Kenneth R. MeyersExecutive Vice President and CFO, U.S. Cellular

Sandra L. Helton Executive Vice President and CFO, TDS

Lehman BrothersWorldwide Wireless and Wireline Conference

June 2, 2005

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Safe HarborSafe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Information discussed in today’s presentation, except historical and factual information, may represent forward-looking statements. This includes all statements about the company’s plans, beliefs, estimates and expectations. These statements are based on current estimates and projections, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: changes in circumstances or events that may affect the ability of USM to launch the operations of the licensed areas involved in the AT&T Wireless transaction completed in August 2003; the ability of U.S. Cellular to successfully manage and grow the operations of the Chicago MTA and newly launched markets; changes in the overall economy; changes in competition in the markets in which U.S. Cellular and TDS Telecom operate; changes due to industry consolidation; advances in telecommunications technology, including Voice over Internet Protocol; the impact of local number portability; changes to access and pricing of unbundled network elements; changes in the telecommunications regulatory environment; changes in the value of investments, including variable prepaid forward contracts; an adverse change in the ratings afforded TDS and U.S. Cellular debt securities by nationally accredited ratings organizations; pending and future litigation; acquisitions/divestitures of properties and/or licenses; and changes in customer growth rates, average monthly service revenue per unit, churn rates, roaming rates and the mix of products and services offered in U.S. Cellular and TDS Telecom markets. Investors are encouraged to consider these and other risks and uncertainties that are discussed in documents filed by TDS and U.S. Cellular with the Securities and Exchange Commission.

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• 7th largest wireless service provider; 2nd largest regional carrier

• Total population - 45 million

• 5.1 million customers

• 11.5% market penetration

• Focused on exceptional customer experience

• Admirably low churn rate

• Pervasive distribution… 1,800 points of presence

• Extensive network ... 4900 cell sites

• Well positioned in our markets

U.S. Cellularas of 3/31/05

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5

Postpay Churn < 2%Seven-year track record… and still strong

1.9% 1.9%

1.8%1.7%

1.8%

1.5%1.5%

1.0%

1.1%

1.2%

1.3%

1.4%

1.5%

1.6%

1.7%

1.8%

1.9%

2.0%

1998 1999 2000 2001 2002 2003 2004

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Consumers Union Analysis of FCC Data - March 28, 2005

(complaints per million customers for CY2004)

U.S. Cellular 39

Verizon Wireless 76

Alltel 76

Nextel 103

Sprint PCS 168

T-Mobile 185

Cellular One 264

AT&T / Cingular 289

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• Positioned as a regional carrier

• Differentiate by providing an exceptional customer experience:

Network quality Broad distribution Dedicated people focused on the customer

• Utilize CDMA 1X technology in all markets

• Strategically strengthen regional footprint

U.S. Cellular Strategy

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Q1 2005 Financial HighlightsU.S. Cellular – March 31, 2005

1Q 05 1Q 05

Service revenues $ 668.8 M $619.4 M + 8% Operating income $ 36.2 M $28.3 M + 28%

EBITDA $ 163.5 M $142.0 M + 15%

Customer units 5.1M 4.5M + 13%

Churn - postpay 1.5% 1.3%

Retail ARPU $44.28 $46.16

MOU 584 491

Cell sites 4899 4122

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Strengthening the Footprint• Acquired Chicago market – 8/02

• Exchanged wireless properties with AT&T Wireless (now Cingular) – 8/03

• Sold:• Daytona Beach to MetroPCS – 12/04• Two small markets and investment interests

to Alltel – 12/04• South Texas markets to AT&T Wireless – 2/04

• Acquired Missouri 14 market – 4/05

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• Excellent fit with USM’s strategy:• Strengthens regional footprint through

acquisitions or trades• Builds on strengths and exit other markets

• Built out and launched 3 markets in 2004:• Oklahoma City; Lincoln, Neb. and

Portland, Maine

• Expect to launch St. Louis market in 3Q ‘05

AWE (Cingular) Property ExchangeImproved competitive position in Midwest and Northeast markets

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Divestitures Exited markets not strategic to company’s long-term success

• South Texas to AWE - Feb. 2004; $97 M • 25 MHz licenses; 1.3 M pops, 150 cell sites and

76,000 customers

• High prepaid mix and heavy roaming market

• Alltel sale - Dec. 2004; $81 M • Two 25 MHz operating markets in FL and OH

• Seven small investment interests in Ohio, N.C., Miss., Wis. – 268,000 pops

• Daytona Beach to MetroPCS - Dec. ’04; $8.5 M• 20 MHz Block C license

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•

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Auction 58

• Participated through partner Carroll Wireless

• Carroll Wireless highest bidder for 17 licenses with a population of 14.4 million. Licenses are in 11 states and include:• Oklahoma City• Portland, Maine• Indianapolis

• All licenses complement U.S. Cellular’s existing footprint. Total bid $130M net.

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CDMA 1X Initiative

• Improved voice capacity and coverage; cost-effective use of wireless spectrum

• Enables offering of high-speed data products

• Completed the 3-year project in 2004

• Ahead of schedule, below planned cost

• Total cost to build CDMA ... ≈ $300 million

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Data – easyedgeSM

• easyedgeSM Phone Download Applications (BREWTM)

• Applications: games, news, traffic, calendar

• Launched nWebSM Nov. 2004 – enables Internet access

• Launched AOL® Instant MessengerTM service March 2005

• easyedgeSM Picture Messaging (MMS)

• Take, send or receive photos

• easyedgeSM Wireless Modem Service

• Wireless Internet access for laptops; e-mail; calendar

• Available in select areas to business customers

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Service Enhancements in 2005• easyedgeSM

• Enabling easyedge customers to send images to non-U.S. Cellular customers

• “Push-to-talk service

• Planning to launch in 2005 for business and retail customers

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EVDO Trials

• Currently conducting technical trials

• As with any new technology, U.S. Cellular wants to ensure that:

• Technology is supported by value-added applications customers will want and value

• Ready to fully support the new technology and any new services or applications it supports

• Plan to launch service trials in 2006

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USM 2005 Outlook(Revised March 18, 2005)

• Service revenues … +/- $2.9 B

• Net additions … 475,000 to 525,000

• Dep, amort & accretion … $530 M

• Operating Income … $180 to $220 M

• CAPX … $570 to $610 M

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USM: Excellent Prospects

• Proven strategy

• Financially strong

• Extensive network and distribution

• Terrific people; dynamic organization

• Positive momentum

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TDS

• Diversified telecommunication companywith 6.3 million customers in 36 states

• U.S. Cellular (82% owned) – wireless

• TDS Telecom (100% owned) – wireline• ILEC and CLEC operations

• Fortune 500 company

• Strong balance sheet

• Investment grade

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Five-Year Track RecordYear Ended December 31

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

2000 2001 2002 2003 2004

Operating Revenues Operating Cash Flow

$ in

Mill

ion

s

12/31/04 - Five Year CAGR Revenues 11.9%

EBITDA 6.6%

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• 7th largest independent U.S. telco

• Rural company status

• 734,000 access line equivalents in 28 states

• 98,200 Internet (dial-up) accounts

• 49,300 DSL – mostly residential

• 302,400 long-distance lines

• Vertical services

TDS Telecom - ILEC

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TDS Telecom - CLEC• Principally a facilities-based company in

five states …89% on-switch

• 438,000 access line equivalents

• Targeted selling with emphasis on small and medium businesses

• Deep penetration in chosen markets

• Provisions principally with SBC

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Q1 2005 Financial HighlightsTDS Telecom – March 31, 2005

(millions)

ILEC 1Q 05 1Q 05 Revenues $161.8 $159.1 + 1.7% Operating Income 40.6 48.6 - 16%

CLEC Revenues $59.2 $ 54.7 + 8% Operating (loss) (1.4) (3.8) NM

Access Line Equivalents (thousands)

ILEC 734 722 + 1.6% CLEC 438 379 + 15.6%

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• Provide outstanding customer service

• Be the preferred broadband provider in its markets

• Protect and grow current markets

• Develop and market new products and services, with strong focus on data and triple-play

TDS Telecom’s Overall StrategyRepositioning as a Broadband Communications Company

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0%

10%

20%

30%

40%

600 650 700 750 800

Overall Satisfaction Index ScoreLower Higher

% L

ikel

y t

o S

wit

ch

Lo

cal

Ca

rrie

r Higher

AT&T

ALLTEL

BellSouth

CenturyTel

Cin. Bell

Comcast

Cox

Frontier MCI

Qwest

SBC

Sprint

Talk America

McLeodUSA Verizon

TDS Metrocom

TDS Telecom

Our Competitive Advantage: Customer Satisfaction

Third-Party Validation

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Fortifying and Developing Existing Markets

• Trialing new technologies …• Fiber to the Premise (FTTP) • Voice Over IP (VOIP)• Wireless data

• … toward offering robust triple-play and other new products and services

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DSL Facts - ILEC

• 81 markets, 49,300 customers, fast growth• DSL lines – up 81% YOY 2005 to 2004• Market share exceeded cable in late 2004

• Primarily consumer based

• Product bundles:• DISH satellite / DSL; long distance / DSL, etc.

• DSL modems Wi-Fi enabled

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Long Distance and Bundling

• Long distance another growth driver for the ILEC

• ILEC working for greater penetration through cross-selling and big-minute plans• LD market penetration up to 51% in 1Q05

• Product bundles – provides customers ability to customize their services• “Total Talk”

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2005 Outlook - TDS Telecom (Effective February 9, 2005)

• ILEC • Operating revenues … $655 to $665 M• Dep, amort & accretion … $135 M• Operating income … $170 to $180 M• CAPX … $120 to $130 M

• CLEC• Operating revenues … $240 to $250 M• Dep, amort & accretion … $30 M• Operating income (loss) … $(15) to $(10) M• CAPX … $30 to $35 M

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Special Common Shares

• Shareholders approved increase of shares to165 M; stock dividend to occur in May

• Provides financial and strategic flexibility

• Offers TDS potential to exchange shares for 18% of USM stock TDS does not own

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TDS: Excellent Prospects• Full-service provider with strong, established wireless and wireline operations

• Strong business units• Well positioned in existing markets• Proven business strategies focused on

customer satisfaction, network quality and competitive product offerings.

• Experienced management teams

• Financially strong

• Dedicated workforce of 11,500 people

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Reconciliation of Additional Disclosures

For the quarter ended March 31, 2005

The Operating Cash Flow amounts in the tables presented above are not determined in accordance with generally accepted accounting principles (GAAP) in the United States of America. Management uses Operating Cash Flow to evaluate the operating performance of its business, and it is a measure of performance used by some investors, security analysts and others to make informed investment decisions. Operating Cash Flow is used as an analytical indicator of income generated to service debt and fund capital expenditures. In addition, multiples of current or projected Operating Cash Flow are used to estimate current or prospective enterprise value. Operating Cash Flow does not give effect to cash used for debt service requirements, and thus does not reflect funds available for investment or other discretionary uses. Operating Cash Flow as presented herein may not be comparable to similarly titled measures reported by other companies.

Quarter Ended at March 31, 2005 U.S. Cellular ILEC CLEC Total

(Dollars in thousands)

Operating cash flow:Operating income (loss) as reported 36,237$ 40,645$ (1,442)$ 75,440$ Add:

Depreciation, amortization and accretion 127,250 34,264 7,303 168,817 Operating cash flow 163,487$ 74,909$ 5,861$ 244,257$

Quarter Ended at March 31, 2004 U.S. Cellular ILEC CLEC Total

(Dollars in thousands)Operating cash flow:

Operating income (loss) as reported 28,282$ 48,644$ (3,759)$ 73,167$ Add:

Depreciation, amortization and accretion 113,894 32,547 9,011 155,452 (Gain) on assets held for sale (143) - - (143)

Operating cash flow 142,033$ 81,191$ 5,252$ 228,476$

TDS Telecom

TDS Telecom

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U.S. Cellular Reconciliation of Service Revenues

For the quarter ended March 31, 2005

(Dollars in thousands)Quarter Ended March 31, 2004:

$ 619,382 11,546 $ 607,836

Service revenue as reported for the three months ended March 31, 2005 $ 668,792

Percentage year-over-year service revenue growth for the three months ended March 31, 2005:Based on amounts as reported 8.0%Based on pro forma service revenue for the three months ended March 31, 2004 10.0%

Service revenue as reportedLess service revenue attributed to markets sold in 2004Pro-forma service revenue for the three months ended

The pro-forma numbers above are non-GAAP financial measures as defined by SEC rules. Management believes they are useful measures to evaluate the company's performance excluding divested markets from both years' service revenues, but they should not be considered as alternatives to GAAP.

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TDS: Excellent Prospects• Full-service provider with strong, established wireless and wireline operations

• Strong business units• Well positioned in existing markets• Proven business strategies focused on

customer satisfaction, network quality and competitive product offerings.

• Experienced management teams

• Financially strong

• Dedicated workforce of 11,500 people