Exhibit 99.1

Rural Cellular Corporation

Reports Record

EBITDA and Free Cash Flow in

Second Qtr 2002

For Immediate Release

August 5, 2002—Alexandria, MN—Rural Cellular Corporation (“RCC”) (Nasdaq/NMS: RCCC) today reports unaudited consolidated financial results for the quarter ended June 30, 2002.

Second quarter ended June 30, 2002 highlights compared to second quarter ended June 30, 2001:

• EBITDA increased 15% to $58.7 million.

• EBITDA margin increased to 50%.

• Free cash flow increased 102% to $16.8 million.

• Retention improved to 98.5%.

• Postpaid net customer additions were 16,020.

Richard P. Ekstrand, president and chief executive officer, commented: “In the wake of what has been a difficult quarter for the telecom industry, RCC’s long held balanced growth strategy produced very strong EBITDA and free cash flow. Additionally, customer growth rebounded nicely as our retention reached near record levels.”

Strong customer growth and reduced bad debt

RCC is reporting a 145% increase in net postpaid customer additions of 16,020 as compared to the first quarter of ‘02, reflecting effective retention efforts together with solid gross adds.

Second quarter ‘02 bad debt expense decreased 64% to $1.2 million, as compared to $3.4 million in the second quarter of ‘01. Retention also improved to 98.5% in the second quarter of ‘02 as compared to 97.8% for all of ‘01. Additionally, net ARPU for the second quarter of ‘02 remained unchanged at $53 as compared to the second quarter of ‘01.

Roaming growth

The Company’s roaming revenue increased 19% to $33.9 million in ‘02 as compared to ‘01. Additionally, the Company’s net roaming position, or the net amount RCC receives after subtracting incollect cost from roaming revenue, increased. Contributing to these increases was a $2 million retroactive net settlement from one of the Company’s roaming partners.

Cost containment

SG&A continues to decline as a percentage of revenue coming in at 24% in the second quarter of ‘02 as compared to 26% in the prior year. This decline is due to a decrease in bad debt expense, cost reductions from consolidation of service centers, declining billing cost, efficiencies in the organization and other cost reduction initiatives.

A combination of lower incollect expense together with other network cost efficiencies resulted in network cost as a percentage of total revenue, decreasing to 22% as compared to 23% in ‘01. This quarter marks the fifth consecutive quarter that year over year network costs as a percentage of revenue, has declined.

Compliance with credit facility covenants

As of June 30, 2002, the Company had $793.9 million outstanding and $258.9 million in availability under the credit facility and is in compliance with all of its bank covenants.

Initial assessment of asset impairment

Statement of Financial Accounting Standards (SFAS) No. 142, which provides accounting and reporting standards for acquired intangible assets, requires that the Company perform an assessment to determine whether goodwill of any acquired intangible asset has been impaired. RCC has completed the initial assessment required by SFAS No. 142 and has determined that the carrying value of a region exceeds its fair value. The Company is currently in the process of completing the second phase of this evaluation to determine the amount of impairment. Management expects that upon completion of this evaluation, RCC will record in its statement of operations a non-cash charge of approximately $400 - $450 million as the cumulative effect of a change in accounting principle. As required by SFAS No. 142, the charge will be made retroactive to the first quarter of fiscal year 2002 once the second phase of the impairment test is completed. The impairment test will be completed and final adjustments made by December 31, 2002.

Teleconference

On August 6, 2002 at 8:00 AM CT, a teleconference will be held to discuss the second quarter 2002 operating results and certain 2002 expectations. To participate in the call, please dial (888) 566-5907, give the operator your name, and identify Richard Ekstrand as the call leader and RCCC as the pass code. To access a replay of this call, please dial (888) 277-9385. 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 Statement

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 successful integration of acquired operations with RCC’s existing operations, the ability to negotiate favorable roaming agreements, the ability to service debt, the resolution of certain network technology issues and other factors discussed from time to time in RCC’s Report on Form 10-K for the year ended December 31, 2001 and 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

# # #

RURAL CELLULAR CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Par Value)

(Unaudited)

ASSETS

	June 30, 2002		December 31, 2001
CURRENT ASSETS:
Cash	$	13,559	$	1,995
Accounts receivable, less allowance of $2,516 and $4,016	51,630		45,279
Inventories	4,366		6,617
Other current assets	3,083		2,408
Total current assets	72,638		56,299
PROPERTY AND EQUIPMENT, less accumulated depreciation of $162,906 and $137,776	239,170		244,980

LICENSES AND OTHER ASSETS:
Licenses and other intangible assets, less accumulated amortization of $138,292 and $128,633	1,494,198		1,505,107
Deferred debt issuance costs, less accumulated amortization of $9,242 and $8,306	27,284		22,549
Other assets, less accumulated amortization of $1,382 and $1,230	6,719		7,844
Total licenses and other assets	1,528,201		1,535,500
	$	1,840,009	$	1,836,779

LIABILITIES AND SHAREHOLDERS’ DEFICIT

	June 30, 2002			December 31, 2001
CURRENT LIABILITIES:
Accounts payable	$	30,798		$	35,356
Advance billings and customer deposits	11,109			9,315
Accrued interest	18,410			13,033
Dividends payable	6,050			5,710
Other accrued expenses	10,804			11,158
Total current liabilities	77,171			74,572
LONG-TERM LIABILITIES	1,273,566			1,290,338

Total liabilities	1,350,737			1,364,910

PREFERRED SECURITIES	537,222			508,836

SHAREHOLDERS’ DEFICIT:

Class A common stock; $.01 par value; 200,000 shares authorized, 11,194 and 11,176 issued	112			112
Class B common stock; $.01 par value; 10,000 shares authorized, 728 and 728 issued	7			7
Additional paid-in capital	192,294			191,964
Accumulated deficit	(212,939		)	(198,473		)
Accumulated other comprehensive loss	(27,424		)	(30,577		)

Total shareholders’ deficit	(47,950		)	(36,967		)
	$	1,840,009		$	1,836,779

RURAL CELLULAR CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In Thousands, Except Per Share Data)

(Unaudited)

	Three months ended June 30 ,						Six months ended June 30,
	2002			2001			2002			2001
REVENUES:
Service	$	79,273		$	80,151		$	153,586		$	150,187
Roaming	33,855			28,350			60,017			51,565
Equipment	4,564			4,545			7,843			9,678
Total revenues	117,692			113,046			221,446			211,430

OPERATING EXPENSES:
Network costs	25,909			26,255			48,898			49,261
Cost of equipment sales	4,520			5,924			7,971			12,352
Selling, general and administrative	28,552			29,644			55,465			55,863
Depreciation and amortization	20,533			27,689			39,509			54,587
Total operating expenses	79,514			89,512			151,843			172,063
OPERATING INCOME	38,178			23,534			69,603			39,367

OTHER INCOME (EXPENSE):
Interest expense, net	(25,048		)	(31,919		)	(52,057		)	(63,199		)
Other	(57		)	5			78			5
Other expense, net	(25,105		)	(31,914		)	(51,979		)	(63,194		)

INCOME (LOSS) BEFORE EXTRAORDINARY ITEM AND CUMULATIVE EFFECT ADJUSTMENT	13,073			(8,380		)	17,624			(23,827		)
EXTRAORDINARY ITEM — early extinguishment of debt	—			—			(3,319		)	—
INCOME (LOSS) BEFORE CUMULATIVE EFFECT ADJUSTMENT	13,073			(8,380		)	14,305			(23,827		)
CUMULATIVE EFFECT ADJUSTMENT	—			—			—			137
NET INCOME (LOSS))	13,073			(8,380		)	14,305			(23,690		)
PREFERRED STOCK DIVIDEND	(14,556		)	(13,250		)	(28,771		)	(26,197		)
NET LOSS APPLICABLE TO COMMON SHARES	$	(1,483	)	$	(21,630	)	$	(14,466	)	$	(49,887	)

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING, BASIC AND DILUTED	11,921			11,858			11,919			11,849

NET LOSS PER BASIC AND DILUTED SHARE:
Net loss per share applicable to common shares before extraordinary item and cumulative effect adjustment	$	(0.12	)	$	(1.82	)	$	(0.93	)	$	(4.22	)
Extraordinary item — early extinguishment of debt	—			—			(0.28		)	—
Cumulative effect adjustment	—			—			—			0.01
Net loss per basic and diluted share	$	(0.12	)	$	(1.82	)	$	(1.21	)	$	(4.21	)

COMPREHENSIVE LOSS:
NET LOSS APPLICABLE TO COMMON SHARES	$	(1,483	)	$	(21,630	)	$	(14,466	)	$	(49,887	)
Hedging activity:
Cumulative effect of SFAS No. 133	—			—			—			(5,917		)
Mark to market adjustment, net	(1,235		)	1,244			3,153			(9,602		)
TOTAL COMPREHENSIVE LOSS	$	(2,718	)	$	(20,386	)	$	(11,313	)	$	(65,406	)

RURAL CELLULAR CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

(Unaudited)

	Six months ended June 30,
	2002			2001
OPERATING ACTIVITIES:
Net income (loss)	$	14,305		$	(23,690	)
Adjustments to reconcile to net cash provided by operating activities:
Depreciation and amortization	39,509			54,587
Extraordinary item — early extinguishment of debt	3,319			—
Change in financial instrument valuation	4,616			1,987
Other	2,371			250
Change in other operating elements (excluding the effects of acquisitions):
Accounts receivable	(5,801		)	(8,061		)
Inventories	2,251			1,557
Other current assets	(675		)	25
Accounts payable	(4,558		)	(16,310		)
Advance billings and customer deposits	1,794			1,230
Other accrued expenses	7,035			(6,749		)
Net cash provided by operating activities	64,166			4,826

INVESTING ACTIVITIES:
Purchases of property and equipment, net	(25,630		)	(18,235		)
Purchases of wireless properties, net of cash acquired	—			(142,083		)
Proceeds from sale of REC/RTB stock	650			—
Assets held for sale	—			(35,478		)
Other	51			(404		)
Net cash used in investing activities	(24,929		)	(196,200		)

FINANCING ACTIVITIES:
Proceeds from issuance of common stock related to employee stock purchase plan and stock options	330			919
Proceeds from issuance of long-term debt	342,550			315,350
Repayments of long-term debt	(360,208		)	(120,650		)
Proceeds from swaption	—			8,720
Payments of debt issuance costs	(10,244		)	(4,341		)
Other	(101		)	154
Net cash (used in) provided by financing activities	(27,673		)	200,152
NET INCREASE IN CASH	11,564			8,778
CASH, at beginning of period	1,995			2,205
CASH, at end of period	$	13,559		$	10,983

The following table presents RCC’s operating data for the periods indicated.

	Unaudited
Consolidated Operating Data:	Three months ended June 30,						Six months ended June 30,
	2002			2001			2002			2001
				(in thousands)
EBITDA(1)	$	58,711		$	51,223		$	109,112		$	93,954
Interest expense, net	(25,048		)	(31,919		)	(52,057		)	(63,199		)
Capital expenditures	(16,866		)	(10,980		)	(25,630		)	(18,235		)
Free cash flow(2)	$	16,797		$	8,324		$	31,425		$	12,520

Penetration(3)(4)	11.1		%	10.4		%	11.1		%	10.4		%
Retention(5)	98.5		%	98.2		%	98.3		%	98.1		%

Average monthly revenue per customer(6)	$	60		$	60		$	57		$	57
Net average monthly revenue per customer including incollect cost(6)	$	53		$	53		$	50		$	49
Acquisition cost per customer(7)	$	343		$	270		$	331		$	258
Acquisition cost per customer(7) (excluding phone service depreciation)	$	262		$	242		$	258		$	239

Customers at period end
Voice:
Postpaid cellular							606,042			574,772
Prepaid cellular							34,445			26,384
Wireless Alliance							16,184			13,895
Wholesale							42,252			23,384
Total customers							698,923			638,435

POPs(3)
RCC Cellular							5,161,000			5,161,000
Wireless Alliance							732,000			732,000
Total POPs							5,893,000			5,893,000

(1) EBITDA is the sum of earnings before interest, taxes, depreciation and amortization and is utilized as a performance measure within the wireless industry. EBITDA is not intended to be a performance measure that should be regarded as an alternative for other performance measures and should not be considered in isolation. EBITDA is not a measure of financial performance under generally accepted accounting principles and does not reflect all expenses of doing business (e.g., interest expense, depreciation). Accordingly, EBITDA should not be considered as having greater significance than or as an alternative to net income or operating income as an indicator of operating performance or to cash flows as a measure of liquidity. Also, as calculated above, EBITDA may not be directly comparable to similarly titled measures reported by other companies.

(2) Free cash flow is defined as EBITDA less net interest expense and capital expenditures.

(3) Updated to reflect 2000 U.S. Census Bureau data.

(4) Represents the ratio of wireless voice customers, excluding wholesale customers, at the end of the period to population served (“POPs.”)

(5) 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.

(6) Determined for each period by dividing the sum of access, airtime, roaming, long distance, features, connection, disconnection, and other revenues for such period by the monthly 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), and dividing that result by the number of months in such period.

(7) 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.