Bell Canada International Forms Strategic Alliance With Telinor and WorldTel to Offer Local Telephone Services in Mexico.

MONTREAL--(BUSINESS WIRE)--Oct. 15, 1997--WorldTel Bell Canada International (ME, TSE: BI) (NASDAQ: BCICF) Bell Canada International Inc. ("BCI"), Telefonia Inalambrica Del Norte, S.A. de C.V. (Telinor), a Monterrey-based telecommunications company and WorldTel Limited have formed a partnership to offer competitive local telephone services in Mexico using mainly fixed wireless access.

Telinor will participate in the radio spectrum auctions to be conducted in November and intends to acquire a nationwide footprint. Following the auction, the shareholders will jointly contribute $250 million in equity capital to Telinor, the first company awarded a concession to offer both local and long-distance telecommunications services in direct competition with Telmex, Mexico's telecommunications monopoly until 1997. Telinor's founding shareholders will retain a 51 percent voting interest in the Company after BCI and WorldTel acquire 27 percent and 22 percent, respectively. Total capital investment by Telinor could reach $1 billion over the first five years of operations.

Derek Burney, Chairman and CEO of BCI, stated, "Mexico represents an exciting opportunity for BCI, with its population of 93 million and a national wireline penetration rate of just 10 lines per 100 inhabitants. Our investment in Telinor reflects BCI's core strategy, working with strong local partners and astute multinational investors to provide high quality wireless services in promising markets with significant unmet demand, good growth prospects and attractive competitive environments."

"Our objective," explains Tomas Milmo Santos, CEO of Telinor, "is to actively participate in the modernization of the Mexican telecommunications industry and serve as a catalyst for economic development. We intend to deploy advanced telecommunications infrastructure, provide a world-class service and create several thousand good jobs."

Telinor seeks to capitalize on the cost and efficiency advantage of wireless technologies over traditional wireline networks. Wireless local loop is viewed to be among the most viable alternatives for quickly deploying basic local telephone networks, particularly in emerging economies with relatively low levels of penetration, such as Mexico.

"Our commitment to Telinor," added Sam Pitroda, Chairman of WorldTel, "reflects our confidence in our partners and in the opportunity to expand basic telephony service to millions in Mexico in a continuing effort to close the global telecommunications gap."

Telinor was formed in 1994 by a group of Monterrey businessmen including Messrs. Tomas Milmo Santos, Tomas Milmo Zambrano, Lorenzo Zambrano, and Alberto Santos. Lorenzo Zambrano is the Chairman and CEO of Cemex, the second largest cement producer in the world and one of Mexico's leading industrial groups. The Blackstone Group, the New York-based investment bank, acted as Telinor's financial advisor.

BCI is a leading provider of telecommunications services in the key emerging markets of Latin America and the Asia-Pacific region with a focus on the wireless sector. A subsidiary of BCE Inc., Canada's largest telecommunications company, BCI develops, owns and operates telecommunications systems in Colombia, Brazil, China, Taiwan and India. BCI is listed on the Montreal and Toronto Stock Exchanges (symbol "BI") and on the Nasdaq National Market (symbol "BCICF").

WorldTel is a project development company formed under the auspices of the ITU of the United Nations. Its objective is providing and arranging private equity capital for basic telecommunications projects in the emerging economies of Asia, Latin America and Africa. WorldTel's shareholders include GE Capital Corp., American International Group ("AIG"), International Investment Group of Kuwait, Natwest Securities, and other private investors in Europe and Asia. Investors brought into the transaction by WorldTel include the AIG-GE Capital Latin American Infrastructure Fund L.P.; a private equity fund managed by Emerging Markets Partnership; funds advised by The Chatterjee Group, an affiliate of Soros Fund Management LLC; and the Metropolitan Life Insurance Company.

CONTACT: Telinor

Reynaldo Villareal, 011/528-363-5001

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Bell Canada International

Peter Burn, 514/ 392-2264

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WorldTel

Robert Jenks, [phone]

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The Blackstone Group

Jose Knoell, 212/ 754-7364