Dale Freeman General Manager Sales and Service Edwards, NY In his 14 years with TDS TELECOM, Dale’s job – and perspective – have changed considerably. His greatest accomplishment is “transitioning from a Service Technician, being just ‘service oriented,’ to realizing the importance of increasing revenues and becoming ‘sales and service oriented.’” Today, Dale manages four TDS TELECOM companies and travels approximately 300 miles each week to visit them. When he’s not there, he trusts his associates to make decisions. “Empowerment is everything. We won an Inspiring Excellence Award for our self- directed work groups. I share everything I can (which is 99 percent of what I know) at our weekly staff meetings. If employees know  why they’re doing something, they understand  why they make a difference.” Dale is a four-time Inspiring Excellence Award Winner. to stay ahead of the CLEC competition and win with our TDS METROCOM and USLink offerings in mid-size markets. We take advantage of more than 30 years of telephony experience and process improvements as we enter into new markets with our CLEC products. Our customers know that they can count on an established company with a proven track record to provide them solid advantages in the communications arena. TDS METROCOM launched 5 new markets, serving over 25 cities, in Illinois and Michigan during 2001. CLEC residential lines grew 139% year-over-year. CLEC business lines increased 50% during the same period. TDS METROCOM posted a 121% increase in total lines in 2001. TDS TELECOM’s growth plans call for rapid but controlled growth in the CLEC business. In 2001, TDS METROCOM produced some positive cash flow results in its more mature markets. We anticipate that our other newer markets will turn cash flow positive roughly 24 months after initial launch. In August 2000, TDS TELECOM introduced a long-distance product, TDS TRUE TALK ™ . It was an immediate success. As of December 31, 2001, 125,300 customers purchased the service from us, an impressive display of the strength of the TDS TELECOM brand. TRUE TALK ™ demonstrates our willingness to listen to our customers’ requests – in this case their desire for a simple and fairly priced long-distance service. After 16 months, TDS TELECOM has become the second most popular long-distance provider to our ILEC customer base, with 19% penetration of ILEC access lines achieved as of December 31, 2001. High-speed Internet service is in high demand. In 2001, both TDS TELECOM and TDS METROCOM continued to roll out DSL services. By year-end, TDS TELECOM offered DSL service in 23 of its markets and served 2,200 total DSL lines. TDS METROCOM served an additional 6,800 DSL lines. We also relaunched our standard dial-up Internet service with a number of important enhancements. Our new and improved TDS Internet Services provide more e-mail boxes and faster connection speeds. In response to customer demand for e-mail portability, WebMail was introduced to our Internet customers who can now send and receive e-mail from any Internet connection in the world. TDS TELECOM served a total of 131,200 Internet customers through its ILEC and CLEC operations at December 31, 2001. In the third quarter, we completed the acquisition of Chorus Communications Group, Ltd., (“Chorus”) our largest acquisition to date. Both organizations worked hard to integrate 43,000 access lines, 27,000 Internet customers and more than 300 employees into our organization. A transition team with representatives from both companies took advantage of a ten-month transition period to find best practices, superior talents, good ideas, and synergies that will propel the combined organization forward. Fresh ideas and new perspectives are always a welcome addition at TDS TELECOM. As we learn and grow from this experience, we will be better prepared to take advantage of other growth opportunities that may become available in the market. The acquisition of Chorus demonstrates our focus on clustering at TDS TELECOM. The assets we acquired adjoin existing operations in southern Wisconsin and will greatly strengthen our presence in the area. In November, we announced plans to acquire 14 Growth Through Acquisition TDS TELECOM Local Customer Service TDS METROCOM’s continued growth  required a move in 2001 to a larger facility. Our Internet services now provide more  e-mail boxes and faster connection speeds. Our customers can now check e-mail from any Internet connection  in the world. 15