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October 27, 1999

BCE Earnings Increase 23%

Montréal (Québec), October 27, 1999 - BCE today announced third quarter results reflecting revenue growth from all its operations and a 23% increase in unaudited baseline earnings as a result of continued strong performance at Nortel Networks. BCE reported third quarter unaudited baseline earnings of $0.74 per common share ($474 million) compared with $0.60 per common share ($380 million) for the same period in 1998. For the nine months ended September 30, 1999, unaudited baseline earnings were up 21% to $1.99 per common share. ($1.3 billion).

"During the quarter, we continued to move on targeted initiatives," said Jean C. Monty, President and Chief Executive Officer. "Bell Canada, in tandem with its new partner SBC/Ameritech, should benefit from the full ownership of BCE Mobile and from the proposed offer to increase Bell Canada's interest in Aliant, the fast-growing communications company serving the Atlantic region; BCE Emergis is focussing on e-commerce and announced the acquisitions of SNS/Assure and Assure Health, companies providing electronic commerce solutions to the financial services and health insurance sectors; CGI's revenue was fueled by a combination of internal growth and acquisitions; Bell ExpressVu continued strong growth in subscribers following the announcement of its new 200 channel line-up."

Total revenue (excluding Nortel Networks) increased 5% to $3.6 billion for the third quarter of 1999. For the nine-month period, total revenue grew 6% to $10.5 billion.

Reported net earnings were $0.19 per common share ($123 million) for the third quarter of 1999 compared with net earnings of $5.83 per common share ($3.7 billion) for the same period in 1998. Third quarter earnings included net special charges of $351 million mainly attributable to acquisition related costs at Nortel. Reported net earnings in the third quarter of 1998 included net gains of $3.3 billion mostly related to the dilution gain on the reduction of BCE's ownership in Nortel Networks.

Highlights of the quarter (third quarter 1999 vs. third quarter 1998):

• Bell's revenue from data services grew 21% and accounts for 19% of total revenue;
• Bell Mobility's gross activations were 163,000, an increase of 42%;
• BCE Emergis' revenue was up 82% to $49 million;
• CGI's revenue was up 21% to $394 million;
• Bell ExpressVu subscribers grew 156% to 304,000.

Results by Group

BCE's activities are organized around five business groups: Bell Canada, CGI and BCE Emergis, BCE Media, Nortel Networks and Bell Canada International. Bell Canada includes Bell Mobility, Bell Nexxia, Bell ActiMedia, as well as Bell Canada's interests in Aliant, Manitoba Telecom Services (MTS), Teleglobe and other Canadian telcos. The BCE Media group is comprised of Bell ExpressVu, Telesat and other media interests.

Bell Canada

For the third quarter, operating revenue for Bell Canada was up 3% to $3.2 billion. Revenue from local and access services was flat at $1.4 billion. Revenue from long distance and network services declined by 5% to $982 million reflecting the decline in average long distance prices. Revenue from wireless services was up 3% to $282 million for the same period due to growth in the number of subscribers partly offset by lower average revenue per subscriber. Total number of Bell Mobility cellular and PCS subscribers was up 25% to 1.7 million at the end of the third quarter, compared with the same period last year. Terminal sales, directory and other revenues grew by 32% to $556 million due mainly to increased revenue from Bell Nexxia.

Cash operating expenses were up 4% to $1.8 billion due mainly to increased expenses associated with increased revenue. Earnings before interest, taxes, depreciation and amortization (EBITDA) grew 1% to $1.4 billion.

Bell Canada's baseline earnings applicable to common shares increased 3% to $349 million in the third quarter of 1999. Bell Canada's baseline contribution to BCE's earnings was $278 million for the same period, reflecting BCE's 80% ownership.

CGI and BCE Emergis

BCE recorded a loss of $2 million for this group in the third quarter of 1999. BCE's $9 million share of BCE Emergis' loss in the third quarter of 1999 was mainly attributable to amortization of goodwill.

CGI's contribution to BCE was $7 million in the third quarter and reached $23 million on a year to date basis. CGI now has a revenue run-rate of approximately $1.6 billion and an order backlog of more than $7.5 billion.

BCE Media

In the third quarter of 1999, BCE's share of the group's loss was $17 million. In the same period, BCE Media recorded a $62 million charge, not included in baseline earnings, related to the write-off of its investment in SkyView. In the third quarter of 1998, BCE's share of the group's loss was $19 million. Revenue for BCE Media reached $121 million compared with $60 million last year mainly due to revenue growth at Bell ExpressVu, Telesat and in other media interests.

Nortel Networks

Nortel Networks' contribution to BCE's baseline earnings was $220 million in the third quarter of 1999 up 65% compared with the third quarter of 1998, driven primarily by revenue growth. Nortel Networks' performance was attributable mainly to increased revenue in its Carrier segment driven by higher sales of optical networks and high speed access solutions. Revenue from the Enterprise segment continued to increase substantially in the quarter primarily as a result of higher enterprise data revenue due to the Bay Networks merger.

BCI

BCE's share of BCI's loss was $104 million in the third quarter of 1999, compared with a loss of $53 million for the same period in 1998. The increased loss was mainly attributable to the impact of currency devaluation, the economic downturn in Colombia and the fact that BCI now accounts for 100% of the losses pertaining to its Colombian cellular company, Comcel. BCI's revenue for the third quarter of 1999 was up 2% compared with the third quarter of 1998 reflecting strong growth in Asian Pacific operations, partly offset by the economic conditions in Colombia.

BCE is Canada's largest communications company. Through its operations in communications services, BCE provides residence and business customers in Canada with wireline and wireless communications products and applications, satellite communications and direct-to-home television services, systems integration expertise, electronic commerce solutions, Internet access and high-speed data services, and directories. Abroad, through Bell Canada International's investee companies, BCE provides communications services to more than 5 million customers in Asia and Latin America. BCE also has an extensive international presence through its ownership in Nortel Networks, a global leader in the design and building of communications networks, as well as through Teleglobe, an international telecommunications carrier. BCE shares are listed in Canada, the United States and Europe.

Note:
Certain statements made in this news release, which describe BCE's intentions, expectations or predictions, are forward-looking and are subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the impact of rapid technological and market change; general industry and market conditions and growth rates; international growth and global economic conditions, particularly in emerging markets and including interest rates and currency exchange rate fluctuations; unanticipated impact of Year 2000 issues; and the impact of consolidations in the telecommunications industry. For additional information with respect to certain of these and other factors, see the reports on Forms 6-K and 40-F filed by BCE with the United States Securities and Exchange Commission. BCE disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Notes to the Condensed Consolidated Financial Statements

Note 1. Accounting policies
For a full description of accounting policies, refer to BCE's 1998 Annual Report. All amounts are in Canadian dollars unless otherwise indicated. Certain previously reported amounts have been restated to conform with the current presentation.

In the fourth quarter of 1998, Nortel Networks Corporation (Nortel Networks) revised its valuation methodology of acquired in-process research and development in light of guidance provided by the United States Securities and Exchange Commission. For a full description, reference is made to BCE's 1998 Annual Report. The net effect, on BCE's Consolidated Statement of Operations, for the three and nine months ended September 30, 1998, was an increase of $77 million and $145 million, respectively, in net earnings applicable to common shares.

The Consolidated Statement of Cash Flows for the nine months ended September 30, 1998, has been restated to reflect the new requirements under Section 1540 of the Canadian Institute of Chartered Accountants Handbook, "Cash Flow Statements". For purposes of the cash flow statement, all highly liquid investments with short-term maturities are classified as cash and cash equivalents.

Note 2. Strategic partnership with Ameritech Corporation (Ameritech)
On June 1, 1999, BCE and Ameritech finalized their strategic partnership announced on March 24, 1999. Under the terms of the partnership, Ameritech acquired an indirect 20% minority interest in Bell Canada for $5.1 billion. Bell Canada has been reorganized to hold certain telecommunications assets previously held by BCE. Bell Canada acquired, on May 31, 1999, at net book value from BCE, BCE's indirect interests in BCE Mobile Communications Inc. (BCE Mobile), Teleglobe Inc., Aliant Inc. (Aliant), (the company under which, on May 31, 1999, Bruncor Inc., Maritime Telegraph and Telephone Company, Limited, and NewTel Enterprises Limited were combined; Bell Canada's ownership in Aliant is approximately 42%), BCE's interests in three other regional Canadian telecommunications companies and other investments. Furthermore, Bell Canada transferred to BCE, at net book value, its investments in BCE Emergis Inc. and CGI Group Inc.

Note 3. Restructuring and other charges
In 1999, BCE recorded a pre-tax charge of $377 million ($187 million after tax and non-controlling interest) representing restructuring and other charges of $163 million and $214 million, respectively. The restructuring charges, mainly employee severance and directly related incremental costs, result principally from the decision to outsource a portion of the Operator Services group, the windup of Stentor Canadian Network Management and cost rationalization within other operating groups. These restructuring programs are expected to be substantially completed by the second quarter of 2000. Other charges relate mainly to the write-down of the Iridium and SkyView Media Group, Inc. (SkyView) investments. The $92 million recorded in the third quarter related to the SkyView investment.

Note 4. Gain on reduction of ownership in subsidiary and associated companies
In the second quarter of 1999, BCE recognized a gain of $4.2 billion on the reduction of its ownership in Bell Canada from 100% to 80% (see Note 2). In addition, in the first nine months of 1999, BCE recognized a gain of $257 million on the reduction of its ownership in Nortel Networks, from 40.4% to 39.6%, following Nortel Networks' acquisition of Shasta Networks, Inc. and the issuance of shares by Nortel Networks as a result of its stock option plan.

Note 5. Other income
Included in other income for 1999 is a pre-tax gain of $309 million relating to the sale of BCE's interest, in April 1999, in Jones Intercable, Inc. for net cash proceeds of US $508 million.

Note 6. Subsequent event
On October 22,1999, the shareholders of BCE Mobile approved the agreement to merge BCE Mobile with several indirect wholly-owned subsidiaries of Bell Canada. The minority shareholders of BCE Mobile received a total consideration of approximately $1.6 billion in exchange for their shares. Bell Canada's ownership in BCE Mobile is now 100%