Click here to review an illustration of after-tax benefits of conversion to Aliant shareholders

What are the benefits of having created Bell Aliant?
Success in the telecommunications business is greatly influenced by scale. By combining our assets – Aliant’s wireline telecommunications operation in Atlantic Canada, information technology operation and other operations with Bell Canada’s regional wireline telecommunications operation in Ontario and Quebec, and Bell Canada’s majority interest in the Bell Nordiq Partnerships – Bell Aliant is one of North America’s largest regional telecommunications service providers.  The combined business operations are competitive in scale and scope, with diversified geographic markets, market profile and customer base.

From an investment perspective, the Fund will seek to increase its cash distributions by achieving revenue growth through improved penetration of Internet and value added services, realizing cost synergies and lowering cost structures through economies of scale, as well as considering future acquisition opportunities.

What happened to my Aliant common shares that I did not sell prior to the formation of Bell Aliant?
As a result of the Arrangement, Aliant common shares held by the public have been automatically exchanged for Bell Aliant units, effective at the close of business Friday, July 7, 2006. A letter of transmittal will be sent to Aliant shareholders requesting the return of Aliant share certificates in exchange for a certificate representing the applicable number of Bell Aliant units. The Bell Aliant units began trading on the Toronto Stock Exchange at the commencement of trading on July 10, 2006 with the trading symbol “BA.UN”.

Holders of Aliant common shares (other than BCE and its affiliates) were entitled to exchange each Aliant common share for one Bell Aliant Fund unit.  Each unit gives the holder an undivided beneficial interest in the Fund and the Fund’s distributions. The Fund will indirectly hold an interest in the Bell Nordiq Partnerships and in the partnerships and corporations that will own and operate the combined business contributed by Aliant and Bell Canada.

If you were a registered Aliant shareholder holding 25 or fewer Aliant common shares, or a resident of the United States, you were required to make an election if you wished to receive Fund units in exchange for your Aliant common shares.  If you did not make the required election, Fund units that would otherwise have been credited to you will be aggregated with those of other common shareholders who did not elect to receive Fund units, and sold in the market, and you will receive a cheque for your pro rata share of the net cash proceeds of such sales (net of any applicable withholding taxes).

To receive further information on your account, please contact Bell Aliant Investor Relations.

How will the distributions for Bell Aliant be paid?
It is expected that the Fund will make monthly cash distributions to its unitholders.  These distributions are initially expected to be approximately $0.2283 per month (approximately $2.74 per year) per Fund unit.  The Fund currently expects a payout ratio of approximately 90 per cent of its distributable cash flow.   

How much of Bell Aliant will BCE and its affiliates own?
Upon closing of the income trust transaction on July 7, 2006, BCE and its affiliates owned approximately 73.5 per cent of the Fund (on a fully-diluted basis) and the other holders of Aliant common shares owned approximately 26.5 per cent.  BCE has announced that following completion of the income trust transaction, it currently intends to distribute some of its Fund units by way of a return of capital to holders of its common shares.  This distribution is currently expected to reduce the fully diluted Fund ownership position of BCE and its affiliates to approximately 45 per cent.   

I hold Aliant preferred shares. When the income trust transaction is completed, what will I receive?
Aliant preferred shares will be redeemed in accordance with their terms on June 30, 2006.

Who are the Trustees of Bell Aliant?
Click here.

Does Bell Aliant have investment grade credit ratings?
Yes.  Bell Aliant’s main operating entity, Bell Aliant Regional Communications, Limited Partnership, will maintain investment grade ratings.  Dominion Bond Rating Service has indicated a preliminary rating for the Limited Partnership of ‘‘BBB (high)’’ on long-term debt and ‘‘R-1(low)’’ on short-term debt.  We have received preliminary indications from Standard & Poor’s that the Limited Partnership will carry a rating of ‘‘BBB/Stable’’ on its debt.

What is Bell Aliant’s stability rating?
The Fund has received stability ratings of STA-2 (High) from Dominion Bond Rating Service and SR-2/Stable Outlook from Standard & Poor’s.

What is the conversion price of Aliant shares to the Bell Aliant units that I should use as my new cost base?
The conversion price of Aliant shares is $33.36 which is a five day volume weighted average price ending July 4, 2006.

Will there be a Dividend Reinvestment Plan for Bell Aliant units?
Bell Aliant unit holders that were previously enrolled in the DRP plan automatically converted to the Bell Aliant Distribution Reinvestment and Optional Purchase Plan.  CIBC Mellon will be mailing new plan details to all unit holders with additional information on the DRP plan.

Who has to complete the letter of transmittal?
All shareholders that hold a physical certificate for Aliant, Bruncor, NBTel, Island, MT&T or NewTel shares are required to complete the letter of transmittal and return it with the original share certificate to CIBC Mellon to receive the new Bell Aliant unit certificate.  The turn around time on the replacement certificate is approximately four weeks and it is suggested that your package is sent by registered mail. 

What is the conversion rate from shares to units?

The conversion rate from shares to units is as follows: