NEWTON, Iowa – Iowa Telecommunications Services, Inc. announced its acquisition of Sherburne Tele Systems Inc., for $82 million, is complete.

Sherburne, located in Big Lake, Minn., serves nine communities adjacent to the Minneapolis/St. Paul Metropolitan area. Its operations include ILEC services, marketed as Connections, Etc., and CLEC services provided through its wholly-owned subsidiary, NorthStar Access.

“Connections, Etc. and NorthStar Access customers will continue to experience high quality telephone, Internet and television services from the same friendly, knowledgeable staff,” said Alan L. Wells, Chairman and CEO of Iowa Telecom. “Sherburne is a well-run operation and has been a leader in providing local telecommunications service in central Minnesota. We look forward to working with the Sherburne team as we continue to expand communications services throughout the Midwest.”

Iowa Telecom is making the acquisition through Lakedale Telephone Company and other wholly-owned subsidiaries. Lakedale Telephone, based in Annandale, Minn., is subject to Minnesota regulations and tariffs. The company plans to continue operating under the existing Connections, Etc. and NorthStar Access names.

As of March 31, Sherburne served approximately 15,100 ILEC telephone access lines, 9,900 CLEC lines, 14,400 DSL high-speed Internet customers and 3,700 video subscribers. In 2008, the company generated revenues of $29.2 million and EBITDA, as adjusted, of approximately $11.1 million.