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Arvig acquires four telecommunications companies

Arvig Enterprises, Inc. of Perham today announced the completion of its acquisition of Arrowhead Communications, Eagle Valley Telephone Company, Felton Telephone Company and Loretel Systems.

These four Minnesota-based companies are being spun off from Hector Communications Corporation, which is jointly owned by New Ulm Telecom, Inc., Arvig Enterprises, Inc. and Blue Earth Valley Communications, Inc. The three owner/shareholder companies of Hector Communications entered into a spin-off agreement under which Hector agreed to distribute its independent local exchange company subsidiaries to its three owners/shareholders.

Hector owned a total of 12 telecommunication companies, including nine local exchange telephone companies, with customers located in Minnesota, North Dakota and Wisconsin. Arvig is acquiring the previously mentioned four companies.

Hector and its shareholders determined that by spinning-off the nine local exchange telephone companies to New Ulm Telecom, Arvig and Blue Earth Valley Communications, both the companies and their customers would benefit because each acquiring company can now capitalize on its geographic proximity to continue to provide continued and uninterrupted service to customers of these local exchange telephone companies; more fully integrate these local exchange telephone companies into their current operations and existing operating businesses; and allow more efficient branding and delivery of services to these customers.

"Arvig has played a leading role in the day-to-day operations of these four companies over the past several years," said David Arvig, COO and Vice President of Arvig Enterprises. "The four companies serve rural communities adjacent to the communities where Arvig already provides telecommunications services. Bringing them into the Arvig family of companies will allow us to better serve these customers."

"We are looking forward to working more closely with these communities and residents," Arvig continued. "And, customers can expect to work with the same professional staff they have developed relationships with over the years."

Arvig is a full-service telecommunications provider. In addition to high-speed Internet access, digital television, and local telephone service, Arvig also provides managed IT services, business telephone systems, security solutions, Verizon wireless phones and service, and more. For more information, visit Arvig online at