October 3, 2007

Hawaiian TelcomHawaiian Telcom

Deutsche Bank2007 Leveraged Finance Conference

Paul Sunu, CFO

2

ForwardForward--Looking StatementsLooking Statements

Certain of the statements and predictions contained in this presentation constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act. In particular, any statements, projections or estimates that include or reference the words “believes,” “anticipates,” “plans,”“intends,” “expects,” “will,” or any similar expression fall within the safe harbor for forward-looking statements contained in the Reform Act. Actual results or outcomes may differ materially from those indicated or suggested by any such forward-looking statement for a variety of reasons, including but not limited to, Hawaiian Telcom’s ability to maintain its market position in communications services, including wireless, wireline and Internet services; general economic trends affecting the purchase or supply of communication services; world and national events that may affect the ability to provide services; changes in the regulatory environment; any rulings, orders or decrees that may be issued by any court or arbitrator; restrictions imposed under various credit facilities and debt instruments; work stoppages caused by labor disputes; adjustments resulting from year-end audit procedures; and Hawaiian Telcom’s ability to develop and launch new products and services. More information on potential risks and uncertainties is available in recent filings with the Securities and Exchange Commission, including Hawaiian Telcom’s Form 10-K report. The forward-looking statements included in this presentation represent estimates as of the date on the first slide. It is anticipated that subsequent events and developments will cause estimates to change.

Company OverviewCompany Overview

4

Company HighlightsCompany Highlights

� Building on our 125 year heritage of service and innovation

• Founded in 1883 as Mutual Telephone Company

� 10th largest ILEC in the country with approximately 581K access lines

� Increased focus on customer service and product innovation

• 7 & 11Mbps High-Speed Internet

• myChoiceSM bundles

� Stabilizing back office environment

� Improved capital structure and liquidity position

� Experienced, proven and locally-based management team

5

Company StrategyCompany Strategy

Drive Core Revenue

Optimize Costs

Improve CustomerService (Stabilize Systems)

6

Company Overview Company Overview

KAUAI32,532 lines (6%)

OAHU389,158 lines (67%)

LANAI1,278 lines(<1%)

HAWAII83,072 lines (14%)

MOLOKAI3,427 lines (<1%)

MAUI71,453 lines (12%)Hawaiian Telcom is the 10th

largest ILEC in the country

• LTM 6/30/07 Results*

Revenue: $496mm

Adj EBITDA: $168mm

• 580,920 switched access lines

• 1,500 route miles of fiber and 60,000 strand miles

• 86 central offices

• 115 Class 5 switches, 21 frame relay, 15 ATM

___________________________

* Note: Results are pro forma for the sale of directories.

7

Attractive DemographicsAttractive Demographics

2006E Hawaii Statistics

Population

Households

Businesses

Household Growth: 2006E-2011E

1,283,259

433,434

55,754

5.2%

___________________________

Source: 2006 data are estimates derived from the 2000 Census provided by Claritas Inc.

2006E Household Income and Economic Growth vs. 2005

2.9%

6.2%

2.0%

3.4%

0%

2%

4%

6%

8%

Household Income Gross State/Domestic

ProductHawaii US

$56,145

$48,713

8

Oahu

Access Line ConcentrationAccess Line Concentration

A Majority of Hawaiian TelcomA Majority of Hawaiian Telcom’’s Business is Focused on Oahus Business is Focused on Oahu

Total Population

Households

Household Growth: 2006E-2011E

Median Household Income (2)

909,408

300,557

3.6%

$60,485

71%

69%

% of Statewide2006E Oahu Statistics Oahu

___________________________

Source: FCC, as of 12/31/04.

(1) Density is defined as population per square mile in territory coverage. Source: Embarq’s 4/19/06 Fixed Income Analyst Day Presentation.

(2) Based on 2005 data.

(1)Comparable Population

Density

AT&T 245

Verizon 239

Qwest 102

Embarq 85

Land Area Sq.

Miles

Population

Per Square

Mile

Access Line

Per Square

Mile

Hawaii 6,423 195 94

Oahu 597 1,468 666

9

Connections Trends Connections Trends

Total connections (000s)

Average quarterly connection decline of 1.3% over the past Average quarterly connection decline of 1.3% over the past

6 quarters6 quarters

Quarterly change (0.3%) (1.0%) (1.1%) (2.0%) (1.1%) (2.1%)

725 723 716 708 693 686 671

407 400 390 380 369 358 346

239 238 236 235 234 237 235

79 84 89 92 90 91 90

0

180

360

540

720

900

4Q'05 1Q'06 2Q'06 3Q'06 4Q'06 1Q'07 2Q'07

Residential Access Lines Business Access Lines HSI Subscribers

10

Access Line TrendsAccess Line Trends

Access line trends generally inline with comparable companiesAccess line trends generally inline with comparable companies

___________________________

Note: Peer group consists of ILEC line results from AT&T, Cincinnati Bell, Embarq, Qwest, Verizon.

Average2Q'071Q'074Q'063Q'062Q'061Q'064Q'053Q'052Q'05

0.6%(0.2%)0.0%0.5%1.4%1.3%NANANANADifference

(6.9%)(7.0%)(6.9%)(7.1%)(6.9%)(6.6%)NANANANAPeer Group Average

(6.3%)(7.3%)(6.9%)(6.6%)(5.5%)(5.3%)NANANANAHawaiian Telcom

Decline - Y-o-Y:

0.1%(0.2%)0.3%(0.3%)0.0%(0.1%)0.8%0.6%(0.1%)NADifference

(1.8%)(2.0%)(1.6%)(1.7%)(1.8%)(1.9%)(1.9%)(1.5%)(1.5%)NAPeer Group Average

(1.6%)(2.3%)(1.4%)(2.0%)(1.8%)(2.0%)(1.1%)(0.9%)(1.5%)NAHawaiian Telcom

Decline - Q-o-Q:

11

More than 20 years: NextiraOne, Voxpath Networks, Lucent Technologies

SVP, Customer Contact Centers & Wholesale Markets

Michael Brown

More than 35 years: US West, MediaOne International

SVP, Network Engineering & Operations

Harvey Plummer

More than 30 years specializing in public utilities: Founding partner of local firm Oshima Chun Fong & Chung, LLP.

SVP, General CounselAlan Oshima

More than 20 years of human resource experience: Principal Consultant with EMA, Inc., Tesoro Hawaii

VP - Human ResourcesClaire Cooper

More than 25 years: CEO Telespectra; President & COO Teleseon; XO Communications; Teleport; MFS

SVP, Sales & MarketingMichael McHale

More than 10 years: CIO at NextiraOne; Williams Communications; Trident Data Systems

VP, Chief Information OfficerLoren Tobey

More than 25 years in finance, tax, treasury, securities, and law. CFO Madison River Communications

Chief Financial OfficerPaul Sunu

More than 20 years: President and CEO of NextiraOne; President of Market Sales Operation at XO Communications

Chief Executive OfficerMichael Ruley

Industry ExperiencePositionName

Management TeamManagement Team

Stabilizing Systems & Stabilizing Systems &

Enhancing the NetworkEnhancing the Network

13

Stabilizing & Improving SystemsStabilizing & Improving Systems

� Substantial progress in the transition to standalone systems has been made over the

last twelve months

� Notable operational and systems improvements

• Hired Accenture in August 2006

• Completed IT / back office transition from BearingPoint to Accenture in May 2007

• Engaged FTI to manage the stabilization of the finance organization

• Finalized development data center move from Denver to

Honolulu in April 2007

• Commenced data synchronization activities across systems

Significant Operations/Systems Improvements

Acquisition ofHawaiianTelcom

Cutover to standalone systems

Engaged Accenture and FTI to assist in

transition

Signed application service agreement with Accenture

Finalizeddata center relocation

February‘07

August‘07

Transition from BearingPoint to

Accenture complete

April‘07

August‘06

April‘06

May ‘05

May‘07

Commenceddata

synchronization

14

Stabilizing & Improving SystemsStabilizing & Improving Systems

Order Entry

Workflow Billing

NetworkCRM Database

Provisioning Database

Billing Database

Data SynchronizationData Synchronization

� Tools have been developed to compare data across systems

� Pilot data synchronization tests have been successful in improving order flow-through and reducing billing fallout

� Commenced data synchronization activities across systems

15

Material Improvements to Customer ServiceMaterial Improvements to Customer Service

0%

25%

50%

75%

100%

Apr-06 Jun-06 Aug-06 Oct-06 Dec-06 Feb-07 Apr-07 Jun-07 Aug-07

0%

20%

40%

60%

80%

Apr-06 Jun-06 Aug-06 Oct-06 Dec-06 Feb-07 Apr-07 Jun-07 Aug-07

Meeting PUC Service Requirements

___________________________

Note: Actuals as of 8/31/07.

Calls Answered in 20 seconds

Bundle Initiated

Improving Speed to Answer

Reducing Abandonment RateMonthly Residential Abandonment Rate

Bundle Initiated

AccentureIntroduced

AccentureIntroduced

20%

83%

48%

3%

16

Stabilizing and Enhancing the Billing SystemStabilizing and Enhancing the Billing System

0%

15%

30%

45%

60%

Apr-06 Jun-06 Aug-06 Oct-06 Dec-06 Feb-07 Apr-07 Jun-07 Aug-07

Meeting PUC Service Requirements

___________________________

Note: Actuals as of 8/31/07.

Reducing Billing Fallout

Improving Order Flow-Through

% of Orders with Billing Fallout

Bundle Initiated

Accenture Introduced

Order Flow-Through by Month

Accenture Introduced

Bundle Initiated

0%

25%

50%

75%

100%

Apr-06 Jun-06 Aug-06 Oct-06 Dec-06 Feb-07 Apr-07 Jun-07 Aug-07

28%

54%

5%

39%

89%

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Enhancing the NetworkEnhancing the Network

� Shortening loop lengths and grooming the network

� 88% of access lines statewide are HSI eligible; 93% on Oahu

� Capable of speeds up to 11MB

Average Customer Loop Length by Island

7.4State of Hawaii

6.6Kauai

8.9Maui

9.2Big Island

6.6Oahu

Avg. LoopLength (Kilo-feet)Island

Driving Core RevenueDriving Core Revenue

19

7Mbps & 11Mbps High7Mbps & 11Mbps High--Speed InternetSpeed Internet

� 7 & 11Mbps HSI launched September 2007

• Hawaii’s Fastest Internet

• $39.99/month & $49.99/month

• Average customer inquiries up 30%

• Pull through on 3Mbps product

� Standalone HSI launched in August 2007

• Targeted winback and retention tool

• ~50% improvement in September HSI save rate

20

Product BundlesProduct Bundles

� myChoiceSM launched February 2007

• Unlimited Local and Long Distance and High-Speed Internet

� $65.95 / month incl. 3Mbps

• Savings of ~$20/month off of a la carte pricing

• 15,877 total bundles as of 2Q’07; 5% of primary access lines

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Retail Store Points of PresenceRetail Store Points of Presence

� Retail stores drive foot traffic and result in cross-selling opportunities

� Currently operating 8 retail stores strategically located in densely populated areas:• 5 Oahu, 1 Maui, 1 Big Island, 1 Kauai

� Average total customer traffic 2,600/day• 70% of traffic related to loyal bill payment customers; 30% new inquiries

22

HighHigh--Speed InternetSpeed Internet

HSI Lines (000s): 74 70 72 76 79 84 89 92 90

Opportunity to continue increasing HSI penetrationOpportunity to continue increasing HSI penetration

91

% Penetration

11% 11% 11% 12%13%

14%15% 16% 16% 16% 17%

5%

10%

15%

20%

4Q'0

4

1Q'0

5

2Q'0

5

3Q'0

5

4Q'0

5

1Q'0

6

2Q'0

6

3Q'0

6

4Q'0

6

1Q'0

7

2Q'0

7

90

23

Long DistanceLong Distance

288 290 291 290 287 291 289 283 277

Opportunity to continue increasing long distance penetrationOpportunity to continue increasing long distance penetration

LD Lines (000s):

276

% Penetration

43% 44%44% 45% 45%

46% 47% 46% 46% 47% 47%

30%

40%

50%

4Q'0

4

1Q'0

5

2Q'0

5

3Q'0

5

4Q'0

5

1Q'0

6

2Q'0

6

3Q'0

6

4Q'0

6

1Q'0

7

2Q'0

7

270

24

WirelessWireless

� A wireless service offering helps maintain

competitiveness

• Convergence, synergies with landline

� Call ChoiceSM

• Wireless / landline bundle for under $100

• MVNO affiliated with SprintPCS network

Wireless Subscribers Subscribers (000)

1.2

4.1

6.2

9.4

11.9

14.4

16.618.3

20.6

0.0

5.0

10.0

15.0

20.0

25.0

2Q'05 3Q'05 4Q'05 1Q'06 2Q'06 3Q'06 4Q'06 1Q'07 2Q'07

25

Convergence SolutionsConvergence Solutions

� Call ChoiceSM is an innovative call management and messaging service• VoIP technology seamlessly integrates your mobile and landline with your PC

• Transfer a mobile call to your landline with the click of a button

� Visual Voicemail feature• Allows access to all your voicemail (office, mobile, home) from a single account

• Voicemail is delivered via email, has text reply option, and can easily be shared

Home

Office

Home

Office

26

Optimizing Costs Optimizing Costs

� Headcount – 11% decrease in headcount since April ‘06 cutover

� Non-Recurring Costs

• 50% reduction in contingency resources since beginning of year due to systems improvements

• Transition expenses reduced from $10M in 4Q’06 to $2M in 2Q’07

� Rent, Utilities, and Other

• Outsourcing of directory assistance – transitioned directory assistance calls to Metro One; $1.2M in annual costs savings

• Softswitch installation – installed Nortel softswitch to handle interstate long distance traffic; $530K annual net EBITDA benefit

• Reduced modem fulfillment costs – switched to locally-based provider cutting both COGS cost per modem and delivery time in half

Financial ReviewFinancial Review

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Second Quarter 2007 ResultsSecond Quarter 2007 Results

� Adjusted EBITDA - first half adjusted EBITDA is flat year-over-year despite a 3% drop in revenue as a result of cost saving initiatives

� Non-recurring costs – non-recurring costs nearly cut in half

� Capital expenditures - first half capex down 36% year-over-year; recurring capexdown 35%

-2.7%$253.8$246.9

33.0%21.428.5-10.0%19.817.8-11.5%20.718.3-2.5%76.674.7-6.7%$115.3$107.6

% Growth Y-o-Y1H’061H’07

34.6%35.8%0.6%$87.8$88.3

33.918.121.2%28.4%$53.9$70.2

66.142.4

Total Revenues

OtherHigh-Speed InternetLong DistanceNetwork AccessLocal Service

Revenues

($ in millions)

% MarginAdjusted EBITDA

Non-Recurring Costs% Margin

EBITDA

CapEx

29

CapitalizationCapitalization

($ in millions) Pro Forma Sale of Directories

06/30/07 Adjustments PF Sale

Total Debt

Total High Yield Debt

12.5% Senior Subordinated Notes

9.75% Senior Fixed Rate Notes

Senior Floating Rate Notes

$1,385

$500

150

200

$150

($420)

-

-

-

-

$965

$500

150

200

$150

Financial Highlights (LTM)

Interest Expense

Adjusted EBITDA less Capex

Capex

Adjusted EBITDA

119

$119

83

$202 ($34)

83

$85

83

$168

Adj. EBITDA – Capex / Interest Expense

Adj. EBITDA / Interest Expense

Total Debt / Adj. EBITDA

Senior Debt / Adj. EBITDA

Secured Debt / Adj. EBITDA

Credit Statistics

1.0x

1.7x

6.9x

6.1x

4.4x

1.0x

2.0x

5.7x

4.9x

2.8x

Revolving Credit Facility (L+225)

Cash

25

$5

(25)

-

-

$5

Total Secured Debt

Term Loan C (L+225)

$885

860

($420)

(395)

$465

465

30

Capital ExpendituresCapital Expenditures

Total CapEx (mil.)

$ 27.8 $ 24.4$ 17.8 $ 22.5

$ 15.4 $ 18.7

$ 7.7

$ 1.7

$ 0.7$ 0.5

$ 0

$ 12.2

$ 0.0

$ 10.0

$ 20.0

$ 30.0

$ 40.0

$ 50.0

1Q'06 2Q'06 3Q'06 4Q'06 1Q'07 2Q'07

R ecurring C apEx B ack Of f ice C apEx

$40.0$26.2

$17.8$22.9

$16.1

$26.3

31

Directories Sale UpdateDirectories Sale Update

� Announced sale of directories business for $435M(1) to Local Insight Media

• Financing commitment from Welsh, Carson

• Local Insight Media owns several directories businesses:

� Cincinnati Bell Yellow Pages

� Alaska Communications Yellow Pages

� Puerto Rico & Dominican Republic Yellow Pages

� Welsh, Carson has agreed to purchase Windstream’s directory publishing business

� Proceeding according to regulatory schedule; no unanticipated issues

� Regulatory schedule should allow Hawaii PUC to render a decision no later than 1Q’08

___________________________

(1) Estimated net proceeds of $420 million after fees and expenses and tax leakage.

32

Credits & AdjustmentsCredits & Adjustments

� Credits & adjustments caused by lack of flow through in our backoffice systems and data conversion issues at cutover

• Lack of flow through led to an increased level of manual processing

• Data conversion issues at cutover caused customer records across the back office systems to be out of synch

� First quarter credits amounted to $8M and second quarter $7M

� Back office data synchronization plan under way

• Plan being executed to synchronize the key customer elements of the CRM and billing databases

• Issues are concentrated around a subset of products

� Based on amount of backlog third quarter credits could be at thesecond quarter level, but decline in the fourth quarter

33

SummarySummary

� Full-service communications provider locally branded, managed and operated

� Increased focus on customer service and product innovation

� Advanced network infrastructure capable of delivering broadband to 88% of access lines statewide; 93% on Oahu

• Speeds up to 11Mbps available to certain subscribers

� Stabilizing back office environment

� Improved capital structure and liquidity position

� Experienced, proven and locally-based management team