Looking Forward: Key Initiatives in 2007 and Beyond
The TDS companies have a number of significant initiatives in progress, including:

U.S. Cellular

• Grow the number of postpay customers and expand market share in recently developed markets.  No major new market launches are planned for 2007.
• Expand points of distribution in larger markets.
• Continue to add popular and profitable easyedge services.
• Add new handsets targeted at both consumer and business segments.
• Expand services in the 3G market trial in Milwaukee.
• Improve profitability and cash flow from operating activities.

TDS Telecom

• Strengthen its leading broadband position through rapid DSL growth.
• Develop and roll out new services and applications for broadband customers.
• Continue trials of video and fixed wireless technologies.
• Aggressively market bundles of voice, high-speed data, and video services.
• Continue to improve the cost structure.

The TDS, U.S. Cellular, and TDS Telecom associates/employees—now totaling 11,600—continue to dedicate their energy and talents to fulfilling the TDS mission of providing outstanding communications services to our customers, and meeting the needs of our shareholders, our people, and our communities.  In closing, we would like to extend our thanks to the shareholders of TDS for your ongoing support of the company’s objectives.

Cordially yours,

LeRoy T. Carlson, Jr.
President and Chief Executive Officer

Walter C.D. Carlson
Chairman of the Board