Allstream fibre network expansion generates more than 20 new enterprise
customer contracts in just three months

Stock Symbol: MBT

TORONTO, June 3 /CNW/ - MTS Allstream announced today that the expansion of the Allstream IP fibre network in targeted cities across Canada is gaining positive momentum. The Company said that the IP network expansion is generating solid new sales with more than 20 new contracts signed with enterprise customers such as Williamson-Dickie Canada Co., First Financial Underwriting Services Inc., Hibernia Atlantic, Delmar and OneConnect Services Inc. for IP services.

"Our national IP Connectivity portfolio, which offers a greater variety of service classes than our competitors and our underlying national fibre network are key elements that set Allstream apart. We use these as a foundation to simplify complexity and deliver reliability," said Dean Prevost, President, Allstream. "The new business we have obtained thanks to our low-cost IP fibre expansion demonstrates Allstream's success at meeting the growing business needs for advanced IP based communications products."

As announced previously, Allstream is proceeding with a targeted expansion in 2010 of its national IP fibre network into select and targeted buildings in its major markets across Canada where strong demand and opportunities exist for sales of advanced IP services and solutions.

Mr. Prevost added, "After just three months, we are pleased with the early results of our fibre expansion plan and associated sales blitz. These results show that Allstream continues to build on its leading customer satisfaction performance and on the competitiveness of its IP product portfolio."

About Allstream

Allstream is a unit of MTS Allstream Inc, 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. MTS Allstream has 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 to learn more about MTS Allstream services, markets, community commitments and record of creating shareholder value are encouraged to visit: www.mtsallstream.com.

For further information: Media: Laura Dickie, MTS Allstream Corporate Communications, [phone], [phone], [email protected]; Investors: Paul Peters, MTS Allstream Investor Relations, [phone], [email protected]