US Cellular To Restate Prior Periods,Maintains Fiscal Year Guidance"

US Cellular Corp. on Monday said it plans to restate financial results for the 2002 through 2005, including quarterly information for 2004 and 2005, and the first and second quarters of 2006 to correct its accounting for prepaid forward contracts.

The restatements are related to the Chicago cellular phone company's ownership of Vodafone Group American Depository receipts.

U.S. Cellular's parent company, Telephone and Data Systems also said it would restate those periods due to its interest in Vodafone.

U.S. Cellular said it doesn't anticipate being able to meet American Stock Exchange listing standards because it won't be able to file its third-quarter report with the Securities and Exchange Commission in a timely manner. U.S. Cellular also said it didn't meet requirements to continue hedge accounting for the forward contracts following the receipt of dividends from Vodafone in 2002.

The company said it received waivers from its lenders under credit agreements and from counterparties under certain forward contracts.

For the third quarter, the company expects operating income of $70 million to $90 million on revenue of $880 million to $900 million.

For 2006, the company maintained its operating income outlook of $275 million to $325 million on service revenue of $3.2 billion.

-Jonathan Vuocolo; 201-938-5400; AskNewswires@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 7th November 2006