Cavalier Telephone and TV and Talk America announced the closing of their merger on schedule as planned. At the shareholders meeting held today, Talk America shareholders overwhelmingly approved the $8.10 per share cash offer by Cavalier with 99% of the votes cast in favor of the deal. Cavalier consummated the merger shortly thereafter.

This combination creates one of the largest full service competitive communications providers in the U.S. with 2007 projected revenue of $750M and $150M in operating cash flow. The "new"Cavalier will operate under the Cavalier Telephone and TV moniker and has over 550,000 residential and 85,000 business customers. Cavalier has vaulted to national prominence in the competitive telecom field by leveraging its billion dollar fiber network. Cavalier business and residential customers receive the nation’s fastest broadband access (15mbs downloads) at about half the price of what cable and monopoly telephone companies charge. Cavalier has already begun expanding its fiber network throughout the Talk America Ohio, Michigan and selected Southeast regions.

"No one can boast a more diverse suite of competitive product offerings over a broader geographic footprint than Cavalier. We serve the entire spectrum of communications customers from large carriers that utilize our high quality fiber, to businesses who enjoy our full feature set, to residential customers who find great value in our attractively-priced voice, high speed internet and IPTV service bundles,"commented Brad Evans, Executive Chairman of Cavalier. "With this merger Cavalier will now be able to provide its revolutionary new "IPTV"service to millions of additional cable customers. This week’s passage of the Michigan video franchising reform bill coincides perfectly with our expansion plans"Mr. Evans continued.

Ed Meyercord, the Chief Executive Officer of Cavalier commented, "Cavalier will capitalize on the strengths of both companies to take share in our markets. The combination of industry leading customer provisioning and servicing systems, over 2000 dedicated employees, unparalleled network technology, with a cost conscious entrepreneurial mindset ensures Cavalier will be a major player in the telecommunications arena."