MCLD - McLeod USA, Inc. (MCLD)

[jmhollen]

McLeodUSA Incorporated Announces Quarterly Dividend On Series A Preferred Stock

CEDAR RAPIDS, Iowa, Jul 16, 2001 (BUSINESS WIRE) -- McLeodUSA Incorporated
(Nasdaq: MCLD), the nation's largest independent competitive local exchange
carrier, today announced it has declared a regular quarterly dividend on its
6.75 percent Series A Cumulative Convertible Preferred Stock.

The dividend is payable in shares of the Company's Class A Common Stock at a
rate of $4.21875 per share of Series A Preferred Stock owned, with fractional
shares to be paid in cash. The shares of Class A Common Stock to be issued will
be valued based on the average daily closing price of the Class A Common Stock
for the five consecutive trading days ending on, and including August 9, 2001.
The dividend is payable on August 15, 2001 to stockholders of record as of July
31, 2001.


 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.


CONTACT: McLeodUSA, Cedar Rapids
 Bryce E. Nemitz, 319/790-7800
 Fax: [phone]
 [e-mail]