BCE announces plan to return value to its shareholders

    Reinstates common share dividend, announces 5% NCIB share buyback
    Bell continues move forward as a competitive, customer-focused service
    provider

    MONTREAL, Québec, Dec. 12 /CNW Telbec/ - Following the termination of the
proposed privatization agreement by BCE in accordance with its terms, BCE Inc.
(TSX, NYSE: BCE) today announced plans to return value to BCE shareholders
with a reinstated common share dividend and a new Normal Course Issuer Bid
(NCIB) common share buyback program.
    Bell Canada will also continue its move forward as a re-energized company
with a clear goal - to be recognized by customers as Canada's leading
communications company - and the customer-focused strategy and structure
required to achieve it.
    "Our enhanced operational performance in recent months confirms that Bell
is competing as a cost-effective and customer-focused communications company.
The Bell team has implemented a range of programs to deliver a better customer
experience, and we are eager to build on the clear progress we've already
made," said George Cope, President and CEO of Bell and BCE. "Given this
steadily improving business trajectory, we view the dividend and share buyback
initiatives announced by BCE today as very attractive to our shareholders now
and going forward."
    "The BCE Board of Directors is in full support of the operational and
investment strategy and capital market approach implemented by our CEO George
Cope and his executive team," said Richard J. Currie, BCE and Bell Canada
Board Chair.

    Bell's move forward

    In July 2008, Bell instituted a new strategy and a 100-day plan to
enhance its customer service capability, competitiveness and cost efficiency.
With a strict focus on its core business as a communications service provider,
Bell is executing on 5 Strategic Imperatives - Improve Customer Service,
Accelerate Wireless, Leverage Wireline Momentum, Invest in Broadband Networks
& Services, and Achieve a Competitive Cost Structure - in order to deliver a
better customer experience.
    Beginning in July, Bell announced several significant operational
initiatives supporting its Strategic Imperatives, including an organizational
restructuring that reduced the number of management layers at Bell, bringing
all team members closer to the customer, while reducing the number of
management positions by 15%; ambitious new service programs such as Same Day
Next Day service and Express Install; major investments in its wireless and IP
fibre networks, as well as its service infrastructure; and a bold new brand
that highlights Bell's move forward in the business and consumer marketplaces.
    Bell's cost reduction initiatives will result in savings of approximately
$400 million, an enhanced competitive position and, as evidenced by the
progress shown in the Company's third-quarter (Q3) results, steadily improving
operational and financial performance supporting Bell's future as a public
company, and the shareholder value initiatives announced today.

    Strong balance sheet and liquidity

    Maintaining a public company capital structure, underpinned by strong
investment grade credit metrics, BCE is retaining high levels of financial
liquidity to fund its maturing debt obligations given today's market
environment. The Company also today announced new initiatives - a reinstated
common share dividend and an NCIB program - dedicated to returning value to
its shareholders.

    Reinstated common share dividend

    BCE has reinstated its common share dividend and declared this morning
its fourth quarter of 2008 common dividend. For shareholders of record as of
December 23, 2008, a quarterly dividend per share of $0.365 will be paid on
January 15, 2009.

    NCIB share buyback program

    BCE will return capital to shareholders in the form of a Normal Course
Issuer Bid (NCIB). To that end, BCE will repurchase up to approximately 5% of
outstanding common shares, or about 40 million common shares. The NCIB is
subject to approval by the Toronto Stock Exchange (TSX) and will be carried
out in accordance with the requirements of the TSX and applicable laws.
    "A share buyback is the most efficient method of distributing capital to
our shareholders, particularly given the current valuation metrics of the
Company," said Siim Vanaselja, Chief Financial Officer of BCE. "The share
buyback will be accretive to earnings per share and cash flow. Our improving
operational progress provides the Company with confidence in our ability to
return value to shareholders now and into the future."

    Annual Shareholder Meeting

    The Company's shareholders' meeting will be held on Tuesday February 17,
2009 in Montréal.
    At this meeting, the Company will further outline Bell's goal and 5
Strategic Imperatives and BCE's capital structure and shareholder value
initiatives, including its dividend payout policy.

    Return of share certificates

    BCE has advised Computershare Investor Services Inc. that the
privatization transaction will not proceed. As a result, holders of BCE shares
will maintain their status as BCE shareholders. Computershare will return to
depositing shareholders a share certificate representing their deposited BCE
common and preferred shares and any ancillary documents it received from each
such shareholder by first class mail as soon as practicable. For more
information, investors may contact Computershare at 1-800-564-6253.

    Termination of cash tender offers for certain outstanding debt securities

    In addition, BCE and Bell Canada announced today that they have
terminated their previously announced conditional cash tender offers for
outstanding BCE 7.35% Series C Notes due October 30, 2009 (the "BCE Notes"),
and outstanding Bell Canada 6.15% Debentures, Series M-2, due June 15, 2009
and 5.50% Debentures, Series M-16, due August 12, 2010 (the "Bell
Debentures").
    BCE and Bell Canada, respectively, have notified the depositaries of the
termination of the tender offers, that they will not accept for payment or pay
for any BCE Notes or Bell Debentures deposited to the tender offers, and
instructed the depositaries to promptly return all BCE Notes and Bell
Debentures deposited by the tendering holders.

    Caution Concerning Forward-Looking Statements

    Certain statements made in this news release, including, but not limited
to, statements relating to BCE's expected operational and financial
performance, as well as BCE's objectives concerning the distribution of
capital to shareholders, and other statements that are not historical facts,
are forward-looking statements and are subject to important risks,
uncertainties and assumptions, and our board's discretion in respect of the
declaration of dividends.
    The results or events predicted in these forward-looking statements may
differ materially from actual results or events. As a result, we cannot
guarantee that any forward-looking statement will materialize and you are
cautioned not to place undue reliance on these forward-looking statements. The
forward-looking statements contained in this news release are made as of the
date of this release and, accordingly, are subject to change after such date.
Except as may be required by Canadian securities laws, we do not undertake any
obligation to update or revise any forward-looking statements contained in
this news release, whether as a result of new information, future events or
otherwise. Except as otherwise indicated by BCE, these statements do not
reflect the potential impact of any non-recurring or other special items or of
any dispositions, monetizations, mergers, acquisitions, other business
combinations or other transactions that may be announced or that may occur
after the date hereof.
    Risks and assumptions that could cause actual results or events to differ
materially from current expectations include, among others: general economic
and credit market conditions; failure to achieve our business objectives;
increased pension fund contributions; the intensity of competitive activity
and the increase in wireless competitive activity that could result from
Industry Canada's licensing of AWS spectrum; our ability to respond to
technological changes and rapidly offer new products and services; events
affecting the functionality of, and our ability to protect, maintain and
replace, our networks, IT systems and software; labour disruptions; the
potential adverse effects on our Internet and wireless businesses of the
significant increase in broadband demand; events affecting the operations of
our service providers operating outside Canada; our ability to raise the
capital we need to implement our business plan; our ability to discontinue
certain traditional services as necessary to improve capital and operating
efficiencies; regulatory initiatives or proceedings, litigation and changes in
laws or regulations; increased regulation banning the use of wireless devices
while driving; launch and in-orbit risks of satellites used by Bell TV;
competition from unregulated U.S. direct-to-home satellite television services
sold illegally in Canada and the theft of our satellite television services;
BCE's dependence on its subsidiaries' ability to pay dividends; delays in
completion of the high speed packet access overlay of our wireless network;
and health concerns about radio frequency emissions from wireless devices.
    For additional information with respect to certain of these and other
assumptions and risks, please refer to BCE's 2007 annual management's
discussion and analysis ("MD&A") dated March 5, 2008 included in the Bell
Canada Enterprises 2007 Annual Report, BCE's 2008 First Quarter MD&A dated May
6, 2008, BCE's 2008 Second Quarter MD&A dated August 5, 2008 and BCE's 2008
Third Quarter MD&A dated October 28, 2008, all filed by BCE with the Canadian
securities commissions (available at www.sedar.com) and with the U.S.
Securities and Exchange Commission (available at www.sec.gov). These documents
are also available on BCE's website at www.bce.ca.

    About BCE

    BCE is Canada's largest communications company, providing the most
comprehensive and innovative suite of communication services to residential
and business customers in Canada. Under the Bell brand, the Company's services
include local, long distance and wireless phone services, high-speed and
wireless Internet access, IP-broadband services, information and
communications technology services (or value-added services) and
direct-to-home satellite and VDSL television services. BCE also holds an
interest in CTVglobemedia, Canada's premier media company. BCE shares are
listed in Canada and the United States. For corporate information on BCE,
please visit www.bce.ca.

For further information: Mark Langton, Bell Media Relations, (416)
581-4339, mark.langton@bell.ca; Thane Fotopoulos, BCE Investor Relations,
(514) 870-4619, thane.fotopoulos@bell.ca