Williams Communications and McLeodUSA establish network services agreement

Aug. 3, 2001--McLeodUSA Incorporated, an independent competitive local exchange carrier, and Williams Communications Inc., a broadband provider for bandwidth-centric customers, announced they have entered into a mutually beneficial network services agreement.

Aug. 3, 2001

McLeodUSA Incorporated (Nasdaq: MCLD), an independent competitive local exchange carrier, and Williams Communications Inc. (NYSE: WCG), a broadband provider for bandwidth-centric customers, announced they have entered into a mutually beneficial network services agreement.

Under the terms of the multi-year contract, the companies expect to provide telecommunications services allowing Williams Communications to leverage the Tier Two and Tier Three market footprint of McLeodUSA in its 25-state region while affording McLeodUSA access to the market presence of Williams Communications in Tier One markets.

About McLeodUSA:

McLeodUSA provides integrated communications services. The Company's fiber optic network is capable of transmitting integrated next-generation data, Internet, video and voice services. For more information, visit at www.mcleodusa.com.

About Williams Communications Group, Inc.:

Williams Communications Group, Inc., is a broadband network services provider focused on the needs of bandwidth-centric customers. For more information, visit www.williamscommunications.com .