IMPORTANT NOTICE RATE INCREASE EFFECTIVE OCTOBER 1, 2006

Smithville Telephone Company, Inc., will increase its flat monthly rate by $1.00 per month effective October 1, 2006.

We regret the necessity for the increase but the rising costs of doing business have made it necessary in order to continue its provision of good and dependable service.

We have been forced to make slight increases in its subscriber line charge which depends on the decisions of federal and state regulatory agencies. Your monthly flat rate, however, has remained unchanged for a period of approximately twenty years.

Smithville Telephone will take all steps necessary and available to it to prevent subsequent increases.

Darby A. McCarty, President
Smithville Telephone Company, Inc.