Exhibit 99.1 Description of Slides Regarding McLeodUSA's Proposed Acquisition
of Splitrock.
Slide 01
Large McLeodUSA logo and Splitrock logo
Slide 02
A Great Deal. . .
Consideration
Stock 34M (shares)*
Fixed Exchange Ratio ($30-31)
Debt (net) $150M
Enterprise value 2.1B
Key Terms
No Cap or Collar Provisions
Voting Agreement (55% shares)
3-year Shareholder Agreement
Purchase Accounting
Expected Close - 2Q00
*13% Fully Diluted
McLeodUSA logo . . .accelerating data rollout
Slide 03
McLeodUSA. . . .
[Below this text Local Business Lines, and on the left side of the slide appears
a map of the continental United States, showing the 48 states therein. The two
letter postal state abbreviation symbols "WA," "OR," "ID," "MT," "WY," "UT,"
"AZ," "NM," "CO," "KS," "NE," "SD," "ND," "MN," "WI," "IA," "MO," "IL," "IN,"
"OH," "MI," appear in bold type within the respective boundaries of the state
which each symbol represents. The following numerical percentages appear within
the following states: Michigan "8%," Illinois "31%," Wisconsin "14%," Minnesota
"19%," Iowa "43%," Nebraska "1%," South Dakota "30%," North Dakota "26%,"
Wyoming `25%," Colorado "12%,". Stars and numerical percentages associated
therewith are located in the states of Indiana "7%" and Missouri "37%". The
following years appear within the following states: Ohio 2001, Kansas 2000, New
Mexico 2000, Arizona 2000, Utah 2000, Oregon 2000, Washington 2000, Idaho 2000
and Montana 2000. Below the map on
the left side appears a legend showing a star with the text "Springfield, MO"
and "Indianapolis, IN" to its right. Below the map on the left side appears text
"Excludes Tier 1 Markets". Beside the map on the right side text is listed with
bullet points: High Marketshare Lowest Attrition, 10,000 Mile Network, Best
Systems Customer & Network, Brand - 24M Directories]
McLeodUSA logo . . .great plan, great execution
Slide 04
SPLITROCK Next Generation. . .
[Centered in the slide is a diagram of the 48 continental United States and
Alaska and Hawaii. Above the diagram is a legend showing ATM POPs - 350.
Inside the Diagram are sporadic dots showing the 350 ATM POPs. Beside the
diagram is text listed with bullet points: 90% U.S. Coverage 800 Cities, 16,000
Mile Fiber (Level 3, 2001), ATM-to-the-Edge All Products All Locations.]
McLeodUSA logo . . .data connections company
Slide 05
Drivers to Growth. . .
Time to Market (arrow pointing right) SPLT Network Now
Systems (arrow pointing right) SPLT + MCLD/WilTel
Execution (arrow pointing right) Wilkens, SPLT Team, More
McLeodUSA logo . . .keys to the opportunity
Slide 06
Experienced and Focused. . .
[Organizational chart listing the Chief Executive Office. In the first row in
one box is Clark McLeod with his title as Chairman & CEO of McLeodUSA
Incorporated his Focus: External. In the second row are two boxes the first is
Steve Gray with his title Pres/CEO CLEC Focus: Regional/Retail. The second box
lists Roy Wilkens with his title of Pres/CEO Data Focus: National/Data.]
McLeodUSA logo . . .the formula for execution
Slide 07
Roy Wilkens. . .
. President/CEO McLeodUSA Data - January 2000
. Founder/CEO WilTel 1985-1997
. Completed first transcontinental fiber build
. Largest and most respected wholesaler
. Premier data company in the United States (first nationwide frame relay
service)
. Acquired by WorldCom 1995 (CEO WilTel and Vice Chairman WorldCom 1995-97)
. Appointments
. National Security Telecommunications Advisory Council (both President Bush
and President Clinton)
. Past chairman of Comptel
. TRA voted Wilkens most influential person (Telecom, last 15 years)
McLeodUSA logo . . .a leader in telecommunications
Slide 08
Network Combination. . .
[Centered on the slide is a diagram of the continental United Sates. In dark
print are lines connecting McLeodUSA's current switch and fiber routes along
with current switch sites. In light print are lines of Splitrock's current
fiber route, core sites, hub sites and network centers. To the right of the
diagram is a key listing a light star as McLeodUSA's current switch site, a dark
star listing McLeodUSA's future switch site, and a dark line listing the fiber
route. Below the McLeodUSA key is a key for Splitrock listing light triangle
for Core sites, a light circle for hub sites, a light line for fiber route, and
a light triangle with a circle around it for the network center. Below this
diagram is the text illustration only. Above the diagram is text 26,000 Fiber
Miles.]
McLeodUSA logo . . .a perfect fit
Slide 09
Benefit of McLeodUSA and Splitrock. . .
In-Region Customer - Retail (arrow up) Rev. (arrow down) Cost
More Data Products, ATM-to-the Edge/TM/ X X
More Customer Types (S,M,L) X X
Product Use Out-of-Region, Travel X X
Out-of-Region Termination, Data & Voice X
Out-of-Region Customers - National Data
1st, 2nd, 3rd Tier Coverage - 90% USA X X
All Products, 800 Cities X X
McLeodUSA logo . . .both top and bottom line
Slide 10
Stock Price Exchange Ratio. . .
[Two line graphs appear. One listing the Splitrock Daily Closing price:
08/02/99 Through 01/06/00. Numbers, shown as prices, up the left side are even
numbers showing "10," "12," "14," "16," "18," "20," "22," "24," "26". Along the
bottom line are the months "Sept," "Oct," "Nov," "Dec," "Jan 2000." The second
graph lists Exchange Ratio: 08/02/99 through 01/06/00. Numbers up the left side
shown as Exchange Ratio are listed at "0.30," "0.35," 0.40," 0.45," "0.50,"
"0.55," "0.60". Along the bottom are months with the first letter abbreviation
and a day of the week number above it, starting with A 6 and showing a point for
each week until J 6 2000. Above the "J 6" is a dot with the words Deal Price 5
day avg.]
McLeodUSA logo . . .great timing
Slide 11
McLeodUSA and Splitrock. . .
Right Assets
Right Management
Right Execution
Right Time
McLeodUSA logo . . .right combination
Slide 12
Large McLeodUSA logo and Splitrock logo