MTS Allstream Welcomes Federal Government Intent to Lift Foreign Ownership
Restrictions in Canadian Telecom

Stock Symbol: MBT

OTTAWA, March 3 /CNW/ - MTS Allstream, one of Canada's leading communications solutions providers, welcomes the Federal Government's announcement of its intention to lift the restrictions on foreign investment applicable to telecommunications carriers and to thereby open up access to capital and foreign investment for Canadian telecommunications firms during today's Speech from The Throne in Ottawa.

"Elimination of the foreign investment restrictions is a key ingredient to building a truly competitive digital economy characterized by the early offer and adoption of new technology across the economy," said Chris Peirce, Chief Corporate Officer, MTS Allstream. "We have consistently supported liberalization, most recently recommended by the Wilson Competition Policy Review Panel. As a company committed to offering choice and innovation to Canadians and Canadian businesses we believe removing barriers to investment will make Canada more competitive and bring new opportunities for investment and faster innovation to the Canadian economy. We look forward to learning the details on how the government intends to move forward with this important initiative."

About MTS Allstream

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