McLeodUSA to Provide Critical Data Services for GM Dealers in the U.S.

    CEDAR RAPIDS, Iowa--June 16, 2003--McLeodUSA Incorporated , one of the nation's largest independent, competitive telecommunications services providers, today announced that General Motors Dealer Equipment has approved the Company to provide critical data services for General Motors dealers. McLeodUSA was extended this approval to join the General Motors GMDE.net certified vendors based on a review of the Company and its services, during which the Company was recognized for developing unique and tailored solutions that meet or exceed all current GM recommendations for High Speed Internet Access.
    "Our sales and marketing team has developed a thorough understanding of the needs of automotive dealers. As such, they successfully created a series of customer-focused Preferred Advantage(SM) product solutions that meet the requirements of the GM dealerships," said Chris A. Davis, McLeodUSA Chairman and Chief Executive Officer. "We are very pleased to have been recognized by General Motors Dealer Equipment for this creative initiative and we look forward to additional sales of these products across the GM dealer network in our 25-state footprint."

    About McLeodUSA

    McLeodUSA provides integrated communications services, including local services, in 25 Midwest, Southwest, Northwest and Rocky Mountain states. The Company is a facilities-based telecommunications provider with, as of March 31, 2003, 38 ATM switches, 46 voice switches, 567 collocations, 433 DSLAMs and 3,720 employees. As of April 16, 2002, Forstmann Little & Co. became a 58% shareholder in the Company. Visit the Company's Web site at www.mcleodusa.com.

    Some of the statements in this press release include statements about our future expectations. Statements that are not historical facts are "forward-looking statements" for the purpose of the safe harbor provided by Section 21E of the Exchange Act and Section 27A of the Securities Act. Such statements may include projections of financial and operational results and goals, including revenue, EBITDA, profitability, savings and cash. These forward-looking statements are subject to known as well as unknown risks and uncertainties that may cause actual results to differ materially from our expectations. Our expectations are based on various factors and assumptions and reflect only our predictions. Factors that could cause actual results to differ materially from the forward-looking statement include technological, regulatory, public policy or other developments in our industry, availability and adequacy of capital resources, current and future economic conditions, the existence of strategic alliances, our ability to generate cash, our ability to implement process and network improvements, our ability to attract and retain customers, our ability to migrate traffic to appropriate platforms and changes in the competitive climate in which we operate. These and other risks are described in more detail in our most recent Annual Report on Form 10-K and Form 10-K/A both filed with the SEC. The Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise.