Annual Meeting of Shareholders May 8, 2003. LeRoy T. Carlson, Jr. President and Chief Executive Officer Telephone and Data Systems, Inc.

Annual Meeting of ShareholdersMay 8, 2003

LeRoy T. Carlson, Jr.

President and Chief Executive OfficerTelephone and Data Systems, Inc.

Safe HarborAll 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 acquire or, if it acquires, to start up the operations of the properties involved in the AWE transaction; 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 operates; advances in telecommunications technology; changes in the telecommunications regulatory environment; changes in the value of investments, including variable prepaid forward contracts; changes in the capital markets that could restrict the availability of financing; 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’s markets. Investors are encouraged to consider these and other risks and uncertainties that are discussed in documents filed by TDS with the SEC.

• Acquisition of Chicago market closed Aug. 7, 2002

• Brand launched Nov. 12, 2002

• Brand positioning focuses on customer service

• Initial billing system conversion completed

• Network upgrade to 1X; built 20 new towers

• 44 new company & exclusive dealer locations opened

• Critical customer service functions transferred from 3rd party to U.S. Cellular associates

Chicago Acquisition

Chicago’s Hometown Player

• $400-$450 M investment over 3 years

• STATUS:• 1X upgrade completed in Iowa, Southern &

Eastern Wisconsin, and Northern Illinois• Chicago CDMA upgraded to 1X• Markets representing 75% of population now

covered with CDMA• Costs at or below original estimates• No significant impact on current customers

CDMA Conversion

• Announced March 10, 2003

• Expected to close Third Quarter ‘03

• Excellent fit with USM’s strategy:• To strengthen its regional footprint through

acquisitions or trades• To build on strengths and exit certain other

markets

• Gives USM opportunity to substantially improve position in Midwest and Northeast markets

USM & AWE Proposed Exchange

USM & AWE Exchange

USM Acquires:• 36 licenses … 10 & 20 MHz PCS • 12.2 M incremental contiguous & 4.4 M overlap pops • Minority interests in 6 USM-controlled markets• $31 M cash

USM Exchanges: • 10 “A” block 25 MHz cellular licenses in FL & GA

covering 1.5M pops• 141,000 customers; 205 cell sites

• Continue delivering exceptional customer service

• Continue improving USM geographic footprint

• Continue deploying CDMA 1XRTT

• Complete testing and development of additional customer-driven data services• Launch wireless data services using BREW technology

in TN and other selected 1XRTT markets

USM Focus - 2003 and Beyond

• Provide outstanding customer service

TDS Telecom’s Overall Strategy

• Protect and grow current markets• growth strategy - balance and sustainability;

clustering

• Grow and protect core ILEC businessProvide strong local presence Provide high-quality services at competitive pricesBundle products and grow vertical service penetration

• Aggressively grow CLEC businessGrow into carefully chosen mid-size and suburban markets in the Midwest CLEC to leverage ILEC strengths Emphasis on facilities-based model

TDS Telecom’s Growth Strategy

• Provide outstanding customer service

• Protect and grow current markets

TDS Telecom’s Overall Strategy

• Develop and market new products and services

Vertical Services Penetration3/31/03

TDS IndependentTelecom Tel. Cos.*

Caller ID 32.0% 29.4% Call waiting 32.5% 31.5% Voicemail 13.5% 8.1%

ISP 33.1% 18.1% (for AOL) Second line 12.3% Long distance 34.8%

*Research First Dec 2002 and Merrill Lynch March 2003

• Combating wireless substitution

• Cable company initiatives

Telecom at a Crossroads:Positioning TDS Telecom for the Future

• Testing a combined U.S. Cellular / TDS Metrocom product

• Bundling

New Initiatives

• Lead the industry in customer satisfaction

• Rapidly and profitably grow the CLEC operations

• Rapidly grow DSL and other data services in both the ILEC and CLEC markets

• Aggressively promote a positive regulatory environment for both ILEC and CLEC customers

TDS Telecom Focus -2003 and Beyond

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 and network quality • strong, experienced management teams

• Dedicated workforce of 11,000 people

• Financially strong

Sandra L. Helton

Executive Vice President and Chief Financial Officer

Telephone and Data Systems, Inc.

Safe HarborAll 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 acquire or, if it acquires, to start up the operations of the properties involved in the AWE transaction; 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 operates; advances in telecommunications technology; changes in the telecommunications regulatory environment; changes in the value of investments, including variable prepaid forward contracts; changes in the capital markets that could restrict the availability of financing; 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’s markets. Investors are encouraged to consider these and other risks and uncertainties that are discussed in documents filed by TDS with the SEC.

Reconciliation of Additional Disclosures

Year Ended at December 31, 2002 U.S. Cellular ILEC CLEC Total

(Dollars in thousands)EBITDA:

Operating income (loss) as reported 281,166$ 167,914$ (62,725)$ 386,355$ Add:

Depreciation and Amortization 351,154 130,232 29,059 510,445 EBITDA 632,320 298,146 (33,666) 896,800

TDS Telecom

The EBITDA amount in the table presented above is not determined in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Management uses EBITDA 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. EBITDA is used as an analytical indicator of income generated to service debt and fund capital expenditures. In addition, multiples of current or projected EBITDA are used to estimate current or prospective enterprise value. EBITDA does not give effect to cash used for debt service requirements, and thus does not reflect funds available for investment or other discretionary uses. EBITDA as presented herein may not be comparable to similarly titled measures reported by other companies

Excellent Results - 12/31/02 Financial Operating Performance

5-Year CAGR

Revenues 15.9 %

EBITDA 14.3 %

Five-Year Track Record

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

1998 1999 2000 2001 2002

Operating Revenues EBITDA

$ in

Mill

ion

s

TDS 2002 Operating Results ($millions)($millions)

Operating Revenues $2,985.4 +15.3%

EBITDA $896.8 +1.2%

Diluted EPS Continuing Ops(excl. gains/losses) $2.50 vs $3.24 (22.8%)

Capital ExpendituresUS Cellular $731 MTDS Telecom $168 M

Q1 2003 Operating Results ($millions)($millions)

Operating Revenues $807.4 +21%

Operating Income $33.9 (68%)

Capital ExpendituresUS Cellular $140.9 MTDS Telecom $ 19.1 M

MonetizationGenerated $1.6 B through 2003 monetizations• Deutsche Telekom (DTE)

131,461,861 ordinary shares TDS position completely monetized

• Vodafone (VOD) 12,945,915 sharesTDS and USM positions both monetized

• VeriSign (VRSN) 2,525,786 shares2,361,333 shares at TDS (monetized)164,453 shares at TDS (sold)

Use of Monetization Proceeds

• M & A activities

• Capital expenditures

• Corporate debt reduction

• Dividend increase

• Stock repurchase program

Stock Repurchase• 1 million share authorization previously

in place

• Announced additional 2 million share authorization in February

• Q1 ‘03 repurchased 750,300 shares• avg price of $39.11 ; total of $29.4 M

• To date repurchased 1,229,400 shares• avg price of $40.55 ; total of $49.9 M

• Grow revenues market growth (at least 15% annually)

• Return on capital WACC

• Valuation/shareholder returns comparable companies

• Maintain strong investment-grade rating

Financial Objectives

Strategic positioning

Performance to plan

Continued financial strengthMaintain A- credit rating

Outstanding employees

2003 Focus

Annual Meeting of Shareholders

May 8, 2003