Bell Canada International Announces New Minority Investor in Colombian Cellular Operations.

MONTREAL--(BUSINESS WIRE)--Oct. 30, 1998--(NASDAQ:BCICF) (ME:BI.) (TSE:BI.) Bell Canada International Inc. ("BCI") (NASDAQ: BCICF) has announced it has reached an agreement with a subsidiary of American International Group, Inc. ("AIG"), whereby it will invest US$75 million for a 3.45 percent interest in BCI's Colombian cellular operations, Comunicacion Celular S.A. ("COMCEL") and Occidente y Caribe Celular S.A. ("OCCEL").

BCI holds currently a 51.1 percent interest in COMCEL and a 68.4 percent interest in OCCEL, which on a combined basis serve over 700,000 subscribers in licensed territories containing over 80 percent of Colombia's population. The investment will facilitate the ongoing integration of these two companies. The closing of the transaction is subject to certain conditions, including lender approval.

This is the sixth investment by an AIG subsidiary with BCI and the second involving a Latin American operation. Other ventures include Hansol PCS in Korea, Yantai Bell and Shandong Bell in China and Tata Communications in India. Through WorldTel Mexico Telecom Ltd., an AIG subsidiary, AIG is also an investor in BCI's Mexican venture, Telinor.

In making the announcement, Mr. Derek H. Burney, Chairman and CEO of BCI stated, "This investment by AIG, one of the world's leading financial organizations and a valued partner of BCI, is an important step towards the full integration of our two Colombian companies - a process which has been proceeding at the operational level since April of this year. This investment by AIG also confirms the significant value of our Colombian operations, in terms of their performance to date and their growth potential."

AIG is the leading US-based international insurance organization and among the largest underwriters of commercial and industrial insurance in the United States. It operates in approximately 130 countries and is engaged in a range of financial services businesses. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.

BCI is a leading provider of telecommunications services in markets outside of Canada. The corporation owns, develops and operates telecommunications systems with a focus on the wireless sector. A subsidiary of BCE Inc., Canada's largest telecommunications company, BCI is listed on the Montreal and Toronto stock exchanges under the symbol BI, and on NASDAQ under the symbol BCICF.