Chris A. Davis, Chairman and CEO of McLeodUSA, Wins Stevie Award for Best Executive in the Inaugural American Business Awards.

Business Editors

CEDAR RAPIDS, Iowa--(BUSINESS WIRE)--May 1, 2003

Award Recognizes Achievements in Outstanding Leadership

McLeodUSA Incorporated (Nasdaq:MCLD), one of the nation's largest independent competitive telecommunications service providers, announced today that its Chairman and CEO Chris A. Davis was awarded a national 2003 Stevie(TM) Award for "Best Executive" in the inaugural American Business Awards(SM) ceremony held Wednesday, April 30 in New York City.

Hailed as "the business world's own Oscars" by the New York Post (September 22, 2002), The American Business Awards are the first national, all-encompassing business awards program honoring great performances in the workplace. Nicknamed the Stevies for the Greek word "crowned," the awards were presented at a nationally broadcast show at the Sheraton New York Hotel & Towers in New York City. The ceremony was hosted by Charles Osgood, host of CBS News Sunday Morning and commentator for the CBS Radio Network, and was broadcast nationwide on radio, and worldwide via the Internet, by Business Talk Radio.

"This award recognizes the unparalleled commitment of McLeodUSA's talented employees and executive team, whose hard work and dedication have been critical to the Company's achievements over the past eighteen months," said Ms. Davis. "I am honored to have been selected from such an impressive group of executives as the first recipient of this prestigious award."

The American Business Awards recognized Ms. Davis' many accomplishments over the past year, highlighting her leadership skills in guiding McLeodUSA through a rapid restructuring. She was selected as the "Best Executive" for her role in designing and executing a unique business strategy, which has helped the Company achieve positive earnings before interest, taxes, depreciation and amortization (EBITDA) for four consecutive quarters - the first time ever in McLeodUSA's history. Ms. Davis is also praised for streamlining the company's operating processes, implementing a comprehensive and rigorous employee quality training and certification program, simplifying the Company's product offerings and launching its first major marketing and advertising campaign.

A total of 44 Stevie Awards were presented in more than 40 categories. In addition to Best Overall Company and Best Executive, awards were given in the categories of sales, marketing, customer service, product development, advertising, finance, human resources and Web site design among others. Almost 500 nominations from companies of all sizes and in virtually every industry were submitted for consideration. Honorary Stevie Awards were also presented to The Dow Chemical Company for sales, Johnson & Johnson for corporate reputation and WashingtonPost.Newsweek Interactive for customer service and ROI.

Members of the Awards' Board of Distinguished Judges & Advisors and their staffs selected Stevie Award winners from among the finalists. The Board includes business luminaries such as Rich Karlgaard, publisher of Forbes, Bruce Nelson, chairman & CEO of Office Depot, marketing gurus Don Peppers and Martha Rogers, Anthony Robbins, Chairman & CEO of The Anthony Robbins Companies, Drew Schutte, publisher of Wired Magazine, Jeffrey Tarr, chairman & CEO of Hoover's Inc., and Donald Trump, chairman, president and CEO of The Trump Organization.

Finalists were selected by business professionals nationwide during February and March. In addition to Ms. Davis, McLeodUSA's Preferred Advantage(SM) Enhanced Toll Free (E800) Service Development Team was also selected as a finalist in the "Best Product Development Team" category. Lead by Brandon Watts, Director, Enhanced Toll Free Services and Cody Sims, Product Manager, Enhanced Toll Free Services, this team was recognized for their leadership in engineering, web development, application processes and customer service and for their ability to tackle the challenges of effectively operating a diverse multi-vendor switched long distance network.

The elegant Stevie trophy was designed by R. S. Owens, the same company that makes the Oscar and the Emmy.

"With the Stevie Awards, business people now have the opportunity to win the same sort of positive attention that up till now only entertainment celebrities could get," said Michael Gallagher, founder and president of The Stevie Awards, the organization that runs The American Business Awards. "Tonight we took a giant leap forward in recognizing companies and the people who work for them for their positive efforts, accomplishments and contributions to their communities."

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.

About The American Business Awards(SM)

A celebration of great performances in the workplace, The American Business Awards are the first national, all-encompassing business awards program. Honoring companies of all types and sizes and the people behind them, the Awards recognize outstanding leadership, innovation, perseverance, creativity, teamwork, and integrity through more than 40 categories. The first American Business Awards - nicknamed The Stevies(TM) from the Greek word for "crowned" - were presented at an awards show in New York City on April 30. The program is overseen by a Board of Distinguished Judges & Advisors, which includes leading business executives, authors, and academics. Sponsors of the 2003 American Business Awards include Business Talk Radio, DHR International, Empire Media, Forbes, Hoover's Online, Inc. Magazine, Miller Heiman, Selling Power Magazine, and Wired Magazine.

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.