MONTREAL, CANADA-- 

* Holds 66.8% interest in Brazilian broadband cable company 
following loan conversion; 

* Extends new Cdn$25 million short-term loan facility to Canbras. 

Bell Canada International Inc. ("BCI") today announced that it has
increased its stake in Canbras Communications Corp. (TSE: CBC) 
("Canbras") from 54.5% to 66.8% of the total outstanding shares 
through the conversion of a loan in the amount of Cdn$79.5 million
(principal plus accrued interest) into 7,118,776 common shares of 
Canbras at a price of Cdn$11.17 per share.  Concurrent with the 
closing of the loan conversion, BCI also extended a new Cdn$25 
million short-term, subordinated convertible loan facility to 
Canbras.  These transactions were approved yesterday by Canbras' 
minority shareholders following the recommendation of a Special 
Committee of the Canbras board. 

Yesterday, BCI announced that it had entered into an agreement 
with Telefonos de Mexico S.A. de C.V. ("Telmex") and Texas-based 
SBC Communications Inc. ("SBC") to form a facilities-based 
communications company with an initial capitalization of 
approximately US$4 billion which will serve as the three 
companies' principal vehicle for expansion in Latin America. 

Under the agreement reached among BCI, Telmex and SBC, which is 
expected to close in the fourth quarter of this year, BCI and 
Telmex will each hold a 44.3% interest in the new company, with 
SBC holding 11.4%.  BCI's interest in Canbras will be part of 
BCI's contribution to the new venture. 

In announcing BCI's increased equity stake in Canbras, Louis 
Tanguay, President and CEO of BCI stated, "Canbras holds the 
potential to become a broadband player of scale and scope in the 
State of Sao Paulo - the economic heartland of Brazil.  Already, 
Canbras provides cable television, high speed internet access and 
data transmission services over its broadband networks in Greater 
Sao Paulo and has recently launched a B2B Web portal to serve 
small and medium-sized enterprises.  Canbras continues to explore 
expansion opportunities and establish a two-way network in all its
Sao Paulo area licenses which will enable the company to provide a
range of telecommunications services once the Brazilian telecom 
market is fully liberalized." 

BCI owns, develops and operates advanced communications companies 
in markets outside Canada, with a focus on Latin America.  A 
subsidiary of BCE Inc., Canada's largest communications company, 
BCI's shares are listed on the Toronto Stock Exchange under the 
symbol BI and on the NASDAQ National Market under the symbol 
BCICF.  Visit our Web site at www.bci.ca 

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FOR FURTHER INFORMATION PLEASE CONTACT:
Bell Canada International Inc.
Peter Burn (Media Enquiries)
Vice-President, Corporate Affairs
(514) 392-2357
peter.burn@bci.ca
or
Bell Canada International Inc.
Brian Quick (Investor Enquiries)
Vice-President, Finance
(514) 392-2369
brian.quick@bci.ca