BCE Announces First Quarter Results.

Business Editors

TORONTO--(BUSINESS WIRE)--April 26, 2000

Revenue increases 9% -- EBITDA up 5%

BCE today announced first quarter results reflecting strong revenue growth from all its operations, including Bell Canada. BCE reported first quarter unaudited cash baseline earnings of $0.43 per common share ($278 million) compared with $0.42 per common share ($271 million) for the same period in 1999. Beginning this quarter, BCE will be reporting on a "cash baseline earnings" basis which excludes goodwill expense. Figures for 1999 have been restated for comparative purposes. Due to the pending distribution of BCE's approximate 35% interest in Nortel Networks, results for Nortel Networks are excluded from cash baseline earnings and treated as a baseline adjustment.

"During the quarter, we made several announcements to ensure BCE's leading position in the Internet economy and sustain growth in the years to come," said Jean C. Monty, President and Chief Executive Officer. "BCE announced the distribution of Nortel Networks shares to its shareholders, purchased CTV and took the first step toward becoming a global communications company by announcing its plan to acquire Teleglobe. Bell Canada also announced a $1.5 billion investment for the acceleration of its plan to expand and enhance availability of high speed Internet."

In the first quarter, total revenue, which now include the consolidated results of Aliant, reached $4.1 billion, a 9% increase compared with the same period in 1999. Earnings before interest, taxes, depreciation and amortization (EBITDA) grew by 5.1% to $1.6 billion for the same period.

Reported net earnings were $6.44 per common share ($ 4.1 billion) for the first quarter of 2000 compared with a net loss of $0.18 per common share ($115 million) for the same period in 1999. First quarter 2000 earnings included a contribution of $4.1 billion from Nortel Networks mostly attributable to a dilution gain, following the completion of acquisitions in the first quarter, which reduced BCE's ownership.

Highlights of the quarter (first quarter 2000 vs. first quarter 1999):

    --  Bell's revenue from data services grew by 25%;

    --  Bell Mobility total number of subscribers was up 22% to 1.9
        million;

    --  Sympatico total subscribers doubled to reach 545,000;

    --  Sympatico High Speed Edition subscribers totaled 69,000 at the
        end of the quarter;

    --  BCE Emergis posted record revenue of $73 million up 96%;

    --  Bell ExpressVu's subscribers grew 123% to 469,000.

RESULTS BY GROUP

BCE's activities are organized around four business groups: Bell Canada, BCE Emergis and CGI, BCE Media, and Bell Canada International. Bell Canada includes Bell Mobility, Bell Nexxia, Bell ActiMedia, Aliant as well as Bell Canada's interests in Manitoba Telecom Services (MTS), Teleglobe and other Canadian telcos. The BCE Media group is comprised of Bell ExpressVu, Telesat and other media interests.

    Results by Operating Group (unaudited)

                         ($ millions, except per share amounts)
                                                   First Quarter
                                                  -------------
For the period ended March 31                        2000  1999
---------------------------------------------------------------
Revenue
Bell Canada(1)                                      3,628 3,357
BCE Emergis and CGI                                   242   187
BCE Media                                             136    85
Bell Canada International(2)                          241   195
Corporate, Intercompany eliminations, and Other     (147)  (65)
                                                    ----- -----
Total revenue                                       4,100 3,759
---------------------------------------------------------------
Earnings
Bell Canada(3)                                        266   326
BCE Emergis and CGI                                     8    11
BCE Media                                            (23)  (17)
Corporate, Intercompany eliminations, and Other        50  (26)
                                                    ----- -----
Cash baseline earnings                                301   294
Dividends on preferred shares                        (23)  (23)
                                                    ----- -----
Cash baseline earnings applicable to common shares    278   271
---------------------------------------------------------------
Cash baseline earnings per common share              0.43  0.42
---------------------------------------------------------------


    1   Aliant results are consolidated at 53%, beginning in the first
        quarter of 2000. Results for 1999 have been restated to
        include the consolidation of Aliant at 41%. Bell Canada's
        revenue excluding Aliant was $3.1 billion in the first quarter
        of 2000 and $3 billion for the same period in 1999. Aliant is
        held by BCE (12%) and by Bell Canada (41%).

    2   Bell Canada International's earnings are excluded from BCE's
        cash baseline earnings.

    3   Reflects BCE's 80% ownership in 2000 and 100% ownership in
        1999.

BELL CANADA

For the first quarter, operating revenue for Bell Canada was up 8% to $3.6 billion. Revenue from local and access services increased by 10% to $1.6 billion, reflecting mainly the increase in the number of lines in service. Revenue from long distance and network services increased by 4% to $1.1 billion reflecting higher revenues from calls originating in the United States. Bell Mobility revenue was up 7% to $278 million for the same period due to growth in the number of subscribers partly offset by lower average revenue per subscriber. Total number of Bell Mobility subscribers was up 22 % to 1.9 million at the end of the first quarter, compared with the same period last year. Terminal sales, directory advertising and other revenues grew by 11% to $629 million due mainly to increased data revenue from Bell Nexxia.

Cash operating expenses were up 9% to $2.1 billion due mainly to increased expenses associated with increased revenue. Earnings before interest, taxes, depreciation and amortization (EBITDA) grew 7% to $1.6 billion.

Bell Canada's cash baseline contribution to BCE's earnings was $266 million in the first quarter.

BCE EMERGIS AND CGI

BCE recorded a cash baseline contribution of $8 million for this group in the first quarter of 2000 compared with $11 million for the same period in 1999.

BCE's share of BCE Emergis' baseline loss in the first quarter of 2000 was $3 million. During the quarter, BCE Emergis completed the acquisition of United Payors and United Providers (UP & UP) -- delivering a claims and payment network for insurance companies and healthcare providers.

CGI's cash baseline contribution to BCE was $11 million in the first quarter.

BCE MEDIA

In the first quarter, the group recorded a baseline loss of $23 million compared with a baseline loss of $17 million in the first quarter of 1999. Revenue for BCE Media reached $136 million in the quarter, a 60% increase over the same period last year. The strong growth was mainly attributable to increased revenue at Bell ExpressVu and Telesat.

During the quarter, BCE Media launched Canal Evasion, Canada's first French-language travel channel. BCE Media also announced that Telesat Canada and other partners would develop a specialized multimedia communications satellite to be launched in 2002.

BCI

BCE's share of BCI's loss was $131 million in the first quarter of 2000, compared with a loss of $54 million for the same period in 1999. The increased loss was mainly attributable to the early stages of most BCI's operations and includes the ongoing accounting by BCI for 100% of Comcel's loss in the first quarter of 2000 compared with 50% for the same period in 1999. BCI's revenue for the first quarter of 2000 was up 23% compared with the first quarter of 1999 mainly due to BCI's Asian Pacific PCS operations, partially offset by lower revenue from Comcel. Proportionate number of subscribers exceeded 1.5 million in the first quarter of 2000.

NORTEL NETWORKS

Following BCE's plan to distribute an approximate 35% interest in Nortel Networks to BCE shareholders, Nortel's contribution to BCE is reported as a baseline adjustment and totaled $4.1 billion in the quarter.

BCE is Canada's largest communications company. Through its operations in communications services, BCE provides residence and business customers in Canada with wireline and wireless communications products and applications, satellite communications and direct-to-home television services, systems integration expertise, electronic commerce solutions, Internet access and high-speed data services, and directories. Abroad, through Bell Canada International's investee companies, BCE provides communications services to more than 6 million customers in Asia and Latin America. BCE also has an extensive international presence through its interest in Teleglobe, an international telecommunications carrier. BCE shares are listed in Canada, the United States and Europe.

A replay of BCE's first quarter 2000 conference call with analysts can be heard, on a continuous basis, between 6:00 PM eastern time on April 26 to 6:00 PM on May 10. Simply dial [phone] and you will be instructed to enter the access code: 448847.

Note:

Certain statements made in this press release, which describe BCE's intentions, expectations or predictions, are forward-looking and are subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the impact of rapid technological and market change; increasing competition; general industry and market conditions and growth rates; international growth and global economic conditions, particularly in emerging markets, including interest rate and currency exchange rate fluctuations; the level of expenditures necessary to maintain quality of service, the availability and cost of capital, and the extent of demand for traditional and emerging services; the Internet economy growing at a slower pace than is currently anticipated as well as changes in laws or regulations governing Internet commerce; and the impact of consolidations in the telecommunications industry. For additional information with respect to certain of these and other factors, see the reports on Forms 6-K and 40-F filed by BCE with the United States Securities and Exchange Commission. BCE disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.