Final 2013 annual report by Robert Gilbert

focused on the future 201 3 AN NUA L R EP OR T

Growth takes focus and a clear path forward. Whether we’re serving a local business or a multinational enterprise, our focus remains the same: to envision and deliver customer delight. We accomplish this by prioritizing our time and investing our resources in ways that best serve our customers—now and into the future. After all, if our customers are delighted, our business will naturally grow and prosper. One of our assets in serving our customers is our local presence. The majority of our more than 350 dedicated employees reside in the communities we serve. Living and working among our customers makes it easy to recognize the important role we play both as a service provider delivering products and services that promote business and enable commerce, and as an employer fueling the regional economy and supporting local events and charities.

Our company is owned by Quadrangle Group, a premier private equity firm that makes long-term investments in companies with compelling growth opportunities and superior management. Our Board includes Peter Ezersky, Managing Principal, Quadrangle; Michael Gottdenker, our Chairman and CEO; Michael Huber, President and Managing Principal, Quadrangle; Steve McCall, Co-founder, Blackpoint Equity; Doni Perl, Vice President, Quadrangle; and Tom Reed, President, Morningstar Management.

We’re focused on our customers, ensuring they are receiving the best

We’re focused on growth, continuing to make significant investments to

We’re focused on our community, improving the lives of our friends

and most reliable services possible.

grow our network, our service capabilities and our company.

and neighbors, and the quality of life throughout the communities we serve.

2013 ANNUAL REPORT

To envision and deliver customer delight year after year, for more than 60 years, takes focus. It’s a mission we’ve been committed to carrying forward as we’ve welcomed new customers, expanded into new areas and adopted new technologies.

2013 ANNUAL REPORT

2013 was another busy and successful year at Hargray. We set a number of goals as we began the year, mostly focused on additional network investments to enhance our current product set. We also completed the acquisition of iTech, a Savannah-based managed-services company, and successfully re-financed our debt in an offering that was more than 50% over-subscribed — an external validation of our industry-leading financial results and bright future prospects.

Our customers responded to our network investments, subscribing to ever-increasing data speeds and bandwidth. During 2013, our High Speed Internet revenue increased by a staggering 17% as our residential and commercial customers purchased more bandwidth made possible by these network investments. We secured a long-term contract with T-Mobile to connect its cell phone towers with fiber, making us the provider of choice in our territory for all four major national wireless carriers. And we continued to rapidly add major enterprise customers to our recently completed metro-fiber network in Savannah, with 75 customers (including Gulfstream, the Savannah College of Art and Design, St. Joseph’s/Candler Hospital, and most recently the Cities of Savannah, Pooler and Port Wentworth) and $2 million per year in revenue under long-term contracts. Finally, our acquisition of iTech enabled us to combine iTech’s products and expertise with our network and data center to begin offering a complete suite of Data

Center & Managed Services to our enterprise customers. We will be launching hosted telephony and server products in 2014, which will enable our enterprise customers to focus on their core businesses while ensuring their mission-critical data and applications are securely managed by expert engineers and technicians in our data center. In addition to network investments to enhance our High Speed Internet and enterprise offerings, the past year was marked by several upgrades to our residential television product. We successfully launched Multiroom DVR, introduced an enhanced guide and added more high-definition channels. In addition to these television upgrades, we also took important steps in preparation for transitioning our television product to 100% digital in 2014, which will not only improve picture quality and viewing experience for our customers, but also free up substantial amounts of bandwidth, allowing us to add more HD channels, enhance our On-Demand offerings and further increase Internet speeds. To enable this, we added high-definition Digital Transport Adapters (DTA) to our product offerings. DTAs allow customers to receive high-definition programming without requiring a Set Top Box. Strategically, this product will also open up new market possibilities, including providing a pre-pay television product for creditchallenged customers.

We made another important investment in 2013 that was not in our network: We launched our locally based Technical Assistance Center, which provides technical support for all products. After several years of outsourcing our Internet help desk function, we decided to bring that expertise in house. The result has been a measurable improvement in customer service, including quicker response times and higher first-call resolution of issues. All of our investments in network and technology would be for naught but for our tremendously dedicated and hardworking colleagues who begin and end each day striving to fulfill our mission to envision and deliver customer delight. As we do each year, in 2013 we honored several colleagues who went above and beyond as quarterly MVPs. From that group, we selected construction engineer Gary DeLong as the 2013 recipient of the Hargray Award, which is given to the employee who most exemplifies our mission. Gary has been with Hargray for more than 30 years and among other things was instrumental in our successful expansion into Savannah. As we look back on 2013, we are grateful for the support of our customers and colleagues. We express this gratitude in a number of ways, including investing our time and resources in a variety of local events and philanthropic endeavors. We continue to administer the Caring Coins program in which many of our customers generously agree to round up their bill to the closest dollar, with the proceeds going to a variety of local charities. We continue to lead with sponsorship roles in a variety of events that make a difference in our community. This year, one of our executives, Chris McCorkendale, served as the Chairman of the United Way of the Lowcountry, which supports more than 30 partner agencies and more than 40 charitable programs. And finally, in 2013 we began a program we call Heroes at Hargray, in which we provide employment opportunities for military veterans who are entering the private workforce after years of serving our country (see Page 19).

As we move into 2014 with a myriad of opportunities in front of us, we would like to thank those who enabled us to get to this place, including those who served in our armed forces (our “heroes”). We are humbled by their sacrifices and will continue to look for ways to ease their transition back to civilian life. We would also like to thank our business owners and residential customers who have supported our local company. Michael Gottdenker Chairman & Chief Executive Officer

2013 ANNUAL REPORT

With great goals came great outcomes in 2013. We continued to invest in our network and successfully expanded our territory to delight even more customers.

FOCUSED ON OUR CUSTOMERS: HIGH SPEED INTERNET INCREASES

Hargray’s network investments over the past 5 years have enabled us to stay at the forefront of the industry. (2009 – 2013) $40

$30

During 2013, our newest residential high speed Internet products, including 30/5 Mbps and 50/5 Mbps, were extremely popular. And as of the end of 2013, 28% of our residential customers subscribed to 15 Mbps or higher, up from 7% just two years ago.

Dollars in Millions

focused on our customers

Hargray Network Capital Investment

The exponential growth in demand for faster Internet has required us to continue to invest heavily in our network. By increasing our core capacity and relentlessly extending the reach of our fiber, we have continued to offer the fastest and most reliable Internet products in the region we serve.

$20

$10

Demand for bandwidth from commercial enterprises is even more relentless. Companies not only require high upload and download speeds, but often prefer dedicated symmetrical Internet services (e.g., 1 Gbps x 1 Gbps) and/or need to connect multiple office locations across a dedicated, fiberbased metro-Ethernet network. An example of this is the Beaufort County School District, which selected Hargray to connect its 34 schools and administrative buildings throughout the county to a single, dedicated fiber network.

2009

2010

2011

2012

2013

Over the past 5 years, we’ve invested more than $130 million into our network to ensure our services remain competitive and we’re continuing to offer our customers the speeds they need.

Percentage of Residential High Speed Internet customers with 15 Mbps or higher

2012

28%

20% 2011 7% We continue to see a steady increase in the number of [residential] Internet customers subscribing to advanced speeds of 15 Mbps and higher as demand for bandwidth continues to double approximately every two years.

2013 ANNUAL REPORT

2013

FOCUSED ON OUR CUSTOMERS: NEW TV PRODUCTS

Over the past year, Hargray launched several new television products and upgrades for customers throughout its service area.

F O C U S E D O N O U R C U S T O M E R S : D TA

As a part of our commitment to provide customers with superior products and services, Hargray will transition in 2014 to 100% digital delivery of our television product. The transition will enhance picture and audio quality, as well as allow us to offer a wider range of services in the future, including more popular channels in HD, new sports programming packages, more movies and shows available through Hargray On-Demand, and faster Internet speeds. In support of this transition, we began offering a Digital Transport Adapter (DTA) to our customers, allowing them to receive a full channel line-up in high-definition rather than connecting a television directly to a cable outlet in their homes. With the addition of the DTA to our product line, we can now offer customers a high-quality, lower-cost digital television option, as well as an alternative for our customers who do not want a more bulky Set Top Box. A DTA or a Set Top Box will be required to receive our television signal once we fully transition to digital during 2014.

One of the most popular new features is Multiroom DVR, which makes it easy to enjoy the best live, recorded and On-Demand programming from anywhere in their homes. In addition, the improved interactive channel guide with intuitive navigation, enhanced appearance and detailed program information, as well as the enhanced On-Demand storefront with poster art, has vastly improved our customersâ&#x20AC;&#x2122; experience. These upgrades will ensure our digital television customers have access to the best products and features available. Hargray Technician LJ Grant

2013 ANNUAL REPORT

DTA Video Tutorial

F O C U S E D O N O U R C U S T O M E R S : C U S T O M E R O U TA G E N O T I F I C AT I O N

Despite all that we do to ensure the reliability of our services, inevitably throughout the year events beyond our control periodically disrupt our services. Most frequently, this is the result of non-Hargray-related road construction, automobile accidents and weather (e.g., lightning). When these events occur, we want to be sure our customers are immediately notified and kept informed. Notifications are triggered when a customer-impacting event is detected by our Network Operations Center. Those customers who are identified as potentially impacted receive an email notification alerting them of the service outage, the reasons for the outage and the expected resolution time, as well as a link to real-time information that will be updated throughout the outage event until it is resolved. We look forward to receiving feedback from our customers about how we can make this outage notification system even more relevant and customer-friendly.

This past year, we decided to expand our locally based customer care team with the addition of a Technical Assistance Center for High Speed Internet customers. Adding this customer service function, which previously had been outsourced to a national firm, means Hargrayâ&#x20AC;&#x2122;s High Speed Internet customers have access to local experts 24 hours a day, seven days a week. This decision is quite unusual for a company of our size in our industry as it requires that we overcome challenges regarding cost and recruiting/developing local talent; however, we believe enhancing our front-line customer support is directly in line with our mission of envisioning and delivering customer delight. So far, customer feedback has been overwhelmingly positive, with transactional survey scores showing nearly 50% improvement since launching the Technical Assistance Center in early fall of 2013. In addition, the move created almost 20 brand new jobs in our community.

Customer Service Representative Micah Ham

2013 ANNUAL REPORT

As part of our ongoing commitment to improving customer service, Hargray implemented an automated customer notification system that provides useful information in a simple and timely manner. The notification system assures that all of our customers are kept informed in the case of unplanned outages, service issues or emergencies.

FOCUSED ON OUR CUSTOMERS: IHD IN-SOURCING

FOCUSED ON OUR CUSTOMERS: TRANSACTIONAL SURVEY

As part of an ongoing focus to enhance and improve customer experience in 2013, Hargray invested in a dynamic customer engagement platform that provides real-time feedback and enhances the “voice of the customer” within our organization.

The direct customer feedback provided through this new program is paramount to achieving our mission of envisioning and delivering customer delight. It allows us to hear directly from our customers in both broad and specific ways, recognize employes who are doing a great

2013 ANNUAL REPORT

Over 8,000 Surveys Completed

122 emails sent to The Buck Stops Here in 2013 At Hargray, we encourage our customers to reach out directly to our CEO via TheBuckStopsHere@hargray.com, to tell us about their experiences—both good and bad—so that we may learn from our mistakes and continue to improve our customers’ experience. We greatly appreciate the time customers take to share with us their experiences. During 2013, we received a total of 122 emails to this address. Similar to past years, about a quarter of those emails were complimentary, which we can use to recognize outstanding service. Many of the rest provide great opportunities to coach employees and/or identify systemic issues that might have led to an unpleasant customer experience. Below are several examples of emails we received during 2013.

job, change our systems and processes to remedy recurring issues, and immediately address any poor experiences. The program has been integrated into all customer-facing departments, including our new Technical Assistance Center and all retail locations.

For the past couple of weeks, our cable signal intermittently freezes, loses sound and picture. This is very frustrating. We have endured these problems for at least 5yrs with numerous service calls. This condition always seems to return. My neighbor has complained of the same issue. We have recently had problems with intermittent Internet and phone service. Is this due to antiquated equipment, in the home or in between? Is there anything we can do to remedy this issue? [Hargray Customer]

Resolution: A Hargray representative reached out to this customer shortly after receiving this email. He explained the reason for the service interruption and offered to stop out and fix it that day. Our representative also provided his office and cell phone numbers should he have any further issues.

Dear sir, I have been a Hargray customer for most of the almost five years that I’ve been a Sun City resident. Each year, during the renewal period, the price of your services goes up…from this past March until the bill that is now due, the cost has escalated by $41. I felt that the March cost of $178 was too high. I’ve talked with my neighbors…new customers and they tell me that their bundled services are considerably lower than my costs. Every time costs increase, I wince a little more! As you can probably discern, I’m a senior on a fixed income. So, I did a little shopping. Costs with other companies, for the 3 bundled services (TV with HBO) are considerably lower. I would like to avoid having to change all the hardware in my home besides having to obtain a new email address. Can you help? Sincerely yours, [Hargray Customer] Resolution: One of our Hargray representatives contacted this customer to discuss his concerns over our price increases. We were able to switch him to a new bundled plan that limits any future increases to only the cost of living. He was very happy that he was able to remain a Hargray customer and keep his current equipment and email address.

To whom this may concern, This is in regards to the customer service chat line. I would like to bring Nylia to the forefront and thank her for her superior customer support and professionalism while putting me in a perfect solution for my household. She deserves any accolades that is due to her and making another Hargray customer satisfied. Have a great Memorial Day weekend.

Tim Smoyer was the technician who provided service at my home in Pooler, GA today. Tim was very professional and knowledgeable and did an awesome job overall in less than ideal circumstances. He left here late in the day on a Friday afternoon and still had two more calls to make. Tim is a shining example of great customer service. Kudos to Tim!!!!

[Hargray Customer]

2013 ANNUAL REPORT

The feedback comes in the form of completed online surveys. Following an interaction with Hargray, such as a new service installation or repair call, survey links are sent via email to customers. Once a survey is completed and submitted, results from the surveys are compiled in real time and reported in a dashboard used by supervisors, department directors and executives.

FOCUSED ON OUR CUSTOMERS: THE BUCK STOPS HERE

FOCUSED ON GROWTH: FIBER-TO-THE-TOWER

During 2013, we continued constructing fiber to wireless towers, a key infrastructure improvement for our community and an important revenue driver for our company.

focused on growth

We constructed fiber to 97 wireless towers in South Carolina and Georgia, with dozens more to come. In addition, in a move that speaks to the quality and reputation of Hargray, the four largest national wireless companies have all selected Hargray to construct fiber to their wireless towers across the Lowcountry and Savannah. These carriers, which run the nation’s most sophisticated networks, value reliability and responsiveness and chose Hargray because we operate the most reliable, fiber-rich network in the area and have the most sophisticated and responsive locally based workforce. Bringing fiber to wireless towers requires careful engineering design, underground construction, complex installation activities, and the finest in network maintenance expertise and equipment. Hargray delivers all this to these wireless companies.

• 97 unique towers built to in 2013 • Contracted 13,200 gigabits per

second of bandwidth to wireless towers in 2013 • $4.3 million invested to date in constructing fiber to wireless towers

In addition to the improved service and capacity, our fiber is “future-proof” — enabling speed upgrades to the carriers when needed in the future as the next generation of wireless devices demand even more connectivity.

2013 ANNUAL REPORT

To ensure reliability, we designed and constructed our fiber network, wherever feasible, in a special ring architecture which is “self-healing,” meaning that if it is cut in one location, the traffic carried by the fiber is automatically re-directed in the other direction to ensure uninterrupted connectivity.

FOCUSED ON GROWTH: SAVANNAH SUCCESS

F O C U S E D O N G R O W T H : D ATA C E N T E R & M A N A G E D S E R V I C E S

“We’re very pleased to have Hargray join us in our Savannah headquarters,” said Michael Traynor, publisher of the Savannah Morning News. "As we continue to evolve and grow into a multi-platform, advanced digital and print solutions company, we are fortunate to be working with Hargray for our telecom and bandwidth needs. Hargray has invested in Savannah by building a state-of-the-art fiber network and our organization is going to benefit as we will be using Hargray’s network for our considerable media and communications needs.”

After acquiring Savannah-based iTech in January 2013, we integrated its Data Center & Managed Services into our product portfolio. These efforts resulted in 50% growth in monthly recurring Data Center & Managed Services revenue since the acquisition… and we’re just getting started. In 2014, we will launch a full suite of hosted Data Center & Managed Services that will allow us to manage and maintain business’ servers and telephone equipment, providing a highly secure and professionally managed data center they can access remotely. And unlike many “cloud” solutions that require multiple hand-offs between service providers, when customers select Hargray, they get direct access to these services on our private, fiber-based network. This removes the inherent challenges of the public Internet such as latency, multiple points of potential failure and unpredictable bandwidth, and provides a predictable cost for their IT services and a reduced need to purchase or refresh equipment every three to five years. And, as always, it’s backed by Hargray’s first-class, local support.

Throughout 2013 we continued to significantly expand our state-of-the-art fiber network in Savannah. We are one of the only providers in Savannah that will take the time and incur the expense to construct fiber directly to a business’ location. As a result, we once again saw strong growth in our customer base, including the addition of the cities of Savannah, Pooler and Port Wentworth, and customers like the Savannah Morning News, Vaden Automotive and Telfair Museum. We also added five Savannah hotels to our customer roster during 2013. Finally, we are most proud to have secured material repeat business from several existing customers, including Gulfstream, St. Joseph’s/Candler Hospital and Savannah College of Art and Design. As a result of the strong demand for our fiber-based communications solutions, Hargray opened new professional offices in the Savannah Morning News building in Savannah. The offices support our commercial services activities in Savannah, as well as our Data Center & Managed Services

4.9 million

invested in our Savannah network to date.

On-Net t ec Dir

Clients Remote Employees Partners Corporate Infrastructure

on cti ne n Co

Hosted Servers

Direct Connection

Hosted IPPBX business that was launched in 2013 through the acquisition of Savannah-based iTech. Opening this office to house both our Data Center & Managed Services personnel and our commercial services personnel enables more collaboration among Hargray colleagues working in the Savannah market, and gets us one step closer to our ever-growing number of customers in the area.

Corporate Users

On-Premise Servers

The direct connection offered by Hargray’s hosted services take the public Internet out of the equation, providing all the benefits of cloud services without the inherent challenges of the Internet.

2013 ANNUAL REPORT

Cloud Computing

In order to continue our aggressive expansion efforts, it is critical that we have a strong balance sheet and ready access to capital. To this end, we were very pleased to complete a $330 million refinancing in 2013, underwritten by RBC and Credit Suisse First Boston. Our refinancing was more than 50% oversubscribed, which is a testament to the strength and stability of our business and its bright future prospects. Our new seven-year credit facility provides us a great deal of flexibility for making a variety of investments and acquisitions.

• $330,000,000 financing • 7-year first lien • 50% oversubscribed

Hargray today is very well capitalized, with positive corporate cash flow, cash reserves on our balance sheet, and additional borrowing capacity available. Hargray is well prepared to fund its growth initiatives, including new network construction and acquisitions.

F O C U S E D O N G R O W T H : R E C O G N I Z I N G P E R F O R M A N C E & D E V E L O P I N G TA L E N T

Our more than 350 employees are the engine behind our ability to envision and deliver customer delight. In recognition of this, we continue to focus on their growth as professionals and individuals, while recognizing and rewarding their hard work. In 2013, we selected 17 employees who best exhibited our mission of envisioning and delivering customer delight. Each quarter, these outstanding employees were honored and at the end of the year in an all-employee meeting one of them was selected to win the annual Hargray Award. The 2013 Hargray Award winner was construction engineer Gary DeLong. Gary has been with Hargray for nearly 30 years and was recognized for his instrumental role in our expansion into the Savannah market. Gary applies the same commitment to supporting external and internal customers and consistently exhibits a collegial and congenial attitude. From working each day with the construction crews burying fiber, to building relationships with the City of Savannah, Gary has been tireless in moving Hargray forward in this new crucial market. We are proud to have Gary as a colleague and role model at Hargray.

2013 ANNUAL REPORT

Hargray University Learning Center—our in-house employee education center—played an integral part in our success this year with 317 employees participating in 4,522 hours of training, including product-specific, technical, general management and goal setting.

2013 Hargray Award Winner, Gary DeLong

Finally, due to our material growth, we hired 104 colleagues in 2013, as well as welcomed 22 new colleagues through the iTech acquisition. To ensure the maximum opportunity for success, we significantly enhanced our new employee training, which includes a session on Hargray’s culture led by our Chairman and CEO, Michael Gottdenker. At Hargray, we believe our unique culture is one of the qualities that differentiates us from other companies.

We summarize our culture in five characteristics or behaviors: 1. Live our mission of envisioning and delivering customer delight every day 2. Be congenial (care deeply about co-workers as people) AND be collegial (committed to each other’s professional success) 3. Exercise Positive Exchange of Control—if we hand off an issue or a customer to a colleague, the handoff is only completed when the colleague affirmatively acknowledges receipt 4. Strive for continuous improvement in all we do as individuals and professionals 5. Set specific, measurable, actionable, realistic and time-bound goals for our company, our departments and ourselves

2013 ANNUAL REPORT

FOCUSED ON GROWTH: REFINANCING & NETWORK INVESTMENT

F O C U S E D O N O U R C O M M U N I T Y: H E R O E S AT H A R G R AY

In 2013, Hargray launched a new employment program designed to assist military veterans with their transition into the civilian workforce following the end of their military service.

Heroes at Hargray officially launched over the summer, when five interns (pictured below) began a comprehensive training program learning to install, troubleshoot and repair equipment used in Hargrayâ&#x20AC;&#x2122;s network. The goal of the program is to provide an experience that positions these individuals to gain full-time employment, whether at Hargray or another employer. Building on the success of the program, Hargray plans to hire more veterans into the program in 2014 and begin integrating them into other departments within the company.

From left to right: Justin Hutcheson, David Kleiman, Daniel Beach, John Gallagher and Tom Deal

2013 ANNUAL REPORT

focused on our community

The program, called Heroes at Hargray, provides transitioning military personnel with hands-on vocational training through paid internships of up to one year.

2013 ANNUAL REPORT

This past year, Hargray continued to work with some of our communityâ&#x20AC;&#x2122;s leading educational, healthcare and municipal institutions.

The Hargray Building at the center of the University of South Carolina Beaufort's main campus in Bluffton, South Carolina.

F O C U S E D O N O U R C O M M U N I T Y : H I G H P R O F I L E M U N I C I P A L I T Y, I N S T I T U T I O N A L & E 9 1 1

Some of the largest and most complex institutions in our service area chose Hargray for their telecommunications needs, including the Beaufort County School District, University of South Carolina-Beaufort, Beaufort Memorial Hospital and Hilton Head Regional Hospital. In addition, several area governments and municipalities, including Beaufort County, Town of Bluffton, Town of Hilton Head, City of Port Wentworth, City of Pooler and City of Savannah, have chosen Hargray as their service provider.

Hargray was particularly honored to have been selected in 2013 by Beaufort County to provide the infrastructure and support for its Emergency-911 upgrades. Among other things, the next generation system will allow residents to report crimes and seek emergency help using text messages and videos, which could prove very useful to first responders. Beaufort County is one of the first local governments in South Carolina to pursue such a system and chose Hargray for its robust and reliable fiber-optic network, which will link dispatch centers in Beaufort and on Hilton Head Island.

2013 ANNUAL REPORT

F O C U S E D O N O U R C O M M U N I T Y : H I G H P R O F I L E M U N I C I P A L I T Y, I N S T I T U T I O N A L & E 9 1 1

F O C U S E D O N O U R C O M M U N I T Y: C O M M U N I T Y E V E N T S & S P O T L I G H T

In 2013, Hargray continued to play an integral role in the community. In 2013, we were proud to continue our partnership with the Beaufort County School District, which educates more than 20,000 students each year through its 30 schools. In addition to our professional relationship with the district as their key service provider, Hargray is a major supporter of sports, entertainment and educational programs, including the Celebrate Freedom Foundation’s Aviation/STEM Day event at Battery Creek High School, at which nearly 700 students got the rare treat of witnessing a “fly-in” by an AH-1 Cobra Attack Helicopter. More than 700 U.S. Marines stationed at the Marine Corps Air Station (MCAS) in Beaufort gathered on base in November for a special Thanksgiving feast sponsored by Hargray. The event

2013 ANNUAL REPORT

gives Marines who are unable to be with their families a chance to enjoy a wonderful meal and celebrate the holiday with each other. For Hargray, it provides us with an opportunity, at least for a day, to serve some brave men and women who serve our country all year long.

One of the PGA Tour’s most popular events is the RBC Heritage, which for the past 45 years has been held at Hilton Head’s Harbour Town Golf Links. For each of the tournament’s 45 years, Hargray has been a sponsor and partner of the tournament. Starting in 1969, when Arnold Palmer and Jack Nicklaus were walking the fairways in the inaugural Heritage Classic, Hargray was providing the tournament with a handful

of telephone lines. This past year, tournament staff, vendors and media partners were supported by Hargray High Speed Internet. As with every year, the hard work was rewarded with the knowledge that we played an essential part in showcasing Hilton Head to millions of viewers around the world. In addition to the examples above, Hargray was proud to be a sponsor of a variety of events and charities throughout the year, including Beaufort Water Festival, Boys and Girls Club of Beaufort County, Programs for Exceptional People and Hilton Head Celebrity Golf Foundation, which supports 20 local children’s charities. During 2013, Hargray’s Caring Coins Foundation continued to provide critical funds to nonprofit organizations throughout the area. The grants, which now total more than $2 million, are made possible by the generous contributions of Hargray customers who opt to round up their Hargray bills and donate the spare change to the foundation.

Our dedicated Hargray employees provided seamless connectivity for the over 100,000 visitors at the RBC Heritage golf tournament.

2013 ANNUAL REPORT

Hargray is one of the largest employers in our service area and supports numerous local events and charities that touch the lives of thousands of people throughout our community.

We focused on our customers, launching new products, programs and

2013 ANNUAL REPORT

In 2013, we focused on improving our products and services, growing our company and enriching our community. We are grateful for the support of our customers and colleagues, and are excited about our future challenges and opportunities.

services to further enhance our ability to deliver customer delight.

We focused on growth, continuing to expand our network, broaden our

core service capabilities and strengthen our company.

We focused on our community, working in various ways to improve the quality of life for all citizens throughout the areas we serve.

The successes of 2013 were made possible by the hard work and dedication of our colleagues, who, in each of their own ways, envisioned and delivered customer delight.

H A R G R AY C O M M U N I C AT I O N S G R O U P, I N C . 1.87 7.HARGRAY | hargray.com