Exhibit 99.1

Contact:	Mark A. Steinkrauss, Vice President, Corporate Relations
	(312) 592-5384 mark.steinkrauss@teldta.com

	Julie D. Mathews, Manager, Investor Relations
	(312) 592-5341 julie.mathews@teldta.com

FOR RELEASE: IMMEDIATE

TDS REPORTS FOURTH QUARTER 2005 OPERATING RESULTS;
UPDATES 2006 GUIDANCE

CHICAGO – July 28, 2006 – Telephone and Data Systems, Inc. [AMEX:TDS, TDS.S] reported operating revenues of $1,025.7 million for the fourth quarter of 2005, up 9 percent from $940.3 million, as restated, for the comparable period one year ago. Operating income was $104.1 million compared to an operating loss of $42.8 million, as restated, for the fourth quarter of 2004. Net income available to common and diluted earnings per share were $60.8 million and $0.52, respectively. In the fourth quarter of 2004, net loss available to common and loss per share were $32.2 million and $0.28, respectively, as restated.

On Dec. 19, 2005, U.S. Cellular completed an exchange of wireless assets with ALLTEL Communications, Inc. Under the agreement, U.S. Cellular received 146,000 total customers in Kansas and Nebraska while ALLTEL received 92,000 total customers in Idaho and $58.1 million in cash, including a preliminary working capital adjustment. In addition to customers, both companies received 850 MHz spectrum, cell sites, retail stores and agents. U.S. Cellular recorded a fourth quarter 2005 pre-tax gain of $44.7 million on the exchange.

In the fourth quarter of 2004, U.S. Cellular recorded a “Gain on sales of assets” of $10.1 million related to the sale of two operating markets to ALLTEL. Also in the fourth quarter of 2004, TDS Telecom recorded a “Loss on impairment of intangible assets” of $29.4 million and a “Loss on impairment of long-lived assets” of $87.9 million.

Fourth Quarter Highlights

·		TDS Telecom’s access line equivalents (ILEC and CLEC) increased 2 percent to nearly 1.2 million
·		The number of ILEC Digital Subscriber Lines (DSL) increased 56 percent, and the number of CLEC accounts grew 26 percent year over year
·		The ILEC’s long distance customers increased 9 percent to 321,500 with long distance penetration reaching 51 percent at Dec. 31, 2005
·		Total U.S. Cellular customers increased 11 percent year over year to 5,482,000 customers. Retail customers increased 10 percent to 4,927,000

U.S. Cellular recorded a postpay churn rate of 1.6 percent in the fourth quarter. For the full year 2005, U.S. Cellular’s postpay churn rate was 1.5 percent. 2005 marks the tenth consecutive year that U.S. Cellular’s postpay churn rate has remained below 2 percent.

TDS filed its Annual Report (Form 10-K) for the year ended Dec. 31, 2005, with the Securities and Exchange Commission earlier today.

On Nov. 10, 2005, TDS announced that it would restate financial results for several prior periods. TDS completed and filed its restatement on April 26, 2006. The time spent completing the restatement caused the company to be late with its other SEC filings.

TDS has not filed its Form 10-Q for the quarter ended March 31, 2006 on a timely basis. As a result, TDS is not in compliance with American Stock Exchange (AMEX) listing standards. TDS has been granted an extension until Nov. 14, 2006 to regain compliance with AMEX listing standards resulting from delayed filings with the SEC and delayed distribution of its 2005 annual report to shareholders.

In addition, TDS has received extended waivers from its lenders under credit agreements and from counterparties under certain forward contracts provided that it files its Forms 10-K for the year ended Dec. 31, 2005 by Aug. 31, 2006, its Forms 10-Q for the quarter ended March 31, 2006 within 30 days of filing the 2005 Form 10-K, and its Forms 10-Q for the quarter ended June 30, 2006 within 45 days of filing the first quarter Form 10-Q. TDS expects to file its Form 10-Q for the quarter ended Sept. 30, 2006 on or before the extended due date of Nov. 14, 2006.

Certain financial and statistical information will be posted to the Web site, together with reconciliations to generally accepted accounting principles (GAAP) of certain non-GAAP disclosures. Investors may access this additional information on the Guidance and Reconciliations page of the TDS Web site.

TDS updated its 2006 guidance as of July 28, 2006 and it is as follows. There can be no assurance that final results will not differ materially from this guidance.

U.S. Cellular 2006 guidance as of July 28, 2006 is as follows:
Net Retail Customer Additions		370,000 – 400,000
Service Revenues		Approx. $3.2 billion
Operating Income		$250 - 300 million
Depreciation, Amortization & Accretion		$585 million
Capital Expenditures		$580 - $610 million

TDS Telecom ILEC operations 2006 guidance as of July 28, 2006 is as follows:
Operating Revenues		$645 - $655 million
Operating Income		$145 - $155 million
Depreciation and Amortization		$135 million
Capital Expenditures		$105 – 120 million (1)

TDS Telecom CLEC operations 2006 guidance as of July 28, 2006 is as follows:
Operating Revenues		$230 - $240 million
Operating Income		Approx. $(5) million
Depreciation and Amortization		$25 million
Capital Expenditures		Approx. $20 million

(1)

Includes approximately $95 million to support ongoing operations and approximately $15 -$20 million for strategic initiatives

About TDS

TDS is a diversified telecommunications corporation founded in 1969. Through its business units, U.S. Cellular and TDS Telecom, TDS operates primarily by providing wireless, local telephone and broadband services. As of Dec. 31, 2005, the company employed 11,600 people and served 6.7 million customers/units in 36 states.

About U.S. Cellular

As of Dec. 31, 2005, U.S. Cellular Corporation, the nation's sixth-largest wireless service carrier, provided wireless service to 5.5 million customers in 26 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, projections and assumptions, 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: The ability of U.S. Cellular 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 U.S. Cellular and TDS Telecom operate; changes due to industry consolidation; advances in telecommunications technology, including Voice over Internet Protocol; changes to access and pricing of unbundled network elements; changes in the state and federal telecommunications regulatory environment; changes in the value of investments, including variable prepaid forward contracts; an adverse change in the ratings afforded TDS and U.S. Cellular debt securities by accredited ratings organizations; uncertainty of access to the capital markets; possible future restatements; 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 U.S. Cellular and TDS Telecom markets. Investors are encouraged to consider these and other risks and uncertainties that are discussed in the Form 8-K used by TDS to furnish this press release to the SEC, which are incorporated by reference herein.

For more information about TDS or its business units, visit:

TDS: www.teldta.com		TDS Telecom: www.tdstelecom.com
USM: www.uscellular.com		TDS Metrocom: www.tdsmetro.com

###

TELEPHONE AND DATA SYSTEMS, INC.
SUMMARY OPERATING DATA

Quarter Ended	12/31/2005			9/30/2005			6/30/2005			3/31/2005			12/31/2004
U.S. Cellular
Consolidated Markets:
Total population (000s) (1)	45,244			44,690			44,690			44,576			44,391
All customers -
Customer units	5,482,000			5,303,000			5,227,000			5,127,000			4,945,000
Gross customer unit activations	419,000			355,000			340,000			426,000			408,000
Net customer unit activations	125,000			76,000			94,000			182,000			150,000
Market penetration (1)	12.12		%	11.87		%	11.70		%	11.50		%	11.14		%
Retail customers -
Customer units	4,927,000			4,765,000			4,688,000			4,601,000			4,478,000
Gross customer unit activations	392,000			346,000			317,000			365,000			358,000
Net customer unit activations	130,000			77,000			81,000			123,000			105,000

Cell sites in service	5,428			5,149			5,034			4,899			4,856
Average monthly revenue per unit (2)	$	45.94		$	46.19		$	44.52		$	44.46		$	45.41
Retail service revenue per unit (2)	$	40.19		$	40.25		$	39.40		$	39.20		$	39.93
Inbound roaming revenue per unit (2)	$	2.31		$	2.70		$	2.27		$	1.98		$	2.38
Long-distance/other revenue per unit (2)	$	3.44		$	3.24		$	2.85		$	3.28		$	3.10
Minutes of use (MOU) (3)	648			639			627			584			568
Postpay churn rate per month (4)	1.6		%	1.5		%	1.4		%	1.5		%	1.6		%
Marketing cost per gross customer unit addition (5)	$	498		$	491		$	461		$	396		$	440
Construction Expenditures (000s)	$	201,700		$	128,300		$	143,800		$	112,800		$	261,500

(1) Market penetration is calculated using 2004 Claritas population estimates for all periods of 2005 and 2003 Claritas estimates for all periods of 2004. "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 12/31/05, 9/30/05 and 6/30/05 total population counts include the population of the market acquired from Cingular Wireless in April 2005. The total population counts on and after 12/31/04 exclude the population of the two markets sold to ALLTEL in November 2004. 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, nor are the population counts of markets for which Carroll Wireless, L.P., a consolidated U.S. Cellular subsidiary, was the winning bidder in the Federal Communications Commission's Auction 58 that concluded in February 2005. The total population counts for 12/31/05 exclude the population of the two markets divested to ALLTEL in December 2005, and include the population of the 15 markets acquired in the same transaction.

(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	$	738,682	$	729,504	$	691,746	$	671,639	$	662,955
Components:
Retail service revenue during quarter	$	646,178	$	635,610	$	612,159	$	592,167	$	582,950
Inbound roaming revenue during quarter	$	37,184	$	42,654	$	35,313	$	29,875	$	34,812
Long-distance/other revenue during quarter	$	55,320	$	51,240	$	44,274	$	49,597	$	45,193

Divided by average customers during quarter (000s)	5,360		5,264		5,179		5,035		4,866
Divided by three months in each quarter	3		3		3		3		3

Average monthly revenue per unit	$	45.94	$	46.19	$	44.52	$	44.46	$	45.41
Retail service revenue per unit	$	40.19	$	40.25	$	39.40	$	39.20	$	39.93
Inbound roaming revenue per unit	$	2.31	$	2.70	$	2.27	$	1.98	$	2.38
Long-distance/other revenue per unit	$	3.44	$	3.24	$	2.85	$	3.28	$	3.10

(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) This measurement is not 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.

TELEPHONE AND DATA SYSTEMS, INC.
SUMMARY OPERATING DATA

Quarter Ended	12/31/2005			9/30/2005			6/30/2005			3/31/2005			12/31/2004
TDS Telecom
ILEC:
Access line equivalents (1)	735,300			734,800			734,200			734,000			730,400
Access lines	635,500			640,700			645,800			649,300			652,300
Dial-up Internet service accounts	90,700			89,700			94,500			98,200			101,300
Digital Subscriber Lines (DSL) customers	65,500			60,300			54,200			49,300			41,900
Long Distance customers	321,500			316,100			310,000			302,400			295,000
Construction Expenditures (000s)	$	37,500		$	25,100		$	18,800		$	16,100		$	27,000
CLEC:
Access line equivalents (1)	448,600			445,600			442,900			438,000			426,800
Dial-up Internet service accounts	14,200			14,700			16,000			17,100			18,200
Percent of access lines on-switch	91.1		%	90.6		%	89.8		%	88.8		%	87.9		%
Digital Subscriber Lines (DSL) customers	36,400			34,800			33,500			31,600			29,000
Construction Expenditures (000s)	$	8,500		$	7,100		$	7,200		$	4,300		$	12,800

(1) Access line equivalents are derived by converting high capacity data lines to the estimated capacity of one switched access line.

TELEPHONE AND DATA SYSTEMS, INC.
FINANCIAL HIGHLIGHTS
Three Months Ended December 31,
(Unaudited, dollars in thousands, except per share amounts)

				2004			Increase (Decrease)
	2005			(As Restated)			Amount			Percent
Operating Revenues
U.S. Cellular	$	787,345		$	709,143		$	78,202		11.0	%
TDS Telecom	234,391			227,098			7,293			3.2	%
All Other (1)	3,936			4,079			(143		)	(3.5	)%
	1,025,672			940,320			85,352			9.1	%
Operating Expenses
U.S. Cellular
Expenses excluding depreciation, amortization and accretion	632,164			546,337			85,827			15.7	%
Depreciation, amortization and accretion	128,212			134,453			(6,241		)	(4.6	)%
(Gain) on sales of assets	(44,660		)	(10,081		)	(34,579		)	N/M
	715,716			670,709			45,007			6.7	%
TDS Telecom
Expenses excluding depreciation and amortization	149,215			147,496			1,719			1.2	%
Depreciation and amortization	42,628			44,240			(1,612		)	(3.6	)%
Loss on impairment of intangible assets	—			29,440			(29,440		)	N/M
Loss on impairment of long-lived assets	—			87,910			(87,910		)	N/M
	191,843			309,086			(117,243		)	(37.9	)%
All Other (1)
Expenses excluding depreciation and amortization	13,359			2,706			10,653			N/M
Depreciation and amortization	692			655			37			5.6	%
	14,051			3,361			10,690			N/M

Total Operating Expenses	921,610			983,156			(61,546		)	(6.3	)%
Operating Income (Loss)
U.S. Cellular	71,629			38,434			33,195			86.4	%
TDS Telecom	42,548			(81,988		)	124,536			151.9	%
All Other (1)	(10,115		)	718			(10,833		)	N/M
	104,062			(42,836		)	146,898			N/M
Investment and Other Income (Expense)
Investment income	18,746			15,989			2,757			17.2	%
Interest and dividend income	16,813			14,640			2,173			14.8	%
Gain (loss) on investments	(5,400		)	40,530			(45,930		)	(113.3	)%
Interest expense	(55,781		)	(51,328		)	(4,453		)	(8.7	)%
Other income (expense), net	5,098			(910		)	6,008			N/M
	(20,524		)	18,921			(39,445		)	N/M
Income (Loss) Before Income Taxes and Minority Interest	83,538			(23,915		)	107,453			N/M
Income tax expense	13,431			1,050			12,381			N/M
Income (Loss) Before Minority Interest	70,107			(24,965		)	95,072			N/M
Minority share of income	(9,891		)	(9,159		)	(732		)	(8.0	)%
Income (Loss) From Continuing Operations	60,216			(34,124		)	94,340			N/M
Discontinued Operations, net of tax	657			2,011			(1,354		)	(67.3	)%
Net Income (Loss)	60,873			(32,113		)	92,986			N/M
Preferred dividend requirement	(50		)	(51		)	1			2.0	%
Net Income (Loss) Available to Common	$	60,823		$	(32,164	)	$	92,987		N/M

Basic Weighted Average Common Shares Outstanding (000s)	115,531			114,846			685			0.6	%
Basic Earnings (Loss) Per Share
Income (Loss) From Continuing Operations	$	0.52		$	(0.30	)	$	0.82		N/M
Discontinued Operations	0.01			0.02			(0.01		)	N/M
	$	0.53		$	(0.28	)	$	0.81		N/M

Diluted Weighted Average Common Shares Outstanding (000s)	116,189			114,846			1,343			1.2	%
Diluted Earnings (Loss) Per Share
Income (Loss) From Continuing Operations	$	0.51		$	(0.30	)	$	0.81		N/M
Discontinued Operations	0.01			0.02			(0.01		)	N/M
	$	0.52		$	(0.28	)	$	0.80		N/M

(1) Consists of Suttle Straus printing and distribution operations, TDS Corporate operations and intercompany eliminations.

N/M - Percentage change not meaningful

TELEPHONE AND DATA SYSTEMS, INC.
FINANCIAL HIGHLIGHTS
Year Ended December 31,
(Unaudited, dollars in thousands, except per share amounts)

				2004			Increase (Decrease)
	2005			(As Restated)			Amount			Percent
Operating Revenues
U.S. Cellular	$	3,035,887		$	2,808,201		$	227,686		8.1	%
TDS Telecom	906,054			880,145			25,909			2.9	%
All Other (1)	18,128			15,574			2,554			16.4	%
	3,960,069			3,703,920			256,149			6.9	%
Operating Expenses
U.S. Cellular
Expenses excluding depreciation, amortization and accretion	2,327,173			2,137,476			189,697			8.9	%
Depreciation, amortization and accretion	509,072			498,202			10,870			2.2	%
(Gain) on sales of assets	(44,660		)	(10,806		)	(33,854		)	N/M
	2,791,585			2,624,872			166,713			6.4	%
TDS Telecom
Expenses excluding depreciation and amortization	577,744			555,711			22,033			4.0	%
Depreciation and amortization	165,616			170,014			(4,398		)	(2.6	)%
Loss on impairment of intangible assets	—			29,440			(29,440		)	N/M
Loss on impairment of long-lived assets	—			87,910			(87,910		)	N/M
	743,360			843,075			(99,715		)	(11.8	)%
All Other (1)
Expenses excluding depreciation and amortization	24,362			11,459			12,903			112.6	%
Depreciation and amortization	2,755			2,515			240			9.5	%
	27,117			13,974			13,143			94.1	%

Total Operating Expenses	3,562,062			3,481,921			80,141			2.3	%
Operating Income (Loss)
U.S. Cellular	244,302			183,329			60,973			33.3	%
TDS Telecom	162,694			37,070			125,624			N/M
All Other (1)	(8,989		)	1,600			(10,589		)	N/M
	398,007			221,999			176,008			79.3	%
Investment and Other Income (Expense)
Investment income	69,753			64,900			4,853			7.5	%
Interest and dividend income	158,199			28,803			129,396			N/M
Gain (loss) on investments	(4,900		)	38,209			(43,109		)	(112.8	)%
Interest expense	(216,021		)	(198,706		)	(17,315		)	(8.7	)%
Other income (expense), net	(8,899		)	(6,592		)	(2,307		)	(35.0	)%
	(1,868		)	(73,386		)	71,518			97.5	%
Income Before Income Taxes and Minority Interest	396,139			148,613			247,526			166.6	%
Income tax expense	140,572			59,251			81,321			137.2	%
Income Before Minority Interest	255,567			89,362			166,205			186.0	%
Minority share of income	(34,020		)	(28,872		)	(5,148		)	(17.8	)%
Income From Continuing Operations	221,547			60,490			161,057			N/M
Discontinued Operations, net of tax	997			6,362			(5,365		)	(84.3	)%
Net Income	222,544			66,852			155,692			N/M
Preferred dividend requirement	(202		)	(203		)	1			(0.5	)%
Net Income Available to Common	$	222,342		$	66,649		$	155,693		N/M

Basic Weighted Average Common Shares Outstanding (000s)	115,296			114,592			705			0.6	%
Basic Earnings Per Share
Continuing Operations	$	1.92		$	0.53		$	1.39		N/M
Discontinued Operations	0.01			0.05			(0.04		)	N/M
	$	1.93		$	0.58		$	1.35		N/M

Diluted Weighted Average Common Shares Outstanding (000s)	116,081			115,134			947			0.8	%
Diluted Earnings Per Share
Continuing Operations	$	1.90		$	0.52		$	1.38		N/M
Discontinued Operations	0.01			0.05			(0.04		)	N/M
	$	1.91		$	0.57		$	1.34		N/M

(1) Consists of Suttle Straus printing and distribution operations, TDS Corporate operations and intercompany eliminations.

N/M - Percentage change not meaningful

TELEPHONE AND DATA SYSTEMS, INC.
CONSOLIDATED BALANCE SHEET HIGHLIGHTS
(Unaudited, dollars in thousands)

ASSETS
			December 31,
	December 31,		2004
	2005		(As Restated)
Current Assets
Cash and cash equivalents	$	1,095,791	$	1,171,105
Accounts receivable from customers and other	496,582		439,309
Deferred income tax asset	13,438		43,867
Materials and supplies, at average cost	103,211		91,556
Other current assets	69,947		71,877
	1,778,969		1,817,714

Investments
Licenses	1,365,063		1,228,801
Goodwill	869,792		843,387
Customer lists	49,318		24,915
Marketable equity securities	2,531,690		3,398,804
Investments in unconsolidated entities	215,424		199,518
Other investments	12,274		23,039
	5,043,561		5,718,464

Property, Plant and Equipment, net
U.S. Cellular	2,576,764		2,440,720
TDS Telecom	918,564		945,762
Other	30,877		32,962
	3,526,205		3,419,444


Other Assets and Deferred Charges	55,830		56,981

Total Assets	$	10,404,565	$	11,012,603

LIABILITIES AND STOCKHOLDERS’ EQUITY
				December 31,
	December 31,			2004
	2005			(As Restated)
Current Liabilities
Current portion of long-term debt	$	237,948		$	38,787
Notes payable	135,000			30,000
Accounts payable	357,273			327,497
Customer deposits and deferred revenues	121,228			119,196
Accrued taxes	47,180			63,184
Accrued compensation	67,443			71,707
Other current liabilities	90,032			79,100
	1,056,104			729,471

Deferred Liabilities and Credits
Net deferred income tax liability	1,383,031			1,488,655
Derivative Liability	449,192			1,210,500
Other deferred liabilities and credits	268,077			220,206
	2,100,300			2,919,361

Long-term Debt	3,340,801			3,664,243

Minority Interest in Subsidiaries	552,884			499,468

Preferred Shares	3,863			3,864

Common Stockholders’ Equity
Common Shares, $.01 par value	565			564
Special Common Shares, $.01 par value	629			—
Series A Common Shares, $.01 par value	64			64
Capital in excess of par value	1,826,420			1,822,541
Treasury Shares, at cost
Common Shares	(208,156		)	(449,173		)
Special Common Shares	(210,600		)	—
Accumulated other comprehensive income	309,009			370,857
Retained earnings	1,632,682			1,451,343
	3,350,613			3,196,196

Total Liabilities and Stockholders’ Equity	$	10,404,565		$	11,012,603

BALANCE SHEET HIGHLIGHTS
DECEMBER 31, 2005
(Unaudited, dollars in thousands)

		U.S.		TDS		TDS Corporate		Intercompany			TDS
		Cellular		Telecom		& Other		Eliminations			Consolidated
Cash and cash equivalents		$	29,003	$	353,708	$	713,080	$	—		$	1,095,791
Affiliated cash investments		—		406,293		—		(406,293		)	—
Notes receivable—affiliates		—		—		273,582		(273,582		)	—
		$	29,003	$	760,001	$	986,662	$	(679,875	)	$	1,095,791

Licenses, goodwill and customer lists		$	1,883,198	$	398,694	$	2,281	$	—		$	2,284,173
Marketable equity securities		225,387		63,073		2,243,230		—			2,531,690
Investment in unconsolidated entities		170,337		3,623		50,330		(8,866		)	215,424
Other investments		4,707		4,191		3,376		—			12,274
		$	2,283,629	$	469,581	$	2,299,217	$	(8,866	)	$	5,043,561

Property, Plant and Equipment, net		$	2,576,764	$	918,564	$	30,877	$	—		$	3,526,205

Notes payable:	external	$	135,000	$	—	$	—	$	—		$	135,000
	cash management	—		—		406,293		(406,293		)	—
	intercompany	—		273,582		—		(273,582		)	—
		$	135,000	$	273,582	$	406,293	$	(679,875	)	$	135,000

Forward contracts		$	159,856	$	41,182	$	1,506,244	$	—		$	1,707,282

Long-term Debt:
Current portion		$	—	$	452	$	237,496	$	—		$	237,948
Non-current portion		1,001,385		4,217		627,917		—			1,633,519
Total		$	1,001,385	$	4,669	$	865,413	$	—		$	1,871,467

Preferred Shares		$	—	$	—	$	3,863	$	—		$	3,863

Construction expenditures:
Quarter ended 12/31/05		$	201,731	$	45,964	$	2,148				$	249,843
Year ended 12/31/05		$	586,575	$	124,610	$	9,372				$	720,557

TDS Telecom Highlights
Three Months Ended December 31,
(Unaudited, dollars in thousands)

				2004			Increase (Decrease)
	2005			(As Restated)			Amount			Percent
Local Telephone Operations
Operating Revenues
Local service	$	51,821		$	51,855		$	(34	)	(0.1	)%
Network access and long-distance	98,285			93,976			4,309			4.6	%
Miscellaneous	24,827			24,849			(22		)	(0.1	)%
	174,933			170,680			4,253			2.5	%
Operating Expenses
Network operations	49,687			46,012			3,675			8.0	%
Customer operations	23,687			25,386			(1,699		)	(6.7	)%
Corporate expenses	26,146			21,733			4,413			20.3	%
Depreciation and amortization	34,013			34,026			(13		)	(0.0	)%
	133,533			127,157			6,376			5.0	%

Operating Income	$	41,400		$	43,523		$	(2,123	)	(4.9	)%

Competitive Local Exchange Carrier Operations
Revenues	$	60,574		$	57,704		$	2,870		5.0	%

Expenses excluding depreciation and amortization	50,811			55,651			(4,840		)	(8.7	)%
Depreciation and amortization	8,615			10,214			(1,599		)	(15.7	)%
Loss on impairment of intangible assets	—			29,440			(29,440		)	N/M
Loss on impairment of long-lived assets	—			87,910			(87,910		)	N/M
	59,426			183,215			(123,789		)	N/M

Operating Income (Loss)	$	1,148		$	(125,511	)	$	126,659		N/M

Intercompany revenues	$	(1,116	)	$	(1,286	)	$	170		N/M
Intercompany expenses	(1,116		)	(1,286		)	170			N/M
	—			—			—			N/M

Total TDS Telecom Operating Income (Loss)	$	42,548		$	(81,988	)	$	124,536		N/M

N/M - Percentage change not meaningful.

TDS Telecom Highlights
Year Ended December 31,
(Unaudited, dollars in thousands)

		2004			Increase (Decrease)
	2005	(As Restated)			Amount			Percent
Local Telephone Operations
Operating Revenues
Local service	$202,021	$	204,834		$	(2,813	)	(1.4	)%
Network access and long-distance	373,737	362,890			10,847			3.0	%
Miscellaneous	93,966	90,606			3,360			3.7	%
	669,724	658,330			11,394			1.7	%
Operating Expenses
Network operations	183,921	166,262			17,659			10.6	%
Customer operations	92,460	93,835			(1,375		)	(1.5	)%
Corporate expenses	89,232	83,390			5,842			7.0	%
Depreciation and amortization	135,178	131,665			3,513			2.7	%
	500,791	475,152			25,639			5.4	%

Operating Income	$168,933	$	183,178		$	(14,245	)	(7.8	)%

Competitive Local Exchange Carrier Operations
Revenues	$241,310	$	226,259		$	15,051		6.7	%

Expenses excluding depreciation and amortization	217,111	216,668			443			0.2	%
Depreciation and amortization	30,438	38,349			(7,911		)	(20.6	)%
Loss on impairment of intangible assets	—	29,440			(29,440		)	N/M
Loss on impairment of long-lived assets	—	87,910			(87,910		)	N/M
	247,549	372,367			(124,818		)	N/M

Operating (Loss)	$(6,239)	$	(146,108	)	$	139,869		N/M

Intercompany revenues	$(4,980)	$	(4,444	)	$	(536	)	N/M
Intercompany expenses	(4,980)	(4,444		)	(536		)	N/M
	—	—			—			N/M

Total TDS Telecom Operating Income	$162,694	$	37,070		$	125,624		N/M

N/M - Percentage change not meaningful.