City of Kenora approves in principle Bell Aliant offer to purchase Kenora Municipal Telephone System for $27 million

    KENORA, ON, Jan. 3 /CNW/ - The City of Kenora and Bell Aliant Regional
Communications, Limited Partnership, a subsidiary of Bell Aliant Regional
Communications Income Fund ("Bell Aliant") (TSX: BA.UN), announced today that
they have entered into an agreement under which Bell Aliant will purchase the
assets and business of Kenora Municipal Telephone System (KMTS). The
acquisition price will be approximately $27 million.
    "In an increasingly competitive industry, Bell Aliant has the necessary
scale and resources to offer our customers access to the latest products,
services and innovative technology," said KMTS General Manager Dennis
    "We understand the importance of KMTS to Kenora and look forward to
building on the excellent foundation of service and value already in place for
customers in this area," said Stephen Wetmore, President and Chief Executive
Officer of Bell Aliant.
    This acquisition is a natural fit for Bell Aliant, aligning with its
strong focus on the needs of customers and communities. Bell Aliant already
serves customers, and is a strong community partner, in Jaffray Melick and
other neighbouring areas of Kenora in Northern Ontario.
    Bell Aliant has committed to offer employment to all current KMTS staff,
to ensure a seamless transition for its customers and to maintain a strong
emphasis on sponsorship and investment in the community.
    "City Council is pleased with the purchase proposal and believes it is in
the best interests of Kenora and KMTS's customers and employees to accept this
offer by Bell Aliant," stated Kenora Mayor Len Compton.
    The proposed transaction is subject to final approval by Kenora's City
Council following a public information meeting which will be held in Kenora on
January 15, 2008. Once authorized, closing will be subject to customary terms
and conditions, including regulatory approvals to be requested from Industry
Canada and the Canadian Radio-television and Telecommunications Commission.

    About KMTS

    Owned by the City of Kenora, the Kenora Municipal Telephone System
provides a full range of telecommunications services to business and
residential customers, and has served Kenora and the surrounding area since

    About Bell Aliant

    Bell Aliant (TSX: BA.UN) is one of North America's largest regional
communications providers. Through its operating entities it serves customers
in six Canadian provinces with innovative information, communication and
technology services including voice, data, Internet, video and value-added
business solutions. Through its xwave offices, Bell Aliant also provides IT
professional services in Canada and the US. Bell Aliant's 10,000 employees are
committed to deliver the highest quality of customer service, choice and

    Forward-looking Statements

    This news release contains forward-looking statements concerning
anticipated future events, results, circumstances or expectations, in
particular regarding Bell Aliant's intention to purchase the assets and
business of the Kenora Municipal Telephone System. Unless otherwise indicated,
such forward-looking statements describe Bell Aliant's expectations at January
3, 2008. These statements are based on Bell Aliant's management's beliefs
regarding future events, many of which, by their nature are inherently
uncertain and beyond management's control. These statements are not guarantees
of future performance or events and are subject to numerous risks and
uncertainties which are difficult to predict and assumptions which may prove
to be inaccurate, including the assumption that all the terms and conditions
of the proposed transaction will be satisfied and that Bell Aliant will
complete the purchase of the assets of the Kenora Municipal Telephone System
as currently contemplated. Except as may be required by applicable law, Bell
Aliant disclaims any intention and assumes no obligation to update or revise
any forward-looking statement even if new information becomes available, as a
result of future events or for any other reason. Readers should not place
undue reliance on any forward-looking statements.
    %SEDAR: 00023938EF

For further information:

For further information: Dennis McCaffrey, Kenora Municipal Telephone
System, (807) 467-2070,; Alyson Queen, Bell Aliant Public
Affairs, (866) 696-6700,

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