MONROE, La., Aug. 2 /PRNewswire-FirstCall/ -- CenturyTel, Inc. (NYSE: CTL) announces operating results for second quarter 2007.

    -- Operating revenues, excluding nonrecurring items, increased 5.0% to
       $639.1 million compared to $608.9 million in second quarter 2006.
       Reported under GAAP, operating revenues increased 13.3% to $690.0
       million.

    -- Operating cash flow (as defined in the attached financial schedules),
       excluding nonrecurring items, rose 4.7% to $311.2 million from $297.1
       million in second quarter 2006.

    -- Net income, excluding nonrecurring items, increased 6.9% to $78.4
       million from $73.4 million in second quarter 2006. Net income, reported
       under GAAP, was $112.3 million compared to $152.2 million in second
       quarter 2006.

    -- Diluted earnings per share, excluding nonrecurring items, rose 14.8% to
       $.70 in second quarter 2007 compared to $.61 in second quarter 2006,
       while GAAP diluted earnings per share was $1.00 in second quarter 2007
       and $1.26 in second quarter 2006.

    -- Free cash flow (as defined in the attached financial schedules),
       excluding nonrecurring items, was $154.8 million in second quarter
       2007.


    Second Quarter Highlights
    (Excluding nonrecurring items)
    (In thousands, except per
     share amounts and operating data)
                              Quarter Ended     Quarter Ended      % Change
                                 6/30/07            6/30/06
    Operating Revenues         $ 639,122          $ 608,907          5.0  %
    Operating Cash Flow (1)    $ 311,226          $ 297,120          4.7  %
    Net Income                  $ 78,434           $ 73,404          6.9  %
    Diluted Earnings
     Per Share                     $ 70              $.61         14.8  %
    Average Diluted Shares
     Outstanding                113,721           121,636         (6.5) %
    Capital Expenditures        $ 57,976           $ 70,367        (17.6) %

    Access Lines (2) (3)       2,205,000          2,153,000          2.4  %
    High-speed Internet
     Customers (3)               500,000            313,000         59.7  %


    (1)  Operating Cash Flow is a non-GAAP financial measure. A reconciliation
         of this item to comparable GAAP measures is included in the attached
         financial schedules.

    (2)  Quarter ended 6/30/2006 access lines include adjustments made during
         2006 to reflect the removal of test lines and database conversion and
         clean-up.

    (3)  Quarter ended 6/30/2007 access lines and high-speed Internet
         customers include the Madison River acquisition. Excluding the
         effects of this acquisition, access lines decreased 5.2% and
         high-speed Internet customers increased 41.8%.

"CenturyTel achieved strong financial results for the second quarter as the recently acquired Madison River properties contributed to revenue growth and effective cost containment contributed to earnings growth during the quarter," Glen F. Post, III, chairman and chief executive officer, said. "We achieved solid growth of more than 30,000 broadband connections during the quarter and, with the addition of Madison River, CenturyTel now serves more than 500,000 broadband customers."

Operating revenues, excluding nonrecurring items, increased 5.0% to $639.1 million in second quarter 2007 compared to $608.9 million in second quarter 2006, driven by the $32.1 million in revenues contributed by the Madison River properties acquired April 30, 2007. Other revenue increases during the quarter of approximately $23 million resulted primarily from an increase in high-speed Internet customers and growth in fiber transport revenues. These increases were more than offset by revenue declines of approximately $25 million primarily attributable to previously anticipated lower access revenues, access line losses and lower revenues under the amended satellite television agreement.

Operating expenses, excluding nonrecurring items, increased 4.1% to $462.2 million from $443.9 million in second quarter 2006, primarily due to operating costs associated with the Madison River properties. Excluding costs associated with the Madison River properties, operating expenses declined in second quarter 2007 compared to second quarter 2006, primarily due to lower bad debt expense, reduced personnel expenses and outside labor costs, lower expenses under the amended satellite television agreement, and lower depreciation expense associated with fully depreciated assets. These declines more than offset increased expenses associated with growth in high-speed Internet and fiber transport customers.

"CenturyTel's financial strength allowed us to complete both the Madison River acquisition and our $1 billion share repurchase program with the repurchase of 2.9 million shares for $136 million during the quarter," Post said. "We continue to retain significant financial flexibility and expect to utilize free cash flow to drive long-term shareholder value."

Operating cash flow, excluding nonrecurring items, for second quarter 2007 was $311.2 million. CenturyTel achieved an operating cash flow margin of 48.7% during the quarter versus 48.8% in second quarter 2006.

Net income, excluding nonrecurring items, was $78.4 million compared to $73.4 million in second quarter 2007. Diluted earnings per share, excluding nonrecurring items, increased to $.70 in second quarter 2007 compared to $.61 in second quarter 2006, primarily due to increased operating income and the reduction in diluted shares outstanding as a result of share repurchases during the twelve months ended June 30, 2007.

For the first six months of 2007, operating revenues, excluding nonrecurring items, were $1.240 billion compared to $1.219 billion in 2006, a 1.7% increase. Operating cash flow, excluding nonrecurring items, was $607.1 million for 2007 compared to $594.8 million a year ago. Net income, excluding nonrecurring items, was $156.3 million compared to $145.7 million in 2006, while diluted earnings per share was $1.38 compared to $1.19 in 2006.

Under generally accepted accounting principles (GAAP), net income for second quarter 2007 was $112.3 million compared to $152.2 million for second quarter 2006. Diluted earnings per share was $1.00 in second quarter 2007 compared to $1.26 in second quarter 2006. Second quarter 2007 results include a $30.2 million after-tax positive revenue settlement related to the resolution of network access disputes and a $3.6 million after-tax benefit related to the amended satellite television agreement with Echostar. Second quarter 2006 results include a $72.4 million after-tax benefit related to the dissolution of the Rural Telephone Bank and a $6.4 million positive impact from the resolution of various income tax audit issues.

For the first six months of 2007, prepared in accordance with GAAP, the Company reported net income of $190.1 million, or $1.67 per diluted share, compared to net income of $221.5 million, or $1.79 per diluted share, for the six months ended June 30, 2006. See the accompanying financial schedules for detail of the Company's nonrecurring items for the years 2007 and 2006.

For the third quarter 2007, CenturyTel expects total revenues of $690 to $700 million and diluted earnings per share of $.87 to $.92. The finalization of revenue settlements during the third quarter is expected to result in an approximate $.23 increase in diluted earnings per share. For the full year 2007, diluted earnings per share is expected to be in the range of $2.90 to $3.00, an increase over the $2.75 to $2.85 range previously provided. This increase in 2007 diluted earnings per share guidance is primarily due to the better than anticipated results during second quarter 2007, projected increases in Internet and long distance revenues, and the expectation that operating expenses will be lower in the second half of 2007 than previously forecast, along with the anticipation of a modest contribution from the Madison River properties.

These outlook figures assume conversion of our $165 million of Series K convertible debentures and exclude nonrecurring items and the potential impact of any future mergers, acquisitions, divestitures, refinancing, share repurchases or other similar business transactions.

Other. As previously reported, CenturyTel adopted the requirements of Staff Accounting Bulletin No. 108 (SAB 108) in fourth quarter 2006, which required the results of operations previously reported in the first, second and third quarters of 2006 to be adjusted. Second quarter 2006 and six months ended June 30, 2006 amounts included in this press release reflect amounts adjusted for the application of SAB 108.

Reconciliation to GAAP. This release includes certain non-GAAP financial measures, including but not limited to operating cash flow, free cash flow and adjustments to GAAP measures to exclude the effect of nonrecurring items. In addition to providing key metrics for management to evaluate the Company's performance, we believe these measurements assist investors in their understanding of period-to-period operating performance and in identifying historical and prospective trends. Reconciliations of non-GAAP financial measures to the most comparable GAAP measures are included in the attached financial schedules. Reconciliation of additional non-GAAP financial measures that may be discussed during the earnings call described below will be available in the Investor Relations portion of the Company's Web site at www.centurytel.com. Investors are urged to consider these non-GAAP measures in addition to, and not in substitution for, measures prepared in accordance with GAAP.

Investor Call. As previously announced, CenturyTel's management will host a conference call at 10:30 a.m. Central Time today. Interested parties can access the call by dialing 866.837.9781. The call will be accessible for replay through August 8, 2007, by calling 888.258.7854 and entering the conference ID number 1109813. Investors can also listen to CenturyTel's earnings conference call and replay by accessing the Investor Relations portion of the Company's Web site at www.centurytel.com prior to August 23, 2007.

In addition to historical information, this release includes certain forward-looking statements, estimates and projections that are based on current expectations only, and are subject to a number of risks, uncertainties and assumptions, many of which are beyond the control of the Company. Actual events and results may differ materially from those anticipated, estimated or projected if one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect. Factors that could affect actual results include but are not limited to: the timing, success and overall effects of competition from a wide variety of competitive providers; the risks inherent in rapid technological change; the effects of ongoing changes in the regulation of the communications industry; the Company's ability to effectively manage its expansion opportunities, including successfully integrating newly-acquired properties into the Company's operations and retaining and hiring key personnel; possible changes in the demand for, or pricing of, the Company's products and services; the Company's continued access to credit markets on favorable terms; the Company's ability to successfully introduce new product or service offerings on a timely and cost- effective basis; the Company's ability to collect its receivables from financially troubled communications companies; the Company's ability to successfully negotiate collective bargaining agreements on reasonable terms without work stoppages; the effect of adverse weather; other risks referenced from time to time in the Company's filings with the Securities and Exchange Commission (the "SEC"); and the effects of more general factors such as changes in interest rates, in tax rates, in accounting policies or practices, in operating, medical or administrative costs, in general market, labor or economic conditions, or in legislation, regulation or public policy. These and other uncertainties related to the Company's business are described in greater detail in the Company's Annual Report on Form 10-K for the year ended December 31, 2006, as updated by the Company's subsequent SEC reports. You should be aware that new factors may emerge from time to time and it is not possible for management to identify all such factors, nor can it predict the impact of each such factor on the business or the extent to which any one or more factors may cause actual results to differ from those reflected in any forward-looking statements. You are further cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The information contained in this release is as of August 2, 2007. The Company undertakes no obligation to update any of its forward- looking statements for any reason.

    CenturyTel (NYSE: CTL) is a leading provider of communications, high speed
Internet and entertainment services in small-to-mid-size cities through our
broadband and fiber transport networks.  Included in the S&P 500 Index,
CenturyTel delivers advanced communications with a personal touch to customers
in 25 states.  Visit us at http://www.centurytel.com.


                               CenturyTel, Inc.
                      CONSOLIDATED STATEMENTS OF INCOME
                  THREE MONTHS ENDED JUNE 30, 2007 AND 2006
                                 (UNAUDITED)

                                           Three months ended June 30, 2007
                                                                   As adjusted
                                                         Less       excluding
                                                          non-         non-
     In thousands,                             As       recurring   recurring
      except per share amounts              reported     items        items

     OPERATING REVENUES
        Voice                               $219,803                  219,803
        Network access                       266,202     48,987 (1)   217,215
        Data                                 108,206                  108,206
        Fiber transport and CLEC              40,714         13 (1)    40,701
        Other                                 55,066      1,869 (2)    53,197
                                             689,991     50,869       639,122

     OPERATING EXPENSES
        Cost of services and products        226,388     (4,052)(2)   230,440
        Selling, general and
         administrative                       97,456                   97,456
        Depreciation and amortization        134,311                  134,311
                                             458,155     (4,052)      462,207

     OPERATING INCOME                        231,836     54,921       176,915

     OTHER INCOME (EXPENSE)
        Interest expense                     (57,667)                 (57,667)
        Other income (expense)                 8,080                    8,080
        Income tax expense                   (69,984)   (21,090)(3)   (48,894)

     NET INCOME                             $112,265     33,831        78,434

     BASIC EARNINGS PER SHARE                  $1.03       0.31          0.72
     DILUTED EARNINGS PER SHARE                $1.00       0.30          0.70

     AVERAGE SHARES OUTSTANDING
        Basic                                108,405                  108,405
        Diluted                              113,721                  113,721

    DIVIDENDS PER COMMON SHARE               $0.0650                   0.0650


                                           Three months ended June 30, 2006
                                                                   As adjusted
                                                         Less       excluding
                                                          non-         non-
     In thousands,                             As       recurring   recurring
      except per share amounts              reported     items        items

     OPERATING REVENUES
        Voice                               216,485                  216,485
        Network access                      221,663                  221,663
        Data                                 84,447                   84,447
        Fiber transport and CLEC             36,051                   36,051
        Other                                50,261                   50,261
                                            608,907        -         608,907

     OPERATING EXPENSES
        Cost of services and products       216,191                  216,191
        Selling, general and
         administrative                      95,596                   95,596
        Depreciation and amortization       132,127                  132,127
                                            443,914        -         443,914

     OPERATING INCOME                       164,993        -         164,993

     OTHER INCOME (EXPENSE)
        Interest expense                    (50,639)                 (50,639)
        Other income (expense)              123,459    118,649 (4)     4,810
        Income tax expense                  (85,603)   (39,843)(5)   (45,760)

     NET INCOME                             152,210     78,806        73,404

     BASIC EARNINGS PER SHARE                  1.32       0.68          0.64
     DILUTED EARNINGS PER SHARE                1.26       0.65          0.61

     AVERAGE SHARES OUTSTANDING
        Basic                               115,441                  115,441
        Diluted                             121,636                  121,636

    DIVIDENDS PER COMMON SHARE               0.0625                   0.0625


                                                                   Increase
                                                                  (decrease)
                                                   Increase        excluding
     In thousands, except per share               (decrease)      nonrecurring
     amounts                                      as reported        items

     OPERATING REVENUES
         Voice                                         1.5%              1.5%
         Network access                               20.1%             (2.0%)
         Data                                         28.1%             28.1%
         Fiber transport and CLEC                     12.9%             12.9%
         Other                                         9.6%              5.8%
                                                      13.3%              5.0%

     OPERATING EXPENSES
         Cost of services and products                 4.7%              6.6%
         Selling, general and
          administrative                               1.9%              1.9%
         Depreciation and amortization                 1.7%              1.7%
                                                       3.2%              4.1%

     OPERATING INCOME                                 40.5%              7.2%

     OTHER INCOME (EXPENSE)
         Interest expense                             13.9%             13.9%
         Other income (expense)                      (93.5%)            68.0%
         Income tax expense                          (18.2%)             6.8%

     NET INCOME                                      (26.2%)             6.9%

     BASIC EARNINGS PER SHARE                        (22.0%)            12.5%
     DILUTED EARNINGS PER SHARE                      (20.6%)            14.8%

     AVERAGE SHARES OUTSTANDING
         Basic                                        (6.1%)            (6.1%)
         Diluted                                      (6.5%)            (6.5%)

    DIVIDENDS PER COMMON SHARE                         4.0%              4.0%


     NONRECURRING ITEMS
       (1) -  Revenue recorded upon settlement of a dispute with a carrier.
       (2) -  Reimbursement of amounts upon a change in our satellite
              television arrangement.
       (3) -  Tax effects of items (1) and (2).
       (4)  - Includes gain recorded upon redemption of Rural Telephone
              Bank stock ($117.8 million) and gain recorded upon sale of
              Arizona properties ($.9 million).
       (5) - Includes $46.3 million aggregate tax expense related to
             Item (4), net of $6.4 million net tax benefit due to the
             resolution of various income tax audit issues.


                               CenturyTel, Inc.
                      CONSOLIDATED STATEMENTS OF INCOME
                   SIX MONTHS ENDED JUNE 30, 2007 AND 2006
                                 (UNAUDITED)

                                            Six months ended June 30, 2007
                                                                  As adjusted
                                                        Less       excluding
                                                        non-          non-
     In thousands, except per share           As      recurring     recurring
     amounts                               reported     items         items

     OPERATING REVENUES
        Voice                               $428,878                  428,878
        Network access                       477,601    48,987 (1)    428,614
        Data                                 204,070                  204,070
        Fiber transport and CLEC              79,040        13 (1)     79,027
        Other                                101,257     1,869 (2)     99,388
                                           1,290,846    50,869      1,239,977

     OPERATING EXPENSES
        Cost of services and products        439,919    (4,052)(2)    443,971
        Selling, general and
         administrative                      188,913                  188,913
        Depreciation and amortization        262,095                  262,095
                                             890,927    (4,052)       894,979

     OPERATING INCOME                        399,919    54,921        344,998

     OTHER INCOME (EXPENSE)
        Interest expense                    (104,628)                (104,628)
        Other income (expense)                13,370                   13,370
        Income tax expense                  (118,526)  (21,090)(3)    (97,436)

     NET INCOME                             $190,135    33,831        156,304

     BASIC EARNINGS PER SHARE                  $1.73      0.31           1.42
     DILUTED EARNINGS PER SHARE                $1.67      0.29           1.38

     AVERAGE SHARES OUTSTANDING
        Basic                                109,718                  109,718
        Diluted                              115,015                  115,015

    DIVIDENDS PER COMMON SHARE               $0.1300                   0.1300


                                            Six months ended June 30, 2006
                                                                  As adjusted
                                                        Less       excluding
                                                        non-          non-
     In thousands, except per share           As      recurring     recurring
     amounts                               reported     items         items

     OPERATING REVENUES
        Voice                                433,499                  433,499
        Network access                       446,986     1,128 (4)    445,858
        Data                                 167,685       184 (4)    167,501
        Fiber transport and CLEC              71,831                   71,831
        Other                                100,197                  100,197
                                           1,220,198     1,312      1,218,886

     OPERATING EXPENSES
        Cost of services and products        438,746     5,493 (4)    433,253
        Selling, general and
         administrative                      191,536       682 (4)    190,854
        Depreciation and amortization        266,999                  266,999
                                             897,281     6,175        891,106

     OPERATING INCOME                        322,917    (4,863)       327,780

     OTHER INCOME (EXPENSE)
        Interest expense                    (100,725)                (100,725)
        Other income (expense)               128,056   118,649 (5)      9,407
        Income tax expense                  (128,778)  (37,976)(6)    (90,802)

     NET INCOME                              221,470    75,810        145,660

     BASIC EARNINGS PER SHARE                   1.86      0.64           1.22
     DILUTED EARNINGS PER SHARE                 1.79      0.61           1.19

     AVERAGE SHARES OUTSTANDING
        Basic                                118,917                  118,917
        Diluted                              124,798                  124,798

    DIVIDENDS PER COMMON SHARE                0.1250                   0.1250


                                                                   Increase
                                                                  (decrease)
                                                   Increase        excluding
     In thousands, except per share               (decrease)      nonrecurring
     amounts                                      as reported        items

     OPERATING REVENUES
         Voice                                        (1.1%)            (1.1%)
         Network access                                6.8%             (3.9%)
         Data                                         21.7%             21.8%
         Fiber transport and CLEC                     10.0%             10.0%
         Other                                         1.1%             (0.8%)
                                                       5.8%              1.7%

     OPERATING EXPENSES
         Cost of services and products                 0.3%              2.5%
         Selling, general and
          administrative                              (1.4%)            (1.0%)
         Depreciation and amortization                (1.8%)            (1.8%)
                                                      (0.7%)             0.4%

     OPERATING INCOME                                 23.8%              5.3%

     OTHER INCOME (EXPENSE)
         Interest expense                              3.9%              3.9%
         Other income (expense)                      (89.6%)            42.1%
         Income tax expense                           (8.0%)             7.3%

     NET INCOME                                      (14.1%)             7.3%

     BASIC EARNINGS PER SHARE                         (7.0%)            16.4%
     DILUTED EARNINGS PER SHARE                       (6.7%)            16.0%

     AVERAGE SHARES OUTSTANDING
         Basic                                        (7.7%)            (7.7%)
         Diluted                                      (7.8%)            (7.8%)

    DIVIDENDS PER COMMON SHARE                         4.0%              4.0%

     NONRECURRING ITEMS
       (1) - Revenue recorded upon settlement of a dispute with a carrier.
       (2) - Reimbursement of amounts upon a change in our satellite
             television arrangement.
       (3) - Tax effects of items (1) and (2).
       (4) - Severance and related costs due to workforce reduction,
             including revenue impact.
       (5) - Includes gain recorded upon redemption of Rural Telephone
             Bank stock ($117.8 million) and gain recorded upon sale of
             Arizona properties ($.9 million).
       (6) - Includes $44.4 million net tax expense related to Items (4)
             and (5), net of $6.4 million net tax benefit due to the
             resolution of various income tax audit issues.


                               CenturyTel, Inc.
                         CONSOLIDATED BALANCE SHEETS
                     JUNE 30, 2007 AND DECEMBER 31, 2006
                                 (UNAUDITED)

                                                 June 30,           Dec. 31,
                                                  2007               2006
                                                       (in thousands)
                     ASSETS
    CURRENT ASSETS
        Cash and cash equivalents                 $43,525             25,668
        Other current assets                      250,881            264,449
           Total current assets                   294,406            290,117

    NET PROPERTY, PLANT AND EQUIPMENT
        Property, plant and equipment           8,560,266          7,893,760
        Accumulated depreciation               (5,355,716)        (4,784,483)
           Net property, plant and
            equipment                           3,204,550          3,109,277

    GOODWILL AND OTHER ASSETS
        Goodwill                                3,999,526          3,431,136
        Other                                     775,054            610,477
            Total goodwill and other
             assets                             4,774,580          4,041,613


    TOTAL ASSETS                               $8,273,536          7,441,007


             LIABILITIES AND EQUITY
    CURRENT LIABILITIES
        Short-term debt and current
         maturities of long-term debt            $511,307            178,012
        Other current liabilities                 448,967            439,553
            Total current liabilities             960,274            617,565

    LONG-TERM DEBT                              2,735,073          2,412,852
    DEFERRED CREDITS AND OTHER
     LIABILITIES                                1,441,155          1,219,639
    STOCKHOLDERS' EQUITY                        3,137,034          3,190,951

    TOTAL LIABILITIES AND EQUITY               $8,273,536          7,441,007


                               CenturyTel, Inc.
                RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
                                 (UNAUDITED)

                                           Three months ended June 30, 2007
                                                                  As adjusted
                                                        Less       excluding
                                                        non-          non-
     In thousands                             As      recurring     recurring
                                           reported     items         items
     Operating cash flow and cash flow
      margin
       Operating income                     $231,836    54,921 (1)   176,915
       Add:  Depreciation and
        amortization                         134,311                 134,311
       Operating cash flow                  $366,147    54,921       311,226

       Revenues                             $689,991    50,869 (1)   639,122

       Operating income margin (operating
        income divided by revenues)            33.6%                   27.7%

       Operating cash flow margin
        (operating cash flow divided by
        revenues)                              53.1%                   48.7%


     Free cash flow (prior to debt
      service requirements and dividends)
       Net income                           $112,265    33,831 (1)    78,434
       Add:  Depreciation and
        amortization                         134,311         -       134,311
       Less:  Capital expenditures           (57,976)        -       (57,976)
       Free cash flow                       $188,600    33,831       154,769

       Free cash flow                       $188,600
       Gain on asset dispositions                  -
       Deferred income taxes                  16,634
       Changes in current assets and
        current liabilities                   36,943
       Decrease in other noncurrent
        assets                                 2,621
       Increase (decrease) in other
        noncurrent liabilities               (11,266)
       Retirement benefits                     9,011
       Excess tax benefits from share-
        based compensation                    (3,280)
       Other, net                              2,076
       Add:  Capital expenditures             57,976
       Net cash provided by operating
        activities                          $299,315


                                           Three months ended June 30, 2006
                                                                  As adjusted
                                                        Less       excluding
                                                        non-          non-
     In thousands                             As      recurring     recurring
                                           reported     items         items
     Operating cash flow and cash flow
      margin
       Operating income                      164,993         -       164,993
       Add:  Depreciation and
        amortization                         132,127                 132,127
       Operating cash flow                   297,120         -       297,120

       Revenues                              608,907         -       608,907

       Operating income margin (operating
        income divided by revenues)            27.1%                   27.1%

       Operating cash flow margin
        (operating cash flow divided by
        revenues)                              48.8%                   48.8%


     Free cash flow (prior to debt
      service requirements and dividends)
       Net income                            152,210    78,806 (2)    73,404
       Add:  Depreciation and
        amortization                         132,127         -       132,127
       Less:  Capital expenditures           (70,367)        -       (70,367)
       Free cash flow                        213,970    78,806       135,164

       Free cash flow                        213,970
       Gain on asset dispositions           (118,649)
       Deferred income taxes                  12,732
       Changes in current assets and
        current liabilities                   31,597
       Decrease in other noncurrent
        assets                                 2,887
       Increase (decrease) in other
        noncurrent liabilities                   894
       Retirement benefits                     7,548
       Excess tax benefits from share-
        based compensation                      (761)
       Other, net                              1,702
       Add:  Capital expenditures             70,367
       Net cash provided by operating
        activities                           222,287


     NONRECURRING ITEMS
       (1) - Includes $49.0 million revenue recorded upon settlement of a
             dispute with a carrier and $5.9 million reimbursement of amounts
             (of which $1.9 million increased revenues) upon a change in our
             satellite television arrangement (presented on both a pre-tax and
             after-tax basis).
       (2) - Includes (i) $72.4 million after-tax gains recorded upon
             redemption of Rural Telephone Bank stock and sale of Arizona
             properties and (ii) $6.4 million net tax benefit due to the
             resolution of various income tax audit issues.


                               CenturyTel, Inc.
                RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
                                 (UNAUDITED)

                                            Six months ended June 30, 2007
                                                                  As adjusted
                                                        Less       excluding
                                                         non-         non-
     In thousands                              As      recurring    recurring
                                            reported     items        items
     Operating cash flow and cash flow
      margin
       Operating income                      $399,919   54,921 (1)    344,998
       Add:  Depreciation and
        amortization                          262,095                 262,095
       Operating cash flow                   $662,014   54,921        607,093

       Revenues                            $1,290,846   50,869 (1)  1,239,977

       Operating income margin (operating
        income divided by revenues)             31.0%                   27.8%

       Operating cash flow margin
        (operating cash flow divided by
        revenues)                               51.3%                   49.0%


     Free cash flow (prior to debt
      service requirements and dividends)
       Net income                            $190,135   33,831 (1)    156,304
       Add:  Depreciation and
        amortization                          262,095        -        262,095
       Less:  Capital expenditures           (106,856)       -       (106,856)
       Free cash flow                        $345,374   33,831        311,543

       Free cash flow                        $345,374
       Gain on asset dispositions                   -
       Deferred income taxes                   30,005
       Changes in current assets and
        current liabilities                    70,835
       Decrease in other noncurrent
        assets                                  3,653
       Increase (decrease) in other
        noncurrent liabilities                (11,667)
       Retirement benefits                     14,647
       Excess tax benefits from share-
        based compensation                     (6,312)
       Other, net                               4,634
       Add:  Capital expenditures             106,856
       Net cash provided by operating
        activities                           $558,025


                                            Six months ended June 30, 2006
                                                                 As adjusted
                                                       Less       excluding
                                                        non-         non-
     In thousands                              As     recurring    recurring
                                            reported    items        items
     Operating cash flow and cash flow
      margin
       Operating income                      322,917   (4,863)(2)    327,780
       Add:  Depreciation and
        amortization                         266,999                 266,999
       Operating cash flow                   589,916   (4,863)       594,779

       Revenues                            1,220,198    1,312 (2)  1,218,886

       Operating income margin (operating
        income divided by revenues)            26.5%                   26.9%

       Operating cash flow margin
        (operating cash flow divided by
        revenues)                              48.3%                   48.8%


     Free cash flow (prior to debt
      service requirements and dividends)
       Net income                            221,470   75,810 (3)    145,660
       Add:  Depreciation and
        amortization                         266,999        -        266,999
       Less:  Capital expenditures          (130,455)       -       (130,455)
       Free cash flow                        358,014   75,810        282,204

       Free cash flow                        358,014
       Gain on asset dispositions           (118,649)
       Deferred income taxes                  22,151
       Changes in current assets and
        current liabilities                     (460)
       Decrease in other noncurrent
        assets                                   297
       Increase (decrease) in other
        noncurrent liabilities                 2,286
       Retirement benefits                    14,926
       Excess tax benefits from share-
        based compensation                    (4,947)
       Other, net                              2,244
       Add:  Capital expenditures            130,455
       Net cash provided by operating
        activities                           406,317

     NONRECURRING ITEMS
       (1) - Includes $49.0 million revenue recorded upon settlement of a
             dispute with a carrier and $5.9 million reimbursement of amounts
             (of which $1.9 million increased revenues) upon a change in our
             satellite television arrangement (presented on both a pre-tax and
             after-tax basis).
       (2) - Severance and related costs due to workforce reduction, including
             revenue impact.
       (3) - Includes (i) $72.4 million after-tax gains recorded upon
             redemption of Rural Telephone Bank stock and sale of Arizona
             properties, (ii) $3.0 million severance and related costs due to
             workforce reduction, including revenue impact, net of tax,
             and (iii) $6.4 million net tax benefit due to the resolution
             of various income tax audit issues.

SOURCE CenturyTel, Inc.