CORPORATE FINANCE

Strategic Analysis

IOWA NETWORK SERVICES, INC.

Des Moines, IA




Majority Shareholder of Iowa Telecom, Inc.
retained the undersigned to evaluate
an initial public offering proposal present
by CIBC World Markets, Inc.

Iowa Network Services, Inc.

A major underwriter presented Iowa Telecom, a provider of telecommunications services, with an innovatived IPO proposal. The Company's majority stockholder, Iowa Network Services (INS), another telecom company operating mainly in rural Iowa, sought professional financial assistance in evaluating the proposal. After interviewing several investment banking firms, INS management retained Carreden Group.

Given the equity market forces that existed at the time, the IPO financing proposal was presented with considerable urgency that required Carreden to submit its evaluation in not more than 10 business days from the time the firm was formally engaged by INS. Within the INS board's deadline, Carreden submitted its analysis recommending Iowa Telecom should pursue the IPO proposal, which it did.