?2006 Our 25th Year?
SANTA MONICA PARTNERS, L.P.
1865 Palmer Avenue
Larchmont   New York   10538

Tel. 914.833.0875     Fax 914.833.1068

ljgoldstein@bloomberg.net        www.smplp.com
jeudowe@smplp.com



April 12, 2006

Dear Fellow Warwick Stockholder,

We are writing to ask for your support by voting the
enclosed GREEN proxy card ?FOR? the two nominees that
we have proposed for election to the Board of Directors,  Mr.
M. Lynn Pike and Mr. Peter Saulnier ? both seasoned,
experienced leaders in the Telecomm industry.

We are also writing to urge you to vote ?FOR? Item Number
4, ?Shareholder Proposal urging that the quarterly dividend
to shareholders be significantly increased.?

Allow us to explain who we are and why we are asking you to
vote on the enclosed GREEN proxy card.

Santa Monica Partners, L.P. (?SMP?) an investment partnership
established in 1982, beneficially owns 114,689 shares of
Warwick Valley Telephone Company (?Warwick?).  SMP is
managed by the undersigned, who combined have more than
forty-seven years of experience as successful, long-term
investors and investment professionals. We are today, and have
been during most of the past five years, Warwick?s second
largest shareholder.  With this sustained and substantial interest,
we have a shared interest with you.

Our fund, SMP, is nether a hedge fund nor does it seek ?quick
profits? both of which  Mr. Herb Gareiss falsely accused us of in
the March 9, 2006 Warwick Advertiser article entitled, ?The
Phone Still Rings.?  We are quite the opposite.  We are patient
investors focused on long-term value investing.  Our investment
philosophy focuses on tax efficient, low-risk, undervalued
companies that we can hold for decades. Thus, we have
extremely long holding periods and are more than willing to
remain shareholders through both the good times and bad.
Patience is a hallmark of ours.  For the past 25 years, we have
worked hard to ensure shareholders get all they are entitled to.
Unlike other investors, we do not just ?vote with our feet? i.e.
sell our shares.  Rather, we are willing to stand up for all
shareholders and for all they are entitled to.

Therefore we have nominated M. Lynn Pike and Peter
Saulnier, two seasoned, talented top telephone industry
corporate executives who know Warwick first hand to fill two
openings on the Board of Directors.  We are not asking for a lot;
just two of the nine Directors so we can be assured that someone
on the board is serving shareholders? interests.

Why now?  After five years of watching Warwick suffer
declining operating profits, in 2005 the Company reported an
operating loss.  Worse, the Company shows no signs of a
turnaround.  Management has publicly predicted another decline
for 2006 ? marking the possibility of this year being the seventh
straight year of declining operating results.  In addition, given
the substantial cash earned annually by Warwick?s portfolio of
passive investments we believe it is time to significantly increase
the regular annual dividend, which by the way, has not been
increased since 2004.

Warwick?s stock price has also suffered from the very poor
operating performance. It is approximately $22 today, down
from $34 two and a half years ago.  This has been trying on all of
us, particularly in light of the fact that the Bloomberg telecom
stock index has risen over 24% in the past 12 months while
Warwick?s stock just eked out a 4% rise in the same period.
The problem lies with Warwick?s management.  In 1999, just
seven years ago, the Orange County/Poughkeepsie Cellular
Partnership (OCP) a passive investment, which our Board and
Management have absolutely no control over, accounted for just
30.9% of Warwick?s two principal sources of income, the OCP
and the Plain Old Telephone System (POTS).

However, because the OCP, which is managed by Verizon
Communication?s outstanding management, has GROWN its
profits every single year since 1999, while the POTS has
DECREASED annually, the OCP now accounts for ALL of the
Company?s income.  In 2005, the actively operated, but poorly
managed telephone system (POTS) of Warwick LOST
$2,900,000 while the passive OCP investment, which this
management and Board had no control over at all, once again
INCREASED its profits to a record  $11,063,000 share for
Warwick.

PLEASE REVIEW THE TABLE BELOW SHOWING THE
RAPIDLY INCREASING INCOME FROM THE OCP
INVESTMENT AND THE RAPIDLY DECLINING
OPERATING INCOME OF THE POTS.


	OCP(1)	POTS
YEAR	NET INCOME	OPERATING
INCOME
2005	$11,063,100	($2,950,000) (2)
2004	$10,475,250	 $1,110,000
2003	  $9,117,600	 $3,180,000
2002	  $7,302,675	 $5,270,000
2001	  $5,041,500	 $6,750,000
2000	  $4,124,175	 $7,640,000
1999	  $3,367,575	 $7,530,000

(1) Warwick?s 7.5% interest in the OCP
(2) 2005 Operating Loss

Warwick has continued to pour the substantial, fast growing
profits the Company receives from the OCP into the declining,
highly competitive POTS business year after year.

If the Board had not authorized throwing the good cash earned
from the OCP down the drain into the poorly managed, declining
POTS, and if the dividend had merely kept pace with the growth
of the OCP income WHICH IS THE SOURCE OF FUNDS
USED TO PAY THE DIVIDEND, the dividend could have been
increased annually and today could be as much as $1.47 per
share or 84% higher than the $0.80 cents we receive now.  But
no, this board has not done this. This Board instead has done the
indefensible.

Furthermore, the Board prefers to spend money on interest
payments on a bank loan which is not presently needed just to
avoid having to negotiate a loan if and when it should ever be
needed.  The Board actually said that they ?put [the loan money]
into an account for potential later use? The Company already has
more cash than it needs. This costly borrowing makes no sense
to us at all.

Peter Saulnier, one of our two nominees for the Board is a
former telephone company Chief Financial Officer and would
bring a financial discipline to the Board, something presently
sorely missing and desperately needed. He could also be a
wonderful skilled addition to the Audit Committee, two of whose
three members include a retired public relations consultant and
an operator of a dairy farm, which are nice experiences to have,
but not for an Audit Committee. Lynn Pike also knows the value
of a dollar and how to cut expenses (not increase them) which
could make Warwick, once again, a profitable operating
company.

Let?s look at Warwick?s recent record. In 2004 the Board fired
then President and CEO Mr. Pike who was leading a strategy to
modernize the Company.  Subsequently, the Company lost every
single one of its other top executives with the exception of Herb
Gareiss, leaving him alone to run the Company. And just last
month, Board members Rafael Collado, Joseph E. DeLuca,
M.D., and Fred M. Knipp all resigned at the same time for
?personal reasons.?

Mr. DeLuca served on the Audit Committee as well as the
Governance and Nominating Committees. Mr. Knipp, our long
time Director and former President and CEO, served as
Chairman of the Governance and Nominating Committee and the
recently established and very important Strategic Options
Evaluation Committee.  Help is clearly needed to recapture what
has been lost.

This past November the Board vehemently opposed and
needlessly spent the shareholders? money opposing our proposal
to put the Company up for auction to the highest bidder. And yet,
just two months later on January 31, 2006 the same Board stated,
?[Warwick] expects continued declines in the revenue associated
with traditional service offerings? and therefore, had  retained
?the investment banking firm Stifel, Nicolaus & Company,
Incorporated to assess the strategic options available to the
Company including the sale of all or a part of the Company.?
This is a complete reversal of everything President Gareiss said
to us (and published) at the annual meeting just this past
November 17. Recall Mr. Gareiss?s closing words at the annual
meeting:

?In Closing? Our plans are in place, our organization is
engaged and our direction is clear. We will work to protect ?
and expand ? our market share with new and existing
products and services based on our core strengths.
Warwick?s strength lies in its dedicated and knowledgeable
staff, its loyal customers and shareholders, and its ability to
move quickly to capture and exit markets.  By leveraging
these strengths, WVT strives to remain an solid investment
for its shareholders.?

Instead, what is clear now is that Stifel Nicholas has been hired
because plans are not in place and their direction is not clear.
The only ?leveraging? has been the needless and expensive
bank borrowing. And Warwick has certainly not been ?a
solid investment for its shareholders? for many years.

We therefore have nominated Mr. Pike and Mr. Saulnier two
former telecom executives who we confidently believe will be
able to steer Warwick back on track and seek all available
strategies to maximize returns for shareholders.

As you probably know, these openings are due to the recent
resignation of three Directors announced last month (two of
whom had been serving terms scheduled to expire in 2007).

In order for our two nominees to be considered for the Board of
Directors and for your votes for them to be counted we have had
to bring a lawsuit in the New York State Supreme Court against
the Chairman and Corporate Secretary.  Why?  Because the
Company has in its by-laws a rule that any nomination for the
Board of Directions must be made 120 days prior to the first
anniversary of the date on which the Company first mailed its
proxy materials for the prior year?s annual meeting, in this case,
making the deadline November 2005.  The election for which
we?ve nominated Mr. Pike and Mr. Saulnier is for two seats
which were not due to expire until 2007, but just became
available in March 2006 when the directors who held those seats
unexpectedly resigned.  We asked the Company to waive this
rule given the absurd circumstances presented here, but the
Company declined.

Now let?s be clear here, in November 2005 no one could have
possibly known that the two directors, whose seats were not
scheduled for election until 2007, would resign in March 2006.
It is unfair and inequitable to treat shareholders this way.
Moreover, it is completely undemocratic behavior and clearly
not the American way

Lynn Pike and Peter Saulnier, if elected to our Board, will work
to see to it that the fair and equitable way of doing things is
restored, and to push to have the business turned around, the
financials put in order, the dividend increased at least in line with
the OCP income and shareholder value and interests put at the
forefront of Company actions. In addition, they will cooperate
with Stifel Nicholas to immediately assess the strategic options
available to the Company.  Lynn Pike as a CEO of a telecom in
Oklahoma and the former CEO of Warwick is extremely well
equipped to work on behalf of shareholder?s best interests as is
Peter Saulnier who is a trained, accomplished and experienced
telecom CFO, and seasoned executive. Today, the Board clearly
lacks anyone with hands on experience in Telecom that equally
matches that of our two nominees.

If you agree with us and will support our actions of bringing
back shareholders best interest to Warwick executives, then
we ask you to vote ?FOR? Lynn Pike and Peter Saulnier and
?FOR? the increase in dividend on the enclosed GREEN
proxy card.

Thank you for your time and consideration.  We are available to
you at 914-833-0875 to discuss our position or to explain any
details that may not be clear to you.  Please do not hesitate to
call. You may also email us at the addresses appearing below.

Sincerely Yours,


Santa Monica Partners, L.P.
by
Lawrence J. Goldstein
President, SMP Asset Management, LLC
ljgoldstein@bloomberg.net
914.833.0875  x11


Joshua M. Eudowe
Managing Director, SMP Asset Management, LLC
jeudowe@smplp.com
914.833.0875  x12