Financial Highlights 1 U.S. Cellular Licensed Areas 2 Chairman and President’s Message 4 Customers Expect It. We Deliver! 6 Glossary of Terms 17 Supplemental Shareholder Information 18 Financial Report 18 Selected Consolidated Financial Data 19 Management’s Discussion and Analysis 20 Consolidated Financial Statements 40 Notes to Consolidated  Financial Statements 45 Report of Independent Auditors 63 Five-Year Statistical Summary 65 Consolidated Quarterly Income  Information (Unaudited) 66 Shareholder Information 70 Table of Contents Total Customers (in thousands) Service Revenues (in millions) ’99 ’00 ’01 ’02 ’03 5-Year Compound Annual Growth Rate: 15% 2,602 3,061 3,461 4, 103 4,409 5,000 4,000 3,000 2,000 1,000 0 5-Year Compound Annual Growth Rate: 14% ’99 $1,526 $1,826 $2,099 $2,424 ’00 ’01 ’02 ’03 $1,654 $2,600 $1,950 $1,300 $650 0 n/m = percent change not meaningful See page 18 for a discussion of reasons for the use of non-GAAP financial information. 2003 2002 Percent (Dollars in thousands, except per share amounts) (as restated) (as restated) Change  Service Revenues  $2,423,789 $2,098,893 15% Operating Income 118,983 281,166 (58)% Depreciation, Amortization and Accretion 432,333 351,154 23% Operating Income before Depreciation Amortization and  Accretion* 551,316 632,320 (13)%  Loss on Impairment of Intangible Assets 49,595 — n/m Loss on Assets Held for Sale 45,908 — n/m As Adjusted* 646,819 632,320 2% Net Income (Loss) $ 42,660 $ (26,945) n/m Basic Weighted Average Shares  Outstanding (000s) 86,136 86,086 0% Basic Earnings per Share from  Net Income (Loss) $ 0.50 $ (0.31) n/m Total Assets  $4,945,747 $4,769,597 4% Common Shareholders’ Equity  $2,465,403 $2,402,377 3% Return on Average Equity 2.3% (0.8)% n/m Customer Units 4,409,000 4,103,000 7% Average Service Revenue per Customer (ARPU) $ 47.38 $ 47.25 0% Consolidated Markets 235 210 12% Capital Expenditures  $ 632,526 $ 730,645 (13)% 1 Financial Highlights