1

Safe HarbourSafe Harbour

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.

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Third LargestThird LargestNational ProviderNational Provider

Optimize BusinessOptimize BusinessCreate ValueCreate Value

Deliver IP ServicesDeliver IP Services

Corporate PrioritiesCorporate Priorities

3

Deliver IP ServicesDeliver IP Services

EdmontonEdmonton

St. John’sSt. John’s

HalifaxHalifax

New YorkNew YorkBuffaloBuffalo

ChicagoChicago

DetroitDetroitLondonLondon

HamiltonHamilton GTAGTA

QuebecQuebec

HallHallSudburySudburyOttawaOttawa

MontrealAreaMontrealArea

ChamplainChamplain

Thunder BayThunder Bay

WinnipegWinnipegReginaRegina

SaskatoonSaskatoonCalgaryCalgaryKamloopsKamloopsBurnabyBurnabyVancouverVancouver

VictoriaVictoria

SeattleSeattle SpokaneSpokaneRichmondRichmond

EdmontonEdmontonEdmontonEdmonton

Fibre RouteFibre Route

Network Access PointNetwork Access PointU.S. Network Access PointsU.S. Network Access Points

Ranked #2 In Business MarketsRanked #2 In Business Markets

100,000 Business Customers100,000 Business Customers29 City Networks29 City Networks

8 U.S. Connections8 U.S. Connections

19,000 Km19,000 Km Fiber-Optic NetworkFiber-Optic Network

Optimize BusinessOptimize Business

Capitalize on synergy opportunitiesCapitalize on synergy opportunitiesGain efficiencies of scale & scopeGain efficiencies of scale & scope

Strengthen cost structureStrengthen cost structure

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Niche PlayersNiche Players

3 National3 National

Entering MarketEntering Market

PlayersPlayers

Competitive LandscapeCompetitive Landscape

StrengtheningStrengtheningBalance SheetsBalance Sheets

Broadband IP EvolutionBroadband IP EvolutionCatalyst for ChangeCatalyst for Change

CustomersCustomers RegulatorsRegulatorsService ProvidersService ProvidersHigher

Expectations& Demands

Higher Expectations& Demands

Foster Competition

Foster Competition

New Investment Requirements

New Investment Requirements

5

CapabilitiesCapabilitiesExecutionExecution

VisionVision

VisionVision

Delivering new IP-services to national business marketLead the Manitoba market

Delivering new IP-services to national business marketLead the Manitoba market

6

CapabilitiesCapabilities

Leading edge network & service approachEntrepreneurial & results-oriented team

Leading edge network & service approachEntrepreneurial & results-oriented team

ExecutionExecution

Strong track recordPragmatic thinkingPrudent approach

Strong track recordPragmatic thinkingPrudent approach

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Organizational StructureOrganizational Structure

Cheryl BarkerCheryl BarkerPresidentPresident

John MacDonaldJohn MacDonaldPresidentPresident

MANITOBA OPERATIONSMANITOBA OPERATIONSNATIONAL OPERATIONSNATIONAL OPERATIONS

MTSMTS

CEOCEOBill FraserBill Fraser

$40M Annual Operating Synergies

$40M Annual Operating Synergies

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Infrastructure ManagementInfrastructure Management

Information TechnologyInformation Technology

ConnectivityConnectivity

National Service PortfolioNational Service Portfolio

National OperationsNational Operations

7 new services introduced12 new services to be launched in 2004

Fully managed enterprise IP telephony solutionWholesale VoIP access

Sales quotas & bookings on track

7 new services introduced12 new services to be launched in 2004

Fully managed enterprise IP telephony solutionWholesale VoIP access

Sales quotas & bookings on track

Next Generation ProductsNext Generation Products

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Looking AheadLooking Ahead

Build ValueBuild Value

Manitoba OperationsManitoba Operations

(%)(%)

Wireless GrowthWireless Growth RevenueRevenue CustomersCustomers

*At June 30.*At June 30.

11.611.613.913.9

16.016.014.014.0

22.122.1

13.413.49.29.2 10.310.3

20012001 20022002 20032003 2004*2004*

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Manitoba OperationsManitoba OperationsHigh-Speed Internet Customers*High-Speed Internet Customers*

11,15711,157

34,01534,015

61,62861,62877,64377,643

86,15686,156

20002000 20012001 20022002 20032003 2004**2004**

Consumer Market Share >50%Consumer Market Share >50%* At December 31 **At June 30* At December 31 **At June 30

Manitoba OperationsManitoba OperationsDigital TV SubscribersDigital TV Subscribers

Jan.2003Jan.2003

Dec. 2003Dec. 2003

June2004June2004

2004E2004E

28,000+28,000+

200200

8,6938,693

19,97219,972

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Manitoba OperationsManitoba Operations

LocalLocal Long DistanceLong Distance DirectoryDirectory

Traditional ServicesTraditional Services

Issued $350 M in long-term debtSolid credit ratingsReached settlement with Bell CanadaConcluded sale of investment in Bell West

Issued $350 M in long-term debtSolid credit ratingsReached settlement with Bell CanadaConcluded sale of investment in Bell West

Progress ReportProgress Report

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Launched substantial Issuer BidApproximately $800 MPrice range $43 to $48 per shareOffer closing September 21, 2004

Launched substantial Issuer BidApproximately $800 MPrice range $43 to $48 per shareOffer closing September 21, 2004

Progress ReportProgress Report

Financial Performance ManitobaFinancial Performance Manitoba

* 2002 excludes restructuring charge ** 2003 excludes restructuring charges* 2002 excludes restructuring charge ** 2003 excludes restructuring charges

($)($)

19971997 19981998 19991999 20002000 20012001 2002*2002* 2003**2003**

($M)($M)

00100100200200300300400400500500600600700700800800900900

0.000.00

0.500.50

1.001.00

1.501.50

2.002.00

2.502.50

RevenuesRevenues EBITDAEBITDA EPSEPS

Positioned for Long-Term GrowthPositioned for Long-Term Growth

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Proforma* Financial OutlookProforma* Financial Outlook

RevenueRevenue

EBITDAEBITDA

Free Cash Flow Free Cash Flow

$2.0-$2.1 B$2.0-$2.1 B

$670-$680 M$670-$680 M

$265-$295 M$265-$295 M

Capital SpendingCapital Spending $315 M$315 M

Cash EPS**Cash EPS** $4.15-$4.30$4.15-$4.30

EPSEPS >$2.75>$2.75* Assumes Allstream and MTS existed as one company on January 1, 2004.Excludes one-time costs for the acquisition of Allstream and the special payments for the pension plans' unfunded positions.** EPS plus future taxes.

* Assumes Allstream and MTS existed as one company on January 1, 2004.Excludes one-time costs for the acquisition of Allstream and the special payments for the pension plans' unfunded positions.** EPS plus future taxes.

Debt PortfolioDebt Portfolio

Total MTN’s: $811 MTotal MTN’s: $811 M

60.160.1 48.148.1

106.6106.689.789.7

220.0220.0200.0200.0

11.911.9

75.075.0

$M$M

Current Maturity ProfileCurrent Maturity Profile

-10-10

4040

9090

140140

190190

240240

20042004 20052005 20062006 20072007 20082008 20092009 20102010 20142014

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40.840.836.836.8 34.134.1 31.331.3 29.729.7 30.130.1 37.337.334.734.739.139.1

Balance Sheet StrengthBalance Sheet Strength

%%

*Proforma*Proforma

Debt to Capital RatioDebt to Capital Ratio

00

2020

4040

6060

8080

100100

1996*1996* 19971997 19981998 19991999 20002000 20012001 20022002 20032003 2004*2004*

MTS Financial RatiosMTS Financial Ratios

Debt RatioDebt Ratio

Debt/EBITDA Debt/EBITDA

EBITDA CoverageEBITDA Coverage

EBIT CoverageEBIT Coverage

37.3%37.3%

13.5x13.5x

1.2x1.2x

6.6x6.6x

40.8%40.8%

11.9x11.9x

1.4x1.4x

6.1x6.1x

Pro FormaDec. 31/04Pro FormaDec. 31/04Dec. 31/03Dec. 31/03

MTS IS COMMITTED TO CONTINUING ITS HISTORY OF STRONG RATIOS

MTS IS COMMITTED TO CONTINUING ITS HISTORY OF STRONG RATIOS

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MTS Telco ComparablesMTS Telco Comparables

MTS**MTS**

BCE*BCE*

Aliant*Aliant*

Telus*Telus*

*Based on December 31, 2003 balance sheet & 2004 estimates for EBITDA & EBIT(excludes recent Telus bid for Microcell)**Pro-forma December 31, 2004

*Based on December 31, 2003 balance sheet & 2004 estimates for EBITDA & EBIT(excludes recent Telus bid for Microcell)**Pro-forma December 31, 2004

BBB+/BBB High

BBB+/BBB High

A/AA/A

A-/AA-/A

BBB/BBBBBB/BBB

40.8%40.8%

49.5%49.5%

31.5%31.5%

51.0%51.0%

1.4x1.4x

1.8x1.8x

1.5x1.5x

2.3x2.3x

11.9x11.9x

7.4x7.4x

10.2x10.2x

4.6x4.6x

6.1x6.1x

4.2x4.2x

5.6x5.6x

2.1x2.1x

DebtRatioDebtRatio

Debt/EBITDADebt/

EBITDAEBITDACoverageEBITDACoverage

EBITCoverage

EBITCoverage

Debt Rating(S&P/DBRS)Debt Rating(S&P/DBRS)

Financial FlexibilityFinancial Flexibility

Operating FacilityOperating Facility

Fully Backstopped Commercial Paper Fully Backstopped Commercial Paper

Medium Term Note Program*Medium Term Note Program*

$50 M$50 M

$350 M$350 M

$150 M$150 M

$0 M$0 M

$0 M$0 M

$0 M$0 M

At Sept. 16At Sept. 16CapacityCapacity

*Refiled Shelf Prospectus*Refiled Shelf Prospectus

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Excellent financial positionExcellent financial position

Solid credit ratings & interest coverage ratiosSolid credit ratings & interest coverage ratios

Leading edge networkLeading edge network

Growing portfolio of IP servicesGrowing portfolio of IP services

Strong national growth opportunityStrong national growth opportunity

MTS StrengthsMTS Strengths

Strong, skilled employee baseStrong, skilled employee base

Experienced management teamExperienced management team