- $1 billion full-service telecom company to compete more aggressively
    - Enhanced growth strategy for MTS through its participation in new Bell
      company
    - Consolidation will further strengthen Bell national presence in Alberta
      and British Columbia

       See Analyst and Media Conference details at the end of the release

CALGARY, Alberta,April 11 2002 --Manitoba Telecom Services Inc. (MTS)
and Bell Canada announced today that they will combine the interests of Bell
Intrigna and Bell Nexxia in Alberta and British Columbia to create a company
that builds on the progress made in these two provinces. The combined company
has a valuation of approximately $1 billion and will further capitalize on the
solid growth opportunities Western Canada represents for telecommunications
services.
    Legally called Bell West Inc., the company will operate under the Bell
brand and will be owned 60 per cent by Bell Canada and 40 per cent by MTS. It
will focus on businesses in Alberta and British Columbia, providing a suite of
highly advanced fibre-based data and IP services, as well as the full spectrum
of local and long distance voice services on a fully managed basis. The
company will have approximately 700 employees in Vancouver, Calgary and
Edmonton. Previously, Bell Intrigna was two-thirds owned by MTS and one-third
owned by Bell. Bell Nexxia operations in Alberta and British Columbia were 100
per cent owned by Bell Canada.
    Leading the new Bell company in the West is Randy Reynolds, the new
President and CEO, appointed effective today. Mr. Reynolds was previously
President and CEO of Bell Nexxia. John Sheridan, President of Bell Canada,
will become Chairman of the Board. Louise Villeneuve, formerly Chief Operating
Officer of Bell Intrigna, has been appointed Chief Operating Officer of the
new company and Murray Bamforth has been appointed Chief Financial Officer.
    "The adoption by the new company of Bell's network and technology
platforms as well as its product and service development engine will greatly
enhance its competitiveness in the marketplace," said John Sheridan, President
of Bell Canada. "This initiative is an integral element of our investments in
Western Canada; investments made to ensure we can serve our customers
nationally, with a diversified product offering and from a common platform.
Through Nexxia and Intrigna we have enjoyed a number of major customer wins
including the Government of Alberta, Canadian Pacific and City of Calgary.
(See backgrounder attached for additional information.) We are confident the
extension of our business relationship with MTS and the consolidation of our
Nexxia and Intrigna capabilities will rapidly propel us towards gaining
greater market share and a broader customer base."
    "The consolidation of the two companies will significantly advance our
collective operations in Western Canada," said Bill Fraser, President and CEO,
MTS. "The opportunity is extensive - the total business telecom market in
Alberta and British Columbia was $3 billion in 2001, and is projected to grow
to $4 billion in the next three years. Our new company is ideally positioned
to leverage its current market penetration and continue to grow its business."
    "With our integrated operations, we can now address our British Columbia
and Alberta business customers' needs with a full array of communications
products and services carrying the strength and service excellence of the Bell
brand," said Randy Reynolds, President and CEO of Bell West. "The improved
capabilities the new company will provide, and the consistent national network
of which it will become a part, will allow us to enhance the levels of
customer service we provide. We will pursue a smooth integration of the two
companies to create a seamless, single point of contact for our customers."
    Operating with an expanded mandate and market opportunity, the new Bell
company is expected to deliver significant growth in 2002 and beyond, based on
the successful foundations built by its predecessors. The new company's
business plan calls for 2002 total telecom revenues of $400 million and for
its market share to double within three to four years.
    Together, through this broadened market approach, MTS and Bell Canada
intend to ensure that businesses in Alberta and British Columbia enjoy the
operational and customer care excellence and breadth and depth of advanced
communications products and services offered elsewhere by Bell across Canada.
The new company will work closely with the Bell Carrier Services Group to
serve the needs of wholesale customers in all four provinces of Western
Canada.
    The new company will be headquartered in Calgary with offices in Edmonton
and Vancouver.
    As is common with such structures, the terms of the agreement also
establish appropriate liquidity provisions for Bell West's two shareholders.

    LEGAL REQUIREMENTS
    MTS and Bell have filed the necessary pre-merger notification documents
respecting this transaction with the Competition Bureau of Canada. MTS and
Bell concluded that it was necessary to close this transaction as soon as
possible upon agreeing to the specific terms of the combination in order to be
able to respond to dynamic market conditions. The immediate integration of
operations will position the combined company to move forward quickly in order
to achieve the aggressive goals contemplated in its new business plan. MTS and
Bell believe that moving forward on this expedited basis demonstrates to
existing and future customers the company's ability to continue to meet their
needs for a combined platform of products and services in a seamless and
efficient manner.

    ABOUT MTS
    MTS is Manitoba's preeminent, full-service telecommunications company.
Seamlessly blending innovative solutions and world-class technology, MTS
connects its customers to the world. Through its investment in Bell West, MTS
in partnership with Bell Canada delivers leading edge telecommunications
services, including next generation IP broadband services, to businesses in
Alberta and British Columbia. Qunara Inc., MTS's e-commerce, e-business and
Internet Data Centre subsidiary, provides business solutions across North
America. MTS's common shares are listed on The Toronto Stock Exchange (trading
symbol: MBT). Its Web site is located at www.mts.mb.ca.

    This news release contains forward-looking statements and there are risks
that actual results may differ materially from those contemplated by these
forward-looking statements. Additional information on these risks can be found
in the Company's filings with the Canadian securities commissions. MTS
disclaims any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.

    ABOUT BELL CANADA
    Bell Canada, Canada's national leader for communications in the Internet
world, provides connectivity to residential and business customers through
wired and wireless voice and data communications, high-speed and wireless
Internet access, IP-broadband services, e-business solutions, and local and
long distance phone and directory services. Bell Canada is owned by BCE Inc.
of Montréal (80%) and by SBC Communications Inc. of San Antonio, Texas (20%).
For more information please visit www.bell.ca.

    CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
    Certain statements made in this press release, including, but not limited
to, the new company's (Bell West Inc.) expected 2002 revenues and anticipated
growth in market share and generally the benefits and growth opportunities
expected to result from the creation of Bell West Inc., 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 mergers, acquisitions, other business combinations, divestitures or
other transactions that may be announced or completed after the date hereof.
    Other factors which could cause results or events to differ materially
from current expectations include, among other things: the duration and extent
of the current economic downturn; the possibility of further deterioration in
the state of the telecommunications industry; current negative trends in
market and economic conditions which impact the demand for, and costs of,
products and services; the financial condition and credit risk of customers
and uncertainties regarding collectibility of receivables; uncertainty as to
whether the new company's strategies will yield the expected benefits,
synergies and growth prospects; the intensity of competitive activity, and its
resulting impact on the ability to retain existing, and attract new,
customers, and the consequent impact on pricing strategies, revenues and
network capacity; the level of expenditures necessary to expand operations,
increase the number of customers, provide new services, build and update
networks and maintain or improve quality of service; the availability and cost
of capital required to fund capital and other expenditures; the Internet
economy growing at a slower pace than is currently anticipated; the ability to
deploy new technologies and offer new products and services rapidly and
achieve market acceptance thereof; the availability of, and ability to retain,
key personnel; the impact of adverse changes in laws or regulations or of
adverse regulatory initiatives or proceedings; the impact of the CRTC's
decision concerning the review of the price caps regime for local services
expected early in 2002; and the final outcome of pending or future litigation.
    The forward-looking statements contained in this press release represent
Bell Canada's and Manitoba Telecom Services Inc.'s expectations as of April
11, 2002 and, accordingly, are subject to change after such date. However,
Bell Canada and MTS disclaim any intention or obligation to update or revise
any forward-looking statements, whether as a result of new information, future
events or otherwise.


    CALL WITH FINANCIAL ANALYSTS
    Bell Canada and MTS will hold a call with financial analysts today
beginning at 8:30 a.m. (Mountain time). Media are welcome to join the call on
a listen-only basis. To participate, please call: (403) 537-9601 or 1 800 478-
9326. This call will be Web cast (audio only) from the MTS and BCE Web sites:
www.bce.ca and www.mts.ca.
    A replay of this audioconference will be available at 3:00 p.m. EST at
(416) 695-5800 or 1 800 408-3053 passcode 1133446("pound sign") until
11:59 p.m., April 18, 2002.

    MEDIA CONFERENCE
    Bell Canada and MTS will also hold a news conference today beginning at
11:00 a.m. (Mountain time) at the Palliser Hotel, in the Turner Valley Room,
133 9th Avenue SW, in Calgary. Media outside of Calgary can participate via a
conference call bridge by calling: (403) 537-9603 or 1 800 273-9672. John
Sheridan, President of Bell Canada, Bill Fraser, President and CEO of MTS, and
Randy Reynolds, President and CEO of the newly formed company will host this
event and will be available to respond to questions from the media.
    BCE will also Webcast this news conference. To take part in the Webcast,
please visit the BCE Web site at www.bce.ca.

    What you need to "attend" the Webcast:
    -    A Pentium PC P133 or faster
    -    Sound card with speakers or headphones
    -    28.8 Kbps modem or higher
    -    RealPlayer G2 required, available at www.real.com

    The news conference will also be available via satellite feed:

    Anik E2 KuBand, Transponder 6
    Audios: 5.14 and 6.17
    Downlink Frequency: 11865 (V)

    For technical support please call: Dome Productions 1 877 442-4417.

    Local Toronto broadcasters have been granted a PEGAD at Toronto TOC;
    connect to Dome order No. 77711.



                           Background Information
                              Bell in the West

    BELL PROFILE

    -    On April 11, 2002, Bell Canada and Manitoba Telecom Services (MTS)
         combined the operations of Bell Intrigna and Bell Nexxia to form a
         new company, to operate under the Bell brand.
    -    Bell combines the expertise of Bell Intrigna and Bell Nexxia in
         Western Canada to provide seamless, integrated communications
         services to businesses of all sizes in Alberta and British Columbia.
    -    Headquartered in Calgary, Bell has offices in Edmonton and Vancouver
         and employs a team of approximately 700 employees.
    -    As a one-stop shop, this locally managed enterprise offers customers
         a full suite of wireline services supported by the trusted Bell
         brand.
    -    Bell delivers value to its customers by leveraging the technology
         and national and international connectivity of Bell Canada.


    PRODUCTS AND SERVICES

    -    Bell offers a complete range of integrated products and services to
         small, medium, large, national and international business customers.
    -    The new entity Bell will offer retail and wholesale services in
         Alberta and British Columbia, and will deliver wholesale services to
         select customers in Saskatchewan and Manitoba.
    -    Bell product and service offerings include Business Exchange
         Services, ISDN, Digital network and exchange access, Digital Intra-
         Exchange (local) transport service and Data and IP services.
    -    Through its relationship with BCE Emergis, Bell delivers business
         applications and e-commerce services to national customers.
    -    In addition, Bell Managed Solutions will provide a complete
         portfolio of fully managed, network-based services to improve
         e-business productivity, protect company data and manage network-
         based applications, services and content.

    KEY BELL CUSTOMERS IN THE WEST

    - GOVERNMENT OF ALBERTA SUPERNET PROJECT: Bell is leading the deployment
      of a next-generation network, bringing high-speed Internet and
      broadband capabilities to 90% of Albertans through the SuperNet
      initiative. As part of the SuperNet initiative, Bell will invest
      $102 million in Alberta, building the core portion of the network,
      which will reach the 27 largest communities involved in the project.

    - CANADIAN PACIFIC RAILWAY: Bell has a 3-year agreement with Canadian
      Pacific Railway (CPR) to supply calling cards, Centrex and Datapac
      services for its Canadian operations, and long-distance service across
      its North American operations. Under the agreement, Bell will also
      provide dedicated teams to support CPR in developing its next-
      generation communications infrastructure.

    - CALGARY EXHIBITION AND STAMPEDE: Bell has recently signed a 5-year
      contract to supply the Calgary Exhibition and Stampede with local phone
      service, data, and long-distance phone service.

    - CREDIT UNION CENTRAL OF ALBERTA: Under a 3-year contract, Bell will
      provide Credit Union Central of Alberta Limited with frame relay
      services.

    - CITY OF CALGARY: Bell has won its initial contract with the City of
      Calgary, to provide local services, PRI, Multiline and IBLs on 3-year
      deal. Bell will also provide the City of Calgary with a Carrier Grade
      Optical Ethernet solution to support the city's Tri Services 911
      initiative.

    - CRYSTAL DECISIONS (FORMERLY SEAGATE SOFTWARE): Bell has been awarded
      several contracts ranging from the sale and support for a content
      switch to load balance Web traffic to contracts for the service and
      support of international private line and toll services.

    - BAKER HUGHES: Bell has signed a 3-year contract to supply a national
      frame relay data network service to all Baker Hughes site locations.

    - NAVIGATA COMMUNICATIONS (FORMERLY RSL COM CANADA): Bell has entered
      into a 3-year contract to provide Centrex services to Navigata
      Communications of North Vancouver, British Columbia. Navigata, a member
      of the SaskTel group of companies, provides cost-effective and reliable
      data and voice services.

    - SURREY SCHOOL DISTRICT: Bell has just completed phase 2 of a 5-year
      contract to provide the Surrey School District with both local and long-
      distance services, equipment, data and wireless services.

    - TRIMAC TRANSPORTATION: Bell has signed a 3-year contract to provide
      toll and local service as well as frame relay networking to over 70
      Trimac sites in Canada and the United States.

    - UUNET: Bell has entered into a 5-year contract to provide data services
      to UUNET, a WorldCom company that offers network-based internet
      communications solutions for business customers.


    PRESENCE IN THE WEST

    BELL CANADA AND BELL GLOBEMEDIA
    - Bell Canada entered the Western market in 1999 and operates several
      divisions in Alberta and B.C., including Bell, Bell Mobility, Bell
      ExpressVu and Bell Distribution Inc.
    - Bell Globemedia has operations in Western Canada and reaches a large
      audience through its divisions: CTV Inc., The Globe and Mail and Bell
      Globemedia Interactive.
    - Together these entities employ more than 1,500 employees in Alberta and
      British Columbia.
    - Bell Canada, Bell Globemedia and their properties support a wide-range
      of Western-based organizations and initiatives, including: Alberta
      Children's Hospital Foundation, Bell Walk for Kids, Calgary Stampede,
      Calgary Zoo's ZooGala, Calgary and Edmonton Jazz Festivals, Calgary and
      Vancouver Film Festivals, Edmonton Symphony Orchestra, Tourism Calgary,
      United Way, Junior Achievement, Nokia Brier, British Columbia Institute
      of Technology, Northern Alberta Institute of Technology and Vancouver
      Indy, to name a few.

    BELL MOBILITY
    - Bell Mobility, Canada's largest wireless communications provider and a
      world leader in wireless innovation, offers a complete range of
      wireless services in the West, including cellular, paging, data, PCS
      and airline passenger communications services.
    - Bell Mobility is investing $180 million to build a 1X network in
      Alberta and B.C. that will offer customers a full suite of next-
      generation digital services. It plans to open its Western-based
      Customer Call Centre in the fall of 2002.

    BELL DISTRIBUTION INC. (BDI)/BELL WORLD
    - Bell Distribution Inc. has a significant presence in the West, with 23
      Bell World locations (stores and kiosks) located throughout Alberta and
      B.C.
    - Bell World stores represent the first retail sales network to provide
      comprehensive and integrated communications solutions, as well as
      wireline and wireless services and direct-to-home satellite service.

    BELL EXPRESSVU
    - Bell ExpressVu provides satellite television service to 1,000,000 homes
      across Canada, including several hundred thousand customers in Alberta
      and B.C.
    - Bell ExpressVu has more than 1,500 retail partners in the West and a
      number of exclusive partnerships, such as Visions Electronics and
      London Drugs.

    BELL GLOBEMEDIA
    - Bell Globemedia owns and operates CTV affiliates in Calgary (CFCN),
      Lethbridge (CFCN), Edmonton (CFRN) and Vancouver (BC CTV).
    - The Globe and Mail has bureaus in Calgary, Edmonton, Vancouver and
      Victoria.
    - Bell Globemedia Interactive operates the Sympatico-Lycos city sites:
      vancouverplus.ca, calgaryplus.ca and edmontontonplus.ca, which provide
      breaking news plus information and services about local arts and
      entertainment, weather and community information. Together, these sites
      attract 160,000 unique visitors per month.




-30-


For further information: MTS Corporate Communications, Melanie Lee
Lockhart, (204) 941-7495; MTS Investor Relations, Brad Woods, (204) 941-8283;
Bell Investor Relations, Isabelle Morin, (514) 786-3845; Bell Communications,
Gina Gottenberg, 1 888 482-0809