Dana Dorcas Director of Sales Gainesville, FL As Director of Sales in the Southeast Georgia/Florida cluster, Dana oversees all aspects of  U.S. Cellular operations. On several occasions, over the eleven years that Dana has been with U.S. Cellular, he has taken over the leadership of various U.S. Cellular operations that needed immediate attention. By improving morale  and performance, he transformed these operations into winners. Dana has the ability to motivate and lead his teams to achieve  their goals, and as he would say, “You are only as good as your team!” This is evidenced by his being awarded the Company’s 2001 Cultural Survey Coaches Award. His ability to quickly assess needed changes is complemented by his salesmanship and planning skills. 8 The growing number of customers who prefer to connect with U.S. Cellular online now have improved access via our redesigned Web site, launched in April 2001. It provides fast and easy access to information on U.S. Cellular, its products and services, and offers the convenience of online wireless shopping.  Some customers may choose to connect with us through U.S. Cellular agents located throughout our service areas. During 2001, we placed more emphasis on exclusive agents who represent only U.S. Cellular. New merchandising programs, new signage, store fixtures identical to those in our company-owned stores and the ability to activate customer accounts online are just part of the support and incentives provided to our exclusive agents. In September 2001, U.S. Cellular signed an exclusive service agreement with Catalyst Marketing, Inc., (“Catalyst”) to expand its exclusive agent network throughout the central, eastern and southwestern regions of the United States. The Catalyst stores will reflect U.S. Cellular’s new “high-tech, high-touch” retail store branding strategy. Positive customer perceptions are vital to a successful, retail-driven organization. During 2001, U.S. Cellular introduced its new “high-tech, high-touch” retail stores. More than 20 newly designed stores were opened in new locations, more than 50 existing stores were remodeled and elements of the new design concept were incorporated into the company’s other retail locations. The new stores, designed with feedback from customer advisory panels, increase the ease and convenience of shopping for wireless products and services by guiding customers through every step of the buying process—from selecting the right rate plan to choosing the best phone and wireless accessories. Serving customers is indeed the first priority of U.S. Cellular associates. Connecting with our customers means being easily accessible to them—whenever, wherever and however they choose to do business with us. Our goal is to ensure that all customers and potential customers have a positive experience with U.S. Cellular. These results are indicative of a strong company. We feel that the changes we have made to refocus on our customers, along with our other accomplishments, will provide the basis for continued strong profitable growth at U.S. Cellular.  We added 354,000 net new customers during 2001, ending the year with just under 3.5 million customer units. Driven by the increase in customers, service revenues increased 10% to $1,826 million. Operating cash flow totaled $618 million, an 11% increase from the previous year, helping produce net income from operations of $181 million.  Our financial results, and the key drivers of those results, were strong, but did not meet our targets for the year. An extremely competitive wireless marketplace has driven revenue per minute of use downward throughout the industry, lessening the positive effect on revenues of the increase in minutes of use. The effects of the terrorist attacks on September 11, 2001, and the overall downturn in the economy, especially for retailers, had a significant impact on our business in the second half of 2001. Traffic into our retail and agent locations slowed substantially, even during the holiday shopping season. As a result, despite our low churn rate, we added fewer new customers in 2001 than in 2000.  U.S. Cellular Connecting With Our Customers  Our new “high-tech, high-touch” retail stores are designed  to increase the ease and convenience  of shopping for our wireless products  and services. 9 Creating the  dynamic  difference Customer Care Center associates are a vital connection to our customers. First-call resolution is their number one goal. In 2001, we opened a new state-of-the-art  I.S. facility to better serve our associates.