MCLD - McLeod USA, Inc. (MCLD)

[jmhollen]

McLeodUSA Praises New Illinois Telecommunications Law

BUSINESS WIRE CEDAR RAPIDS, Iowa, July 3 — McLeodUSA Incorporated (Nasdaq:MCLD), the nation's largest independent competitive local exchange carrier (CLEC), today praised the new telecommunications legislation passed by the Illinois General Assembly last month and signed by Governor George Ryan late last week as beneficial for consumers and competitors alike.

FBR Expands Coverage of the Communications Services Sector

"This new law strengthens enforcement authority for the Illinois Commerce Commission to address carriers violating its rules or orders, imposes quality of service mandates, and explicitly defines the terms and conditions incumbent providers must follow when working with competitors like McLeodUSA," said Randall Rings, McLeodUSA Group Vice President and General Counsel. "These provisions will make it more efficient and consumer-friendly for McLeodUSA to overcome barriers previously imposed by Ameritech and to offer facilities-based services to our thousands of business and residential customers in Illinois."

McLeodUSA has argued that actions by Ameritech have negatively impacted competition in the telecommunications arena in Illinois, particularly in cases where competitors have tried to lease existing network elements in order to serve business and residential customers. As a result of the new law, Illinois consumers will have greater access to competitive choices for their telecommunications services.

About McLeodUSA

McLeodUSA provides integrated communications services, including local services, in 25 Midwest, Southwest, Northwest and Rocky Mountain states. The Company also provides data and voice services in all 50 states. McLeodUSA is a facilities-based telecommunications provider with, as of March 31, 2001, 396 ATM switches, 50 voice switches, nearly 30,000 route miles of fiber optic network and 11,300 employees. The Company's fiber optic network is capable of transmitting integrated next-generation data, Internet, video and voice services, reaching 800 cities and approximately 90% of the U.S. population. In the next 12 months, McLeodUSA plans to distribute 34 million telephone directories in 26 states, serving a population of 56 million. McLeodUSA is a Nasdaq-100 company traded under the symbol MCLD. Visit the Company's web site at www.mcleodusa.com.

.