SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 3. Securities and Investments SHENANDOAH TELECOMMUNICATIONS COMPANY ■  24 Changes in the unrealized gains (losses) on available-for-sale securities during the years ended December 31, 2003, 2002 and 2001 reported as a separate component of shareholders’ equity are as follows: There were no gross realized gains on available-for-sale securities included in income in 2003 or 2002, while there were $17.7 million for 2001. Gross realized losses included in income in 2003, 2002 and 2001 were $3 thousand, $9.0 million and $3.0 million, respectively. In 2002, the Company liquidated its holdings of VeriSign, Inc, fo r proceeds of $2.8 million and a realized loss of $9.0 million. The VeriSign stock was valued at $38 per share at December 31, 2001, and declined over the ensuing months to approximately $6 per share in early July 2002. The Company liquidated all of its holdings in the stock early in the third quarter 2002. The Company’s original investment in VeriSign’s predecessor companies was approximately $1.0 million. Total proceeds from all sales of stock in VeriSign and its predecessor companies were $8.1 million, or more than eight times the original investment. . During 2001, the Company liquidated its holdings of Loral Space and Communications, LTD and ITC^DeltaCom, Inc. for proceeds of $0.2 million and a realized loss of $1.4 million. Additionally, the Company sold 130,000 shares of Illuminet Holdings, Inc. (Illuminet) for proceeds of $5.3 million and a realized gain of $5.0 million. In September 2001, Illuminet notified the Company that VeriSign, Inc. (VeriSign) made an offer to acquire Illuminet. The Company received VeriSign stock valued at $13.2 million, for the Illuminet investment, and based on the fair value of the new asset received, recorded a realized gain of $12.7 million in 2001 on the transaction through net gain on investments in the other income (expense) section of the income statement. Subsequent to the close of the transaction, the VeriSign stock declined in value and the Company recognized an impairment of $1.5 million, as management viewed the decline to be other than temporary. Available-for-sale securities at December 31 consist of the following: The Company has three classifications of investments; available for sale securities, investments carried at cost, and equity method investments. See Note 1 for specific definitions of each classification of investment. The following tables present the investments of the Company for the three-year period ended December 31, 2003: Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Fair Value (in thousands) 2003 Deutsche Telekom, AG $ 85 $ 64 $ - $ 149 Other 73 - 23 50 $ 158 $ 64 $ 23 $ 199 2002 Deutsche Telekom, AG $ 85 $ 20 $ - $ 105 Other 73 - 27 46 $ 158 $ 20 $ 27 $ 151 2001 VeriSign, Inc. $11,798 $ - $ - $11,798 Deutsche Telekom, AG 85 10 - 95 Other 74 58 - 132 $11,957 $ 68 $ - $12,025 $ $ $ $ $ $