Findings of Fact

1. Pinnacles is a local exchange telephone company providing service to portions of San Benito County.

2. Rex Bryan held voting control and was president of Pinnacles until his death in December 1999.

3. Rex Bryan's eldest son, Steven R. Bryan, has succeeded to the presidency of the utility and will assume voting control.

4. Upon approval of the transfer of control to Steven R. Bryan, the application seeks approval, prospectively, of a transfer of control from Steven R. Bryan to Bryan Family, Inc., a California corporation and holding company.

5. The officers and directors of Bryan Family, Inc., are the same as the officers and directors of Pinnacles.

6. The proposed changes in control will have no adverse effect on any member of the public.

7. There will be no change in rates, terms or conditions of service as a result of the proposed changes in control.