BCE Earnings Increase 23%.

MONTREAL--(BUSINESS WIRE)--Oct. 27, 1999--

BCE today announced third quarter results reflecting revenue growth from all its operations and a 23% increase in unaudited baseline earnings as a result of continued strong performance at Nortel Networks.

BCE reported third quarter unaudited baseline earnings of $0.74 per common share ($474 million) compared with $0.60 per common share ($380 million) for the same period in 1998. For the nine months ended September 30, 1999, unaudited baseline earnings were up 21% to $1.99 per common share ($1.3 billion).

"During the quarter, we continued to move on targeted initiatives," said Jean C. Monty, President and Chief Executive Officer. "Bell Canada, in tandem with its new partner SBC/Ameritech, should benefit from the full ownership of BCE Mobile and from the proposed offer to increase Bell Canada's interest in Aliant, the fast-growing communications company serving the Atlantic region; BCE Emergis is focussing on e-commerce and announced the acquisitions of SNS/Assure and Assure Health, companies providing electronic commerce solutions to the financial services and health insurance sectors; CGI's revenue was fueled by a combination of internal growth and acquisitions; Bell ExpressVu continued strong growth in subscribers following the announcement of its new 200 channel line-up."

Total revenue (excluding Nortel Networks) increased 5% to $3.6 billion in the third quarter of 1999. For the nine-month period, total revenue grew 6% to $10.5 billion.

Reported net earnings were $0.19 per common share ($123 million) for the third quarter of 1999 compared with net earnings of $5.83 per common share ($3.7 billion) for the same period in 1998. Third quarter earnings included net special charges of $351 million mainly attributable to acquisition related costs at Nortel. Reported net earnings in the third quarter of 1998 included net gains of $3.3 billion mostly related to the dilution gain on the reduction of BCE's ownership in Nortel Networks.

Highlights of the quarter (third quarter 1999 vs. third quarter
1998):

*    Bell's revenue from data services grew 21% and accounts for
     19% of total revenue;
*    Bell Mobility's gross activations were 163,000, an increase
     of 42%;
*    BCE Emergis' revenue was up 82% to $49 million;

*    CGI's revenue was up 21% to $394 million;

*    Bell ExpressVu subscribers grew 156% to 304,000.

RESULTS BY GROUP

BCE's activities are organized around five business groups: Bell Canada, CGI and BCE Emergis, BCE Media, Nortel Networks and Bell Canada International. Bell Canada includes Bell Mobility, Bell Nexxia, Bell ActiMedia, as well as Bell Canada's interests in Aliant, 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 (on a baseline basis) (unaudited)

                         ($ millions, except per share amounts)
                         --------------------------------------
                                    Third Quarter   Nine Months
                                    -------------   -----------
For the period ended September 30     1999   1998   1999   1998
---------------------------------------------------------------
Revenue
Bell Canada                          3,184  3,101  9,307  9,172
CGI and BCE Emergis                    224    147    605    166
BCE Media                              121     60    298    107
Nortel Networks(1)                       -  3,210      - 14,253
Bell Canada International(2)           209    205    592    548
Corporate, Intercompany eliminations,
 and Other                           (106)  (187)  (295)  (693)
                                    ------ ------ ------ ------
Total revenue                        3,632  6,536 10,507 23,553
===============================================================
Earnings
Bell Canada(3)                         278    340    903    965
CGI and BCE Emergis                    (2)      1   (10)   (13)
BCE Media                             (17)   (19)   (53)   (27)
Nortel Networks                        220    133    567    385
Corporate, Intercompany eliminations,
 and Other                              18   (51)   (60)  (196)
                                    ------ ------ ------ ------
Baseline earnings                      497    404  1,347  1,114
Dividends on preferred shares         (23)   (24)   (70)   (69)
                                    ------ ------ ------ ------
Baseline earnings applicable to
common shares                          474    380  1,277  1,045
---------------------------------------------------------------
Baseline earning per common share     0.74   0.60   1.99   1.64
===============================================================

(1) Effective September 1, 1998, BCE equity accounts for its
    investment in Nortel Networks

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

(3) Reflects BCE's reduction in ownership, effective June 1, 1999

BELL CANADA

For the third quarter, operating revenue for Bell Canada was up 3% to $3.2 billion. Revenue from local and access services was flat at $1.4 billion. Revenue from long distance and network services declined by 5% to $982 million reflecting the decline in average long distance prices. Revenue from wireless services was up 3% to $282 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 cellular and PCS subscribers was up 25% to 1.7 million at the end of the third quarter, compared with the same period last year. Terminal sales, directory and other revenues grew by 32% to $556 million due mainly to increased revenue from Bell Nexxia.

Cash operating expenses were up 4% to $1.8 billion due mainly to increased expenses associated with increased revenue. Earnings before interest, taxes, depreciation and amortization (EBITDA) grew 1% to $1.4 billion.

Bell Canada's baseline earnings applicable to common shares increased 3% to $349 million in the third quarter of 1999. Bell Canada's baseline contribution to BCE's earnings was $278 million for the same period, reflecting BCE's 80% ownership.

CGI AND BCE EMERGIS

BCE recorded a loss of $2 million for this group in the third quarter of 1999. BCE's $9 million share of BCE Emergis' loss in the third quarter of 1999 was mainly attributable to amortization of goodwill.

CGI's contribution to BCE was $7 million in the third quarter and reached $23 million on a year to date basis. CGI now has a revenue run-rate of approximately $1.6 billion and an order backlog of more than $7.5 billion.

BCE MEDIA

In the third quarter of 1999, BCE's share of the group's loss was $17 million. In the same period, BCE Media recorded a $62 million charge, not included in baseline earnings, related to the write-off of its investment in SkyView. In the third quarter of 1998, BCE's share of the group's loss was $19 million. Revenue for BCE Media reached $121 million compared with $60 million last year mainly due to revenue growth at Bell ExpressVu, Telesat and in other media interests.

NORTEL NETWORKS

Nortel Networks' contribution to BCE's baseline earnings was $220 million in the third quarter of 1999 up 65% compared with the third quarter of 1998, driven primarily by revenue growth. Nortel Networks' performance was attributable mainly to increased revenue in its Carrier segment driven by higher sales of optical networks and high speed access solutions. Revenue from the Enterprise segment continued to increase substantially in the quarter primarily as a result of higher enterprise data revenue due to the Bay Networks merger.

BCI

BCE's share of BCI's loss was $104 million in the third quarter of 1999, compared with a loss of $53 million for the same period in 1998. The increased loss was mainly attributable to the impact of currency devaluation, the economic downturn in Colombia and the fact that BCI now accounts for 100% of the losses pertaining to its Colombian cellular company, Comcel. BCI's revenue for the third quarter of 1999 was up 2% compared with the third quarter of 1998 reflecting strong growth in Asian Pacific operations, partly offset by the economic conditions in Colombia.

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 5 million customers in Asia and Latin America. BCE also has an extensive international presence through its ownership in Nortel Networks, a global leader in the design and building of communications networks, as well as through Teleglobe, an international telecommunications carrier. BCE shares are listed in Canada, the United States and Europe,

A replay of BCE's third quarter 1999 conference call with analysts can be heard, on a continuous basis, between 6:00 PM eastern time on October 27 to 6:00 PM on November 3, 1999. Simply dial [phone] and you will be instructed to enter the access code: 334737.

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; general industry and market conditions and growth rates; international growth and global economic conditions, particularly in emerging markets and including interest rates and currency exchange rate fluctuations; unanticipated impact of Year 2000 issues; 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.