Manitoba Telecom Services Inc. Announces Debt Offering

    C$100 Million 3-Year Notes and C$250 Million 7-Year Notes

    Stock Symbol: MBT

    WINNIPEG, May 6 /CNW/ - Manitoba Telecom Services Inc. (TSX: MBT), which
includes its principal operating subsidiary, MTS Allstream Inc. (the "Company"
or "MTS Allstream") one of Canada's leading national communications companies,
announced today that it has successfully launched an offering of $350 million
in medium term notes.
    The notes will be offered in two tranches, the first tranche of $100
million 5.05% Notes due May 11, 2012, and a second tranche of $250 million
6.65% Notes due May 11, 2016.
    "The successful launch of this offering speaks to the strength of our
financial profile," said Pierre Blouin, Chief Executive Officer, MTS
Allstream. "This is yet another example of the stability of our operational
performance and our balance sheet, which compares favourably with other
Canadian telecommunications providers, and illustrates our ongoing ability to
access capital."
    The net proceeds of the offering will be used to refinance upcoming
long-term debt maturities and to reduce the Company's short-term debt.
    The financing is expected to close on Monday, May 11, 2009. The offering
is being made pursuant to the Company's short form base shelf prospectus filed
January 18, 2008.

    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 - IP 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:

    Forward-looking Statements Disclaimer

    This news release includes forward-looking statements and information
(collectively, the "statements") that are subject to risks, uncertainties and
assumptions. As a consequence, actual results in the future may differ
materially from any such forward-looking statements. Forward-looking
statements reflect our expectations as at May 6, 2009. Examples of statements
that constitute forward-looking information may be identified by words such as
"expect" and other similar terms. Factors that could cause anticipated
opportunities and actual results to differ materially from those expected, and
the material factors or assumptions that were applied in drawing a conclusion
or making a forecast or projection set out in such forward-looking statements,
include, but are not limited to, the items identified in our interim MD&A for
the first quarter of 2009, and our 2008 annual MD&A. Except as required by
law, we disclaim any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise. The agreements giving rise to the matters described in
this news release are subject to significant conditions, many of which are
entirely outside of our Company's control or may not otherwise be satisfied.
    Additional information relating to our Company, including our Annual
Information Form, is available on SEDAR at

For further information:

For further information: Media: Greg Burch, Manager Corporate
Communications, (416) 345-3576, (204) 941-8576,; Investors: Ian Chadsey, Vice-President
Investor Relations, (204) 941-8283,

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