(All figures are in Cdn$, unless otherwise indicated)

MONTREAL,Dec. 17 2003 --Bell Canada Enterprises (NYSE/TSX: BCE)
President and Chief Executive Officer Michael Sabia outlined today the
company's strategy to become a world-leading Internet Protocol (IP) based
communications company. Mr. Sabia was speaking in Toronto, Ontario at the
company's annual presentation to the financial community.
    Mr. Sabia said Bell clearly sees its environment as "Not Telecom as
Usual", and is determined to lead change in the industry, not merely adapt to
it. Mr. Sabia said Bell will meet head-on the opportunity to set the industry
standard in the IP World and bring all of its resources into play to capture
the full potential of IP based communications.
    "It's clear the future for the industry is IP," said Mr. Sabia. "It's
also clear that we are equipped like no other to lead. We have the people, the
networks, the technical and marketing expertise, the financial stability and a
vast customer base to ensure that Canadians will be among the first to access
the emerging services of our IP future. The company is solidly engaged, and we
have the plans and the proven ability to execute to support our determination
to compete and win in an IP World."
    Bell's overall objective is to migrate 100 per cent of its traffic onto a
national IP backbone network within three years, with 90 per cent of its
customers having access to a full suite of value-added IP services. IP based
communications will provide increased value to Bell's customers through inter-
operability, simpler provisioning, greater self service and multimedia
Internet. It will also provide the company with significant opportunities to
reduce costs in the future.
    "We made significant progress in 2003." said Mr. Sabia. "Progress that
laid the foundation, as we aggressively build a new chapter in Bell Canada's
history. The three distinct business units that we formed increased the speed
with which we serve our customers and bring innovative solutions to the
market."
    "Going forward, into 2004 and beyond, Bell will continue to be at the
forefront of meeting customers' changing communications needs, which will be
defined by solutions, not just products," continued Mr. Sabia. "Bell Canada
will focus on innovation, simplicity and service. Through increased
efficiency, the company will build a competitive cost structure for an IP
World."
    Mr. Sabia said the changes under way are significant and the benefits of
those changes will not be felt immediately. "The impact of what we are working
towards will not be seen overnight," he said, "but we're convinced we are
moving the company in the right direction."

    Serving our Customers

    "Our integrated business plan will hone-in on the company's strengths in
service and brand equity. We are determined to become an agile company in an
increasingly competitive marketplace and to further grow our consumer and
business segments in 2004," said Mr. Sabia.
    "In the consumer market, Bell is aiming to 'win' the broadband home by
harnessing the 'power of One': one company, one brand, one point of contact,"
said Pierre Blouin, Group President, Consumer Markets, Bell Canada. "Our
detailed plan includes the following strategic imperatives:

    -    By the end of 2005 we intend to double the number of households that
         use three or four of our key services and we'll also reduce in-store
         activation times by more than 50 per cent
    -    We will continue our focus on simplicity and service through
         initiatives such as a unified marketing strategy for all consumer
         products and services, attractive bundles and one stop shopping
    -    We will build on our innovation and growth momentum by expanding our
         DSL footprint and delivering on Push-to-Talk wireless handsets, MSN-
         Sympatico next-generation tools
    -    We will launch a consumer VOIP market trial in early 2004, and
    -    We will better bring the best television service to Canadians. This
         includes enhancing the ExpressVu value proposition, progressing with
         IPTV trials, and further expanding video to MDU's."

    "For small and medium businesses, we will become their information
technology advisor," said Karen Sheriff, President, Small and Medium Business,
Bell Canada. "Over the next two years, our objectives are to double customers
with two or more services and to cut in half the time it takes to serve our
customers, with initiatives such as:
    -    Improving customer service through faster response times, faster
         installation and faster problem resolution
    -    Moving small and medium business into new technologies such as VoIP
         and WiFi
    -    Increasing full-suite solutions and the speed for customer
         responses, installations and resolutions, and
    -    Optimizing our sales force to enhance our coverage and selling
         time."

    "With Enterprise, we'll focus on transforming the business from providing
connectivity to delivering value-added services to customers," said Isabelle
Courville, President, Enterprise Business, Bell Canada. "Our mid-term goals
include:
    -    Delivering value-added services to at least 80 per cent of our
         customers by 2005
    -    The development of an IP migration plan for each of our enterprise
         accounts in 2004, and
    -    Improving billing and customer service processes."

    Mr. Sabia also said Bell will make its national reach a priority by
taking full ownership of Bell West and intensifying its focus in the
attractive Western Canadian market. Bell Canada will further cooperate with
Aliant to improve synergies for both companies.

    Annual Presentation to Financial Community

    Mr. Sabia will be joined today by other BCE executives for the company's
annual presentation to the financial community. The event is being webcast
live on the BCE site: www.bce.ca .
    At the conference, Mr. Sabia and other executives will review the
company's plans and priorities for the coming year. BCE's and Bell Canada's
Chief Financial Officer, Siim Vanaselja will present consolidated guidance for
full year 2004 as follows:
    -    Revenue growth comparable to 2003 growth
    -    Mid-to-high single digit growth in earnings per share (before net
         investment gains/losses, impairment or restructuring charges)
    -    Free cash flow(1) (cash from operating activities less capital
         expenditures, total dividends and other investing activities) of
         approximately $1 billion, mainly from recurring sources
    -    Bell Canada capital intensity (capital expenditures as a percentage
         of revenues) of 17% to 18%
    -    Wireless subscriber growth outperforming the projected market growth
         rate of around 8%
    -    DSL net additions comparable to those achieved in 2003, and
    -    DTH subscriber growth of mid-to-high single digit.

    Dividend Policy

    The BCE Board of Directors will continue to assess the current dividend
throughout the coming year. Any possible future increases would be balanced
against maintaining the company's flexibility for investment in operations and
continued debt reduction.

    Full Ownership of Bell West

    Bell Canada expects to take full control of Bell West Inc. in 2004. It
will purchase the 40% now held by Manitoba Telecom Services. MTS confirmed
today that subject to the approval of its Board of Directors, it intends to
exercise its put option in February 2004. The amount payable is due 180 days
after MTS notifies Bell of its decision to exercise its option and is
estimated to be $650 million. Bell Canada intends to use internally generated
funds to pay for this acquisition. Bell currently intends to maintain its
approximate 22% ownership level in MTS and will maintain its operating
alliance agreements with MTS.

    Confirmation of Financial Guidance for 2003

    The company reiterated its expectation to meet previously stated full
year 2003 guidance(2), adjusted for the treatment of Stratos Global as a
discontinued operation (due to the expected closing of the sale of Stratos  by
Aliant on December 29, 2003):

    -    Revenue of approximately $19.2 billion
    -    Earnings per share (before investment gains/losses, impairment or
         restructuring charges) of approximately $1.90, which includes an
         expected $0.04 impact from the increase in the Ontario tax rate
    -    Free cash flow(3) (cash from operating activities less capital
         expenditures and total dividends) of greater than $1 billion
         including significant non-recurring components, and
    -    Bell Canada capital intensity of approximately 17%.

    Live Webcast

    BCE's 2004 Business Review conference is scheduled to commence at 8:30
a.m. Eastern time today. A webcast of the conference will also be available.
Interested investors and other individuals may participate in the conference
via the webcast from BCE's Web site at www.bce.ca . A copy of the
presentations can be downloaded from BCE's Web site. The webcast and the
presentations will also be archived on BCE's Web site.

    Media Conference

    The media can participate on a listen-only basis during the conference
for financial analysts. No cameras will be allowed in the main conference room
area. Following the conference with financial analysts, a media question and
answer session will be held.
    The media conference is expected to begin after the end of the conference
for investors, at around 1:30 PM Eastern, on Wednesday, December 17. The media
can: attend in person at the Westin Harbour Castle Convention Centre, Bay
Room, One Harbour Square, Toronto; listen to a live audio Webcast of the event
on our Web site at www.bce.ca ; or, participate via conference call
by dialing
1-888-575-8232 just prior to 1:30 PM.

    About BCE

    BCE is Canada's largest communications company. It has 25 million
customer connections through the wireline, wireless, data/Internet and
satellite services it provides, largely under the Bell brand. BCE's media
interests are held by Bell Globemedia, including CTV and The Globe and Mail.
As well, BCE has e-commerce capabilities provided under the BCE Emergis brand.
BCE shares are listed in Canada, the United States and Europe.

    CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

    Certain statements made in this press release, including, but not limited
to, financial guidance, anticipated growth in subscribers, our plans and
strategies and other statements that are not historical facts, are forward-
looking and are subject to important risks, uncertainties and assumptions. The
results or events predicted in these forward-looking statements may differ
materially from actual results or events. These statements do not reflect the
potential impact of any non-recurring items or of any dispositions,
monetizations, mergers, acquisitions, other business combinations or other
transactions that may be announced or that may occur after the date hereof.
    Other factors that could cause results or events to differ materially
from current expectations include, among other things: the ability of our
plans and strategies, based on driving innovation, simplicity and efficiency
in everything we do, to produce the expected benefits and growth prospects;
general economic and market conditions and the level of consumer confidence
and spending; 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; the ability to anticipate, and respond to, changes in technology and
industry standards and migrate to and deploy new technologies, including VoIP,
and offer new products and services rapidly and achieve market acceptance
thereof; the impact of adverse changes in laws or regulations, including tax
laws, 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 ability to manage costs, generate
productivity improvements and contain capital intensity while maintaining
quality of service; the availability and cost of capital required to implement
our financing plans and fund capital and other expenditures; our ability to
retain major customers; our ability to make strategic acquisitions resulting
in sustainable growth; the risk of low returns on pension plan assets; the
financial condition and credit risk of customers and uncertainties regarding
collectibility of receivables; stock market volatility; the availability of,
and ability to retain, key personnel; the ability to manage effectively labour
relations; and the final outcome of pending or future litigation.
    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. with the U.S. Securities and
Exchange Commission, under Form 6-K, and with the Canadian securities
commissions. The forward-looking statements contained in this press release
represent our expectations as of December 17, 2003 and, accordingly, are
subject to change after such date. However, we disclaim any intention and
assume no obligation to update any forward-looking statements, whether as a
result of new information or otherwise.
    --------------------------------------------
    (1) The term free cash flow does not have any standardized meaning
prescribed by Canadian GAAP and may not be comparable to similar measures
presented by other issuers. We define it as cash from operating activities
less capital expenditures, total dividends and other investing activities.
Free cash flow is presented on a basis that is consistent from period to
period. We consider free cash flow as an important indicator of the financial
strength and performance of our business as it demonstrates the cash available
to repay debt and reinvest in our company. Free cash flow allows us to compare
our financial performance on a consistent basis. We believe that free cash
flow is also used by certain investors and analysts in valuing a business and
its underlying assets. The most comparable Canadian GAAP financial measure is
cash from operating activities. For 2004, we expect to generate approximately
$1 billion in free cash flow. This amount reflects expected cash from
operating activities of approximately $5.5 billion less capital expenditures,
total dividends and other investing activities.
    -------------------------------------
    (2) BCE's 2003 guidance includes guidance on EBITDA. The term EBITDA
(earnings before interest, taxes, depreciation and amortization) does not have
any standardized meaning prescribed by Canadian GAAP and may not be comparable
to similar measures presented by other issuers. We define it as operating
revenues less operating expenses, which means it represents operating income
before amortization expense, net benefit plans (expense) credit and
restructuring and other charges. EBITDA is presented on a basis that is
consistent from period to period. We believe EBITDA to be an important measure
as it allows us to assess the operating performance of our ongoing businesses
without the effects of amortization expense, net benefit plans (expense)
credit and restructuring and other charges. We exclude amortization expense
and net benefit plans (expense) credit because they substantially depend on
the accounting methods and assumptions a company uses, as well as non-
operating factors such as the historical cost of capital assets and the fund
performance of a company's pension plans. We exclude restructuring and other
charges because they are transitional in nature. EBITDA allows us to compare
our operating performance on a consistent basis. We also believe that EBITDA
is used by certain investors and analysts to measure a company's ability to
service debt and to meet other payment obligations or as a valuation
measurement that is commonly used in the telecommunications industry. EBITDA
should not be confused with net cash flows from operating activities. The most
comparable Canadian GAAP earnings measure is operating income. The following
is a reconciliation of our previously stated full year 2003 guidance for
EBITDA to operating income on a consolidated basis:
    -----------------------------------------------------------------------
    <<
    EBITDA                                $7.4 billion - $7.8 billion
    -----------------------------------------------------------------------
    Less:    Amortization expense         Approximately $3.2 billion
    -----------------------------------------------------------------------
             Net benefit plans expense    Approximately $170 million
    -----------------------------------------------------------------------
    Operating income                      $4.0 billion - $4.4 billion
    -----------------------------------------------------------------------


    (3) The following is a reconciliation of our guidance for free cash flow
to cash from operating activities for the year ended December 31, 2003:
    -----------------------------------------------------------------------
    Free cash flow                        Greater than $1 billion
    -----------------------------------------------------------------------
    Add:    Capital expenditures          Approximately $3.2 billion
    -----------------------------------------------------------------------
            Total dividends               Approximately $1.3 billion
    -----------------------------------------------------------------------
    Cash from operating activities        Greater than $5.5 billion
    -----------------------------------------------------------------------
    >>



For further information: Nick Kaminaris, Communications, (514) 786-3908,
Web Site: www.bce.ca; Sophie Argiriou, Investor Relations, (514) 786-8145