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UNITED STATES CELLULAR CORP. ANNOUNCES COMMENCEMENT OF RIGHTS OFFERING

 CHICAGO, Oct. 25 /PRNewswire/ -- United States Cellular Corp. (AMEX: USM) announced that it has commenced its previously announced Rights Offering to shareholders of record on Oct. 22, 1993. USM is distributing to holders of its outstanding Common Shares, at no cost, transferable subscription rights to purchase additional Common Shares. Stockholders will receive one Right for each five Common Shares held by them as of the close of business on the record date. Each Right entitles the holder to purchase one Common Share at a subscription price of $33.00 per Common Share, which is 10 percent less than the closing price of the Common Shares as reported on the American Stock Exchange on Oct. 22, 1993. Rights holders may also subscribe for additional Common Shares at the subscription price to the extent that shares are not subscribed for through the exercise of all basic subscription privileges by the expiration date, which is 5:00 p.m., New York City time, on Nov. 15, 1993, unless extended.
 Telephone and Date Systems, Inc. (TDS), which owns over 68 percent of the Common Shares and 100 percent of the Series A Common Shares, will purchase all Common Shares not purchased by other Rights holders at a price per share equal to the subscription price. In addition, TDS will receive rights on a substantially identical basis to purchase Series A Common Shares.
 As previously announced, the primary purpose of the Rights Offering is to reduce the amount of USM debt due to TDS in order to de-leverage USM's balance sheet and thereby better position USM to continue its expansion and development activities. The net proceeds from the exercise of all Rights, including the net proceeds from the sale of Common Shares to holders other than TDS, will be used to reduce USM's indebtedness to TDS by approximately $378 million.
 The Dealer Managers for the Rights Offering are Salomon Brothers Inc and Donaldson, Lufkin & Jenrette Securities Corporation.
 The Rights Offering is being made only by means of a Prospectus pursuant to a Registration Statement filed under the Securities Act of 1933, as amended, which became effective on Oct. 22, 1993. This notice shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of such Common Shares in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
 Headquartered in Chicago, USM manages and invests in cellular systems throughout the United States. As of June 30, 1993, USM owned or had rights to acquire interests representing 22.3 million population equivalents in 200 markets. At that date, USM managed operational systems serving 128 markets.
 -0- 10/25/93
 /NOTE TO EDITORS: For further information or to receive a copy of the Prospectus, please contact the Information Agent, Salomon Brothers Inc, at 800-223-3772, or Kenneth R. Meyers, vice president-finance, at 312-399-8900. Out-of-town media, pleases call collect./
 /CONTACT: Kenneth R. Meyers, vice president-finance of United States Cellular Corp, 312-399-8900/
 (USM)


CO: United States Cellular Corp. ST: Illinois IN: TLS SU: OFR

JL -- NE004 -- 6222 10/25/93 10:43 EDT
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Publication:PR Newswire
Date:Oct 25, 1993
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