United States Cellular Corporat (UZD) 8-K Regulation FD Disclosure

Exhibit 99.1

As previously announced, TDS and USM will hold a joint teleconference on May 5, 2003 at 10:00 am Chicago time. Interested parties may listen to the call live on the TDS Web site atwww.teldta.comin the Conference Call section of Investor Relations.

Contact: Kenneth R. Meyers, Executive Vice President - Finance - U.S. Cellular
(773) 399-8900kmeyers@uscellular.com

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

FOR RELEASE: IMMEDIATE

U.S. CELLULAR REPORTS FIRST QUARTER RESULTS

May 5, 2003, Chicago, Illinois — United States Cellular Corporation [AMEX:USM] reported service revenues of $564.6 million for the first quarter of 2003, up 22% from $461.1 million in the comparable period a year ago. The company recorded an operating loss of $6.2 million in the first quarter of 2003 compared to operating income of $79.7 million in the first quarter of 2002. Operating expenses include a $23.5 million loss related to the assets to be transferred to AT&T Wireless (NYSE:AWE) relating to the exchange transaction announced in March 2003. In addition, operating income in the first quarter of 2003 was impacted by higher expenses related to increased customer growth and minutes of use and a larger fixed asset base.

Basic earnings per share were a loss of $.17 compared to $.56 in the first quarter a year ago. Basic earnings per share before cumulative effect of accounting change were a loss of $.17 compared to $.52 in the comparable period a year ago. The latter earnings per share measurement excludes the cumulative effect on years prior to 2002 of U.S. Cellular’s decision to defer commissions expenses, equal to the amount of activation fee revenues deferred, pursuant to Staff Accounting Bulletin (“SAB”) No. 101 beginning in 2002.

The company’s operating results do not treat the operations of the markets included in the exchange of assets with AWE as discontinued operations, as was disclosed in the company’s 2002 annual report to shareholders. The company and its independent accountants worked very closely to ensure that the accounting for the markets being exchanged was both appropriate and accurate. After a thorough review, the company and its independent accountants concluded that the accounting for these operations should not be accounted for as discontinued operations. Service revenues from the markets to be transferred to AWE totaled approximately $29 million in the first quarter of 2003. In addition, the results for the first quarter of 2002 do not include any operating results from the company’s Chicago operations, which were acquired in August 2002.

First Quarter Highlights

• Customer units totaled 4,240,000, a 21% increase from 3,504,000 customers one year earlier.

• Net customer unit activations from distribution channels totaled 137,000 during the quarter, compared to 31,000 activations for the same quarter of 2002.

• For the quarter, the company recorded postpay churn of 1.6%, which is very favorable to industry averages.

• Monthly retail revenue per customer increased 4% year-over-year, to $37.05 in the quarter compared to $35.79 in the same period a year ago.

“The first quarter was one of substantial growth for U.S. Cellular,” said John E. Rooney, president and chief executive officer. “Net add growth of 137,000 for the quarter was pervasive, as all of our market areas grew year over year. We were particularly pleased to see strong growth from our recently acquired Chicago market, continuing the trend we have been experiencing since we launched the market last November. Much of the growth in Chicago and in our other markets is due to our intense focus on customer satisfaction and delivering the very best in customer service every day of the week.

“However, operating expenses grew considerably in the quarter due to a variety of factors. First, we spent heavily in Chicago to support the market’s fast pace of growth. This spending came mostly in the form of selling, marketing and advertising expenses. Secondly, with 21% more customers, 31% more cell sites and the ensuing steep uptick in minutes of use, systems operations expenses grew sharply. Third, our depreciation expense was up 45% due to the growth of the business and the conversion of our network to CDMA 1XRTT technology – an upgrade that allows faster access to information, enhanced voice capacity, improved call coverage and clarity. Fourth, our marketing and retention costs grew as a result of our initiatives aimed at ensuring brand awareness and low customer churn. We continue to see the benefits of this spending, as postpay churn in the quarter totaled only 1.6% – once again, one of the lowest rates in the industry.”

During the quarter, U.S. Cellular included in operating expenses a pre-tax loss of $23.5 million ($17.7 million net of tax), related to the difference between the fair value of the assets being transferred to AWE and their book value. Because U.S. Cellular’s tax basis in the assets to be transferred is lower than its book basis, the company anticipates that it will record an additional charge to the income statement of approximately $12 million for taxes and have a current tax liability of approximately $26 million related to the completion of the transaction, which is expected to close in the third quarter of 2003.

U.S. Cellular recognized an investment loss of $3.5 million ($2.1 million net of tax) related to the writedown to fair value of certain intangible assets in the quarter.

Also during the quarter, U.S. Cellular repurchased the remaining $45.2 million of 9% Series A Notes due 2032 with borrowings under its revolving credit facilities. These notes, originally issued for $175 million in conjunction with the completion of the Chicago MTA acquisition in August 2002, have now been retired.

U.S. Cellular Corporation, the nation’s eighth largest wireless service carrier, provides wireless service to more than 4.2 million customers in 149 markets throughout 25 states. The Chicago-based company operates on a customer satisfaction strategy, meeting customer needs by providing a comprehensive range of wireless products and services, superior customer support and a high-quality network.

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 the Company to acquire or, if it acquires, to start up the operations of the properties involved in the AWE transaction; the ability of the Company to manage and grow the operations of the Chicago MTA; changes in the overall economy; changes in competition in the markets in which the Company operates; advances in telecommunications technology;

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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, retail service revenue per unit, churn rates, roaming rates and the mix of products and services offered in the Company’s markets. Investors are encouraged to consider these and other risks and uncertainties that are discussed in documents filed by the Company with the Securities and Exchange Commission.

As previously announced, TDS and U.S. Cellular will hold a joint teleconference on May 5, 2003 at 10:00 am Chicago time. Interested parties may listen to the call live over the Internet by accessing the conference call section ofwww.uscellular.com, or by going tohttp://www.firstcallevents.com/service/ajwz380304720gf12.html or by calling 888/245-6674 chair name: Mark Steinkrauss. The conference call will also be archived on the conference call section of the USM Web site atwww.uscellular.com. Certain financial and statistical information contained in the conference call presentation will be posted to the conference call page of the Investor Relations section of the U.S. Cellular Web site, together with reconciliations of GAAP to any non-GAAP information to be disclosed, prior to the commencement of the call.

USM’s Internet Home Page:www.uscellular.com

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UNITED STATES CELLULAR CORPORATION
SUMMARY OPERATING DATA

Quarter Ended		3/31/03			12/31/02			9/30/02			6/30/02			3/31/02
Total incremental population equivalents owned (000s)(1)		42,045			42,006			42,037			31,330			31,257
Consolidated Markets:
Total population (000s) (2)		36,759			36,568			36,568			27,548			27,548
Customer units		4,240,000			4,103,000			3,943,000			3,547,000			3,504,000
Net customer unit activations		137,000			160,000			76,000			43,000			31,000
Market penetration (2)		11.53	%		11.22	%		10.78	%		12.88	%		12.72	%
Markets in operation		149			149			149			148			148
Cell sites in service		3,987			3,914			3,750			3,145			3,049
Average monthly revenue per unit	$	45.05		$	47.91		$	49.31		$	47.48		$	44.14
Retail service revenue per unit	$	37.05		$	38.69		$	38.95		$	37.93		$	35.79
Inbound roaming revenue per unit	$	4.36		$	5.37		$	6.52		$	5.90		$	5.20
Long-distance/other revenue per unit	$	3.64		$	3.85		$	3.84		$	3.65		$	3.15
Minutes of use (MOU) (3)		377			359			327			280			237
Postpay churn rate per month (4)		1.6	%		1.8	%		2.0	%		1.7	%		1.9	%
Marketing cost per gross       customer unit addition (5)	$	358		$	369		$	348		$	386		$	362
Capital Expenditures ($000s)	$	140,926		$	281,615		$	192,256		$	156,699		$	100,075

(1) Represents pops in cellular operating and investment markets as well as PCS markets which are incremental to, and do not overlap with, cellular markets owned by USM. Pops in all periods represent amounts related to markets U.S. Cellular owned at the end of each respective period and do not include any acquisition or divestiture transactions for which there were definitive agreements but which had not been completed as of the end of the period.

(2) Market penetration is calculated using 2002 Claritas population estimates for 3/31/03 and 2001 Claritas estimates for all other periods.

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

(4) Excluding 13,000 lines disconnected due to the bankruptcy of a customer, postpay churn rate for 3/31/02 would have been 1.7%.

(5) Due to changes in accounting for agent rebates, for all periods shown this measurement is no longer calculable using information from the financial statements as reported.

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UNITED STATES CELLULAR CORPORATION
FINANCIAL HIGHLIGHTS
Three Months Ended March 31,
(Unaudited, dollars in thousands, except per share amounts)

							Increase (Decrease)
	2003			2002			Amount			Percent
Operating Revenues
Service Revenues	$	564,601		$	461,113		$	103,488			22.4	%
Equipment Sales		31,313			17,307			14,006			80.9	%
		595,914			478,420			117,494			24.6	%
Operating Expenses
System Operations		137,965			107,921			30,044			27.8	%
Marketing and Selling		108,921			79,226			29,695			37.5	%
Cost of Equipment Sold		64,765			30,367			34,398			113.3	%
General and Administrative		157,449			108,478			48,971			45.1	%
Depreciation		95,872			65,977			29,895			45.3	%
Amortization of Deferred Charges and Customer Lists		13,631			6,775			6,856			101.2	%
Loss on Assets Held for Sale		23,500			-			23,500			N/M
		602,103			398,744			203,359			51.0	%
Operating Income (Loss)		(6,189	)		79,676			(85,865	)		(107.8	%)
Investment Income		12,378			10,461			1,917			18.3	%
Interest (Expense)		(15,454	)		(9,030	)		(6,424	)		(71.1	%)
(Loss) on Investment		(3,500	)		-			(3,500	)		N/M
Other Income		261			1,394			(1,133	)		(81.3	%)
Income (Loss) Before Income Taxes and Minority Interest		(12,504	)		82,501			(95,005	)		(115.2	%)
Income Tax Expense (Benefit)		(1,118	)		35,675			(36,793	)		(103.1	%)
Income (Loss) Before Minority Interest		(11,386	)		46,826			(58,212	)		(124.3	%)
Minority Share of Income		(3,257	)		(2,433	)		(824	)		(33.9	%)
Income (Loss) Before Cumulative Effect of Accounting Change		(14,643	)		44,393			(59,036	)		(133.0	%)
Cumulative effect of accounting change, net of tax		-			4,097			(4,097	)		N/M
Net Income (Loss)	$	(14,643	)	$	48,490		$	(63,133	)		(130.2	%)
Weighted Average Common and Series A Common Shares (000s) (Basic)		86,121			86,053			68
Earnings Per Common and Series A Common Share ("EPS") (Basic)	$	(0.17	)	$	0.56		$	(0.73	)		(130.4	%)
Basic EPS Before Cumulative Effect of Accounting Change	$	(0.17	)	$	0.52		$	(0.69	)		(132.7	%)
Basic EPS from Cumulative Effect of Accounting Change	$	-		$	0.04		$	(0.04	)		N/M
Earnings Per Common and Series A Common Share ("EPS") (Diluted)	$	(0.17	)	$	0.56		$	(0.73	)		(130.4	%)
Diluted EPS Before Cumulative Effect of Accounting Change	$	(0.17	)	$	0.51		$	(0.68	)		(133.3	%)
Diluted EPS from Cumulative Effect of Accounting Change	$	-		$	0.05		$	(0.05	)		N/M

N/M — Percentage change not meaningful.

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UNITED STATES CELLULAR CORPORATION
CONSOLIDATED BALANCE SHEET HIGHLIGHTS
(Unaudited, dollars in thousands)

ASSETS

	March 31, 2003		December 31, 2002
Current Assets
Cash and cash equivalents
General funds	$	17,676	$	14,155
Affiliated cash equivalents		212		709
		17,888		14,864
Accounts receivable		245,905		315,251
Inventory		76,563		55,490
Collateral investment pledged		32,200		-
Prepaid expenses and other current assets		61,143		67,668
		433,699		453,273
Investments
Licenses		979,760		1,038,556
Goodwill		546,702		643,629
Customer list, net		35,599		40,087
Marketable equity securities		156,394		185,961
Marketable equity securities--loaned		30,610		-
Investments in unconsolidated entities, net		161,708		161,451
Notes and interest receivable--long-term		6,568		7,287
		1,917,341		2,076,971
Property, Plant and Equipment
In service and under construction		3,074,844		3,085,583
Less accumulated depreciation		1,083,890		1,051,792
		1,990,954		2,033,791
Deferred Charges
System development costs, net		108,892		114,642
Other, net		20,704		21,164
		129,596		135,806
Assets of Operations Held for Sale		226,422		-
Total Assets	$	4,698,012	$	4,699,841

NOTE: Certain December 31, 2002 amounts have been changed to conform to current period presentation.

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UNITED STATES CELLULAR CORPORATION
CONSOLIDATED BALANCE SHEET HIGHLIGHTS
(Unaudited, dollars in thousands)

LIABILITIES AND SHAREHOLDERS’ EQUITY

	March 31, 2003			December 31, 2002
Current Liabilities
9% senior notes	$	-		$	45,200
Notes payable		532,000			460,000
Accounts payable
Affiliates		6,436			4,958
Trade		242,275			301,929
Customer deposits and deferred revenues		86,676			82,639
Accrued interest		4,903			9,295
Accrued taxes		27,814			24,401
Accrued compensation		22,066			30,279
Collateral loan payable		32,200			-
Other current liabilities		19,651			20,323
		974,021			979,024
Long-term Debt
Long-term debt-affiliates		105,000			105,000
6% zero coupon convertible debentures		150,829			148,604
7.25% unsecured notes		250,000			250,000
Variable prepaid forward contract		159,856			159,856
8.75% notes		130,000			130,000
Other		13,000			13,000
		808,685			806,460
Deferred Liabilities and Credits		444,483			444,255
Minority Interest		57,975			55,068
Liabilities of Operations Held for Sale		9,823			-
Common Shareholders' Equity
Common Shares, par value $1 per share		55,046			55,046
Series A Common Shares, par value $1 per share		33,006			33,006
Additional paid-in capital		1,306,510			1,307,185
Treasury Shares		(116,479	)		(117,262	)
Accumulated other comprehensive income		12,831			10,306
Retained earnings		1,112,111			1,126,753
		2,403,025			2,415,034
Total Liabilities and Shareholders' Equity	$	4,698,012		$	4,699,841

NOTE: Certain December 31, 2002 amounts have been changed to conform to current period presentation.

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