TDS(R) acquires Baja Broadband for $267.5 million

TDS(R) acquires Baja Broadband for $267.5 million

TDS Telecommunications Corp. (TDS Telecom), subsidiary of Telephone and Data
Systems, Inc. [NYSE: TDS], announces the final purchase of substantially all
of the assets of Baja Broadband, LLC (Baja).

MADISON, WIS., Aug. 2, 2013 (GLOBE NEWSWIRE) -- via PRWEB - Largest
acquisition in company's history completed, transition underway.

TDS Telecommunications Corp. (TDS Telecom), subsidiary of Telephone and Data
Systems, Inc. [NYSE: TDS], announces the final purchase of substantially all
of the assets of Baja Broadband, LLC (Baja), a cable company headquartered in
Alamogordo, New Mexico, for a purchase price of $267.5 million. The purchase
was finalized on Aug. 1, 2013.

In February, Telephone and Data Systems announced their intention to acquire
Baja Broadband pending regulatory approvals, which have been received. TDS
Telecom will manage the operations of Baja Broadband. In preparation for the
announcement, TDS Telecom executives and staff members visited each Baja site
on Thursday to welcome employees to the TDS family.

"Spirits are high and we are feeling confident the transition will be
successful," states Mark Barber, vice president of Cable Operations for TDS
Telecom. "The transition team has been working around the clock to prepare
both organizations for the change. Our goal is to make no impact on customer
operations and to support Baja employees, as well as TDS employees, as they
work together to meet the needs of customers today and to expand services in
the future."

In 2012, Baja reported annual revenues of $85.6 million. The company has 278
employees. Baja Broadband is a full-service communications company, providing
video, high-speed broadband and voice services to residential customers and
businesses in Arizona, Colorado, Nevada, New Mexico, Texas, and Utah.

"This is our largest acquisition to date and we are well positioned to drive
growth going forward. I believe Baja Broadband has significant potential to
deliver increased returns over time," said David A. Wittwer, president and
CEO, TDS Telecommunications Corp. "Our strategy is to leverage our expertise
and technologies to accelerate growth in underserved, high-potential markets."

The company's experience with commercial customers will also enable them to
target new services, including managedIP Hosted to this fast-growing sector in
Baja's service areas. As of June 30, 2013, Baja passed more than 214,000
homes, with approximately 71,000 video subscribers, 59,000 high-speed
broadband subscribers and 16,000 digital voice subscribers. Approximately 96
percent of Baja's network is equipped to deliver high-speed, high-capacity
broadband and video services.

RBC Capital Markets served as the exclusive M&A advisor to Baja in connection
with this transaction. Edwards Wildman Palmer LLP served as legal counsel to
Baja.

About TDS Telecommunications Corp.

TDS Telecommunications Corp. (TDS®) is the seventh largest local exchange
telephone company in the U.S. Headquartered in Madison, Wis. it is a wholly
owned subsidiary of Telephone and Data Systems, Inc. For 44 years, the company
has been connecting people with high-speed Internet, phone, and TV
entertainment services in over a hundred rural, suburban, and metropolitan
communities. Today, TDS has nearly 1 million customer connections in service
and more than 2,500 employees. Business customers select from the latest
technologies, including: VoIP (managedIP Hosted) phone service, dedicated
high-speed Internet, and hosted-managed services. Visit tdstelecom.com or
tdsbusiness.com for more information.

About Baja Broadband

Baja Broadband, a TDS company, is a full-service communications company
offering best-in-class residential and commercial video, high-speed internet,
and voice services. Baja is committed to being the leading provider of
entertainment, information, and communication services in the communities it
serves. Visit http://www.bajabroadband.com for more information.

About Telephone and Data Systems

Telephone and Data Systems, Inc., [NYSE: TDS], a Fortune 500® company,
provides wireless; broadband, TV and voice; and hosted and managed services to
approximately 6 million customers nationwide through its business units, U.S.
Cellular, TDS Telecommunications Corp. and TDS Hosted & Managed Services.
Founded in 1969 and headquartered in Chicago, TDS employs more than 10,700
people. Visit http://www.teldta.com for comprehensive financial information,
including earnings releases, quarterly and annual filings, shareholder
information and more.

Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995: All information set forth in this news release, except historical and
factual information, represents forward-looking statements. This includes all
statements about the company's plans, beliefs, estimates and expectations.
These statements are based on current estimates, projections and assumptions,
which involve certain risks and uncertainties that could cause actual results
to differ materially from those in the forward-looking statements. Important
factors that may affect these forward-looking statements include, but are not
limited to: impacts of pending acquisition and divestiture transactions,
including, but not limited to, the ability to obtain regulatory approval,
successfully complete the transaction and the financial impacts of such
transaction; the ability of the company to successfully manage and grow its
markets; the overall economy; competition; the access to and pricing of
unbundled network elements; the ability to obtain or maintain roaming
arrangements with other carriers on acceptable terms; the state and federal
telecommunications regulatory environment; the value of assets and
investments; adverse changes in the ratings afforded TDS and U.S. Cellular
debt securities by accredited ratings organizations; industry consolidation;
advances in telecommunications technology; uncertainty of access to the
capital markets; pending and future litigation; changes in income tax rates,
laws, regulations or rulings; acquisitions/divestitures of properties and/or
licenses; and changes in customer growth rates, average monthly revenue per
user, churn rates, roaming revenue and terms, the availability of handset
devices, or the mix of products and services offered by U.S. Cellular and TDS
Telecom. Investors are encouraged to consider these and other risks and
uncertainties that are discussed in the Form 8-K Current Report used by TDS to
furnish this press release to the Securities and Exchange Commission ("SEC"),
which are incorporated by reference herein.

This article was originally distributed on PRWeb. For the original version
including any supplementary images or video, visit
http://www.prweb.com/releases/2013/8/prweb10988867.htm

CONTACT: TDS HMS
         DeAnne Boegli
         deanne.boegli@tdstelecom.com
         +1 (608) 664-4428
 
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