MONTREAL, July 26 /CNW/ - BCE today announced second quarter results
reflecting continued revenue growth from its operations. BCE reported a 7%
increase in second quarter unaudited cash baseline earnings to $0.45 per
common share ($290 million) from $0.42 per common share ($268 million) for the
same period in 1999. For the six months ended June 30, 2000, unaudited cash
baseline earnings were $0.88 per common share ($568 million) compared with
$0.84 per common share ($539 million) for the first six months of 1999.
    ``Revenue grew by 12% in the quarter, largely as a result of revenue
growth at Bell Canada, BCE Emergis, BCE Media and Bell Canada International,''
said Jean C. Monty, Chairman and Chief Executive Officer. ``Bell continues its
strong growth in data revenue with a 28% increase over last year. Bell
Mobility had a very successful quarter, adding 156,000 new subscribers, four
times more than in the previous quarter.''
    ``During this quarter BCE completed its acquisition of CTV and recently
tabled the details of a $230 million benefits package, the largest in Canadian
broadcast history, as part of its application to become the new owner of
CTV,'' added Mr. Monty. ``The acquisition of Teleglobe is also proceeding as
planned and should be completed at the end of October 2000.''
    In the second quarter, total revenue reached $4.3 billion compared with
$3.9 billion for the same period in 1999. Earnings before interest, taxes,
depreciation and amortization (EBITDA) grew by 9% to $1.7 billion for the same
period. For the six-month period, total revenue was up 11% to reach
$8.4 billion and EBITDA increased 7% to $3.2 billion.
    Reported net earnings were $0.04 per common share ($24 million) for the
second quarter of 2000 compared with $7.23 per common share ($4.6 billion) for
the same period in 1999. Second quarter 2000 earnings included net losses of
$266 million mainly attributable to losses at Bell Canada International and
goodwill expense. Second quarter earnings in 1999 included gains of
$4.4 billion mainly attributable to a dilution gain on the reduction of BCE's
ownership in Bell Canada.

    Highlights of the quarter (``second quarter 2000 vs. second quarter 1999,
    unless indicated'')
    - Bell Mobility cellular subscribers reached the 2 million mark at the
      end of the quarter (2.34 million including Aliant);
    - Sympatico total subscribers increased 92% to 609,000 (785,000 including
      Aliant);
    - Sympatico High Speed Edition subscribers grew 61% over last quarter to
      109,000 (130,000 including Aliant);
    - BCE Emergis revenue was up 200% to $122 million;
    - Bell ExpressVu's subscribers grew 126% to 526,000.

    RESULTS BY GROUP
    BCE's activities are organized around four business groups: Bell Canada,
BCE Emergis and CGI, BCE Media, and Bell Canada International. Bell Canada
includes Bell Mobility, Bell Nexxia, Bell ActiMedia, Aliant as well as Bell
Canada's interests in Manitoba Telecom Services (MTS), Teleglobe and other
Canadian telcos. The BCE Media group is comprised of Bell ExpressVu, Telesat,
CTV, which is held in trust pending the decision of the CRTC relative to BCE's
application for change of ownership, and other media interests.





    BELL CANADA
    For the second quarter, operating revenue for Bell Canada was up 8% to
$3.8 billion due mainly to strong growth in IP/Broadband revenue at Bell
Nexxia, increased revenue from higher number of lines in service and
SmartTouch features. Revenue from local and access services increased by 4% to
$1.6 billion. Revenue from long distance and network services was flat at
$1.1 billion. Terminal sales, directory advertising and other revenue grew by
36% to $796 million, mainly due to increased data revenue. Bell Mobility
revenue was up 5% to $296 million due mainly to the new activations and
increased service revenue.
    Cash operating expenses were up 7% to $2.2 billion due mainly to
increased expenses associated with increased revenue. Earnings before
interest, taxes, depreciation and amortization (EBITDA) grew 10% to
$1.6 billion.
    Cash baseline earnings applicable to common shares were $348 million in
the second quarter of 2000 compared with $339 million for the same period in
1999.
    Bell Canada's cash baseline contribution to BCE's earnings was
$281 million in the second quarter compared with $313 million for the same
period in 1999. The cash baseline contribution in the year 2000 reflects BCE's
reduced ownership in Bell Canada from 100% to 80% as of June 1, 1999.

    BCE EMERGIS AND CGI
    BCE recorded a cash baseline contribution of $12 million for this group
in the second quarter of 2000 compared with $11 million for the same period in
1999.
    BCE Emergis' cash baseline contribution to BCE was $6 million in the
second quarter of 2000, compared with a loss of $1 million for the same period
in 1999. The change was mainly attributable to the acquisition, at the end of
March 2000, of United Payors and United Providers (UP & UP).
    CGI's cash baseline contribution to BCE was $6 million in the second
quarter compared with $12 million for the same period in 1999. On June 22,
2000, CGI announced that based on current information, revenue and earnings
per share would be below analysts' consensus estimates for the balance of its
fiscal year, due primarily to a slowdown in the marketplace relating to new
investments in IT and the awarding of large outsourcing contracts.

    BCE MEDIA
    In the second quarter, the group recorded a cash baseline loss of
$14 million compared with a cash baseline loss of $16 million for the same
period in 1999. The group's cash baseline loss in the quarter was mainly
attributable to Bell ExpressVu, partially offset by CTV's $17 million
contribution. CTV, which is currently held in trust, is equity accounted since
April 1, 2000, pending the decision of the CRTC relative to BCE's application
for change of ownership.
    Revenue for BCE Media reached $146 million in the quarter representing a
59% increase over the same period last year. The strong growth was
attributable to increased revenue at Bell ExpressVu and Telesat.

    BCI
    BCE's share of BCI's loss was $143 million in the second quarter of 2000,
compared with a loss of $72 million for the same period in 1999. The increased
loss was mainly attributable to the consolidation of Comcel (Colombia) and the
costs associated with the start up operations at Vésper (Brazil). BCI's
revenue for the second quarter of 2000 was up 35% compared with the second
quarter of 1999 mainly due to BCI's Asian Pacific PCS operations, partially
offset by lower revenue from Comcel. Proportionate number of subscribers
increased 56% from the previous year to exceed 1.6 million at the end of the
second quarter of 2000.
    BCE is Canada's largest communications company. Through its operations in
communications services, BCE provides residence and business customers in
Canada with wireline and wireless communications products and applications,
satellite communications and direct-to-home television services, systems
integration expertise, electronic commerce solutions, Internet access and
high-speed data services, and directories. Abroad, through Bell Canada
International, BCE provides communications services to millions of customers
mostly from Latin America. BCE also has an extensive international presence
through Teleglobe, an international telecommunications carrier. BCE shares are
listed in Canada, the United States and Europe.

    A replay of BCE's second quarter 2000 conference call with analysts can
    be heard, on a continuous basis, between 6:00 PM eastern time on July 26
    to 6:00 PM on August 9, 2000. Simply dial (416) 695-5800 and you will be
    instructed to enter the access code: 518518.

    Note:
    Certain statements made in this press release, which describe BCE's
    intentions, expectations or predictions, are forward-looking and are
    subject to important risks and uncertainties. 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 from
    current expectations include, among other things: the impact of rapid
    technological and market change; increasing competition; general industry
    and market conditions and growth rates; international growth and global
    economic conditions, particularly in emerging markets, including interest
    rate and currency exchange rate fluctuations; the level of expenditures
    necessary to maintain quality of service, the availability and cost of
    capital, and the extent of demand for traditional and emerging services;
    the Internet economy growing at a slower pace than is currently
    anticipated as well as changes in laws or regulations governing Internet
    commerce; and the impact of consolidations in the telecommunications
    industry. For additional information with respect to certain of these and
    other factors, see the reports on Forms 6-K and 40-F filed by BCE with
    the United States Securities and Exchange Commission. BCE disclaims any
    intention or obligation to update or revise any forward-looking
    statements, whether as a result of new information, future events or
    otherwise.



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For further information: Jean-Charles Robillard, Communications,
(514) 786-3908 or George Walker, Investor Relations, (514) 870-2488;
Web site: www.bce.ca