Exhibit 99.1

Press Release

SOURCE: McLeodUSA Incorporated

McLeodUSA Officers Certify Q1 and Q2 2002 Results
Certification of 2001 Results Withheld - Adoption of SFAS 144 Will Result
in Re-Audit of 2000 and 2001

CEDAR RAPIDS, Iowa--(BUSINESS WIRE)--Aug. 14, 2002--McLeodUSA Incorporated
(Nasdaq:MCLD), one of the nation's largest independent competitive local
exchange carriers, today announced that its Chief Executive Officer and
Chief Financial Officer have certified its Forms 10-Q for the periods ended
March 31 and June 30, 2002. It also filed the Form 10-Q for the period
ended June 30, 2002 with the Securities and Exchange Commission ("SEC").
The Company officers have not made the certifications required by the SEC
with respect to the Company's 2001 Form 10-K, as amended, and related 2001
financial information due to the fact that the Company's adoption of SFAS
144 "Accounting for the Impairment and Disposal of Long Lived Assets,"
which requires the Company to restate prior period financials to reflect
discontinued operations, necessitates a re-audit of the Company's financial
statements for the years ended December 2000 and 2001.

In connection with its Reorganization, McLeodUSA completed the sale of
certain businesses, including its directory publishing business ("Pubco"),
and recently entered into agreements to sell Illinois Consolidated
Telephone Company ("ICTC") and other non-core businesses. In the Quarterly
Report on Form 10-Q, based on the requirements of SFAS 144 "Accounting for
the Impairment and Disposal of Long Lived Assets," McLeodUSA is reflecting
these businesses and other businesses held for sale as discontinued
operations. In accordance with accounting principles generally accepted in
the United States of America, ("GAAP"), McLeodUSA is required to present
its financial statements for the years ended December 31, 2000 and 2001,
and each quarter, reflecting these businesses as discontinued operations.
The Company's former auditors, Arthur Andersen LLP ("Arthur Andersen"),
audited the Company's financial statements for the years ended December 31,
2000 and 2001. Since Arthur Andersen is no longer able to perform audits of
publicly traded companies, in order to comply with GAAP requirements
related to the financial presentation for discontinued operations, the SEC
will, in effect, require McLeodUSA's new auditor, Deloitte & Touche LLP
("Deloitte & Touche"), to re-audit the Company's financial statements for
the years ended December 31, 2000 and 2001 to provide McLeodUSA with an
audit opinion on such financial statements.

While McLeodUSA believes its financial statements for these years, as
audited by Arthur Andersen, complied with GAAP in all material respects
when such statements were filed with the SEC, its Chief Executive Officer
and Chief Financial Officer are unable to make certifications required by
the SEC with respect to any financial information for the years ended
December 31, 2001 and 2000, or any portion thereof, because the Company
anticipates that the results of the Deloitte & Touche audit will differ
from the prior audit by Arthur Andersen. Deloitte & Touche has informed
McLeodUSA that they have a different interpretation than Arthur Andersen
with respect to accounting standards applicable to revenue recognition on
certain Indefeasible Rights of Use ("IRU") transactions completed by
McLeodUSA during 2001. Deloitte & Touche's interpretation would result in a
change in classification of such IRU transactions from sales-type leases to
operating leases. Deloitte & Touche has also advised McLeodUSA that the
AICPA-SEC Regulations Committee has very recently expressed a position on
accounting treatment for IRU exchanges that will be applied retroactively
and which differs from previously accepted accounting practices. This
pronouncement would apply to one IRU contract for which the Company
recorded revenue in 2001. As a result, the Deloitte & Touche re-audit
process as it relates to these identified IRU transactions would likely
result in a non-cash reduction in 2001 total revenue and gross margin of
approximately $60 million and $20 million, respectively. These adjustments
for the six months ended June 30, 2001 would be a reduction of
approximately $33 million in revenue and $10 million in gross margin. Such
adjustment would also result in an annual non-cash increase in revenue and
gross margin of approximately $3 million in 2002 and going forward through
the term of these multi-year agreements. Other adjustments, if any, which
could be required as a result of the Deloitte & Touche re-audit, are
unknown at this time.

In light of the Company's reorganization, sale of businesses, and
implementation of "fresh-start" accounting on April 16, 2002, McLeodUSA
believes that the expense and effort associated with a re-audit may not be
in the best interest of the Company or its shareholders as it would result
in financial statements that are not comparable to the reorganized
Company's on-going operations. Therefore, the Company is considering
seeking a waiver of this requirement from the SEC. If required, the
Deloitte & Touche re-audits for 2000 and 2001 would be expected to be
completed by the end of the first quarter of 2003.

About McLeodUSA

McLeodUSA provides integrated communications services, including local
services, in 25 Midwest, Southwest, Northwest and Rocky Mountain states.
The Company is a facilities-based telecommunications provider with, as of
June 30, 2002, 43 ATM switches, 55 voice switches, 507 collocations, 525
DSLAMs and 4,740 employees. Visit the Company's Web site at
www.mcleodusa.com.

Some of the statements in this press release include statements about our
future expectations. Statements that are not historical facts are
"forward-looking statements" for the purpose of the safe harbor provided by
Section 21E of the Exchange Act and Section 27A of the Securities Act. Such
statements include projections of financial and operational results and
goals, including closing of sales of businesses, revenue, EBITDA,
profitability, savings and cash. These forward-looking statements are
subject to known as well as unknown risks and uncertainties that may cause
actual results to differ materially from our expectations. Our expectations
are based on various factors and assumptions and reflect only our
predictions. Factors that could cause actual results to differ materially
from the forward-looking statement include technological, regulatory,
public policy or other developments in our industry, availability and
adequacy of capital resources, current and future economic conditions, the
existence of strategic alliances, our ability to generate cash, our ability
to implement process and network improvements, our ability to attract and
retain customers, our ability to migrate traffic to appropriate platforms,
our ability to close on sales of businesses and changes in the competitive
climate in which we operate. These and other risks are described in more
detail in our most recent Annual Report on the Form 10-K and Form 10-K/A
both filed with the SEC. The Company undertakes no obligation to update
publicly any forward-looking statements, whether as a result of future
events, new information or otherwise.



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Contact:

     McLeodUSA Incorporated, Cedar Rapids
     Investor Contact:
     Bryce E. Nemitz, 319/790-7800
     or
     Press Contact:
     Bruce A. Tiemann, 319/790-7800
     mcleodusa_ir@mcleodusa.com