Contact: Mark A. Steinkrauss, Vice President, Corporate Relations
(312) 592-5384 mark.steinkrauss@teldta.com

Julie D. Mathews, Manager, Investor Relations
(312) 592-5341 julie.mathews@teldta.com

FOR RELEASE: IMMEDIATE

TDS REPORTS FIRST QUARTER OPERATING RESULTS

CHICAGO – April 27, 2005 – Telephone and Data Systems, Inc. [AMEX:TDS] reported operating revenues of $928.2 million for the first quarter of 2005, up 7% from $870.5 million in the comparable period a year ago. Operating income was $75.4 million in the first quarter compared to operating income of $73.2 million in the first quarter of 2004. Net income available to common and diluted earnings per share for first quarter 2005 were $20.5 million and $0.35, respectively. In the first quarter 2004, net income available to common and diluted earnings per share were $19.7 million and $0.34, respectively.

President’s Comments

“TDS started 2005 with solid first-quarter results,” said LeRoy T. Carlson, Jr., president and chief executive officer. “U.S. Cellular continued to achieve strong customer growth in the quarter, with net new customer additions of 182,000. Much of this growth is due to the company’s intense focus on customer satisfaction. A satisfied customer stays with us and is inclined to recommend U.S. Cellular service to family and friends, the best form of advertising there is.

“Data revenues of $29 million were also strong, continuing the trend we saw throughout 2004. With its wireless network upgrade to CDMA 1X complete, U.S. Cellular now offers a larger number of applications to its expanding customer base, which should continue to drive data revenues in 2005. The strong customer growth in 2004 and the first quarter coupled with robust data revenue growth, resulted in U.S. Cellular operating revenue growth of 7.7% in the quarter.

“Operating revenues at TDS Telecom’s ILEC operations grew 1.7% in the quarter, and the number of access equivalents increased by 1.6%, solid performance for this industry sector. Strong sales of DSL (digital subscriber lines) and long distance services at the company’s ILEC operations contributed to revenue growth. Year-over-year growth in the number of ILEC DSL lines was 81%, as TDS Telecom made continued progress toward its goal of being the preferred broadband provider in the markets it serves.

“CLEC revenue growth was 8.2% and access line equivalents grew an impressive 15.6% in the quarter. These are strong results given regulatory and competitive pressures for the CLEC operation. We were also pleased to see DSL growth of 39% in the quarter. Combined ILEC and CLEC DSL lines in service at TDS Telecom now total approximately 81,000.”

As previously announced, TDS and its subsidiaries will hold a joint teleconference April 27, 2005, at 10:00 a.m. Chicago time. Interested parties may listen to the call live over the Internet by accessinghttp://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=67422&eventID=1054136 or the conference call page of the Investor Relations section ofwww.teldta.com. Or connect by telephone at 888/245-6674 with a pass code of 5585317. The conference call will be archived on the conference call section of the TDS web site atwww.teldta.com. Prior to the start of the call, certain financial and statistical information discussed during the conference call comments will be posted to the web site, together with reconciliations to generally accepted accounting principles (GAAP) of any non-GAAP information to be disclosed. Investors may access this additional information on the conference call page of the Investor Relations section of the TDS web site.

TDS, a FORTUNE 500 company, is a diversified telecommunications corporation founded in 1969. Through its strategic business units, U.S. Cellular and TDS Telecom, TDS operates primarily by providing wireless, local telephone and broadband services. TDS builds value for its shareholders by providing excellent communications services in growing, closely related segments of the telecommunications industry. As of March 31, 2005, the company employed 11,500 people and served 6.3 million customers/units in 36 states.

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 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 the Form 8-K used by TDS to furnish this press release to the Securities and Exchange Commission, which are incorporated by reference herein.

For more information about TDS and its subsidiaries, visit the web sites at:

TDS:www.teldta.com	TDS Telecom:www.tdstelecom.com
USM:www.uscellular.com	TDS Metrocomwww.tdsmetro.com

TELEPHONE AND DATA SYSTEMS, INC.
SUMMARY OPERATING DATA

Quarter Ended		3/31/2005			12/31/2004			9/30/2004			6/30/2004			3/31/2004
U.S. Cellular:
Consolidated Markets:
Total population (000s) (1)		44,576			44,391			45,581			45,581			45,581
All customers -
Customer units		5,127,000			4,945,000			4,828,000			4,684,000			4,547,000
Gross customer unit activations		426,000			408,000			387,000			365,000			397,000
Net customer unit activations		182,000			150,000			144,000			137,000			196,000
Market penetration (1)		11.50	%		11.14	%		10.59	%		10.28	%		9.98	%
Retail customers -
Customer units		4,601,000			4,478,000			4,395,000			4,284,000			4,180,000
Gross customer unit activations		365,000			358,000			354,000			328,000			345,000
Net customer unit activations		123,000			105,000			111,000			104,000			144,000

Cell sites in service		4,899			4,856			4,713			4,420			4,122
Average monthly revenue per unit (2)	$	44.28		$	46.12		$	48.49		$	47.79		$	46.16
Retail service revenue per unit (2)	$	39.04		$	40.55		$	41.51		$	41.58		$	40.26
Inbound roaming revenue per unit (2)	$	1.98		$	2.47		$	3.39		$	3.21		$	3.17
Long-distance/other revenue per unit (2)	$	3.26		$	3.10		$	3.59		$	3.00		$	2.73
Minutes of use (MOU) (3)		584			568			553			542			491
Postpay churn rate per month (4)		1.5	%		1.6	%		1.6	%		1.5	%		1.3	%
Marketing cost per gross
customer unit addition (5)	$	394		$	442		$	410		$	392		$	371
Construction Expenditures (000s)	$	112,243		$	260,358		$	131,648		$	162,579		$	100,535

(1)

Market penetration is calculated using 2004 Claritas population estimates for 3/31/05 and 2003 Claritas estimates for all periods of 2004. "Total population" represents the total population of each of U.S. Cellular's consolidated markets, regardless of whether the market has begun marketing operations. The 12/31/04 total population counts exclude the population of the two markets sold to ALLTEL in November 2004. The 9/30/04, 6/30/04 and 3/31/04 total population counts include the population of the market added to consolidated operations as of 1/1/04, but exclude the population of the six markets sold to AT&T Wireless (now Cingular Wireless) in February 2004. The population of markets in which U.S. Cellular has deferred the transfer of licenses from AT&T Wireless (now Cingular Wireless) are not included in the total population counts for any period.

(2)	Per unit revenue measurements are derived from Service Revenues as reported in Financial Highlights for each respective quarter as follows:

Service Revenues per Financial Highlights	$	668,792	$	673,223	$	691,964	$	662,658	$	619,382
Components:
Retail service revenue during quarter	$	589,674	$	591,972	$	592,411	$	576,541	$	540,228
Inbound roaming revenue during quarter	$	29,883	$	36,027	$	48,402	$	44,516	$	42,499
Long-distance/other revenue during quarter	$	49,235	$	45,224	$	51,151	$	41,601	$	36,655

Divided by average customers during quarter (000s)		5,035		4,866		4,757		4,622		4,473
Divided by three months in each quarter		3		3		3		3		3



Retail service revenue per unit	$	39.04	$	40.55	$	41.51	$	41.58	$	40.26
Inbound roaming revenue per unit	$	1.98	$	2.47	$	3.39	$	3.21	$	3.17
Long-distance/other revenue per unit	$	3.26	$	3.10	$	3.59	$	3.00	$	2.73


Average monthly revenue per unit	$	44.28	$	46.12	$	48.49	$	47.79	$	46.16

(3)	Average monthly local minutes of use per customer (without roaming).

(4)	Postpay churn rate per month is calculated by dividing the average monthly postpay customer disconnects during the quarter by the average postpay customer base for the quarter.

(5)

Due to changes in accounting for agent rebates and net customer retention expenses, for all periods shown this measurement is no longer calculable using information from the financial statements as reported. The details of this calculation and a reconciliation to line items reported in Financial Highlights for each respective quarter are shown on U.S. Cellular's web site, along with additional information related to U.S. Cellular's fourth quarter results, at www.uscellular.com.

TELEPHONE AND DATA SYSTEMS, INC.
SUMMARY OPERATING DATA

Quarter Ended		3/31/2005			12/31/2004			9/30/2004			6/30/2004			3/31/2004
TDS Telecom
ILEC:
Access line equivalents (1)		734,000			730,400			725,500			725,600			722,400
Access lines		649,300			652,300			658,200			660,400			660,900
Dial-up Internet service accounts		98,200			101,300			104,800			112,100			113,600
Digital Subscriber Lines (DSL) customers		49,300			41,900			33,000			31,500			27,300
Long Distance customers		302,400			295,000			289,000			280,900			266,300
Construction Expenditures (000s)	$	16,142		$	26,921		$	31,571		$	26,961		$	17,616
CLEC:
Access line equivalents (1)		438,000			426,800			412,500			395,600			378,800
Dial-up Internet service accounts		17,100			18,200			19,100			20,300			21,600
Percent of access lines on-switch		88.8	%		87.9	%		86.8	%		85.7	%		84.5	%
Digital Subscriber Lines (DSL) customers		31,600			29,000			27,000			25,000			22,700
Construction Expenditures (000s)	$	4,214		$	12,928		$	7,198		$	8,596		$	6,456

(1)	Access line equivalents are derived by converting high capacity data lines to the estimated capacity of one switched access line.

TELEPHONE AND DATA SYSTEMS, INC.
FINANCIAL HIGHLIGHTS
Three Months Ended March 31,
(Unaudited, dollars in thousands, except per share amounts)

							Increase (Decrease)

	2005			2004			Amount			Percent

Operating Revenues
U.S. Cellular	$	708,435		$	657,650		$	50,785			7.7%
TDS Telecom		219,731			212,862			6,869			3.2%

		928,166			870,512			57,654			6.6%

Operating Expenses
U.S. Cellular
Expenses excluding depreciation, amortization and accretion		544,948			515,617			29,331			5.7%
Depreciation, amortization and accretion		127,250			113,894			13,356			11.7%
(Gain) loss on assets held for sale		—			(143	)		143			N/M

		672,198			629,368			42,830			6.8%

TDS Telecom
Expenses excluding depreciation and amortization		138,961			126,419			12,542			9.9%
Depreciation and amortization		41,567			41,558			9			0.0%

		180,528			167,977			12,551			7.5%

Total Operating Expenses		852,726			797,345			55,381			6.9%

Operating Income
U.S. Cellular		36,237			28,282			7,955			28.1%
TDS Telecom		39,203			44,885			(5,682	)		(12.7%)

		75,440			73,167			2,273			3.1%

Investment and Other Income (Expense)
Investment income		14,233			14,630			(397	)		(2.7%)
Interest and dividend income		7,819			2,896			4,923			170.0%
Gain on investments		500			—			500			N/M
Interest expense		(51,856	)		(46,821	)		(5,035	)		(10.8%)
Other income (expense), net		(4,193	)		(527	)		(3,666	)		N/M

		(33,497	)		(29,822	)		(3,675	)		(12.3%)

Income Before Income Taxes and Minority Interest		41,943			43,345			(1,402	)		(3.2%)
Income tax expense		16,148			20,105			(3,957	)		(19.7%)

Income Before Minority Interest		25,795			23,240			2,555			11.0%
Minority share of income		(5,250	)		(3,508	)		(1,742	)		(49.7%)

Net Income		20,545			19,732			813			4.1%
Preferred dividend requirement		(50	)		(50	)		—			N/M

Net Income Available to Common	$	20,495		$	19,682		$	813			4.1%


Basic Weighted Average Common Shares Outstanding (000s)		57,500			57,168			332			0.6%
Basic Earnings Per Share	$	0.36		$	0.34		$	0.02			5.9%

Diluted Weighted Average Common Shares Outstanding (000s)		57,823			57,424			399			0.7%
Diluted Earnings Per Share	$	0.35		$	0.34		$	0.01			2.9%

N/M	- - Percentage change not meaningful

TELEPHONE AND DATA SYSTEMS, INC.
CONSOLIDATED BALANCE SHEET HIGHLIGHTS
(Unaudited, dollars in thousands)

ASSETS

	March 31, 2005		December 31, 2004

Current Assets
Cash and cash equivalents	$	1,155,431	$	1,168,581
Accounts receivable from customers and other		421,212		440,075
Deferred income tax asset		32,679		36,040
Materials and supplies, at average cost		83,020		91,556
Other current assets		61,548		73,965

		1,753,890		1,810,217

Investments
Licenses		1,358,725		1,228,801
Goodwill		823,249		823,259
Customer lists		22,615		24,915
Marketable equity securities		3,042,028		3,398,804
Investments in unconsolidated entities		220,553		206,763
Other investments		22,397		23,039

		5,489,567		5,705,581

Property, Plant and Equipment, net
U.S. Cellular		2,428,470		2,439,719
TDS Telecom		928,851		945,762

		3,357,321		3,385,481


Other Assets and Deferred Charges		91,340		92,562


	$	10,692,118	$	10,993,841

TELEPHONE AND DATA SYSTEMS, INC.
CONSOLIDATED BALANCE SHEET HIGHLIGHTS
(Unaudited, dollars in thousands)

LIABILITIES AND STOCKHOLDERS' EQUITY

	March 31, 2005			December 31, 2004

Current Liabilities
Current portion of long-term debt	$	15,106		$	38,787
Notes payable		135,000			30,000
Accounts payable		256,840			323,256
Customer deposits and deferred revenues		122,952			119,380
Accrued taxes		93,016			76,266
Accrued compensation		42,006			71,707
Other current liabilities		83,570			81,927

		748,490			741,323

Deferred Liabilities and Credits
Net deferred income tax liability		1,458,205			1,466,649
Derivative liability		863,530			1,210,500
Other deferred liabilities and credits		222,454			217,208

		2,544,189			2,894,357

Long-term Debt
Long-term debt, excluding current portion		1,987,229			1,974,599
Forward contracts		1,693,981			1,689,644

		3,681,210			3,664,243

Minority Interest in Subsidiaries		511,992			499,306

Preferred Shares		3,864			3,864

Common Stockholders' Equity
Common Shares, $.01 par value		564			564
Series A Common Shares, $.01 par value		64			64
Capital in excess of par value		1,819,710			1,823,161
Treasury Shares, at cost		(439,038	)		(449,173	)
Accumulated other comprehensive income		368,022			373,505
Retained earnings		1,453,051			1,442,627

		3,202,373			3,190,748

	$	10,692,118		$	10,993,841

BALANCE SHEET HIGHLIGHTS
MARCH 31, 2005
(Unaudited, dollars in thousands)

	U.S. Cellular		TDS Telecom		TDS Corporate & Other		Intercompany Eliminations			TDS Consolidated

Cash and cash equivalents	$	30,791	$	379,228	$	745,412	$	—		$	1,155,431
Affiliated cash investments		75		485,275		—		(485,350	)		—
Notes receivable - affiliates		—		—		342,216		(342,216	)		—

	$	30,866	$	864,503	$	1,087,628	$	(827,566	)	$	1,155,431

Licenses, goodwill and customer lists	$	1,807,248	$	397,341	$	—	$	—		$	2,204,589
Marketable equity securities		274,079		73,571		2,694,378		—			3,042,028
Investment in unconsolidated entities		176,367		19,896		32,329		(8,039	)		220,553
Long-term notes receivable - affiliates		—		—		400		(400	)		—
Other investments		4,778		14,242		3,377		—			22,397

	$	2,262,472	$	505,050	$	2,730,484	$	(8,439	)	$	5,489,567

Property, Plant and
Equipment, net	$	2,428,470	$	928,851	$	—	$	—		$	3,357,321

Notes payable: external	$	135,000	$	—	$	—	$	—		$	135,000
cash management		—		—		485,350		(485,350	)		—
intercompany		—		342,216		—		(342,216	)		—

	$	135,000	$	342,216	$	485,350	$	(827,566	)	$	135,000

Forward contracts	$	159,856	$	41,182	$	1,492,943	$	—		$	1,693,981

Long-term Debt:
Current portion	$	—	$	12,756	$	2,350	$	—		$	15,106
Affiliated		—		400		—		(400	)		—
Non-current portion		1,001,044		121,307		864,878		—			1,987,229

Total	$	1,001,044	$	134,463	$	867,228	$	(400	)	$	2,002,335

Preferred Shares	$	—	$	—	$	3,864	$	—		$	3,864

Construction expenditures:
Quarter ended 3/31/05	$	112,243	$	20,356	$	741				$	133,340

TDS Telecom Highlights
Three Months Ended March 31,
(Unaudited, dollars in thousands)

							Increase (Decrease)

	2005			2004			Amount			Percent

Local Telephone Operations
Operating Revenues
Local service	$	49,561		$	50,427		$	(866	)		(1.7%)
Network access and long-distance		90,096			88,187			1,909			2.2%
Miscellaneous		22,120			20,505			1,615			7.9%

		161,777			159,119			2,658			1.7%

Operating Expenses
Network operations		43,610			34,517			9,093			26.3%
Customer operations		22,773			23,180			(407	)		(1.8%)
Corporate expenses		20,485			20,231			254			1.3%
Depreciation and amortization		34,264			32,547			1,717			5.3%

		121,132			110,475			10,657			9.6%


Operating Income	$	40,645		$	48,644		$	(7,999	)		(16.4%)


Competitive Local Exchange Carrier Operations
Revenues	$	59,215		$	54,736		$	4,479			8.2%

Expenses excluding depreciation and amortization		53,354			49,484			3,870			7.8%
Depreciation and amortization		7,303			9,011			(1,708	)		(19.0%)

		60,657			58,495			2,162			3.7%

Operating (Loss)	$	(1,442	)	$	(3,759	)	$	2,317			61.6%


Intercompany revenues	$	(1,261)		$	(993)		$	(268)			N/M
Intercompany expenses		(1,261)			(993)			(268)			N/M

		--			--			--			N/M


Total TDS Telecom Operating Income	$	39,203		$	44,885		$	(5,682)			(12.7%)

N/M	- - Percentage change not meaningful.

Telephone and Data Systems (TDS) 8-KResults of Operations and Financial Condition

FOR RELEASE: IMMEDIATE

TDS REPORTS FIRST QUARTER OPERATING RESULTS