EXHIBIT 99.1
 
[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, October 22, 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.
 
  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 notes.
 
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