Telephone and Data Systems, Inc.
       
        Percent
(Dollars in thousands, except per share amounts) 2004   2003 Change
Operating revenues        
    U.S. Cellular $2,837,619   $2,582,783 10%
    TDS Telecom 882,770   862,433 2%
  $3,720,389   $3,445,216 8%
         
Operating income 220,751   267,888 (18)%
Depreciation, amortization and accretion 667,956   595,732 12%
Operating income before depreciation, amortization and accretion* 888,707   863,620 3%
Loss on impairment of intangible assets 29,440   49,595 n/m
Loss on impairment of long-lived assets 87,910   4,914 n/m
(Gain) loss on assets held for sale (10,806 ) 45,908 n/m
Operating cash flow* $995,251   $964,037 3%
         
Income from continuing operations $42,642   $60,006 (29)%
Basic weighted average common shares (000s) 57,296   57,721 (1)%
Basic earnings per share (EPS) $0.85   $0.80 6%
Diluted earnings per share (EPS) 0.84   0.79 6%
Dividends per share 0.66   0.62 6%
Common stockholders’ equity $3,190,748   $3,078,872 4%
Return on average equity 1.4%   2.0% n/m
Capital expenditures $798,252   $776,967 3%
Total assets $10,993,841   $10,193,338 8%
Wireless customers 4,945,000   4,409,000 12%
Telephone access line equivalent        
     Incumbent Local Exchange Carrier (ILEC) 730,400   722,200 1%
     Competitive Local Exchange Carrier (CLEC) 426,800   364,800 17%
Common share record owners 2,067   2,183 (5)%
Total employees 11,500   10,900 6%

n/m = percent change not meaningful
       
 *See Supplemental Shareholder Information for details relating to non-GAAP financial information.        

     Telephone and Data Systems, Inc. 30 N. LaSalle Street Suite 4000 Chicago, IL 60602 Tel: 312.630.1900 Fax: 312.630.1908 www.teldta.com