BCI Increases Stake in Canbras Communications Corp.

Business Editors

MONTREAL--(BUSINESS WIRE)--Sept. 27, 2000

BCI(NASDAQ:BCICF) (TSE:BI.)

Holds 66.8% Interest in Brazilian Broadband Cable Company

Following Loan Conversion;

Extends New Cdn$25 Million Short-term Loan Facility to Canbras.

Bell Canada International Inc. ("BCI") today announced that it has increased its stake in Canbras Communications Corp. (TSE: CBC) ("Canbras") from 54.5% to 66.8% of the total outstanding shares through the conversion of a loan in the amount of Cdn$79.5 million (principal plus accrued interest) into 7,118,776 common shares of Canbras at a price of Cdn$11.17 per share.

Concurrent with the closing of the loan conversion, BCI also extended a new Cdn$25 million short-term, subordinated convertible loan facility to Canbras. These transactions were approved yesterday by Canbras' minority shareholders following the recommendation of a Special Committee of the Canbras board.

Yesterday, BCI announced that it had entered into an agreement with Telefonos de Mexico S.A. de C.V. ("Telmex") and Texas-based SBC Communications Inc. ("SBC") to form a facilities-based communications company with an initial capitalization of approximately US$4 billion which will serve as the three companies' principal vehicle for expansion in Latin America.

Under the agreement reached among BCI, Telmex and SBC, which is expected to close in the fourth quarter of this year, BCI and Telmex will each hold a 44.3% interest in the new company, with SBC holding 11.4%. BCI's interest in Canbras will be part of BCI's contribution to the new venture.

In announcing BCI's increased equity stake in Canbras, Louis Tanguay, President and CEO of BCI stated, "Canbras holds the potential to become a broadband player of scale and scope in the State of Sao Paulo - the economic heartland of Brazil. Already, Canbras provides cable television, high speed internet access and data transmission services over its broadband networks in Greater Sao Paulo and has recently launched a B2B Web portal to serve small and medium-sized enterprises. Canbras continues to explore expansion opportunities and establish a two-way network in all its Sao Paulo area licenses which will enable the company to provide a range of telecommunications services once the Brazilian telecom market is fully liberalized."

BCI owns, develops and operates advanced communications companies in markets outside Canada, with a focus on Latin America. A subsidiary of BCE Inc., Canada's largest communications company, BCI's shares are listed on the Toronto Stock Exchange under the symbol BI and on the NASDAQ National Market under the symbol BCICF. Visit our Web site at www.bci.ca.