United States Cellular (USM) 8-K Results of Operations and Financial Condition

Exhibit 99.1

As previously announced, TDS and USM will hold a joint teleconference Feb. 9, 2005 at 10:00 a.m. Chicago time. Interested parties may listen to the call live on the U.S. Cellular web site atwww.uscellular.com in 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 STRONG GROWTH IN THE FOURTH QUARTER

CHICAGO - Feb. 9, 2005 - - United States Cellular Corporation [AMEX:USM] reported service revenues of $673.2 million for the fourth quarter of 2004, up 8.5 percent from $620.6 million in the comparable period a year ago. The company recorded operating income of $41.6 million during the quarter compared to $24.3 million in the fourth quarter of 2003. Net income and basic earnings per share were $40.5 million and $0.47, respectively, compared to net income and basic earnings per share of $20.6 million and $0.24, respectively, in the comparable period one year ago.

Operating income included $10.1 million of “Gain (loss) on assets held for sale” related to the Nov. 30, 2004, sale to ALLTEL Communications, Inc. (“ALLTEL”) of U.S. Cellular’s operations in two markets which were previously included in consolidated operations. In addition, “Gain (loss) on investments” included $26.6 million related to the sale of seven investment markets to ALLTEL on the same date.

Fourth quarter 2004 operating results do not include any results from operations of the south Texas markets that were sold to AT&T Wireless Services, Inc., now a subsidiary of Cingular Wireless LLC (“Cingular”), in Feb. 2004, or results of operations for the month of Dec. 2004 from the two markets sold to ALLTEL in Nov. 2004. The south Texas markets contributed $15 million of service revenues in the fourth quarter of 2003.

Fourth Quarter Highlights

• Customers totaled 4,945,000, a 12 percent increase from 4,409,000 customers one year earlier. Customers at Dec. 31, 2004 do not include 33,000 customers divested in the sale of markets to ALLTEL in 2004.
  
  
• Net customer activations from distribution channels totaled 150,000 during the quarter, compared to 141,000 activations for the same quarter of 2003.
  
  
• For the quarter, the company recorded postpay churn of 1.6 percent, which is favorable to industry averages.
  
  

• Average monthly retail service revenue per customer remained relatively constant at $40.55 compared to $40.64 in the same period a year ago.

President’s Comments
“The quarter brought to a close a very successful year for U.S. Cellular, one of significant accomplishments and strong operating results,” said John E. Rooney, president and chief executive officer. “The 150,000 net customers we added in the quarter through our marketing channels brought net customer additions for the year to 627,000, an increase of 40 percent over our net adds in 2003. Our post-pay churn rate for the quarter of 1.6 percent remains one of the industry’s lowest and testifies to the success of our customer satisfaction strategy. Service revenues for the quarter improved 8.5 percent year over year, despite our having divested several markets in the interim. On a comparable basis net of divested properties, service revenue increased 11 percent over last year’s fourth quarter.

“Contributing to our strong performance in the fourth quarter were the three new markets we launched in the third quarter. Oklahoma City, Lincoln, Neb. and Portland, Maine are each doing well and were ahead of their year-end revenue targets.

“During the quarter we also completed our three-year wireless network upgrade initiative – ahead of schedule and below our original spending plan. With all our markets now supporting CDMA 1X technology, we are able to offer our populareasyedge^SM data services in all of our service areas. Data services have been an excellent growth driver for the company. Customer take rates have been above our expectations, with data services revenue totaling $23 million in the quarter and $67 million for the year. We expect the take rate to improve even further as more customers begin to use data services and as we continue to enhance the features we offer.

“In summary, the fourth quarter was a solid quarter that concluded an excellent year for U.S. Cellular. During the year, we strengthened our footprint, initiating service in new markets that build on our existing footprint and divesting several that no longer supported our strategic direction. We completed our network upgrade initiative and enhanced our growing line of data services. And in 2004 we added a record number of new customers while keeping our churn rate low, despite wireless number portability.

“My thanks go to every one of our associates for their exceptional work and their continual focus on putting the customer first. Building on the momentum we achieved this year, and remaining centered on our customer satisfaction strategy, we are confident that 2005 will prove to be another strong year for U.S. Cellular.”

Reconciliation of Service Revenue

(Dollars in thousands)
Quarter Ended Dec. 31, 2003:
Service revenue as reported	$	620,639
Less service revenue attributed to markets sold or traded in 2004		14,962
Pro-forma service revenue for the three months ended Dec. 31, 2003	$	605,677
Service revenue as reported for the three months ended Dec. 31, 2004	$	673,223
Percentage year-over-year service revenue growth
for three months ended Dec. 31, 2004
Based on amounts as reported		8.5%
Based on pro-forma service revenue for the three months ended Dec. 31, 2003		11.2%

2

The pro-forma numbers above are non-GAAP financial measures as defined by SEC rules. Management believes that they are useful measures to evaluate the company’s performance excluding the divested markets, but they should not be considered as alternatives to GAAP.

As previously announced, TDS and U.S. Cellular will hold a joint teleconference Feb. 9, 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=1004106, or the conference call page of the Investor Relations section ofwww.uscellular.com, or connect by telephone at 888/245-6674 with a pass code of 3521201. The conference call will be archived on the conference call section of our web site atwww.uscellular.com. Prior to the commencement 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 U.S. Cellular web site.

As of Dec. 31, U.S. Cellular Corporation, the nation’s seventh largest wireless service carrier, provided wireless service to 4.9 million customers in 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.

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 the company to start up the operations of the licensed areas involved in the AT&T Wireless transaction completed in August 2003; the ability of the company 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 the company operates; changes due to industry consolidation; advances in telecommunications technology; the impact of wireless local number portability; changes in the telecommunications regulatory environment; changes in the value of investments, including variable prepaid forward contracts; an adverse change in the ratings afforded our 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 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 the Form 8-K used by U.S. Cellular to furnish this press release to the Securities and Exchange Commission, which are incorporated by reference herein.

U.S. Cellular’s web site iswww.uscellular.com

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UNITED STATES CELLULAR CORPORATION
SUMMARY OPERATING DATA

Quarter Ended		12/31/04			9/30/04			6/30/04			3/31/04			12/31/03
Consolidated Markets:
Total population (000s) (1)		44,391			45,581			45,581			45,581			46,267
Customer units		4,945,000			4,828,000			4,684,000			4,547,000			4,409,000
Gross customer unit activations		408,000			387,000			365,000			397,000			368,000
Net customer unit activations		150,000			144,000			137,000			196,000			141,000
Market penetration (1)		11.14	%		10.59	%		10.28	%		9.98	%		9.53	%
Cell sites in service		4,856			4,713			4,420			4,122			4,184
Average monthly revenue per unit (2)	$	46.12		$	48.49		$	47.79		$	46.16		$	47.80
Retail service revenue per unit (2)	$	40.55		$	41.51		$	41.58		$	40.26		$	40.64
Inbound roaming revenue per unit (2)	$	2.47		$	3.39		$	3.21		$	3.17		$	3.90
Long-distance/other revenue per unit (2)	$	3.10		$	3.59		$	3.00		$	2.73		$	3.26
Minutes of use (MOU) (3)		568			553			542			491			462
Postpay churn rate per month (4)		1.6	%		1.6	%		1.5	%		1.3	%		1.4	%
Marketing cost per gross
customer unit addition (5)	$	442		$	410		$	392		$	371		$	384
Capital Expenditures ($000s)	$	260,358		$	131,648		$	162,579		$	100,535		$	193,413

(1) Market penetration is calculated using 2003 Claritas population estimates for all periods of 2004 and 2002 Claritas estimates for 2003. "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 12/31/03 total population counts exclude the population of the 10 markets transferred to AT&T Wireless (now Cingular Wireless) in August 2003 and include the population of markets acquired from AT&T Wireless (now Cingular Wireless) in that transaction. 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	$	673,223	$	691,964	$	662,658	$	619,382	$	620,639
Components:
Retail service revenue during quarter	$	591,972	$	592,411	$	576,541	$	540,228	$	527,626
Inbound roaming revenue during quarter	$	36,027	$	48,402	$	44,516	$	42,499	$	50,653
Long-distance/other revenue during quarter	$	45,224	$	51,151	$	41,601	$	36,655	$	42,360
Divided by average customers during quarter (000s)		4,866		4,757		4,622		4,473		4,328
Divided by three months in each quarter		3		3		3		3		3
Average monthly revenue per unit	$	46.12	$	48.49	$	47.79	$	46.16	$	47.80
Retail service revenue per unit	$	40.55	$	41.51	$	41.58	$	40.26	$	40.64
Inbound roaming revenue per unit	$	2.47	$	3.39	$	3.21	$	3.17	$	3.90
Long-distance/other revenue per unit	$	3.10	$	3.59	$	3.00	$	2.73	$	3.26

(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.

4

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

							Increase (Decrease)
	2004			2003			Amount			Percent
Operating Revenues
Service	$	673,223		$	620,639		$	52,584			8.5%
Equipment sales		46,308			47,457			(1,149	)		(2.4%	)
Total Operating Revenues		719,531			668,096			51,435			7.7%
Operating Expenses
System operations (excluding depreciation shown below)		126,533			137,438			(10,905	)		(7.9%	)
Cost of equipment sold		130,223			110,001			20,222			18.4%
Selling, general and administrative		296,864			259,635			37,229			14.3%
Depreciation		122,901			102,235			20,666			20.2%
Amortization and accretion		11,490			12,193			(703	)		(5.8%	)
(Gain) loss on assets held for sale		(10,081	)		22,289			(32,370	)		N/M
Total Operating Expenses		677,930			643,791			34,139			5.3%
Operating Income		41,601			24,305			17,296			71.2%
Investment income		16,568			14,900			1,668			11.2%
Interest and dividend income		7,618			1,978			5,640			N/M
Interest (expense)		(21,304	)		(17,094	)		(4,210	)		(24.6%	)
Gain (loss) on investments		26,266			(1,700	)		27,966			N/M
Other income (expense), net		112			132			(20	)		(15.2%	)
		29,260			(1,784	)		31,044			N/M
Income Before Income Taxes and Minority Interest		70,861			22,521			48,340			N/M
Income tax expense (benefit)		27,307			(493	)		27,800			N/M
Income Before Minority Interest		43,554			23,014			20,540			89.3%
Minority share of income		(3,058	)		(2,448	)		(610	)		(24.9%	)
Net Income	$	40,496		$	20,566		$	19,930			96.9%
Basic Weighted Average Common Shares     Outstanding (000s)		86,344			86,148			196			0.2%
Basic Earnings (Loss) Per Share	$	0.47		$	0.24		$	0.23			95.8%
Diluted Weighted Average Common Shares     Outstanding (000s)		86,890			86,788			102			0.1%
Diluted Earnings (Loss) Per Share	$	0.47		$	0.24		$	0.23			95.8%

N/M - Percentage change not meaningful

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

							Increase (Decrease)
	2004			2003			Amount			Percent
Operating Revenues
Service	$	2,647,227		$	2,423,789		$	223,438			9.2%
Equipment sales		190,392			158,994			31,398			19.7%
Total Operating Revenues		2,837,619			2,582,783			254,836			9.9%
Operating Expenses
System operations (excluding depreciation shown below)		563,069			576,159			(13,090	)		(2.3%	)
Cost of equipment sold		486,952			355,150			131,802			37.1%
Selling, general and administrative		1,122,700			1,004,655			118,045			11.7%
Depreciation		450,032			374,769			75,263			20.1%
Amortization and accretion		47,910			57,564			(9,654	)		(16.8%	)
Loss on impairment of intangible assets		—			49,595			(49,595	)		N/M
(Gain) loss on assets held for sale		(10,806	)		45,908			(56,714	)		N/M
Total Operating Expenses		2,659,857			2,463,800			196,057			8.0%
Operating Income		177,762			118,983			58,779			49.4%
Investment income		68,481			52,063			16,418			31.5%
Interest and dividend income		10,801			4,872			5,929			121.7%
Interest (expense)		(86,241	)		(64,607	)		(21,634	)		(33.5%	)
Gain (loss) on investments		24,436			(5,200	)		29,636			N/M
Other income (expense), net		(2,607	)		39			(2,646	)		N/M
		14,870			(12,833	)		27,703			N/M
Income Before Income Taxes and Minority Interest		192,632			106,150			86,482			81.5%
Income tax expense		73,708			37,232			36,476			98.0%
Income Before Minority Interest		118,924			68,918			50,006			72.6%
Minority share of income		(9,903	)		(11,912	)		2,009			16.9%
Income Before Cumulative Effect of Accounting Change		109,021			57,006			52,015			91.2%
Cumulative effect of accounting change, net of tax		—			(14,346	)		14,346			N/M
Net Income	$	109,021		$	42,660		$	66,361			N/M
Basic Weighted Average Common Shares     Outstanding (000s)		86,244			86,136			108			0.1%
Basic Earnings (Loss) Per Share
Income from continuing operations	$	1.26		$	0.67		$	0.59			88.1%
Cumulative effect of accounting change		—			(0.17	)		0.17			N/M
	$	1.26		$	0.50		$	0.76			N/M
Diluted Weighted Average Common Shares     Outstanding (000s)		86,736			86,602			134			0.2%
Diluted Earnings (Loss) Per Share
Income from continuing operations	$	1.26		$	0.66		$	0.60			90.9%
Cumulative effect of accounting change		—			(0.17	)		0.17			N/M
	$	1.26		$	0.49		$	0.77			N/M

N/M - Percentage change not meaningful

6

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

ASSETS

	December 31, 2004		December 31, 2003
Current Assets
Cash and cash equivalents
General funds	$	40,863	$	9,822
Affiliated cash equivalents		59		26
		40,922		9,848
Accounts receivable		317,649		286,980
Inventory		76,918		70,963
Prepaid expenses		31,507		22,396
Deferred income tax asset		83,741		16,786
Other current assets		28,214		17,132
		578,951		424,105
Investments
Licenses		1,186,764		1,189,326
Goodwill		425,918		430,256
Customer list, net		24,915		24,448
License rights		42,037		42,037
Marketable equity securities		282,829		260,188
Investments in unconsolidated entities, net		162,764		170,569
Notes and interest receivable-long-term		4,885		6,476
		2,130,112		2,123,300
Property, Plant and Equipment
In service and under construction		3,910,080		3,441,177
Less accumulated depreciation		1,544,644		1,267,293
		2,365,436		2,173,884
Deferred Charges
System development costs, net		74,283		97,370
Other, net		33,145		26,565
		107,428		123,935
Assets of Operations Held for Sale		—		100,523
Total Assets	$	5,181,927	$	4,945,747

NOTE: Certain December 31, 2003 amounts have been changed to conform to current period presentation.

7a

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

LIABILITIES AND SHAREHOLDERS' EQUITY

	December 31, 2004			December 31, 2003
Current Liabilities
Current portion of long-term debt	$	—		$	3,000
Current portion of long-term debt - affiliates		—			105,000
Notes payable		30,000			—
Accounts payable
Affiliates		5,314			4,252
Trade		254,926			281,306
Customer deposits and deferred revenues		104,578			93,789
Accrued interest		6,120			11,416
Accrued taxes		78,624			25,477
Accrued compensation		49,116			39,257
Other current liabilities		18,188			18,399
		546,866			581,896
Long-term Debt
6% zero coupon convertible debentures		—			157,659
7.25% notes		—			250,000
Variable prepaid forward contract		159,856			159,856
8.75% notes		130,000			130,000
6.7% notes		530,930			436,829
7.5% notes		330,000			—
Other		10,000			10,000
		1,160,786			1,144,344
Deferred Liabilities and Credits		845,812			691,580
Minority Interest		40,373			60,097
Liabilities of Operations Held for Sale		—			2,427
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		1,302,496			1,308,963
Treasury Shares		(99,627	)		(115,156	)
Accumulated other comprehensive income		31,393			26,789
Retained earnings		1,265,776			1,156,755
		2,588,090			2,465,403
Total Liabilities and Shareholders' Equity	$	5,181,927		$	4,945,747

NOTE: Certain December 31, 2003 amounts have been changed to conform to current period presentation.

7b