Exhibit 99.1

Rural Cellular Corporation
Announces
Third Quarter 2004 Net Income
And Roaming Agreement

November 12, 2004 –– ALEXANDRIA, Minn. –– Rural Cellular Corporation (“RCC” or “the Company”) (NASDAQ: RCCC) announces third quarter 2004 net income and significant roaming agreement with Cingular.

Third Quarter 2004 Financial Highlights:

• Total revenue was $132.4 million.

• Net income increased to $2.2 million.

• EBITDA was $59.6 million. (see reconciliation of non-GAAP financial measures to comparable GAAP financial measures)

• Capital expenditures were $25.0 million.

Richard P. Ekstrand, President and Chief Executive Officer, commented: “This quarter’s overall financial performance reflects the initial results of our investment in next generation technology and the property swap with AT&T Wireless and is in line with our previous guidance. We are also very pleased with the recent amendment of our roaming agreement with Cingular and look forward to the mutual benefits our two companies will share. For RCC, these benefits include a stabilized roaming relationship for the future, and a more robust network leading to an expanded footprint and additional services for our customers.”

Roaming agreement with Cingular

On November 11, 2004, RCC and Cingular amended an existing roaming agreement, which extends the Company’s existing agreement with Cingular through December 2009 and replaces agreements with AT&T Wireless.

Key components to the agreement include:

• Outcollect and incollect rates company wide, including data roaming,

• Incentive for RCC to overlay GSM technology in its Alabama, Kansas, and Mississippi markets,

• Expanded network interoperability,

• Deployment of EDGE technology, and

• Coordination of future technology transitions.

Revenue and customer growth

Service Revenue. Service revenue growth for the three months ended September 30, 2004, reflects Universal Service Fund (“USF”) support subsidies increasing to $7.6 million as compared to $2.2 million for the three months ended September 30, 2003. Service revenue increased 4.9% even with a net customer decrease resulting from the AT&T Wireless property swap completed on March 1, 2004. For the three months ended September 30, 2004, LSR increased to $48 as compared to $45 for the three months ended September 30, 2003.

Customers. During the three months ended September 30, 2004, postpaid retention was 97.8% as compared to 97.9% in the three months ended September 30, 2003. Total customers declined by approximately 1,900 in the three months ended September 30, 2004 as compared to an increase of approximately 1,500 in the three months ended September 30, 2003.

4

Outcollect Roaming Revenue. The decrease in roaming revenue from last year primarily reflects the effect of the transfer of the Company’s Northwest Region Oregon 4 (“Oregon 4”) service area to AT&T Wireless together with a decline in outcollect yield for the three months ended September 30, 2004 to $0.16 per minute as compared to $0.21 per minute in 2003.

Operating costs

Network Costs. RCC’s network cost increased 12.8% to $27.8 million for the quarter, reflecting additional costs of next generation networks, additional costs resulting from the AT&T Wireless property exchange, and an 8.9% increase in incollect cost to $12.3 million.

Selling, General and Administrative. During the three months ended September 30, 2004, SG&A increased 4.6% to $35.0 million as compared to the three months ended September 30, 2003, primarily reflecting increased costs related to the market launch of next-generation technology products and costs relating to brand name change activities. Regulatory pass-through fees for the three months ended September 30, 2004 and 2003 were $3.4 million and $3.1 million, respectively.

Interest Expense

Interest expense for the three months ended September 30, 2004, decreased 22.2% to $35.1 million as compared to $45.2 million in the three months ended September 30, 2003. This decrease primarily reflects the $7.3 million gain on redemption of 22,750 shares of senior exchangeable preferred stock during the three months ended September 30, 2004. RCC did not repurchase senior exchangeable preferred stock during the three months ended September 30, 2003.

Components of interest expense are as follows:

	Three months ended
(in thousands)	September 30,
	2004			2003
Interest expense on credit agreement	$	—		$	8,920
Interest expense on senior secured notes		9,564			—
Interest expense on senior notes		8,023			5,349
Interest expense on senior subordinated notes		10,320			10,320
Amortization of debt issuance costs		1,148			1,303
Write-off of debt issuance costs		269			5,942
Senior and junior preferred stock dividends		13,331			13,784
Effect of derivative instruments		(172	)		(1,896	)
Gain on redemption of senior exchangeable preferred stock		(7,296	)		—
Other		(58	)		1,446
	$	35,129		$	45,168

Capital expenditures and network construction

Capital expenditures for the three months ended September 30, 2004 were approximately $25.0 million compared to approximately $12.9 million for the three months ended September 30, 2003, reflecting the continued expansion of RCC’s existing wireless coverage and the implementation of CDMA and GSM/GPRS network overlays and upgrades in its Northwest, Midwest and Northeast markets.

RCC anticipates incurring substantial expenditures in connection with the continued implementation of CDMA/1XRTT and GSM/GPRS/EDGE network overlays and upgrades, which now include its Alabama, Mississippi and Kansas markets.

The Company expects approximately $100 million in capital expenditures for 2004 and similar capital spending levels for 2005.

5

Teleconference

On November 15, 2004 at 8:00 AM CT, a teleconference will be held to discuss RCC’s second quarter performance. To participate in the call, please dial (800) 240-5318, and give the operator your name and company affiliation. To access a replay of this call through November 23, 2004, dial (800) 405-2236 and 11013827# as the pass code. An audio replay of the teleconference can also be accessed by logging onto the Company’s website at www.RCCwireless.com. To access the audio stream, click on the Investor Relations section.

About the Company

Rural Cellular Corporation, based in Alexandria, Minnesota, provides wireless communication services to Midwest, Northeast, South and Northwest markets located in 14 states.

Forward-looking statements

Statements about RCC’s future prospects are forward-looking and, therefore, involve certain risks and uncertainties, including but not limited to: competitive considerations, success of customer enrollment and retention initiatives, the ability to increase wireless usage and reduce customer acquisition costs, the ability to deploy new network technology on a timely basis, the ability to service debt, and other factors discussed in RCC’s Report on Form 10-K for the year ended December 31, 2003 and from time to time in its other filings with the Securities and Exchange Commission.

Contact:  Chris Boraas, Investor Relations Director – Equity (320) 808-2451
Suzanne Allen, Treasurer – Preferred Securities and Debt (320) 808-2156
World Wide Web address: http://www.rccwireless.com

# # #

6

Consolidated Operating Data:	Three months ended						Nine months ended
	September 30,						September 30,
	2004			2003			2004			2003
Penetration (1) (2)		10.5	%		11.4	%		10.5	%		11.4	%
Retention (3)		97.8	%		97.9	%		98.0	%		98.1	%
Average monthly revenue per customer (4)	$	63		$	64		$	60		$	60
Average monthly revenue per customer, less incollect cost (4)	$	57		$	58		$	54		$	54
Local service revenue per customer (5)	$	48		$	45		$	46		$	43
Acquisition cost per customer (6)	$	442		$	401		$	428		$	414
Voice customers at period end
Postpaid								636,655			653,491
Prepaid								21,018			24,427
Wholesale								81,890			62,566
Total customers								739,563			740,484
Direct Marketed POPs (1)
RCC Cellular								5,525,000			5,208,000
Wireless Alliance								754,000			754,000
Total POPs								6,279,000			5,962,000

(1)	Reflects 2000 U.S. Census Bureau data updated for December 2002.
(2)	Represents the ratio of wireless voice customers, excluding wholesale customers, at the end of the period to population served (“POPs”).
(3)	Determined for each period by dividing total postpaid wireless voice customers discontinuing service during such period by the average postpaid wireless voice customers for such period (customers at the beginning of the period plus customers at the end of the period, divided by two), dividing that result by the number of months in the period, and subtracting such result from one.
(4)	Determined for each period by dividing service revenue (not including pass-through regulatory fees) and roaming revenue by the monthly average postpaid customers for such period.
(5)	Determined for each period by dividing service revenue (not including pass-through regulatory fees) by the monthly average postpaid customers for such period.
(6)	Determined for each period by dividing selling and marketing expenses, net costs of equipment sales, and depreciation of rental telephone equipment by the gross postpaid wireless voice customers added during such period.

7

Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Measures

The Company utilizes certain financial measures that are not calculated in accordance with accounting principles generally accepted in the United States, or GAAP, to assess the Company’s financial performance. A non-GAAP financial measure is defined as a numerical measure of a company’s financial performance that (i) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the comparable measure calculated and presented in accordance with GAAP in the statement of income or statement of cash flows or (ii) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the comparable measure so calculated and presented. The Company’s method of computation may not be comparable to other similarly titled measures of other companies.

EBITDA is the sum of earnings before interest, taxes, depreciation and amortization. EBITDA margin is calculated as EBITDA divided by total revenues. The Company believes that EBITDA and EBITDA margin provide an important perspective on its operating results and its ability to service long-term obligations, to fund continuing growth, and to continue as a going concern. EBITDA and EBITDA margin are not intended to represent alternatives to net income or cash flows from operating, financing, or investing activities (as determined in accordance with GAAP) as a measure of performance and are not representative of funds available for discretionary use due to the Company’s financing obligations.

The following table reconciles EBITDA to net income (loss), the most comparable GAAP financial measure.

	Three months ended						Nine months ended
	September 30,						September 30,
	2004			2003			2004			2003
EBITDA	$	59,630		$	68,713		$	172,667		$	180,799
Depreciation and amortization		(19,474	)		(19,464	)		(55,389	)		(59,217	)
Loss on assets held for sale		—			(42,244	)		—			(42,244	)
Interest expense		(35,129	)		(45,168	)		(121,884	)		(96,230	)
Interest and dividend income		424			99			1,370			539
Other		(14	)		(57	)		(78	)		931
Net income (loss)	$	5,437		$	(38,121	)	$	(3,314	)	$	(15,422	)

The following table summarizes the reconciliation of EBITDA margin to net income (loss) as a percentage of total revenues.

(All items shown as % of total revenue)

	Three months ended						Nine months ended
	September 30,						September 30,
	2004			2003			2004			2003
EBITDA		45.0	%		50.3	%		45.6	%		47.9	%
Depreciation and amortization		(14.7	)		(14.2	)		(14.6	)		(15.7	)
Loss on assets held for sale		—			(30.9	)		—			(11.2	)
Interest expense		(26.5	)		(33.1	)		(32.2	)		(25.5	)
Interest and dividend income		0.3			0.1			0.4			0.1
Other		0.0			0.0			0.0			0.2
Net (loss) income		4.1	%		(27.8	)%		(0.8	)%		(4.2	)%

8

RURAL CELLULAR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
(In Thousands)
(Unaudited)

	As of
	September 30,		December 31,
	2004		2003
CURRENT ASSETS:
Cash and cash equivalents	$	63,427	$	142,547
Accounts receivable, less allowance for doubtful accounts of $2,736 and $3,187		58,640		57,743
Inventories		7,360		8,037
Other current assets		4,625		4,259
Assets of operations held for sale		—		3,189
Total current assets		134,052		215,775
PROPERTY AND EQUIPMENT, less accumulated depreciation of $236,050 and $198,274		260,110		226,202
LICENSES AND OTHER ASSETS:
Licenses		579,140		563,283
Goodwill		363,805		360,796
Customer lists		52,570		64,575
Deferred debt issuance costs, less accumulated amortization of $8,749 and $12,009		31,216		34,479
Long-term assets of operations held for sale				50,153
Other assets, less accumulated amortization of $1,945 and $1,736		6,236		5,795
Total licenses and other assets		1,032,967		1,079,081
	$	1,427,129	$	1,521,058

9

RURAL CELLULAR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS’ DEFICIT
(In thousands, except per share data)
(Unaudited)

	As of
	September 30,			December 31,
	2004			2003
CURRENT LIABILITIES:
Accounts payable	$	37,485		$	45,808
Current portion of long-term debt		80			27,262
Advance billings and customer deposits		11,713			10,454
Accrued interest		21,377			34,084
Other accrued expenses		9,788			11,276
Liabilities of operations held for sale		—			756
Total current liabilities		80,443			129,640
LONG-TERM LIABILITIES		1,720,972			1,764,867
Total liabilities		1,801,415			1,894,507
REDEEMABLE PREFERRED STOCK		162,962			153,381
SHAREHOLDERS’ DEFICIT:
Class A common stock; $.01 par value; 200,000 shares authorized, 11,715 and 11,522 outstanding		117			115
Class B common stock; $.01 par value; 10,000 shares authorized, 539 and 552 outstanding		5			6
Additional paid-in capital		192,608			192,423
Accumulated deficit		(732,485	)		(719,590	)
Accumulated other comprehensive income		2,507			216
Total shareholders’ deficit		(537,248	)		(526,830	)
	$	1,427,129		$	1,521,058

10

RURAL CELLULAR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
(In thousands, except per share data)
(Unaudited)

	For the three months ended						For the nine months ended
	September 30,						September 30,
	2004			2003			2004			2003
REVENUE:
Service	$	97,093		$	92,530		$	280,657		$	264,357
Roaming		29,739			37,598			81,745			98,449
Equipment		5,589			6,462			16,450			14,765
Total revenue		132,421			136,590			378,852			377,571
OPERATING EXPENSES:
Network costs, excluding depreciation		27,768			24,613			77,073			73,417
Cost of equipment sales		10,035			9,812			30,627			26,936
Selling, general and administrative		34,988			33,452			98,485			96,419
Depreciation and amortization		19,474			19,464			55,389			59,217
Loss on assets held for sale		—			42,244			—			42,244
Total operating expenses		92,265			129,585			261,574			298,233
OPERATING INCOME		40,156			7,005			117,278			79,338
OTHER INCOME (EXPENSE):
Interest expense		(35,129	)		(45,168	)		(121,884	)		(96,230	)
Interest and dividend income		424			99			1,370			539
Other		(14	)		(57	)		(78	)		931
Other expense, net		(34,719	)		(45,126	)		(120,592	)		(94,760	)
NET INCOME (LOSS)		5,437			(38,121	)		(3,314	)		(15,422	)
PREFERRED STOCK DIVIDEND		(3,253	)		(3,019	)		(9,581	)		(35,801	)
NET INCOME (LOSS) APPLICABLE TO COMMON SHARES	$	2,184		$	(41,140	)	$	(12,895	)	$	(51,223	)
NET INCOME (LOSS) PER BASIC SHARE	$	0.18		$	(3.41	)	$	(1.05	)	$	(4.25	)
NET INCOME (LOSS) PER DILUTED SHARE	$	0.17		$	(3.41	)	$	(1.05	)	$	(4.25	)
WEIGHTED AVERAGE SHARES USED TO COMPUTE INCOME (LOSS) PER SHARE:
Basic		12,251			12,068			12,234			12,056
Diluted		12,795			12,068			12,234			12,056
COMPREHENSIVE INCOME (LOSS):
NET INCOME (LOSS) APPLICABLE TO COMMON SHARES	$	2,184		$	(41,140	)	$	(12,895	)	$	(51,223	)
Adjustments – derivative financial instruments		(172	)		190			2,291			5,893
TOTAL COMPREHENSIVE INCOME (LOSS)	$	2,012		$	(40,950	)	$	(10,604	)	$	(45,330	)

11

RURAL CELLULAR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)

	For the nine months ended
	September 30,
	2004			2003
OPERATING ACTIVITIES:
Net loss	$	(3,314	)	$	(15,422	)
Adjustments to reconcile to net cash provided by operating activities:
Depreciation and amortization		55,389			59,217
Loss on write-off of debt and preferred stock issuance costs.		12,605			5,942
Mark-to-market adjustments – financial instruments		4,339			(141	)
Loss on assets held for sale		—			42,244
Gain on redemption of preferred stock		(22,573	)		—
Adjustments of interest rate derivatives to fair market value		—			—
Non-cash preferred stock dividends		21,144			—
Other		5,931			3,306
Change in other operating elements:					—
Accounts receivable		2,088			(11,343	)
Inventories		846			1,664
Other current assets		(361	)		(720	)
Accounts payable		(8,827	)		(1,795	)
Advance billings and customer deposits		1,120			538
Accrued preferred stock dividends		20,967			13,784
Other accrued liabilities		(14,881	)		1,400
Net cash provided by operating activities		74,473			98,674
INVESTING ACTIVITIES:
Purchases of property and equipment		(61,602	)		(32,616	)
Proceeds from property exchange		13,573			—
Proceeds from sale of property and equipment		54			348
Other		4			2
Net cash used in investing activities		(47,971	)		(32,266	)
FINANCING ACTIVITIES:
Proceeds from issuance of common stock related to employee stock purchase plan and stock options		187			116
Proceeds from issuance of long-term debt under the credit agreement and senior notes		—			445,000
Repayments of long-term debt under the credit agreement		(525,724	)		(379,628	)
Proceeds from issuance of 8 1/4% senior secured notes		350,000			—
Proceeds from issuance of floating rate senior secured notes		160,000			—
Redemption of preferred stock		(68,351	)		—
Payments to settle interest rate swaps		(7,645	)		—
Payments of debt issuance costs		(13,928	)		(12,860	)
Repayment of swaption		—			(34,184	)
Proceeds from unwinding hedge agreements		—			2,300
Other		(161	)		(845	)
Net cash (used in) provided by financing activities		(105,622	)		19,899
NET (DECREASE) INCREASE IN CASH		(79,120	)		86,307
CASH AND CASH EQUIVALENTS, at beginning of year		142,547			53,788
CASH AND CASH EQUIVALENTS, at end of period	$	63,427		$	140,095

12