BCI Sells Stake in Taiwanese PCS Provider, KG Telecom.

Business Editors

MONTREAL--(BUSINESS WIRE)--Aug. 31, 2000

BCI (NASDAQ:BCICF) (TSE:BI.)

* Sale generates gross proceeds of Cdn$790 million

* Completes BCI's Asian divestiture program - Company now focused on Latin America

* Gross proceeds from sale of Asian assets now totals Cdn$2.3 billion

Bell Canada International Inc. ("BCI") today announced that it has signed a definitive share purchase agreement with Taiwan Cement Corporation to sell its 20 % minority interest in the Taiwanese PCS provider, KG Telecom, for NT$53 per share, generating gross proceeds to BCI of approximately Cdn$790 million.

Closing of the sale is conditional upon certain customary regulatory and contractual consents.

The purchaser, Taiwan Cement Corporation, is a major company of the Koo Group, the largest shareholder of KG Telecom.

BCI expects to receive in September an initial payment of approximately Cdn$120 million for a 3.1 % interest in KG Telecom. Under the terms of the agreement, Taiwan Cement Corporation has undertaken to pay the balance of the purchase price by no later than February 28, 2001, with the right to designate third parties to purchase all or part of the balance of BCI's interest at NT$53 per share during the period up to February 28, 2001.

Launched in late 1997, KG Telecom today provides a range of mobile voice and data services to more than 1.7 million subscribers across the island of Taiwan. Based on the transaction price of NT$53 per share, the value of BCI's investment has more than tripled in three years - generating an accounting gain of over Cdn$500 million and an annualized rate of return for BCI approaching 100 %.

BCI's President and CEO Louis Tanguay stated, "During the past nine months, BCI has signed agreements to sell all our Asian assets, generating total gross proceeds of Cdn$2.3 billion and a net gain of Cdn$1.6 billion - almost a four-fold increase in the value of our original cash investment in these Asian ventures. As previously announced, our strategy going forward is to focus on Latin American growth opportunities."

BCI owns, develops and operates advanced communications companies in markets outside Canada, with an increasing focus on South 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.