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U.S. Cellular Reports Fourth Quarter and Full-Year 2008 Results
                NON-CASH IMPAIRMENT CHARGE RELATED TO SFAS 142

         Note: Comparisons are year over year unless otherwise noted.

    4Q 2008 Highlights

     - 2.0 percent increase in service revenues, to $977.0 million.

     - 31.8 percent increase in data revenues, to $142.1 million, representing
       14.5 percent of service revenues.

     - Postpay churn of 1.6 percent; postpay customers comprised 95 percent of
       retail customers.

     - 7.7 percent increase in cell sites in service, to 6,877.

     - Repurchased 150,000 common shares for $5.2 million, to offset dilution
       from employee benefit plans.


    Full-Year 2008 Highlights

     - 7.1 percent increase in service revenues, to $3,940.3 million.

     - 39.1 percent increase in data revenues, to $511.7 million.

     - 4.0 percent increase in ARPU to $53.23.

     - 6.9 percent increase in cash flows from operating activities, to $922.8
       million.

     - Postpay churn low at 1.5 percent.

     - Repurchased 600,000 shares in 2008 at a total cost of $32.9 million, to
       offset dilution from employee benefit plans.

CHICAGO, Feb. 26 /PRNewswire-FirstCall/ -- United States Cellular Corporation (NYSE: USM) reported service revenues of $977.0 million for the fourth quarter of 2008, a 2.0 percent increase from $957.9 million in the comparable period one year ago. In the fourth quarter, U.S. Cellular recorded a $386.7 million impairment discussed later in this release. Although this resulted in a loss for the quarter, the impairment was a non-cash charge and did not affect cash or cash flow.

"We finished the year with some solid operating results, despite difficult economic conditions," said John E. Rooney, U.S. Cellular president and chief executive officer. "We added 41,000 net retail postpay customers in the quarter, postpay being the market segment we focus on given our high customer satisfaction model. In fact, 95 percent of our retail customers are postpay. Spending on advertising and promotions remained high given the aggressive competition and waning consumer confidence.

"Data revenues continued to grow nicely in the quarter, increasing 32 percent and representing 14.5 percent of service revenues," Rooney continued. "Smart phone sales are up sharply and carry higher ARPU due to data packages. ARPU has increased year over year for 13 consecutive quarters."

"In 2008, U.S. Cellular continued to improve its handset selection and rolled out five new smart phone models and one premium touchscreen phone," said Jay M. Ellison, U.S. Cellular executive vice president and chief operating officer. "Additionally, to support the growing demand for data, we have in place a Mobile Broadband (EVDO Rev. A) network that was available to approximately 23 percent of our cell sites at year end, and will cover more than 60 percent of our cell sites by the end of 2009. Our broad suite of handsets, coupled with the 3G speeds of Mobile Broadband, provide customers an ideal data experience. We also expanded our network during the year, adding nearly 500 cell sites and ending the year with approximately 6,900 cell sites in service."

OUTLOOK

"For 2009," continued Jack Rooney, "we intend to not only retain and grow our customer base, but also invest in the company on a number of fronts, so that we emerge from the economic downturn stronger than ever. In addition to the continued overlay of EVDO, we are pursuing a number of multi-year initiatives to make this happen."

The initiatives include:

-- A new point-of-sale system to consolidate billing on one platform. This will enable reduced time to market and improved testing capabilities, and give U.S. Cellular the ability to develop more flexible pricing and services.

-- Development of an Electronic Data Warehouse/Customer Relationship Management (EDW/CRM) System. This system will allow U.S. Cellular to collect and analyze information more efficiently to build and improve customer relationships.

-- An Internet/Web initiative that will enable customers to make a wide range of transactions and, eventually, to manage their accounts online.

SFAS 142 Impairment Charge

U.S. Cellular recorded an impairment of licenses of $386.7 million (pre- tax) in the fourth quarter of 2008 in accordance with Statement of Financial Accounting Standards, "Goodwill and Other Intangible Assets" ("SFAS No. 142").

The impairment charge had no impact on cash or cash flow.

In accordance with SFAS No. 142, U.S. Cellular performed its annual impairment test of licenses and goodwill in the second quarter of 2008 and concluded at the time that there was no impairment. As a result of the further deterioration in the credit and financial markets and the accelerated decline in the overall economy in the fourth quarter of 2008, U.S. Cellular updated its impairment assessment of licenses and goodwill as of Dec. 31, 2008. The impairment assessment resulted in a $386.7 million impairment to licenses and no impairment to goodwill.

Material Weakness Eliminated

In the fourth quarter of 2008, U.S. Cellular and Telephone and Data Systems, Inc. (NYSE: TDS, TDS.S) completed the implementation of previously reported enhanced internal controls related to income tax accounting. TDS provides shared services to U.S. Cellular, including assistance with accounting for income taxes. These controls are operating effectively and, as a result, the company no longer has a material weakness related to income taxes.

Guidance

Guidance for the year ending Dec. 31, 2009 is as follows. There can be no assurance that final results will not differ materially from this guidance.

    U.S. Cellular 2009 guidance as of Feb. 26, 2009 is as follows:
      Net Retail Customer Additions                         75,000-150,000
      Service Revenues                               $3,900-$4,000 million
      Operating Income                                   $275-$350 million
      Depreciation, Amortization and Accretion(1)     Approx. $600 million
      Capital Expenditures                            Approx. $575 million

     (1) Includes losses on disposals of assets

The foregoing guidance represents the views of management as of Feb. 26, 2009 and should not be assumed to be accurate as of any other date. U.S. Cellular undertakes no legal duty to update such information, whether as a result of new information, future events, or otherwise.

Conference Call Information

U.S. Cellular will hold a conference call on Feb. 26, 2009 at 10:00 a.m. Chicago time.

-- Access the live call online at http://www.videonewswire.com/event.asp?id=56184 or on the Conference Calls page of http://www.uscellular.com.

-- Access the call by phone at 800/706-9695 (US/Canada) and use conference ID 86129191.

Before the call, certain financial and statistical information to be discussed during the call will be posted to the Conference Calls page of http://www.uscellular.com, together with reconciliations to generally accepted accounting principles (GAAP) of any non-GAAP information to be disclosed. The call will be archived on the Conference Calls page of http://www.uscellular.com.

About U.S. Cellular(R)

United States Cellular Corporation, the nation's fifth-largest, full- service wireless carrier, provides a comprehensive range of wireless products and services, excellent customer support, and a high-quality network to nearly 6.2 million customers in 26 states. The Chicago-based company employed 8,500 full-time equivalent associates as of Dec. 31, 2008. For more information about U.S. Cellular, visit http://www.uscellular.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the company's plans, beliefs, estimates and expectations. These statements are based on current estimates, projections and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: The ability of the company to successfully grow its markets; the current credit crisis affecting financial markets, and its effect on the overall economy; changes in the overall economy, competition, the state and federal telecommunications regulatory environment, and the value of assets and investments; adverse changes in the ratings afforded the company's debt securities by accredited ratings organizations; industry consolidation; advances in telecommunications technology; uncertainty of access to the capital markets; risks and uncertainties relating to possible future restatements; pending and future litigation; changes in income tax rates, laws, regulations or rulings; acquisitions/divestitures of properties and/or licenses; and changes in customer growth rates, average monthly revenue per unit, churn rates, roaming revenue and terms, the availability of handset devices and the mix of products and services offered by the company. Investors are encouraged to consider these and other risks and uncertainties that are discussed in the Form 8-K used by U.S. Cellular to furnish this press release to the SEC, which are incorporated by reference herein.

For more information about U.S. Cellular, visit: http://www.uscellular.com.



                          UNITED STATES CELLULAR CORPORATION
                               SUMMARY OPERATING DATA

    Quarter Ended   12/31/2008   9/30/2008   6/30/2008   3/31/2008  12/31/2007

    Total Population:
      Consolidated
       markets (1) 83,014,000  82,875,000  82,875,000  82,846,000 82,371,000
      Consolidated
       operating
       markets (1)  46,009,000  45,493,000  45,493,000  45,262,000 44,955,000
    All customers:
      Customer
       units (2)     6,196,000   6,176,000   6,194,000   6,175,000  6,102,000
      Gross customer
       unit additions  395,000     367,000     365,000     408,000    436,000
      Net customer
       unit additions
        (losses)        20,000     (18,000)     16,000      73,000     44,000
    Market penetration
     at end of period:
      Consolidated
       markets (3)         7.5%        7.5%        7.5%       7.5%        7.4%
      Consolidated
       operating
       markets (3)        13.5%       13.6%       13.6%      13.6%       13.6%
    Retail customers:
      Customer
       units (2)     5,707,000   5,674,000   5,677,000  5,640,000   5,564,000
      Gross customer
       unit additions  352,000     325,000     318,000    360,000     367,000
      Net postpay
       customer
       unit additions   41,000      12,000      33,000     72,000      70,000
      Net prepay
       customer
       unit additions
       (losses)         (8,000)    (15,000)      1,000     13,000      (6,000)
    Cell sites in
     service             6,877       6,716       6,596      6,452       6,383
    Average monthly
     revenue per
     unit (4)           $52.71      $54.59      $53.27     $52.24      $52.60
      Retail service
       revenue per
       unit (4)(7)      $46.43      $46.97      $46.53     $46.18      $46.39
      Inbound roaming
       revenue per
        unit (4)(7)      $4.25       $5.03       $4.54      $3.95       $4.22
      Other revenue
       per unit (4)(7)   $2.03       $2.59       $2.20      $2.11       $1.99
    Minutes of use
     (MOU) - Voice (5)     678         695         704        701         689
    Postpay churn
     rate (6)              1.6%        1.6%        1.4%       1.4%        1.5%
    Construction
     Expenditures
      (000s)          $190,000    $146,100    $137,800   $111,700    $188,100

    (1) "Total population of consolidated markets" and "Total population of
        consolidated operating markets" are used only for the purposes of
        calculating market penetration of consolidated markets and
        consolidated operating markets, respectively, which is calculated by
        dividing customers by the total market population (without duplication
        of population in overlapping markets).
    (2) All customer units as of December 31, 2007 and March 31, 2008, and
        retail customer units as of March 31, 2008 have been adjusted from
        amounts previously reported, as a result of a review of U.S.
        Cellular's customer reporting procedures.
    (3) Calculated by dividing the number of wireless customers at the end of
        the period by the total population of consolidated markets and
        consolidated operating markets, respectively, as estimated by
        Claritas.
    (4) Per unit revenue measurements are derived from Service Revenues as
        reported in Financial Highlights for each respective quarter as
        follows:

    Service Revenues
     (000s)           $976,952  $1,013,928    $987,352   $962,094    $957,896
    Components:
    Retail service
     revenue (000s)    860,503     872,397     862,392    850,470     844,848
    Inbound roaming
     revenue (000s)     78,768      93,472      84,201     72,755      76,850
    Other
     revenue (000s)     37,681      48,059      40,759     38,869      36,198

    Divided by
     average
     customers (000s)    6,178       6,191       6,178      6,139       6,070
    Divided by
     three months
     in each quarter         3           3           3          3           3

    Average monthly
     revenue
     per unit           $52.71      $54.59      $53.27     $52.24      $52.60
    Retail service
     revenue
     per unit           $46.43      $46.97      $46.53     $46.18      $46.39
    Inbound roaming
     revenue
     per unit            $4.25       $5.03       $4.54      $3.95       $4.22
    Other revenue
     per unit            $2.03       $2.59       $2.20      $2.11       $1.99

    (5) Average monthly voice minutes of use per customer (without roaming).
    (6) Postpay churn rate is calculated by dividing the total postpay
        customer disconnects during the quarter by the average postpay
        customer base for the quarter.
    (7) Long-distance revenue was reclassified in the fourth quarter of 2008
        from Long-distance/Other revenue to Retail service revenue and Inbound
        roaming revenue. Previous quarters have been adjusted to reflect this
        change.



                      UNITED STATES CELLULAR CORPORATION
                CONSOLIDATED STATEMENT OF OPERATIONS HIGHLIGHTS
                        Three Months Ended December 31,
    (Unaudited, dollars and shares in thousands, except per share amounts)

                                                         Increase(Decrease)
                               2008          2007         Amount   Percent
    Operating Revenues
       Service              $ 976,952     $ 957,896     $ 19,056    2.0%
       Equipment sales         75,910        66,214        9,696   14.6%
          Total operating
           revenues         1,052,862     1,024,110       28,752    2.8%

    Operating Expenses
       System operations
        (excluding
        Depreciation,
        amortization and
        accretion reported
        below)                198,916       187,903       11,013    5.9%
       Cost of equipment
        sold                  203,224       168,987       34,237   20.3%
       Selling, general
        and administrative    442,873       414,719       28,154    6.8%
       Depreciation,
        amortization and
        accretion             143,709       142,279        1,430    1.0%
       Loss on impairment
        of intangible
        assets                386,653        20,840      365,813    N/M
       Loss on asset
        disposals, net          6,602        26,117      (19,515) (74.7%)
          Total operating
           expenses         1,381,977       960,845      421,132   43.8%

    Operating Income
     (Loss)                  (329,115)       63,265     (392,380)   N/M

    Investment and Other
     Income (Expense)
       Equity in earnings of
        unconsolidated
        entities               25,620        20,173        5,447   27.0%
       Interest and dividend
        income                  1,259         4,461       (3,202) (71.8%)
       Gain on disposition
        of investments            ---         6,301       (6,301)   N/M
       Interest expense       (16,579)      (20,045)       3,466   17.3%
       Other, net                 160          (395)         555    N/M
          Total Investment
           and Other Income
           (Expense)           10,460        10,495          (35)  (0.3%)

    Income (Loss) Before
     Income Taxes and
     Minority Interest       (318,655)       73,760     (392,415)   N/M
    Income tax expense
     (benefit)               (129,007)       40,169     (169,176)   N/M

    Income (Loss) Before
     Minority Interest       (189,648)       33,591     (223,239)   N/M
    Minority share of
     income, net of tax       (10,470)       (4,384)      (6,086)   N/M

    Net Income (Loss)       $ (200,118)    $ 29,207    $ (229,325)  N/M

    Basic Weighted Average
     Common Shares
     Outstanding                87,340       87,691          (351) (0.4%)
    Basic Earnings (Loss)
     Per Share                 $ (2.29)       $0.33       $ (2.62)  N/M

    Diluted Weighted Average
     Common Shares Outstanding  87,340       88,309          (969) (1.1%)
    Diluted Earnings (Loss)
     Per Share                 $ (2.29)      $ 0.33       $ (2.62)  N/M

    N/M - Percentage change not meaningful



                        UNITED STATES CELLULAR CORPORATION
                 CONSOLIDATED STATEMENT OF OPERATIONS HIGHLIGHTS
                         Twelve Months Ended December 31,
      (Unaudited, dollars and shares in thousands, except per share amounts)

                                                          Increase (Decrease)
                                       2008         2007    Amount    Percent
    Operating Revenues
            Service                 $3,940,326  $3,679,237  $261,089    7.1 %
            Equipment sales            302,859     267,027    35,832   13.4 %
                    Total operating
                     revenues        4,243,185   3,946,264   296,921    7.5 %

    Operating Expenses
            System operations
             (excluding Depreciation,
              amortization and
              accretion reported
              below)                   784,057     717,075    66,982    9.3 %

            Cost of equipment sold     743,406     637,297   106,109   16.6 %
            Selling, general and
             administrative          1,701,050   1,558,568   142,482    9.1 %
            Depreciation,
            amortization and
             accretion                 576,931     578,186    (1,255)  (0.2%)
            Loss on impairment of
             intangible assets         386,653      24,923   361,730     N/M
            Loss on asset disposals,
             net                        23,378      34,016   (10,638) (31.3%)
                    Total operating
                     expenses        4,215,475   3,550,065   665,410   18.7 %


    Operating Income                    27,710     396,199  (368,489) (93.0)%

    Investment and Other Income
     (Expense)
            Equity in earnings of
             unconsolidated entities    91,981      90,033     1,948    2.2 %
            Interest and dividend
             income                      5,730      13,059    (7,329)  (56.1%)
            Fair value adjustment of
             derivative instruments        ---      (5,388)    5,388     N/M
            Gain on disposition of
             investments                16,628     137,987  (121,359)  (87.9%)
            Interest expense           (77,190)    (84,679)    7,489    8.8 %
            Other, net                   1,269        (710)    1,979     N/M
                 Total Investment and
                 Other Income
                  (Expense)             38,418     150,302  (111,884)  (74.4%)

    Income Before Income Taxes and
     Minority Interest                  66,128     546,501  (480,373)  (87.9%)
    Income tax expense                   8,055     216,711  (208,656)  (96.3%)

    Income Before Minority Interest     58,073     329,790  (271,717)  (82.4%)

    Minority share of income, net      (25,083)    (15,056)  (10,027)  (66.6%)


    Net Income                       $  32,990   $ 314,734 $(281,744)  (89.5%)

    Basic Weighted Average Common
     Shares Outstanding                 87,457      87,730      (273)  (0.3%)

    Basic Earnings Per Share         $    0.38   $    3.59  $  (3.21) (89.4%)

    Diluted Weighted Average Common
     Shares Outstanding                 87,754      88,481      (727)  (0.8%)

    Diluted Earnings Per Share       $    0.38   $    3.56  $  (3.18) (89.3%)

    N/M - Percentage change not meaningful



                      UNITED STATES CELLULAR CORPORATION
                    CONSOLIDATED BALANCE SHEET HIGHLIGHTS
                      (Unaudited, dollars in thousands)

                             ASSETS

                                                   December 31,   December 31,
                                                      2008           2007
    Current Assets
      Cash and cash equivalents                    $ 170,996      $ 204,533
      Accounts receivable from customers and other   419,619        435,497
      Marketable equity securities                       ---         16,352
      Inventory                                      116,564        100,990
      Prepaid income taxes                            22,515            ---
      Prepaid expenses                                51,645         41,588
      Net deferred income tax asset                   19,481         18,566
      Other current assets                            14,227         16,227
                                                     815,047        833,753

    Investments
      Licenses                                     1,433,415      1,482,446
      Goodwill                                       494,279        491,316
      Customer lists, net                              8,936         15,375
      Investments in unconsolidated entities         156,637        157,693
      Notes and interest receivable--long-term         4,297          4,422
                                                   2,097,564      2,151,252

    Property, Plant and Equipment
      In service and under construction            5,884,383      5,409,115
      Less accumulated depreciation                3,264,007      2,814,019
                                                   2,620,376      2,595,096

    Other Assets and Deferred Charges                 33,055         31,773

    Total Assets                                 $ 5,566,042    $ 5,611,874



                      UNITED STATES CELLULAR CORPORATION
                    CONSOLIDATED BALANCE SHEET HIGHLIGHTS
                      (Unaudited, dollars in thousands)

                     LIABILITIES AND SHAREHOLDERS' EQUITY

                                                   December 31,   December 31,
                                                      2008           2007
    Current Liabilities
      Current portion of long-term debt              $10,258           $---
      Accounts payable
        Affiliated                                     9,613          8,519
        Trade                                        248,785        252,272
      Customer deposits and deferred revenues        151,082        143,445
      Accrued taxes                                   17,643         43,105
      Accrued compensation                            55,969         59,224
      Other current liabilities                      108,533         97,678
                                                     601,883        604,243

    Deferred Liabilities and Credits
      Net deferred income tax liability              478,106        554,412
      Other deferred liabilities and credits         233,619        211,374
                                                     711,725        765,786

    Long-Term Debt                                   996,636      1,002,293

    Commitments and Contingencies

    Minority Interest                                 49,156         43,396

    Common Shareholders' Equity
      Common Shares, par value $1 per share           55,046         55,046
      Series A Common Shares, par value $1
       per share                                      33,006         33,006
      Additional paid-in capital                   1,339,403      1,316,042
      Treasury Shares                                (49,493)       (41,094)
      Accumulated other comprehensive income             ---         10,134
      Retained earnings                            1,828,680      1,823,022
                                                   3,206,642      3,196,156

    Total Liabilities and Shareholders' Equity    $5,566,042     $5,611,874



                      UNITED STATES CELLULAR CORPORATION
                     CONSOLIDATED STATEMENT OF CASH FLOWS
                       Twelve Months Ended December 31,
                      (Unaudited, dollars in thousands)

                                                       2008           2007
    Cash Flows from Operating Activities
      Net income                                     $32,990       $314,734
      Add (deduct) adjustments to reconcile
       net income to net cash flows from
       operating activities:
        Depreciation, amortization and accretion     576,931        578,186
        Bad debts expense                             73,157         66,923
        Stock-based compensation expense              15,122         14,681
        Deferred income taxes, net                   (83,121)       (26,503)
        Equity in earnings of unconsolidated
         entities                                    (91,981)       (90,033)
        Distributions from unconsolidated entities    91,845         86,873
        Minority share of income                      25,083         15,056
        Unrealized fair value adjustment of
         derivative instruments                          ---          5,388
        Loss on disposition of investments           (16,628)      (137,987)
        Loss on impairment of intangibles            386,653         24,923
        Loss on asset disposals, net                  23,378         34,016
        Noncash interest expense                       1,772          1,776
        Excess tax benefit from stock awards          (1,151)       (11,718)
        Other operating activities                       210        (5,538)
      Changes in assets and liabilities from
       operations:
        Change in accounts receivable                (68,039)       (98,634)
        Change in inventory                          (15,563)        16,312
        Change in accounts payable - trade            (4,572)        10,969
        Change in accounts payable - affiliate         1,093         (5,049)
        Change in customer deposits and deferred
         revenues                                      7,628         19,935
        Change in accrued taxes                      (34,699)        36,051
        Change in accrued interest                       ---         (1,192)
        Change in other assets and liabilities         2,669         13,909
                                                     922,777        863,078
    Cash Flows from Investing Activities
      Additions to property, plant and equipment    (585,590)      (565,495)
      Proceeds from disposition of investments        16,690          4,301
      Cash received from divestitures                  6,838          4,277
      Cash paid for acquisitions and licenses       (341,694)       (21,478)
      Proceeds from return on investments              1,335            ---
      Other investing activities                      (1,606)        (1,086)
                                                    (904,027)      (579,481)
    Cash Flows from Financing Activities
      Issuance of notes payable                      100,000         25,000
      Repayment of notes payable                    (100,000)       (60,000)
      Common shares reissued, net of tax payments     (2,288)        10,073
      Common shares repurchased                      (28,366)       (87,902)
      Excess tax benefit from exercise of
       stock awards                                    1,151         11,718
      Capital distributions to minority partners     (19,676)       (10,866)
      Other financing activities                      (3,108)             1
                                                     (52,287)      (111,976)

    Net Increase (Decrease) in Cash and
     Cash Equivalents                                (33,537)       171,621
    Cash and Cash Equivalents
      Beginning of period                            204,533         32,912
      End of period                                 $170,996       $204,533

SOURCE United States Cellular Corporation

CONTACT: Mark A. Steinkrauss, Vice President, Corporate Relations, +1-312-592-5384, mark.steinkrauss@teldta.com,
or Julie D. Mathews, Manager, Investor Relations, +1-312-592-5341, julie.mathews@teldta.com,
both for United States Cellular Corporation
Web site: http://www.uscellular.com
(TDS USM TDS.S)