Press Release

• Total revenues were $182.9 million
• Adjusted EBITDA increased 28% to $45.2 million
• Operating income was up 75% to $18.2 million
• Net income attributable to ATN's stockholders more than doubled to $9.3 million, or $0.60 per diluted share
• Cash provided by operating activities was $21.0 million

BEVERLY, Mass.--(BUSINESS WIRE)-- Atlantic Tele-Network, Inc. (NASDAQ: ATNI), today reported results for the first quarter ended March 31, 2012.

First Quarter 2012 Financial Results

"Our strong first quarter year-on-year performance was a result of a combination of revenue growth across several of our operations, including U.S. wholesale wireless, international wireless and wireline, and expense reductions and operating efficiencies following the Alltel transition, which was completed in the third quarter of last year," said Michael T. Prior, Chief Executive Officer. "The revenue decline in our U.S. retail wireless business this quarter was due to the net subscriber attrition that we experienced in 2011. The success of our new prepaid plans rolled out towards the end of last year generated stronger gross subscriber additions and kept overall subscriber levels fairly stable for the first time since the acquisition. We would like to turn that into modest growth in subscribers in coming quarters and, to accomplish that, we will have to gain more traction with post-paid subscribers in particular. We are offering a very compelling value proposition in our markets, and we are working on several initiatives to expand distribution and drive customer traffic.

"We are very enthusiastic about our upcoming launch in Wal-Mart as a retail wireless sales channel in our markets, and we expect to begin offering service through that channel this month," Mr. Prior added. "Through a partnership we developed with U.S. Cellular to offer our branded U Prepaid no contract wireless service in Wal-Mart, we are able to reinforce our position as the "local" wireless carrier offering a hometown alternative in the communities we serve."

Total revenues for the first quarter were $182.9 million, a 3% decrease from the $188.2 million reported for the first quarter of 2011, reflecting lower U.S. retail wireless revenues, partially offset by higher U.S. wholesale and international revenues.

Adjusted EBITDA¹ for the 2012 first quarter was $45.2 million, 28% above the $35.4 million reported in the 2011 first quarter, led by the strong performance of our U.S. Wireless and Island Wireless segments. Total operating income for the first quarter of 2012 was $18.2 million, a 75% increase over the $10.4 million reported in last year's first quarter. Net income attributable to ATN's stockholders was $9.3 million, or $0.60 per diluted share, more than double the $4.5 million, or $0.29 per diluted share, reported in last year's first quarter.

"We were pleased with the growth in operating profitability this quarter," Mr. Prior noted. "Among the positive factors contributing to this was an increase in wholesale revenue and a decrease in roaming expense, as well as a number of other improvements in operating expenses that were inflated during and following the Alltel transition period."

First Quarter 2012 Operating Highlights

U.S. Wireless Service Revenues

U.S. wireless service revenues include voice and data service revenues from the Company's prepaid and postpaid retail operations as well as its wholesale roaming operations. Total service revenues from the U.S. wireless businesses were $134.1 million compared to $144.4 million in the first quarter of 2011.

U.S. Retail wireless service revenues were $86.8 million, 13% below the $99.7 million reported in the 2011 first quarter. This decrease was due to the net subscriber attrition that we experienced over the past year. At the end of the 2012 first quarter, the Company had approximately 579,000 U.S. retail subscribers, a decrease of 14% from the approximately 674,000 subscribers the Company had at the end of last year's first quarter. Of the March 31, 2012 subscriber base, approximately 448,000 were postpaid subscribers and approximately 131,000 were prepaid subscribers. Additional operating data on our U.S. retail wireless business can be found in Table 4 of this release.

U.S. Wholesale wireless revenues were $47.4 million, an increase of 6% over the $44.7 million reported in the first quarter of 2011. Data revenues accounted for 48% of wholesale wireless revenues for the quarter, compared to 40% a year earlier. Data volume growth continued to offset the impact of previously-reported revenue losses in certain areas of the Company's "roam only" markets and rate reductions for voice and data traffic.

International Wireless Revenues

International wireless revenues include retail and wholesale voice and data wireless revenues from international operations in Bermuda and the Caribbean, including the U.S. Virgin Islands. Total revenues from international wireless were $19.0 million, an increase of 35% over the $14.1 million reported in the first quarter of 2011. This increase primarily resulted from the Company's merger of its Bermuda operations with one of its competitors in May 2011, and subscriber growth in the U.S. Virgin Islands.

Wireline Revenues

Wireline revenues are generated by the Company's wireline operations in Guyana, including international telephone calls into and out of that country, its integrated voice and data operations in New England and its wholesale transport operations in New York State. Total revenues from wireline were $21.5 million, an increase of 4% from the $20.7 million reported in the first quarter of 2011. The increase resulted primarily from data revenue and other wireline revenue growth in Guyana.

Reportable Operating Segments

The Company has four reportable segments: i) U.S. Wireless, ii) International Integrated Telephony, which operates in Guyana, iii) Island Wireless, which generates its revenues and has its assets located in Bermuda and the Caribbean (including the U.S. Virgin Islands) and iv) U.S. Wireline. Financial data on our reportable operating segments for the three months ended March 31, 2012 are as follows (in thousands):

	U.S. Wireless			International Integrated Telephony			Island Wireless				U.S. Wireline				Reconciling Items 1				Total
Total Revenue	$	140,882		$	23,354		$	13,824			$	4,830			$	-			$	182,890
Adjusted EBITDA		37,623			10,763			1,175				323				(4,696	)			45,188
Operating Income (Loss)		18,922			6,236			(1,611	)			(423	)			(4,965	)			18,159

Balance Sheet and Cash Flow Highlights

Cash and cash equivalents at March 31, 2012 were $53.7 million. Long-term debt was $264.1 million. For the quarter ended March 31, 2012, net cash provided by operating activities was $21.0 million and capital expenditures were $19.1 million. The Company confirms its expectation that full year 2012 capital expenditures will approximate $90 to $110 million, of which $50 to $65 million is expected to be allocated to the U.S. Wireless segment.

Conference Call Information

Atlantic Tele-Network will host a conference call on Thursday, May 3, 2012 at 10:00 a.m. Eastern Time (ET) to discuss its 2012 first quarter results. The call will be hosted by Michael Prior, President and Chief Executive Officer, and Justin Benincasa, Chief Financial Officer. The dial-in numbers are US/Canada: 877-734-4582 and International: 678-905-9376, conference ID 75565468. The conference call will also be simulcast online (listen only) at ir.atni.com. A replay of the call will be available at ir.atni.com beginning at 1:00 p.m. (ET)May 3, 2012.

About Atlantic Tele-Network

Atlantic Tele-Network, Inc. (NASDAQ:ATNI), headquartered in Beverly, Massachusetts, provides telecommunications services to rural, niche and other under-served markets and geographies in the United States, Bermuda and the Caribbean. Through our operating subsidiaries, we provide both wireless and wireline connectivity to residential and business customers, including a range of mobile wireless solutions, local exchange services and broadband internet services and are the owner and operator of terrestrial and submarine fiber optic transport systems. For more information, please visit www.atni.com.

Cautionary Language Concerning Forward Looking Statements

This press release contains forward-looking statements relating to, among other matters, our future financial performance and results of operations; the competitive environment in our key markets, demand for our services and industry trends; the outcome of regulatory matters; our continued access to the credit and capital markets; the pace of our network expansion and improvement, including our level of estimated future capital expenditures and our realization of the benefits of these investments; and management's plans and strategy for the future. These forward-looking statements are based on estimates, projections, beliefs, and assumptions and are not guarantees of future events or results. Actual future events and results could differ materially from the events and results indicated in these statements as a result of many factors, including, among others, (1) the general performance of our operations, including operating margins, wholesale revenues, and the future retention and turnover of our subscriber base; (2) our ability to maintain favorable roaming arrangements; (3) increased competition; (4) economic, political and other risks facing our foreign operations; (5) the loss of certain FCC and other licenses, USF funds or other regulatory changes affecting our businesses; (6) rapid and significant technological changes in the telecommunications industry; (7) any loss of any key members of management; (8) our reliance on a limited number of key suppliers and vendors for timely supply of equipment and services relating to our network infrastructure and retail wireless business; (9) the adequacy and expansion capabilities of our network capacity and customer service system to support our customer growth; (10) the occurrence of severe weather and natural catastrophes; (11) our continued access to capital and credit markets; and (12) our ability to realize the value that we believe exists in our businesses. These and other additional factors that may cause actual future events and results to differ materially from the events and results indicated in the forward-looking statements above are set forth more fully under Item 1A "Risk Factors" of the Company's Annual Report on Form 10-K for the year ended December 31, 2011, filed with the SEC on March 15, 2012. The Company undertakes no obligation to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors that may affect such forward-looking statements.

Use of Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this news release also contains non-GAAP financial measures. Specifically, ATN has presented Adjusted EBITDA and ARPU measures. Adjusted EBITDA is defined as net income attributable to ATN, Inc. stockholders before interest, taxes, depreciation and amortization, acquisition related charges, impairment of intangible assets, gain on disposition of long-lived assets, other income, bargain purchase gain, net income attributable to non-controlling interests, and equity in earnings of unconsolidated affiliates. ARPU, or monthly average revenue per subscriber/unit, is computed by dividing total retail service revenues per period by the weighted average number of subscribers with service during that period, and then dividing that result by the number of months in the period. The Company believes that the inclusion of these non-GAAP financial measures helps investors to gain a meaningful understanding of the Company's core operating results and enhance comparing such performance with prior periods, without the distortion of the recent increased expenses associated with the Alltel transaction. ATN's management uses these non-GAAP measures, in addition to GAAP financial measures, as the basis for measuring our core operating performance and comparing such performance to that of prior periods. The non-GAAP financial measures included in this news release are not meant to be considered superior to or a substitute for results of operations prepared in accordance with GAAP. Reconciliations of the non-GAAP financial measures used in this news release to the most directly comparable GAAP financial measures are set forth in the text of, and the accompanying tables to, this press release.

¹ See Table 5 for reconciliation of Net Income to Adjusted EBITDA.

Table 1
ATLANTIC TELE-NETWORK, INC.
Unaudited Condensed Consolidated Balance Sheets
(in Thousands)
	March 31,			December 31,
	2012			2011
Assets:
Cash and Cash Equivalents	$	53,693		$	48,735
Other Current Assets		139,550			135,165
Total Current Assets		193,243			183,900
Property, Plant and Equipment, net		469,972			483,203
Goodwill and Other Intangible Assets, net		184,496			186,871
Other Assets		23,163			19,757
Total Assets	$	870,874		$	873,731
Liabilities and Stockholders' Equity:
Current Portion of Long Term Debt	$	25,068		$	25,068
Other Current Liabilities		106,205			120,710
Total Current Liabilities		131,273			145,778
Long Term Debt, Net of Current Portion		264,071			257,146
Other Liabilities		116,325			118,277
Total Liabilities		511,669			521,201
Total Atlantic Tele-Network, Inc.'s Stockholders' Equity		301,299			294,266
Non-Controlling Interests		57,906			58,264
Total Equity		359,205			352,530
Total Liabilities and Stockholders' Equity	$	870,874		$	873,731

Table 2
ATLANTIC TELE-NETWORK, INC.
Unaudited Condensed Consolidated Statements of Operations
(in Thousands, Except per Share Data)
	Three Months Ended
	March 31,
	2012				2011 (a)
Revenues:
U.S. Wireless:
Retail	$	86,750			$	99,669
Wholesale		47,384				44,697
International Wireless		18,955				14,063
Wireline		21,548				20,670
Equipment and Other		8,253				9,055
Total Revenue		182,890				188,154
Operating Expenses:
Termination and Access Fees		40,483				51,774
Engineering and Operations		21,336				21,905
Sales, Marketing and Customer Service		32,175				31,830
Equipment Expense		20,350				21,582
General and Administrative		23,358				25,615
Acquisition-Related Charges		5				250
Depreciation and Amortization		27,024				24,808
Total Operating Expenses		164,731				177,764
Operating Income		18,159				10,390
Other Income (Expense):
Interest Income (Expense), net		(3,879	)			(3,692	)
Other Income		36				595
Equity in Earnings of Unconsolidated Affiliates		1,402				516
Other Income (Expense), net		(2,441	)			(2,581	)
Income Before Income Taxes		15,718				7,809
Income Taxes		6,781				3,830
Net Income		8,937				3,979
Net Loss (Income) Attributable to Non-Controlling Interests, net of tax		384				518
Net Income Attributable to Atlantic Tele-Network, Inc. Stockholders	$	9,321			$	4,497
Net Income Per Weighted Average Share Attributable to Atlantic Tele-Network, Inc. Stockholders:
Basic	$	0.60			$	0.29
Diluted	$	0.60			$	0.29
Weighted Average Common Shares Outstanding:
Basic		15,456				15,384
Diluted		15,554				15,485
a) Certain reclassifications have been made to prior period amounts to conform to the current presentation

Table 3
ATLANTIC TELE-NETWORK, INC.
Unaudited Condensed Consolidated Cash Flow Statement
(in Thousands)
	Three Months Ended March 31,
	2012				2011
Net Income	$	8,937			$	3,979
Depreciation and Amortization		27,024				24,808
Change in Working Capital		(18,407	)			(12,772	)
Other		3,474				4,979
Net Cash Provided by Operating Activities		21,028				20,994
Capital Expenditures		(19,055	)			(16,270	)
Other		-				467
Net Cash Used by Investing Activities		(19,055	)			(15,803	)
Borrowings Under Credit Facility		12,846				11,000
Principal Repayments of Long Term Debt		(6,267	)			(3,048	)
Dividends Paid on Common Stock		(3,553	)			(3,384	)
Distributions to Non-Controlling Interests		(424	)			(462	)
Other		383				416
Net Cash Used by Financing Activities		2,985				4,522
Net Change in Cash and Cash Equivalents		4,958				9,713
Cash and Cash Equivalents, Beginning of Period		48,735				37,330
Cash and Cash Equivalents, End of Period	$	53,693			$	47,043

Table 4
ATLANTIC TELE-NETWORK, INC.
Operating Data for U.S. Retail Wireless Operations
Three Months Ended:		MAR 2011		JUN 2011		SEP 2011		DEC 20111		MAR 2012
		717,745		674,080		638,839		592,620		579,716
Beginning Subscribers
Prepay		194,795		169,673		145,854		123,157		121,688
Postpay		522,950		504,407		492,985		469,463		458,028
Gross Additions		46,680		38,859		30,018		46,757		54,837
Prepay		19,922		13,951		9,784		22,639		32,372
Postpay		26,758		24,908		20,234		24,118		22,465
Net Additions		(43,665)		(35,241)		(46,219)		(12,904)		(1,131)
Prepay		(25,122)		(23,819)		(22,697)		(1,469)		9,293
Postpay		(18,543)		(11,422)		(23,522)		(11,435)		(10,424)
Ending Subscribers		674,080		638,839		592,620		579,716		578,585
Prepay		169,673		145,854		123,157		121,688		130,981
Postpay		504,407		492,985		469,463		458,028		447,604

ATLANTIC TELE-NETWORK, INC.
U.S. Retail Wireless Operations Key Performance Indicators
Three Months Ended:		MAR 2011		JUN 2011		SEP 2011		DEC 2011 1		MAR 2012
Average Subscribers (weighted monthly)		695,399		655,292		618,862		583,470		578,531
Monthly Average Revenues per Subscriber/Unit (ARPU)
● Subscriber ARPU		$47.23		$47.90		$47.51		$48.56		$49.36
● Postpaid Subscriber ARPU		$53.78		$54.47		$52.68		$54.43		$54.15
Monthly Postpay Subscriber Churn		2.93%		2.42%		2.97%		2.55%		2.41%
Monthly Blended Subscriber Churn		4.29%		3.73%		4.05%		3.40%		3.22%

¹ — Certain amounts for the three months ended December 31, 2011 have been adjusted from amounts previously reported.

Table 5
ATLANTIC TELE-NETWORK, INC.
Reconciliation of Non-GAAP Measures
(In Thousands)
Reconciliation of Net Income to Adjusted EBITDA for the Three Months Ended March 31, 2011 and 2012
	Three Months Ended March 31, 2011
	U.S Wireless			International Integrated Telephony			U.S. Wireline				Island Wireless				Reconciling Items				Total
Net Income Attributable to Atlantic Tele-Network, Inc. Stockholders																			$	4,497
Net Income Attributable to Non-Controlling Interests, net of tax																				(518	)
Income Taxes																				3,830
Equity in Earnings of Unconsolidated Affiliates																				(516	)
Other Income																				(595	)
Interest Expense, net																				3,692
Operating Income (Loss)	$	10,427		$	6,244		$	(40	)		$	(1,663	)		$	(4,578	)		$	10,390
Depreciation and Amortization		17,408			4,547			786				1,870				197				24,808
Acquisition-Related Charges		-			-			-				-				250				250
Adjusted EBITDA	$	27,835		$	10,791		$	746			$	207			$	(4,131	)		$	35,448
	Three Months Ended March 31, 2012
	U.S Wireless			International Integrated Telephony			U.S. Wireline				Island Wireless				Reconciling Items				Total
Net Income Attributable to Atlantic Tele-Network, Inc. Stockholders																			$	9,321
Net Loss Attributable to Non-Controlling Interests, net of tax																				(384	)
Income Taxes																				6,781
Equity in Earnings of Unconsolidated Affiliates																				(1,402	)
Other Income																				(36	)
Interest Expense, net																				3,879
Operating Income (Loss)	$	18,922		$	6,236		$	(423	)		$	(1,611	)		$	(4,965	)		$	18,159
Depreciation and Amortization		18,701			4,527			746				2,786				264				27,024
Acquisition-Related Charges		-			-			-				-				5				5
Adjusted EBITDA	$	37,623		$	10,763		$	323			$	1,175			$	(4,696	)		$	45,188

Atlantic Tele-Network, Inc.
Michael T. Prior, 978-619-1300
Chief Executive Officer
or
Justin D. Benincasa, 978-619-1300
Chief Financial Officer

Source: Atlantic Tele-Network, Inc.

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