of the related risk factors and assumptions please see the section

entitled "Caution Concerning Forward-Looking Statements" later in

this release.

- Net earnings per share of $0.48, up 50%

- Sixth consecutive quarter of fewer YOY local line losses

- Stable revenue and EBITDA in-line with guidance

- Postpaid wireless net activations up 25%

MONTREAL, Quebec, May 7 /CNW Telbec/ - BCE Inc. (TSX, NYSE: BCE), Canada's largest communications company, today reported BCE and Bell results for the first quarter of 2009.

Bell reported stable revenue and EBITDA; healthy free cash flow and an increase of $119 million in net earnings applicable to common shares, up from $258 million in Q1 2008 to $377 million this quarter; its sixth consecutive quarter of improved year-over-year local line losses; and continued progress on the execution of its 5 Strategic Imperatives: Improve Customer Service, Accelerate Wireless, Leverage Wireline Momentum, Invest in Broadband Networks and Services, and Achieve a Competitive Cost Structure.

"Bell delivered operating performance and financial results in line with our guidance, despite economic pressures in the marketplace," said George Cope, President and Chief Executive Officer of BCE and Bell Canada. "The softer economy has led to more cautious consumer spending and reduced business investment. However, increased video, residential Internet and wireless postpaid activations and improved total revenue per household in the quarter underscored both the resiliency of much of Bell's business and the progress we're making in executing on our strategy."

"With measureable service improvements, network and distribution investments supporting our wireless and wireline growth, and disciplined cost management, the Bell team continues to execute on its strategic imperatives as we work to achieve our goal: To be recognized by customers as Canada's leading communications company," Mr. Cope said.

Bell today announced its latest new initiatives in support of its Strategic Imperatives, including the acquisition of the 50% stake in Virgin Mobile Canada not already owned by Bell for $142 million. Enabling Bell to more efficiently leverage Virgin's popular brand and national distribution network, this initiative complements Bell's acquisition of national consumer electronics retailer The Source announced in March of this year. The Virgin Mobile brand is expected to drive further traffic to the more than 750 The Source stores across Canada when Bell begins offering wireless, digital TV, Internet and home phone products and services in these locations by January 2010.

Bell also announced today a new agreement with TELUS Communications Company under which TELUS will distribute satellite TV service in Alberta and British Columbia under the TELUS brand. This agreement supports Bell's imperative to Leverage Wireline Momentum by expanding distribution channels for Bell's digital TV service in Western Canada.

Bell continues to work to Improve Customer Service and in the first quarter had completion rates of greater than 95% on Same Day Next Day services, experienced a 14% reduction in repair call centre volumes, reduced wireless dropped call rates in the GTA by 14%, and decreased wireless postpaid churn.

"In the context of this difficult economic climate we are pleased with our overall financial and operating metrics," said Siim Vanaselja, Chief Financial Officer of BCE and Bell Canada. "With results this quarter, we are on our way to meeting our financial guidance targets for 2009."

"We've made good progress in executing against our capital structure objectives this year. As we announced in February, we have already increased our common share dividend by 5%. We are announcing today that we have completed our normal course issuer bid ahead of schedule with the purchase of 40.0 million common shares at an average purchase price of approximately $24.65 per share. We have concluded a new 3-year $1.4 billion unsecured committed credit facility with a syndicate of financial institutions. And finally, we are confirming today that we will be self-funding our debt maturities for the balance of the year including the early redemption of BCE's Series C Notes in June," said Mr. Vanaselja.

Bell's operating revenues this quarter decreased by 0.5% to $3,623 million as growth in wireless, video, and data revenues were offset by declines in local and access, long distance, and equipment and other revenues. Excluding the impact of lower margin product sales, Bell's operating revenues grew by 0.2% this quarter.

Bell's EBITDA(1) grew by 0.3% to $1,426 million this quarter as the contribution from Bell's Wireless segment and cost savings related to our 100-day plan initiatives were offset by higher pension costs and the impact of a lower Canadian dollar. Bell's EBITDA growth would have been 1.2 percentage points higher this quarter if higher pension costs were excluded. Bell's operating income was $649 million, or 36.9% higher than the same period last year due to lower restructuring and other costs.

The Bell Wireless segment(2) had 35,000 postpaid net activations this quarter, or 25% more than last year, with postpaid churn improving to 1.2% from 1.3%. Total net activations were 30,000 reflecting a decrease of 5,000 prepaid clients compared to a net gain of 6,000 prepaid clients in Q1 2008. Total Bell Wireless operating revenues grew by 3.5% and Bell Wireless EBITDA grew by 5.9%. EBITDA margin on wireless service revenues increased 1.1 percentage points to 44%. Blended ARPU decreased by $0.80 to $51.52 as aggressive pricing in the highly competitive discount segment and increased economic pressures more than offset data revenue growth of 36%.

The Bell Wireline segment had its sixth consecutive quarter of improvement in residential local line (NAS) losses, which declined by 78,000 this quarter, or 26.4% fewer than the decline of 106,000 in Q1 2008. Business NAS declined by 26,000 this quarter compared to a decline of 13,000 last year reflecting the continued softening of the SMB market in Ontario and Quebec. Bell Wireline operating revenues and EBITDA decreased by 2.4% and 2.0% respectively, as more cautious business investment adversely affected revenue performance while revenue and EBITDA growth in video remained robust.

Bell invested $482 million of capital this quarter, an increase of 5.7% compared to the same period last year. Capital expenditures supported Bell's strategic imperatives with focused investment on enhancing the wireless network, including the deployment of an HSPA 3G network that is expected to be in place nationally by early 2010, and the continuing expansion of the Fibre-to-the-node (FTTN) program.

BCE's cash from operating activities this quarter was $924 million, or 2.4% higher than the same period last year. Free cash flow(3) was well on track at $272 million this quarter, although 10.5% lower than the same period last year as higher cash from operating activities was offset by the timing of capital expenditures.

BCE's net earnings applicable to common shares this quarter were $377 million, or $0.48 per share, compared to $258 million, $0.32 per share, for the same period last year. EPS included lower restructuring and other costs of $0.09 per share this quarter compared to $0.25 per share for Q1 2008. EPS this quarter also included the impact of fewer outstanding BCE common shares as a result of share purchases made through the normal course issuer bid (NCIB) announced last December. BCE's Adjusted EPS(4) was $0.57 this quarter, unchanged compared to Q1 2008.

Financial Highlights

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($ millions except per share amounts) Q1 2009 Q1 2008 % change

(unaudited)

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Bell(i) Operating Revenues $ 3,623 $ 3,640 (0.5%)

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Bell EBITDA $ 1,426 $ 1,422 0.3%

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Bell Operating Income $ 649 $ 474 36.9%

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BCE Operating Revenues $ 4,342 $ 4,360 (0.4%)

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BCE EBITDA $ 1,757 $ 1,751 0.3%

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BCE Operating Income $ 829 $ 650 27.5%

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BCE Cash From Operating Activities $ 924 $ 902 2.4%

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Free Cash Flow $ 272 $ 304 (10.5%)

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BCE Net Earnings Applicable

to Common Shares $ 377 $ 258 46.1%

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BCE EPS $ 0.48 $ 0.32 50.0%

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BCE Adjusted EPS $ 0.57 $ 0.57 0.0%

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(i) Bell includes the Bell Wireless and Bell Wireline segments.

BCE's operating revenues declined by 0.4% to $4,342 million this quarter due to lower revenues at Bell and Bell Aliant.

BCE's operating income increased to $829 million this quarter, or by 27.5%, due to higher operating income at Bell and Bell Aliant. BCE's EBITDA increased 0.3% to $1,757 million this quarter due to EBITDA growth at Bell and Bell Aliant.

Bell Wireless Segment

The Bell Wireless segment had reasonable operating results with continuing strong growth in wireless data revenues.

- Total Bell Wireless operating revenues grew by 3.5% to $1,079 million

this quarter due to higher wireless service and product revenues.

Wireless service revenues increased by 3.1% to $986 million due to a

larger subscriber base partly offset by lower ARPU. Wireless product

revenues increased by 12.2% to $83 million due to higher gross

activations and an improving mix of higher end handsets.

- Postpaid and prepaid ARPU decreased by $1.93 and $1.12 to $62.34 and

$15.38, respectively, due to aggressive pricing in the discount segment

and lower usage as customers reacted to a weakening economy, partly

offset by growth in wireless data revenues of 36%. Blended ARPU

decreased by $0.80 to $51.52.

- Bell Wireless operating income grew by 2.4% to $300 million this

quarter as a result of higher EBITDA. Bell Wireless EBITDA grew by

5.9% to $434 million this quarter due to higher revenues and lower

subscriber retention costs, partly offset by higher pension costs.

EBITDA flow-through was 80% this quarter.

- EBITDA margins on wireless service revenues increased to 44% this

quarter, or by 1.1 percentage points, when compared to the same period

last year.

- Total gross activations were 366,000 this quarter, an increase of

4.3% from Q1 of last year.

- Postpaid net activations grew by 7,000 to 35,000 this quarter due to

an increase in postpaid gross activations and lower churn while our

prepaid client base decreased by 5,000 compared to an increase of

6,000 last year due to higher churn. Total net activations were 30,000

this quarter, 11.8% fewer than last year.

- The Bell Wireless client base reached 6,527,000 at the end of the

quarter.

- Postpaid churn improved to 1.2% from 1.3% last year while prepaid churn

increased to 2.9% from 2.8%. Blended churn was stable at 1.6%.

- Cost of acquisition this quarter was essentially unchanged at $397 per

gross activation compared to $396 per gross activation last year.

Bell Wireline Segment

The Bell Wireline segment continued to reduce the number of residential NAS losses and showed continued improvement in video net additions this quarter.

- Bell Wireline operating revenues decreased by 2.4% to $2,592 million

this quarter as gains in video and data revenues were more than offset

by decreases in local and access, long distance and equipment and other

revenues. Although a large part of our residential business is

exhibiting resiliency during this weaker economy, more cautious

business customer investment has adversely affected the revenue

performance of our SMB and Enterprise units.

- Bell Wireline operating income increased by 92.8% to $349 million this

quarter as lower restructuring and other charges more than offset lower

EBITDA.