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Exhibit 99.1
Warwick Valley Telephone Reports Financial Results for the Three Months Ended March 31, 2005
Warwick,
N.Y. — (MARKET WIRE) — October 25, 2005 — Warwick
Valley Telephone Company (Nasdaq: WWVYE)
announced today their financial results as of March 31, 2005. Michael Cutler, Chief Financial
Officer, reported that Net Income for the three month period decreased 34% to $1,222 million from
$1,858 million for the same period in 2004.
Operating revenues decreased 4% in comparison to the same period in 2004 primarily due to a
reduction in network access service revenues largely from lower local switching support revenues
received from the Universal Service Fund, a decline in switched access minutes, and a decline in other
services and sales revenues resulting from lower rates mandated by the FCC for reciprocal
compensation and an overall decrease in sales of other non-regulated ancillary services.
Total operating expenses increased 12% in 2005 as compared to the same period in 2004
primarily due to increased professional and consulting fees associated with Section 404 of the
Sarbanes-Oxley Act, which relates to internal control over financial reporting, and to higher
depreciation expense due to plant additions to accommodate the growing demand for Internet based
technologies, such as DSL and Video.
Other income (expenses) increased 4% in 2005 as compared to 2004 mainly due to the continued
successful performance of the Orange County-Poughkeepsie Limited Partnership.
Earnings per share were $0.23 as compared to $0.34 for 2004.
Warwick Valley Telephone provides Local, Toll, Cellular, Internet, Video and
other communications services in Southeastern New York and Northwestern New Jersey.