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<SEC-DOCUMENT>0001206212-06-000235.txt : 20061011
<SEC-HEADER>0001206212-06-000235.hdr.sgml : 20061011
<ACCEPTANCE-DATETIME>20061011125050
ACCESSION NUMBER:		0001206212-06-000235
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20061011
FILED AS OF DATE:		20061011
DATE AS OF CHANGE:		20061011

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BCE INC
		CENTRAL INDEX KEY:			0000718940
		STANDARD INDUSTRIAL CLASSIFICATION:	TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813]
		IRS NUMBER:				99999999
		STATE OF INCORPORATION:			A8
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-08481
		FILM NUMBER:		061139601

	BUSINESS ADDRESS:	
		STREET 1:		1000 DE LA GAUCHETIERE OUEST
		STREET 2:		BUREAU 4100 MONTREAL
		CITY:			QUEBEC CANADA
		STATE:			A8
		ZIP:			H3B 4Y7
		BUSINESS PHONE:		5143977000

	MAIL ADDRESS:	
		STREET 1:		1000 DE LA GAUCHETIERE OUEST
		STREET 2:		BUREAU 4100 MONTREAL
		CITY:			QUEBEC CANADA
		STATE:			A8
		ZIP:			H3B 4Y7

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BELL CANADA ENTERPRISES INC
		DATE OF NAME CHANGE:	19880111
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>m33317ore6vk.htm
<DESCRIPTION>FORM 6-K
<TEXT>
<HTML>
<HEAD>
<TITLE>e6vk</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">








<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>






<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>WASHINGTON, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 6-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>REPORT OF FOREIGN PRIVATE ISSUER</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt">Pursuant to Rule&nbsp;13a-16 or 15d-16 under<BR>
the Securities Exchange Act of 1934
</DIV>
<P align="center" style="font-size: 6pt">&nbsp;

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">For the month of: <B>October&nbsp;2006</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">Commission File Number: <B>1-8481</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<P align="center" style="font-size: 6pt">&nbsp;

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>BCE Inc.</B></DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 3pt"><I>(Translation of Registrant&#146;s name into English)</I>
</DIV>

<P align="center" style="font-size: 6pt">&nbsp;

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>1000, rue de La Gaucheti&#232;re Ouest, Bureau 3700, Montr&#233;al, Qu&#233;bec H3B 4Y7, (514)&nbsp;397-7000</B><BR>
<I>(Address of principal executive offices)</I>
<P align="center" style="font-size: 6pt">&nbsp;

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate
by check mark whether the Registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="70%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">Form&nbsp;20-F <FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Form&nbsp;40-F <FONT face="Wingdings">&#254;</FONT></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<P align="center" style="font-size: 6pt">&nbsp;

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by check mark whether the Registrant by furnishing the information contained in this Form
is also thereby furnishing the information to the Commission pursuant to Rule&nbsp;12g3-2(b) under the
Securities Exchange Act of 1934.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="70%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">Yes <FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">No <FONT face="Wingdings">&#254;</FONT></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If &#147;Yes&#148; is marked, indicate below the file number assigned to the Registrant in connection with
Rule&nbsp;12g3-2(b): 82-<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Notwithstanding any reference to BCE Inc.&#146;s Web site on the World Wide Web in the documents
attached hereto, the information contained in BCE Inc.&#146;s site or any other site on the World Wide
Web referred to in BCE Inc.&#146;s site is not a part of this Form 6-K and, therefore, is not filed with
the Securities and Exchange Commission.
</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>







<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">






<!-- link1 "SIGNATURE" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>BCE Inc.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>

<TD colspan="3" style="border-bottom: 1px solid #000000" align="left">(signed)
Patricia A. Olah
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Patricia A. Olah     &nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Corporate Secretary and Lead
Governance Counsel</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Date:&nbsp;October 11, 2006&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m33317orm3331700.gif" alt="(BELL CANADA GRAPHIC)">

</DIV>

<DIV align="left" style="font-size: 24pt; margin-top: 6pt">News Release
<DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt">For immediate release</DIV>



<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><I>This news release contains forward-looking statements.<BR>
For a description of the related risk factors and assumptions please see the section entitled<BR>
&#147;Caution Concerning Forward-Looking Statements&#148; later in this release</I>

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>BCE TO BE WOUND DOWN,<BR>
BELL CANADA TO CONVERT TO INCOME TRUST</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Elimination of BCE simplifies corporate structure</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>The new Bell trust&#146;s initial annual cash distribution of $2.55 per unit compares to
current BCE dividend of $1.32 per share, and represents a targeted payout ratio of 85%</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Strategic plan to drive improving financial performance in 2007</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>MONTR&#201;AL, Qu&#233;bec &#151; October&nbsp;11, 2006 </B>&#151; BCE announced today that it will eliminate its holding
company operations and convert Bell Canada into an income trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The trust, to be known as the Bell Canada Income Fund, is designed to create value for shareholders
through increased cash distributions and to ensure there will continue to be competitive parity in
the capital markets within the telecom sector. The Trust will have an initial annual cash
distribution of $2.55 per unit<SUP style="font-size: 85%; vertical-align: text-top">1</SUP>, representing a targeted 2007 payout ratio of 85%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;The elimination of BCE is a further step in our plan to focus on Bell and our communications
operations,&#148; said Michael Sabia, Chief Executive Officer of BCE and Bell Canada. &#147;That is the
business we know. That is the business we will stick to.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Our efforts over the past three years to lower costs and improve our execution capabilities have
set a solid foundation,&#148; said Mr.&nbsp;Sabia. &#147;As we look to 2007, we expect to see trends we thought
we would only achieve in 2008. As well, we are confident that the improving financial performance
of our growth businesses in 2007 will drive improvements in both operating profitability and Free
Cash Flow<SUP style="font-size: 85%; vertical-align: text-top">2</SUP>.&#148; The company will be providing 2007 guidance in December.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;With Bell Canada as an income trust, the payout ratio that we are contemplating is designed to
allow us to maintain the financial flexibility we need to be competitive, to fund capital spending
at levels needed to fully support growth and to reduce debt,&#148; he said. &#147;At the same time the new
capital structure is designed to provide an attractive distribution per unit.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Going forward we will continue to build a company based on a differentiated customer experience,
offering leading edge products and services, running over the most advanced networks,&#148; said Mr.
Sabia. &#147;As a trust, Bell will continue to execute its existing strategic plan based on business
transformation and investment in growth services. More than 50% of our revenue will come from
growth services by the end of this year.&#148;
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The transaction will not change current operations or affect employees or customers. The
conversion to an income trust is timely for the company as its tax shelters would be fully used in
the first half of next year, triggering a substantial increase in cash taxes payable beginning in
2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As a separate matter, the Bell Aliant Regional Communications Income Fund has announced today its
intention to purchase all of the units of the Bell Nordiq Income Fund it does not already own, with
a view to consolidating its operations with those of Bell Nordiq and continuing to operate the two
together as a single trust. &#147;BCE is supportive of Bell Aliant&#146;s proposal to buy the minority of
Bell Nordiq as this will create a single regionally oriented business,&#148; said Mr.&nbsp;Sabia.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Highlights &#151; Details of Transaction</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>BCE common shares to be exchanged on a one-for-one basis for units in the Bell Canada
Income Fund</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Information circular to be mailed to common and preferred shareholders in December</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Special meeting of common and preferred shareholders to be held in Montreal in January</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>BCE and Bell Canada to make cash offer to repurchase all of their outstanding preferred
shares</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Issuer bid circular to be mailed to preferred shareholders in December</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Repurchase of preferred shares to take place after shareholder and court approval of
Plan of Arrangement</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The transactions are targeted to be completed and Bell Canada Income Fund units to begin
trading in the first quarter of 2007</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The BCE and Bell Canada Boards of Directors have unanimously approved these transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Tax Implications to Common Shareholders</B><BR>
For BCE common shareholders resident in Canada, the proposed conversion will generally result in a
disposition of their BCE common shares giving rise to a capital gain (or capital loss) equal to the
amount by which the fair market value of the trust units received exceeds (or is less than) the
cost of their BCE common shares. U.S. shareholders will not be taxed in Canada on the conversion
of their common shares to trust units.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">It is expected that full details of the Canadian and U.S. tax consequences of the proposed
conversion will be provided in the information circular to be mailed to all shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Current and potential shareholders of BCE are encouraged to seek their own tax advice in respect of
the consequences to them of the proposed conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Terms and Timing of Arrangement</B><BR>
The conversion of the new combined entity into an income trust, and related transactions (referred
to herein as the &#147;Arrangement&#148;), will be carried out pursuant to a plan of arrangement under the
<I>Canada Business Corporations Act</I>. Under the Arrangement, each of the outstanding common shares of
BCE will be exchanged for units in the Trust on a one-for-one basis. In addition, BCE and Bell
Canada will amalgamate together with certain other subsidiaries to form a new company to be known
as Bell Canada. The BCE and Bell Canada Boards of Directors believe the Arrangement is in the best
interest of their respective companies. BCE and Bell Canada also intend to make cash offers to
repurchase all of the currently outstanding BCE and Bell Canada preferred shares. Completion of
this repurchase will be conditional only upon completion of the Arrangement.
</DIV>

<P align="right" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

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<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BCE and Bell Canada currently expect to hold a meeting of their common and preferred shareholders
to consider the Arrangement in January, and expect that, provided that all necessary conditions to
the Arrangement are satisfied, the Arrangement will be completed in the first quarter of 2007. BCE
and Bell Canada expect to mail an information circular and other applicable materials with respect
to the Arrangement in December.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Conditions of the Arrangement</B><BR>
The Arrangement is conditional upon, among other things: (i)&nbsp;approval of the Arrangement by BCE and
Bell Canada shareholders in accordance with applicable law and court orders granted in connection
with the Arrangement, (ii)&nbsp;the receipt of all necessary governmental, regulatory and stock
exchanges approvals and other security holder approvals and other consents, (iii)&nbsp;dissent rights
not being exercised in respect of more than a level of the outstanding common shares approved by
the BCE Board, and (iv)&nbsp;there being no change with respect to the income tax laws or policies of
Canada or to the telecommunications and other regulatory laws or policies of Canada that would have
a material adverse effect on the transactions contemplated by the Arrangement. In addition, the
Boards of each of BCE and Bell Canada will have the discretion to determine not to proceed with the
Arrangement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Fairness Opinions</B><BR>
BCE has received an opinion from BMO Capital Markets, one of the financial advisors to BCE and Bell
Canada, that, as of the date hereof and subject to certain customary conditions including the
review by BMO Capital Markets of BCE&#146;s information circular and related documentation, the
consideration to be received by the common shareholders of BCE under the Arrangement is fair, from
a financial point of view, to the common shareholders of BCE. BCE and Bell Canada have also
received an opinion from BMO Capital Markets that, as of the date hereof, the consideration to be
offered to the preferred shareholders of BCE and Bell Canada under the tender offers to be made in
connection with the Arrangement is, in respect of each series of the preferred shares of BCE and
Bell Canada, fair, from a financial point of view, to such preferred shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Preferred Shares and Debt</B><BR>
As part of the Arrangement, BCE and Bell Canada also intend, directly or indirectly, to make cash
offers to repurchase all of the currently outstanding BCE and Bell Canada preferred shares.
Completion of these repurchases will be conditional only upon completion of the Arrangement. If the
Arrangement is not completed, then BCE and Bell Canada will not repurchase any of their existing
preferred shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BCE and Bell Canada expect that the cash offer prices for the preferred shares will be as follows:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>$26.05 per share for the Series&nbsp;R First Preferred Shares of BCE</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>$25.60 per share for the currently redeemable Series&nbsp;S First Preferred Shares of BCE</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>$25.60 per share for the currently redeemable Series&nbsp;Y First Preferred Shares of BCE</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>$25.75 per share for the Series&nbsp;Z First Preferred Shares of BCE</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>$25.65 per share for the Series&nbsp;AA First Preferred Shares of BCE</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>$25.85 per share for the Series&nbsp;AC First Preferred Shares of BCE</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>$25.60 per share for the currently redeemable Series&nbsp;15 Class&nbsp;A Preferred Shares of Bell
Canada</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>$26.05 per share for the Series&nbsp;16 Class&nbsp;A Preferred Shares of Bell Canada</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>$25.95 per share for the Series&nbsp;17 Class&nbsp;A Preferred Shares of Bell Canada</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>$25.60 per share for the currently redeemable Series&nbsp;18 Class&nbsp;A Preferred Shares of Bell
Canada</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>$26.25 per share for the Series&nbsp;19 Class&nbsp;A Preferred Shares of Bell Canada</TD>
</TR>


</TABLE>
</DIV>
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BCE also intends to directly or indirectly make an offer to acquire any Series&nbsp;T First Preferred
Shares of BCE that may be issued on conversion of the currently outstanding Series&nbsp;S First
Preferred Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The aggregate amount of currently outstanding preferred shares of BCE and Bell Canada is
approximately $2.8&nbsp;billion. Full details of the offer for the preferred shares of BCE and Bell
Canada, including the fairness opinion of BMO Capital Markets, will be set out in an issuer bid
circular that is expected to be mailed to preferred shareholders in December.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Arrangement may trigger certain consent rights under certain series of bonds having a face
value of approximately $2&nbsp;billion issued by Bell Canada under the Bell Canada indenture dated July
1, 1976 and the (subordinated)&nbsp;Bell Canada indenture dated April&nbsp;17, 1996. Bell Canada intends to
redeem any callable portion of such debt in accordance with the relevant call provisions. For such
bonds that are not redeemable, Bell Canada intends to initiate discussions with holders of such
bonds and make offers at a price based on a yield that is flat to the relevant benchmark. All
other existing bonds of BCE and Bell Canada will continue to remain outstanding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In connection with the transactions announced today, new committed unsecured credit facilities in
the amount of $5.5&nbsp;billion have been arranged. Subject to certain conditions, these facilities
will be available upon closing of the Arrangement and will have maturities ranging from 18&nbsp;months
to three years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Financial Advisors</B><BR>
BMO Capital Markets, Goldman, Sachs &#038; Co. and RBC Capital Markets have acted as financial advisors
to BCE and Bell Canada in connection with the foregoing transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Outlook &#151; Confirmation of 2006 Guidance</B><BR>
<I>Refer to the section entitled &#147;Caution Concerning Forward-Looking Statements"
later in this news release for a discussion concerning the material risk factors that
could affect, and the material assumptions underlying, our 2006 guidance.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BCE also confirmed the following 2006 financial guidance:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="75%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Guidance 2006E(i)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Bell Canada</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Revenue growth</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="right">1% - 3</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cost savings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD nowrap align="right">700M-$900M</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">EBITDA<SUP style="font-size: 85%; vertical-align: text-top">3</SUP> margin (ii)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="RIGHT">Stable</TD>
<TD nowrap align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Capital intensity (iii)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="right">16% - 17</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>BCE Inc.</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">EPS (iv)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD nowrap align="right">1.80-$1.90</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Free Cash Flow (v)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD nowrap align="right">700M-$900M</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(i)</TD>
    <TD>&nbsp;</TD>
    <TD>All figures for 2006 are without giving effect to the proposed income
trust conversion and related transactions which are expected to close in
the first quarter of 2007. 2006 figures reflect the disposition of our
interest in CGI and the reduction of our interest in Bell Globemedia, BCE&#146;s
intentions for the use of proceeds from these transactions and the creation
of the Bell Aliant Regional Communications Income Fund.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(ii)</TD>
    <TD>&nbsp;</TD>
    <TD>EBITDA margin is EBITDA as a percentage of revenues.</TD>
</TR>

</TABLE>


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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(iii)</TD>
    <TD>&nbsp;</TD>
    <TD>Capital intensity is capital expenditures as a percentage of revenues.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(iv)</TD>
    <TD>&nbsp;</TD>
    <TD>Before restructuring and other items, net gains on investments and costs incurred to form the Bell Aliant Regional Communications Income Fund.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(v)</TD>
    <TD>&nbsp;</TD>
    <TD>Cash from operating activities less capital expenditures, total
dividends and other investing activities. For 2006, we expect to generate
approximately $700&nbsp;million to $900&nbsp;million in free cash flow, excluding the
funding of pension contributions from the acquisition of our Nortel and CGI
shares by the Bell Canada pension fund. This amount reflects expected cash
from operating activities of approximately $5.5&nbsp;billion to $5.7&nbsp;billion
less capital expenditures, total dividends and other investing activities.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Caution Concerning Forward-Looking Statements</B><BR>
Certain statements made in this news release, and certain oral statements made by our senior
management in connection with the announcement of BCE&#146;s and Bell Canada&#146;s proposed conversion into
an income trust (the &#147;Trust&#148;), including, but not limited to, the intention to create the Trust,
the expected timing of the completion of the Arrangement, the intention of BCE and Bell Canada to
repurchase their currently outstanding preferred shares, the intention of Bell Canada to make an
offer to certain bondholders, the expected structure of the Arrangement, the initial annual cash
distributions per unit and the targeted payout ratio, the expectation that the Arrangement is
designed to create shareholder value and that the targeted payout ratio is designed to allow us to
achieve certain financial objectives, financial guidance for 2006 and other statements that are not
historical facts, constitute forward-looking information and are subject to important risks,
uncertainties and assumptions. Such risks and uncertainties are identified and discussed under
&#147;Material Risks&#148; below. Such assumptions are identified and discussed in the next paragraph. As a
result, we cannot guarantee that any forward-looking statement will materialize and, accordingly,
you are cautioned not to place undue reliance on these forward-looking statements. Except as
otherwise indicated by BCE, these statements do not reflect the potential impact of any
transaction, other than the proposed Arrangement, or of any non-recurring or other special items
that may be announced or that may occur after the date hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Material Assumptions</I></B><BR>
A number of assumptions were made by BCE in preparing the forward-looking information set out in
this news release and the oral forward-looking statements made by BCE&#146;s senior management in
connection with the announcement of the proposed creation of the Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In particular, the Trust&#146;s initial annual cash distributions per unit in 2007 assume, among other
things, cash available for distribution in 2007 of approximately $2.1&nbsp;billion, an initial targeted
payout ratio of 85%, an estimated pro forma number of outstanding units of approximately 812
million, distributions by Bell Aliant to Bell Canada (based on expected 2006 distributions) of
approximately $275&nbsp;million and that BCE&#146;s and Bell Canada&#146;s conversion into an income trust, and
related transactions, will be completed on terms and at times substantially in accordance with
those set out in this news release.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In addition, the trust&#146;s initial cash available for distribution reflects a preliminary business
outlook for BCE, excluding Bell Aliant, that is based on certain anticipated financial and
operational trends and assumptions for 2007 that include EBITDA less currently planned capital
expenditures in the range of approximately $3.2&nbsp;billion to $3.4&nbsp;billion, and additional cash costs,
that include normalized pension contributions in the range of approximately $250&nbsp;million to $275
million, debt service payments in the range of approximately $825&nbsp;million to $875&nbsp;million, and cash
taxes in the range of approximately $50&nbsp;million to $75&nbsp;million. The cash available for distribution
is pro forma the monetization of Telesat. It also excludes Bell Globemedia which is now accounted
for at cost following the reduction in our ownership position. We have also assumed that key
drivers of Bell Canada&#146;s EBITDA in 2007 would be the following trends and assumptions: ARPU
(average revenue per unit) increases and higher EBITDA flow-through in our growth businesses,
</DIV>

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<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">greater value derived from our traditional businesses as a result of minimizing declines in our
long distance services and the stabilization of reductions in our residential NAS, and benefiting
from our new cost structure.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">These financial and operational trends and assumptions for 2007 represent a preliminary business
outlook for 2007 and not BCE&#146;s formal annual guidance for 2007. BCE&#146;s formal annual guidance for
2007 will be released in December&nbsp;2006. Accordingly, since the targeted payout ratio, as well as
other related targets, are based on preliminary assumptions and targets for 2007 as compared to
BCE&#146;s formal annual guidance, they are subject to greater uncertainty and, consequently, there is a
greater risk that the actual payout ratio and the actual level of cash available for distribution
will materially differ from BCE&#146;s current targets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In making these forward-looking statements, BCE has assumed that the various conditions precedent
to the Arrangement can be satisfied in accordance with their terms. Please refer to &#147;Risks Relating
to the Arrangement&#148; below for more details<B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Material Risks</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Risks Relating to the Arrangement</B><BR>
The completion of the proposed Arrangement is subject to a number of conditions including those
mentioned under &#147;Conditions of the Arrangement&#148; above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">These conditions may not be satisfied, or may not be satisfied on terms satisfactory to BCE or Bell
Canada, in which case the proposed Arrangement could be modified, restructured or terminated. In
addition, the Boards of Directors of each of BCE and Bell Canada have the discretion to determine
not to proceed with the Arrangement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Risks Relating to the Trust</B>
<I>Cash Distributions Are Not Guaranteed and Will Fluctuate with the Performance of the Business</I>
The Trust will, for purposes of its income and cash available for distribution, be entirely
dependent on its operating affiliates. Although BCE has identified initial annual cash
distributions per unit and an initial targeted payout ratio, there can be no assurance regarding
the actual amounts of cash that will be distributed or the actual payout ratio. The actual amount
of cash distributions paid in respect of the units of the Trust will depend upon numerous factors,
all of which are susceptible to a number of risks and other factors beyond the control of the Trust
and BCE. Distributions are not guaranteed and will fluctuate with the performance of the Trust&#146;s
operating affiliates. The Trust will have the discretion to establish cash reserves for the proper
conduct of its business. Adding to these reserves in any year would reduce the amount of
distributable cash and, hence, cash available for distributions in that year. In addition, the
timing and amount of capital expenditures will directly affect the amount of cash available for
distribution of the Trust, and therefore distributions to unitholders. Such distributions could
need to be reduced, or possibly even eliminated, at times when it is deemed necessary to make
significant capital or other expenditures. Accordingly, there can be no assurance regarding the
actual levels of cash distributions by the Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>General Business Risks</B><BR>
BCE&#146;s annual guidance for 2006, as well as the initial annual cash distributions per unit, the
targeted payout ratio and the cash available for distribution of the Trust, and the preliminary
financial and operational trends and assumptions for 2007 on which such targets are based, are also
subject to various risks that could adversely affect BCE&#146;s businesses and that could cause actual
results to differ materially from current expectations. For a description of such other risks,
please refer to the section entitled &#147;Assumptions Made In The Preparation Of Forward-Looking
Statements And Risks That Could Affect Our Business and Results&#148; contained in BCE&#146;s MD&#038;A (found on
pages 42 to 56 of the Bell Canada Enterprises 2005 Annual Report) for the year ended
</DIV>

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<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">December&nbsp;31, 2005 dated March&nbsp;1, 2006 filed by BCE with the Canadian securities commissions
(available on BCE&#146;s website at <U>www.bce.ca</U> and on SEDAR at <U>www.sedar.com</U>), and with the U.S.
Securities and Exchange Commission (SEC)&nbsp;under Form 40-F (available on EDGAR at <U>www.sec.gov</U>), as
updated in BCE&#146;s 2006 First Quarter MD&#038;A dated May&nbsp;2, 2006 and Second Quarter MD&#038;A dated August&nbsp;1,
2006 under the section entitled &#147;Assumptions Made In The Preparation Of Forward-Looking Statements
and Risks That Could Affect Our Business And Results&#148;, filed by BCE with the Canadian Securities
Commissions and with the SEC under Form 6-K (available on the same websites referred to above).
BCE&#146;s annual guidance for 2006 is also subject to the assumptions outlined in the above documents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The forward-looking statements contained in this news release represent our expectations as of
October&nbsp;11, 2006 and, accordingly, are subject to change after such date. However, we disclaim any
intention and assume no obligation to update or revise any forward-looking statement, whether as a
result of new information or otherwise.
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><B>Notes:</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Anticipated initial annual cash distributions per unit
of approximately $2.55 represent management&#146;s estimate and are based on a
calculation under which 2007 targeted capital expenditures and other items
have been subtracted from 2007 targeted EBITDA. Cash available for
distribution is a cash flow measure that is generally used by Canadian
income funds to provide an indication of their ability to make cash
distributions. Cash available for distribution is not a recognized
measure under Canadian generally accepted accounting principles (GAAP)&nbsp;and
does not have a standardized meaning. Cash available for distribution as
presented by BCE may not be comparable to similar measures presented by
other issuers. We define cash available for distribution to be cash flow
from operating activities, after certain normalizing and pro forma
adjustments and items not affecting cash, and adjusting for, among things,
pension plan contributions, cash taxes and interest expense, other cash
expenses and capital expenditures. The most comparable Canadian GAAP
financial measure is cash flow from operating activities. A detailed
calculation of the Trust&#146;s pro forma distributable cash, based on pro
forma historical results of the Trust for the twelve months ended June&nbsp;30,
2006, adjusted to reflect the expected effects of the conversion and
appropriate assumptions based on management&#146;s expected courses of action,
is included in a material change report that will be filed today with the
Canadian securities commissions through SEDAR and with the SEC under Form
6-K.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">2</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>We define free cash flow as cash flow from
operating activities after capital expenditures, total dividends and other
investing activities. Free cash flow does not have any standardized
meaning according to Canadian GAAP. It is therefore unlikely to be
comparable to similar measures presented by other companies. We consider
free cash flow to be an important indicator of the financial strength and
performance of our business because it shows how much cash is available to
repay debt and reinvest in our company. We believe that certain investors
and analysts use free cash flow to value a business and its underlying
assets. The most comparable Canadian GAAP financial measure is cash flow
from operating activities.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">3</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>We define EBITDA (earnings before interest,
taxes, depreciation and amortization) as operating revenues less operating
expenses, meaning it represents operating income before amortization
expense, net benefit plan cost, and restructuring and other items. The
term EBITDA does not have any standardized meaning according to GAAP. It
is therefore unlikely to be comparable to similar measures presented by
other issuers. We use EBITDA, among other measures, to assess the
operating performance of our ongoing businesses without the effects of
amortization expense, net benefit plan cost, and restructuring and other
items. We exclude these items because they affect the comparability of our
financial results and could potentially distort the analysis of trends in
business performance. We exclude amortization expense and net benefit plan
cost because they largely depend on the accounting methods and assumptions
an issuer uses, as well as non-operating factors such as the historical
cost of capital assets and the investment performance of an issuer&#146;s
pension plans. Excluding restructuring and other items does not imply they
are necessarily non-recurring. EBITDA allows us to compare our operating
performance on a consistent basis. We believe that certain investors and
analysts use EBITDA to measure an issuer&#146;s ability to service debt and to
meet other payment obligations or as a common measurement to value issuers
in the telecommunications industry. The most comparable Canadian GAAP
financial measure is operating income.</TD>
</TR>

</TABLE>



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</TABLE>
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</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Call with Financial Analysts</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BCE will hold a teleconference for financial analysts to discuss this announcement on Wednesday,
October&nbsp;11 at 8:30 am (Eastern). <I>Media are welcome to participate on a listen only basis</I>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">To participate, please dial <B>416-641-6121 </B>or <B>1-866-299-6657 </B>shortly before the start of the call. A
replay will be available for one week by dialing 416-695-5800 or 1-800-408-3053 (passcode
3200863#). This teleconference will also be Webcast live and archived for 90&nbsp;days on BCE&#146;s website
at <U>www.bce.ca</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Call with the Media</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BCE will hold a teleconference for media to discuss this announcement on Wednesday, October&nbsp;11 at
10:00 am (Eastern). Michael Sabia, CEO of BCE and Bell Canada and other senior executives,
will participate in the teleconference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">To participate, please dial <B>514-861-7241 </B>or <B>1-866-862-3915 </B>shortly before the start of the call. A
replay will be available for one week by dialing 514-861-2272 or 1-800-408-3053 (passcode
3200856#) This teleconference will also be Webcast live and archived for 90&nbsp;days on BCE&#146;s website
at <U>www.bce.ca</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>About BCE Inc.</B><BR>
BCE is Canada&#146;s largest communications company. Through its 28&nbsp;million customer connections, BCE
provides the most comprehensive and innovative suite of communication services to residential and
business customers in Canada. Under the Bell brand, the Company&#146;s services include local, long
distance and wireless phone services, high-speed and wireless Internet access, IP-broadband
services, information and communications technology services (or value-added services) and
direct-to-home satellite and VDSL television services. Other BCE businesses include Canada&#146;s
premier media company, Bell Globemedia, and Telesat Canada, a pioneer and world leader in satellite
operations and systems management. BCE shares are listed in Canada, the United States and Europe.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">-30-
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>For further information:</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Pierre Leclerc</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Thane Fotopoulos</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Media Relations
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Investor Relations</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(514) 391-2007 / 1 877 391-2007
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(514) 870-4619</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><u>pierre.leclerc@bell.ca</u>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><u>thane.fotopoulos@bell.ca</u></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="right" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
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