295 84 81 89 95 93 91 81 76 70 95 85 95 20 26 77 40 81 77 64 75 40 24 40 55 24 64 70 74 70 75 77 80 90 79 88 35 35 70 44 35 44 35 94 90 94 43 43 380 80 35 15 5 86 84 84 82 5 90 182 82 84 5 5 10 40 10 35 10 90 65 75 75 10 95 80 80 29 94 90 35 WA ID CA TX OK KS MO IA WI IL IN TN GA SC NC VA MD PA OH WV ME NH VT FL OR NE MN Markets currently owned and managed PCS markets wholly owned and managed PCS markets owned through joint ventures States in which U.S. Cellular owns markets U.S. Cellular Corporation Corporate Headquarters, Chicago, IL U.S. Cellular Serving our customers and providing  them with a positive experience is the  first priority of our associates. U.S. Cellular’s Customer Care Center associates are also a vital connection to our customers. According to our surveys, our customers rate getting the information they need or resolving their problem with a single call to U.S. Cellular as extremely important. First-call resolution is the goal of U.S. Cellular’s customer service organization, and improvement in this measurement is now used in determining performance incentives for all front-line associates.  These call center associates, who are based in six regional locations, receive six weeks of intensive customer service training before they start serving customers. This year, all customer service leaders also participated in leadership training. We are providing enhanced customer service through several new technologies, some of which include: • Web-enabled activation, which allows agents and direct sales channels to activate customer accounts online. • Implementation of the Customer Acquisition and Retention System (“CARES”) billing and information system in all U.S. Cellular markets, which was completed in 2001. CARES enables our customer care associates to respond more quickly to customers.  • Over-the-air activation, which allows customer phones to be programmed to provide “intelligent roaming” on predetermined carriers selected by U.S. Cellular.  U.S. Cellular’s commitment to customer service was recognized in 2001 when we were named the 2001 Wireless Titan Award winner for outstanding customer service by Wireless Review , a highly regarded industry trade magazine.  Network and Product Improvements  U.S. Cellular continues to expand and upgrade its network to give our customers the highest call quality, the broadest range of coverage and access to new and enhanced features. More than 370 new cell sites were installed across U.S. Cellular markets in 2001 to improve coverage and call quality for customers. This brings the total number of cell sites to more than 2,900 at year-end 2001.  U.S. Cellular continually seeks to provide state-of-the-art technology for our customers. Late in 2001, we announced the deployment of a highly advanced digital technology—Code Division Multiple Access (“CDMA”) 1XRTT—which will enable U.S. Cellular to more effectively respond to the changing wireless needs of customers. This major technology upgrade will enable U.S. Cellular to enhance digital service by adding voice capacity, offering high-speed data products and improving coverage. The new technology is expected to be in 40% of current markets by year-end 2002 and 75% of markets by year-end 2003, with completion expected by 2004. The approximate cost of the conversion will be $400-$450 million, spread over the three- year period.  Knowing and understanding customer needs and desires, likes and dislikes, enables us to provide better service by offering the products and services customers tell us they want. We responded to customer feedback with several new products in 2001, including: • One- and two-way mobile text messaging services, introduced in all U.S. Cellular markets in June 2001. • A Mobile-2-Mobile digital calling feature, which gives consumers a new money- saving option for calls made between U.S. Cellular digital customers within their local Mobile-2-Mobile coverage area. • Enhanced TalkTracker ® prepaid wireless service with expanded coverage areas, extended time for using prepaid minutes and value-added features including call waiting and three-way calling.  U.S. Cellular will continue to develop new products to respond to both the general consumer market as well as to select high-value market segments, such as Small Office- Home Office and teenage customers. Among products now under development are a variety of new data products and voice portal services that will allow wireless phone users to obtain voice-delivered information from e-mail or voice mailboxes. In addition to improving our network and introducing new products and services,  U.S. Cellular continued to be involved in various community initiatives aimed at enhancing the quality of life throughout our markets. Our support included donations of airtime and wireless equipment, monetary contributions and volunteer time; benefiting such groups as U.S. veterans, the homeless, victims of domestic violence and elder abuse, neighborhood crime prevention and disaster relief teams. U.S. Cellular contributed to the City of Chicago’s fund to support victims of the September 11, 2001, terrorist attacks and their families. U.S. Cellular also launched campaigns to proactively address driver distraction as well as other issues such as safety and courteous use. Summary and Outlook for 2002 I look forward to a very successful year in 2002. We at U.S. Cellular believe that the economy will turn around in the second half of the year, and our growth targets reflect the effects the economy is expected to have on our business. We will continue our renewed focus on our customers and their needs. We will provide a high-quality network and state-of-the-art products and services for our customers. We will continue to be active in the communities we serve. Our ability to achieve these goals will drive our success in 2002.  Veronica Ornes Retail Store Manager Laredo, TX Veronica manages the day-to-day operations of the Laredo, Texas,  U.S. Cellular retail store. In addition to her duties as a full-time employee, Veronica has recently completed her bachelor’s degree and is now working on a master’s as well. Veronica has been with U.S. Cellular for ten years, and her team-first attitude has enabled her to work her way up from Collections Associate to Retail Store Manager. She is fluent in both English and Spanish and is dedicated to providing the best service to her customers in the culturally diverse Laredo market. Her outlook helps explain her achievements: “This job challenges me to reach my maximum potential. Every day is different. I have seen many good changes throughout my tenure at U.S. Cellular. Working for this organization has been very rewarding for me.” 11 10