McLeodUSA Unloads Systems in Midwest

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McLeodUSA is shedding some of its cable-television properties along with
other telecommunications holdings in the Midwest.

The struggling competitive local-exchange carrier has announced that it is
selling the cable properties -- along with other noncore independent LEC
operations in South Dakota, southwestern Minnesota and northwestern Iowa -- to
Prairie Wave Communications for $88 million.

The cable properties cover approximately 36 small community systems in a
regional cluster. Prairie Wave and McLeodUSA are not releasing the number of
cable subscribers involved.

Formed by a group of investors headed by Alta Communications and Bank of
America LLC Capital Investors, Prairie Wave must still complete senior-debt
financing before closing on the deal sometime in the third quarter.

McLeodUSA is looking for the cash infusion after
emerging from Chapter 11 bankruptcy last month.

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