Re: Bell Canada: Catalyst Asset Management considers that its Stapled Security proposal is worth between $42.50 and $52.00 per BCE share

    TORONTO, June 25 /CNW/ - Catalyst Asset Management Inc. held a North
American teleconference after the close of the markets today to review in
greater detail the terms of its proposed Stapled Security reorganization of
BCE that is designed to maximize value for BCE shareholders in a way that
preserves BCE as a standalone and widely held public Canadian company for the
broader benefit of all stakeholder groups including customers, employees, and
other security holders whilst preserving the competitive landscape for
telecommunications services in Canada.
    More information on the Catalyst proposal is available at
    Under the Catalyst proposal that was submitted in writing to the Special
Committee of the Board of BCE this morning, it is contemplated that BCE common
shares would be exchanged on a one for one basis for Stapled Securities issued
by a newly formed corporation that would become New BCE. Each Stapled Security
would consist of one common share and a subordinated debt instrument. Under
the Catalyst proposal it is contemplated that the new common share would
continue to pay the present level of $1.46 in annual dividends and the debt
security would pay interest of $1.09 for a total annual payment of $2.55. On
this basis, taxable retail investors who own BCE shares would receive a tax
rollover of their adjusted cost base of at least two thirds, with the balance
of the deemed proceeds being treated as dividend income for tax purposes.
    Based on current market conditions and today's level of yield requirement
by investors and the EBITDA growth guidance provided by the company of 4% - 6%
for 2007, Catalyst is of the opinion that the Stapled Securities will have a
trading value of between $42.50 and $52.00 with a mid point valuation of
$47.25. Under current market conditions, Catalyst believes that the Stapled
Security would trade in the upper half of this value range over time as a
result of ongoing retail demand for quality growth/yield oriented investments.

    The conference call is available for replay at:

    Toronto replay: 416-640-1917
    Passcode 21238065 followed by the pound sign

    North American replay: 877-289-8525
    Passcode 21238065 followed by the pound sign

    This does not constitute an offer to purchase or sell securities and nor
does it constitute financial or tax advice. Investors should consult with
their financial advisors and tax advisors before taking any action.

For further information:

For further information: Catalyst Asset Management Inc., (647) 505-2224

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