Telephone and Data Systems, 7.00% Senior Notes due 3/15/2060
Ticker Symbol: TDJ CUSIP: 879433837 Exchange: NYSE
Security Type: Exchange-Traded Debt Security
SECURITY DESCRIPTION: Telephone and Data Systems, 7% Senior Notes due 2060, issued in $25 denominations, redeemable at the issuer's option on or after 3/15/2016 at $25 per share plus accrued and unpaid interest, and maturing 3/15/2060. Interest distributions of 7.00% ($1.75) per annum are paid quarterly on 3/15, 6/15, 9/15 & 12/15 to holders of record on the record date which is one business day prior to the payment date while the notes remain in book-entry form (NOTE: the ex-dividend date is at least 2 business days prior to the record date). Distributions paid by these debt securities are interest and as such are NOT eligible for the 15% tax rate on dividends and are also NOT eligible for the dividend received deduction for corporate holders. Units are expected to trade flat, which means accrued interest will be reflected in the trading price and the purchasers will not pay and the sellers will not receive any accrued and unpaid interest. The Notes are unsecured and unsubordinated obligations of the company and will rank equally with all existing and future unsecured and unsubordinated indebtedness of the company. See the IPO prospectus for further information on the debt securities by clicking on the ‘Link to IPO Prospectus’ provided below.

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TDS Announces Sale of $300 Million of 7 Percent Notes

CHICAGO, March 22, 2011 /PRNewswire via COMTEX/ -- Telephone and Data Systems,
Inc. (TDS)(TDS.S) announced today that, on March 21, 2011, it sold $300 million
of 7 percent Senior Notes due 2060. The notes are callable at par on and after
March 15, 2016. Closing is expected to occur on March 28, 2011.

The notes are expected to be listed on the New York Stock Exchange under the
symbol "TDJ."

Following completion of the offering, TDS expects to use the net proceeds to
redeem all of TDS' 7.6 percent Series A Notes due 2041, of which $282.5 million
in aggregate principal amount remains outstanding, and to use the remaining net
proceeds for general corporate purposes.

TDS intends to file a prospectus supplement with the Securities and Exchange
Commission in connection with the offering. The prospectus supplement relates to
the shelf registration statement filed by TDS on Nov. 5, 2008, that became
effective on Nov. 5, 2008, which registered an indeterminate amount of debt
securities for offer and sale by TDS from time to time.