Bell Canada To Solidify Strategic Alliance With Aliant.

MONTREAL--(BUSINESS WIRE)--Oct. 4, 1999--

Bell to offer $27 per share to increase ownership position

Bell Canada today announced that it intends to make a cash offer to purchase up to 15.8 million of the outstanding common shares of Aliant (TSE:AIT) at a price of $27 per share.

"Aliant's management has shown tremendous leadership in creating a growth company in the Atlantic region," said Jean C. Monty, Chairman and Chief Executive Officer of Bell Canada. "Bell and Aliant are long-term partners and an increased ownership position would further solidify the strategic alliance and commercial agreements we entered into in May, 1999. This transaction will benefit both Aliant and Bell Canada as they each pursue their respective growth strategies while reinforcing shareholder value. We look forward to existing Aliant directors continuing to serve the Company."

The offer has been approved by the Board of Directors of Bell Canada and will be subject to customary conditions, including receipt of all required regulatory approvals, as well as Bell Canada achieving an ownership position of no less than 51% of Aliant's common shares. Bell Canada currently owns approximately 41% of the common shares of Aliant.

In accordance with applicable securities regulatory requirements, it is expected the Aliant Board will establish a committee of independent directors which will supervise a valuation process, review the terms and conditions of the Bell Canada offer and report on these to the Board of Directors of Aliant.

Bell Canada will mail its offer to all registered shareholders of Aliant as soon as possible after the valuation has been completed and the independent committee has reported to the Board of Aliant. Bell Canada expects to complete this transaction by December 31, 1999. Once the transaction is completed, Bell Canada will own between 51% and 53%, on a fully diluted basis, of Aliant's common shares and will be in a position to fully consolidate Aliant's financial results.

Bell Canada will finance the purchase through a combination of debt and equity to be issued to its shareholders, BCE Inc. and Ameritech Corporation.

Bell Canada provides a full range of communications services to customers, including wired and wireless local and long distance telephone services, Internet access, high-speed data services and directories. Bell Canada, its telecom partners and subsidiaries provide services through 13.6 million access lines, including 11 million in Ontario and Quebec. Bell Canada also serves more than 2.1 million wireless customers through Bell Mobility. Bell Canada is 80% owned by BCE Inc. of Montreal and 20% owned by Ameritech Corporation of Chicago, Illinois. Bell Canada's Internet Web site is located at http://www.bell.ca. News releases, speeches and background information are in the Newsroom. Our e-mail address is [e-mail].