Will Provide 2.5 gigabit IP link from Sudbury to Thunder Bay
Stock Symbol: MBT

TORONTO, Aug. 11 /CNW/ - MTS Allstream Inc. ("MTS Allstream") announced today that it has won a five-year contract with Hydro One Telecom to provide a 2.5 gigabit IP connection between Sudbury and Thunder Bay. The connectivity will help Hydro One Telecom, a wholly-owned subsidiary of Hydro One Inc providing telecommunications services to customers in Ontario, to deliver state-of-the-art broadband telecommunications solutions to its customers.

"Demand for high-bandwidth services is growing, and this is a demand that MTS Allstream, with its innovative, coast to cost IP-enabled network, is well positioned to meet," said Dean Prevost, President, Enterprise Solutions division, MTS Allstream. "We are pleased to work with Hydro One Telecom and provide them with a service that will serve as a foundation for reliable and innovative telecommunications services for their customers."

"This contract will position Hydro One Telecom to continue providing new and more advanced services to its customers," said Paul Marchant, President & CEO, Hydro One Telecom. "We are very excited to leverage the strength of MTS Allstream's national network, which will support the capabilities of our own network to provide services to our customer base in Ontario."

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. In 2008, MTS Allstream had 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 learn more about MTS Allstream services, markets, community commitments and record of creating shareholder value are encouraged to visit: www.mtsallstream.com.

About Hydro One Telecom Inc.

Established in 2000 as a wholly owned subsidiary of Hydro One Inc., Hydro One Telecom leverages its parent company's telecommunications assets and delivers state-of-the-art, broadband telecommunications solutions to carriers, ISPs, and large public and private sector customers.

Hydro One Telecom Inc. is a CRTC-registered, non-dominant, facilities-based carrier, providing broadband telecommunications services in Ontario with connections to Montreal and Buffalo, New York and Detroit, Michigan. Its fibre network spans over 4,000 kilometres.

Hydro One Inc. is a holding company that operates through its subsidiaries in electricity transmission and distribution and telecom businesses. One of its subsidiaries, Hydro One Networks Inc., operates one of the largest transmission and distribution systems in North America. Hydro One Inc. is wholly owned by the Ontario government.