Dear Customer:

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 July 31, 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.

This new Long Distance Services Agreement between you and Horry Telephone Long Distance, Inc. (HTLD) is attached for your information and review. 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 should be retained for your records. For your convenience, a model of this agreement will also be posted on the Company's website.

The Agreement includes a summary of the current terms and conditions contained in the HTLD Rates, Terms and Conditions Documents which describes each of the many available services and any special terms or conditions that may apply. These Rates, Terms and Conditions Documents are available for your inspection at the Company Headquarters, from any customer service representative, and will also be available on the Company's website.

Attached to this letter is a list of frequently asked questions regarding the detariffing of state-to-state and international long distance services and the related consumer benefits. Long distance services for calling within the state will continue to be provided under tariff.

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 your account representative at phone 843-365-2154 for prompt, courteous service.

Sincerely,

Director of Operations