Bragg Communications Acquires all of the Outstanding Units of Amtelecom



    HALIFAX, June 1 /CNW/ - Bragg Communications Inc. ("Bragg
Communications") and Amtelecom Income Fund (AMT.UN) ("Amtelecom") jointly
announced today that Bragg Communications has taken up and paid for all of the
units of Amtelecom (the "Units") that were tendered to the Bragg
Communications offer dated April 17, 2007 (the "Offer"). Bragg Communications
thereafter delivered the appropriate Offeror's Notice to CDS & Co., as the
sole registered Unitholder, and acquired the remaining Units not deposited
under the Offer pursuant to the amended Compulsory Acquisition provisions of
the Declaration of Trust of Amtelecom. Upon delivery of such notice, Units
held by non-tendering Unitholders were deemed to have been immediately
transferred to Bragg Communications. Non-tendering Unitholders ceased to have
any rights as Unitholders from that time, other than the right to the May,
2007 distribution of $0.10 per Unit to Unitholders of record on May 31, 2007
and to be paid the same consideration ($14.25 in cash per Unit) that Bragg
Communications paid to Unitholders that tendered their Units to the Offer.
    The payment of the May, 2007 distribution was made by the Fund
immediately prior to Bragg Communications taking up and paying for the Units
and payment of the $14.25 per Unit consideration has been delivered by Bragg
Communications to the Depository to be forwarded to the non-tendering
Unitholders of Amtelecom.
    As a result of the above transaction, Amtelecom is now wholly-owned by
Bragg Communications. Accordingly, Amtelecom will be making an application to
have the Units delisted from the Toronto Stock Exchange at the close of
business on June 4, 2007, and will be taking steps to give notice and obtain
appropriate orders to permit it to cease being a reporting issuer under
Canadian securities legislation.
    TD Securities Inc. acted as financial advisor to Bragg Communications and
Stewart McKelvey acted as legal advisor to Bragg Communications.
    CIBC World Markets Inc. acted as financial advisor to Amtelecom and
Cassels Brock & Blackwell LLP acted as legal advisor to Amtelecom.

    About Amtelecom Income Fund

    Amtelecom Income Fund is an unincorporated, open-ended, limited purpose
trust established under the laws of the Province of Ontario to invest in
telecommunications and closely related businesses. The Fund, through its
wholly owned operating partnerships and subsidiaries, is the local telephone,
cable television and Internet Service provider to several regions in
southwestern and central Ontario.

    About Bragg Communications

    Bragg Communications operates multiple systems in Nova Scotia, Prince
Edward Island and New Brunswick. The company provides a range of
communications, entertainment & advertising services to business and
residential customers under the EastLink brand.

    Forward-looking Statements

    Certain statements in this release may constitute "forward-looking
statements" which involve known and unknown risks, uncertainties and other
factors that may cause the actual combined results, performance or
achievements of the Fund to be materially different from any future results,
performance or achievements expressed or implied by such "forward-looking
statements." Such statements may reflect current beliefs, expectations,
estimates and assumptions regarding future events and operating performance
and speak only as of the date of this release, and can be generally identified
by the use of statements that include words such as "anticipate", "believe",
"intends", "intention", "expects", or similar words and phrases. Although the
Fund believes that the expectations reflected in such statements are
reasonable, such statements involve risks and uncertainties, and undue
reliance should not be placed on such information. Reference should be made to
the Fund's Annual Information Form for the year ended December 31, 2006 for a
discussion of risk factors including, among others, technological, competitive
and regulatory changes, which may cause actual results, events or activities
to differ materially from those expressed or implied in such forward-looking
information.





For further information:

For further information: Paula Sibley, Communications Specialist, Bragg
Communications, Telephone: (902) 446-1939, Fax: (902) 453-2118, email:
paula.sibley@corp.eastlink.ca

Organization Profile

BRAGG COMMUNICATIONS INC.

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AMTELECOM INCOME FUND

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