Northwestern Indiana Telephone Company - Page 22

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            Indiana.  NITCO provided local telephone services in these same                            
            areas.  To help Rhys and NICATV obtain the financing needed to                             
            build NICATV's cable television system, Mr. Mussman personally                             
            guaranteed the bank loan to NICATV.                                                        
                  From 1983 through 1988, NITCO's employees helped construct                           
            NICATV's cable television system.  From 1983 through about July                            
            1989, NICATV maintained its offices at the 301 North Washington                            
            Street building that it subleased from NITCO.  It further leased                           
            or subleased from NITCO a small area of cleared land located                               
            behind NITCO's office building at 205 North Washington Street and                          
            telephone pole space for cable television attachments.  In 1988                            
            and 1989, NITCO paid a total of at least $6,119.95 and $3,263.51,                          
            respectively, in utility bills at the 301 North Washington Street                          
            building.                                                                                  
                  NITCO had no ownership interest in NICATV or in NICATV's                             
            cable television facilities.                                                               
                  In 1983, Rhys, NICATV, and NITCO became involved in a                                
            dispute before the FCC concerning whether NICATV was an affiliate                          
            of NITCO.  The FCC later took the position that NICATV was a                               
            NITCO affiliate, in large part because of the extensive financial                          
            support and other assistance NICATV and Rhys received from Mr.                             
            Mussman and NITCO.  This dispute continued for a number of years                           
            and was not resolved until after Rhys sold NICATV to an unrelated                          
            party in July 1989.  The FCC proceedings and other related legal                           
            proceedings that arose from this dispute are discussed more fully                          




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