Shentel selects Alcatel-Lucent to upgrade network for wireless broadband services in Virginia, West Virginia, Maryland and Pennsylvania

Deployment includes CDMA2000 1xEV-DO Revision A technology and IP backhaul solution

Paris, August 2008 — Shenandoah Telecommunications Company (Shentel) (NASDAQ: SHEN) and Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced an agreement valued at more than USD 30 million for equipment, services and software to upgrade Shenandoah Personal Communications Company’s network in Virginia, West Virginia, Maryland and Pennsylvania.

The network upgrade includes the deployment of third-generation (3G) CDMA2000® 1xEV-DO Revision A (Rev. A) technology, which will enable Shenandoah Personal Communications Company, a Sprint PCS Affiliate of Sprint Nextel, to provide an enhanced mobile data customer experience. This upgrade will give Shentel’s PCS customers increased data capacity and speed for faster uploads and downloads, as well as new, enhanced mobile broadband data services, including mobile video telephony, high-quality music and other multimedia applications. To further expand voice and data coverage and capacity throughout the network, Shentel also will deploy new cell sites in the upgraded network and increase existing cell site capacity.

“Advances in technology are moving faster than ever before, and Shentel is committed to continuing to provide customers the progressive telecommunications services they need and expect,” said Chris French, President of Shentel. “With this upgrade to our network, we will be able to give our customers access to some of the most advanced wireless technology available today, technology that will provide unequalled quality and reliability for both their voice and data communications.

In addition, Shentel will deploy Alcatel-Lucent’s IP backhaul solution throughout their network to increase network capacity and reduce operational expenses. Installation, engineering and network integration work will be done by Alcatel-Lucent.

“Alcatel-Lucent has been a key infrastructure provider to Shentel and this agreement underscores the confidence they have in us to help lay the groundwork for an all-IP network in the future,” said Phillip Rosenthall, vice president of sales for Alcatel-Lucent. “This agreement is another illustration of Alcatel-Lucent’s commitment to our customers and to CDMA technology.”

EV-DO Rev. A continues the evolution of CDMA2000 technology, bringing increases in efficiency, data speeds and capacity to existing CDMA2000 1X and 1xEV-DO networks.

CDMA2000 is a registered trademark of the Telecommunications Industry Association.