MTS Allstream plans to make multi-year $125 million fibre to the home
investment in Manitoba

Investment program expected to bring state of the art technologies to 65% of Manitoba households by 2015

Stock Symbol: MBT

WINNIPEG, Aug. 6 /CNW/ - MTS Allstream announced today that it plans to invest $125 million over the next five years as part of an accelerated deployment of its fibre to the home network, named FiON, in Manitoba. By the end of 2015, MTS expects to deploy fibre to about 120,000 homes in close to 20 Manitoba communities such as Steinbach, Thompson, The Pas and in areas of Winnipeg. FiON will enable MTS to provide its industry-leading MTS Ultimate TV service and very high-speed Internet services in those communities.

"MTS Allstream has a track record of making the investments needed to maintain its competitive leadership in Manitoba," said Kelvin Shepherd, President, MTS. "MTS already delivers some of the most advanced Internet and television services in Canada, and this investment will position us to continue that leadership. Together with our existing high speed VDSL networks in Winnipeg, Brandon and Portage, this expanded fibre deployment is expected to make available advanced broadband and television capabilities to about 65% of Manitoba homes. This extended coverage with state of the art technologies will be unique and market-leading in Canada."

Customers on MTS's FiON network have access to the most advanced consumer telecommunications services that MTS offers today including high-speed Internet services with speeds up to 25 Mbps and MTS Ultimate TV. FiON also has great potential for exciting future development with future broadband speeds of over 100 Mbps.

MTS was the first in Manitoba to launch a fibre to the home network this January in the Waverley West neighbourhood of Winnipeg and announced in April that it would be expanding the initiative to include the City of Selkirk along with an adjacent portion of St. Andrews and St. Clements. Teams will continue to convert Selkirk residential customers to the new network throughout 2010 with plans to have the network fully deployed by 2011.

Additional details on specific communities to receive FiON service under this expanded program will be announced as deployment plans are finalized for each community.

About MTS Allstream

MTS Allstream Inc. is 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 Toronto Stock Exchange (trading symbol: MBT). Customers, stakeholders and investors who want to learn more about MTS Allstream are encouraged to visit: www.mtsallstream.com.

Forward-looking Statements Disclaimer

This news release includes forward-looking statements and information (collectively, the "statements") about our corporate direction, business opportunities, operations, financial objectives, planned activities, future financial results and performance that are subject to risks, uncertainties and assumptions. As a consequence, actual results in the future may differ materially from any conclusion, forecast, anticipation or projection in such forward-looking statements. Examples of statements that constitute forward-looking information may be identified by words such as "believe", "expect", "project", "should", "anticipate", "could", "target", "forecast", "intend", "plan", "outlook", "see", "set", "pending", and other similar terms.

Factors that could cause anticipated opportunities and actual results to differ materially include, but are not limited to, matters identified in the "Risks and Uncertainties" section and elsewhere in our most recent annual MD&A and any subsequent quarterly MD&As, as well as our most recent Annual Information Form, all of which are available on SEDAR at www.sedar.com.

Please note that forward-looking statements reflect our expectations as at the date hereof. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.

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