MTS Allstream Wins Five Year Contract with Hydro One Telecom

    Will Provide 2.5 gigabit IP link from Sudbury to Thunder Bay

    Stock Symbol: MBT

    TORONTO, Aug. 11 /CNW/ - MTS Allstream Inc. ("MTS Allstream") announced
today that it has won a five-year contract with Hydro One Telecom to provide a
2.5 gigabit IP connection between Sudbury and Thunder Bay. The connectivity
will help Hydro One Telecom, a wholly-owned subsidiary of Hydro One Inc
providing telecommunications services to customers in Ontario, to deliver
state-of-the-art broadband telecommunications solutions to its customers.
    "Demand for high-bandwidth services is growing, and this is a demand that
MTS Allstream, with its innovative, coast to cost IP-enabled network, is well
positioned to meet," said Dean Prevost, President, Enterprise Solutions
division, MTS Allstream. "We are pleased to work with Hydro One Telecom and
provide them with a service that will serve as a foundation for reliable and
innovative telecommunications services for their customers."
    "This contract will position Hydro One Telecom to continue providing new
and more advanced services to its customers," said Paul Marchant, President &
CEO, Hydro One Telecom. "We are very excited to leverage the strength of MTS
Allstream's national network, which will support the capabilities of our own
network to provide services to our customer base in Ontario."

    About MTS Allstream

    MTS Allstream is a wholly-owned subsidiary of Manitoba Telecom Services
Inc. As one of Canada's leading national communication solutions companies,
MTS Allstream provides innovative communications for the way Canadians want to
live and work today. The Company has more than 100 years of experience, with
6,000 employees across Canada dedicated to a mission of delivering true value
as seen through the eyes of our customers. In 2008, MTS Allstream had nearly
two million total customer connections spanning business customers across
Canada and residential consumers throughout the province of Manitoba. The
Company's extensive national broadband and fibre optic network spans almost
30,000 kilometres. MTS Allstream is a proud sponsor of Cindy Klassen, 2006
World Champion and Canada's greatest Olympian, and a proud contributor to the
Canadian Museum for Human Rights. Manitoba Telecom Services Inc.'s common
shares are listed on The Toronto Stock Exchange (trading symbol: MBT).
Customers, stakeholders and investors who want learn more about MTS Allstream
services, markets, community commitments and record of creating shareholder
value are encouraged to visit:

    About Hydro One Telecom Inc.

    Established in 2000 as a wholly owned subsidiary of Hydro One Inc., Hydro
One Telecom leverages its parent company's telecommunications assets and
delivers state-of-the-art, broadband telecommunications solutions to carriers,
ISPs, and large public and private sector customers.
    Hydro One Telecom Inc. is a CRTC-registered, non-dominant,
facilities-based carrier, providing broadband telecommunications services in
Ontario with connections to Montreal and Buffalo, New York and Detroit,
Michigan. Its fibre network spans over 4,000 kilometres.
    Hydro One Inc. is a holding company that operates through its
subsidiaries in electricity transmission and distribution and telecom
businesses. One of its subsidiaries, Hydro One Networks Inc., operates one of
the largest transmission and distribution systems in North America. Hydro One
Inc. is wholly owned by the Ontario government.

For further information:

For further information: Media: Jill Gibson, Corporate Communications
Coordinator, (204) 958-3392,; Daniele Gauvin,
Hydro One Inc. Media Relations, (416) 345-6868,;
Investors: Paul Peters, MTS Allstream Investor Relations, (204) 941-6178,

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