EXHIBIT 99.1
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[McLEODUSA LOGO APPEARS HERE]


McLeodUSA Incorporated
McLeodUSA Technology Park
6400 C Street SW, PO Box 3177
Cedar Rapids, IA 52406-3177
Press and Investor Contact: Bryce E. Nemitz
bnemitz@mcleodusa.com
Phone: (319) 298-7800
FAX: (319) 298-7767

FOR IMMEDIATE RELEASE

        MCLEODUSA ANNOUNCES PROPOSED PRIVATE DEBT OFFERING

        Cedar Rapids, Iowa, March 10, 1998 - McLeodUSA Incorporated

(NASDAQ/NMS:MCLD), announced today it plans to raise approximately $200 million 
in a proposed private offering of senior notes to "qualified institutional 
buyers" as defined in Rule 144A under the Securities Act of 1933 and pursuant to
offers and sales that occur outside the United States in accordance with 
Regulation S under the Securities Act of 1933.

        McLeodUSA intends to use the proceeds from the proposed private 
offering, along with funds available from prior offerings and from other 
financing sources, to fund expanded development and construction costs of the 
Company's fiber optic network including the expansion of intra-city fiber optic 
networks; accelerated market expansion activities of the Company's 
telecommunications business; potential acquisitions, joint ventures and 
strategic alliances; the development, construction and operation of a PCS 
system; construction of the Company's corporate headquarters buildings; and for 
additional working capital and general corporate purposes, including funding 
operating deficits and net losses. The Company expects that a substantial amount
of the proceeds

 
of the Offering will be used to create funding capacity for the Company's 
proposed expansion of intra-city fiber optic networks.

        The senior notes proposed to be offered by McLeodUSA will not be 
registered under the Securities Act of 1933 or any state securities laws and, 
unless so registered may not be offered or sold except pursuant to an 
applicable exemption from the registration requirements of the Securities Act of
1933 and applicable state securities laws.

        This press release shall not constitute an offer to sell or the 
solicitation of an offer to buy the proposed senior note.