CIBC Communication and CIBC Communication and Technology ConferenceTechnology Conference

David A. WittwerDavid A. WittwerExecutive Vice President – Staff Operations and Executive Vice President – Staff Operations and Chief Financial OfficerChief Financial Officer

James W. ButmanJames W. ButmanPresident – CLEC Business Units President – CLEC Business Units

Safe HarborSafe HarborSafe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: All information set forth in this news release, except historical and factual information, represents 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 start up 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; changes in the overall economy; changes in competition in the markets in which TDS and U.S. Cellular operate; advances in telecommunications technology; changes brought about by the implementation of local number portability; changes in the telecommunications regulatory environment; changes in the value of investments, including variable prepaid forward contracts; changes in the capital markets that could adversely impact the availability, cost and terms of financing; 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; changes in customer growth rates, average service revenue per unit, churn rates, roaming rates and the mix of products and services offered in TDS and U.S. Cellular markets. Investors are encouraged to consider these and other risks and uncertainties that are discussed in documents filed by TDS with the Securities and Exchange Commission.

TDS OverviewTDS Overview Diversified telecommunication company Diversified telecommunication company

with 5.6 million customerswith 5.6 million customers

U.S. Cellular (82% owned) - wirelessU.S. Cellular (82% owned) - wireless TDS Telecom (ILEC and CLEC) – wirelineTDS Telecom (ILEC and CLEC) – wireline

Wireline Operations – 1969Wireline Operations – 1969

U.S. Cellular founded – 1983U.S. Cellular founded – 1983

CLEC Operations commenced - 1998CLEC Operations commenced - 1998

Fortune 500 company Fortune 500 company

S & P Mid-Cap index ….# 60S & P Mid-Cap index ….# 60

Strong balance sheetStrong balance sheet

Investment gradeInvestment grade

TDS Overview (cont.)TDS Overview (cont.)

Debt Ratings...Debt Ratings...Investment Grade! *Investment Grade! *

TDS USMMoody’s Baa1 Baa1

Standard & Poor’s A - A -

Fitch A - A -

TDS debt/capital @ 3/31/04 37 %USM debt/capital @ 3/31/04 30 %

* Our debt ratings are several levels above non-investment grade

Equivalent Access Lines Equivalent Access Lines Largest Concentrations at YE 2003Largest Concentrations at YE 2003

LinesLines % of total% of total

WisconsinWisconsin 161,700161,700 22.422.4

TennesseeTennessee 111,500111,500 15.415.4

GeorgiaGeorgia 55,20055,200 7.67.6

New HampshireNew Hampshire 39,00039,000 5.45.4

MinnesotaMinnesota 37,60037,600 5.25.2

IndianaIndiana 34,60034,600 4.84.8

MaineMaine 28,80028,800 4.04.0

AlabamaAlabama 28,70028,700 4.04.0

7th largest independent U.S. telco7th largest independent U.S. telco

Rural company statusRural company status

116 ILEC service locations116 ILEC service locations

≈ ≈ 78% residential … 22% SME78% residential … 22% SME

TDS Telecom - ILECTDS Telecom - ILEC

722,400 access line equivalents 722,400 access line equivalents … up 1.2 % yy… up 1.2 % yy

27,300 DSL customers … up 27,300 DSL customers … up 113113 % yy % yy

113,600 ISP accounts 113,600 ISP accounts

266,300 LD (resale) lines … 43.7 % 266,300 LD (resale) lines … 43.7 % penetrationpenetration

Vertical servicesVertical services

TDS Telecom – ILEC (cont.)TDS Telecom – ILEC (cont.)

Provide outstanding customer service

Protect and grow current markets

Develop and market new products and services

TDS Telecom’s Overall StrategyTDS Telecom’s Overall Strategy

0%

5%

10%

15%

20%

25%

30%

35%

40%

80 85 90 95 100 105 110 115 120 125

Our Competitive Advantage: Our Competitive Advantage: Customer SatisfactionCustomer Satisfaction

Third-Party ValidationThird-Party Validation

%L

ike

ly t

o S

witc

h

Lo

cal C

arr

ier

Avg

= 2

0%

Lower

Lower HigherThird-Party 2003 Customer Satisfaction

Survey Results

(Avg = 100)

Higher

Qwest

ALLTEL

AT&T

BellSouth

CenturyTel

CinBell

Frontier/Citizens

AT&T BroadbandMcLeod

MCI WorldCom

SBC

Verizon

Sprint

TDS

CoxTalk America

Strategic Focus Strategic Focus Market DevelopmentMarket Development

Grow in CLUSTERS through combinationGrow in CLUSTERS through combination of acquisition, build-out variations and of acquisition, build-out variations and new technologies new technologies

Market FortificationMarket Fortification Proactively address wireless substitutionProactively address wireless substitution Increase market share, penetration Increase market share, penetration and profitability of high-speed data and profitability of high-speed data

product line product line Develop new products and servicesDevelop new products and services Grow CLEC within its existing marketsGrow CLEC within its existing markets

Strategic Focus (cont.)Strategic Focus (cont.)

Public Policy AdvocacyPublic Policy Advocacy Champion TDS’s position to ensure Champion TDS’s position to ensure favorable regulatory treatmentfavorable regulatory treatment

Process & Productivity ImprovementProcess & Productivity Improvement Create efficiencies by optimizing cross-Create efficiencies by optimizing cross- functional processesfunctional processes CLEC leverages ILEC infrastructureCLEC leverages ILEC infrastructure

ILEC Current IssuesILEC Current Issues Revenue growth driversRevenue growth drivers

Data servicesData services Long distance penetrationLong distance penetration New services leveraging high-speed connectionNew services leveraging high-speed connection

Changing TechnologyChanging Technology (Voice over IP)(Voice over IP) – VOIP – VOIP Fixed WirelessFixed Wireless (Fiber to the premise)(Fiber to the premise) - FTTP - FTTP

RegulatoryRegulatory

(Wireless Number Portability)(Wireless Number Portability) - WNP - WNP

11stst Quarter 2003 Financial Quarter 2003 Financial HighlightsHighlights

TDS Telecom – March 31, 2004TDS Telecom – March 31, 2004

ILECILEC 11stst Qtr ‘04 Qtr ‘04(millions)(millions)

11stst Qtr ‘03 Qtr ‘03(millions) (millions)

RevenuesRevenues $159.1$159.1 $159.6$159.6 (0.3) %(0.3) %

Operating ExpensesOperating Expenses 110.5 110.5 114.2114.2 (3.2) %(3.2) %

Operating IncomeOperating Income 48.648.6 45.4 45.4 +7.1 %+7.1 %

Capital SpendingCapital Spending $17.6 $17.6 $ 15.4$ 15.4

2004 Outlook - TDS Telecom2004 Outlook - TDS TelecomILECILEC

Operating revenues … $640 to $650 MOperating revenues … $640 to $650 M

Dep. & Amortization … $135 MDep. & Amortization … $135 M

Operating income … $170 to $180 MOperating income … $170 to $180 M

CAPX … CAPX … ≈≈ $105 M $105 M

CIBC Communication and CIBC Communication and Technology ConferenceTechnology Conference

James W. ButmanJames W. ButmanPresident – CLEC Business Units President – CLEC Business Units

TDS Telecom CLEC OperationsTDS Telecom CLEC Operations

CLEC OperationsCLEC Operations

Principally a facilities-based company in Principally a facilities-based company in five states …85% on-switchfive states …85% on-switch

378,800 access line equivalents 378,800 access line equivalents

Targeted selling Targeted selling SME 63 % Residential 37 %SME 63 % Residential 37 % Sales force drivenSales force driven

1st Quarter 2003 Financial Highlights1st Quarter 2003 Financial HighlightsTDS Telecom – March 31, 2004TDS Telecom – March 31, 2004

CLECCLEC 1st Qtr ’041st Qtr ’04

(millions)(millions)

1st Qtr ’031st Qtr ’03

(millions)(millions)

RevenuesRevenues $ 54.7$ 54.7 $ 52.4$ 52.4 +4.0 %+4.0 %

Operating ExpensesOperating Expenses 49.549.5 49.8 49.8 (.6) %(.6) %

Dep. & Amortization Dep. & Amortization 9.09.0 8.0 8.0 +12.2 %+12.2 %

Operating (loss) Operating (loss) (3.8)(3.8) (5.4)(5.4) +30.0 %+30.0 %

Capital SpendingCapital Spending 6.56.5 3.7 3.7

Access Line EquivalentsAccess Line Equivalents (thousands)(thousands)

CLECCLEC 378.8378.8 303.9303.9 +25.0%+25.0%

CLEC Current IssuesCLEC Current Issues

Revenue growth driversRevenue growth drivers SMESME High speed dataHigh speed data BundlingBundling Deeper penetration of existing marketsDeeper penetration of existing markets

Changing technologyChanging technology VOIPVOIP Fixed WirelessFixed Wireless FTTPFTTP

RegulatoryRegulatory

2004 Outlook - TDS Telecom2004 Outlook - TDS TelecomCLECCLEC

Operating revenues … $250 to $260 MOperating revenues … $250 to $260 M

Dep. and Amortization … $40 MDep. and Amortization … $40 M

Operating income (loss) … $(30) to $(20) MOperating income (loss) … $(30) to $(20) M

CAPX … CAPX … ≈ ≈ $45 M$45 M

Reconciliation of Additional Disclosures Reconciliation of Additional Disclosures For the quarter ended March 31, 2004For the quarter ended March 31, 2004

The Operating Cash Flow amounts in the tables presented above are not determined in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). 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.

(Dollars in thousands)

Quarter Ended at March 31, 2004 ILEC CLEC Total

Operating cash flow:

Operating income (loss) as reported 48,644$ (3,759)$ 44,885$

Add:

Depreciation, amortization and accretion 32,547 9,011 41,558

Operating cash flow 81,191$ 5,252$ 86,443$

(Dollars in thousands)

Quarter Ended at March 31, 2003 ILEC CLEC Total

Operating cash flow:

Operating income (loss) as reported 45,416$ (5,361)$ 40,055$

Add:

Depreciation and Amortization 33,619 8,031 41,650

Operating cash flow 79,035 2,670 81,705

TDS Telecom

TDS Telecom

TDS: Excellent ProspectsTDS: 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

Dedicated workforce of 10,700 people

Financially strong