Bell Nordiq Income Fund Reports Quarterly Results and Announces Increase in Distributions


	Bell Nordiq Income Fund Reports Quarterly Results and Announces Increase in Distributions Stock Symbol: TSX - BNQ.UN - Télébec and NorthernTel: Q4 2002/2001 - Revenues up 2.6% - EBITDA up 6.4% - Monthly cash distributions increased by 7% to $0.08/unit MONTREAL,Jan. 28 2003 --Bell Nordiq Income Fund (the "Fund") today announced its results for the quarter ended December 31, 2002. During this period, the Fund reported net earnings of $7.3 million and declared cash distributions of $7.3 million ($0.225 per unit) to Unitholders. "We had a good quarter which topped off a successful first year for the Fund and its Unitholders. This has been a year of major achievements, highlighted by the successful launch of the Fund and the completion of the integration of Télébec and NorthernTel," commented Isabelle Courville, President and Chief Executive Officer, Bell Nordiq Group. FINANCIAL HIGHLIGHTS For the 92 days (Q4) and 253 days (YTD) ended December 31, 2002 (In thousands of dollars except distributions per Fund unit and Fund units outstanding) (Note: as the Fund commenced operations in April 2002, there are no prior year comparisons.) << ________________________________ ______________________________ Bell Nordiq Income Fund Télébec & NorthernTel _______________ _______________ Q4 YTD Q4 YTD ________________________________ ______________________________ Net Earnings 7,329 20,226 Operating Revenues 86,808 227,937 Distributions Total Operating Declared 7,336 20,226 Expenses 66,863 160,544 Net Earnings 15,997 55,486 Distributions - Available Paid & Payable Distributable per Fund unit 0.225 0.621 Cash 15,596 62,066 Distributions - Paid & Fund Units Payable 20,066 55,399 Outstanding Bell Nordiq (000)() 32,605 32,547 Group 12,730 35,173 Fund 7,336 20,226 Reserve (4,470) 6,667 () Weighted average ________________________________ ______________________________ >> TELEBEC AND NORTHERNTEL ----------------------- QUARTER ENDED DECEMBER 31, 2002 For the quarter, Télébec and NorthernTel reported operating revenues of $86.8 million, net earnings of $16.0 million and available distributable cash of $15.6 million. As anticipated, cash distributions paid and payable were $20.1 million, consisting of $7.3 million to the Fund and $12.7 million to Bell Nordiq Group. During the quarter, the reserve declined by $4.5 million due to higher operating and capital expenditures, which are typically larger in the fourth quarter. "I am pleased by the continued strength in our key growth areas, Internet and Wireless," said Isabelle Courville. High speed and wireless subscribers stood at 15.6 thousand and 48.5 thousand respectively at quarter end, up 17% and 5% over Q3 of this year. Compared to Q4 2001 for the old operating entities, Télébec Ltée and NorthernTel Limited, high speed and wireless subscribers were up 53% and 21% respectively. During the quarter, NorthernTel captured additional long distance market share in its territory, coming in at 34%. NorthernTel entered the long distance market in January 2002. YEAR-END RESULTS (APRIL 23 - DECEMBER 31, 2002) For the 253 days ending December 31, 2002, Télébec and NorthernTel generated revenues of $227.9 million, net earnings of $55.5 million and available distributable cash of $62.1 million. Cash distributions paid and payable were $55.4 million, in line with expectations. As anticipated, annual capital expenditures were under the original guidance of $51.0 million, coming in at $45.7 million ($36.0 million for 253 days), while the reserve was $6.7 million at year-end. Compared to 2001 for the old operating entities, Télébec Ltée and NorthernTel Limited, annual revenues increased by 1.4% and earnings before interest, taxes, depreciation and amortization (EBITDA) by 5.2%. "The company is well positioned for 2003. Results for the core operations are solid, with a strong balance sheet, including over $29 million in cash. Available distributable cash has exceeded expectations and we believe higher levels are sustainable," added Isabelle Courville. Due to this continued success, monthly cash distributions will be increased to $0.08 ($0.96 annualized) per Fund unit, commencing with the distribution to Unitholders of record at the close of business on February 28, 2003. The increase of 7% is in line with management's intention of increasing distributions to our Unitholders over time. 2003 GUIDANCE ------------- The following estimates and anticipated amounts are provided for guidance purposes only. << TELEBEC AND NORTHERNTEL (unless otherwise indicated) _________________________________________________________________________ 2003 Targets _________________________________________________________________________ Revenue $327 - $330 million EBITDA $164 - $166 million Capital Expenditures $48 - $51 million Cash Distributions/unit (The Fund) $0.08/month(1) High Speed Internet subscribers 20 thousand Wireless subscribers 53 thousand NorthernTel Long Distance Market Share 40% _____________________________ (1)Commencing with the distribution to Unitholders of record on February 28, 2003 >> "During 2003, we will continue to focus on growing the main drivers of our business, including Internet and wireless. We will also concentrate our efforts on simplifying the customer experience and pursuing additional operating and capital efficiencies," said Isabelle Courville. ABOUT BELL NORDIQ INCOME FUND Bell Nordiq Income Fund is an unincorporated limited purpose trust created to indirectly acquire and hold the outstanding partnership units of Télébec, Limited Partnership, and NorthernTel, Limited Partnership. Currently, the Fund indirectly holds a 36.6% interest in both partnerships, while Bell Canada, through Bell Nordiq Group Inc., holds the remaining 63.4%. More information on the Bell Nordiq Income Fund may be found at www.bellnordiq.ca ABOUT BELL NORDIQ GROUP INC. Bell Nordiq Group Inc. holds a 63.4% interest in and is the general partner of both Télébec, Limited Partnership, and NorthernTel, Limited Partnership. The company manages the business and affairs of each partnership. Bell Canada owns 100% of the Bell Nordiq Group Inc. ABOUT TELEBEC, LIMITED PARTNERSHIP With the help of its 820 employees, Télébec, Limited Partnership (Télébec), and its subsidiaries provide innovative integrated telecommunications solutions to customers in 300 municipalities across Québec. Its territory, which spans 750,000 square kilometres, extends North as far as James Bay, South to Venise-en-Québec near the U.S. border, West to Saint-André- Avellin in the Outaouais, and East to the Iles-de-la-Madeleine. For more information about Télébec and its subsidiaries, visit www.télébec.com ABOUT NORTHERNTEL, LIMITED PARTNERSHIP With the help of its 247 employees, NorthernTel, Limited Partnership (NorthernTel) provides innovative integrated telecommunications solutions to customers across Northeastern Ontario. Its territory, which spans 83,000 square kilometres, stretches from Calstock to Latchford and from Virginiatown to Timmins. For more information about NorthernTel, visit www.northerntel.ca CALL WITH FINANCIAL ANALYSTS AND MEDIA Bell Nordiq will hold a conference call to discuss its results on Tuesday, January 28, 2003 at 4:00 PM Eastern Time. Media representatives are invited to listen in on the call and will have the opportunity to ask questions following the analyst question period. To access the conference call, please dial (416) 405-9328 in Toronto or (800) 387?6216 outside of Toronto. For those unable to participate on the live call, a replay facility will be available between 7:00 PM on Tuesday January 28, 2003 and 11:59 PM on Tuesday February 4, 2003. To access the replay facility please dial (416) 695- 5800 in Toronto or (800) 408-3053 outside of Toronto and enter access code 1351249. CAUTION CONCERNING FORWARD-LOOKING STATEMENTS Certain statements in this news release, including our 2003 Guidance, may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Fund, Télébec, Limited Partnership, or NorthernTel, Limited Partnership, to be materially different from any future results, performance or achievements expressed or implied by such forward- looking statements. When used in this news release, such statements use words such as "may", "will", "estimate", "anticipate", "expect" and other similar terminology. These risks, uncertainties and other factors include, but are not limited to: demand for services; regulatory environment; competition; technology; economic fluctuations; dependence on Bell Nordiq Group Inc. and potential conflicts of interest; nature of units; income tax matters and the fact that cash distributions are not guaranteed and will fluctuate with the performance of Télébec, Limited Partnership's and NorthernTel, Limited Partnership's businesses. The forward-looking statements contained in this news release reflect current expectations regarding future events and operating performance and speak only as of the date of this news release. Enclosure: Financial and operating information - The financial results are presently available at this Internet address: http://www.bellnordiq.ca/en/news/releases/ -30- For further information: Ginette Bouchard, Bell Nordiq Communications, (514) 493-5503 or John Ripplinger, Bell Nordiq Investor Relations, (514) 493-5531

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