In 2008, the TDS companies look forward to building on their strong foundations to continue to provide excellent wireless and broadband services to an expanding customer base.

U.S. Cellular Objectives

• Focus on adding core retail postpay customers and growing profitably in its existing markets. No significant new market launches are planned for 2008.
• Roll out new branding and advertising to further differentiate itself from competitors.
• Add popular and profitable new data services.
• Add more data-intensive smart phones and multi-use devices.
• Roll out 3G/EVDO services in several additional metro markets by the end of the year.
• Work with industry partners on standards for Long-Term Evolution network technology for 4G services.

TDS Telecom Objectives

• Rapidly add DSL customers and increase the DSL speeds offered. The company's long-term broadband goal is to offer 25Mbps or higher data speeds to a substantial majority of its customers.
• Develop and introduce new broadband services and products.
• Aggressively market Triple Play service bundles to new and existing customers.
• Expand WiMAX availability in the Madison, Wisconsin metropolitan area.
• Enhance its cost-efficient structure.

We would like to express our deep appreciation to all of the 11,800 associates and employees of the TDS companies for their commitment and innovation in bringing excellent quality services to our customers and promoting high customer satisfaction. We would also like to thank LeRoy T. Carlson, TDS’ founder and soon to be director emeritus, for his ongoing, valuable service to the TDS companies and to the TDS Board of Directors.

In closing, we would like to thank you, the shareholders, and others who invest in TDS securities, for your continued support of the company’s long-term growth and value-creation initiatives.

Cordially yours,

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

Walter C.D. Carlson
Chairman of the Board