MTS Allstream Acquires ICU Technologies



    Acquisition enhances MTS Allstream's current video capability and
    strengthens overall unified communications portfolio

    Stock Symbol: MBT

    TORONTO, Jan. 14 /CNW/ - MTS Allstream Inc., today announced that it has
acquired ICU Technologies Inc., an established player in the growing Canadian
enterprise-wide video conferencing solutions market.
    "This acquisition is a key step for MTS Allstream because it enhances our
current video capability nationally and strengthens our overall unified
communications ("UC") portfolio, which is a key area of growth for us," said
John MacDonald, President, Enterprise Solutions division, MTS Allstream.
    ICU Technologies is the second company that MTS Allstream has acquired in
the last three months to grow its UC portfolio.
    "These strategic acquisitions demonstrate our significant and long-term
commitment to enhancing our unified communications offering and delivery
capabilities," continued Mr. MacDonald. "Integrated video and video
conferencing are important elements of our UC solutions set. MTS Allstream has
a long track record of prudently investing in businesses that leverage our
core competencies - the ICU acquisition is consistent with that approach."
    ICU Technologies Inc. is an Ontario company that has been in business for
over 12 years, and is focused on the sales, service and support of
enterprise-wide, innovative videoconferencing solutions. ICU Technologies'
existing customer base consists mainly of mid to large size Canadian
corporations in the manufacturing, finance, education and medical sectors as
well as federal and provincial government departments.
    "We are very excited to join with MTS Allstream and become part of a
stronger organization that is leading in the unified communications space,"
said Bob Sayer, President, ICU Technologies. "Our integrated solutions will
build on MTS Allstream's existing video capabilities. By acquiring ICU's
expertise and resources, MTS Allstream has taken another important step in
becoming the preferred UC solutions provider for all Canadian enterprise
customers."

    About MTS Allstream Inc.

    MTS Allstream Inc. is a wholly owned subsidiary of Manitoba Telecom
Services Inc., and is one of Canada's leading national communication solutions
providers, delivering innovative products and services through the Enterprise
Solutions and Consumer Markets divisions. The Enterprise Solutions division,
which operates under the Allstream brand nationally and under the MTS brand in
Manitoba, is a leading competitor in the national business and wholesale
markets. This division offers customers a portfolio of solutions tailored to
the needs of medium and large businesses looking for success in a world of
rapidly evolving technology - Internet protocol-based communications, unified
communications, voice and data connectivity services. The Consumer Markets
division leads every telecommunications market segment in Manitoba, delivering
a full suite of next generation wireless, high-speed Internet and data,
digital television and wireline voice services under the MTS brand, as well as
small business services across Canada under the Allstream brand, and security
and alarm monitoring services through AAA Alarm Systems Ltd., an affiliate of
MTS Allstream which also operates in other western provinces. MTS Allstream's
extensive national broadband fibre optic network spans more than
24,300 kilometres, and provides international connections through strategic
alliances and interconnection agreements with other international service
providers. Manitoba Telecom Services Inc.'s common shares are listed on The
Toronto Stock Exchange (trading symbol: MBT). For more information, please
visit: www.mtsallstream.com.





For further information:

For further information: English Media: Greg Burch, Manager, Corporate
Communications, (204) 941-8576, media.relations@mtsallstream.com; Investors:
Ian Chadsey, Vice-President, Investor Relations, (204) 941-8283,
investor.relations@mtsallstream.com

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MTS Allstream

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