SOURCE: D & E Communications, Inc.

October 25, 2006 10:30 ET

D&E Communications Receives COSTARS Vendor Approval

EPHRATA, PA -- (MARKET WIRE) -- October 25, 2006 -- D&E Communications (NASDAQ: DECC) announced today that it has received approval from the Pennsylvania Department of General Services for the state's Cooperative Sourcing to Achieve Reduction in Spend (COSTARS) program as a qualified vendor. COSTARS is designed to assist local governments and other nonprofit agencies to reduce their cost of doing business.

As a qualified vendor in the COSTARS program, D&E Communications' products and services are now available to a list of 3500 COSTARS members, or local procurement units, in the Commonwealth of Pennsylvania. COSTARS members include any public authority or tax exempt, nonprofit educational or public health institution or organization, including nonprofit fire, rescue and ambulance companies, as well as other entities expending public funds for the procurement of supplies and services. COSTARS members also include several state-affiliated entities.

D&E Communications completed a rigorous approval process through the Department of General Services prior to being accepted as a vendor in the COSTARS program. Once approved as a provider in the COSTARS program, local procurement units can come directly to qualified vendors like D&E Communications while satisfying procurement guidelines.

"D&E Communications built its business and its reputation one relationship at a time," said Jim Morozzi, President and CEO of D&E Communications. "Our approval as a qualified vendor in the COSTARS program allows us to maintain existing relationships with our governmental and nonprofit clients and provides the opportunity to develop new partnerships."

Morozzi noted that the COSTARS program saves time and money for its members by eliminating the need for a lengthy and costly RFP process, resulting in a lower price for goods purchased and faster service, all from a qualified vendor. "D&E Communications is a perfect fit for the COSTARS program," added Morozzi, "because of our ability to offer valuable communications services. We look forward to working with COSTARS members."

D&E is an integrated communications provider offering high-speed data, Internet access, local and long distance telephone, data networking, network management and security, and video services. Based in Lancaster County, D&E has been serving communities in central Pennsylvania for more than 100 years. For more information, visit www.decommunications.com.

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