposition; further adverse changes in economic conditions in the markets served by Windstream; material changes in the communications industry generally that could adversely affect vendor relationships with equipment and network suppliers and customer relationships with wholesale customers; and those additional factors under the caption “Risk Factors” in Windstream’s Form 10-K for the year ended Dec. 31, 2008. In addition to these factors, actual future performance, outcomes and results may differ materially because of more general factors including, among others, general industry and market conditions and growth rates, economic conditions, and governmental and public policy changes. Windstream undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The foregoing review of factors that could cause Windstream's actual results to differ materially from those contemplated in the forward-looking statements should be considered in connection with information regarding risks and uncertainties that may affect Windstream's future results included in Windstream’s filings with the Securities and Exchange Commission at

About Walker

Walker and Associates is a woman-owned, national distributor of telecommunications network products. Walker’s customers are chiefly broadband providers including wireline, wireless, cable TV, government and enterprise network operators. Walker’s extensive range of products from over 200 suppliers facilitates the delivery of high-speed Internet, video, data and voice services to residential, business, and mobile users.

Walker performs important logistics, supply chain management and technical support services for its customers, as well as general product promotion for its manufacturer base. Walker is TL9000 / ISO 9000 quality certified. Headquartered in Welcome, N.C., near Winston-Salem, the company is celebrating 39 years of success in 2009.

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