LEROY T. CARLSON, JR.

1

• LEROY T. CARLSON, JR.
• President and Chief Executive Officer
• Telephone and Data Systems, Inc.
• Raymond James 25th Annual
  Institutional Conference
• March 3, 2004

2
Safe Harbor
Safe 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 companys
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 AWE transaction
completed in August 2003 the ability of USM 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 USM 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 USM debt securities by
nationally accredited ratings organizations
pending and future litigation acquisitions/divest
itures 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 USM
markets. Investors are encouraged to consider
these and other risks and uncertainties that are
discussed in documents filed by TDS with the SEC.
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TDS

• Wireless U.S. Cellular (82 owned)
• Wireline TDS Telecom (ILEC and CLEC)
• TDS serves 5.5 million customers
• Strong balance sheet
• Investment grade

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U.S. CellularDec. 31, 2003

• Eighth largest wireless service provider
• Total licensed pops 46.3 million
• Serves 4.4 million customers 86 digital
• Focused on exceptional customer service
• 97 of customers postpay
• Extensive network ... 4,200 cell sites
• Broad distribution 2,300 distribution points
• Admirably low churn rate
• Well positioned given Chicago market AWE
  exchange and sale

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Post Pay Churn lt26 year track record
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U.S. Cellular Strategy

• Positioned as a regional carrier
• Differentiate with exceptional customer service
• Network quality
• Broad distribution
• Dedicated people
• Deploy CDMA 1X technology in all markets
• Strategically strengthen regional footprint

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2003 Financial Highlights U.S. Cellular Dec.
31, 2003
2003 2002 Service revenues 2.42
B 2.10 B 16 Operating income
166.6 M 281.2 M -41 EBITDA 646.8
M 632.3 M 2 Net adds
447,000 310,000 4 Q 03 4 Q 02 Churn -
postpay 1.4 1.8 Retail
ARPU 39.68 38.69 MOU
462 359 Cell sites 4,184 3,914
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Recent Accomplishments

• Completed sale of South Texas to AWE
• Early repayment of 105 M intercompany loan
• 444 M senior notes offering / credit facility
• Conversion of billing system in Chicago
• Integration of data billing platform
• Rollout of data product
• CDMA 1X overlays in Oklahoma Missouri
• Exchange of properties with AWE

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Strengthening the Footprint

• Sale of South Texas markets to ATT Wireless
  Feb. 2004
• Exchange of wireless properties with ATT
  Wireless Aug. 2003
• Acquisition of Chicago market Aug. 2002

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South Texas Sale to AWE

• Closed Feb 17, 2004
• Sold 25 MHz licenses in south Texas representing
  1.3 M pops, 150 cell sites and 74,000 customers
• Example of strategy to exit those markets not
  strategic to companys long-term success
• High prepaid mix and heavy roaming market
• Received 98 M in cash to be used to pay down
  debt and other corporate working purposes

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USM AWE Property Exchange

• Announced March 2003
• First tranche closed August 2003
• Excellent fit with USMs strategy
• To strengthen its regional footprint through
  
• acquisitions or trades
• To build on strengths and exit other markets
• Opportunity to substantially improve competitive
  position in Midwest and Northeast markets

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Chicago Update

• Rapid increases in awareness
• Market share up year-over-year
• Enhancing network
• Heavy focus on employee training
• Increasing distribution points

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• easyedgeSM Phone Service - BREWTM technology
  ring tones, games, entertainment picture
  transfer breaking news
• easyedgeSM Wireless Modem Service - Internet
  access for laptop or PDA email, calendars,
  information services and corporate resources

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CDMA 1X Initiative

• Ahead of schedule and below planned cost
• 3 years to complete (2002 - 2004)
• Total cost to build CDMA ... 385 - 410 M
• 265 M spent in 2002 - 2003
• Midwest and New England markets are now CDMA 1X
• Redeploying TDMA equipment

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WNP Update

• Well prepared for WNP
• Aggressive retention programs in place in core
  markets
• Aggressive acquisition programs in newer markets
• Business as usual satisfied customers
• More port-ins than port-outs since Nov. 24

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USM 2004 Outlook

• Service revenues 2.5 B
• Net additions 325,000 to 350,000
• Dep, amort accretion 470 to 490 M
• Operating Income 210 to 250 M
• CAPX 610 to 630 M
• All in churn 2

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TDS Telecom - ILEC

• 7th largest independent U.S. telco
• Rural company status
• 116 ILEC service locations
• 722,200 access line equivalents
• 112,900 ISP accounts 23,600 DSL
• 230,500 LD (resale) customers
• Vertical services

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CLEC Operations

• Principally a facilities-based company in five
  states 85 on-switch
• 365,000 access line equivalents
• Targeted selling
• Small and medium businesses 63
• Communication-intensive residential 37
• Focus on one RBOC for provisioning

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Strategic Initiatives

• Market Development
• Grow through a combination of
• acquisition, build-out variations and new
• technologies in CLUSTERS
• Market Fortification
• Proactively address wireless substitution
• Increase market share, penetration
• and profitability of our high-speed data
  product line
• Develop new products and services
• Grow CLEC within its existing markets

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Strategic Initiatives (cont.)

• Public Policy Advocacy
• Champion TDSs position to ensure
• favorable regulatory treatment
• Process Productivity Improvement
• Create efficiencies by optimizing cross-
• functional processes

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New Initiatives

• Bundling
• DISH Network
• TDS Accelerator better Internet
• download performance

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2003 Financial HighlightsTDS Telecom Dec. 31,
2003

• (millions)
• ILEC 2003 2002
• Revenues 652.8 626.8 4
• Operating Income 174.9 167.9
  4
• CLEC
• Revenues 213.5 176.6 21
• Operating (loss) (26.0)
  (62.7) 59
• Access Line Equivalents (thousands)
• ILEC 722.2 711.2 2
• CLEC 364.8 291.4 25

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2004 Outlook - TDS Telecom

• ILEC
• Operating revenues 640 to 650 M
• Dep, amort accretion 135 M
• Operating income 170 to 180 M
• CAPX 105 M
• CLEC
• Operating revenues 250 to 260 M
• Dep, amort accretion 40 M
• Operating income (loss) (30) to (20) M
• CAPX 45 M

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TDS Financial Objectives

• Grow revenues ? market growth (10 -
  15 annually)
• Return on capital ? WACC
• Valuation/shareholder returns ? comparable
  companies
• Maintain strong investment-grade rating

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Debt Ratings...Investment Grade!
TDS USM Moodys Investment
Service Baa1 Baa1 Standard Poors
A- A- Fitch A- A- TDS debt/equity at
12/31/03 35.8 USM debt/equity at
12/31/03 27.9 Our debt ratings are several
levels above non-investment grade
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Stock Repurchase

• 3 million share authorization previously in
  place
• At Dec 31, 2003 repurchased 1,960,900 shares
• avg price of 47.10 total of 92.4 M
• Continue, given market conditions

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TDS Excellent ProspectsU.S. Cellular TDS
Telecom are strong companies

• 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 10,900 people
• Financially strong

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Reconciliation of Additional Disclosures For
the full year ended Dec.31, 2003
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.
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LEROY T. CARLSON, JR. President and Chief
Executive Officer Telephone and Data Systems,
Inc. Raymond James 25th Annual
Institutional Conference March 3, 2004