November 21, 2003


Mr. M. Lynn Pike
President, CEO and The Board of Directors
Warwick Valley Telephone Company
47 Main Street
Warwick, NY   10990


Dear Mr. Pike:

We are shareholders of Warwick.  We would like to
make a suggestion to you and the Board of
Directors.

We have a very successful and indeed valuable
passive investment in a cellular partnership; the
7.5% investment in the Orange County Poughkeepsie
Limited Partnership (OCP).  You are to be
congratulated for having the wisdom and foresight
to have made this investment years ago. Now the
time seems right for Warwick to capitalize on this
investment on behalf of all shareholders by
creating a liquidity event.

This is so, for very many reasons, such as your own
statements about the competitive nature of the
telephone business in general, and cellular
business in particular. The fact that the growth is
now beginning to slow up, the fact that
profitability is very great, leaving little room
for further margin improvement (Am I wrong on
this?), and the fact that it is most certainly
today worth many, many times your original
investment. It is clearly worth much more than the
$22 million mentioned in an SEC filing almost a
year ago. Earning perhaps $10 million pretax this
year, the OCP might be worth even more than the $80
million Mr.Gareiss was quoted as saying, in the
Times Herald Record on April 20, was a price he
would take at that time.

There are several ways in which the company can
achieve its goals, namely increase shareholder
value, and to have substantial cash available for
capital expenditures for new activities such as
your present cable TV build out, sufficient capital
for maintenance and growth for the existing
businesses, and ample cash for paying and
increasing dividends annually, and of course paying
down debt.

I have five suggestions for you to capitalize on
the valuable OCP investment:

1.	Offer a debt instrument whose interest
payments are secured by cash received from the
OCP (either fixed or variable).  You should
for example, at the present rate of cash
payments to Warwick, let us assume $9 million
received in calendar 2003, be able, if used
entirely, (it need not be used in its
entirety), to make a debt instrument offering,
and be able to raise well over  $100 million.
For example just making $9 million available
to pay interest at a 7% rate, (which is a very
attractive rate to investors in the current
interest rate environment) would permit an
offering of $126 million. As mentioned, you
would not need to offer all of the $9-$10
million received from the OCP in 2003. It
could be a lesser sum.

2.	Offer a debt instrument convertible into the
OCP or the proceeds of sale of OCP with
interest payable from payments received by
you.

3.	Spin off all or part of the OCP to
shareholders, pay the taxes due and later sell
more when it has appreciated further. By the
way, if trading  (actually transfer of units
on transfer books) were restricted to a minor
percentage of the outstanding partnership
units per year, as is easily and often done,
in accordance with IRS regulations, no taxes
would be due or payable by Warwick.

4.	Sell all or part of the investment by putting
it up for auction or negotiating same.
Verizon presumably has right of first refusal
and could meet the offer you elicit.

5.	This suggestion I saved for last, as it is
possibly the best. It would allow the market
to maximize shareholder value, avoid any taxes
to any party and would, based upon OCP's
history, be a huge wealth building investment
for all shareholders which would offset any
decline in the share price of Newco (The POTS
business).

Here is the suggestion I would urge you to do.

Spin off all assets and all liabilities to Newco
except for the OCP investment.

Thus there would be two public entities each with
its own market.  Newco which would be the present
operating business (POTS) and Warwick Valley
Telephone (name could be changed) which would be
an investment company. (It would also be possible
under certain circumstances to fashion this
company as a "C" corporation.

There would be no tax liability to Warwick or its
shareholders or the OCP itself.  Newco would be
entitled to a management fee for the management
of Warwick's operations, i.e. OCP investment and
Warwick could in fact seek other investment
opportunities as well. You might in fact leave in
place as well, the other small investments
Warwick has made and presently holds.

The IRS would see this as a non-taxable
distribution. There is precedent for this. I
would be glad to direct you to those many
companies which have successfully spun off, tax-
free, their operating businesses to leave the
original company with a business or an investment
or even a shell corporation or in the case of
Warwick, a company with some investments, namely
the OCP and the several additional small
investments.

Original Warwick would, as mentioned above,
retain Newco to manage the investments and be
paid a compensatory management fee. It could in
fact be on a fee plus percentage of the profits
basis as with many an investment partnership, and
be entitled to reasonable yet material
compensation in this way.

I have much experience in my 44-year career as an
investor and would be happy to discuss the above
with you in greater detail.

Suffice to say you have a wide and attractive array
of choices to capitalize on the brilliant
investment you have made and to further enhance the
value of Warwick to its shareholders.

I will be happy to answer any questions you may
have and to assist you in any way I can.


Yours Truly,

Larry

Lawrence J. Goldstein




Page 3 of 4

Stocks overlooked or ignored by otherwise intelligent investors TM
SANTA MONICA PARTNERS, L.P.
1865 PALMER AVENUE
LARCHMONT, NY  10538

914.833.0875  ~  FAX: 914.833.1068
WWW.SMPLP.COM

LAWRENCE J. GOLDSTEIN
GENERAL PARTNER

EMAIL: ljgoldstein@bloomberg.net


Stocks overlooked or ignored by otherwise intelligent investors TM