McLeodUSA Incorporated Files Registration Statement with SEC for Offer to Exchange its 10 1/2% Senior Second Secured Notes Due 2011

Business Wire, March 26, 2007

CEDAR RAPIDS, Iowa -- McLeodUSA Incorporated announced today that it has filed a registration statement on Form S-4 with the U.S. Securities and Exchange Commission to register its offer to exchange $120 million outstanding principal amount of its 10u% Senior Second Secured Notes due 2011 (the "Old Notes") for an equivalent principal amount of its 10u% Senior Second Secured Notes due 2011 (the "New Notes"). The New Notes will be identical in all material respects to the Old Notes, except that the New Notes will be registered with the U.S. Securities and Exchange Commission and will not be subject to transfer restrictions and registration rights relating to the Old Notes.

On September 28, 2006, McLeodUSA completed an offering of $120 million in aggregate principal amount of the Old Notes in a private placement that was exempt from registration under the Securities Act of 1933, as amended. In connection with that offering, McLeodUSA agreed to file a registration statement with the U.S. Securities and Exchange Commission with respect to the Old Notes.

A registration statement relating to these securities has been filed with the U.S. Securities and Exchange Commission but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

This press release is not an offer to exchange New Notes for Old Notes, which shall be made only through a prospectus. Copies of the preliminary prospectus relating to this offering may be obtained, when available, from the exchange agent, U.S. Bank National Association, 60 Livingston Avenue, St. Paul, MN 55107, (800) 934-6802.

About McLeodUSA

McLeodUSA provides managed internet protocol-, or IP-, based communications services to small- and medium-sized enterprises, and traditional circuit-switched telephony services to commercial and residential customers in the Midwest, Rocky Mountain, Southwest and Northwest regions of the nation. McLeodUSA delivers an extensive array of broadband IP-based voice and data solutions, targeting primarily small and medium-sized enterprises and multi-location commercial customers.