1. 1 LEROY T. CARLSON, JR. President and Chief Executive Officer Telephone and Data Systems, Inc. Morgan Stanley 9th Annual Global Media & Communications Conference September 8, 2004

2. 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 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; the impact 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.

3. 3 TDS Diversified telecommunication company with 5.8 million customers in 36 states –U.S. Cellular (82% owned) - wireless –TDS Telecom (ILEC and CLEC) - wireline Fortune 500 company Strong balance sheet Investment grade Note: Unless specified, all handout data is as of June 30, 2004

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6. 6 Provide outstanding customer service Protect and grow current markets TDS Telecom’s Overall Strategy Develop and market new products and services

7. 7 Our Competitive Advantage: Customer Satisfaction Third-Party Validation %Likely to Switch Local Carrier Avg = 20% Lower Higher Third-Party 2003 Customer Satisfaction Survey Results (Avg = 100) Higher Qwest ALLTEL AT&T BellSouth CenturyTel CinBell Frontier/Citizens AT&T Broadband McLeod MCI WorldCom SBC Verizon Sprint TDS Cox Talk America

8. 8 Strategic Areas of Focus Market Development Market Fortification Public Policy Advocacy Process & Productivity Improvement

9. 9 Market Development Aim to grow in clusters through potential combination of: Acquisitions Build-out variations New technologies Trialing Voice Over IP (VOIP), wireless data and Fiber to the Premise (FTTP)

10. 10 Market Fortification Proactively address substitution technologies by: Developing new products and services Enhancing existing services; increasing market share, penetration and profitability, particularly of high-speed data services Growing the CLEC within its existing markets

11. 11 Public Policy Advocacy Champion TDS’s position to ensure favorable regulatory treatment –Telecom regulatory environment complex and convoluted –Several key issues currently under review Triennial Review Order Universal Service Fund State Access Reform

12. 12 Productivity Improvement Create efficiencies by optimizing cross- functional processes –Leveraging management and process infrastructures to jointly support ILEC and CLEC operations –Pursuing cost-effective initiatives, such as innovative online purchasing system –Voluntary employee retirement program

13. 13 7th largest independent U.S. telco Rural company status 725,600 access line equivalents in 28 states 116 ILEC service locations 112,100 ISP accounts; 31,500 DSL 280,900 LD (resale) lines Vertical services TDS Telecom - ILEC

14. 14 DSL Facts - ILEC DSL - 66 markets …31,500 customers… fast grower… 94% increase YOY 128 k to 1.5 mb speeds Primarily consumer based Product bundles…DISH satellite / DSL; long distance / DSL, etc. DSL modems Wi-Fi enabled

15. 15 ILEC Additional Services “TDS True Talk” (resell LD) – 280,900 customers... first offered 3Q 2000 … 46.3% penetration (residential) DISH Network – 27,000 customers … no CAPX … “sticky” “TDS Accelerator” – 5x faster Internet download speeds … available in all markets Various bundling options … including larger minute plans

16. 16 CLEC Operations Principally a facilities-based company in five states …86% on-switch 395,600 access line equivalents Targeted selling to business and communications-intensive residential Deep penetration in chosen markets Provisions principally with one RBOC (SBC)

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18. 18 2nd Qtr 2004 Financial Highlights TDS Telecom – June 30, 2004 (millions) ILEC2 nd Qtr ‘042 nd Qtr ’03 Revenues$163.5$159.8 + 2% Operating Income 48.9 43.2 +13% CLEC Revenues $ 59.8 $52.5 + 14% Operating (loss) (4.3) (4.1) (3%) Access Line Equivalents (thousands) ILEC 725.6718.8 + 1% CLEC 395.6323.6 +22%

19. 19 2004 Outlook - TDS Telecom ILEC  Operating revenues … $640 to $650 M  Dep. & amort. … $135 M  Operating income … $170 to $180 M  Capital expenditures … ≈ $105 M CLEC  Operating revenues … $230 to $240 M  Dep. and amort. … $40 M  Operating income (loss) … $(30) to $(20) M  Capital expenditures … ≈ $45 M

20. 20 TDS - Financial Strategies Ultimate goal: generate profitable growth and build shareholder value Four financial objectives toward that goal: 10-15% compound annual revenue growth rate over five years Return cost of capital in each business Generate shareholder returns > comparable companies Maintain A- investment-grade credit rating

21. 21 Debt Ratings... Investment Grade TDSUSM Moody’s Investment ServiceBaa1Baa1 Standard & Poor’s A-A- FitchA-A- TDS debt to capital at 6/30/04*35.9% USM debt to capital at 6/30/04*28.3% * Assumes LYONs & 7.25% notes were redeemed as of 6/30/04

22. 22 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 11,000 people