The Federal Communications Commission (FCC) recently issued a Detariffing Order, which changes the administrative arrangements under which interstate (state-to-state) and international long distance services of all companies are provided to customers. Effective August 1, 2001, these long distance services will be provided to customers using a Long Distance Services Agreement (Agreement) rather than on the basis of filed tariffs with the FCC. This change is in line with providing competitive services similar to other business services where agreements are utilized. Detariffing will not affect the service you receive, the current price you pay or your ability to change your service-in other words, state-to-state and international long distance services will continue to be provided at the same rates, with the same terms and conditions as in the past. If in the future the rates, terms or conditions change, we will provide notice at least fifteen days prior to the effective date of any change.

Long distance services for calling within the state will continue to be provided under tariff.

This new Long Distance Services Agreement between you and Coastal Long Distance Services (CLDS) is posted on the Company's website at www.coastalnow.com. You accept the terms and conditions simply by continuing to use and pay for any state-to-state and international long distance services.

The Agreement includes a summary of the current terms and conditions contained in the CLDS Rates, Terms and Conditions Guidelines which describes each of the many available services and any special terms or conditions that may apply. These Rates, Terms and Conditions Guidelines are available for your inspection at any of our offices, 115 Patriots Trail in Hinesville, Georgia, Building 132, Cramer Avenue on Fort Stewart, Georgia and 9899 Ford Avenue in Richmond Hill, Georgia and will also be available on the Company's website at www.coastalnow.com.

Again, the new Agreement will not affect the service you receive, the price you pay or your ability to change your service. Your state-to-state and international long distance services will continue to be provided at the same rates, with the same terms and conditions as in the past. Any questions regarding this information or the administrative changes should be directed to one of our Customer Service Representatives by calling 369-9000, 756-9000 or our toll-free number 877-702-3030.