Hudson's Bay Company Selects MTS Allstream for Full Suite of Enterprise Telecommunications Services

    Contract extension adds to existing telecom services

    Stock Symbol: MBT

    TORONTO, May 8 /CNW/ - MTS Allstream Inc. ("MTS Allstream") is pleased to
announce the signing of a three year, multi-million dollar contract with
Hudson's Bay Company. Under the terms of the agreement MTS Allstream will
continue to provide local voice lines with the addition of Multi Protocol
Label Switching ("MPLS"), Internet, and voice communications including
toll-free and long-distance services, for a full suite of enterprise
telecommunications services.
    Hudson's Bay Company is Canada's largest and oldest diversified general
merchandise retailer with more than 600 retail locations and nearly 60,000
associates located across the country. Hudson's Bay Company's four banners
include the Bay, Zellers, Home Outfitters and Fields.
    "We are thrilled to have been selected by Hudson's Bay Company to provide
a complete suite of enterprise telecommunications solutions for Canada's
largest and most trusted retailers," said Dean Prevost, President, Enterprise
Solutions division, MTS Allstream. "This significant contract is another
example of how we continue to deliver high quality and flexible communications
solutions to our customers. We are looking forward to building on our already
strong relationship with Hudson's Bay Company."
    "As we continue to look for ways to streamline functional operations
across each of our banners, we are pleased to be expanding our relationship
with MTS Allstream," said Jason Wilson, Vice President, Technology, Hudson's
Bay Trading Company. "In MTS Allstream, we have a single telecommunication
provider that is able to deliver a wide range of services and support that
meet our national business needs."

    About MTS Allstream

    MTS Allstream 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
Allstream 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 connectivity, unified
communications, IT consulting and security 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 in select markets 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 27,900 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:

    About Hudson's Bay Company

    Hudson's Bay Company, the Canadian retail entity of Hudson's Bay Trading
Company (HBTC), is Canada's largest diversified general merchandise retailer.
Founded in 1670, Hudson's Bay Company operates the Bay, a major department
store, Zellers, a mass merchandise format, Home Outfitters, a kitchen, bed and
bath specialty store, and value-priced Fields stores. With more than 600
retail outlets and nearly 60,000 associates in Canada, Hudson's Bay Company
banners provide Canadians with stylish, quality merchandise at great value and
with a dedicated focus on exceeding customer expectations.

For further information:

For further information: Media: Jill Gibson, Corporate Communications
Coordinator, MTS Allstream, (204) 958-3392,;
Alexis Redmond, Senior Account Director, Corporate, Financial & Public
Affairs, Edelman Canada on behalf of Hudson's Bay Company, (416) 979-1120 ext.
310,; Investors: Ian Chadsey, Vice-President
Investor Relations, MTS Allstream, (204) 941-8283,

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