TORONTO,Jan. 19 2004 --Bell Canada and Cisco Systems Canada
today announced that they will team up to accelerate the creation,
commercialization and delivery of a comprehensive suite of IP services that
will enable large and medium-sized business customers to reap the full
benefits of an integrated data, voice and video IP-based network. The
strategic alliance is a key component of Bell's strategy to become a world-
leading Internet Protocol (IP) based communications company.
    As a result of this alliance, Bell will build on its network capability
and align its investments towards a single IP/MPLS service delivery network
with a national footprint. This next-generation IP network will provide the
foundation for the delivery of an integrated suite of IP data, voice and video
services to business customers via converged network architectures.

    Bell and Cisco intend, under this alliance, to work together across a
number of initiatives, including:

    - Significantly expanding Bell Canada's national footprint on a Cisco-
      based IP/MPLS core network infrastructure that will become the primary
      service delivery platform for integrated data, voice and video business
      applications.

    - Jointly creating and commercializing to new and existing business
      customers an integrated suite of simplified managed network services
      and value-added solutions, including virtual private networking (VPN),
      IP telephony, security and wireless LAN.

    - Launching a program to help large and medium-sized business customers
      to consolidate and migrate their existing communications networks
      (including ATM and Frame Relay) onto Bell's Cisco-based IP/MPLS
      network.

    "This agreement is one of the major steps in our transformation into
Canada's leading IP company", said Michael Sabia, Chief Executive Officer of
Bell Canada. "As we are moving rapidly to set the standard in the IP world, we
will provide our customers with the simplicity, power and efficiency of a more
scalable, manageable and secure networking communications environment."
    "There is widespread recognition among world-class service providers that
IP-based networks are the best - and arguably the only - way to achieve the
operating efficiencies and service flexibility needed to compete in today's
marketplace," said John Chambers, President and CEO of Cisco Systems. "With
this alliance, Bell and Cisco are leading the way in the delivery of value-
added IP-based solutions to Canadian businesses."
    Based on this strategic business understanding, Bell Canada expects to
make a significant investment in Cisco core infrastructure technology
equipment and related services over the next three years. Cisco is supporting
these investments with significant financial, marketing, and sales support
programs to drive and accelerate the successful transformation, migration and
commercialization of IP-based and IP-related services at Bell Canada.

    IP simplifies business communications
    -------------------------------------
    Bell's IP-based network infrastructure will provide businesses with a
scalable, secure foundation to run productivity enhancing applications. Bell
Canada intends to dramatically expand its national IP core network
infrastructure in order to provide the platform for new converged
communications services that will allow large and medium-sized business
customers to develop new compelling business data, video, voice, wireless and
security solutions.
    "This strategic relationship is a significant move towards building out
the infrastructure for our Enterprise customers, many of whom are national
companies that will quickly benefit from the integration of devices and
applications, simpler provisioning and management of telecommunications
infrastructure, greater self service capabilities and multimedia Internet IP-
based communications", said Isabelle Courville, President - Enterprise Group,
Bell Canada.
    "We are at the stage in the evolution of IP networks in Canada where it
is now possible to seamlessly deliver a simplified suite of managed IP
services to Canadian businesses", said Terry Walsh, President of Cisco Systems
Canada. "By combining our respective strengths, Bell and Cisco can help our
customers drive their productivity and competitive advantage through IP
communications." In entering into this alliance, Bell and Cisco will continue
to have discussions towards definitive agreements in furtherance of their
business relationship. It is intended that the initiatives to be implemented
under the alliance mandate will be addressed by the end of 2006.

    MEDIA CALL
    ----------
    Bell Canada and Cisco Systems Canada will hold a teleconference for the
media to discuss this strategic alliance on January 19, 2004, at 10:15 A.M.
(Eastern). Isabelle Courville and Terry Walsh will be present. Interested
participants are asked to dial 1 888-575-8232 just prior to 10:15 A.M.
(Eastern). If you are disconnected from the call, simply redial. If you need
assistance during the teleconference, you can reach the Operator by pressing
"0".

    About Bell Canada
    -----------------
    Bell Canada, Canada's national leader in communications, provides
connectivity to residential and business customers through wired and wireless
voice and data communications, local and long distance phone services, high
speed and wireless Internet access, IP-broadband services, e-business
solutions and satellite television services. Bell Canada is wholly owned by
BCE Inc. (NYSE/TSX: BCE). For more information please visit www.bell.ca .

    About Cisco Systems Canada
    --------------------------
    Cisco Systems Canada Co. has offices across Canada dedicated to customer
support, sales, and service. In addition, Cisco Systems has a significant
research and development centre in Ottawa, Ontario. Additional information
about Cisco Systems Canada is available at www.cisco.com/ca .

    About Cisco Systems
    -------------------
    Cisco Systems Inc. (NASDAQ: CSCO) is a worldwide leader in networking for
the Internet. News and information are available at http://www.cisco.com .

    CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

    Certain statements made in this press release by Bell Canada are forward-
    looking and are subject to important risks, uncertainties and
    assumptions. 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 materially from current expectations
    include, among other things: the ability to anticipate, and respond to,
    changes in technology and industry standards and migrate to and deploy
    new technologies and rapidly offer new products and services (such as an
    integrated suite of IP data, voice and video services) and achieve market
    acceptance thereof; the level of demand by the business sector, and
    prices, for products and services; general economic and market
    conditions; the impact of rapid technological and market changes; the
    uncertainties of the Internet; the availability and cost of capital
    required to fund capital expenditures; the impact of adverse changes in
    laws or regulations or of adverse regulatory initiatives or proceedings,
    including further decisions by the CRTC affecting our ability to compete
    effectively with current and new competitors; the intensity of
    competitive activity from both traditional and new competitors, including
    cross-platform competition, which is anticipated to intensify following
    the introduction of new technologies such as Voice over Internet Protocol
    (VoIP), and its resulting impact on the ability to retain existing, and
    attract new, customers, and on pricing strategies and financial results;
    and the ability of our plans and strategies to produce the expected
    benefits and growth prospects. For additional information with respect to
    certain of these and other factors, refer to the Safe Harbor Notice
    Concerning Forward-Looking Statements dated December 17, 2003 filed by
    BCE Inc., the parent company of Bell Canada, with the United States
    Securities and Exchange Commission, under Form 6-K, and with the Canadian
    securities regulatory authorities. Bell Canada disclaims any intention
    and assumes no obligation to update or revise any forward-looking
    statements, whether as a result of new information, future events or
    otherwise.



For further information: Bell Canada: Don Blair, Bell Canada Media
Relations, (416) 581-3311, 1 888 482-0809, don.blair@bell.ca;
George
Walker, BCE Investor Relations, (514) 870-2488; Cisco Systems : Willa Black,
Public Relations, Cisco Systems Canada, (416) 306-7732, wblack@cisco.com;
Gareth Pettigrew, Public Relations, Strategic Ampersand, (416) 961-5595,
gareth@stratamp.com; Roberta De Tata, Investor Relations,
Cisco Systems,
(408) 527-6388, rdetata@cisco.com