SureWest Communications said Monday it has sold its directory publishing business for $110 million, following the lead of other telecommunications firms that have exited the yellow pages business.

In announcing the sale of the unit to GateHouse Media Inc., SureWest Chief Executive Steve Oldham said in a prepared statement that the deal will allow the Roseville-based company to "focus on our core business of being a full-service integrated communications provider."

Established in 1996, the directory business has been a reliable revenue generator for SureWest, producing sales of $17.4 million in 2005 and $16.3 million in 2004. The company said the business is profitable but declined to disclose income details.

After some capital adjustments, SureWest will net about $106.5 million from the sale, but the company faces a federal and state tax bite of up to 45 percent, said Karlyn Oberg, the company's director of investor relations.

Oberg said SureWest wanted to focus efforts on deploying a fiber-optic-based telephone, Internet and cable television system throughout the Sacramento region.

She said fewer than 30 SureWest employees work in the directory business, primarily in sales and production. They will now be employed by GateHouse, which specializes in community newspapers and other publications and is based in Fairport, N.Y.

GateHouse officials could not be reached for comment. But in a prepared statement, Chief Executive Mike Reed said GateHouse was attracted by the SureWest directories' strong advertising content and growth potential.

The company, which has a market capitalization of $720 million, has been on a buying spree since it went public in October, purchasing newspapers in upstate New York and southwestern Massachusetts.

GateHouse will publish SureWest's white and yellow page directories. The yellow pages have more than 7,000 advertisers and are distributed to about 580,000 business and homes in the Sacramento area, Oberg said.

The sale follows similar moves by other telecommunications firms. In 2003, Qwest Communications sold its directory business to two investment firms for $7 billion. In November, Verizon Communications spun off its directory business in a stock deal worth $4.1 billion.

Analyst Christopher King said the move makes sense for SureWest.

"Directories are certainly not a strategic part of SureWest's business," said King, with Stifel Nicolaus & Co. in Baltimore.

"This gives them additional financial flexibility. ... It will allow them to deploy capital as they see fit."

Wall Street was less impressed, sending SureWest stock down 38 cents to $27.27 on the Nasdaq market. GateHouse stock climbed 18 cents to close at $18.40 on the New York Stock Exchange