Sioux Falls, SD – January 9, 2007 – Knology Inc. (NASDAQ:  KNOL) and PrairieWave Communications, Inc. of Sioux Falls, SD, have announced an agreement to combine the two companies in a merger. 

Under the terms of the agreement approved by the boards of directors of both companies, Knology will pay approximately $255 million upon closing.  The transaction is subject to certain state and federal regulatory approvals and is expected to be completed by June 30, 2007.

Rodger Johnson, President and CEO of Knology said, “This agreement is a natural combination of two solid, well-run companies.  It is a part of a logical expansion that will strengthen our regional presence in middle America and improve our service offerings.  Both companies offer a strong telecommunications history, a consistent value system, commitment to our customers and employees, and industry leadership.  We are looking forward to a bright future.”

Bruce Herman, President and CEO of PrairieWave Communications said, “This was the right time for this merger and will benefit our employees, our customers and our investors. Knology offered us a unique way to maintain our local presence, which is extremely important to us, while offering us the opportunity to expand into new areas.  The combination and collaboration of these two companies will help strengthen our business and provide more resources to better serve our customers.”

In addition to its strong telecommunications presence, the combined company will be among the 20 largest cable companies in the nation.  Knology has indicated that PrairieWave will remain headquartered in South Dakota and continue its strong local presence in the communities it serves, as well as maintain a continued commitment to community involvement and local sponsorships.

Daniels & Associates, L.P. acted as advisor to PrairieWave for the transaction.

ABOUT KNOLOGY 
Knology Inc. (NASDAQ: KNOL), headquartered in West Point, Georgia, is a leading provider of interactive communications and entertainment services in the Southeast. Knology serves both residential and business customers with one of the most technologically advanced broadband networks in the country. Innovative offerings include over 200 channels of digital cable TV, local and long distance digital telephone service with the latest enhanced voice messaging features, and high-speed Internet access, which supplies IP architecture with segmented voice and data bandwidth, and Managed Integrated Network Solutions (MATRIX), and integrated IP-based technology which converges data and voice. For more information, please visit www.knology.com. 

ABOUT PRAIRIEWAVE COMMUNICATIONS

PrairieWave Communications provides telephone, cable television, Internet, phone directory and cable advertising services for residential and business customers in South Dakota, Minnesota and Iowa. PrairieWave is committed to building and operating broadband telecommunications networks in rural and mid-size communities. With its proprietary network, approximately 400 employees and 16 local offices, PrairieWave is dedicated to enhancing the quality of life for its customers and supporting the economic development of their communities by providing reasonably priced, advanced communications services to their homes and businesses. For more information, visit www.prairiewave.com.

CAUTION REGARDING FORWARD LOOKING STATEMENTS

Some of the statements in this news release include statements about our future plans and expectations. Statements that are not historical facts are "forward-looking statements" for the purpose of the safe harbor provided by Section 21E of the Exchange Act and Section 27A of the Securities Act. Such statements include projections of financial and operational results and goals, including revenue, EBITDA, profitability, savings and cash, as well as statements about future product and service offerings, service quality, development plans, and employee opportunities. These forward-looking statements are subject to known as well as unknown risks and uncertainties that may cause actual results to differ materially from our expectations. Our expectations are based on various factors and assumptions and reflect only our predictions. Factors that could cause actual results to differ materially from forward-looking statements include technological, regulatory, public policy or other developments in our industry, availability and adequacy of capital resources, current and future economic conditions, the existence of strategic alliances, our ability to generate cash, our ability to implement process and network improvements, our ability to attract and retain customers, our ability to migrate traffic to appropriate platforms and changes in the competitive climate in which we operate. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.

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