Bell Canada And MCI WorldCom in Strategic Alliance.

MONTREAL--(BUSINESS WIRE)--March 3, 1999--BELL(ME:BCE.) (TSE:BCE.) (VSE:BCE.) (NYSE:BCE) MCI(NASDAQ:WCOM)

Agreement Delivers on Customer Needs for Seamless Voice and Data Services on a Global Basis Extends MCI WorldCom's On-Net Global Services throughout North America

Bell Canada and MCI WorldCom announced today that they have joined forces to provide seamless North American and global voice and data services to customers. Through this alliance, Canadian businesses will benefit from one North American contract, a single point of contact, and competitive pricing on MCI WorldCom's On-Net global services, the telecom industry's most extensive portfolio of integrated products and services.

Terry Jarman, president and CEO of Bell Nexxia, said "It is critical for Bell Canada to continue to develop North American and global capabilities. This strategic marketing alliance with MCI WorldCom allows us to meet our customers' needs in the areas of voice and data services. As with other major communications companies in Canada and the United States, we increasingly view North America as a single marketplace."

The new agreement builds on a relationship dating back to 1992. It combines the benefits of MCI WorldCom's On-Net - the industry's first single, high-capacity, end-to-end network - with Bell Canada's reach and expertise as Canada's leading communications provider. Through this new alliance - which will replace the existing arrangements between MCI WorldCom and Stentor - Bell Canada will be the exclusive provider in Canada of MCI WorldCom's On-Net. This will give Bell Canada's customers access to MCI WorldCom's seamless network, linking major commercial centers across North America and the rest of the world.

"MCI WorldCom's agreement with Bell Canada strengthens the competitive positions of both our companies. By partnering with Bell Canada, we extend the MCI WorldCom On-Net global services portfolio into Canada, building upon the company's seamless North American network platform", said Walter Schonfeld, senior vice president, Alliances, MCI WorldCom. "MCI WorldCom experienced 120 per cent growth in Canada-U.S. cross-border data communications over the past two years alone, already the largest business telecommunications corridor in the world," added Schonfeld.

The new partnership with Bell Canada will provide customers with On-Net's enhanced set of voice and data products including managed international private line, frame relay, ATM, virtual voice, and toll free services. Bell Nexxia and its partners will be the vehicle for meeting customer requirements on a national basis. MCI WorldCom will source its Canadian customer requirements through Bell Canada. Bell Canada, in turn, will source its non-Canadian customer requirements from MCI WorldCom. Jarman added that, "By working with major North American players, we're strengthening Canada's place in the global communications marketplace."

Current products that were offered under the former Stentor alliance will continue to be provided and existing alliance customers will be fully supported. MCI WorldCom expects to continue to enjoy good relationships with the other Stentor alliance members. "It is in our best interests and those of our collective customers to continue to serve them effectively and efficiently," said Schonfeld.

Bell Canada, the largest Canadian telecommunications operating company, markets a full range of state-of-the-art products and services to more than seven million business and residential customers in Ontario and Quebec. Bell Canada's Internet Web site is located at http://www.bell.ca. News releases, speeches and background information are in the Newsroom under the About Bell main menu. Our e-mail address is [e-mail].

MCI WorldCom is a global communications company with revenue of more than $30 billion and established operations in over 65 countries encompassing the Americas, Europe and the Asia-Pacific regions. MCI WorldCom is a premier provider of facilities-based and fully integrated local, long distance, international and Internet services. MCI WorldCom's global networks, including its state-of-the-art pan-European network and transoceanic cable systems, provide end-to-end high-capacity connectivity to more than 40,000 buildings worldwide. For more information on MCI WorldCom, visit the World Wide Web at http://www.wcom.com.