MONTREAL, Québec, Dec. 18 2006 -- BCE Inc. (TSX/NYSE:BCE) today
announced the sale of its satellite services subsidiary Telesat Canada for
$3.42 billion to a new acquisition company formed by Canada's Public Sector
Pension Investment Board (PSP Investments) and Loral Space & Communications
Inc.
    Consistent with BCE's stated strategy of concentrating on Bell, its core
communications business, the company had previously announced its intention to
surface the value Telesat represents for its shareholders through an IPO or
strategic sale.
    Net of Telesat's debt, BCE will realize total proceeds of $3.25 billion
from the all cash transaction, which represents a significant premium to
comparable public market valuations. Because of existing capital losses, the
transaction will be completed on a tax-free basis. The sale is subject to
regulatory approval both in Canada and the United States, and is expected to
close in mid-2007. Other customary conditions must also be satisfied.
    PSP Investments, the pension fund manager for Canada's federal public
service, the Canadian Forces, the Royal Canadian Mounted Police, and other
Canadian investors will hold majority voting control in the new company,
thereby ensuring strong Canadian control of Telesat. Seventy per cent of board
members of the new Telesat and eighty per cent of the board of the operating
company will be resident Canadians.
    On closing, Loral - a recognized leader in satellite manufacturing and
satellite services - will contribute its Loral Skynet business, which involves
complementary satellite services assets in Europe, Asia, the Middle East and
Latin America to the new company. Combined with Telesat's existing services,
in North and South America, the new Telesat will be a truly global operator of
scale, headquartered in Ottawa.
    All research and development activities of the group related to the fixed
satellite business will be carried out in Canada as well.
    The new company will feature a management team to be drawn from both
Telesat and Loral Skynet. Daniel Goldberg, recruited by BCE to lead Telesat
through the sale process, will serve as Chief Executive Officer of the new
company.
    In conjunction with the sale, BCE has put in place a set of commercial
arrangements between Telesat and Bell ExpressVu that guarantee ExpressVu
access to current and expanded satellite capacity, including the launch of
Nimiq 5 in 2009.
    "At the outset of this process, we set three goals," said BCE Chief
Executive Officer Michael Sabia. "First, we were determined to surface the
value of the asset. Second, we wanted to make certain any transaction fully
protected the future of ExpressVu. And finally, we wanted to position Telesat
as a truly global player in a rapidly consolidating industry."
    "This transaction meets each of those objectives," Sabia added. "The new
company will be the fourth largest satellite services operator in the world.
Global in scale, but Canadian based and Canadian controlled."
    "Telesat has operated independently from our core communications business
for some time. Given current industry valuations in the fixed satellite
services business, we believe this is an opportune time to surface value for
BCE shareholders," said Mr. Sabia.

    Caution Concerning Forward-Looking Statements

    Certain statements made in this press release, including, but not limited
to, the expected closing of the transactions referred to herein, and other
statements that are not historical facts, are forward-looking statements 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. As a result, you are cautioned not to place
undue reliance on these forward-looking statements. The forward-looking
statements contained in this press release represent the expectations of BCE
Inc. and its subsidiaries (collectively we, us, our or BCE) as of December 18,
2006 and, accordingly, are subject to change after such date. However, we
disclaim any intention and assume no obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.
    Factors that could cause results or events to differ materially from
current expectations include, among other things, the fact that the expected
closing of the transactions referred to in this press release is subject to a
number of approvals and closing conditions, including approval by Industry
Canada and the United States Federal Communications Commission as well as the
expiration of all applicable waiting periods under the Canadian Competition
Act and the United States Hart-Scott-Rodino Antitrust Improvements Act of
1976, and other closing conditions that are customary in a transaction of this
nature, including the absence of a material adverse change affecting Telesat
Canada's business and the ability of the purchaser to draw on its committed
financing to raise proceeds used to pay BCE Inc. for Telesat Canada. A
material adverse change on Telesat Canada's results and operations (which
could be caused by a variety of factors) prior to closing, or the failure of
the purchaser to complete its financings or to fulfill its obligations to BCE
could prevent the sale from occurring, or may result in the sale occurring on
materially different terms and conditions.

    About BCE Inc.

    BCE is Canada's largest communications company. Through its 28 million
customer connections, BCE provides the most comprehensive and innovative suite
of communication services to residential and business customers in Canada.
Under the Bell brand, the Company's services include local, long distance and
wireless phone services, high-speed and wireless Internet access, IP-broadband
services, information and communications technology services (or value-added
services) and direct-to-home satellite and VDSL television services. BCE
shares are listed in Canada, the United States and Europe.



For further information: Media relations: Pierre Leclerc, (514)
391-2007, 1 877 391-2007, pierre.leclerc@bell.ca;
Investor relations: Thane
Fotopoulos, (514) 870-4619, thane.fotopoulos@bell.ca