Manitoba Telecom Services : Bell and MTS to expand LTE wireless service in Glenboro

GLENBORO, MB, August 26, 2016 - BCE Inc. (Bell) (TSX, NYSE: BCE) and Manitoba Telecom Services Inc. (MTS) (TSX: MBT) today announced plans for the expansion of LTE wireless service in the western Manitoba community of Glenboro.

Part of the Bell MTS plan to invest $1 billion over five years in enhanced communications services across the province, the new wireless network infrastructure in Glenboro will deliver broadband LTE wireless services to the town's residents and businesses, and to travelers along two significant Manitoba transportation routes, Highway 2 and Highway 5.

'This is the latest example of the benefits we'll deliver to Manitobans as part of the Bell MTS commitment to invest in the latest broadband networks and service innovations available,' said Mirko Bibic, Bell's Chief Corporate Development Officer. 'With this expansion, Glenboro will be able to take full advantage of the most powerful mobile network in Canada.'

'This much-needed infrastructure upgrade will benefit families, businesses and farmers, as well as the local school and hospital in the town of Glenboro and its surrounding area,' said Patricia Solman, Senior Vice-President, Network & Field Services, MTS. 'And importantly, it also fills existing coverage gaps on Highways 2 and 5, enhancing connectivity and safety along these key transportation routes.'

'Our government is committed to the creation of an environment that will allow for the attraction of new investment and the expansion of existing businesses,' said Cliff Cullen, Minister of Growth, Enterprise and Trade. 'We are therefore pleased with Bell MTS's commitment to invest in enhanced communications services ‎throughout rural and northern Manitoba.'

Bell MTS: Better together, better for Manitobans

On May 2, Bell announced the acquisition of Manitoba Telecom Services Inc. (MTS) in a transaction valued at approximately $3.9 billion as well as a 5-year, $1 billion commitment to expand broadband fibre and wireless communications services in Manitoba following the closing of the transaction, expected in late 2016 or early 2017.

In addition to the Glenboro service expansion announced today, Bell and MTS have also announced plans for continuous broadband wireless coverage along Highway 75 in southern Manitoba and the expansion of mobile and wireline broadband networks in northern Manitoba, including along Highway 6 to Thompson, in Flin Flon and in 5 small indigenous communities

The combined company's Manitoba operations will be known as Bell MTS. Winnipeg will become headquarters for Bell's entire Western Canada team, which will grow to 6,900 people in Manitoba, Saskatchewan, Alberta and British Columbia with the addition of MTS's 2,700 Manitoba employees.

Caution concerning forward-looking statements

This news release contains forward-looking statements and information (collectively, the 'forward-looking statements') including, but not limited to those relating to a statutory plan of arrangement under section 185 of The Corporations Act (Manitoba), pursuant to which, among other things, BCE intends to acquire all of the issued and outstanding common shares of MTS (the Arrangement), the expected timing of, and certain strategic, operational and financial benefits expected to result from, the Arrangement, our network deployment and capital investment plans in Manitoba, our business outlook, objectives, plans and strategic priorities, information concerning MTS and BCE, and other statements that are not historical facts.
Forward-looking statements are typically identified by the words assumption, goal, guidance, objective, outlook, project, strategy, target and other similar expressions or future or conditional verbs such as aim, anticipate, believe, could, expect, intend, may, plan, seek, should, strive and will. All such forward-looking statements are made pursuant to the 'safe harbour' provisions of applicable Canadian securities laws and of the United States Private Securities Litigation Reform Act of 1995.

Forward-looking statements, by their very nature, are subject to inherent risks and uncertainties and are based on several assumptions, both general and specific, which give rise to the possibility that actual results or events could differ materially from our expectations expressed in or implied by such forward-looking statements. As a result, we cannot guarantee that any forward-looking statement will materialize and we caution you against relying on any of these forward-looking statements. The forward-looking statements contained in this news release describe our expectations at the date of this news release and, accordingly, are subject to change after such date. Except as may be required by Canadian securities laws, we do not undertake any obligation to update or revise any forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise. Forward-looking statements are provided herein for the purpose of giving information about the Arrangement and its expected impact, including our network deployment and capital investment plans in Manitoba. Readers are cautioned that such information may not be appropriate for other purposes.

Completion and timing of the Arrangement are subject to a number of conditions precedent and termination rights, some of which are outside MTS' and BCE's control, including, without limitation, receipt of the required regulatory approvals, the operation and performance of the MTS business in the ordinary course until closing of the Arrangement, the absence of a material adverse effect, including no award being in force, which would result in a material adverse effect and no action being pending or threatened (other than frivolous or vexatious actions) against or involving MTS or its subsidiaries that, if decided against MTS or its subsidiaries, would result in a material adverse effect, and compliance by MTS with various other covenants contained in the arrangement agreement between MTS and BCE dated May 1, 2016, all of which are subject to important risks, uncertainties and assumptions. There can be no certainty, nor can MTS or BCE provide any assurance, that all conditions precedent to the Arrangement will be satisfied or waived and that the Arrangement will occur, or, if satisfied or waived, when they will be satisfied or waived. If the Arrangement is not completed, the market price of MTS' common shares may be materially adversely affected. Moreover, a substantial delay in obtaining the required regulatory approvals or the presence of an award or action that would result in a material adverse effect could result in a prolonged extension of the outside closing date. The Arrangement could be modified, restructured or terminated. There can also be no assurance that the strategic, operational or financial benefits expected to result from the proposed transaction, as well as our network deployment and capital investment plans in Manitoba, will be realized. The nature and value of capital investments planned to be made in Manitoba over 5 years assume completion of the Arrangement as well as our ability to access or generate the necessary sources of capital. However, there can be no assurance that the Arrangement will be completed or that the required sources of capital will be available with the result that the actual capital investments made by us in Manitoba during such period could materially differ from current expectations.

For additional information on assumptions and risks underlying certain forward-looking statements made in this news release relating, in particular, to our network deployment and capital investment plans, please consult BCE's 2015 Annual MD&A dated March 3, 2016 (included in the BCE 2015 Annual Report) as updated in BCE's 2016 First and Second Quarter MD&As dated April 27, 2016 and August 3, 2016, respectively, filed by BCE with the Canadian provincial securities regulatory authorities (available at Sedar.com) and with the U.S. Securities and Exchange Commission (available at SEC.gov). These documents are also available at BCE.ca.

About MTS

At MTS, we're proud to be Manitoba's leading information and communications technology provider. We're dedicated to delivering a full suite of services for Manitobans - Internet, Wireless, TV, Phone Service and Security Systems plus a full suite of Information Solutions, including Unified Cloud and Managed Services.

We live where we work and actively give back to organizations that strengthen our communities. Through MTS Future First, we provide sponsorships, grants and scholarships, value-in-kind support and volunteer commitment in Manitoba.

MTS Inc. is wholly owned by Manitoba Telecom Services Inc. (TSX: MBT). For more on MTS' products and services, visit mts.ca. For investor information, visit mts.ca/aboutus.

About Bell

Canada's largest communications company, Bell provides consumer, business and government customers with a comprehensive and innovative suite of broadband wireless, TV, Internet and business communication services from Bell Canada and Bell Aliant. Bell Media is Canada's premier multimedia company with leading assets in television, radio, out of home and digital media. Founded in Montréal in 1880, Bell is wholly owned by BCE Inc. (TSX, NYSE: BCE). To learn more, please visit BCE.ca or Bell.ca.

The Bell Let's Talk initiative promotes Canadian mental health with national awareness and anti-stigma campaigns like Bell Let's Talk Day and significant Bell funding of community care and access, research, and workplace initiatives. To learn more, please visit Bell.ca/LetsTalk.

Media inquiries:

Bell
Michelle Michalak
416-215-3021
michelle.michalak@bell.ca

MTS
Jeremy Sawatzky
204-958-3230
media.relations@mts.ca

Investor inquiries:

BCE
Thane Fotopoulos
514-870-4619
thane.fotopoulos@bell.ca

MTS
Brenda McInnes
204-941-6205
investor.relations@mts.ca