Allstream and AT&T Corp. Extend Partnership

Allstream (www.allstream.com), one of Canada's leading national communication solutions providers, today announced that it has further extended its Master Services Agreement (MSA) with AT&T Corp. Until June 30, 2011. As announced on July 15, 2004, the previous agreement was to expire on December 31, 2006.

"We're pleased to extend these agreements until 2011," said John MacDonald, President, Allstream. "This extension supports Allstream and
AT&T Corp.'s relationship and demonstrates Allstream's commitment to deliver seamless services for current and future customers."

The MSA provides continuity for certain Allstream voice services and
features built on AT&T capabilities and technology. It also will support the
interface arrangements between the two companies.

In addition, Allstream and AT&T Corp. have extended their AT&T North
American Voice Services (AT&T NAVS) agreement to expire at the same time.

AT&T NAVS offers customers one contract and a single point of contact for
voice services in Canada and the U.S.

Allstream is a leading communication solutions provider with a     
world-class portfolio of Connectivity, Infrastructure Management and
Information Technology Services.

Allstream is a division of Manitoba Telecom Services Inc. (MTS), Canada's third largest communications provider with 7,000 dedicated employees focused on delivering outstanding value to its customers.

MTS has an extensive broadband fibre-optic network  spanning more than 18,800 kilometres, and provides international connections through strategic partnerships and interconnection agreements with other international service providers.