AT&T Buys U.S. Cellular Net

REDMOND, Wash. -- AT&T Wireless (NYSE:AWE) today announced it has signed an agreement to purchase U.S. Cellular's (AMEX:USM) TDMA wireless operations in south Texas, a market serving 74,000 customers and covering a population of more than 1.3 million people.

The $95 million cash acquisition complements AT&T Wireless' nationwide TDMA and GSM/GPRS networks, expanding the company's presence in south central Texas by tying together existing networks in Houston, San Antonio, and Austin, and pushing coverage south to Corpus Christi and Laredo. The markets also cover key sections of Interstate 37 and State Highways 77 and 281. Closing is expected in the first quarter of 2004, subject to federal regulatory approvals.

"The move allows us to continue to build market presence, offer contiguous coverage in three major metropolitan areas of Texas, and facilitate the quick deployment of our advanced GSM/GPRS technology in the newly-acquired markets," said Robert Stokes, Senior Vice President - Business Development, AT&T Wireless. "It also helps us continue to bring down roaming costs, a key corporate objective this year and an area of the business where we're making significant progress."

AT&T Wireless Services Inc.

U.S. Cellular Corp.