1

This presentation contains certain forward-looking statements and there are risks that actual results may

differ materially from those contemplated by these forward-looking statements. Additional information on these risks can be found in the Company’s filings

with the Canadian securities commissions.

The Company disclaims any intention or obligation to update or revise any

forward looking statements, whether as a result of new information, future events or otherwise.

This presentation contains certain forward-looking statements and there are risks that actual results may

differ materially from those contemplated by these forward-looking statements. Additional information on these risks can be found in the Company’s filings

with the Canadian securities commissions.

The Company disclaims any intention or obligation to update or revise any

forward looking statements, whether as a result of new information, future events or otherwise.

Delivering ValueDelivering ValueCreating &Creating &

SustainablySustainably

2

Share Performance*Share Performance*

* Assumes $100 invested Jan 7/97. Includes price appreciation and dividends reinvested.**Compound Annual Growth Rate — Jan 7/1997 to Dec. 31/2004.* Assumes $100 invested Jan 7/97. Includes price appreciation and dividends reinvested.**Compound Annual Growth Rate — Jan 7/1997 to Dec. 31/2004.

CAGR 22%**

CAGR 22%**

100140180220260300340380420460500

100140180220260300340380420460500

January1997 1997 1998 1999 2000 2001 2002 2003 2004

January1997 1997 1998 1999 2000 2001 2002 2003 2004

MTSMTS S&P/TSX Comp.S&P/TSX Comp.

One CompanyOne Company

Many StrengthsMany Strengths

3

One Company Many StrengthsOne Company Many Strengths

Range of OpportunitiesRange of Opportunities

Depth of StrategyDepth of Strategy

Flexible CapabilitiesFlexible Capabilities

Solid PerformanceSolid Performance

DeliveringDelivering

Results Results

4

Transition ProgressTransition Progress

Integration on trackTraction increasing in market2004 results in line with guidance Stabilizing national division revenues

Integration on trackTraction increasing in market2004 results in line with guidance Stabilizing national division revenues

Who We AreWho We Are3RD LARGEST NATIONAL PROVIDER3RD LARGEST NATIONAL PROVIDER

Growing & profitableMarket leader

Growing & profitableMarket leader

Great innovatorStrong competitor

Great innovatorStrong competitor

MANITOBAOperationsMANITOBAOperations

NATIONALOperationsNATIONALOperations

Strong Cash Flows & Balance SheetStrong Cash Flows & Balance Sheet

5

Investment ProfileInvestment Profile

Strong, stable cash flowsStrong, stable cash flows

Attractive yieldAttractive yield

Increased growth potentialIncreased growth potential

Our VisionOur Vision

National scale and scopeNational scale and scope

Delivering profitable resultsDelivering profitable results

Next generation companyNext generation company

6

IP FoundationIP Foundation

Internet/Data

Internet/Data Digital TVDigital TV VoiceVoice Managed

ServicesManaged Services

IT Solutions

IT Solutions

Canadian Industry OverviewCanadian Industry Overview

Progress in past fostering competitionCDNA Decision — Feb. 4/05

Missed opportunity to enhance competition and discourage pricing controlCost-based pricing not extended to NexGen services

More regulatory work needed

Progress in past fostering competitionCDNA Decision — Feb. 4/05

Missed opportunity to enhance competition and discourage pricing controlCost-based pricing not extended to NexGen services

More regulatory work needed

REGULATIONREGULATION

7

Canadian Industry OverviewCanadian Industry Overview

New competitors: Cableco’s

Investment requirements?Quality of service?Customer care?

New competitors: Cableco’s

Investment requirements?Quality of service?Customer care?

LOCAL RESIDENTIAL TELEPHONYLOCAL RESIDENTIAL TELEPHONY

Manitoba DivisionManitoba DivisionWell PositionedWell Positioned

Canadian Industry OverviewCanadian Industry Overview

Opportunity to profitably grow shareIP solutions for business success

Large customersMid-market customers

Opportunity to profitably grow shareIP solutions for business success

Large customersMid-market customers

NATIONAL BUSINESS / WHOLESALE MARKETSNATIONAL BUSINESS / WHOLESALE MARKETS

Innovative Allstream SolutionsInnovative Allstream Solutions

8

Canadian Industry OverviewCanadian Industry Overview

InnovationNew services to meet customer needs

ResourcesManagement strengthFinancial strength

Brand / mind share

InnovationNew services to meet customer needs

ResourcesManagement strengthFinancial strength

Brand / mind share

SUCCESS FACTORSSUCCESS FACTORS

Nimble & AgileNimble & AgileSimple & Complex

SolutionsSimple & Complex

Solutions

National DivisionNational DivisionCOMMUNICATIONS SOLUTIONS PROVIDERCOMMUNICATIONS SOLUTIONS PROVIDER

Customers’ BusinessesCustomers’ BusinessesDelivering Value toDelivering Value to

9

ConnectivityConnectivity

Core of portfolioIncludes legacy & new servicesQuality-of-Service IP infrastructure

Core of portfolioIncludes legacy & new servicesQuality-of-Service IP infrastructure

CONNECTIVITYCONNECTIVITY

Data Network

Data Network

Internet Access

Internet Access

Voice ServicesVoice

Services

Infrastructure ManagementInfrastructure Management

Managed network solutionsEnable customers to focus on their core business

Managed network solutionsEnable customers to focus on their core business

INFRASTRUCTUREMANAGEMENT

INFRASTRUCTUREMANAGEMENT

NetworkManagement

NetworkManagement Hosting

ConvergedServices

PerimeterSecurity

10

Professional ServicesProfessional Services

Only provider with integrated Professional Services division

700 professionals

Deploy solutions for maximum customer benefit

Only provider with integrated Professional Services division

700 professionals

Deploy solutions for maximum customer benefit

PROFESSIONAL SERVICES

PROFESSIONAL SERVICES

InformationManagement

ApplicationOutsourcing

IT Consulting

InfrastructureServices

ApplicationSolutions &Integration

ProjectManagement

ApplicationSecurity

EnterpriseResourcePlanning

Customer WinsCustomer Wins

IP-MPLS Network SolutionsIP-MPLS Network Solutions

11

Customer WinsCustomer WinsWHOLESALE OPPORTUNITIESWHOLESALE OPPORTUNITIES

Strategic AllianceStrategic Alliance

Preferred service providersExtends global reachJoint customer relationships Product development

Global IP MPLS Service

Preferred service providersExtends global reachJoint customer relationships Product development

Global IP MPLS Service

Expanded CapabilitiesExpanded Capabilities

12

AT&T – Voice Services AgreementsAT&T – Voice Services Agreements

Extension to 2011Extension to 2011from 2006from 2006

National Division ProgressNational Division Progress

Sales funnel tracking well vs. planRevenues beginning to stabilize

Q4/04 sequential revenue growthAdditional customer wins

Sales funnel tracking well vs. planRevenues beginning to stabilize

Q4/04 sequential revenue growthAdditional customer wins

13

National Division StrengthsNational Division Strengths

National focus & scale National focus & scale

#2 in every major market#2 in every major market

Focus on profitable growthFocus on profitable growth

Superior wholesale strategySuperior wholesale strategy

Collaborative approachCollaborative approach

Manitoba DivisionManitoba Division

Strong profitability & cash flowsStrong profitability & cash flows

Relentless control of costsRelentless control of costs

Moving forward with AllstreamMoving forward with Allstream

Leading market positionLeading market position

14

Manitoba Division Progress ReportManitoba Division Progress Report

Consumer SpendingConsumer Spending

20022002 20032003 20042004

6% 6%

$100$100

WirelessWireless High-speedInternet

High-speedInternet

Digital TVDigital TV

Leveraging Growth OperationsLeveraging Growth Operations

15

WirelessWireless

Customer BaseCustomer Base

169,140169,140206,447206,447

234,062234,062255,657255,657

285,796285,796

20002000 20012001 20022002 20032003 20042004

Double Digit Growth In 2005Double Digit Growth In 2005

High Speed InternetHigh Speed Internet

Customer BaseCustomer Base

11,96211,962

35,94035,940

65,19365,19382,67882,678

103,613103,613

20002000 20012001 20022002 20032003 20042004

16

MTS TVMTS TV

Customer BaseCustomer Base

Jan 2003Jan 2003 Dec 2003Dec 2003 Dec 2004Dec 2004

8,6938,693

32,57832,578

200200

Surpassed 2004 TargetSurpassed 2004 Target

MTS TVMTS TV

Customer BaseCustomer Base

Jan 2003Jan 2003 Dec 2003Dec 2003 Dec 2004Dec 2004 2005E2005E

8,6938,693

32,57832,578

58,000 58,000

200200

17

Traditional OperationsTraditional Operations

LocalLocal Long Distance

Long Distance DataData

LOCAL, LD, DATA & DIRECTORYLOCAL, LD, DATA & DIRECTORY

DirectoryDirectory

Large Cash Flows & Great MarginsLarge Cash Flows & Great Margins

Local CompetitionLocal Competition

Well-positioned forCable Telephony

Well-positioned forCable Telephony

18

Manitoba Division PrioritiesManitoba Division Priorities

Win the broadband home Win the broadband home

Create/deliver repeatable packaged IP & wireless solutions to SMECreate/deliver repeatable packaged IP & wireless solutions to SME

Drive value added benefits to enterprise customersDrive value added benefits to enterprise customers

Manitoba Division StrengthsManitoba Division Strengths

Leading market positionLeading market position

Strong brand recognitionStrong brand recognition

Receptive customer baseReceptive customer base

Leading operating efficiencyLeading operating efficiency

Solid competitive positionSolid competitive position

19

2005 Financial Outlook2005 Financial Outlook

RevenuesRevenues

EBITDAEBITDA

$2.04 B - $2.08 B$2.04 B - $2.08 B

$705 M - $720 M$705 M - $720 M

EPSEPS $2.95 - $3.05$2.95 - $3.05

Free Cash FlowFree Cash Flow $280 M - $300 M$280 M - $300 M

Cash EPSCash EPS $4.80 - $4.90$4.80 - $4.90

Focus on cost leadershipFocus on cost leadership

Compete aggressivelyCompete aggressively

Invest prudentlyInvest prudently

Business Approach:Business Approach:

Today & TomorrowToday & TomorrowDelivering for the CustomerDelivering for the Customer