June 9, 2005

FOR IMMEDIATE RELEASE CONTACT:
Karen P. Powell, Public Relations Manager
Skyline Telephone Membership Corporation
(336) 982-3800, ext. 6117
e-mail: karen.powell@skyline.org

Revolving Loan Fund Boosts Area Economic Development Efforts

WEST JEFFERSON, N.C.--Two area organizations have been named the recipients of special zero interest loans through SkyLine Membership Corporation’s Revolving Loan Fund (RLF). Sugar Grove Developmental Day School (SGDDS) in Watauga County has received a $25,000 loan to purchase needed playground equipment, and Mount Jefferson Land Management, which leases facility space to American Emergency Vehicles (AEV) in Jefferson, has received a $125,000 loan to construct a new paint facility for AEV. The loan program was established in 1994 when SkyLine applied for a grant through the then-Rural Electrification Administration (REA) to establish a revolving loan fund to support economic development projects throughout its service area. The initial grant of $400,000 required a 20-percent match, and the first recipient of this loan was the Alleghany Economic Development Commission, which needed site preparation support for the county’s new Industrial Park. “ SkyLine is pleased to provide financial assistance to these two organizations through our Revolving Loan Fund program,” said John Dixon, SkyLine Chief Executive Officer (CEO). “Our support of Sugar Grove Developmental Day School in western Watauga County will help address a continuing need for developmental day care services for working families.”

Pictured above in the check presentation to the Sugar Grove Developmental Day School are Karen James, Sugar Grove Developmental Day School Treasurer, SkyLine Chief Operating Officer Sandie Bower, SkyLine Board Member Joe McNeil and children from the school: Brandon, Lilly, Riley,Cade and Joey.

Sugar Grove Developmental Day School is the former Valle Crucis Day School, which was founded in 1982 by a group of parents who needed a child care center located in rural western Watauga County. It moved to its current location at the former Cove Creek Elementary School in Sugar Grove, was renamed the Sugar Grove Developmental Day School and officially opened in June 2004. The School cares for normal and at-risk children, from infants to kindergarten in a county where there is a severe shortage of daycare facilities, particularly for infants. The RLF loan will go toward the purchase of new playground equipment for the School. " Thanks to SkyLine, our families, staff, board and community members, SGDDS has and continues to create a high quality, safe, fun and learning environment for the children who spend their days with us,” said C. Hunter Wall, School Director. “Without the loan from SkyLine, we would have not been able to design and implement a playground that is enjoyed by children eight weeks to six years old."

SkyLine’s loan to Mount Jefferson Land Management (MJLM) will benefit American Emergency Vehicles (AEV), a local producer of high-performance emergency vehicles which is undergoing a major expansion to its existing facility in Ashe County. “AEV has strengthened the industrial base in Ashe County over the last 15 years, and we are pleased to support its efforts to expand operations that will result in additional jobs for area residents,” said SkyLine CEO John Dixon. The expansion includes approximately $2 million in investment and will result in the addition of 30 to 50 new jobs in its production area. The new facility is a 28,000-square-foot paint building and will alleviate a significant production bottleneck and create room within the existing facility to add assembly capacity. The RLF Loan from SkyLine will help to purchase paint equipment for the new facility. “ American Emergency Vehicles is very excited about completing our paint facility expansion, and we greatly appreciate the support that we have received from the community, and especially from Skyline Membership Corporation and Blue Ridge Electric,” said Greg Warmuth, AEV Vice-President of Finance.

On behalf of Mount Jefferson Land Management, Greg Warmuth, Vice-President of Finance with American Emergency Vehicles (AEV), accepts the loan award from SkyLine Chief Executive Officer John Dixon and Chief Operating Officer Sandie Bower.

“ With a total investment in our new facility of over $2.0 million, we needed help. This investment is not just an investment in our company, but an investment in the community as a whole. When AEV is successful, our employees are successful, and the Ashe County region also shares in our success,” Warmuth said.
A key component of the selection process for these loans is the organization’s ability to create or maintain jobs for rural areas. Loans also may support the construction and installation of needed community facilities or services that support rural economic development, or support new business development or existing business expansion within SkyLine’s service area. Other previous recipients of SkyLine RLF loans include the Cove Creek Preservation and Development, Inc. in Watauga County and the Alleghany Economic Development Commission to support site development activities for the Magnolia Manufacturing, Inc. project. SkyLine is a member-owned cooperative, providing a variety of telecommunications services to its members in Alleghany, Ashe, Avery and Watauga counties in North Carolina, and Johnson County in east Tennessee. Its wholly-owned subsidiary, SkyBest Communications, offers de-regulated products and services, including local calling services, business systems solutions, broadband Internet services and long distance.