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<SEC-DOCUMENT>0001206212-06-000030.txt : 20060310
<SEC-HEADER>0001206212-06-000030.hdr.sgml : 20060310
<ACCEPTANCE-DATETIME>20060310125142
ACCESSION NUMBER:		0001206212-06-000030
CONFORMED SUBMISSION TYPE:	40-F
PUBLIC DOCUMENT COUNT:		45
CONFORMED PERIOD OF REPORT:	20051231
FILED AS OF DATE:		20060310
DATE AS OF CHANGE:		20060310

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:		40-F
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-08481
		FILM NUMBER:		06678379

	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>40-F
<SEQUENCE>1
<FILENAME>m30365e40vf.htm
<DESCRIPTION>FORM 40-F
<TEXT>
<HTML>
<HEAD>
<TITLE>e40vf</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>2005</B>
</DIV>


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




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>U.S. 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: 6pt"><B>FORM 40-F</B>
</DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>REGISTRATION STATEMENT PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>OR</B></DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#254;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>ANNUAL REPORT PURSUANT TO SECTION 13(a) OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</B></TD>
</TR>
</TABLE>
</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="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="37%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top" colspan="2" nowrap ><B>For the fiscal year ended: </B><B>December&nbsp;31, 2005</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top" colspan="4"><B>Commission File Number: </B><B>1-8481</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>BCE Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt"><I>(Exact name of Registrant as specified in its charter)</I></DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Canada</B><BR>
<I>(Jurisdiction of incorporation or organization)</I></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>4813</B><BR>
<I>(Primary Standard Industrial Classification Code Number (if applicable))</I></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>98-0134477</B><BR>
<I>(I.R.S. Employer Identification Number (if applicable))</I></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>1000 rue de La Gaucheti&#232;re Ouest, Bureau 3700, Montr&#233;al, Qu&#233;bec, Canada H3B 4Y7, (514)&nbsp;397-7000</B><BR>
<I>(Address and telephone number of Registrant&#146;s principal executive offices)</I></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>CT Corporation System, 111 Eighth Avenue, 13</B><SUP style="font-size: 85%; vertical-align: text-top"><B>th</B></SUP> <B>Floor, New York, N.Y. 10011, (212)&nbsp;894-8940</B><BR>
<I>(Name, address (including zip code) and telephone number (including area code)<BR>
of agents for service in the United States)</I></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Securities registered pursuant to Section&nbsp;12(b) of the Act:</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="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">Title of each class
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Name of each exchange on which registered</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><B>Common shares</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>New York Stock Exchange</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Securities registered pursuant to Section&nbsp;12(g) of the Act: <B>None</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Securities for which there is a reporting obligation pursuant to Section&nbsp;15(d) of the Act: <B>None</B></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For annual reports, indicate by check mark the information filed with this Form:
</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="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"><FONT face="Wingdings">&#254;</FONT> Annual information form
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT face="Wingdings">&#254;</FONT> Audited annual financial statements</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate the number of outstanding shares of each of the issuer&#146;s classes of capital or common
stock as of the close of the period covered by the annual report.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>At December&nbsp;31, 2005, 927,318,916 common shares and<BR>
66,000,000 First Preferred Shares were issued and outstanding.</B></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by check mark whether the Registrant by filing 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 (the &#147;Exchange Act&#148;). If &#147;Yes&#148; is marked, indicate the file number
assigned to the Registrant in connection with such Rule.
</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="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">Indicate by check mark whether the Registrant (1)&nbsp;has filed all reports required to be filed by
Section&nbsp;13 or 15(d) of the Exchange Act during the preceding 12&nbsp;months (or for such shorter period
that the Registrant was required to file such reports) and (2)&nbsp;has been subject to such filing
requirements for the past 90&nbsp;days.
</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="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">&#254;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">NO: <FONT face="Wingdings">&#111;</FONT></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</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>





</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt">2




<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>PRIOR FILINGS MODIFIED AND SUPERSEDED</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCE Inc.&#146;s annual report on Form 40-F for the year ended December&nbsp;31, 2005, at the time of
filing with the U.S. Securities and Exchange Commission (the &#147;SEC&#148; or &#147;Commission&#148;), modifies and
supersedes all prior documents filed pursuant to Sections&nbsp;13, 14 and 15(d) of the Exchange Act for
purposes of any offers or sales of any securities after the date of such filing pursuant to any
registration statement or prospectus filed pursuant to the Securities Act of 1933 which
incorporates by reference such annual report on Form 40-F. Other than BCE Inc.&#146;s Annual Information
Form for the year ended December&nbsp;31, 2005 (the &#147;AIF&#148;) included herein, and BCE Inc.&#146;s annual
audited consolidated financial statements for the year ended December&nbsp;31, 2005 and related
management&#146;s discussion and analysis of financial condition and results of operations, incorporated
by reference herein, no other information from the Exhibits attached hereto is to be incorporated
by reference in a registration statement or prospectus filed pursuant to the Securities Act of
1933.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AND<BR>
MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>A. Annual Audited Consolidated Financial Statements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For BCE Inc.&#146;s annual audited consolidated financial statements for the year ended December
31, 2005 (the &#147;Financial Statements&#148;), including the auditor&#146;s report with respect thereto, see
pages 60 to 101 and part of page 60, respectively, of the Bell Canada Enterprises 2005 Annual
Report to shareholders attached hereto as Exhibit&nbsp;99.1, which pages are incorporated herein by
reference. See Note 28 of the Notes to the Financial Statements on pages 98 to 101 of the Bell
Canada Enterprises 2005 Annual Report to shareholders, reconciling the significant differences
between Canadian and United States generally accepted accounting principles.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The above referenced auditor&#146;s report is expressed in accordance with standards of reporting
generally accepted in Canada which do not require a reference to changes in accounting principles
in the auditor&#146;s report when the changes are properly accounted for and adequately disclosed in the
financial statements. In the United States, reporting standards for auditors require the addition
of an explanatory paragraph (following the opinion paragraph) when there are changes in accounting
principles that have a material effect on the comparability of the financial statements, such as
the changes described in Note 1 to
the Financial Statements, or when there is a retroactive restatement such as described in Note
1 to the Financial Statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>B. Management&#146;s Discussion and Analysis</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For management&#146;s discussion and analysis of financial condition and results of operations, see
pages 2 to 59 of the Bell Canada Enterprises 2005 Annual Report to shareholders attached hereto as
Exhibit&nbsp;99.1, which pages are incorporated herein by reference.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of the end of the period covered by this annual report on Form 40-F, an evaluation was
carried out by BCE Inc.&#146;s management, under the supervision, and with the participation, of BCE
Inc.&#146;s President and Chief Executive Officer (the &#147;CEO&#148;) and Chief Financial Officer (the &#147;CFO&#148;),
of the effectiveness of BCE Inc.&#146;s disclosure controls and procedures (as defined in Exchange Act
Rules&nbsp;13a-15(e) and 15d-15(e)). Based on that evaluation, the CEO and CFO concluded that such
disclosure controls and procedures were adequate and effective and designed to ensure that material
information relating to BCE Inc. and its consolidated subsidiaries would be made known to them by
others within those entities.
</DIV>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt">3

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the year ended December&nbsp;31, 2005, there were no changes in BCE Inc.&#146;s internal control
over financial reporting that have materially affected, or are reasonably likely to materially
affect, BCE Inc.&#146;s internal control over financial reporting.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCE Inc.&#146;s board of directors has determined that at least one of the members of the audit
committee, being the Chair of the audit committee, Mr.&nbsp;T.C. O&#146;Neill, is qualified as &#147;audit
committee financial expert&#148;, and that all members of the audit committee are independent under the
listing standards of the New York Stock Exchange.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All of BCE Inc.&#146;s employees, directors and officers must follow the Bell Canada Enterprises
Code of Business Conduct (the &#147;Code of Conduct&#148;), which provides guidelines for ethical behaviour.
The Code of Conduct includes additional guidelines for BCE Inc.&#146;s CEO, CFO, Controller and
Treasurer. The Code of Conduct is available in the governance section of BCE Inc.&#146;s website at
<U>www.bce.ca</U>.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PRINCIPAL ACCOUNTANT FEES AND SERVICES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Auditor&#146;s fees</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below shows the fees that Deloitte &#038; Touche LLP (&#147;Deloitte &#038; Touche&#148;), BCE Inc.&#146;s
external auditor, billed to BCE Inc. and its subsidiaries for various services for each year in the
past two fiscal years.
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" colspan="2" style="border-bottom: 1px solid #000000">2004</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>(Can. $ millions)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Audit fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>12.2</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Audit-related fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1.9</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tax fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1.4</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>15.5</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Audit fees</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These fees include professional services provided by the external auditor for the review of
the interim financial statements, statutory audits of the annual financial statements, the review
of prospectuses, the review of financial accounting and reporting matters, other regulatory audits
and filings and translation services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Audit-related fees</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These fees relate to non-statutory audits, <I>Sarbanes-Oxley Act </I>initiatives, due diligence,
pension plan audits and the review of financial accounting and reporting matters.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These fees include professional services for administering compliance with our conflict of
interest policy for senior management, tax compliance, tax advice and assistance with tax audits
and appeals . Since October&nbsp;2005, the external auditor no longer provides services with respect to
compliance with our conflict of interest policy for senior management.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These fees include any other fees for permitted services not included in any of the
above-stated categories.
</DIV>
</DIV>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt">4

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Auditor independence policy</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCE Inc.&#146;s auditor independence policy is a comprehensive policy governing all aspects of BCE
Inc.&#146;s relationship with the external auditor, including:
</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>establishing a process for determining whether various audit and other services
provided by the external auditor affect its independence;</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>identifying the services that the external auditor may and may not provide to BCE
Inc. and its subsidiaries;</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>pre-approving all services to be provided by the external auditor of BCE Inc. and its
subsidiaries; and</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>establishing a process outlining procedures (as part of a separate policy) when
hiring current or former personnel of the external auditor in a financial oversight role
to ensure auditor independence is maintained.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In particular, the policy specifies that:
</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the external auditor cannot be hired to provide any services falling within the
prohibited services category, such as bookkeeping, financial information system design and
implementation and legal services;</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>for all audit or non-audit services falling within the permitted services category
(such as prospectus work, due diligence and non-statutory audits), a request for approval
must be submitted to the audit committee by the CFO prior to engaging the auditors;</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>specific permitted services however are pre-approved quarterly by the audit committee
and consequently only require approval by the CFO prior to engaging the external auditor;
and</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at each regularly scheduled audit committee meeting, a consolidated summary of all
fees paid to the external auditor by service type is presented. This summary includes a
breakout of fees incurred within the pre-approved amounts.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD colspan="4">The Auditor Independence Policy is available in the governance section of BCE Inc.&#146;s
website at <U>www.bce.ca.</U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2005, BCE Inc.&#146;s audit committee did not approve any audit-related, tax or other services
pursuant to paragraph (c) (7) (i) (C) of<BR>Rule 2-01 of Regulation&nbsp;S-X.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please see the sections entitled &#147;Off-Balance Sheet Arrangements&#148; and &#147;Derivative Instruments&#148;
of BCE Inc.&#146;s management&#146;s discussion and analysis of financial condition and results of operations
(which is incorporated by reference in BCE Inc.&#146;s AIF) and Notes 10, 21 and 26, entitled &#147;Accounts
Receivable&#148;, &#147;Financial Instruments&#148; and &#147;Guarantees&#148;, respectively, of the Financial Statements,
all contained in the Bell Canada Enterprises 2005 Annual Report to shareholders attached hereto as
Exhibit&nbsp;99.1, for a discussion of off-balance sheet arrangements.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABULAR DISCLOSURE OF CONTRACTUAL OBLIGATIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please see the section entitled &#147;Contractual Obligations&#148; of BCE Inc.&#146;s management&#146;s
discussion and analysis of financial condition and results of operations (which is incorporated by
reference in BCE Inc.&#146;s AIF), contained in the Bell Canada Enterprises 2005 Annual Report to
shareholders attached hereto as Exhibit&nbsp;99.1, for a tabular disclosure and discussion of
contractual obligations.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>IDENTIFICATION OF THE AUDIT COMMITTEE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCE Inc. has a separately designated standing audit committee established in accordance with
section 3(a)(58) (A)&nbsp;of the Exchange Act. BCE Inc.&#146;s audit committee is comprised of five
independent members: Mr.&nbsp;T.C. O&#146;Ne ill (Chair), Mr.&nbsp;A. B&#233;rard, Ms.&nbsp;J. Maxwell, Mr.&nbsp;R.C. Pozen and
Mr.&nbsp;V.L. Young.
</DIV>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt">5

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCE Inc. undertakes to make available, in person or by telephone, representatives to respond
to inquiries made by the Commission staff, and to furnish promptly, when requested to do so by the
Commission staff, information relating to: the securities in relation to which the obligation to
file this annual report on Form 40-F arises; or transactions in said securities.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any reference to BCE Inc.&#146;s website on the World Wide Web in the AIF or in the
documents attached as Exhibits hereto, the information contained in BCE Inc.&#146;s website or any other
site on the World Wide Web referred to in BCE Inc.&#146;s website is not a part of this Form 40-F and,
therefore, is not
filed with the Commission.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>STATEMENT REGARDING FORWARD-LOOKING STATEMENTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCE Inc. has made in the documents filed as part of this annual report on Form 40-F, and from
time to time may otherwise make, forward -looking statements and related assumptions concerning its
operations, economic performance and financial matters. BCE Inc. is under no duty to update any of
these forward-looking statements or related assumptions. Actual results or events could differ
materially from those set forth in, or implied by, the forward-looking statements and the related
assumptions due to a variety of factors. Reference is made to the section entitled &#147;About
Forward-Looking Statements&#148; on page 3 of the AIF and to the section entitled &#147;Assumptions Made in
the Preparation of Forward-Looking Statements and Risks That Could Affect Our Business and Results&#148;
on pages 38 to 50 of the AIF for a discussion of certain of such assumption and factors. Reference
is also made to the various assumptions and risk factors discussed throughout BCE Inc.&#146;s
management&#146;s discussion and analysis of financial condition and results of operations (which is
incorporated by reference in BCE Inc.&#146;s AIF), contained in the Bell Canada Enterprises 2005 Annual
Report to shareholders attached hereto as Exhibit&nbsp;99.1.
</DIV>


</DIV>


<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="center" style="font-size: 14pt; margin-top: 18pt"><B>2005</B>
</DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 12pt">ANNUAL INFORMATION FORM</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>BCE INC.</B><BR>
FOR THE YEAR ENDED DECEMBER 31, 2005<BR>
MARCH 1, 2006
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><IMG src="m30365m3036500.gif" alt="(BELL CANADA ENTERPRISES LOGO)">
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><I>P. 1</I>


<DIV align="left">
<!-- TOC -->
</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>WHAT&#146;S INSIDE</I>
</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="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#101">ABOUT THIS ANNUAL INFORMATION FORM</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#102">Documents incorporated by reference</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#103">Trademarks</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#104">About forward-looking statements</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#105">ABOUT BCE</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#106">Our strategic priorities</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#107">Our corporate structure</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#108">Our directors and officers</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#109">Our employees</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#110">Our capital structure</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#111">Our dividend policy</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#112">ABOUT OUR BUSINESSES</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#113">Bell Canada</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#114">Other BCE Segment</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#115">OUR POLICY ON CORPORATE RESPONSIBILITY</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#116">BUSINESS HIGHLIGHTS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#117">THE REGULATORY ENVIRONMENT WE OPERATE IN </A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#118">Legislation that governs our business</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#119">Key regulatory issues</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#120">Consultations</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#121">LEGAL PROCEEDINGS WE ARE INVOLVED IN</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#122">ASSUMPTIONS MADE IN THE PREPARATION OF FORWARD-LOOKING STATEMENTS AND RISKS THAT COULD AFFECT OUR BUSINESS AND RESULTS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#123">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#124">FOR MORE INFORMATION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#125">SCHEDULE 1 &#151; AUDIT COMMITTEE INFORMATION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#126">SCHEDULE 2 &#151; GLOSSARY</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="m30365exv99w1.htm">Bell Canada Enterprises 2005 Annual Report</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="m30365exv99w2.htm">Consent of Independent Registered Chartered Accountants</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="m30365exv99w3.htm">Comments by Auditors for U.S. Readers</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="m30365exv99w31.htm">Certifications of the CEO & CFO Pursuant to S.302 SOX</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="m30365exv99w32.htm">Certifications of the CEO & CFO Pursuant to S.906 SOX</A></FONT></TD></TR>
</TABLE>
</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt"><I>P. 2</I>


<DIV align="left">
<A name="101"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>ABOUT THIS ANNUAL INFORMATION FORM</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Annual Information Form (AIF)&nbsp;contains important information that will help you make
informed decisions about investing in BCE Inc. It describes the company and its operations, its
prospects, risks and other factors that affect its business.
</DIV>

<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>In this AIF, </B><B><I>we</I></B><B>, </B><B><I>us</I></B><B>, </B><B><I>our </I></B><B>and </B><B><I>BCE </I></B><B>mean BCE Inc., its subsidiaries and joint ventures. Bell Canada,
Aliant Inc. (Aliant) and their subsidiaries and joint ventures are referred to as the Bell Canada
companies.</B>
</DIV>

</DIV>

<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>All dollar figures are in Canadian dollars, unless stated otherwise. The information in this AIF
is as of March&nbsp;1, 2006, unless stated otherwise, and except for information in documents
incorporated by reference that have a different date.</B>
</DIV>

</DIV>

<DIV align="left">
<A name="102"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">DOCUMENTS INCORPORATED BY REFERENCE
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The document in the table below contains information that is incorporated by reference in
this AIF.
</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="47%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">DOCUMENT</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">WHERE IT IS INCORPORATED IN THIS AIF</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">BCE Inc. 2005 annual report
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>Management&#146;s discussion and
analysis,</I> page 50</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#151; <I>Management&#146;s discussion and analysis,</I> pages 2 to 59</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="103"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">TRADEMARKS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below is a list of our trademarks that are referred to and used as such in this AIF and their owners.
</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="45%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">OWNER</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3">TRADEMARK</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Aliant Inc.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Aliant</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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Aliant Telecom</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">BCE Inc.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">BCE</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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">Bell Canada
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Rings &#038; head design
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">GoTrax</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Bell Canada Enterprises corporate logo
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Kidsmania</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Bell
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Seek &#038; Find</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Bell Mobility
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Sympatico</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Bell World
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Sympatico.ca</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Emily
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10-4 &#038; design</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Espace Bell</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Bell ExpressVu Limited Partnership
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">ExpressVu</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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">Bell Globemedia Publishing Inc.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Canada&#146;s National Newspaper</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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Globeandmail.com</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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Globe and Mail</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Bell Mobility Inc.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mobile Browser</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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">CTV Inc.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CTV
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CTV Travel</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CTV Newsnet
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Comedy Network &#038; design</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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">CTV Television Inc.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">ROB TV</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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">TALK TV</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</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>
    <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">Solo Branding Inc.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Solo</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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Solo Mobile</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</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>
    <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">Telesat Canada
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Anik</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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Nimiq</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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telesat</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</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>
    <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">The Sports Network Inc.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">TSN</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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">RDS</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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">RIS Info Sports</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">

<TD colspan="5" valign="top" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Any other trademarks, or corporate, trade or domain names used in this AIF are the property
of their owners. We believe that our trademarks are very important to our success. Our exclusive
trademark rights are perpetual provided that their registrations are timely renewed and that the
trademarks are used in commerce by us or our licensees. We take appropriate measures to protect,
renew and defend our trademarks. We also spend considerable time and resources overseeing,
registering, renewing, licensing and protecting our trademarks and prosecuting those who infringe
on them. We take great care not to infringe on the intellectual property and trademarks of others.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><I>P. 3</I>


<DIV align="left">
<A name="104"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ABOUT FORWARD-LOOKING STATEMENTS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A statement we make is forward-looking when it
uses what we know and expect today to make a statement
about the future. Forward-looking statements may include
words such as <I>anticipate, assumption, believe, could,
expect, goal, guidance, intend, may, objective, outlook,
plan, seek, should, strive, target </I>and <I>will</I>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities laws encourage companies to disclose
forward-looking information so that investors can get a
better understanding of the company&#146;s future prospects
and make informed investment decisions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This AIF contains forward-looking statements about
BCE&#146;s objectives, plans, strategies, financial
condition, results of operations, cash flows and
businesses. These statements are forward-looking because
they are based on our current expectations, estimates
and assumptions about the markets we operate in, the
Canadian economic environment and our ability to attract
and retain customers and to manage network assets and
operating costs. All such forward-looking statements are
made pursuant to the &#145;safe harbor&#146; provisions of the
<I>United States Private Securities Litigation Reform Act
of 1995 </I>and of any applicable Canadian securities
legislation, including the <I>Securities Act of Ontario</I>. It
is important to know that:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> <B>unless otherwise indicated, forward-looking
statements in this AIF describe our expectations at
March&nbsp;1, 2006.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> our actual results could differ materially
from what we expect if known or unknown risks affect our
business, or if our estimates or assumptions turn out to
be inaccurate. 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> except as otherwise indicated by BCE,
forward-looking statements do not take into account the
effect that transactions or non-recurring or other
special items announced or occurring after the
statements are made may have on our business. Such
statements do not, unless otherwise specified by BCE,
reflect the impact of dispositions, sales of assets,
monetizations, mergers, acquisitions, other business
combinations or transactions, asset write-downs or other
charges announced or occurring after forward-looking
statements are made. The financial impact of these
transactions and non-recurring and other special items
can be complex and depends on the facts particular to
each of them. We therefore cannot describe the expected
impact in a meaningful way or in the same way we present
known risks affecting our business.</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> we disclaim any
intention and assume no obligation to update any
forward-looking statement even if new information
becomes available, as a result of future events or for
any other reason.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A number of assumptions were made by BCE in making
forward-looking statements in this AIF, such as certain
Canadian economic assumptions, market assumptions,
operational and financial assumptions and assumptions
about transactions. Certain factors that could cause
results or events to differ materially from our current
expectations include, among others, our ability to
implement our strategies
and plans, our ability to implement the changes
required by our strategic direction, the intensity of
competitive activity and the ability to achieve customer
service improvement while significantly reducing costs.
Assumptions made in the preparation of forward-looking
statements and risks that could cause our actual results
to differ materially from our current expectations are
discussed throughout this AIF and, in particular, in
<I>Assumptions made in the preparation of forward-looking
statements and risks that could affect our business and
results</I>.
</DIV>

<DIV align="left">
<A name="105"></A>
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BCE is Canada&#146;s largest communications company.
Our primary focus is Bell Canada, which encompasses our
core business operations and represents the largest
component of our business. Bell Canada is the nation&#146;s
leading provider of wireline and wireless communications
services, Internet access, data services and video
services to residential and business customers. We
report Bell Canada&#146;s results of operations in four
segments. Each reflects a distinct customer group:
<I>Residential</I>, <I>Business, Aliant, </I>and <I>Other Bell Canada</I>.
All of our other activities are reported in the <I>Other
BCE </I>segment. Our reporting structure reflects how we
manage our business and how we classify our operations
for planning and measuring performance.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2005, we had consolidated operating revenues of
$19.1&nbsp;billion. We had total assets of $40.6&nbsp;billion and
approximately 60,000 employees at December&nbsp;31, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below shows the operating revenues that
each segment contributed to total operating revenues for
the year ended December&nbsp;31, 2005.
</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="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: 8pt" valign="bottom">

<TD nowrap align="left" colspan="5" style="border-bottom: 1px solid #000000">OPERATING REVENUES <I>(in $ millions)</I></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Residential</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">7,599</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Business</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">6,120</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Aliant</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,097</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other Bell Canada</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,958</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">

<TD><DIV style="margin-left:15px; text-indent:-15px">Inter-segment eliminations &#151; Bell Canada</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(524</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bell Canada</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">17,250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other BCE</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,093</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD><DIV style="margin-left:15px; text-indent:-15px">Inter-segment eliminations &#151; other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(238</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total operating revenues</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">19,105</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The <I>Residential </I>segment (formerly the Consumer
segment) provides local telephone, long distance,
wireless, Internet access, video and other services to
Bell Canada&#146;s residential customers, mainly in Ontario
and Qu&#233;bec. Wireless services are also offered in
Western Canada and video services are provided
nationwide.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Local telephone and long distance services are sold
under the Bell brand, wireless services through Bell
Mobility Inc. (Bell Mobility), Internet access under the
Sympatico brand and video services through Bell
ExpressVu Limited Partnership (Bell ExpressVu) and Bell
Canada.
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt"><I>P. 4</I>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The <I>Business </I>segment provides local
telephone, long distance, wireless, data (including
Internet access), and other services to Bell Canada&#146;s
large enterprise (Enterprise) customers and small and
medium-sized businesses (SMB)&nbsp;in Ontario and Qu&#233;bec, as
well as to business customers in Western Canada through
Bell West, our division offering competitive local
exchange carrier (CLEC)&nbsp;services in Alberta and British
Columbia.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2005, Bell Canada acquired a number of small,
specialized service companies, allowing us to broaden
our product suite of information and communications
technology (ICT)&nbsp;solutions (or value-added services
(VAS)) for both Enterprise and SMB customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The <I>Business </I>segment also reflects the retail
portion of the operations of 360 networks Corporation
(360 networks) acquired in November&nbsp;2004 and operating in
Western Canada as the Group Telecom unit within Bell
Canada.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The <I>Aliant </I>segment provides local telephone, long
distance, wireless, data (including Internet access),
and other services to residential and business customers
in Atlantic Canada, and represents the operations of our
subsidiary, Aliant. At December&nbsp;31, 2005, Bell Canada
owned 53% of Aliant. The remaining 47% was publicly
held.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The <I>Other Bell Canada </I>segment includes Bell
Canada&#146;s Wholesale business, and the financial results
of T&#233;l&#233;bec, Limited Partnership (T&#233;l&#233;bec), NorthernTel,
Limited Partnership (NorthernTel) and Northwestel Inc.
(Northwestel). Our Wholesale business provides various
access and network services to other resale or
facilities-based providers of local, long distance,
Internet, data and other telecommunications services.
T&#233;l&#233;bec, NorthernTel and Northwestel provide
telecommunications services to less populated areas of
Qu&#233;bec,
Ontario and Canada&#146;s northern territories. At
December&nbsp;31, 2005, Bell Canada indirectly owned 100% of
Northwestel and approximately 63% of T&#233;l&#233;bec and
NorthernTel. Bell Nordiq Income Fund owned the remaining
37% of T&#233;l&#233;bec and NorthernTel.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On March&nbsp;7, 2006, BCE Inc. and Aliant announced their intention to create a new regional
telecommunications service provider in the form of an income trust which would combine Bell
Canada&#146;s regional wireline operations with Aliant&#146;s wireline operations. The new trust would also
own Bell Canada&#146;s 63.4% interest in NorthernTel and T&#233;l&#233;bec indirectly held through Bell Nordiq
Group Inc., an indirect wholly-owned subsidiary of Bell Canada.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By combining these assets, we will create a new regional telecommunications service provider of
significant scale and scope that brings a strong focus on customer service and regional needs. The
new trust will be controlled by BCE and will remain integral to Bell Canada&#146;s operations, ensuring
that we retain control of core assets in the most capital efficient way.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The new trust, which will be headquartered in Atlantic Canada, is expected to own approximately 3.4
million local access lines, have approximately 400,000 high-speed Internet subscribers in six
provinces, and manage the provision of all wireline, legacy data and Internet products for all
residential and business customers located in its territory. The transition to the trust will be
seamless for customers as products and services will continue to be sold under the Bell and
Sympatico brands within the trust&#146;s operating territory in Ontario and Qu&#233;bec and under the Aliant
and DownEast brands in Atlantic Canada.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the same time, in partial exchange for its contribution to a subsidiary of the trust, Bell
Canada will acquire Aliant Mobility and Aliant&#146;s DownEast Communications retail outlets.
Furthermore, approximately $1.25&nbsp;billion of Bell Canada debt will effectively be transferred to the
trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon closing, BCE will hold a 73.5% indirect interest in the trust, which it expects to reduce to
approximately 45% through a distribution of trust units to holders of BCE Inc. common shares. At
closing, Aliant&#146;s minority shareholders will exchange their common shares for trust units,
retaining a 26.5% interest in the new trust. Bell Nordiq Income Fund will continue to trade and
operate independently.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCE plans to establish a governance structure for the proposed income trust in line with comparable
current income trust precedents, and will control and consolidate the financial results of the new
trust. BCE will retain the ability to nominate a majority of the board of trustees of the trust
and of the board of directors of the operating entities of the trust as long as it owns a 30 per
cent or more interest in the trust. Also, BCE will have the ability to veto certain actions of the
new trust and its operating entities as long as it owns a 20 per cent or more interest in the new
trust. At closing, Bell Canada and the trust will enter into a number of outsourcing and commercial
agreements pursuant to which Bell Canada will support the operations of the trust. Similar
agreements will be entered into between the trust and Bell Canada to support Bell Canada&#146;s wireless
operations in Atlantic Canada. The transaction is expected to close as early as the third quarter
of 2006
but only once all closing conditions are satisfied and all necessary approvals and consents are
obtained.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The <I>Other BCE </I>segment includes the financial
results of our media and satellite businesses, as well
as the costs incurred by our corporate office. This
segment includes Bell Globemedia Inc. (Bell Globemedia)
and Telesat Canada (Telesat).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell Globemedia provides information and
entertainment services to Canadian customers and access
to distinctive Canadian content. It includes CTV Inc.
(CTV), Canada&#146;s leading private broadcaster, and The
Globe and Mail, Canada&#146;s leading national newspaper. At
December 31, 2005, BCE Inc. owned 68.5% of Bell
Globemedia. The Woodbridge Company Limited (Woodbridge)
and an affiliate owned the remaining 31.5%. On December
2, 2005, BCE Inc. announced a transaction in which it
has agreed to sell 20% of Bell Globemedia to Ontario
Teachers Pension Plan (Teachers), 20% to Torstar
Corporation (Torstar) and an additional 8.5% to
Woodbridge increasing the stake of Woodbridge and its
affiliate to 40%. Following completion of the
transaction BCE Inc. will retain a 20% interest in Bell
Globemedia, which will be accounted for in our results
using the equity method of accounting. The transaction,
which is subject to a number of approvals and closing
conditions, including approval by the Canadian
Radio-television and Telecommunications Commission
(CRTC)&nbsp;and the Competition Bureau, is expected to close
in the third quarter of 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Telesat is a pioneer in satellite communications
and systems management and is an experienced consultant
in establishing, operating and upgrading satellite
systems worldwide. BCE Inc. owns 100% of Telesat. On
February&nbsp;1, 2006, BCE Inc. announced its intention to
implement a recapitalization of Telesat and launch a
public offering of a minority stake in Telesat in the
second half of 2006<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP>.
</DIV>

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

<DIV style="margin-top: 0pt">
<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 colspan="3"><SUP style="font-size: 85%; vertical-align: text-top"><I>(1)</I></SUP> <I>The disclosure in this AIF relating to Telesat does not constitute an offer to sell,
or the solicitation of any offer to buy, any securities.</I></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
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<P align="right" style="font-size: 10pt"><I>p. 5</I>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February&nbsp;1, 2006, BCE Inc. also announced
its plan to repurchase 5% of its outstanding common
shares through a normal course issuer bid. BCE Inc. has
filed its final notice of intention to make a normal
course issuer bid with the Toronto Stock Exchange (TSX),
which allows it to purchase for cancellation up to
46,000,000 of its common shares, representing
approximately 5% of BCE Inc.&#146;s 927,321,825 common shares
outstanding as of the close of the market on January&nbsp;16,
2006. Purchases of the common shares will be carried out
through the TSX and/or the New York Stock Exchange
(NYSE)&nbsp;and will be made in accordance with the
requirements of such exchanges. Purchases of common
shares are permitted to be made from time to time, at
market prices, during the period starting February&nbsp;3,
2006, and ending no later than February&nbsp;2, 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCE Inc. was incorporated in 1970 and was continued
under the <I>Canada Business Corporations Act </I>in 1979. It
is governed by a Certificate and Articles of
Amalgamation dated August&nbsp;1, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCE Inc.&#146;s head and registered offices are at 1000,
rue de La Gaucheti&#232;re Ouest, Bureau 3700, Montr&#233;al,
Qu&#233;bec H3B 4Y7.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCE Inc.&#146;s auditor is Deloitte &#038; Touche LLP.
</DIV>
<DIV align="left">
<A name="106"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">OUR STRATEGIC PRIORITIES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We continued to experience profound changes in our
traditional telephone business in 2005. This was driven
primarily by the ongoing shift to Internet Protocol (IP)
and wireless technologies and new competitive challenges
due to the emergence of cable telephony.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our strategy is to deliver unrivalled integrated
communication services to customers, efficiently and
cost effectively. Over the past two years, we have laid
the operational foundations for the transformation of
the company by returning Bell Canada to its core
communications business. We have also made significant
progress on our three key pillars that support our
strategy:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1. Enhance the customer experience by providing superior
products and services that build loyalty
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2. Provide abundant and reliable bandwidth to enable the
delivery of next-generation services
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3. Create next-generation services to drive ongoing profitable growth.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Advancing this strategy requires us to transform our
cost structure and the way that we serve our customers.
These are the guiding principles at the core of Galileo,
our company-wide program designed to save costs by
simplifying and enhancing the customer experience.
Resetting the cost base should allow us to expand our
growth services in the future and drive profitability as
we face ongoing erosion of our traditional voice and
data businesses. In transforming the cost structure, we
are developing a new financial foundation that aims to
improve margins, increase profitability and generate
higher levels of free cash flow, creating value for all
our stakeholders. We have outlined four operating
priorities for 2006 to help us achieve this objective:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.
<I>Service </I>&#151; we are determined to ensure consistently
high levels of service, which should lead to
corresponding high levels of customer loyalty
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.
<I>Customer retention </I>&#151; we are focusing our
retention efforts on high-value customers and households
with multiple products
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.
<I>Growth </I>&#151; we are growing next-generation services
revenue with the objective that they will represent the
majority of Bell Canada&#146;s revenues by the end of 2006
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4. <I>Cost
</I>&#151; we are effectively resetting the cost base and
developing new sourcing and process redesign initiatives
in order to achieve recurring cost savings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In 2005, we made significant progress in building each
of our three key strategic pillars.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1. Enhancing customer experience by providing superior
products and services that build loyalty
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">At the end of 2005, over 22% of the total households in
our Ontario and Qu&#233;bec footprint subscribed to three or
more products (a combination of local wireline,
Internet, video and long distance services). We believe
our multi-product household strategy is effective in
fostering customer loyalty and minimizing network access
services (NAS)&nbsp;losses to the competition.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We continued to migrate customers in our
Residential segment to our One Bill platform. At the end
of 2005, 2.3&nbsp;million customers were enjoying the
benefits of a single bill for their wireline, Internet,
and video services, representing more than a two-fold
increase since the end of 2004. Reducing the number of
bills not only improves the customer experience, but
also lowers costs since we issue fewer invoices. At the
end of the year, we started migrating Bell Mobility
customers who already receive a single invoice for their
other Bell Canada services to One Bill.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We launched two initiatives to enhance customer
support for our Sympatico Internet customers:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>&nbsp;Emily, an online, virtual customer service
agent who interacts with customers needing help
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>&nbsp;Internet Care, an online and phone support
service for popular Internet-related products.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We began the rollout of OrderMax, our order entry tool
that allows customers to order any Bell Canada product
from any channel, through our customer service agents.
As at the end of 2005, over 50% of our customer service
agents had access to the OrderMax tool, with rollout
continuing in 2006.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We launched the beta site of our new Bell.ca
website. The new website provides customers with:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a simplified and consistent page layout
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> one process for shopping for any or all of our products
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> an improved search engine
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> easy access to online bills.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We continued to make progress on moving our core traffic
to a national IP multi-protocol label-switching
(IP-MPLS) network. At the end of 2005, 78% of the
migratable traffic on our core network was IP-based,
exceeding our year-end target of 75%.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
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<P align="left" style="font-size: 10pt"><I>p. 6</I>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As part of our shift to IP, we continued the
process of rationalizing our legacy data services and
stopped selling 28 services in 2005. We have
discontinued 47 legacy data services since we started
this initiative in 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The move to IP continued in 2005 with 57 Enterprise
customers contracted to implement IP virtual private
networks (IP-VPN), bringing the total number of
Enterprise customers implementing IP-VPN networks to
143.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the end of 2005, 656 Enterprise customers were
enrolled in Service Promise, our commitment to provide
customers with a clearly defined and consistent level of
service for delivering connectivity services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2006, we intend to continue improving service
and enhancing the customer experience. In particular we
plan to:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> ensure consistency of service to
all of our customers by improving our service
provisioning and assurance both in our call centres and
in our field operations
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> offer the simplicity
of a one-contact approach through initiatives such as
One Bill and on-line self-serve tools that allow
problems to be registered, ticketed and tracked
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
deliver improved service commitments and service
levels by significantly reducing the number of missed
appointments because of process issues, and by
shortening repair times
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> offer an end-to-end
service desk for our Enterprise customers that includes
both connectivity and ICT services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2. Deliver abundant bandwidth to enable next-generation services
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We continued our rollout of fibre-to-the-node (FTTN)&nbsp;by
deploying another 1,672 neighbourhood nodes in 2005.
This increased the total number to 2,048, exceeding our
objective to deploy more than 2,000 nodes by the end of
the year.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We launched Canada&#146;s first Evolution, Data
Optimized (EVDO)&nbsp;wireless data network with service
available in Montr&#233;al, Toronto, Vancouver, Calgary and
Edmonton. EVDO enables a new generation of sophisticated
wireless data solutions, and increases the speed and
potential for current tools such as e-mail, file
downloads, instant messaging, streaming video and games.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We announced an alliance with Rogers Communications
Inc. (Rogers) to jointly build and manage a national
wireless broadband network through the Inukshuk joint
venture (Inukshuk). Inukshuk will give subscribers
wireless access to the Internet and enable a host of
voice, video streaming and data applications from
wherever the service is available. The network footprint
is expected to reach more than two-thirds of Canadians
in less than three years, covering over 40 cities and
approximately 50 rural and remote communities that are
not currently served.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2006, we will continue to expand the reach and
speed of Digital Subscriber Line (DSL)&nbsp;service through
our FTTN rollout, which will enable speeds of up to 26
megabits per second
(Mbps). At the same time, work will proceed on
Inukshuk to build a fixed wireless
broadband access network and create a network
footprint within three years. We anticipate that by
2008, we will have the capability to provide broadband
connections to virtually all of our customers, either
through DSL or through our fixed wireless platform. We
also plan to implement EVDO across most of our wireless
coverage areas.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3. Create next-generation services to drive ongoing profitable growth
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our Residential segment introduced Bell Digital Voice in
Toronto and Montr&#233;al. The new Voice over Internet
Protocol (VoIP) service, which is the first of its kind
in Canada, uses existing phone lines to provide
customers with advanced Internet-based calling features
along with the reliability of Bell Canada&#146;s phone
network.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell Mobility launched a number of applications
designed to drive growth, including:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> 10-4, a new service that allows customers to
use their cell phones as walkie-talkies to communicate
with up to five other users at the push of a button
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> True Tones, a monthly service that enables
customers to download actual songs and ringtones
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Seek &#038; Find, a wireless location-based
system that allows subscribers to locate multiple
individuals away from their homes or offices
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> MobiTV, a video application that allows
customers with specific mobile handsets to access a
variety of video channels
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> MSN Messenger, an instant messaging service
that allows customers to transmit in real-time text
messages to other mobile phones or to PCs on their
contact list over the Internet.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Bell Mobility also introduced its first handset
compatible with Global System for Mobile Communications
(GSM)&nbsp;and launched Canada&#146;s first flat per-minute rate
billing service for global roaming on GSM networks in up
to 150 countries.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell ExpressVu introduced a number of new products
and services, including:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a dual-tuner,
high-definition personal video recorder (HD PVR) that
allows customers to pause live television, as well as
record, replay, stop, fast forward and fast rewind HD
and standard definition programming on up to two TVs in
the home through a single receiver.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our Residential Internet service was enhanced by the
introduction of new services at Sympatico, including:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Sympatico/MSN Video channel, a new
service that allows
customers to create customized playlists of streaming
video clips
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Kidsmania, a new educational online
service for children aged 3 to 12, offering more than
50 interactive games and activities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our SMB unit launched:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> PC Care and Network Care, two virtual chief
information officer (VCIO)&nbsp;solutions that provide
software and technical support for customers
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
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<P align="right" style="font-size: 10pt"><I>p. 7</I>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Business IP Voice, a service designed to
provide innovative Internet-based technology solutions
that deliver business advantages usually only available
to large corporations, such as a dedicated, reservation-free conferencing tool and the ability to forward a
voice-mail message as an attachment to an e-mail account
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> GoTrax, a low-cost remote wireless tracking
system that allows assets to be tracked in places where
traditional Global Positioning System (GPS)&nbsp;signals do
not work.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our Enterprise unit sold 275,000 IP-enabled lines on
customer premises equipment by the end of the year,
which is a 90% increase over 2004.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Business segment launched Global VoIP solution
for Canadian multinationals, a managed IP service that
can provide unlimited, international intra-company voice
services at a flat rate by interconnecting
geographically dispersed customer locations over a
virtual private IP network.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2006, we plan to introduce EVDO-enabled data
applications and other services to our wireless
customers, as well as expand our residential broadband
services to help customers manage information needs in
their home using our Sympatico-MSN portal. We also plan
to exploit our IP capability to achieve interoperability
between wireless and wireline platforms. In our video
unit, we intend to drive future growth through investing
in new growth areas, such as IPTV and HD programming,
in our goal to become the leader in on-demand television.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the Business segment, our Enterprise unit will
continue its efforts to expand its ICT solutions by
focusing on the financial services, health-care and
government sectors. We will also strengthen our
capabilities in network security. Our SMB unit will
continue to focus on being the premium solutions
provider for VAS among SMB in Canada with the objective
of increasing customers&#146; perception of Bell Canada as
their VCIO.
</DIV>









<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Transforming our cost structure</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Overall, our various Galileo initiatives resulted in
cost reductions
of $524&nbsp;million in 2005, which was consistent with our
run-rate savings target of $500 to $600&nbsp;million. These
cost savings were mainly from:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> The 2004 employee departure program
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> lower procurement costs
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> call centre efficiencies and optimization initiatives
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> eliminating network elements and standardizing core
operating processes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In 2006, we will continue to transform our cost
structure to support our operations. Enhancements to the
customer experience and cost structure will be gained
primarily through a redesign of our processes and
increased controls over discretionary spending.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accordingly, we have broadened our Galileo program
for 2006 to address our annual procurement spend of $8.5
billion. Our goal is to transform the supply chain to
reduce the amount we spend each year on delivering
service to customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Galileo will also continue to address process
transformation within the company, to lower costs and
improve customer experience. Our process transformation
initiatives will include:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> continuing to
actively encourage customers to adopt new IP-based
services
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> developing end-to-end process
improvements for sales and ordering, installation,
billing, collections and maintenance and repair, which
will allow us to deliver our products and services more
efficiently
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> optimizing management support to
reduce costs in our corporate and support functions.
</DIV>

<DIV align="left">
<A name="107"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">OUR CORPORATE STRUCTURE
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below shows our main subsidiaries, where
they are incorporated or registered, and the percentage
of voting and non-voting securities or partnership
interest that we beneficially own or that we directly or
indirectly exercise control or direction over.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have other subsidiaries, but they have not been
included in the table because each represents 10% or
less of our total consolidated assets and 10% or less of
our total consolidated operating revenues. These other
subsidiaries together represented 20% or less of our
total consolidated assets and 20% or less of our total
consolidated operating revenues at December&nbsp;31, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our corporate structure</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="70%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">WHERE IS IT</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">PERCENTAGE OF VOTING SECURITIES</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">INCORPORATED</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">OR PARTNERSHIP INTEREST THAT</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">SUBSIDIARY</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">OR REGISTERED</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;&nbsp;&nbsp;BCE INC. HELD AT DECEMBER 31, 2005 <SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bell Canada <SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Canada</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Aliant</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Canada</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">53.2</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Bell Mobility</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Canada</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Bell ExpressVu <SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ontario</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>

<TD nowrap>%<SUP style="font-size: 85%; vertical-align: text-top">&nbsp;&nbsp;(4)</SUP></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bell Globemedia <SUP style="font-size: 85%; vertical-align: text-top">(3)(5)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ontario</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">68.5</TD>
    <TD nowrap>%</TD>
</TR>


<TR style="font-size: 1px">
    <TD colspan="7" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>




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


<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top"><I>(1)</I></SUP></TD>
    <TD>&nbsp;</TD>
    <TD><I>We do not own any outstanding non-voting securities issued by these subsidiaries.</I></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"><I>(2)</I></SUP></TD>
    <TD>&nbsp;</TD>
    <TD><I>All of the voting securities of Bell Canada are owned by Bell Canada Holdings Inc.
(BCH), a wholly-owned subsidiary of BCE Inc.</I></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"><I>(3)</I></SUP></TD>
    <TD>&nbsp;</TD>
    <TD><I>These subsidiaries represent 10% or less of our total consolidated assets and 10% or
less of our total consolidated operating revenues. We have included them to provide a better
understanding of our overall corporate structure.</I></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"><I>(4)</I></SUP></TD>
    <TD>&nbsp;</TD>
    <TD><I>This subsidiary is indirectly wholly-owned by BCE Inc. 52% is indirectly held by
Bell Canada.</I></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"><I>(5)</I></SUP></TD>
    <TD>&nbsp;</TD>
    <TD><I>See Business Highlights &#151; 2005 &#151; Key
Acquisitions and Dispositions &#151; Sale of Bell
Globemedia Interest.</I></TD>
</TR>

</TABLE>



<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt"><I>p. 8</I>


<DIV align="left">
<A name="108"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">OUR DIRECTORS AND OFFICERS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">At December&nbsp;31, 2005 BCE Inc.&#146;s directors and officers as a group beneficially owned,
directly or indirectly, or exercised control or direction over:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
approximately 1,559,444 or 0.1682% of the common shares of BCE Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
approximately 1,500 or 0.0012% of the common shares of Aliant
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
approximately 447 or 0.0011% of the common shares of Bell Canada International Inc. (BCI)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
approximately 6,073 or 0.0186% of the units of Bell Nordiq Income Fund.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below lists BCE Inc.&#146;s directors, where they lived and their current principal occupation
on March&nbsp;1, 2006.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">DIRECTORS
</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="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">DATE ELECTED OR APPOINTED</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">NAME AND PROVINCE/STATE AND COUNTRY OF RESIDENCE</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">TO THE BCE INC. BOARD</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">CURRENT PRINCIPAL OCCUPATION</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Andr&#233; B&#233;rard, <I>Qu&#233;bec, Canada</I>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">January&nbsp;2003
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Corporate director</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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">Ronald A. Brenneman, <I>Alberta, Canada</I>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">November&nbsp;2003
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President and Chief Executive Officer and a director, Petro-Canada
(petroleum company), since January&nbsp;2000</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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">Richard J. Currie,<SUP style="font-size: 85%; vertical-align: text-top">(1) </SUP><I>Ontario, Canada</I>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">May&nbsp;1995
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chair of the board, BCE Inc. and Bell Canada, since April&nbsp;2002</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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">Anthony S. Fell,<SUP style="font-size: 85%; vertical-align: text-top">(1) </SUP><I>Ontario, Canada</I>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">January&nbsp;2002
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman of the board, RBC Dominion Securities Limited (investment bank),
since December&nbsp;1999</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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">Donna Soble Kaufman, <I>Ontario, Canada</I>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">June&nbsp;1998
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Lawyer and corporate director</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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">Brian M. Levitt, <I>Qu&#233;bec, Canada</I>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">May&nbsp;1998
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Partner and Co-Chair, Osler, Hoskin &#038; Harcourt LLP (law firm),
since January&nbsp;2001</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>
    <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">The Honourable Edward C. Lumley,<SUP style="font-size: 85%; vertical-align: text-top">(2) </SUP><I>Ontario, Canada</I>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">January&nbsp;2003
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice-Chairman, BMO Nesbitt Burns Inc. (investment bank), since 1991</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>
    <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">Judith Maxwell, <I>Ontario, Canada</I>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">January&nbsp;2000
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Research Fellow, Canadian Policy Research Networks Inc. (non-profit
organization conducting research on work, family, health, social policy and
public involvement), since February&nbsp;2006</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>
    <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">John H. McArthur, <I>Massachusetts, U.S.A.</I>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">May&nbsp;1995
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dean Emeritus, Harvard University Graduate School of Business
Administration, since 1995</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>
    <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">Thomas C. O&#146;Neill, <I>Ontario, Canada</I>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">January&nbsp;2003
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chartered Accountant and corporate director</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>
    <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">James A. Pattison,<SUP style="font-size: 85%; vertical-align: text-top">(3) </SUP><I>British Columbia, Canada</I>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">February&nbsp;2005
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman and Chief Executive Officer, The Jim Pattison Group, since 1961</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>
    <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">Robert C. Pozen, <I>Massachusetts, U.S.A.</I>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">February&nbsp;2002
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman of the board, MFS Investment Management (global investment
manager), since February&nbsp;2004</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>
    <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">Michael J. Sabia,<SUP style="font-size: 85%; vertical-align: text-top">(1) </SUP><I>Qu&#233;bec, Canada</I>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">October&nbsp;2002
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President and Chief Executive Officer (since April&nbsp;2002) and a director,
BCE Inc., and Chief Executive Officer (since May&nbsp;2002) and a director,
Bell Canada</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>
    <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">Paul M. Tellier, <I>Qu&#233;bec, Canada</I>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">April&nbsp;1999
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Corporate director</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>
    <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">Victor L. Young, <I>Newfoundland and Labrador, Canada</I>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">May&nbsp;1995
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Corporate director</TD>
</TR>
<TR style="font-size: 1px">

<TD colspan="5" valign="top" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>




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

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top"><I>(1)</I></SUP></TD>
    <TD>&nbsp;</TD>
    <TD><I>Was a director or executive officer of Teleglobe Inc. (Teleglobe) or certain of its
affiliates on, or during the year preceding, May&nbsp;15,
2002, the date when Teleglobe and certain of its affiliates filed for court protection under
insolvency statutes in various countries, including Canada and the United States.</I></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"><I>(2)</I></SUP></TD>
    <TD>&nbsp;</TD>
    <TD><I>Was a director or executive officer of Air Canada on, or during the year preceding,
April&nbsp;1, 2003, the date when Air Canada filed for court protection under insolvency statutes in
Canada and the United States.</I></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"><I>(3)</I></SUP></TD>
    <TD>&nbsp;</TD>
    <TD><I>Was a director or executive officer of Livent Inc. on, or during the year preceding,
November&nbsp;18 or 19, 1998, the dates when Livent Inc. and its United States subsidiaries filed for
court protection under insolvency statutes in Canada and the United States, respectively.</I></TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt"><I>p. 9</I>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Past occupation</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under BCE Inc.&#146;s by-laws, each director holds office until the next annual shareholder meeting or
until his or her successor is elected. All of BCE Inc.&#146;s directors have held the positions listed
in the table on the previous page or other executive positions with the same or associated firms or
organizations during the past five years or more, except for the people listed in the table below.
</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="20%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="75%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">DIRECTOR</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">PAST OCCUPATION</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mr. A. B&#233;rard
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman of the board of National Bank of Canada (chartered bank) from March&nbsp;2002 to March&nbsp;2004
Chairman of the board and Chief Executive Officer of National Bank of Canada from 1990 to March&nbsp;2002 and a director of National
Bank of Canada from 1985 to March&nbsp;2004</TD>
</TR>
<TR valign="bottom">
    <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">Mr. R.J. Currie
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President of George Weston Limited (food distribution, retail and production company) from 1996 to May&nbsp;2002 and a director from
1975 to May&nbsp;2002</TD>
</TR>
<TR valign="bottom">
    <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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President of Loblaw Companies Limited (grocery chain) from 1976 to January&nbsp;2001 and a director from 1973 to May&nbsp;2001</TD>
</TR>
<TR valign="bottom">
    <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">Ms. J. Maxwell
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President of Canadian Policy Research Networks Inc. from 1995 to January&nbsp;2006</TD>
</TR>
<TR valign="bottom">
    <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">Mr. T.C. O&#146;Neill
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Executive Officer of PricewaterhouseCoopers Consulting (provider of management consulting and technology services) from
January&nbsp;2002 to May&nbsp;2002 and then Chairman of the board from May&nbsp;2002 to October&nbsp;2002</TD>
</TR>
<TR valign="bottom">
    <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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Operating Officer of PricewaterhouseCoopers LLP global organization (professional services firm in accounting, auditing, taxation
and financial advisory services) from July&nbsp;2000 to January&nbsp;2002</TD>
</TR>
<TR valign="bottom">
    <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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Executive Officer of PricewaterhouseCoopers LLP (accounting firm) in Canada from 1998 to July&nbsp;2000</TD>
</TR>
<TR valign="bottom">
    <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">Mr. R.C. Pozen
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Visiting professor, Harvard Law School from 2002 to August&nbsp;2004</TD>
</TR>
<TR valign="bottom">
    <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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice-chairman of the board of Fidelity Investments from June&nbsp;2000 to December&nbsp;2001</TD>
</TR>
<TR valign="bottom">
    <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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President and a director of Fidelity Management and Research Company (provider of financial services and investment resources) from
1997 to June&nbsp;2001</TD>
</TR>
<TR valign="bottom">
    <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">Mr. P.M. Tellier
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President and Chief Executive Officer and a director of Bombardier Inc. (manufacturer of business jets, regional jets and rail
transportation equipment) from 2003 to December&nbsp;2004</TD>
</TR>
<TR valign="bottom">
    <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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President, Chief Executive Officer and a director of Canadian National Railway Company from 1992 to December&nbsp;2002</TD>
</TR>
<TR valign="bottom">
    <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">Mr. V.L. Young
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman of the board and Chief Executive Officer of Fishery Products International Limited (frozen seafood products company) from
1984 to May&nbsp;2001</TD>
</TR>

<TR style="font-size: 1px">

<TD colspan="3" valign="top" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Committees of the board</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below lists the committees of our board of directors and
their members.</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As a public company, we are required by law to have an
audit committee.
</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="20%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="75%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">COMMITTEE</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">MEMBERS</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Audit
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">T.C. O&#146;Neill (Chair)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">A. B&#233;rard</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">J. Maxwell</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">R.C. Pozen</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">V.L. Young</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">Corporate governance
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">D. Soble Kaufman (Chair)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">A. B&#233;rard</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">A.S. Fell</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Honourable E. C. Lumley</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">J. H. McArthur</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">Management resources
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">R.J. Currie (Chair)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">and compensation
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">R.A. Brenneman</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">A.S. Fell</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">J.H. McArthur</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">V.L. Young</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">Pension fund
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">R.C. Pozen (Chair)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">B.M. Levitt</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">J.A. Pattison</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">P.M. Tellier</TD>
</TR>
<TR style="font-size: 1px">

<TD colspan="3" valign="top" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>


<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>


</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt"><I>p. 10</I>



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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below lists BCE Inc.&#146;s officers, where they lived and the office that they held at BCE
Inc. on March&nbsp;1, 2006.
</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="20%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">PROVINCE AND COUNTRY</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">NAME</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">OF RESIDENCE</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">OFFICE HELD AT BCE INC.</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Michael J. Sabia <SUP style="font-size: 85%; vertical-align: text-top">(1) </SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Qu&#233;bec, Canada
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President and Chief Executive Officer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Alain Bilodeau
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Qu&#233;bec, Canada
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Senior Vice-President, BCE Inc. and President, BCE Corporate Services</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Michael T. Boychuk <SUP style="font-size: 85%; vertical-align: text-top">(1) </SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Qu&#233;bec, Canada
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Senior Vice-President and Treasurer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Karyn A. Brooks
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Qu&#233;bec, Canada
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice-President and Controller</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mark R. Bruneau
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Qu&#233;bec, Canada
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice-President and Chief Strategy Officer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">William J. Fox
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ontario, Canada
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Executive Vice-President
&#151; Communications and Corporate Development</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Lib Gibson
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ontario, Canada
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Corporate Advisor</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Leo W. Houle
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Qu&#233;bec, Canada
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Talent Officer</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Lawson A.W. Hunter
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ontario, Canada
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice-President and Chief Corporate Officer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Alek Krstajic
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ontario, Canada
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Officer &#151; Office of the CEO</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Patricia A. Olah
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Qu&#233;bec, Canada
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Corporate Secretary</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Barry W. Pickford
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ontario, Canada
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Senior Vice-President &#151; Taxation</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Stephen P. Skinner
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Qu&#233;bec, Canada
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Senior Vice-President &#151;
Finance &#151; Bell Canada</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Martine Turcotte
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Qu&#233;bec, Canada
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Legal Officer</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Siim A. Vanaselja
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Qu&#233;bec, Canada
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Financial Officer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Stephen G. Wetmore
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ontario, Canada
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Group President &#151; Corporate Performance and National Markets</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mahes S. Wickramasinghe
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ontario, Canada
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Senior Vice-President &#151; Corporate Performance and National Markets</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Nicholas Zelenczuk
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ontario, Canada
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Senior Vice-President &#151; Audit and Risk Management</TD>
</TR>
<TR style="font-size: 1px">

<TD colspan="5" valign="top" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 0px 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"><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD><I>Was a director or executive officer of Teleglobe or certain of its affiliates on or
during the year preceding May&nbsp;15, 2002, the date when Teleglobe and certain of its
affiliates filed for court protection under insolvency statutes in various countries,
including Canada and the United States.</I></TD>
</TR>

</TABLE>



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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All of our officers have held their present positions or
other executive positions with BCE Inc. or one or more
of our subsidiaries during the past five years or more,
except for:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Mr.&nbsp;Bilodeau who was Senior Vice-President,
Compensation Practice of AON Consulting (consulting
company) before April&nbsp;2002
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Ms.&nbsp;Brooks who was Vice-President and Controller of Enbridge Inc.
(pipeline company) before July&nbsp;2003
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Mr.&nbsp;Bruneau who was Founder and Chairman
Emeritus of Adventis (a strategy and management
consultancy to the global telecommunications industry)
before December&nbsp;2004
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Mr.&nbsp;Fox who was Senior Vice-President &#150;
Public Affairs of Bombardier Inc. prior to January&nbsp;2005.
He was also Senior Vice-President &#151; Public Affairs of
Canadian National (railroad company) before January
2003.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Ms.&nbsp;Gibson who was Vice-President, Marketing
of Worldlinx Telecommunications Inc. (telecommunications
company) before February&nbsp;2001
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Mr.&nbsp;Houle who was Senior Vice-President,
Corporate Human Resources of Alcan Inc. (packaging and
aluminum company) before June&nbsp;2001
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Mr.&nbsp;Hunter who was a partner with Stikeman
Elliott LLP (law firm) before March&nbsp;2003
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Mr.&nbsp;Krstajic who was Senior Vice-President,
Sales and Marketing of Rogers Cablesystems Limited
(cable company) before July&nbsp;2003.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Mr.&nbsp;Wickramasinghe who was Senior
Vice-President of Canadian Imperial Bank of Commerce
(CIBC) (chartered bank) and Chief Financial and
Administrative Officer of Amicus Financial (CIBC&#146;s
e-commerce division) before August&nbsp;2003. He was also
Senior Vice-President and Chief Administrative Officer
of CIBC Retail and Small Business Banking from June&nbsp;2001
to February&nbsp;2002 and Vice-President Audit &#038; Chief
Security Officer of CIBC before June&nbsp;2001.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Mr.&nbsp;Zelenczuk who was a Partner, Advisory
Services of KPMG LLP before February&nbsp;2006. He was
President and Chief Executive Officer of Deutsche Bank
Canada from 1998 to 2001.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><I>p. 11</I>


<DIV align="left">
<A name="109"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">OUR EMPLOYEES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below shows the number of employees in
the BCE group of companies.
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD nowrap align="left">MUMBER OF EMPLOYEES</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">AT DECEMBER 31</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2003</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>60,001</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61,739</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">64,054</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Approximately 47% of our employees are represented by
unions and are covered by collective agreements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following collective agreements were renewed in 2005:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> The collective agreement between the
Canadian Telecommunications Employees&#146; Association
(CTEA)&nbsp;and Bell Canada, representing approximately
10,000 clerical and associated employees, expired on May
31, 2005. A memorandum of agreement between Bell Canada
and the CTEA was signed on
June&nbsp;8, 2005, was submitted to a vote and was ratified
by 64.5% of CTEA members who voted. A new four-year
collective agreement was signed on July&nbsp;18, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> The collective agreement between Entourage
Technology Solutions Inc. (Entourage) (since renamed
Bell Technical Solutions Inc.) and the Communications,
Energy and Paperworkers Union of Canada (CEP)
representing approximately 1,400 Ontario technicians
expired on September&nbsp;30, 2004 and the Ontario
technicians went on strike on March&nbsp;24, 2005. On July&nbsp;5,
2005, negotiations resumed between Entourage and the CEP
and a memorandum of agreement was signed on July&nbsp;10,
2005, was submitted to a vote and ratified by 70% of the
Ontario technicians who voted. A new four-year
collective agreement was signed on August&nbsp;8, 2005, which
will be in force until May&nbsp;6, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> The collective agreement between Entourage
and the CEP representing approximately 800 Qu&#233;bec
technicians expired on September&nbsp;30, 2004. A final offer
was submitted to a vote and ratified by 80% of the CEP
members who voted. A new four-year collective agreement
was signed on May&nbsp;6, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following important collective agreements will expire in 2006:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> The collective agreement between the CTEA
and Bell Canada, representing approximately 700
communications sales employees will expire on December
31, 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> The collective agreements between the CEP
and Expertech Network Installation Inc. (Expertech)
representing approximately 275 clerical and 1,300 craft
employees will both expire on November&nbsp;30, 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> The collective agreement between the CTEA
and Connexim Inc. representing approximately 200
clerical employees will expire on May&nbsp;31, 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> The collective agreement between the
Teamsters and T&#233;l&#233;bec representing approximately 160
employees will expire on July&nbsp;22, 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On January&nbsp;21, 2005, the CEP filed a single employer
application with the Canada Industrial Relations Board
(CIRB)&nbsp;concerning Bell Canada, Bell West, Smiston
Communications Inc. (Smiston) and GT Group Telecom
Services Corporation (Group Telecom) to represent the
craft and services employees of Bell West, Smiston and
Group Telecom. The parties exchanged written
documentation and a pre-hearing conference took place
before the CIRB at the end of 2005. The process is
following due course with a final decision expected in
2006.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October&nbsp;22, 2004, the CTEA filed a single
employer application concerning Bell Canada and Bell
West with the CIRB, to represent the clerical and
communications sales employees of Bell West. The parties
exchanged written documentation and a pre-hearing
conference took place before
the CIRB at the end of 2005. The process is
following due course with a final decision expected in
2006.
</DIV>
<DIV align="left">
<A name="110"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">OUR CAPITAL STRUCTURE
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>BCE Inc. Securities</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The BCE Inc. articles of amalgamation provide for an
unlimited number of common shares, an unlimited number
of first preferred shares issuable in series, an
unlimited number of second preferred shares also
issuable in series and an unlimited number of Class&nbsp;B
shares. In addition, BCE Inc. has issued debt securities
in the form of notes. This section describes BCE Inc.&#146;s
securities, the ratings that certain rating agencies
have attributed to such securities and the trading of
such securities on the TSX.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BCE Inc. has issued long-term debt securities in the form of Series&nbsp;A, B and C Notes, as summarized
in the table below.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Debt securities</I>
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">INTEREST RATE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="3">MATURITY</TD>

    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">$ MILLIONS</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Series&nbsp;A Notes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.20</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center">October 30, 2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">300</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Series&nbsp;B Notes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.75</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center">October 30, 2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,050</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Series&nbsp;C Notes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.35</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center">October 30, 2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">650</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt"><I>p. 12</I>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All Series&nbsp;A, B and C Notes issued by BCE Inc. are
unsecured. BCE Inc. has the option to redeem the Series
B and C Notes (in the principal amount of $1.7&nbsp;billion)
at any time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCE Inc. has a shelf prospectus providing for the
issue of up to $1.0&nbsp;billion of medium term notes (MTNs).
BCE Inc. has not issued any MTNs under its current shelf
prospectus which expires on November&nbsp;10, 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The indentures governing the Series&nbsp;A, B and C
Notes and the MTNs contain certain covenants including,
but not limited to, a negative pledge, and certain
events of default including, but not limited to, a
cross-default with respect to Bell Canada&#146;s indebtedness
for borrowed money in certain circumstances. The
indenture governing the Series&nbsp;A, B and C Notes
contains, in particular, a provision stating that in the
event BCE Inc. disposes of voting shares of Bell Canada
in such a number as to hold, directly or indirectly,
less than 75% of the voting rights attaching to the
outstanding voting shares of Bell Canada, unless the
Series
A, B and C Notes have an approved rating from each
of certain rating agencies on each day of a rating
period, BCE Inc. shall have the obligation to make an
offer to purchase all of the Series&nbsp;A, B and C Notes
within the five business days following the rating
period at 100% of their face value together with accrued
and unpaid interest to the purchase date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCE Inc. may issue notes under its commercial paper
program up to the amount of its supporting committed
lines of credit. The total amount of its supporting
committed lines of credit available was $284&nbsp;million at
December&nbsp;31, 2005. BCE Inc. had no commercial paper
outstanding at December&nbsp;31, 2005.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell Canada may also issue notes under its own
commercial paper program up to the amount of its
supporting committed lines of credit. The total amount of
Bell Canada&#146;s supporting committed lines of credit
available was $879&nbsp;million at December&nbsp;31, 2005. Bell
Canada had $45&nbsp;million in commercial paper outstanding
at December&nbsp;31, 2005. Bell Canada can also issue up to
$400&nbsp;million Class&nbsp;E notes under its commercial paper
program. These notes are not supported by committed
lines of credit and may be extended in certain circumstances. Bell Canada had no Class&nbsp;E notes outstanding
at December&nbsp;31, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCE Inc. is in compliance with all conditions and
restrictions attaching to its debt securities described
above.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Preferred shares
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BCE Inc.&#146;s articles of amalgamation provide for an
unlimited number of first preferred shares and second
preferred shares. The terms set out in the articles
authorize BCE Inc.&#146;s directors to issue the shares in
one or more series and to set the number of shares and
conditions for each series.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below is a summary of the principal terms
of BCE Inc.&#146;s first preferred shares at December&nbsp;31,
2005. There were no second preferred shares issued and
outstanding at December&nbsp;31, 2005. BCE Inc.&#146;s articles of
amalgamation describe the terms and conditions of these
shares in detail.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>First preferred shares</I>
</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="19%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="RIGHT" colspan="6">STATED CAPITAL</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="6">AT DECEMBER 31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="left" colspan="6" style="border-bottom: 1px solid #000000">NUMBER OF SHARES</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" colspan="6" style="border-bottom: 1px solid #000000">(IN $ MILLIONS)</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">ANNUAL</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">DIVIDEND</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2" style="border-bottom: 0px solid #000000">CONVERTIBLE</TD>
    <TD nowrap align="left">CONVERSION</TD>
<TD>&nbsp;</TD>

    <TD nowrap align="left">REDEMPTION</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">REDEMPTION</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2">ISSUED AND</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">SERIES</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">RATE</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">INTO</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">DATE</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">DATE</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">PRICE</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2">AUTHORIZED</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2">OUTSTANDING</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" ></TD>
<TD nowrap align="right" ><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" ></TD>
<TD nowrap align="right" >2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD  colspan="29" ALIGN="LEFT" STYLE="BORDER-TOP: 1PX SOLID #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Q</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">floating</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Series R</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>December 1, 2015</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>At any time</TD>
    <TD>&nbsp;</TD>
    <TD>$25.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</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">R</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.54%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Series Q</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>December 1, 2010</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>December 1, 2010</TD>
    <TD>&nbsp;</TD>
    <TD>$25.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>200</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">S</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">floating</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Series T</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>November 1, 2006</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>At any time</TD>
    <TD>&nbsp;</TD>
    <TD>$25.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>200</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">200</TD>
    <TD>&nbsp;</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">T</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">fixed</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Series S</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>November 1, 2011</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>November 1, 2011</TD>
    <TD>&nbsp;</TD>
    <TD>$25.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Y</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">floating</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Series Z</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>December 1, 2007</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>At any time</TD>
    <TD>&nbsp;</TD>
    <TD>$25.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,147,380</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>29</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</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">Z</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.319%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Series Y</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>December 1, 2007</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>December 1, 2007</TD>
    <TD>&nbsp;</TD>
    <TD>$25.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,852,620</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>221</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">221</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">AA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.45%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Series AB</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>September 1, 2007</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>September 1, 2007</TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP>$25.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>510</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">510</TD>
    <TD>&nbsp;</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">AB</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">floating</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Series AA</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>September 1, 2012</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>At any time</TD>
    <TD>&nbsp;</TD>
    <TD>$25.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">AC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.54%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Series AD</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>March 1, 2008</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>March 1, 2008</TD>
    <TD>&nbsp;</TD>
    <TD>$25.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>510</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">510</TD>
    <TD>&nbsp;</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">AD</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">floating</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Series AC</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>March 1, 2013</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>At any time</TD>
    <TD>&nbsp;</TD>
    <TD>$25.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="29"  ALIGN="LEFT" STYLE="BORDER-TOP: 1PX SOLID #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,670</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,670</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD  colspan="29" ALIGN="LEFT" STYLE="BORDER-TOP: 3PX DOUBLE #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><I>p. 13</I>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Voting rights</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All of the issued and outstanding preferred shares at
December&nbsp;31, 2005 were non-voting, except under special
circumstances, for example if BCE Inc. failed to make
dividend payments, when the holders are entitled to one
vote per share.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Entitlement to dividends</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Holders of Series&nbsp;R, Z, AA and AC shares are entitled to
fixed cumulative quarterly dividends. The dividend rate
on these shares is reset every five years, as set out in
BCE Inc.&#146;s articles of amalgamation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holders of Series&nbsp;S and Y shares are entitled to
floating adjustable cumulative monthly dividends.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If Series&nbsp;Q, AB and AD shares are issued, their
holders will be entitled to floating adjustable
cumulative monthly dividends.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If Series&nbsp;T shares are issued, their holders will
be entitled to fixed cumulative quarterly dividends.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All of the issued and outstanding preferred shares at
December&nbsp;31, 2005 are convertible at the holder&#146;s option
into another associated series of preferred shares on a
one-for-one basis according to the terms set out in BCE
Inc.&#146;s articles of amalgamation.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BCE Inc. may redeem Series&nbsp;R, Z, AA and AC shares on the
redemption date and every five years after that date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If Series&nbsp;T shares are issued, BCE Inc. may redeem
them on the redemption date and every five years after
that date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCE Inc. may redeem Series&nbsp;S and Y shares at
any time at $25.50 per share (being a 2% premium to the
issue price). If Series&nbsp;Q, AB and AD shares are issued,
BCE Inc. may redeem them at any time at $25.50 per
share.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Liquidation, dissolution or winding up</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The first preferred shares of all series rank on a
parity with each other and in priority to all other
shares of BCE Inc. with respect
to payment of dividends and with respect to distribution
of assets in the event of liquidation, dissolution or
winding up of BCE Inc., whether voluntary or
involuntary, or any other distribution of assets for the
purpose of winding up its affairs.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The second preferred shares of all series rank on a
parity with each other and after the first preferred
shares and in priority to all other shares of BCE Inc.
with respect to payment of dividends and with respect to
distribution of assets in the event of liquidation,
dissolution or winding up of BCE Inc., whether voluntary
or involuntary, or any other distribution of assets for
the purpose of winding up its affairs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Common shares and Class&nbsp;B shares
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BCE Inc.&#146;s articles of amalgamation provide for an
unlimited number of voting common shares and non-voting
Class&nbsp;B shares. Each common share entitles its holder to
one vote at any meeting of shareholders. The common
shares and the Class&nbsp;B shares rank equally in the
payment of dividends and in the distribution of assets
if BCE Inc. is liquidated, dissolved or wound up, after
payments due to the holders of preferred shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below provides details about the outstanding common shares of BCE Inc. at December&nbsp;31,
2005 and 2004.</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"> No Class&nbsp;B shares were outstanding at December&nbsp;31, 2005 and 2004.
</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="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" colspan="6" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" colspan="6" style="border-bottom: 1px solid #000000">2004</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">NUMBER</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">STATED CAPITAL</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">NUMBER</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">STATED CAPITAL</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">OF SHARES</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">(IN $ MILLIONS)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">OF SHARES</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">(IN $ MILLIONS)</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Outstanding, beginning of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>925,935,682</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>16,781</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">923,988,818</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,749</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shares issued under employee stock option plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,383,234</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>25</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,946,864</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Outstanding, end of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>927,318,916</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>16,806</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">925,935,682</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,781</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">There are ownership constraints on BCE Inc.&#146;s common shares. For more details, see <I>The
regulatory environment we operate in &#151; Legislation that governs our business</I>.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt"><I>p. 14</I>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Ratings for BCE Inc. securities</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ratings generally address the ability of a company to
repay principal and interest or dividends on securities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCE Inc.&#146;s securities are rated by the following rating agencies:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Dominion Bond Rating Service Limited (DBRS)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Standard &#038; Poor&#146;s, a division of
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The McGraw-Hill Companies, Inc. (S&#038;P)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Moody&#146;s Investors Service, Inc. (Moody&#146;s)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Fitch Ratings Ltd. (Fitch)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This section describes the credit ratings that BCE Inc.
has received for its securities. These ratings provide
investors with an independent measure of credit quality
of an issue of securities. Each rating should be
evaluated independently.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These credit ratings are not recommendations to
purchase, hold or sell any of the securities discussed
above, or a comment on the market price or suitability
for a particular investor. There is no assurance that
any rating will remain in effect for any given period of
time or that any rating will not be revised or withdrawn
in the future by a rating agency.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February&nbsp;1, 2006, S&#038;P lowered BCE Inc.&#146;s
corporate rating to A- from A. The outlook is negative.
On February&nbsp;1, 2006, Moody&#146;s placed BCE Inc.&#146;s senior
unsecured debt and issuer ratings under review for
possible downgrade.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below shows the range of credit ratings that
each rating agency which rates our short term debt
instruments assigns to short-term debt instruments.
</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="71%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="10%" nowrap>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">HIGHEST QUALITY</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">LOWEST QUALITY</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">OF SECURITIES RATED</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">OF SECURITIES RATED</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">DBRS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">R-1 (high)
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">D</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">S&#038;P
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">A-1 (high)
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">D</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Moody&#146;s
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">P-1
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">P-3</TD>
</TR>
<TR style="font-size: 1px">
<TD colspan="5" valign="top" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The DBRS short-term debt rating scale indicates
DBRS&#146; assessment of the risk that a borrower will not
fulfill its near-term debt obligation in a timely
manner. Every DBRS rating is based on quantitative and
qualitative considerations relevant to the borrowing
entity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An S&#038;P commercial paper rating indicates S&#038;P&#146;s
assessment of whether the company can meet the financial
commitments of a specific commercial paper program or
other short-term financial instrument, compared to the
debt servicing and repayment capacity of other companies
in Canada&#146;s financial markets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Moody&#146;s short-term ratings indicate Moody&#146;s
assessment of the ability of issuers to meet short-term
financial obligations. It may assign ratings to issuers,
short-term programs or to individual short-term debt
instruments. These short-term obligations generally have
an original maturity of 13&nbsp;months or less, unless
explicitly noted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCE Inc. has received the following
credit ratings for commercial paper.
</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="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">COMMERCIAL PAPER</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">CREDIT RATING</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">DBRS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">R-1  (low)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">S&#038;P
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">A-1  (low)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Moody&#146;s
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">P-2</TD>
</TR>
<TR style="font-size: 1px">
<TD colspan="5" valign="top" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>


<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The R-1 (low)&nbsp;rating for short-term debt ranks third
among the 10 credit ratings given by DBRS, and,
according to DBRS, indicates:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> satisfactory credit quality
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> respectable overall strength and outlook for key liquidity, debt and
profitability ratios, but not as favourable as higher
rating categories
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> any qualifying negative
factors that exist are considered manageable, and the
company is normally of sufficient size to have some
influence in its industry.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The A-1 (low)&nbsp;rating ranks third among the eight
short-term credit ratings given by S&#038;P and, according to
S&#038;P, indicates the short-term obligation is slightly
more susceptible to the adverse effects of changes in
circumstances and economic conditions than short-term
obligations in higher rating categories and a
satisfactory capacity to meet financial commitments on
short-term obligations. Obligations rated A-1 (low)&nbsp;on
the Canadian commercial paper rating scale would qualify
for a rating of A-2 on S&#038;P&#146;s global short-term rating
scale.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The P-2 rating provided for BCE Inc. commercial
paper ranks second among the three short-term credit
ratings given by Moody&#146;s and according to Moody&#146;s,
indicates a strong ability to repay short-term debt
obligations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Long-term debt (Senior notes Series&nbsp;A, B and C)</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below shows the range of credit ratings that
each rating agency assigns to long-term debt
instruments.
</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="65%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">HIGHEST QUALITY</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">LOWEST QUALITY</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">OF SECURITIES RATED</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">OF SECURITIES RATED</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">DBRS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">AAA
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">D</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">S&#038;P
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">AAA
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">D</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Moody&#146;s
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">Aaa
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">C</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Fitch
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">AAA
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">D</TD>
</TR>

<TR style="font-size: 1px">
<TD colspan="5" valign="top" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The DBRS long-term debt rating scale indicates the
risk that a company may not meet its obligations to pay
interest and principal in a timely manner. Every DBRS
rating is based on quantitative and qualitative
considerations relevant to the borrowing entity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;S&#038;P&#146;s credit rating is a current assessment of the
creditworthiness of the company in meeting a specific
financial obligation, a specific class of financial
obligations, or a specific financial program. It takes
into consideration:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><I>p. 15</I>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the creditworthiness of guarantors,
insurers, or other forms of credit enhancement on the
obligation
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the currency that the obligation is denominated in
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> current information provided by the company or obtained by S&#038;P
from other reliable sources
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> unaudited financial information from time to
time, as S&#038;P does not perform an audit
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the
likelihood of payment &#150; capacity and willingness of the
company in meeting its financial commitment on an
obligation according to the terms of the obligation
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the nature of and provisions of the obligation
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the protection afforded by, and relative position of, the obligation in
the event of bankruptcy, reorganization, or other
arrangement under the laws of bankruptcy and other laws
affecting creditors&#146; rights.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Moody&#146;s long-term obligation ratings are an assessment
of the relative credit risk of fixed-income obligations
with an original maturity of one year or more. They
address the possibility that a financial obligation will
not be honoured as promised. Such ratings reflect both
the likelihood of default and any financial loss
suffered in the event of default.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fitch&#146;s international long-term credit ratings
assess the capacity to meet foreign or local currency
commitments. Both foreign and local currency ratings are
internationally comparable assessments. The local
currency rating measures the probability of payment only
within the sovereign state&#146;s currency and jurisdiction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCE Inc. has received the following credit ratings
for the long-term debt it has issued:
</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="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">LONG-TERM DEBT</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">CREDIT RATING</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">DBRS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">A (low)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">S&#038;P
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">BBB&#043;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Moody&#146;s
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">Baa1&nbsp;&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Fitch
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">BBB&#043;</TD>
</TR>
<!-- End Table Body -->
<TR style="font-size: 1px">

<TD colspan="3" valign="top" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The DBRS A (low)&nbsp;rating on long-term debt ranks
seventh among the 26 long-term debt credit ratings given
by DBRS. According to DBRS, a company with long-term
debt rated A by DBRS:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> is satisfactory credit quality
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> protection of interest and principal is still substantial, but the
degree of strength is less than that of AA rated entities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">While A (low)&nbsp;is a respectable rating, companies that
fall into this category are considered to be more
susceptible to adverse economic conditions and have
greater cyclical tendencies than higher-rated
securities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The BBB&#043; rating ranks eighth among the 22 long-term
debt credit ratings given by S&#038;P. According to S&#038;P, a
company rated BBB has adequate capacity to meet its
financial commitments. However, adverse economic
conditions or changing
circumstances are more likely to lead to a weakened
capacity of the company to meet its financial
commitments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Baa1 rating ranks eighth among the 21
long-term debt credit ratings given by Moody&#146;s.
According to Moody&#146;s, obligations rated Baa are subject
to moderate credit risk. They are considered
medium-grade and may have certain speculative
characteristics.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The BBB&#043; rating ranks eighth among the 23 long-term
ratings given by Fitch. According to Fitch, BBB ratings
indicate that there is currently expectations of low
credit risk and good credit quality. The capacity for
payment of financial commitments is considered adequate
but adverse changes in circumstances and economic
conditions are more likely to impair this capacity.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below describes the range of credit ratings
that each rating agency assigns to preferred share
instruments.
</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="7%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">HIGHEST QUALITY</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">LOWEST QUALITY</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">OF SECURITIES RATED</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">OF SECURITIES RATED</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">DBRS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">Pfd-1 (high)
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">D</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">S&#038;P
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">P-1 (high)
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">D</TD>
</TR>
<TR style="font-size: 1px">
 <TD colspan="5" valign="top" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The DBRS preferred share rating scale indicates
their assessment the risk that a borrower may not be
able to meet its full obligation to pay dividends and
principal in a timely manner. Every DBRS rating is based
on quantitative and qualitative considerations relevant
to the borrowing entity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;S&#038;P&#146;s preferred share rating is a current
assessment of the credit-worthiness of a company in
meeting a specific preferred share obligation issued in
the market, compared to preferred shares issued by other
issuers in the Canadian market.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCE Inc. has received the following credit ratings
for the first preferred shares it has issued.
</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="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">PREFERRED SHARE</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">CREDIT RATING</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">DBRS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">Pfd-2 (low)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">S&#038;P
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">P-2</TD>
</TR>
<TR style="font-size: 1px">

<TD colspan="3" valign="top" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Pfd-2 (low)&nbsp;rating for preferred shares ranks
sixth among the 16 preferred share credit ratings given
by DBRS. According to DBRS, a company with preferred
shares rated Pfd-2 by DBRS:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> is satisfactory credit quality
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> protection of dividends and principal is still substantial, but earn-ings, balance sheet, and coverage ratios are not as
strong as Pfd-1 rated companies. Generally, companies
with Pfd-2 ratings have senior bonds rated in the A
category.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The P-2 rating ranks fifth among the 18 preferred
share credit ratings given by S&#038;P. A P-2 rating on the
Canadian scale is
equivalent to a BBB rating on the global scale.
According to S&#038;P, an obligation rated BBB exhibits
adequate protection parameters. However, adverse
economic conditions or changing circumstances are more
likely to weaken the company&#146;s ability to meet its
financial commitment on the obligation.
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt"><I>p. 16</I>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Trading of our Securities</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Common and preferred shares of BCE Inc. are listed on
the TSX. In addition, BCE Inc.&#146;s common shares are
listed on the NYSE and the SWX Swiss Exchange. The
tables below and on the next page show the range in
share price per month and volume traded on the TSX for
each class of BCE Inc. securities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>BCE Inc. Common shares</I>
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">VOLUME</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">2005</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">HIGH</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">LOW</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">TRADED</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">28.350</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,293,850</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">November</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">30.500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.450</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70,416,828</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">October</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">31.810</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">28.600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49,547,877</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">September</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">33.000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">30.500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72,481,661</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">31.330</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">29.650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45,892,976</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">July</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">30.140</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">28.830</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,957,684</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">June</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">29.740</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">28.350</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45,805,821</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">May</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">30.240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">28.330</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,177,755</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">April</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">30.460</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">29.760</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,099,590</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">March</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">30.250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">28.940</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,414,898</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">29.810</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">28.710</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,213,010</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">January</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">30.110</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">28.750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,201,618</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>BCE Inc. Preferred shares &#150; Series&nbsp;R</I>
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">VOLUME</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">2005</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">HIGH</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">LOW</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">TRADED</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">114,213</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">November</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.040</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">518,319</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">October</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">434,439</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">September</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.430</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">569,951</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,099</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">July</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.840</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.360</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,475</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">June</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.850</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56,286</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">May</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24.760</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,105</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">April</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.210</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,386,929</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">March</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45,256</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.060</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.280</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46,904</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">January</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.670</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65,638</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>BCE Inc. Preferred shares &#150; Series&nbsp;S</I>
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">VOLUME</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">2005</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">HIGH</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">LOW</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">TRADED</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.450</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,616</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">November</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.020</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,762</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">October</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.350</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,443</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">September</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.450</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.020</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56,664</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.370</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24.960</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78,365</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">July</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">245,611</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">June</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24.900</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">166,769</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">May</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.090</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24.750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">195,095</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">April</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.050</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24.850</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">162,953</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">March</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.140</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24.900</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69,076</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24.860</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">402,354</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">January</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.190</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24.850</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">82,565</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>BCE Inc. Preferred shares &#150; Series&nbsp;Y</I>
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">VOLUME</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">2005</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">HIGH</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">LOW</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">TRADED</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.350</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24.750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,075</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">November</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.420</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24.870</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,155</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">October</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.490</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24.950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,325</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">September</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.490</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,780</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,850</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">July</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24.520</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,350</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">June</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24.600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,395</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">May</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.490</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24.800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,325</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">April</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24.800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24.500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,975</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">March</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24.020</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,790</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24.750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,215</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">January</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.840</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.050</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,305</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>BCE Inc. Preferred shares &#150; Series&nbsp;Z</I>
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">VOLUME</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">2005</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">HIGH</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">LOW</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">TRADED</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.850</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54,815</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">November</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.060</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,475</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">October</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.990</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">82,703</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">September</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.890</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">140,787</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.990</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,445</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">July</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.900</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">107,263</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">June</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27.050</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">104,689</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">May</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27.150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.300</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">94,299</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">April</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27.400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">255,656</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">March</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27.100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">151,835</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27.150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">119,544</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">January</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27.250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">143,194</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><I>p. 17</I>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>BCE Inc. Preferred shares &#150; Series&nbsp;AA</I>
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">VOLUME</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">2005</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">HIGH</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">LOW</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">TRADED</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.560</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">518,189</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">November</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.880</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,934,677</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">October</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146,561</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">September</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">178,023</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.540</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,050</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">July</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">236,840</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">June</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">355,690</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">May</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.740</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65,063</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">April</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.900</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">183,576</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">March</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27.050</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">311,950</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">185,203</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">January</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27.200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">700,110</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>BCE Inc. Preferred shares &#150; Series&nbsp;AC</I>
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">VOLUME</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">2005</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">HIGH</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">LOW</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">TRADED</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,936</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">November</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54,885</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">October</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.990</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.360</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,505</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">September</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.460</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250,570</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">90,395</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">July</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27.000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.300</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">129,895</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">June</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.840</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120,910</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">May</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">208,666</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">April</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27.150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.450</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">257,847</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">March</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27.300</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">313,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27.250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">258,101</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">January</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27.490</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">558,125</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="111"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">OUR DIVIDEND POLICY
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Subject to being declared by the board of
directors, BCE Inc. pays quarterly dividends on common
shares at a rate of $1.32 per year.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to being declared by the board of
directors, BCE Inc. pays dividends on preferred shares
every quarter, except for dividends on Series&nbsp;S and
Series&nbsp;Y preferred shares, which BCE Inc. declares and
pays monthly.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The board of directors regularly reviews the
appropriateness of BCE Inc.&#146;s dividend policy against
BCE Inc.&#146;s actual operating and financial performance
and BCE Inc.&#146;s anticipated future performance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below shows the amount of cash
dividends declared per share of each class of BCE Inc.
shares for 2003, 2004, and 2005.
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2003</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Common</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>1.32</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Preferred shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#150; Series&nbsp;P</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#150; Series&nbsp;R</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>1.441375</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.5435</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.5435</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#150; Series&nbsp;S</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>0.7546</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.66022</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.02094</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#150; Series&nbsp;Y</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>0.79798</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.66267</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.94637</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#150; Series&nbsp;Z</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>1.3298</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.3298</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.3298</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#150; Series&nbsp;AA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>1.3625</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.3625</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.3625</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#150; Series&nbsp;AC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>1.385</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.385</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.385</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="112"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>ABOUT OUR BUSINESSES</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We report Bell Canada&#146;s results of operation in
four segments. Each reflects a distinct customer group:
<I>Residential </I>(formerly the <I>Consumer </I>segment), <I>Business</I>,
<I>Aliant </I>and <I>Other Bell Canada</I>. All of our other
activities are reported in the <I>Other BCE </I>segment. This
section describes our products and services and
competitors for each of our businesses.
</DIV>

<DIV align="left">
<A name="113"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Bell Canada is Canada&#146;s leading provider of
wireline and wireless communications services, Internet
access, data services and video services to residential
and business customers. Bell Canada&#146;s major lines of
business, which include our <I>Residential, Business,
Aliant </I>and <I>Other Bell Canada </I>segments, are described
below.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Some of Bell Canada&#146;s revenues vary slightly by
season. Business segment revenues tend to be higher in
the fourth quarter because of higher levels of voice and
data equipment sales. Our operating income can also vary
slightly by season. Residential segment operating income
tends to be lower in the fourth quarter due to the
higher costs associated with greater subscriber
acquisition during the holiday season.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt"><I>p. 18</I>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt">PRODUCTS AND SERVICES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Bell Canada is our primary focus and the largest
component of our business. It has six major lines of
business:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> local and access services
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> long distance services
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> wireless services
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> data services
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> video services
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> terminal sales and other.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Local and access services</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Bell Canada operates an extensive local access network
that provides local telephone services to business and
residential customers. The 12.6&nbsp;million local telephone
lines, or NAS, we provide to our customers are key in
establishing customer
relationships and are the foundation for the other
products and services we offer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Local telephone service is the main source of local
and access revenues. Other sources of local and access
revenues include:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> VAS, such as call display, call waiting and voicemail
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> services provided to competitors accessing our local network
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> connections to and from our local telephone service customers for
competing long distance companies
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> subsidies from the National Contribution
Fund to support local service in high-cost areas.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Rates for local telephone and value-added services in
our incumbent territories are regulated by the CRTC.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The local telephone services market became
increasingly competitive in 2005 as the major cable
operators in our Qu&#233;bec and Ontario markets began to
offer low-priced cable telephony services. In 2005, we
launched our own VoIP service for residential customers
under the name Bell Digital Voice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Long distance services</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We supply long distance voice services to residential
and business customers. We also receive settlement
payments from other carriers for completing their
customers&#146; long distance calls in our territory.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prices for long distance services have been
declining since this market was opened to competition.
In 2005, the long distance services market became more
competitive with the emergence of cable telephony and
the continuing impact of non-traditional suppliers (i.e.
prepaid card, dial-around and other VoIP providers).
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We offer a full range of wireless communications
services to residential and business customers,
including cellular, personal communications services
(PCS)&nbsp;and paging. PCS customers can get wireless access
to the Internet through our Mobile Browser service or
send text messages. We also provide VAS, such as call
display and voicemail, data applications including
e-mail and video-streaming
and roaming services with other wireless service
providers. Customers can choose to pay for their
cellular and PCS services through a monthly rate plan
(postpaid)&nbsp;or in advance (prepaid). At the end of 2005,
we had approximately 5.8&nbsp;million cellular, PCS and
paging customers.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The wireless division of each of our incumbent
telephone companies provides wireless communications in
its home
territory, except for Bell Mobility, which provides
these services in its home territory, as well as in
Alberta and British Columbia.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our wireless network provides voice services, as
well as data services at typical transmission speeds of
approximately 120 kilobits per second (Kbps) delivered
over our existing single-carrier radio transmission
technology (1xRTT) network. In 2005, we launched
Canada&#146;s first EVDO wireless data network in Toronto and
Montr&#233;al. EVDO technology is the third generation (3G)
of wireless networks delivering average data download
speeds of 400-700 Kbps with peaks of up to 2.4 Mbps. We
expect to deploy EVDO in other major urban centres
across Canada in 2006. At the end of 2005 our wireless
network covered:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> 95% of the population in Ontario and Qu&#233;bec
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> approximately 90% of the population in Atlantic Canada
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the major cities in the Provinces of Alberta and British Columbia
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In 2005, we introduced two new brands geared towards the
key youth market segment. In February, we launched our
joint venture with the Virgin Group to offer wireless
services under the Virgin brand. In July, Bell Mobility
introduced Solo Mobile, a new brand featuring
custom-built services and unique applications such as a
nationwide pay-per-use push-to-talk (PTT)&nbsp;service and
the choice of postpaid or prepaid options. We are the
first Canadian wireless operator to actively market PTT
to the consumer youth segment.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">High-speed Internet access service provided through DSL
technology for residential and business customers,
particularly SMB, is a growth area for Bell Canada. At
the end of 2005, we had approximately 2.2&nbsp;million
high-speed Internet customers.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We expanded our DSL high-speed Internet footprint
in Ontario and Qu&#233;bec to 85% of homes and business lines
passed at the end of 2005, compared to 83% at the end of
2004. In Atlantic Canada, DSL high speed Internet was
available to 81% of homes and 85% of businesses at the
end of 2005, compared with 72% and 79%, respectively, at
the end of 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During 2005, we enhanced our suite of DSL services
by upgrading our Sympatico DSL Basic offering from 256
Kbps to 512 Kbps and by launching a Basic Lite DSL
service at 128 Kbps. In addition, we increased our
broadband access speed for ultra high-speed users to 5
Mbps from 4 Mbps for residential customers and to 6 Mbps
from 4 Mbps for SMB customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2005, we became a partner in Inukshuk. Inukshuk
was launched in 2003 to provide wireless high-speed
Internet access across Canada using spectrum in the 2.5
GHz range. With Inukshuk, we expect to
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><I>p. 19</I>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">have the capability to provide broadband
connections to virtually all of our customers, either
through DSL or through a fixed wireless platform, once
the network is fully deployed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We offer a full range of data services to business
customers, including Internet access, IP-based services,
ICT solutions and equipment sales. While we still offer
legacy data services such as frame relay and
asynchronous transfer mode (ATM), we continued the
process of discontinuing the sale of legacy data
services other than to current customers.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We are Canada&#146;s largest digital television provider,
broadcasting nationally more than 400 all-digital video
and audio channels and a wide range of domestic and
international programming. We also offer hardware
including, personal video recorders (PVRs), interactive
TV services and the most extensive line-up of high
definition channels in Canada. We currently distribute
our video services to more than 1.7&nbsp;million customers
through Bell ExpressVu and Bell Canada in one of three
ways:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> <I>direct-to-home (DTH)&nbsp;satellite </I>&#150; we
have been offering DTH video services nationally since
1997. We use four satellites: Nimiq 1, Nimiq 2, Nimiq 3,
and Nimiq 4-Interim, which was added in the first
quarter of 2006 to improve signal strength and
reliability while increasing capacity. Telesat operates
or directs the operation of these satellites.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
<I>very high bit rate DSL (VDSL) </I>&#150; this allows us to
expand our reach to the multiple-dwelling unit (MDU)
market. By the end of 2005, we had signed access
agreements with 757 buildings and had provisioned 464 of
them.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> <I>hybrid fibre co-axial cable </I>&#150; On August&nbsp;2,
2005, we acquired the residential assets of Cable VDN
Inc. (Cable VDN), a Montr&#233;al-based cable company selling
residential analog and digital TV. Cable VDN has over
12,500 residential cable subscribers in the Montr&#233;al
area, representing an approximate 40% penetration within
its current footprint. We believe that Cable VDN
provides us with a more cost effective way of addressing
the MDU market in Montr&#233;al, compared to VDSL, allowing
for quicker access to smaller, harder to reach MDUs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In 2006, we intend to continue investing in our IPTV
(video over Internet Protocol) platform that will target
urban households in markets within the Qu&#233;bec City to
Windsor corridor. In 2004, we received CRTC approval of
our broadcast license application to deliver video
services terrestrially to single family units (SFUs). We
started technical trials of our IPTV service in 2005 and
expect to begin customer trials in 2006. IPTV will offer
unprecedented interactivity to experience a variety of
digital content on your television.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signal piracy continues to be a major issue facing
all segments of the Canadian broadcasting industry.
During 2005, we completed the deployment of a new
conditional access system (our card swap program)
commenced in the previous year. All new customers since
August&nbsp;2004 have been supplied with the new system and,
over the past year, we have been replacing the
old smart cards of all remaining
customers. As of July&nbsp;2005, customers can only
receive DTH video and audio services over the new
conditional access system. In addition to the card swap,
we continued our ongoing efforts against television
signal theft, including sophisticated set-top box (STB)
tracking systems and specific point-of-sale practices
such as obtaining customer photo identification and
credit card information, aggressive measures to
investigate and initiate legal action against persons
engaged in the manufacture, sale and distribution of
signal theft technology, and enforcement of policies
with authorized retailers to combat piracy, including a
zero tolerance policy for activities related to signal
theft.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Terminal Sales and Other</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This category includes revenues from a number
of other sources, including:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> renting, selling and maintaining business terminal equipment
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> wireless handset and video STB sales
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> network installation for third parties
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> IT services provided by Aliant
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Wholesale business that forms part of our Other Bell
Canada segment provides local telephone, long distance,
data and other services to customers who in many cases
are also Bell Canada&#146;s competitors. These wholesale
customers, who are located principally in Ontario and
Qu&#233;bec and may also be in Western Canada and the United
States, resell these services or use them in combination
with their own network capabilities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Marketing and distribution channels</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Residential segment delivers its products and services through:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> approximately 9,000 call centre representatives
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> 382 Bell World/Espace Bell and Bell Mobility retail locations, of
which 159 are corporately owned stores with dealers owning the rest.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Over 3,800 retail points of presence through
both national retailers such as Future Shop, Best Buy,
Radio Shack, The Source by Circuit City, Wireless Wave
(Wireless only) and regional retailers in both the West
such as London Drugs and Visions and in Qu&#233;bec such as
Audiotronics/Dumoulin.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the bell.ca websites.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Customers can buy our full range of products through the
call centres, retail stores, sales representatives and
our web portals.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Residential segment&#146;s large wireline customer
base and its ability to sell through a variety of
distribution channels are
key competitive advantages.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell Canada also offers customers the convenience
of One Bill for wireline, Bell ExpressVu and Sympatico
Internet access services with a single point of contact.
At the end of 2005, we started migrating Bell Mobility
customers who receive a single invoice for their other
Bell Canada services to One Bill.
</DIV>
<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 20</I>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Communications products and services for Bell
Canada&#146;s SMB customers are delivered by Bell Canada&#146;s
SMB group. They are sold through web-portals, call
centres and dedicated sales representatives. We will
continue to focus on increasing the number of products
per customer in this market by cross-selling Internet
access, wireless, gateways, conferencing, and network
architecture and consulting services. We will also
continue to simplify our processes and the overall
experience for our customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Communications products and services for Bell
Canada&#146;s large Enterprise customers are delivered by
Bell Canada&#146;s Enterprise group. They are sold through
our web portals, call centres, dedicated sales
representatives, as well as through competitive bids
that we win. In addition to basic communications
services, the Enterprise group bundles products,
services and professional services into fully managed,
end-to-end, network-based business solutions for its
customers. It also partners with third parties to bid on
and sell complex business solutions. We are focusing on
increasing the number of customers that buy business
solutions. These offer more value, strengthen
relationships with customers and help reduce churn.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aliant sells its telecommunications products and
services through approximately 1,650 call centre
representatives, approximately 210 independent dealer
stores, 48 stores through its acquisition of DownEast
Ltd. and the aliant.net website. Aliant facilitates
customer payments through approximately 280 payment
agencies. During 2005, Aliant continued to implement
measures to simplify and speed-up various types of
customer interactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Communications products and services for Bell
Canada&#146;s Wholesale business are delivered by Bell
Canada&#146;s Carrier Services Group. They are sold through
our dedicated sales representatives, web portals and
call centres.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The telecommunications industry continues to evolve
rapidly as the industry moves from multiple
service-specific networks to IP-based integrated
communications networks where text, video, sound and
voice all travel on a single network. Bell Canada and
Aliant continue to work with Nortel Networks Corporation
(Nortel Networks) and Cisco Systems Canada, to establish
a
national multi-services IP-enabled network. See <I>Our
strategic priorities </I>for more information related to our
IP strategy. See <I>Business Highlights &#150; 2003 Highlights</I>
for more information related to agreements with Nortel
Networks and Cisco Systems Canada in relation with our
IP networks.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell Canada&#146;s communications networks provide
voice, data, wireline and wireless services to
customers across Canada and in limited areas of the
United States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell Canada&#146;s infrastructure includes:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> national transport for voice and data, including Internet traffic
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> urban and rural infrastructures for delivering services to customers
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> national wireless networks that provide voice and data services
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> satellite and VDSL delivery of video services to customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Bell Canada&#146;s national voice and data network
consists of an optical fibre network, configured as
multiple rings for redundancy and fault protection. It
reaches all major metropolitan centres and many smaller
ones in Canada, as well as New York, Chicago,
Washington, Atlanta, Dallas, Los Angeles, San Francisco
and Seattle in the United States.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell Canada&#146;s networks in major Canadian cities
also provide state-of-the-art high-speed access at
gigabit speeds based on IP technology, while continuing
to be a key provider of traditional voice and data
services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since 2004, Bell Canada has been upgrading the
access infrastructure to drive fiber to within 1 km of
its residential customers using FTTN technology. By the
end of 2005, over 2,000 FTTN nodes were deployed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In total, Bell Canada&#146;s wireless infrastructure
covered 95% of Ontario&#146;s and Qu&#233;bec&#146;s population at
December&nbsp;31, 2005. Bell Canada&#146;s wireless network also
covers major cities in the provinces of Alberta and
British Columbia. On October&nbsp;31, 2005 Bell Canada became
the first wireless operator in Canada to launch EVDO, a
3G digital wireless technology which provides the
company with new revenue opportunities in both the
business and residential markets. EVDO delivers
data-rich content such as e-mail, video messaging,
gaming, video conferencing, telematics and streaming
entertainment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell Canada has extensive copper and
voice-switching networks that provide local and
interexchange voice services to all of its business and
residential customers in Ontario, Qu&#233;bec and the
Atlantic provinces.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aliant&#146;s network provides voice, data, wireline and
wireless services to customers throughout Atlantic
Canada. In 2005 Aliant launched an IPTV service in the
Halifax market, and plans to expand this service to
other areas of Atlantic Canada in 2006. In 2005 Aliant
also commenced a technology trial for EVDO. Aliant&#146;s
EVDO service will initially be introduced to customers
in the Halifax area in early 2006 and then expanded
to other areas across Atlantic Canada.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aliant also has launched Aliant IP virtual private
network (VPN), a next generation business IP wide area
network (WAN)&nbsp;data service, connecting customers&#146;
offices and data centers throughout Atlantic Canada to
the rest of the country. This service enhances Aliant&#146;s
ability to provide ICT solutions that add value and
efficiencies to customers&#146; businesses. Aliant IP VPN is
the first IP service to be offered by Aliant over its
new state-of-the-art national multi-protocol label
switching (MPLS)&nbsp;network, developed by Aliant along with
Bell Canada. MPLS is an underlying networking technology
that enables delivery of VoIP, IP videoconferencing, IP
call center applications and other future IP
applications.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2005 Aliant expanded its digital wireless
network. As at December&nbsp;31, 2005 approximately 90% of
Atlantic Canada&#146;s population had access to Aliant&#146;s
digital wireless voice and data network.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aliant also expanded its high-speed Internet
service to pass 81% of homes and 85% of businesses in
Atlantic Canada as at December&nbsp;31, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 21</I>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Competition</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Since the local services market was opened to
competition in 1998, almost all of the markets that Bell
Canada operates in are competitive. We face intense
competition from traditional competitors, as well as
from new players entering our markets. We compete with
telecommunications and television service providers. We
also compete with other businesses and industries,
including cable, software and Internet companies, a
variety of companies that offer network services, such
as providers of business information systems, system
integrators, and other companies that deal with, or have
access to, customers through various communications
networks.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Competition in Atlantic Canada is intense. Almost
every aspect of Aliant&#146;s business is subject to
competition. Competitive factors are similar to those
identified in our Residential and Business segments.
Competition includes not only Bell Canada&#146;s major
national competitors but also competitive activity and
competitors unique to Atlantic Canada, such as Eastlink
Communications (Eastlink), especially for local service.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The CRTC regulates the prices we can charge for
basic access services. See <I>The regulatory environment we
operate in </I>for more information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Technology substitution, and VoIP in particular,
have reduced barriers to entry in the industry. This has
allowed competitors with far lower investments in
financial, marketing, personnel and
technological resources to rapidly launch new
products and services and gain market share. Certain
VoIP technology implementations do not require service
providers to own or rent physical networks, which gives
other competitors increased access to this market.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our main competitors in local and access services are:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Allstream (a division of MTS Allstream Inc.)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Rogers Telecom Inc. (formerly Sprint Canada) (Rogers Telecom)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Telus Corporation (Telus Communications)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Vid&#233;otron lt&#233;e (Vid&#233;otron), in Qu&#233;bec
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Eastlink, in the Maritime provinces
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Futureway Communications Inc., in the greater Toronto area.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Cogeco Cable Inc. (a subsidiary of Cogeco Inc.) (Cogeco),
in parts of Ontario and Qu&#233;bec
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Primus Telecommunications Canada Inc. (Primus)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Vonage Canada (a division of Vonage Holdings Corp.).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our major competitors in long distance are:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Telus Communications
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Allstream
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Rogers Telecom
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> prepaid long distance providers, such as Group of Goldline
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Primus
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> dial-around providers, such as Yak and Looney Call,
which are divisions of YAK Communications (Canada) Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Eastlink, in the Maritime provinces
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Cogeco, in parts of Ontario and Qu&#233;bec
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Vonage Canada.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We face increasing cross-platform competition as
customers replace traditional services with new
technologies. For example our wireline business competes
with VoIP, wireless and Internet services, including
chat services, instant messaging and e-mail. We are also
facing competitive pressure from cable companies as a
result of them now offering voice services over their
networks. Cable telephony is being driven by its
inclusion in discounted bundles and is now offered in a
number of markets such as Toronto, Montr&#233;al, Qu&#233;bec City
and Hamilton, with further expansion expected in 2006.
Since the offering of voice services by cable companies
is still relatively recent, it is difficult to predict
the extent and timing of any resulting loss in market
share that we might suffer as well as the extent to
which customers that cease using our voice services will
also cease using our other services such as video and
Internet access. Additional competitive pressure is also
emerging from other competitors such as electrical
utilities. These alternative
technologies, products and services are now making
significant inroads in our legacy services, which
typically represent our higher margin business.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We experience significant competition in the
provision of long distance service from dial-around
providers, prepaid card providers, VoIP service
providers, cable companies and others, and from
traditional competitors, such as interexchange carriers
and resellers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Competition for contracts to supply long distance
services to large business customers is very intense.
Customers may choose to switch to competitors that offer
lower prices to gain market share and are less concerned
about the quality of service or impact on their margins.
Competitors are also offering IP-based telephony to
business customers at attractive prices.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Atlantic Canada is the only market in Canada where
residential local service is more competitive than
business. Competition continues to increase as the
largest competitive local exchange carrier in Atlantic
Canada continues to expand into new areas in Nova
Scotia, Prince Edward Island and parts of New Brunswick
and partners with a wireless provider to add cellular
services as an option in its bundled offerings which
already consist of local, long distance, Internet and
cable television. In addition, a long distance
competitor has begun offering local service, using both
traditional wireline and VoIP in Aliant&#146;s largest urban
market, Halifax. As technology advances, competition for
local service is expected to continue to grow as VoIP
becomes more widely accepted in the market. For example,
Rogers plans to launch cable telephony in New Brunswick
and Newfoundland in 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These competitive factors suggest that our legacy
wireline customers and long distance volumes will
continue to decline in the future. Our strategy is to
mitigate these declines through cost reductions and by
building the business for newer growth services but the
margins on newer services will likely be less than the
margins on legacy services.
</DIV>
<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>


</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 22</I>
</DIV>



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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Canadian wireless telecommunications industry is
highly competitive. We compete directly with other
wireless service providers, including resellers known as
&#147;Mobile Virtual Network Operators&#148;, that aggressively
introduce, price and market their products and services.
We also compete with wireline service providers. We
expect competition to intensify as new technologies,
products and services are developed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell Mobility competes for cellular and PCS
customers, dealers and retail distribution outlets
directly with:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Rogers Wireless Inc. (including its
subsidiary Fido Inc.) (Rogers Wireless)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Telus Mobility (a business unit of Telus Communications).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Competition for subscribers to wireless services is
based on price, services and enhancements, technical
quality of the cellular and PCS system, customer
service, distribution, coverage and capacity.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We compete with cable companies and Internet service
providers (ISPs) to provide broadband and Internet
access and related services. In particular, cable
companies have focused on increased bandwidth and
discounted pricing on bundles to compete against us.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regional electrical utilities may continue to
develop and market services that compete directly with
Bell Canada&#146;s Internet access and broadband services.
Developments in wireless broadband services may also
lead to increased competition in certain geographic
areas.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the high-speed Internet access services market,
the Residential segment competes with large cable
companies, such as:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Rogers Cable Inc. (Rogers Cable)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Vid&#233;otron
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Cogeco
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Eastlink, in the Maritime provinces.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the dial-up market, the Residential segment competes
with America Online, Inc., Primus and more than 900
ISPs.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Competition for subscribers is based on the number and
kinds of channels offered, quality of the signal,
set-top box features, availability of service in the
region, price and customer service. Bell ExpressVu and
Bell Canada compete directly with Star Choice Television
Network Inc., another DTH satellite television provider,
and with cable companies across Canada.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell Canada offers video services through DTH
Satellite, VDSL and hybrid fibre co-axial cable. It has
also received a licence to offer video on a wireline
basis. See <I>The regulatory environment we operate in
&#150; Broadcasting Act </I>for more information on Bell Canada&#146;s licence.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell ExpressVu and Bell Canada continue to
face competition from unregulated U.S. DTH satellite
television services that are illegally sold in Canada.
Bell ExpressVu and Bell Canada&#146;s competitors also
include Canadian cable television providers,
such as:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Rogers Cable
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Shaw Communications Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Vid&#233;otron
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Cogeco
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Eastlink and Persona Communications Corp., in the
Maritime Provinces.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our Wholesale business&#146; main competitors include
traditional carriers and emerging carriers. Traditional,
facilities-based competitors include Allstream and Telus
Communications who may wholesale some or all of the same
products and services as Bell Canada. Emerging
competitors include utility-based telecommunications
providers, cable operators and US-based carriers for
certain services.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Competitive activity for tariffed services (e.g.
Centrex and digital private line services) is moderate,
with facilities-based carriers providing the primary
threat in regulated voice and data access products.
Competition is greatest in the unregulated areas,
especially for toll minutes and forborne data services.
For example, in the data market for private line, frame
and ATM products, we face continued price pressure as
well as the ongoing threat of customers evolving to
IP-based services. Our resale DSL market, however,
continues to grow. The recent growth of end-user
technologies such as VoIP is also expected to increase
pressure on some legacy product lines.
</DIV>
<DIV align="left">
<A name="114"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">OTHER BCE SEGMENT
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Other BCE segment includes our other media and
satellite activities. This segment includes Bell
Globemedia and Telesat. For more information with
respect to the sale of a portion of our Bell Globemedia
interest, the proposed recapitalization and public
offering of Telesat and the sale of our interest in CGI
Group Inc. (CGI), <I>see Business Highlights &#150; 2005
Highlights &#150; Key Acquisitions and Dispositions</I>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues for the Other BCE Segment tend to be
highest in the fourth quarter and the lowest in the
third quarter because of seasonal patterns in
advertising spending in the fall and summer
respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL GLOBEMEDIA
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Bell Globemedia provides information and
entertainment services to Canadian customers and access
to distinctive Canadian content. It includes CTV,
Canada&#146;s leading private broadcaster, and The Globe and
Mail, Canada&#146;s leading national newspaper.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>
</DIV>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 23</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell Globemedia&#146;s revenues mainly come from
selling advertising through its TV and print businesses.
Revenues also come from subscriptions to The Globe and
Mail&#146;s newspaper and on-line businesses and subscription
fees that cable and DTH satellite television companies
pay for carrying Bell Globemedia&#146;s specialty TV
channels, such as TSN, RDS and Discovery Channel.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See <I>The regulatory environment we operate in &#150;
Broadcasting Act </I>for information about regulations that
affect Bell Globemedia.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CTV is Canada&#146;s leader in conventional and specialty
television. It operates the CTV Television Network, a
private English-language national television network
that reaches almost all English-speaking Canadians.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CTV has ownership interests in and/or manages
several analogue and digital specialty television
channels in Canada. These include CTV Newsnet, The
Comedy Network, Outdoor Life Network, Talk TV, ROB TV
and CTV Travel. Through its approximate 70.1% economic
interest in CTV Specialty Television Inc., CTV has
ownership interests in and/or manages the specialty
television channels, TSN, RDS and Discovery Channel, and
a number of digital specialty television channels, which
include ESPN Classic Canada, Animal Planet, Discovery
Civilization Channel, the NHL Network, Discovery HD and
RIS Info Sports. CTV also produces and distributes
television programs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The Globe and Mail</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Founded in 1844, The Globe and Mail is Canada&#146;s National
Newspaper. It circulates an English-language edition six
days a week in every province and territory.
Globeandmail.com provides around the clock news
coverage. For the 12&nbsp;months ended September&nbsp;30, 2005,
total circulation was 326,707 copies a day, Monday to
Friday, and 409,200 copies on Saturday. This was 35.6%
higher on weekdays and 55.6% higher on Saturdays than
its main competitor, the National Post. Total readership
can exceed one million people a day. The Globe and Mail
has a 40% interest in workopolis.com.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">While CTV&#146;s broadcast operations have a significant
market share in their broadcast areas, they face
substantial competition for viewers and advertising
revenues from CanWest Global Communications Corp.
(CanWest), CHUM Limited, Alliance Atlantis
Communications Inc., Corus Entertainment Inc., Canadian
Broadcasting Corporation and other companies.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Globe and Mail competes with a broad range of
print media for circulation and advertising revenues.
Competition has intensified since the National Post was
launched in 1998. In the
past few years, several commuter papers were also
launched in Toronto and Vancouver, which are key
markets for The Globe and Mail. The Globe and Mail also
competes for readers and advertisers with Quebecor
Inc.&#146;s
Sun Media newspaper chain, CanWest&#146;s many local
daily newspapers across Canada, and The Toronto Star,
which is owned by Torstar Inc. Through its interest in
workopolis.com, The Globe and Mail competes for
electronic job posting fees and other fees from
employers managing their workforces. Key competitors in
Canada are Monster, Jobboom, Careerbuilder, Yahoo&#146;s Hot
Jobs and CanWest&#146;s Working.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">TELESAT
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In 1972, Telesat launched the world&#146;s first
commercial domestic geostationary satellite system,
established to provide satellite-based
telecommunications services for Canada. Today, Telesat
provides a wide variety of video and two-way data
services as well as various consulting services dealing
with all aspects of the satellite business.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It owns and operates five satellites, and leases
two additional satellites. These satellites provide
broadcast distribution and telecommunication services to
customers in North America and South America. Three of
these satellites, Nimiq 1, Nimiq 2 and Nimiq 3 provide
capacity and back-up capability for Bell ExpressVu&#146;s DTH
satellite television services. A fourth satellite, Nimiq
4-Interim, a satellite leased by Telesat, will also
provide further capacity and back-up capability for Bell
ExpressVu beginning in the first quarter of 2006.
Telesat also has two satellites under construction,
which are expected to be launched in 2006 and 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">DISCONTINUED OPERATIONS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the past two years, we have disposed of, or
approved formal plans for disposing of, a number of our
businesses, including:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> our decision on December&nbsp;16, 2005 to sell our investment in CGI
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Emergis Inc.&#146;s (Emergis) U.S. Health operations, which were sold
in March&nbsp;2004
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Emergis, which was sold in May&nbsp;2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our decision to sell our 29.8% stake in CGI was made
following a review of our investment, which determined
that it was no longer strategically essential for BCE to
hold an equity interest in CGI. On the closing date of
the transaction (January&nbsp;12, 2006), BCE Inc. sold 100
million Class&nbsp;A shares to CGI for cash proceeds of $859
million. We intend to dispose of our remaining 28.3
million Class&nbsp;A shares (representing 8.6% of the
outstanding shares of CGI).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All of these business dispositions were treated as
discontinued
operations. We therefore restated the financial
results of all previous years to exclude the results of
these businesses.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 24</I>
</DIV>



<DIV align="left">
<A name="115"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>OUR POLICY ON CORPORATE RESPONSIBILITY</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On November&nbsp;2, 2004, BCE Inc. adopted an
environmental policy that affirms:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> our commitment to environmental protection
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> our belief that environmental protection is an integral part of doing
business, and needs to be managed systematically under a
continuous improvement process.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The policy contains principles that support our
commitment, varying from exercising due diligence to
meet or exceed the environmental legislation that
applies to us, to preventing pollution and promoting
cost-effective initiatives that minimize resources and
waste.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have instructed subsidiaries subject to this
policy to support these principles, and have established
a management-level committee to oversee the
implementation of the policy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell Canada monitors its operations to ensure that
it complies with environmental requirements and
standards, and takes action to prevent and correct
problems, when needed. It has had an environmental
management and review system in place since 1993, that:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> provides early warning of potential problems
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> identifies management and cost saving opportunities
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> establishes a course of action
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> ensures ongoing improvement through regular monitoring
and reporting
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">One of its key tools is the corporate environmental
action plan, which outlines the environmental activities
of Bell Canada&#146;s various business units. The plan
identifies funding requirements, accountabilities and
deliverables, and monitors Bell Canada&#146;s progress in
meeting its objectives. As of December&nbsp;31, 2005, Bell
Canada has integrated the following entities into its
corporate environmental action plan: Bell Canada, Bell
Mobility, Bell ExpressVu, Bell West, BCE Nexxia Corp.,
Expertech, T&#233;l&#233;bec, NorthernTel, Northwestel and
Telesat.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the year ended December&nbsp;31, 2005, Bell Canada
spent $14.0&nbsp;million on environmental activities, 69% of
this was expenses and 31% was for capital expenditures.
For 2006, Bell Canada has budgeted $15.3&nbsp;million (70%
for expenses and 30% for capital expenditures) to ensure
that its environmental policy
is applied properly and its environmental risks are
minimized.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2002 Aliant adopted a comprehensive
environment policy which provides for the identification
of activities and situations which may have potential to
harm the environment, and the implementation of
environmentally friendly practices and preventive
measures. Aliant&#146;s program seeks to ensure that Aliant
complies with all environmental regulatory requirements
and that its activities are carried out in a manner that
minimizes risk to the environment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aliant manages its environment program through
processes similar to those employed by Bell Canada, and
collaborates on many levels to seek harmonization with
Bell Canada&#146;s environment program. Aliant has adopted an
environment action plan which sets out specific
environmental goals for 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell Globemedia monitors its operations to ensure
that it complies with environmental requirements and
standards. Its major business units have established
environmental practices, which they follow, and have
measures in place to manage environmental risks and to
correct problems, when needed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are committed to sustainable development and
integrate environmental, social and economic
considerations into our business decisions. We engage
with stakeholders to identify opportunities to create
benefits for both society and the company while
minimizing where we can, any negative impact our
activities may generate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are an active member of the Global
e-Sustainability Initiative (GeSI) (www.gesi.org), an
international organization that promotes sustainable
development in the ICT industry. Partners of the GeSI
acknowledge the need for the ICT industry to take a
leadership role in:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>&nbsp;better understanding the
impact and opportunities offered by its evolving
technology in a fast growing information society; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>&nbsp;providing individuals, businesses and
institutions with sustainable solutions to the
challenges they face in attempting to maintain a balance
between economy, ecology and society.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BCE Inc. is a component of socially responsible
investment indices such as the Dow Jones Sustainability
Index, the FTSE4 GOOD Index and the Jantzi Social Index.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><I>p. 25</I>

<DIV align="left">
<A name="116"></A>
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This section describes significant events in the
past three years that have influenced our business.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">2005 HIGHLIGHTS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Key Acquisitions and Dispositions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Acquisition of Nexxlink Technologies Inc. (Nexxlink)</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On December&nbsp;9, 2004, Bell Canada announced that it
intended to offer to acquire all of the outstanding
shares of Nexxlink, a provider of integrated IT
solutions, at a price of $0.65 per share. As of February
21, 2005, Bell Canada had bought 89% of all the
outstanding shares of Nexxlink for $59&nbsp;million in cash.
Bell Canada purchased the remaining shares in a
subsequent transaction by way of amalgamation, which was
approved at a Nexxlink shareholders&#146; meeting on April&nbsp;7,
2005.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Acquisition of Entourage</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On April&nbsp;30, 2005, Bell Canada completed the purchase of
the interest of Entourage that it did not already own
and Entourage became a wholly-owned subsidiary.
Entourage is Bell Canada&#146;s residential installation and
repair supplier. See <I>About BCE &#151; Our employee</I>s for more
information about Entourage.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Alliance with Clearwire Corporation (Clearwire)</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On March&nbsp;8, 2005, Bell Canada announced an alliance with
Clearwire, a privately-held company led by Mr.&nbsp;Craig O.
McCaw, through which Bell Canada became Clearwire&#146;s
exclusive strategic partner for VoIP and certain other
value-added IP services and applications in the United
States. Bell Canada will also become Clearwire&#146;s
preferred provider of these services and applications in
markets beyond North America.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Clearwire offers advanced IP-based wireless
broadband communications services in the U.S. and other
international markets. Its core offering is a non
line-of-sight (NLOS)&nbsp;wireless broadband data service
that uses technology provided by NextNet Wireless,
Inc., a Clearwire subsidiary, to allow customers
&#147;nomadic&#148; Internet access. &#147;Nomadic&#148; refers to the
ability to access the Internet from any place within the
service area that has a power supply. Bell Canada will
manage the deployment and operation of Clearwire&#146;s U.S.
VoIP offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell Canada completed an investment of US$100
million in Clearwire for an approximate 12% interest and
Mr.&nbsp;Michael Sabia joined Clearwire&#146;s board of directors.
Subsequent funding by Clearwire has reduced Bell
Canada&#146;s interest to approximately 11%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Acquisition of Cable VDN residential assets</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On August&nbsp;2, 2005, Bell Canada announced the purchase of
the residential assets of Cable VDN, a Montr&#233;al-based
cable company selling residential analog and digital TV
and high-speed Internet services for $26&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Alliance with Rogers to build nationwide wireless broadband network</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On September&nbsp;16, 2005, Bell Canada announced an alliance
with Rogers to jointly build and manage a nationwide
wireless broadband network through Inukshuk, which will
hold approximately 98 MHz of wireless broadband spectrum
in the 2.5GHz frequency range across much of Canada.
Inukshuk is owned and controlled equally by Bell Canada
and Rogers who will jointly and equally fund the initial
network deployment costs estimated at $200&nbsp;million over
a three year period. The development and
commercialization of services, as well as sales,
marketing and end-user customer care and billing
functions will be provided directly by Bell Canada and
Rogers to their respective customers. Separately, in
conjunction with this transaction, Bell Canada reached
an agreement with companies controlled directly or
indirectly by Craig McCaw to acquire the remaining 50%
of NR Communications Ltd. not already owned by Bell
Canada.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Sale of Bell Globemedia interest</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On December&nbsp;2, 2005, BCE Inc. announced an agreement to
sell 20% of Bell Globemedia to Teachers, to sell an
additional 20% to Torstar and finally to sell 8.5% to
Woodbridge decreasing BCE&#146;s holding in Bell Globemedia
from 68.5% to 20% and increasing Woodbridge and its
affiliate&#146;s holding from 31.5% to 40%. These changes are
subject to a number of approvals and closing conditions,
including the approval of the CRTC and the Competition
Bureau. At closing, which is expected to take place in
the third quarter of 2006, Teachers and Torstar will
each purchase their 20% interest in Bell Globemedia from
BCE for $283&nbsp;million and Woodbridge will purchase its
additional 8.5% interest for $120&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In conjunction with the sale agreement, Bell
Globemedia restructured its capital through additional
borrowing and a return of capital to BCE Inc. and
Woodbridge. The recapitalization was completed on
January&nbsp;23, 2006 with proceeds to BCE Inc. of
approximately $607&nbsp;million. Total proceeds to BCE Inc.
from the return of capital and the sale of a 48.5%
interest in Bell Globemedia are expected to be
approximately $1.3&nbsp;billion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Sale of CGI interest</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On December&nbsp;16, 2005, BCE Inc. announced its decision to
sell its 29.8% interest in CGI. On January&nbsp;12, 2006, CGI
purchased 100&nbsp;million of its Class&nbsp;A shares held by BCE
Inc. at a price of $8.5923 per share for total proceeds
to BCE Inc. of $859.23&nbsp;million. The shareholders&#146;
agreement between BCE Inc. and CGI was terminated upon
completion of the transaction. BCE Inc. intends to
dispose of its remaining 28.3&nbsp;million Class&nbsp;A shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the same time BCE and CGI have extended their
outsourcing agreements. CGI will remain Bell Canada&#146;s
preferred IS/IT (information systems/information
technologies) provider until June&nbsp;2016. CGI&#146;s
outsourcing of its Canadian communications network
management requirements to Bell Canada has been
similarly extended. The commercial alliance between CGI
and Bell Canada&#146;s Enterprise Group will also be extended
to 2016.
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>


</DIV>
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<P align="left" style="font-size: 10pt"><I>p. 26</I>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Strategic announcement of February&nbsp;1, 2006</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>&#151; Formation of rural lines income trust</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On February&nbsp;1, 2006, BCE Inc. announced its intention to
form a new income trust that was expected to own and
manage approximately 1.6&nbsp;million local access lines in
parts of Bell Canada&#146;s territory in Ontario and Qu&#233;bec.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>&#151; Proposed public offering for Telesat</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On February&nbsp;1, 2006, BCE Inc. announced its intention to
implement a recapitalization of Telesat and a public
offering of a minority stake in Telesat in the second
half of 2006. Telesat provides Bell Canada and Bell
ExpressVu with a variety of satellite based services
pursuant to various commercial agreements and these
commercial relations are expected to continue in effect
after the public offering.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>&#151; Normal course issuer bid</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On February&nbsp;1, 2006, BCE Inc. also announced its
intention to repurchase 5% of its outstanding common
shares through a normal course issuer bid. BCE Inc. has
filed its final notice of intention to make a normal
course issuer bid with the TSX, which allows it to
purchase for cancellation up to 46,000,000 of its common
shares, representing approximately 5% of BCE Inc.&#146;s
927,321,825 common shares outstanding as of the close of
the market on January&nbsp;16, 2006. Purchases of the common
shares will be carried out through the TSX and/or the
NYSE and will be made in accordance with the
requirements of such exchanges. Purchases of common
shares are permitted to be made from time to time, at
market prices, during the period starting February&nbsp;3,
2006, and ending no later than February&nbsp;2, 2007.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Formation of regional telecommunications service provider</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On March&nbsp;7, 2006, BCE Inc. and Aliant announced their intention to create a new regional
telecommunications service provider in the form of an income trust which would combine Bell
Canada&#146;s regional wireline operations with Aliant&#146;s wireline operations. The new trust would also
own Bell Canada&#146;s 63.4% interest in NorthernTel and T&#233;l&#233;bec indirectly held through Bell Nordiq
Group Inc., an indirect wholly-owned subsidiary of Bell Canada.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By combining these assets, we will create a new regional telecommunications service provider of
significant scale and scope that brings a strong focus on customer service and regional needs. The
new trust will be controlled by BCE and will remain integral to Bell Canada&#146;s operations, ensuring
that we retain control of core assets in the most capital efficient way.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The new trust, which will be headquartered in Atlantic Canada, is expected to own approximately 3.4
million local access lines, have approximately 400,000 high-speed Internet subscribers in six
provinces, and manage the provision of all wireline, legacy data and Internet products for all
residential and business customers located in its territory. The transition to the trust will be
seamless for customers as products and services will continue to be sold under the Bell and
Sympatico brands within the trust&#146;s operating territory in Ontario and Qu&#233;bec and under the Aliant
and DownEast brands in Atlantic Canada.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the same time, in partial exchange for its contribution to a subsidiary of the trust, Bell
Canada will acquire Aliant Mobility and Aliant&#146;s DownEast Communications retail outlets.
Furthermore, approximately $1.25&nbsp;billion of Bell Canada debt will effectively be transferred to the
trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon closing, BCE will hold a 73.5% indirect interest in the trust, which it expects to reduce to
approximately 45% through a distribution of trust units to holders of BCE Inc. common shares. At
closing, Aliant&#146;s minority shareholders will exchange their common shares for trust units,
retaining a 26.5% interest in the new trust. Bell Nordiq Income Fund will continue to trade and
operate independently.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCE plans to establish a governance structure for the proposed income trust in line with comparable
current income trust precedents, and will control and consolidate the financial results of the new
trust. BCE will retain the ability to nominate a majority of the board of trustees of the trust
and of the board of directors of the operating entities of the trust as long as it owns a 30 per
cent or more interest in the trust. Also, BCE will have the ability to veto certain actions of the
new trust and its operating entities as long as it owns a 20 per cent or more interest in the new
trust. At closing, Bell Canada and the trust will enter into a number of outsourcing and commercial
agreements pursuant to which Bell Canada will support the operations of the trust. Similar
agreements will be entered into between the trust and Bell Canada to support Bell Canada&#146;s wireless
operations in Atlantic Canada. The transaction is expected to close as early as the third quarter
of 2006
but only once all closing conditions are satisfied and all necessary approvals and consents are
obtained.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Canadian broadcast media rights for Olympics</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On February&nbsp;7, 2005, the International Olympic Committee
(IOC)&nbsp;awarded the Canadian broadcast media rights for
the Vancouver 2010 Winter Games and the London 2012
Summer Games to a consortium composed of CTV and Rogers
Media Inc. The total fees payable by the consortium to
the IOC for such rights is US$153&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Introduction of Bell Digital Voice</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On September&nbsp;8, 2005 Bell Canada introduced an enhanced
VoIP product for consumers in the Greater Toronto Area
and Hamilton and on October&nbsp;25, 2005 in the greater
Montr&#233;al area. The new service, Bell Digital Voice, uses
existing phone lines to provide customers with advanced
Internet-based calling features.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Other Developments</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Labour Agreements</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For information with respect to labour agreements
entered into in 2005 see About BCE &#151; Our employees.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><I>p. 27</I>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt">2004 HIGHLIGHTS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following events influenced our business in
2004 or were referred to in our 2004 AIF.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> On February&nbsp;10, 2004, Bell Canada exchanged
its 3.24% indirect interest in YPG LP and YPG General
Partner Inc. (Yellow Pages Group) for units of the
Yellow Pages Income Fund. On July&nbsp;21, 2004, Bell Canada
sold its remaining interest in the Yellow Pages Income
Fund for net cash proceeds of $123&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> On March&nbsp;30, 2004, Bell Canada and The
Virgin Group announced plans to launch mobile voice and
data services in Canada through a jointly-owned entity,
Virgin Mobile Canada. Virgin Mobile Canada launched its
services through a national rollout using our 1X digital
wireless network on March&nbsp;1, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> On May&nbsp;20, 2004, Bell Canada filed a lawsuit
against Manitoba Telecom Services Inc. (MTS)&nbsp;after MTS
announced it would purchase Allstream Inc. Bell Canada
sought damages and an injunction that would prevent MTS
from breaching the terms and conditions of the
commercial agreements it had with Bell Canada. On June
3, 2004, Bell Canada also filed a lawsuit against
Allstream Inc. seeking damages related to the same
announcement. On June&nbsp;30, 2004, BCE Inc. reached an
agreement with MTS to settle the lawsuits. The terms of
the settlement included: a payment of $75&nbsp;million by MTS
to Bell Canada received on August&nbsp;3, 2004 for unwinding
various commercial agreements; the removal of
contractual competitive restrictions to allow Bell
Canada and MTS to compete freely with each other,
effective June&nbsp;30, 2004; the orderly disposition of our
interest in MTS (our voting rights in MTS were waived
after receiving the $75&nbsp;million payment); and a premium
payment to us by MTS, if there had been a change of
control of MTS before January&nbsp;1, 2006 and if there had
been an appreciation in MTS&#146; share price from the time
of our divestiture to the time of any takeover
transaction. On August&nbsp;1, 2004, the MTS shares held by
Bell Canada were transferred to BCE Inc. In late
September&nbsp;2004, BCE Inc. disposed of its 15.96%
non-strategic interest in MTS. Total net cash proceeds
from this transaction were $584&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> On May&nbsp;21, 2004, Bell Canada acquired 100%
of the outstanding shares of Infostream Technologies
Inc., a systems and storage technology firm.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> On May&nbsp;26, 2004, Bell Canada announced an
agreement to purchase the Canadian operations of
Vancouver-based
360 networks, a telecommunications service provider, for
$293&nbsp;million (including acquisition costs) in cash. The
transaction was completed on November&nbsp;19, 2004. The
purchase included the shares of 360networks&#146; subsidiary,
Group Telecom, and certain related interconnected U.S.
network assets. Following the purchase, Bell Canada sold
the retail customer operations in Central and Eastern
Canada to Call-Net Enterprises Inc. (Call-Net). For a
share of the revenues, Bell Canada now provides network
facilities and other operations and support services to
Call-Net so Call-Net can service its new customer base.
This transaction gave Bell Canada an extensive fibre
network that includes leading-edge
local facilities in Vancouver, Victoria, Calgary,
Edmonton and other cities in Western Canada. Bell Canada
also gained access to almost 200 office buildings in
Western Canada.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> In June&nbsp;2004, Bell Canada acquired Emergis&#146; security business.
This business provides organizations with the security
infrastructure for their electronic service delivery
needs to help ensure data is secure and viewed only by
the appropriate individuals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> In June&nbsp;2004, Bell Canada announced an
employee departure program that consisted of two phases.
The first phase was an early retirement plan and the
second phase was a departure plan. Under the early
retirement plan, eligible employees chose to receive a
package that included a cash severance, immediate
pension benefits, an additional guaranteed pension
payable up to 65&nbsp;years of age, career transition
services and post-employment benefits. Under the early
departure plan, employees chose to receive a special
cash allowance. Of the 7,000 eligible employees, 3,950
decided to take advantage of the early retirement plan
and another 1,050 employees decided to take advantage of
the early departure plan. A total of approximately 5,000
employees left the company, which represented
approximately 11% of Bell Canada&#146;s total employee base
(excluding Aliant). Almost all of the employees who
chose to take advantage of the program left Bell Canada
in 2004. The rest left during 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> On June&nbsp;9, 2004, Bell Canada launched
Sympatico.MSN.ca in partnership with Microsoft
Corporation (Microsoft). Sympatico.MSN.ca is a single
portal combining the best features and Internet tools of
MSN Canada Co. with the broadband content and innovative
services of Sympatico.ca. At the same time, Bell Canada
introduced Sympatico with MSN Premium, a custom-built
version of the software featuring tools that enable a
safer online experience, including pop-up ad blocking,
spam filtering and parental controls.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> On June&nbsp;16, 2004, BCE Inc. completed the
sale of its 63.9% interest in Emergis for net cash
proceeds of $315&nbsp;million. Emergis was presented
previously as a separate segment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> On August&nbsp;3, 2004, Bell Canada assumed 100%
ownership of
Bell West Inc. by purchasing the 40% interest held by
MTS for $646&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> On August&nbsp;16, 2004, Bell Canada reached a
new four-year agreement with approximately 7,100
technicians represented by the CEP. This agreement will
expire in November&nbsp;2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> On September&nbsp;16, 2004, Aliant&#146;s subsidiary, Aliant Telecom Inc.
(Aliant Telecom) reached a new agreement with its
approximately 4,300 unionized employees, represented by
the Council of Atlantic Telecommunication Unions (CATU).
They voted to accept a new collective agreement that
will expire in December&nbsp;2007, ending a labour disruption
that began in April&nbsp;2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> In October&nbsp;2004, Aliant offered a voluntary
Early Retirement Incentive Program (ERIP)&nbsp;to eligible
employees, which was accepted by 693 employees,
including 654 employees or 11% of the workforce of
Aliant Telecom. Approximately 400 of the ERIP
participants retired effective January&nbsp;1, 2005, and the
remainder left during 2005.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt"><I>p. 28</I>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> On October&nbsp;18, 2004, Bell Canada was
selected by the Vancouver Organizing Committee as its
Premier National Partner for the 2010 Olympic and
Paralympic Winter Games. The partnership continues
through to 2012, securing the Canadian Olympic Team
sponsorship rights to Torino in 2006, Bejing in 2008,
Vancouver in 2010, London in 2012 and for two
Pan-American Games. It provides Bell Canada with the
opportunity to build its brand by associating with one
of the world&#146;s strongest and most recognized brands.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">2003 HIGHLIGHTS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following events influenced our business in
2003 or were referred to in our 2003 AIF:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> On July&nbsp;2, 2003, Bell Canada sold its 89.9%
ownership interest in Certen Inc. to a subsidiary of
Amdocs Limited for $89&nbsp;million in cash.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> On September&nbsp;8, 2003, Bell Canada announced
that it was partnering with Nortel Networks to build
Canada&#146;s most advanced next-generation network based on
IP technology. Bell Canada expects to deliver the latest
IP telephony and multimedia applications and services to
Canadians under a comprehensive agreement with Nortel
that includes a joint research and development
initiative. On December&nbsp;16, 2003, Bell Canada announced
that it was adding Nortel optical network technology to
its IP offering. This allows greater volumes of voice
and data to travel at faster speeds over the Internet at
lower costs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> On October&nbsp;20, 2003, Bell Canada and Lucent
Technologies Canada Corp. announced their agreement to
accelerate the delivery of Bell Canada&#146;s broadband
services to more customers in Ontario and Qu&#233;bec.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> In December&nbsp;2003, Aliant completed the sale
of its 53.2% interest in Stratos Global Corporation.
Aliant received $340&nbsp;million ($320&nbsp;million net of
selling costs) in cash for the sale.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> On December&nbsp;16, 2003, Bell Canada announced
the creation of the Bell Canada Video Group. It is part
of Bell Canada&#146;s consumer markets group and is
responsible for Bell Canada&#146;s video initiatives. These
include DTH satellite television, VDSL services and IPTV
services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> On December&nbsp;17, 2003, Bell Canada announced
that it had completed the sale of a 3.66% interest in
Yellow Pages Group to the YPG Trust. Twelve million
limited partnership units and 12&nbsp;million common shares
were sold to YPG Trust for a net cash consideration of
$135&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> On December&nbsp;17, 2003, we announced our
multi-year plan to lead change in the industry and set
the standard in the IP world while continuing to deliver
on our goals of innovation, simplicity and service, and
efficiency. Significant progress was made in 2005 in
furthering our innovation goals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> On January&nbsp;19, 2004, Bell Canada and Cisco
Systems Canada (Cisco) announced a strategic alliance to
accelerate the creation, commercialization and delivery
of a comprehensive suite of IP services.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2005, Bell Canada and Cisco worked
together to enhance the performance and reliability of
the Bell Canada IP network and related support systems.
In addition, a co-selling program was initiated to allow
joint planning of solutions for a group of leading
retail customers.
</DIV>
<DIV align="left">
<A name="117"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>THE REGULATORY ENVIRONMENT WE OPERATE IN</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This section describes the legislation that
governs our businesses, and provides highlights of
government consultations and recent regulatory changes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The CRTC, an independent agency of the Government
of Canada, is responsible for regulating Canada&#146;s
telecommunications and broadcasting services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The CRTC may decide not to regulate all or part of
certain services or classes of telecommunications
services if it determines there is enough competition to
protect the interests of users. The CRTC may also exempt
broadcasting undertakings from complying with certain
licensing and regulatory requirements if the CRTC is
satisfied that complying with those requirements will
not materially affect the implementation of Canadian
broadcasting policy.
</DIV>
<DIV align="left">
<A name="118"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">LEGISLATION THAT GOVERNS OUR BUSINESS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Bell Canada, Aliant Telecom and several of Bell
Canada&#146;s direct and indirect subsidiaries and associated
companies, including Bell Mobility and Bell ExpressVu,
as well as CTV and certain of its direct and indirect
subsidiaries are regulated by the CRTC. Other aspects of
the businesses of Bell Canada, Bell Mobility and MT&#038;T
Mobility Inc. (MT&#038;T Mobility), a subsidiary of Aliant
Telecom, are regulated in various ways by federal
government departments, in particular Industry Canada.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February&nbsp;23, 2005, the Government of Canada
announced in its Budget 2005 that it would appoint a
panel of eminent Canadians to review Canada&#146;s
telecommunication policy and regulatory framework with
the aim of ensuring that Canada&#146;s telecommunications
industry continues to support Canada&#146;s long-term
competitiveness.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On April&nbsp;11, 2005, the Minister of Industry
announced the creation of the Telecom Policy Review
Panel to conduct a review of Canada&#146;s telecommunications
policy and regulatory framework, and make
recommendations. The panel conducted its review
throughout the summer and fall of 2005, receiving nearly
200 submissions. It is not clear when the report will be
released to the public.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On November&nbsp;25, 2005, Bill C-37, An Act to Amend
the <I>Telecommunications Act</I>, received Royal Assent. Bill
C-37 provides for the establishment of a national Do Not
Call List to reduce the volume of unsolicited
telemarketing calls Canadians receive. It permits the
CRTC to administer fines (Administrative Monetary
Penalties, or AMPs) to parties who contravene the
prohibitions regarding unsolicited telemarketing set out
in the Bill and to be set out in the regulations to be
established after the CRTC completes a public
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
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<P align="right" style="font-size: 10pt"><I>p. 29</I>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">proceeding which began on February&nbsp;20, 2006. It
also permits the CRTC to select a third party
administrator to oversee the national Do Not Call List.
The national Do Not Call List is expected to be
operational in mid 2007.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Bell Canada Act</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under the <I>Bell Canada Act</I>, the CRTC must approve any
sale or other disposal of Bell Canada voting shares that
are held by BCE Inc., unless the sale or disposal would
result in BCE Inc. retaining at least 80% of all of the
issued and outstanding voting shares of Bell Canada.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The <I>Telecommunications Act </I>governs telecommunications in
Canada. It defines the broad objectives of Canada&#146;s
telecommunications policy and gives the government the
power
to give general direction to the CRTC on any of these
objectives. It applies to several of the Bell Canada
companies and partnerships, including Bell Canada, Bell
Mobility, NorthernTel, Northwestel, T&#233;l&#233;bec and Aliant
Telecom and its affiliates.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the <I>Telecommunications Act</I>, all
telecommunications common carriers must seek regulatory
approval for all proposed tariffs for telecommunications
services, unless the services are exempt or are not
regulated. The CRTC may exempt an entire class of
carriers from regulation under the <I>Telecommunications
Act </I>if the exemption meets the objectives of Canada&#146;s
telecommunications policy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The <I>Telecommunications Act </I>includes the following
ownership requirements for companies, such as Bell
Canada, Aliant Telecom or Bell Mobility, that operate as
telecommunications common carriers:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> they must be eligible to operate as Canadian carriers
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> they must be Canadian owned and controlled corporations. Direct
ownership must be at least 80% Canadian and indirect
ownership, such as indirect ownership by BCE Inc., must
be at least 66<SUP style="font-size: 85%; vertical-align: text-top">2</SUP>/<SUB style="font-size: 85%; vertical-align: text-bottom">3</SUB>%
Canadian
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> they must not otherwise be foreign controlled
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> at least 80% of the members of their board of directors
must be Canadian.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BCE Inc. monitors and periodically reports on the level
of non-Canadian ownership of its common shares.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The <I>Broadcasting Act </I>assigns the regulation and
supervision of the broadcasting system to the CRTC. Key
policy objectives of the B<I>roadcasting Act </I>are to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> protect and strengthen the cultural,
political, social and economic fabric of Canada
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
encourage the development of Canadian expression.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Most broadcasting activities require a
broadcasting licence or broadcasting distribution
licence from the CRTC. A corporation must meet the
following ownership requirements to obtain a
broadcasting or a broadcasting distribution licence:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> it must be Canadian owned and controlled. At
least 80% of all outstanding and issued voting shares
and at least 80% of the votes must be beneficially owned
directly by Canadians
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> it must not otherwise be controlled by non-Canadians
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> at least 80% of the board of directors, as well as the chief executive
officer, must be Canadian
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> at least
66<SUP style="font-size: 85%; vertical-align: text-top">2</SUP>/<SUB style="font-size: 85%; vertical-align: text-bottom">3</SUB>% of all
outstanding and issued voting shares, and at least
66 <SUP style="font-size: 85%; vertical-align: text-top">2</SUP>/<SUB style="font-size: 85%; vertical-align: text-bottom">3</SUB>% of the votes of
the parent corporation, must be beneficially owned and
controlled, directly or indirectly, by Canadian
interests.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If the parent corporation of a broadcasting licensee has
fewer than 80% Canadian directors on its board of
directors, a non-Canadian chief executive officer or
less than 80% Canadian ownership, the parent corporation
must demonstrate to the CRTC that it or its directors do
not have control or influence over any of the
broadcasting licensee&#146;s programming decisions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporations must have the CRTC&#146;s approval before
they can transfer effective control of a broadcasting
licensee. The CRTC may impose certain requirements,
including the payment of certain benefits, as a
condition of the transfer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Four of the Bell Canada companies&#146; partnerships or subsidiaries
&#151; Bell ExpressVu, Aliant Telecom, Northwestel and
Cablevision du Nord de Qu&#233;bec Inc., a T&#233;l&#233;bec subsidiary
&#151; have broadcasting distribution licences that allow
them to offer services. Bell ExpressVu is permitted to
offer services nationally. Aliant Telecom is permitted
to offer services in Nova Scotia and New Brunswick.
T&#233;l&#233;bec is permitted to offer services in specific areas
of Ontario and Qu&#233;bec. Northwestel is permitted to offer
services in specific areas of the Northwest Territories.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January&nbsp;31, 2006, the CRTC renewed Bell
ExpressVu&#146;s pay-per-view licence for another full term,
with no substantive changes to its conditions of
licence. The new licence expires August&nbsp;31, 2012.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On November&nbsp;18, 2004, the CRTC issued Broadcasting
Decision CRTC 2004-496, which approved Bell Canada&#146;s
applications for licences to operate terrestrial
broadcasting distribution undertakings (BDUs), using its
wireline facilities, to serve large cities in Southern
Ontario and Qu&#233;bec. Bell Canada was licensed under the
same terms and conditions that apply to major cable
operators, without any delays or other conditions that
would negatively affect its ability to compete with
them. The licences will be issued once Bell Canada
informs the CRTC that it is ready to commence operations
and will expire on August&nbsp;31, 2011. Bell Canada is
required to have the terrestrial BDUs operational no
later than November&nbsp;18, 2006, unless an extension of
time is approved by the CRTC. On August&nbsp;2, 2005, Bell
Canada acquired certain assets and the residential cable
business of Cable VDN operating in Montr&#233;al. Bell Canada
advised the CRTC that it
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
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<P align="left" style="font-size: 10pt"><I>p. 30</I>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">was commencing operations in the Montr&#233;al service
area under its terrestrial BDU licence and that under
this licence it was
continuing the cable operations of Cable VDN.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell ExpressVu&#146;s existing DTH distribution
undertaking licence renewal was approved by the CRTC on
March&nbsp;31, 2004 for the period from April&nbsp;1, 2004 to
August&nbsp;31, 2010.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell Globemedia&#146;s television operations have
broadcasting licences issued by the CRTC. None of these
is currently expired.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Industry Canada regulates the use of radio spectrum by
Bell Canada, Bell Mobility, Aliant Telecom, MT&#038;T
Mobility and other wireless service providers under the
<I>Radiocommunication Act</I>. Under the Act, Industry Canada
ensures that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> radio communication in Canada
is developed and is operated efficiently
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the
set up of, and any changes to, radio stations are
orderly.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Minister of Industry has the discretion to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> issue radio licences
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> set technical standards for radio equipment
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> establish licensing conditions
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> decide how radio spectrum is allocated and used.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under the <I>Radiocommunication Regulations</I>, companies that
are eligible for radio licences, such as Bell Canada,
Bell Mobility and Aliant Telecom, must meet the same
ownership requirements that apply to corporations under
the <I>Telecommunications Act</I>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The <I>Radiocommunication Act </I>contains provisions
which make it a criminal offence to manufacture, offer
for sale or sell any device used to decode an encrypted
subscription signal in connection with unauthorized
reception of satellite signals. On October&nbsp;28, 2004, the
Court of Qu&#233;bec ruled in <I>R. v. D&#146;Argy and Theriault </I>that
those provisions violate the freedom of expression
rights enshrined in the <I>Canadian Charter of Rights and Freedoms (Charter)</I>. On
March&nbsp;31, 2005, the Qu&#233;bec Superior Court overruled the
Court of Qu&#233;bec&#146;s decision and upheld the constitutional
validity of these provisions. Accordingly, it remains a
criminal offence throughout Canada to manufacture, offer
for sale or sell any device used to engage in
unauthorized reception of satellite signals. The
defendants have been granted leave to appeal the ruling
to the Qu&#233;bec Court of Appeal. Bell ExpressVu, Bell
Canada, the Canadian Association of Broadcasters, and
members of Canada&#146;s production community continue to
encourage the Government of Canada to strengthen the
<I>Radiocommunication Act </I>in order to combat the black
market in signal theft.
</DIV>

<DIV align="left">
<A name="119"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">KEY REGULATORY ISSUES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This section describes key regulatory issues which
have been addressed in past years that have influenced
our business.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Second price cap decision</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In May&nbsp;2002, the CRTC issued decisions relating to new
price cap rules that govern incumbent telephone
companies for the four-year period, starting in June
2002. These decisions:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> set a 3.5%
productivity factor on many capped services, which has
required Bell Canada to reduce its prices for these
services
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> extended price cap regulation to more services
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> reduced the prices that incumbent telephone companies can charge
competitors for services
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> set procedures for enforcing standards of service quality
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> effectively froze rates for basic residential services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The CRTC also established a deferral account, and on
March&nbsp;24, 2004, initiated a public proceeding inviting
proposals on the disposition of the amounts accumulated
in the accounts of the incumbent telephone companies
during the first two years of the price cap period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February&nbsp;16, 2006, the CRTC issued Telecom
Decision 2006-9 in which it set out guidelines for the
disposition of funds in the incumbent telephone
companies&#146; deferral accounts which were established by
the second price cap decision. It is estimated that the
accumulated balance in Bell Canada and Aliant Telecom&#146;s
deferral accounts as at May&nbsp;31, 2006 will be $480.5
million for Bell Canada and $21.8&nbsp;million for Aliant
Telecom. The future annualized recurring deferral
account obligation as at the same date is estimated to
be $81.5&nbsp;million for Bell Canada and $2.2&nbsp;million for
Aliant Telecom.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The CRTC has concluded that the incumbent telephone
companies should clear the accumulated balances in their
deferral accounts, to the greatest extent possible, as
follows:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> by expanding broadband services to
rural and remote areas that are currently unserved and
would not otherwise be served. The deferral account
would fund the uneconomic portion of the cost of this
multi-year broadband expansion program. Incumbent
telephone companies are directed to file their broadband
expansion proposals, established in consultation with
provincial government agencies responsible for broadband
initiatives, by June&nbsp;30, 2006. Detailed CRTC
requirements for filing these broadband expansion
proposals will be specified by the CRTC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> by improving the accessibility to
telecommunications services for persons with
disabilities, using a minimum of 5% of the incumbent
telephone companies&#146; deferral account balances.
Incumbent telephone companies are to consult with the
appropriate advocacy organizations for persons with
disabilities to determine the best use of these funds
and file their proposals by June&nbsp;30, 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> any balances remaining in the incumbent
telephone companies&#146; deferral accounts after these two
programs will be rebated to
these companies residential local customers in non-high
cost serving areas. The amount and timing of the rebate,
if any, cannot be determined at this time.
</DIV>








<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><I>p. 31</I>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Decision also indicates that incumbent
telephone companies&#146; future annual deferral account
obligations are to be eliminated by reducing monthly
prices for primary exchange service and optional local
services for residential customers in non-high cost
serving areas. Bell Canada, Aliant Telecom and certain
other incumbent telephone companies have been directed
to file their rate proposals by May&nbsp;15, 2006 and
implement them on June&nbsp;1, 2006. Incumbent telephone
companies also are directed to file updated deferral
account balances by May&nbsp;15, 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finally, the Decision
notes that the extension of the price cap regime to May
31, 2007, discussed in further detail below, will result
in an additional annual deferral account obligation. The
incumbent telephone companies can choose to address
these additional amounts in their May&nbsp;15, 2006 price
reduction filings.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May&nbsp;13, 2005 the CRTC issued a Public Notice
calling for comments on a proposal to extend the current
price cap regime, which is to expire on May&nbsp;31, 2006,
for another two years. Final reply comments were
submitted by incumbent telephone companies and other
interested parties to the CRTC on June&nbsp;27, 2005. On
December&nbsp;16, 2005, the CRTC issued Decision 2005-69 in
which it extended the current price cap regime without
changes for a period of one year, to May&nbsp;31, 2007. In
the decision, the CRTC also indicated that it will
initiate a proceeding to review the existing price
regulation regime following the release of the decision
in the proceeding initiated by <I>Forbearance from
regulation of local exchange services</I>, Public Notice
2005-2, which is expected to be issued in March&nbsp;2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Competitor Digital Network Service</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On February&nbsp;3, 2005, the CRTC released Telecom Decision
2005-6 concerning competitor digital network (CDN)
services. This decision set the rates, terms and
conditions that Bell Canada and the other incumbent
telephone companies must follow when providing digital
network services to their competitors. This decision
affected both Bell Canada and Aliant Telecom as
providers of CDN services in their own operating
territories and as purchasers of those services
elsewhere in Canada.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The CRTC determined that CDN services should
include not only digital network access components but
also include intra-exchange facilities, inter-exchange
facilities in certain metropolitan areas, channelization
and co-location links (expanded CDN services). However,
other than for the low speed accesses and link
components, the CRTC determined that these expanded CDN
services should not be priced as essential facilities
but will be priced to include &#147;appropriate mark-ups&#148; so
as to encourage competitors to construct their own
facilities. Furthermore, on January&nbsp;6, 2006 the CRTC released
Decision 2006-1 where it clarified that in order to
qualify for CDN service a competitor&#146;s circuit must
terminate at a point of presence located in Canada.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are two important financial aspects to note
in this decision. First, the prices for all CDN services
were applied on a going-forward basis, effective the
date of the decision, and Bell Canada will be
compensated for the resulting revenue losses from
the deferral account. Secondly, Bell Canada will also be
compensated through the deferral account for the
application of reduced rates on a retroactive basis for
the CDN access components that were tariffed at interim
rates prior to the decision. Bell Canada has filed its
estimated drawdown from the deferral account as a result
of this decision.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In a letter dated September&nbsp;1, 2005, the CRTC
postponed the due date for the filing of updated
estimates until certain outstanding issues related to
CDN services currently before the CRTC are resolved.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Retail quality of service indicators</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On March&nbsp;24, 2005, the CRTC released Telecom Decision
2005-17 which, among other things, established the rate
adjustment plan to be applied when incumbent telephone
companies do not meet mandated standards of quality of
service provided to their retail customers. As a result
of this decision, incumbent telephone companies are
subject to a penalty mechanism when they do not meet one
or more service standards for their retail services. For
Bell Canada, this maximum potential penalty amount
equates to approximately $245&nbsp;million annually, based on
2004 revenues. For the period during which this plan was
interim, July&nbsp;1, 2002 to December&nbsp;31, 2004, Bell Canada
did not have to pay any penalties. Regarding the current
penalty period of January 1 to December&nbsp;31, 2005, the
CRTC standard for several indicators was not met on an
annual average basis, as a direct result of the
Entourage strike (discussed under the heading <I>About BCE
&#150; Our employees</I>). The strike commenced on March&nbsp;28, 2005
and all employees were to have returned to work by
August&nbsp;8, 2005. Given that this situation meets the
criteria stipulated by the CRTC for force majeure type
exclusions to the penalty plan, Bell Canada has
requested that the CRTC approve the application made by
Bell Canada on December&nbsp;5, 2005 for the purpose of
excluding below-standard strike-related results.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For Aliant Telecom, the CRTC determined that it did
not meet certain service standards during the period
January&nbsp;1, 2004 to December&nbsp;31, 2004. Applying the rate
adjustment plan would result in an estimated penalty of
$3&nbsp;million. Aliant Telecom has applied to the CRTC for
an exclusion from having to pay a penalty due to its
labour disruption in 2004, as allowed for in the
decision. The CRTC has not yet ruled on this
application. Regarding the penalty period of January 1
to December&nbsp;31, 2005, the CRTC standard for two
indicators was missed on an annual
average basis, resulting in a possible penalty of
approximately $2&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Decision on incumbent affiliates</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On December&nbsp;12, 2002, the CRTC released its decision on
incumbent affiliates, which requires Bell Canada and its
carrier affiliates to receive CRTC approval on contracts
that bundle tariffed and non-tariffed products and
services. This means that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> all existing
contracts that bundle tariffed and non-tariffed products
and services must be filed with the CRTC for approval
</DIV>
<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>


</DIV>
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<P align="left" style="font-size: 10pt"><I>p. 32</I>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> all new contracts that bundle tariffed and
non-tariffed products and services must receive CRTC
approval before they are carried out
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> carrier
affiliates must meet the same approval requirements as
Bell Canada on products and services they offer in Bell
Canada&#146;s operating territory.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On September&nbsp;23, 2003, the CRTC issued a decision that
requires Bell Canada and its carrier affiliates to
include a detailed description of the bundled services
they provide to customers when they file tariffs with
the CRTC. The customer&#146;s name will be kept confidential,
but the pricing and service arrangements it has with the
Bell Canada companies will be available on the public
record.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This decision increased the regulatory burden for
Bell Canada and its carrier affiliates at both the
wholesale and retail levels. Following the dismissal of
its appeal by the Federal Court of Canada, Bell Canada
has submitted tariffs for CRTC approval for those
contracts with bundles that have not yet expired in
order to provide more detailed descriptions of the
bundled services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Application seeking consistent regulation and regulation for VoIP</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On November&nbsp;6, 2003, Bell Canada filed an application
requesting that the CRTC start a public hearing to
review how similar services offered by cable companies
and telephone companies are regulated. This would allow
consistent rules to be developed that recognize and
support the growing competition between these sectors.
Bell Canada also requested that this proceeding address
any rules that might be needed to govern VoIP services
provided by cable companies and others.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After conducting a public proceeding relating to
VoIP, on May&nbsp;12, 2005, the CRTC released Telecom
Decision 2005-28 which determined the way the CRTC will
regulate VoIP services. The CRTC determined that VoIP
services (other than peer-to-peer services, defined in
the decision as IP communications services between two
computers) provided by Bell Canada and other incumbent
telephone companies will be
regulated in the same way as traditional telephone
services. As a result of this decision, VoIP services
that use telephone numbers that conform to the North
American Numbering Plan, and that provide universal
access to and/or from the Public Switched Telephone
Network will, for incumbent telephone companies, be
treated as regulated local exchange services.
Accordingly, tariffs have to be filed by incumbent
telephone companies, but not by their competitors, when
they provide customers with local VoIP services using a
telephone number associated with that incumbent
telephone company&#146;s territory. In addition, the winback
rules will apply, which means that incumbent telephone
companies cannot attempt to directly contact a former
residential local service customer for a period of 12
months from the time the customer takes a traditional
local telephone service or VoIP service from a
competitor. Other restrictions on promotions and
bundling which apply to traditional local wireline
services also
apply to VoIP. These regulatory requirements could
reduce Bell Canada&#146;s and Aliant Telecom&#146;s flexibility to
compete with both traditional and new competitors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Also as a result of Telecom Decision 2005-28,
incumbent telephone companies as well as competitive
local exchange carriers will have to fulfill, in
relation to VoIP services, other requirements that apply
to traditional telephone services, such as local number
portability, allowing customers to use any long distance
provider of their choice, listing telephone numbers in
the directory associated with the local telephone number
chosen by the customer, offering services for the
hearing impaired, and privacy safeguards. These
regulatory requirements could increase operational costs
and reduce Bell Canada&#146;s and Aliant Telecom&#146;s
flexibility to compete with resellers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2005, Bell Canada introduced three retail VoIP
services in Qu&#233;bec and Ontario. Bell Digital Voice Lite
and Bell Digital Voice are offered to residential
customers and Business IP Voice is offered to business
customers. These services are offered pursuant to
tariffs which have received interim approval from the
CRTC. CRTC public processes relating to these filings
were held in 2005 and decisions on final approval of the
tariffs are expected in March&nbsp;2006. The CRTC has, on an
interim basis, permitted Bell Canada to file VoIP tariff
notices for the CRTC&#146;s approval on a confidential basis,
which provide for minimum and maximum rates associated
with each proposed VoIP service plan. Once the minimum
and maximum rates are approved, for all future price
changes within that range, Bell Canada can issue new
tariff pages on their effective date. No additional CRTC
approvals are required for price changes within the
ranges. The CRTC has also, on an interim basis,
permitted Bell Canada to price its Bell Digital Voice
service differently on a province-wide basis in Ontario
and Qu&#233;bec. A final decision from the CRTC regarding
these tariff notices could result in a different
outcome.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On July&nbsp;5, 2005, the Province of Saskatchewan filed
a Petition with the Governor in Council requesting that
it address the inequities of Decision 2005-28 by
directing the CRTC to ensure
that all companies offering VoIP services in
Saskatchewan are competing on a level playing field.
Bell Canada together with Aliant Telecom, Telus
Communications, T&#233;l&#233;bec and SaskTel Telecommunications
(SaskTel) have jointly filed a Petition with the
Governor in Council on July&nbsp;28, 2005 to vary the
Decision to eliminate the economic regulation of VoIP
services, removing inequities in the regulatory
framework for VoIP services applicable to the incumbent
telephone companies, including the requirement to file
and obtain approval of tariffs and the application of
the bundling rules, promotions restrictions and winback
rules.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On June&nbsp;13, 2005 Bell Canada, together with Telus
Communications and SaskTel, sought leave from the
Federal Court of Appeal to appeal the winback rules
included in Telecom Decision 2005-28 on the grounds that
such winback rules constitute a violation of Bell
Canada&#146;s,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
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<P align="right" style="font-size: 10pt"><I>p. 33</I>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">and its customers&#146;, freedom of expression, which
is a freedom protected under the <I>Charter</I>. On December&nbsp;7,
2005, Bell Canada and the other applicants applied to
the Federal Court of Appeal for permission to adjourn,
or suspend, their leave to appeal application. The
reason underlying this request to adjourn is a separate,
on-going Bell Canada and SaskTel application to the
CRTC. In their application before the CRTC, Bell Canada
and SaskTel have requested that the CRTC discontinue the
winback rules on the grounds that these rules violate
the <I>Charter </I>guarantees to freedom of expression of
incumbent local telephone companies and their customers.
In another CRTC application dated November&nbsp;23, 2005,
Bell Canada applied to the CRTC to stay the winback
rules in Bell Canada&#146;s traditional local territories.
The records of the Bell Canada and SaskTel winback
application, and Bell Canada&#146;s stay application, are
closed and decisions are pending.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Forbearance from regulation of local exchange services</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On April&nbsp;28, 2005, the CRTC issued a Public Notice on a
framework for forbearance from the regulation of
residential and business local exchange services offered
by the incumbent telephone companies. The rules
resulting from this Public Notice are intended to
clarify the conditions under which Bell Canada and the
other incumbent telephone companies will be able to seek
regulatory forbearance for local exchange services. The
CRTC will also address Aliant Telecom&#146;s April&nbsp;2004
application which requested forbearance from the
regulation of specified residential wireline local
services in 32 exchanges. The CRTC plans to issue a
decision in March&nbsp;2006. Bell Canada&#146;s and the other
incumbent telephone companies&#146; flexibility to compete
could be adversely affected in the event that the CRTC,
in its decision, establishes onerous conditions to be
satisfied in order for the incumbent telephone companies
to obtain regulatory
forbearance of residential and business local exchange
services.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Price floor safeguards for retail services</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On April&nbsp;29, 2005, the CRTC issued its decision on price
floor safeguards (minimum prices for the regulated
services of incumbent telephone companies) and other
related issues. In this decision, the CRTC rejected most
of its preliminary proposals (set out in its October&nbsp;23,
2003 Public Notice on changes to minimum prices) to
change the pricing and bundling rules that apply to the
incumbent telephone companies and modified others. The
CRTC&#146;s preliminary proposals, if implemented, would have
resulted in significantly higher price floors for
services offered to residential, small and medium
business and enterprise customers. The CRTC also denied
an application by Rogers to prohibit the incumbent
telephone companies from bundling residential tariffed
services with forborne services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Although the CRTC decision rejected most of its
preliminary proposals, it made minor changes to the
imputation tests to be satisfied by incumbent telephone
companies with respect to stand-alone services,
generally offered in bundles, and term and volume
contracts. In
some circumstances, the changes will, in the
future, result in higher price floors for new services
and bundles which could negatively limit Bell Canada&#146;s
ability to compete.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Application to Change Bundling Rules</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On September&nbsp;2, 2005, Bell Canada applied to the CRTC
for a modification of the bundling rules applicable to
customer specific arrangements (CSAs), which are
arrangements tailored to a particular customer&#146;s needs
for the purpose of customizing the offering in terms of
rate structure and levels.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At present, the CRTC requires that a CSA involving
both tariffed and non-tariffed services (Mixed CSAs) be
filed for approval with the CRTC before it can be
provided to customers. Bell Canada&#146;s proposal would
exempt a Mixed CSA from the bundling rules and
associated tariff requirements, provided that the
revenues from a CSA exceed the price of the tariffed
components of the CSA and provided that the CSA is not
part of a practice designed to circumvent tariffs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Wireless Number Portability</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Government of Canada in its 2005 Budget announced
that it intended to ask the CRTC to implement wireless
number portability. Number portability enables customers
to retain the same phone number when changing service
provider within the same local serving area. On
September&nbsp;16, 2005 the CRTC issued Telecom Public Notice
CRTC 2005-14, <I>Implementation of Wireless Number
Portability</I>, which dealt with a number of preliminary
regulatory issues that are required to enable
portability to proceed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On December&nbsp;20, 2005, the CRTC released Telecom
Decision 2005-72. Among other things the decision
directed Bell Mobility, Rogers Wireless and Telus
Mobility to implement wireless number portability in
Alberta, British Columbia, Ontario and Quebec by March
14, 2007. This accelerated time frame will be
challenging for Bell Mobility and the rest of the
wireless industry to meet. On February&nbsp;6, 2006, the CRTC
issued Telecom Public Notice 2006-3, <I>Regulatory issues related to the implementation of
wireless number portability</I>, a proceeding which will
address a wide range of issues associated with the
implementation. Comments in response to the Public
Notice are to be filed on February&nbsp;27, 2006 with reply
comments due on March&nbsp;6, 2006.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Access to Bell Canada Loops For Competitor Local Exchange Carriers&#146; Customers Served Via Remotes</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On September&nbsp;2, 2005, Rogers Telecom submitted an
application pursuant to Part&nbsp;VII of the <I>CRTC
Telecommunications Rules of Procedure </I>requesting that
the CRTC direct Bell Canada to make unbundled loops,
which are transmission paths between the users&#146; premises
and the central office that are provided separately from
other components, available to competitors in a timely
manner in certain specified areas
</DIV>
<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">where Rogers Telecom is present. On October&nbsp;3,
2005, Bell Canada provided its response to the Rogers
Telecom application. In Bell Canada&#146;s response it
explained the reasons why in some areas where
competitors are present and the competitors&#146; potential
end customer is served via a Bell Canada remote,
unbundled loops should not have to be provided unless
Bell Canada is compensated by competitors for the costs
it incurs on their behalf.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The cost to equip Bell Canada&#146;s network in order to
provide unbundled loops to competitors in locations
where a potential competitor&#146;s end customer is currently
served via a Bell Canada remote could be significant
should the CRTC grant Rogers Telecom&#146;s request. It is
anticipated that the CRTC will institute a further
process to examine this matter prior to rendering a
decision.
</DIV>
<DIV align="left">
<A name="120"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">CONSULTATIONS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">From time
to time, Industry Canada initiates
proceedings that allow members of the telecommunications
industry to comment on technical and policy issues. This
ensures that Industry Canada takes into consideration
the opinions of the industry when it is making decisions
that affect the industry.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Foreign ownership review</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Industry Canada asked the House Standing Committee on
Industry, Science and Technology to conduct a review to
determine whether the current Canadian ownership
requirements included in the <I>Telecommunications Act </I>and
associated regulations should be changed. The committee
released its report in April&nbsp;2003.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On September&nbsp;25, 2003, the Minister of Industry
responded to the report promising to:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> table
an amendment as early as possible to the Act requiring
it to be reviewed every five years because of the rapid,
unprecedented technological changes in the industry
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> launch an analysis of the conflicting
recommendations on foreign investment restrictions made
by the committee and the Standing Committee on Canadian
Heritage in its June&nbsp;11, 2003 report, <I>Our cultural
sovereignty</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> continue working with members of Parliament
to review the governance structure for the
telecommunications and broadcasting sectors, to ensure
that they are effective in meeting the needs of
Canadians and industry stakeholders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Licences and changes to wireless regulation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Companies must have a spectrum licence to operate
cellular, PCS and other radio-telecommunications systems
in Canada. The Minister of Industry awards spectrum
licences, through a variety of methods, at his or her
discretion under the <I>Radiocommunication Act</I>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of an Industry Canada decision,
the cellular and PCS licences under which Bell Mobility,
Aliant Telecom and MT&#038;T Mobility provide service, which
would have expired on March&nbsp;31, 2006, will now expire in
2011. The PCS licences that were awarded in the 2001 PCS
auction will expire on November&nbsp;29, 2011. As a result,
these Bell Canada companies&#146; cellular and PCS licences
are now classified as &#147;spectrum licences&#148;, that is
licences issued on a geographic basis rather than on a
radio site-by-radio site basis, with a standard 10-year
licence term.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In October&nbsp;2001, the Minister of Industry announced
plans for a national review of Industry Canada&#146;s
procedures for approving and placing wireless towers and
radio towers in Canada, including a review of the role
of municipal authorities in the approval process. The
final report from the National Antenna Tower Policy
Review Committee was filed with Industry Canada in
September&nbsp;2004. Industry Canada released its report in
February&nbsp;2005. Among other things, the report recommends
that the authority to regulate the siting of antennae
and supporting structures remain exclusively with the
Government of Canada. In August&nbsp;2005, Industry Canada
convened a meeting of wireless carriers and broadcasters
and presented a revised draft policy for comment. The
wireless and broadcasting industries both have a number
of concerns with the draft policy and are now working
with Industry Canada to attempt to resolve these
concerns. Government &#150; industry consultative working
group meetings, examining specific details of the draft
policy, were convened in
December&nbsp;2005 and January&nbsp;2006. It is not possible
to predict at this time if or when the final policy will
be issued. If the final policy requires more municipal
or public consultation in the approval process, there is
a risk that it could significantly slow the expansion of
wireless networks in Canada.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Lawful access consultation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In August&nbsp;2002, the federal government started a
consultation to consider the access law enforcement
agencies have to information and communications,
including wireless communications. The Government&#146;s
proposals, which were not precisely defined in the
consultation, could require telecommunications service
providers, including wireline and wireless carriers and
ISPs, to invest significant capital and incur
significant ongoing expenses to comply with the proposed
requirements.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the fall of 2003, the Government provided more
detail about its proposals. This included proposing
exemptions for small ISPs and clarifying that service
providers would not have to pay to upgrade the equipment
that they have in service.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Government also held meetings with law
enforcement agencies and service providers to discuss
recovering the costs of intercepting telecommunications,
and providing transmission logs and related data to law
enforcement and national security agencies. These
agencies are proposing that service providers absorb all
of these costs.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
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<P align="right" style="font-size: 10pt"><I>p. 35</I>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On November&nbsp;15, 2005, legislation outlining
capability requirements and rules for recovering costs
was introduced. The legislation died on the Order Paper
when the Government fell on November&nbsp;28, 2005.
</DIV>
<DIV align="left">
<A name="121"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>LEGAL PROCEEDINGS WE ARE INVOLVED IN</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We become involved in various claims and
litigation as a part of our business. This section
describes important legal proceedings that you should be
aware of. While we cannot predict the final outcome of
the claims and litigation described below or of any
other pending claims and litigation at March&nbsp;1, 2006,
based on the information currently available, management
believes that the resolution of these claims and
litigation will not have a material and negative effect
on our consolidated financial position or results of
operation. Based on the information currently available,
we believe that we have strong defenses and we intend to
vigorously defend our position.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">LAWSUITS RELATED TO BELL CANADA
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Purported Class&nbsp;Action Concerning Wireless Access Charges</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On August&nbsp;9, 2004, a statement of claim was filed under
the
<I>Class&nbsp;Actions Act </I>(Saskatchewan) in the Court of Queen&#146;s
Bench, Judicial Centre of Regina, Saskatchewan against
wireless communications services providers, including
Bell Mobility and Aliant Telecom, by certain alleged
customers or former customers of communications service
providers. The lawsuit has not been certified as a class
action and it is too early to determine whether it will
qualify for certification.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The statement of claim alleges breach of contract
and duty to inform, breach of warranties and covenants,
deceit, misrepresentation, negligence, wrongful acts and
omissions, collusion, and breach of statutory duty or
obligation under the <I>Competition Act </I>(Canada), in
connection with certain &#147;system access fees&#148; and &#147;system
licensing charges&#148; invoiced by wireless communications
service providers to their customers. The plaintiffs
seek unspecified damages and punitive damages. The
Saskatchewan action seeks certification of a national
class encompassing all customers of wireless
communications service providers wherever resident in
Canada.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plaintiff&#146;s counsel has commenced similar actions
in all of the other provinces (except Prince Edward
Island). These actions are not being pursued by the
plaintiffs, at this time, pending a decision on
certification in Saskatchewan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Purported
Class&nbsp;Action Concerning Bell Mobility</B></DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On October&nbsp;28, 2004, a motion seeking certification to
proceed as a class action against Bell Mobility was
filed with the Qu&#233;bec Superior Court. The lawsuit has
not been certified to proceed as a class action and it
is too early to determine whether it will qualify for
certification.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The lawsuit was filed on behalf of all
physical persons residing in the Province of Qu&#233;bec, who
entered into a contract with Bell Mobility for the
provision of wireless telephone services, and alleges
that such persons have unjustly incurred expenses as a
result of billing errors made by Bell Mobility or as a
result of Bell Mobility wrongfully disconnecting service
to such customers. In addition, to the reimbursement of
such expenses, the class action would, if certified,
also seek payment of damages by Bell Mobility in the
amount of $100 per class member for inconvenience as
well as punitive damages in the amount of $200 per class
member.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Purported
Class&nbsp;Action Concerning Bell Express Vu</B></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Late Payment Charges</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On September&nbsp;29, 2005, a statement of claim was filed
under the <I>Class&nbsp;Proceedings Act, 1992 </I>(Ontario) in the
Ontario Superior Court of Justice against Bell ExpressVu
by certain alleged customers of Bell ExpressVu. The
lawsuit has not been certified as a class action and it
is too early to determine whether it will qualify for
certification.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The statement of claim alleges that the interest
and late
payment fees charged by Bell ExpressVu to customers
whose accounts are in arrears are in excess of the
effective annual rate of interest permitted by certain
provisions of the <I>Criminal Code </I>(Canada). The plaintiffs
seek an order requiring Bell ExpressVu to repay all
interest and late payment fees paid to Bell ExpressVu by
the purported class of plaintiffs. In addition to the
reimbursement of such amounts, the class action would,
if certified, also seek payment of punitive damages by
Bell ExpressVu in the amount of $10&nbsp;million.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On August&nbsp;31, 2005, a statement of claim was filed in
Qu&#233;bec Superior Court against Bell ExpressVu by
Vid&#233;otron lt&#233;e., Vid&#233;otron (R&#233;gional) lt&#233;e and CF Cable
TV Inc. (a subsidiary of Vid&#233;otron lt&#233;e). In the
statement of claim, the plaintiffs have alleged that
Bell ExpressVu has failed to adequately protect its
system against signal piracy, thereby depriving the
plaintiffs of subscribers who, but for their alleged
ability to pirate Bell ExpressVu&#146;s signal, would be
subscribing to plaintiffs&#146; services. On November&nbsp;4,
2005, the plaintiffs amended their statement of claim to
increase the amount of damages claimed from $1&nbsp;million
to approximately $49.5&nbsp;million for profits allegedly
lost over the last three years, $314.7&nbsp;million for
alleged future losses and $10&nbsp;million in punitive
damages.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
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<P align="left" style="font-size: 10pt"><I>p. 36</I>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Purported Class&nbsp;Action Concerning Bell
Distribution Inc. (BDI)&nbsp;decision not to proceed with a
Wireless Income Fund transaction and changes to Dealer
Agreements and/or the Remuneration Program</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Bell Canada received a letter of demand dated January
30, 2006 from the Independent Communication Dealer
Association of Canada and its Bell independent dealers
(Demand Letter). The Demand Letter is in response to
BDI&#146;s letter of January&nbsp;18th, 2006 to 6223141 Canada
Inc. (Purchaser) advising of its decision not to proceed
with a transaction to include its corporate store retail
operations in an income trust, not to consent to the
sale of the assets of the independent dealer retail
stores to the Purchaser and not to consent to the
assignment of the dealer agreements to the Purchaser.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Demand Letter alleges that BDI&#146;s refusal to
consent to the sales and the assignments is
unreasonable. The letter demands that the consents be
given and threatens recourse by way of injunction and/or
damages for loss of opportunity caused to each Dealer,
which are estimated to exceed $135,000,000. The Demand
Letter also threatens a claim for damages from BDI in
relation to changes it effected since January&nbsp;2005 which
were allegedly contrary to the dealer agreements and/or
the remuneration program and which were allegedly
effected to reduce the value of the dealer independent
stores. The Bell dealers estimate these damages to be in
excess of $50,000,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Wage Practices investigation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Complaints filed in 1994 with the Canadian Human Rights
Commission by the CTEA and CEP on behalf of unionized
employees of Bell Canada alleging wage discrimination in
negotiated wages were referred in 1996 to the Canadian
Human Rights Tribunal for inquiry. Bell Canada
challenged the institutional independence of the
Canadian Human Rights Tribunal by judicial review
proceedings in The Federal Court of Canada.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On November&nbsp;2, 2000, the Federal Court of Canada
allowed Bell Canada&#146;s application for judicial review.
The court found that the tribunal lacked institutional
independence and prohibited further proceedings in the
matter. Hearings before the tribunal into the merits of
the case were suspended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Canadian Human Rights Commission appealed this
decision, which was overturned by the Federal Court of
Appeal. On May&nbsp;24, 2001, Bell Canada filed for leave to
appeal the Federal Court of Appeal decision to the
Supreme Court of Canada. Hearings before the tribunal
resumed in September&nbsp;2001.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In September&nbsp;2002, Bell Canada announced a
settlement with the CTEA, the union representing the
majority of employees involved in the dispute. The
proceedings relating to employees represented by the CEP
are continuing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Supreme Court of Canada heard Bell Canada&#146;s
appeal of the Federal Court of Appeal decision in
January&nbsp;2003 and dismissed it in June&nbsp;2003. The decision
did not address the merits of the case.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The tribunal has resumed hearings and they
are ongoing. The parties entered into mediation in June
2005 which is continuing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">LAWSUITS RELATED TO TELEGLOBE
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Teleglobe lending syndicate lawsuit</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On July&nbsp;12, 2002, a statement of claim was issued
against BCE Inc. in the Ontario Superior Court of
Justice by ABN AMRO Bank N.V., Bank of Montreal, Bank of
Tokyo-Mitsubishi (Canada), Bayerische Landesbank
Girozentrale, BNP Paribas (Canada), La Caisse Centrale
Desjardins du Qu&#233;bec, CIBC, CIBC, N.Y. Agency, Citibank,
N.A., Credit Suisse First Boston Canada, Credit Suisse
First Boston, Export Development Canada, HSBC Bank
Canada, JPMorgan Chase Bank, Laurentian Bank of Canada,
Merrill Lynch Capital (Canada) Inc., Merrill Lynch
Capital Corporation, National Bank of Canada, Royal Bank
of Canada, Soci&#233;t&#233; G&#233;n&#233;rale, The Bank of Nova Scotia,
and The Toronto-Dominion Bank.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The plaintiffs sought damages of US$1.19&nbsp;billion,
plus interest and costs, from BCE Inc. They alleged that
these
damages are equal to the amount they advanced as
members of the Teleglobe and Teleglobe Holdings (U.S.)
Corporation (together referred to in this section as
Teleglobe) lending syndicate. The plaintiffs represented
approximately 95.2% of the US$1.25&nbsp;billion that the
members of that lending syndicate advanced.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The plaintiffs&#146; claim is based on several
allegations, including that:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the actions and
representations of BCE Inc. and its management, in
effect, amounted to a legal commitment that BCE Inc.
would repay the advances
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the court should
disregard Teleglobe as a corporate entity and hold BCE
Inc. responsible to repay the advances as Teleglobe&#146;s
alter ego.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On September&nbsp;16, 2003, BCE Inc. filed its statement of
defence relating to this action.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On November&nbsp;2, 2004, two of the plaintiffs,
Canadian Imperial Bank of Commerce and Canadian Imperial
Bank of Commerce, N.Y. Agency, which had advanced
approximately US$104&nbsp;million to Teleglobe, filed a
notice of discontinuance with the Court and are
therefore no longer plaintiffs in this action.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May&nbsp;3, 2005, following the launch of the BNP
Paribas (Canada) lawsuit described below, BNP Paribas
(Canada), which had advanced approximately US$50&nbsp;million
to Teleglobe, filed a notice of discontinuance with the
Court and is therefore no longer a plaintiff in this
action.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Following these discontinuances, the damages sought
by the remaining plaintiffs will amount to approximately
US$1.04&nbsp;billion, plus interest and costs, representing
approximately 83% of the US$1.25&nbsp;billion that the
members of the lending syndicate advanced to Teleglobe.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
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<P align="right" style="font-size: 10pt"><I>p. 37</I>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>BNP Paribas (Canada) lawsuit</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On December&nbsp;23, 2004, BNP Paribas (Canada), one of the
plaintiffs in the Teleglobe lending syndicate lawsuit
action against BCE Inc., filed a statement of claim with
the Ontario Superior Court of Justice. The action is
against BCE Inc. and five former directors of Teleglobe
Inc. The statement of claim was served on the
defendants, subject to their right of challenging
jurisdiction, on April&nbsp;20, 2005. The statement of claim
alleges oppression against the former directors and
breach of contract against BCE Inc. BNP Paribas (Canada)
seeks US$50&nbsp;million in damages. Teleglobe Inc. was at
the relevant time a subsidiary of BCE Inc. Pursuant to
standard policies and subject to applicable law, the
five former directors of Teleglobe Inc. are entitled to
seek indemnification from BCE Inc. in connection with
this lawsuit.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On September&nbsp;15, 2005, the defendants filed a
motion
challenging the Court&#146;s jurisdiction on the basis
that Qu&#233;bec is the only convenient forum for
adjudication of the plaintiff&#146;s claims.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Teleglobe Unsecured Creditors Lawsuit</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A lawsuit was filed in the United States Bankruptcy
Court for the District of Delaware against BCE Inc. and
ten directors and officers of Teleglobe Inc. and certain
of its subsidiaries on May&nbsp;26, 2004. The plaintiffs are
comprised of Teleglobe Communications Corporation,
certain of its affiliated debtors and debtors in
possession, and the Official Committee of Unsecured
Creditors of these debtors. The lawsuit alleges breach
of an alleged funding commitment of BCE Inc. towards the
debtors, misrepresentation by BCE Inc., and breach and
aiding and abetting breaches of fiduciary duty by the
defendants.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By order dated September&nbsp;8, 2004, the automatic
reference of this action to the Bankruptcy Court was
withdrawn and the action is now pending in the District
Court for the District of Delaware. On September&nbsp;15,
2004, BCE Inc. and the other defendants filed a motion
to dismiss the action for various reasons, including
lack of standing. On March&nbsp;23, 2005, the District Court
for the District of Delaware denied the defendants&#146;
motion to dismiss because the Court believes the case
requires a fact-intensive analysis. The trial is
currently scheduled to commence on June&nbsp;19, 2006.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On December&nbsp;2, 2002, VarTec Telecom, Inc. and VarTec
Holding Company (together referred to in this section as
VarTec) filed a lawsuit against BCE Inc., BCE Ventures
Inc. and the President of BCE Ventures Inc. in the
United States District Court for the Northern District
of Texas (Dallas division).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The claim alleges fraud and violation of the
anti-fraud provisions of the United States <I>Securities
Exchange Act </I>of 1934 relating to VarTec&#146;s purchase of
Excelcom, Inc., Excel Telecommunications (Canada) Inc.
and Telco Communications Group, Inc. from Teleglobe Inc.
and its subsidiaries (together referred to in this
section as Teleglobe).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Among other things, the complaint alleges
that the defendants misrepresented Teleglobe&#146;s financial
status and its ability to assume certain liabilities
related to the transaction. The complaint claims that
Teleglobe&#146;s liabilities to VarTec from the transaction
could be more than US$250&nbsp;million. It also seeks
punitive damages, but does not state an amount.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In February&nbsp;2003, VarTec amended its December&nbsp;2,
2002 complaint by removing a series of causes of action
previously included in the complaint, including breach
of contract, and that the court should disregard
Teleglobe as a corporate entity and hold BCE Inc.
responsible for its liabilities as Teleglobe&#146;s alter
ego.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On March&nbsp;2, 2003, BCE Inc., BCE Ventures Inc. and
the President of BCE Ventures Inc. filed a motion:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
to dismiss the action because of improper venue
and for failure to state a claim for which relief may be
granted and/or failure to plead fraud claims with
sufficient particularity
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> to strike VarTec&#146;s
jury demand.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the hearing held on September&nbsp;26, 2003, the United
States District Court for the Northern District of Texas
indicated that if VarTec did not ask to transfer the
action to the District of Columbia, it would enter an
order dismissing the action for improper venue. On
September&nbsp;29, 2003, VarTec filed a motion to transfer
the action to the United States District Court for the
District of Columbia. This motion was granted on October
9, 2003. As a result, the United States District Court
for the District of Columbia will decide the motion to
dismiss the action and to strike Vartec&#146;s jury demand.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Kroll Restructuring lawsuit</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On February&nbsp;26, 2003, BCE Inc. was informed that Kroll
Restructuring Ltd., in its capacity as interim receiver
of Teleglobe Inc., had filed a notice of action in the
Ontario Superior Court of Justice against five former
directors of Teleglobe Inc. This lawsuit relates to
Teleglobe Inc.&#146;s redemption of its third series
preferred shares in April&nbsp;2001 and the retraction of its
fifth series preferred shares in March&nbsp;2001.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The statement of claim was filed on March&nbsp;26, 2003
and was served to each of the directors in August and
September&nbsp;2003. On April&nbsp;16, 2004, the defendants filed
their statement of defense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The plaintiff is seeking a declaration that the
redemption and retraction were prohibited under the
<I>Canada Business Corporations Act </I>and that the five
former directors should be held jointly and severally
liable to restore to Teleglobe Inc. all amounts paid or
distributed on these transactions. These amounts total
approximately $661&nbsp;million, plus interest.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While BCE Inc. is not a defendant in this lawsuit,
Teleglobe Inc. was a subsidiary of BCE Inc. when the
redemption and retraction took place. Under standard
policies and subject to applicable law, the five former
Teleglobe Inc. directors are entitled to seek
indemnification from BCE Inc. in connection with this
lawsuit.
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt"><I>p. 38</I>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Teleglobe Plan Administrator Lawsuit</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On November&nbsp;16, 2005, Kathy Morgan, in her capacity as
Plan Administrator for Teleglobe Inc., filed a lawsuit
in the Ontario Superior Court of Justice against BCE
Inc. and seven former directors of Teleglobe Inc.. The
plaintiff is seeking a declaration
that Teleglobe Inc. and its creditors have been
oppressed by the former directors of Teleglobe Inc. and
by BCE Inc. within the meaning of the <I>Canada Business
Corporations Act</I>. The plaintiff is also seeking a
declaration that the former directors of Teleglobe Inc.
breached their fiduciary duty to Teleglobe Inc. and
failed to act in accordance with the standard of care
prescribed under the <I>Canada Business Corporations Act</I>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The plaintiff is seeking compensation for
oppression in the amount of $3&nbsp;billion and damages for
breach of fiduciary duty in the amount of $3&nbsp;billion, in
each case plus interest and costs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Bell Globemedia lawsuit</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On February&nbsp;5, 2001, Bell Globemedia Publishing Inc., a
subsidiary of Bell Globemedia, was added as a defendant
to a class action lawsuit relating to copyright
infringement. The claim is that The Globe and Mail
newspaper and magazines do not have the right to archive
and publish certain freelanced and employee material
from the newspaper or magazines in any format other than
print.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The claim includes damages of $100&nbsp;million and
injunctive relief. In 2001, the Ontario Superior Court
of Justice rejected the plaintiff&#146;s motion for partial
summary judgment (including the rejection of a requested
injunction at that stage) on certain proposed common
issues. The court declared that The Globe and Mail was
legally entitled to publish the newspaper on microfilm,
microfiche and in the Internet edition. It reserved for
trial the question of whether The Globe and Mail had,
over the years, acquired implied rights from freelancers
to archive and make available their written contents of
the newspaper on electronic databases and CD-ROMs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The plaintiff appealed this decision, and the
defendants cross-appealed on some issues. The Ontario
Court of Appeal provided its majority decision on
October&nbsp;6, 2004, and affirmed the initial refusal of
summary judgment by the original motions judge. The
dissent was not on the issue of whether summary judgment
in favour of the plaintiff should be refused (all 3
judges were in agreement on that), but rather the
dissenting judge felt that the action by the plaintiff
should be dismissed at this point.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of the plaintiff and the defendants&#146; have
filed an application with the Supreme Court of Canada,
seeking leave to appeal to that court from the ruling of
the Ontario Court of Appeal. The Supreme Court of Canada
granted both the plaintiff&#146;s and defendants&#146; leave to
appeal applications, and the appeal was heard on
December&nbsp;6, 2005, with judgment being reserved. Both the
Canadian Newspaper Association and the Canadian
Community Newspaper Association had previously been
given leave to intervene on the defendants&#146; behalf, and
did so, as the only intervenors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the plaintiff has commenced a
subsequent class action that includes a claim for $750
million in damages plus costs and interest. Although
neither Bell Globemedia nor Bell
Globemedia Publishing Inc. have been named as
defendants in the second action, the plaintiff has
indicated an intention to attempt to certify both a
plaintiff class and a defendant class, which defendant
class, if ultimately certified, may include certain
divisions of Bell Globemedia or Bell Globemedia
Publishing Inc. However, no classes have yet been
certified in this second action.
</DIV>
<DIV align="left">
<A name="122"></A>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>ASSUMPTIONS MADE IN THE PREPARATION OF FORWARD-LOOKING STATEMENTS AND RISKS THAT COULD AFFECT OUR BUSINESS AND RESULTS</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This section describes assumptions made by BCE in
preparing forward-looking statements and general risks
that could affect all BCE group companies and specific
risks that could affect BCE Inc. and certain other BCE
group companies.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A risk is the possibility that an event might
happen in the future that could have a negative effect
on the financial condition, results of operations or
business of one or more BCE group companies. Part of
managing our business is to understand what these
potential risks could be and to minimize them where we
can.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because no one can accurately predict whether an
event that is only possible will actually happen or what
its consequences may be, the actual effect of any event
on our business and results could be materially
different from what we currently anticipate. In
addition, this description of risks does not include all
possible risks, and there may be other risks that we are
currently not aware of.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ASSUMPTIONS MADE IN THE PREPARATION OF
FORWARD-LOOKING STATEMENTS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Forward-looking statements for 2006 made in this
AIF are based on a number of assumptions that we
believed were reasonable on the day we made the
forward-looking statements. This section outlines
assumptions that we made in addition to those set out in
other sections of this AIF. If our assumptions turn out
to be inaccurate, our actual results could be materially
different from what we expect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Assumptions about the Canadian economy</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Canadian GDP growth of approximately 3% in
2006, which is consistent with estimates by the
Conference Board of Canada
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the business
prime rate in Canada to increase slightly from its 2005
year-end level
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the Consumer Price Index
(estimated by Statistics Canada) to increase slightly
from its 2005&nbsp;year-end level.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
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<P align="right" style="font-size: 10pt"><I>p. 39</I>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Market assumptions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> growth in the overall Canadian
telecommunications market slightly higher than GDP in
2006
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> continued decrease in the residential
voice telecommunications market in 2006 because more
consumers are expected to use wireless, e-mail and
instant messaging instead
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> increase in the
wireline competition in both the business and
residential telecommunications markets in 2006, mainly
from cable companies
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> growth in revenues for
the Canadian wireless industry in 2006 similar to the
rate of growth in 2005
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> growth in revenues
for the Canadian video market in 2006 slightly lower
than the rate of growth in 2005
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> growth in
revenues for the Canadian Internet market in 2006 also
slightly lower than the rate of growth in 2005.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Operational and financial assumptions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Subscribers and services</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> growth in the number of our wireless, video
and high-speed Internet subscribers as well as higher
average revenue per user for these services are targeted
in 2006
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> continued decrease in our network
access services is expected in 2006, with significantly
higher declines in our Residential segment.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> significant cost savings are targeted in
2006 as a result of our Galileo program, including from
internal process redesign and supply transformation
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> restructuring costs are expected to result
in 2006 mainly from reductions in our workforce </DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
amortization expense is expected to increase in
2006 as a result of an increase in our capital base,
reflecting mainly the capitalization of STB and
installation costs associated with the new rental
program in our video business unit, the completion in
2005 of the Alberta SuperNet and Telesat&#146;s new Anik F1R
and Anik F3 satellites
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> total net benefit
plans cost is expected to increase in 2006 mainly as a
result of a further reduction in the discount rate from
6.2% in 2005 to 5.2% in 2006
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Bell Canada&#146;s capital intensity is targeted
to decrease in 2006 mainly as a result of anticipated
lower spending for maintenance of our wire-line and DSL
networks which is expected to be partly offset by
increased investment in our key strategic priorities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Assumptions about Transactions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> BCE Inc. plans to repurchase 5% of its
common shares under its previously announced normal
course issuer bid
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> we expect to complete the
disposition of our remaining interest in CGI
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> we expect to reduce our equity interest in
Bell Globemedia from 68.5% to 20% as announced on
December&nbsp;2, 2005. The expected closing of the Bell
Globemedia transaction is subject to a number of
approvals and closing conditions, including approval by
the CRTC and the Competition Bureau, and other
closing conditions that are customary in this type of
transaction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> we expect to complete the creation of a
regional telecommunications service provider in the form
of an income trust.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">RISKS THAT COULD AFFECT ALL BCE GROUP COMPANIES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Bell Canada is our most important subsidiary,
which means our financial performance depends in large
part on how well Bell Canada performs financially. The
risks that could affect Bell Canada and its subsidiaries
are more likely to have a significant impact on our
financial condition, results of operations and business
than the risks that could affect other BCE group
companies.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Strategies and plans</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We plan to achieve our business objectives through
various strategies and plans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2006, we plan to continue to implement our
strategy to deliver unrivalled integrated communication
services to customers across Canada in the most
efficient and cost-effective manner. This strategy is
founded on the three key pillars referred to earlier in
this AIF under <I>Our strategic priorities </I>and is supported
by our four operating priorities for 2006 concerning
service, customer retention, growth services and costs,
also referred to under <I>Our strategic priorities</I>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our strategic direction requires us to transform
our cost structure and the way in which we serve
customers. This means we will need to:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> be
responsive in adapting to these changes and make any
necessary shifts in employee skills. If our management,
processes or employees are not able to adapt to these
changes, our business and financial results could be
materially and negatively affected
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> invest
capital to implement our strategies and operating
priorities. The actual amount of capital required and
the returns from these investments could, however,
differ materially from our current expectations. In
addition, we may not have access to capital on
attractive terms when we need it.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Not achieving our business objectives could have a
material and negative impact on our financial
performance and growth prospects.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Economic and market conditions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our business is affected by general economic conditions,
consumer confidence and spending, and the demand for,
and prices of, our products and services. When there is
a decline in economic growth and in retail and
commercial activity, there tends to be a lower demand
for
</DIV>
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</DIV>
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<P align="left" style="font-size: 10pt"><I>p. 40</I>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">our products and services. During these periods,
customers may delay buying our products and services, or
reduce purchases or discontinue using them.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weak economic conditions could lower our
profitability and reduce cash flows from operations.
They could also negatively affect the financial
condition and creditworthiness of our customers, which
could increase uncertainty about our ability to collect
receivables and potentially increase our bad debt
expenses.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We face intense competition from traditional
competitors, as well as from new players entering our
markets. We compete with telecommunications, media,
television and satellite service providers. We also
compete with other businesses and industries including
cable, software and Internet companies, a variety of
companies that offer network services, such as providers
of business information systems, systems integrators and
other companies that deal with, or have access to,
customers through various communications networks.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Competition affects our pricing strategies and
could reduce our revenues and lower our profitability.
It could also affect our ability to retain existing
customers and attract new ones. We are under constant
pressure to keep our prices and service offerings
competitive. We need to be able to anticipate and
respond quickly to the constant changes in our
businesses and markets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We already have several domestic and foreign
competitors, but the number of well resourced foreign
competitors with a presence in Canada could increase in
the future. In recent years, the Government of Canada
has reviewed the foreign ownership restrictions that
apply to telecommunications carriers and to BDUs.
Removing or easing the limits on foreign ownership could
result in foreign companies entering the Canadian
market by making acquisitions or investments. This could
result in greater access to capital for our competitors
or the arrival of new competitors with global scale,
which would increase competitive pressure. We cannot
predict what action, if any, the federal government will
take as a result of these reviews. We also cannot assess
how any change in foreign ownership restrictions may
affect us because the government continues to consider
its position on these matters.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Wireline and long distance</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We experience significant competition in the provision
of long distance service from dial-around providers,
prepaid card providers, VoIP service providers and
others, and from traditional competitors such as
interexchange carriers and resellers. We also face
increasing cross-platform competition as customers
replace traditional services with new technologies. For
example, our wireline business competes with VoIP,
wireless and Internet services, including chat services,
instant messaging
and email.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are also facing increasing competitive pressure
from cable companies as a result of their now offering
voice services over their networks. Since cable
companies only recently started offering voice services,
it
is difficult to predict the extent and timing of
any resulting loss in market share that we might suffer.
It is also difficult to predict to what degree customers
who stop using our voice services will also stop using
our other services such as video and Internet access.
Additional competitive pressure is also emerging from
other competitors such as electrical utilities. These
alternative technologies, products and services are now
making significant inroads in our legacy services, which
typically represent our higher margin business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Technology substitution, and VoIP in particular,
have reduced barriers to entry in the industry. This has
allowed competitors with far lower investments in
financial, marketing, personnel and technological
resources to rapidly launch new products and services
and gain market share. We expect this trend to
accelerate in the future, which could materially and
negatively affect our financial performance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Competition for contracts to supply long distance
services to large business customers is very intense.
Customers may choose to switch to competitors that offer
lower prices to gain market share and are less concerned
about the quality of service or impact on their margins.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These competitive factors suggest that our legacy
wireline accesses and long distance volumes will
continue to decline in the future. Continued decline
will lead to reduced economies of scale in those
businesses and, in turn, lower margins. Our strategy is
to mitigate these declines by building the business for
newer growth services. The margins on newer services,
however, will likely be less than the margins on legacy
services. If the legacy services decline faster than the
rate of growth of our newer services, our financial
performance could be negatively and materially affected.
In addition, if a large portion of the customers who
stop using our voice services also cease using our other
services, our financial performance could be negatively
and materially affected.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We compete with cable companies and ISPs to provide
broadband and Internet access and related services. In
particular, cable companies have focused on increased
bandwidth and discounted pricing on bundles to compete
against us.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regional electrical utilities may continue to
develop and market services that compete directly with
Bell Canada&#146;s Internet access and broadband services.
Developments in wireless broadband services may also
lead to increased competition in certain geographic
areas. This could materially
and negatively affect the financial performance of
our Internet access services business.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Canadian wireless telecommunications industry is
also highly competitive. We compete directly with other
wireless service providers that aggressively introduce,
price and market their products and services. We also
compete with wireline service providers. We expect
competition to intensify as new technologies, products
and services are developed.
</DIV>






<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
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</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Video</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Bell ExpressVu and Bell Canada compete directly with
another DTH satellite television provider and with cable
companies across Canada. These cable companies have
upgraded their networks, operational systems and
services, which could improve their competitiveness.
This could materially and negatively affect the
financial performance of Bell ExpressVu and Bell Canada.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Transforming our cost structure and
containing capital intensity</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our strategies and operating priorities require us to
transform our cost structure. Accordingly, we are
intensifying the implementation of several productivity
improvements and initiatives to reduce costs while
containing our capital expenditures. Our objectives for
cost reduction under our new cost structure are
aggressive compared to what we achieved in the past, and
there is no assurance that these initiatives will be
successful in reducing costs. There will be a material
and negative effect on our profitability if we do not
successfully implement these cost reduction initiatives
and productivity improvements and manage capital
expenditures while maintaining the quality of our
service.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each year between 2002 and 2005, Bell Canada
companies had to reduce the price of certain services
that are subject to regulatory price caps and may be
required to do so again in the future. They have also
reduced their prices for some business data services
that are not regulated in order to remain competitive,
and may have to continue doing so in the future. Their
profits will decline if they cannot reduce their
expenses at the same rate. There would be a material and
negative effect on our profitability if market factors,
such as increasing competition or regulatory actions,
result in lower revenues and we cannot reduce our
expenses at the same rate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Many productivity improvements and cost reduction
initiatives require capital expenditures to implement
systems that automate or enhance our operations. There
is no assurance that these investments will be effective
in delivering the planned
productivity improvements and cost reductions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Improved customer service is critical to increasing
customer retention and average revenue per user. It may,
however, be difficult to improve customer service while
significantly reducing costs. If we are unable to
achieve either of these objectives, it could have a
material and negative effect on our results of
operations.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Anticipating technological change and investing in
new technologies, products and services</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We operate in markets that are affected by constant
technological change, evolving industry standards,
changing client needs, frequent introductions of new
products and services, and short product life cycles.
The investment in new technologies, products and
services
and the ability to launch, on a timely basis, such
technologies, products and services are critical to
increasing the number of our subscribers and achieving
our targeted financial performance.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our success will depend in large part on how well
we can anticipate and respond to changes in industry
standards and client needs, and how quickly and
efficiently we can introduce new products, services and
technologies, and upgrade existing ones.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may face additional financial risks as we
develop new products, services and technologies, and
update our networks to stay competitive. Newer
technologies, for example, may quickly become obsolete
or may need more capital than expected. Development
could be delayed for reasons beyond our control.
Substantial investments usually need to be made before
new technologies prove to be commercially viable. There
is also a significant risk that current regulation could
be expanded to apply to newer technologies. A regulatory
change could delay our launch of new services and
restrict our ability to market these services if, for
example, new pricing rules or marketing or bundling
restrictions are introduced, or existing ones are
extended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bell Canada companies are in the process of
moving traffic on their core circuit-based
infrastructure to IP technology.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As part of this move, the Bell Canada companies are
in the process of discontinuing certain services that
are based on circuit-based infrastructure. This is a
necessary component of improving capital and operating
efficiencies. In some cases, this could be delayed or
prevented by customers or regulatory actions. If the
Bell Canada companies cannot discontinue these services
as planned, they will not be able to achieve the
efficiencies as expected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There is no assurance that we will be successful in
developing, implementing and marketing new technologies,
products, services or enhancements in a reasonable time,
or that they will
have a market. There is also no assurance that
efficiencies will increase as expected. New products or
services that use new or evolving technologies could
make our existing ones unmarketable or cause prices to
fall.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our ability to meet our financial obligations and
provide for planned growth depends on our sources of
liquidity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our cash requirements may be affected by the risks
associated with our contingencies, off-balance sheet
arrangements, derivative instruments and assumptions
built into our business plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In general, we finance our capital needs in four ways:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> from cash generated by our operations or investments
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> by borrowing from commercial banks
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> through debt and equity offerings in the capital markets
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> by selling or otherwise disposing of assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Financing through equity offerings would dilute the
holdings of existing equity investors. An increased
level of debt financing could lower our credit ratings,
increase our borrowing costs and give us less
flexibility to take advantage of business opportunities.
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our ability to raise financing depends on our
ability to access the capital markets and the syndicated
commercial loan market. The cost of funding depends
largely on market conditions, and the outlook for our
business and credit ratings at the time capital is
raised. If our credit ratings are downgraded, our cost
of funding could significantly increase. In addition,
participants in the capital and syndicated commercial
loan markets have internal policies limiting their
ability to invest in, or extend credit to, any single
borrower or group of borrowers or to a particular
industry.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCE Inc. and some of its subsidiaries have entered
into renewable credit facilities with various financial
institutions. They include credit facilities supporting
commercial paper programs. There is no assurance that
these facilities will be renewed on favourable terms.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We need significant amounts of cash to implement
our business plan. This includes cash for capital
expenditures to provide our services, dividend payments
and payment of our contractual obligations, including
repayment of our outstanding debt.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our plan in 2006 is to generate enough cash from
our operating activities to pay for capital expenditures
and dividends. We expect to pay contractual obligations maturing
in 2006 from cash on hand, from cash generated from our
operations or by issuing debt. If actual results are
different from our business plan or if the assumptions
in our business plan change, we may have to raise more
funds than expected by issuing debt or equity, borrowing
from banks or selling or otherwise disposing of assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we cannot raise the capital we need upon
acceptable terms, we may have to:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> limit our ongoing capital expenditures
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> limit our investment in new businesses
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> try to raise additional capital by selling
or otherwise disposing of assets.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any of these could have a material and negative
effect on our cash flow from operations and on our
growth prospects.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Acquisitions and dispositions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our growth strategy includes making strategic
acquisitions and entering into joint ventures. We also
from time to time dispose of assets or all or part of
certain businesses. There is no assurance that we will
find suitable companies to acquire or to partner with,
or that we will have the financial resources needed to
complete any acquisition or to enter into any joint
venture. There could also be difficulties in integrating
the operations of acquired companies with our existing
operations or in operating joint ventures.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There is also no assurance that we will be able to
complete any announced dispositions or that we will use
the funds received as a result of such dispositions for
any specific purpose that may be publicly anticipated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisitions and dispositions may be subject
to various conditions, such as approvals by regulators
and holders of our securities and other closing
conditions, and there can be no assurance that, with
respect to any specific acquisition or disposition, all
such conditions will be satisfied.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Litigation, regulatory matters and changes in laws</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Pending or future litigation, regulatory initiatives or
regulatory proceedings (including the increase of class
action claims) could have a material and negative effect
on our businesses, operating results and financial
condition.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in laws or regulations or in how they are
interpreted, and the adoption of new laws or
regulations, could also materially and negatively affect
us. This includes changes in tax laws or the adoption of
new tax laws that result in higher tax rates or new
taxes. It also includes the amendments to the <I>Securities
Act of Ontario </I>that took effect December&nbsp;31, 2005. These
amendments introduced statutory civil liability for
misrepresentations in continuous disclosure and
failure to disclose material changes on a timely basis,
and could result in an increase in the number of
securities class action claims. BCE could have to devote
considerable management time and resources to responding
to such securities class action claims.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For a description of the principal legal
proceedings involving us, please see <I>Legal proceedings
we are involved in</I>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For a description of certain regulatory initiatives
and proceedings affecting the Bell Canada companies,
please see <I>The regulatory environment we operate in</I>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Funding and control of subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BCE Inc. and Bell Canada are currently funding, directly
or indirectly, and may, in the future, continue to fund,
the operating losses of some of their subsidiaries, but
they are under no obligation to continue doing so. If
BCE Inc. or Bell Canada decides to stop funding any of
its subsidiaries and that subsidiary does not have other
sources of funding, this would have a material and
negative effect on the subsidiary&#146;s results of
operations and financial condition and on the value of
its securities. It could also have, depending on factors
such as the size or strategic importance of the
subsidiary, a material and negative effect on the
results of operations and financial condition of BCE
Inc. or Bell Canada.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, BCE Inc. and Bell Canada do not have
to remain the majority holder of, or maintain their
current level or nature of ownership in, any subsidiary,
unless they have agreed otherwise. An announcement of a
decision by BCE Inc. or Bell Canada to change the nature
of its investment in a subsidiary, to dispose of some or
all of its interest in a subsidiary, or any other
similar decision could have a material and negative
effect on the subsidiary&#146;s results of operations and
financial condition and on the value of its securities.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>


</DIV>
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<P align="right" style="font-size: 10pt"><I>p. 43</I>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If BCE Inc. or Bell Canada stops funding a
subsidiary, changes the nature of its investment or
disposes of all or part of its interest in a subsidiary,
stakeholders or creditors of the subsidiary might decide
to take legal action against BCE Inc. or Bell Canada.
For example, certain members of the lending syndicate of
Teleglobe, a former subsidiary of BCE Inc., and other
creditors of Teleglobe have launched lawsuits against
BCE Inc. following its decision to stop funding
Teleglobe. You will find a description of these lawsuits
under <I>Legal proceedings we are involved in</I>. While we
believe that these kinds of claims have no legal
foundation, they could negatively affect the market
price of BCE Inc.&#146;s or Bell Canada&#146;s securities. BCE
Inc. and Bell Canada could also have to devote
considerable management time and resources to respond to
such a claim.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Pension fund contributions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have not had to make regular contributions to our
pension funds in recent years because most of our
pension plans have had pension fund surpluses. However,
historically low interest rates combined with new
actuarial standards that came into effect in February
2005, have eroded the pension fund surpluses. This has
negatively affected our net earnings and liquidity. We
expect to contribute approximately $470&nbsp;million to our
defined benefit pension plans in 2006, subject to
actuarial valuations being completed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The funding status of our pension plans resulting
from future valuations of our pension plan assets and
liabilities depends on a number of factors, including:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> actual returns on pension plan assets
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> long-term interest rates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">These factors could require us to increase contributions
to our defined benefit pension plans in the future and
therefore could have a material and negative effect on
our liquidity and results of operations in 2006.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Renegotiating labour agreements</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Approximately 47% of our employees are represented by
unions and are covered by collective agreements.
Renegotiating collective agreements could result in
higher labour costs and work disruptions, including work
stoppages or work slowdowns. Difficulties in
renegotiations or other labour unrest could
significantly hurt our business, operating results and
financial condition.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There can be no assurance that if a strike occurs,
it would not disrupt service to Bell Canada&#146;s customers.
In addition, work disruptions at our service providers,
including work slowdowns and work stoppages due to
strikes, could significantly hurt our business,
including our customer relationships and results of
operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Events affecting our networks</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Network failures could materially hurt our business,
including our customer relationships and our operating
results. Our operations depend on how well we protect
our networks, equipment, applications and the
information stored in our data centres against damage
from fire, natural disaster, power loss, hacking,
computer viruses, disabling devices, acts of war or
terrorism and other events. Our operations also depend
on timely replacement and maintenance of our networks
and equipment. Any of these events could cause our
operations to be shut down indefinitely.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our networks are connected with the networks of
other telecommunications carriers, and we rely on them
to deliver some of our services. Any of the events
mentioned in the
previous paragraph, as well as strikes or other
work disruptions, bankruptcies, technical difficulties
or other events affecting the networks of these other
carriers, could also hurt our business, including our
customer relationships and our operating results.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Software and system upgrades</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Many aspects of our business, such as providing
telecommunication services and customer billing, among
others, depend to a large extent on various IT systems
and software, which must be improved and upgraded
regularly and replaced from time to time. Implementing
system and software upgrades and conversions is a very
complex process, which may have several adverse
consequences including billing errors and delays in
customer service. Any of these events could
significantly damage our customer relationships and
business and have a material and negative effect on our
results of operations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Regional Telecommunications Service Provider</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have proposed forming a new regional
telecommunications service provider in the form of an
income trust which would combine Bell Canada&#146;s
regional wireline operations with Aliant&#146;s wireline operations. The new
income trust would also own Bell Canada&#146;s 63.4% interest
in NorthernTel and T&#233;l&#233;bec. Completion of this
transaction is subject to a number of conditions that
include, among others:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> receiving advance
income tax rulings from the Canada Revenue Agency
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> receiving approval from the CRTC
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> receiving an advance ruling certificate from the Competition Bureau
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> receiving approvals from the appropriate securities commissions,
regulators and stock exchanges
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> receiving required third party consents on satisfactory terms
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> receiving required approvals from Aliant&#146;s shareholders
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> receiving necessary court approvals
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> arranging satisfactory bank financing.
</DIV>
<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>


</DIV>
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<P align="left" style="font-size: 10pt"><I>p. 44</I>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The proposed transaction involves the
integration of various operations previously operated
independently and there can be no assurance that the
resulting combined operation will realize the
anticipated synergies or that other benefits expected
from the transaction will be realized.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although our goal is to complete the proposed
transaction without affecting our customers or future
customers of the trust, there can be no assurance that
the proposed transaction will not result in customer
service disruptions. Customer service
disruptions may have a negative effect on our
operations and financial results, and those of the trust
in particular.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although we expect the trust to make regular cash
distributions to unitholders, these are not assured and
may be reduced or suspended. The ability of the trust to
maintain cash distributions will be subject to certain
risks associated with its business and operations,
including risks relating to:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> general economic conditions
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> increasing competition
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> changes in technology, industry standards and client needs
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
the trust&#146;s ability to quickly and efficiently introduce new products, services and technologies and upgrade existing ones in
response to these changes
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the impact of
pending or future litigation or regulatory proceedings
or changes in laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If the trust does not meet its targets for cash
distributions, the value of its units could decline
substantially.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Following the closing of the proposed transaction,
BCE expects to reduce its indirect interest in the
trust through a distribution of trust units to holders
of BCE Inc. common shares. The distribution of trust
units by BCE is subject to various conditions
including approval by BCE Inc.&#146;s shareholders and
necessary court approvals.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We expect the proposed recapitalization and public
offering of a minority stake in Telesat to take several
months to complete. During this time, the rapid pace of
change in the industry and the potential for regulatory
developments and/or changes in laws may make the
proposed recapitalization and public offering less
favourable, or other transactions and opportunities may
emerge that for business reasons BCE Inc. considers to
be more attractive. Business reasons could include the
availability of financing on acceptable terms and the
condition of relevant capital markets, among others.
There is no assurance that the proposed recapitalization
and public offering for Telesat will be completed in its
current form or at all.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">RISKS THAT COULD AFFECT BCE INC.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Holding company structure</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BCE Inc. is a holding company. That means it does not
carry on any significant operations and has no major
sources of income or assets of its own, other than the
interests it has in its subsidiaries, joint ventures and
significantly influenced companies. BCE Inc.&#146;s cash flow
and its ability to service its debt and to pay dividends
on its shares depend on dividends or other distributions
it receives from its subsidiaries, joint ventures and
significantly influenced companies and, in particular,
from Bell Canada. BCE Inc.&#146;s subsidiaries, joint
ventures and significantly
influenced companies are separate legal entities and
they have no legal obligation to pay dividends or make
other distributions to BCE Inc.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Stock market volatility</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The stock markets have experienced significant
volatility over the past few years, which has affected
the market price and trading volumes of the shares of
many telecommunications companies in particular.
Differences between BCE Inc.&#146;s actual or anticipated
financial results and the published expectations of
financial analysts may also contribute to volatility in
BCE Inc.&#146;s common shares. A major decline in the capital
markets in general, or an adjustment in the market price
or trading volumes of BCE Inc.&#146;s common shares or other
securities, may materially and negatively affect our
ability to raise capital, issue debt, retain employees,
make strategic acquisitions or enter into joint
ventures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>RISKS THAT COULD AFFECT CERTAIN
BCE GROUP COMPANIES</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BELL CANADA COMPANIES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Changes to wireline regulation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Decisions of regulatory agencies</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The business of the Bell Canada companies is affected by
decisions made by various regulatory agencies, including
the CRTC. For example, many of the decisions of the CRTC
indicate that they try to balance requests from
competitors for access to facilities, such as the
telecommunications networks, switching and transmission
facilities, and other network infrastructure of
incumbent telephone companies, with the rights of the
incumbent telephone companies to compete reasonably
freely. There is a risk that decisions of the CRTC, and
in particular the decisions relating to prices at which
we must provide such access, may have a negative effect
on our business and results of operations. Decisions of,
and proceedings involving, regulatory agencies including
the CRTC are described in more detail in <I>The regulatory
environment we operate in</I>.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
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<P align="right" style="font-size: 10pt"><I>p. 45</I>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Second Price Cap decision</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In May&nbsp;2002, the CRTC issued decisions relating to new
price cap rules that govern incumbent telephone
companies for the four-year period starting in June
2002.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The CRTC also established the deferral account, an
obligation that changes as amounts are added to the
account, or the CRTC approves initiatives that serve to
reduce the account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The accumulated deferral account balance in Bell
Canada&#146;s
and Aliant&#146;s deferral accounts at May&nbsp;31, 2006 is
estimated to be $480.5&nbsp;million for Bell Canada and $21.8
million for Aliant, while the future annualized
recurring deferral account obligation as of the same
date is estimated at $81.5&nbsp;million for Bell Canada and
$2.2&nbsp;million for Aliant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February&nbsp;16, 2006, the CRTC issued Telecom
Decision 2006-9, where it concluded that incumbent
telephone companies should clear the accumulated
balances in their deferral accounts, to the greatest
extent possible, in the following ways:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> by
expanding broadband services to rural and remote areas
that are currently unserved and would not otherwise be
served
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> by improving the accessibility to
telecommunications services for persons with
disabilities, using a minimum of 5% of incumbent
telephone companies deferral account balances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Incumbent telephone companies are directed to file their
proposals by June&nbsp;30, 2006. Any amounts remaining in
their deferral accounts after accounting for these two
programs will be rebated to residential local customers
in non-high cost serving areas.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There is a risk that Bell Canada&#146;s and Aliant&#146;s
proposed implementation timeframes may be accelerated,
which could have a material and negative effect on their
results of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Competitor Digital Network Service</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On February&nbsp;3, 2005, the CRTC released Telecom Decision
2005-6 on CDN services. This decision set the rates,
terms and conditions for the provision of digital
network services by Bell Canada and the other incumbent
telephone companies to their competitors. The CRTC
determined that CDN services should include not only
digital network access components but also
intra-exchange facilities, inter-exchange facilities in
certain metropolitan areas, and channelization and
co-location links (expanded CDN services). This decision
affected Bell Canada and Aliant as providers of CDN
services in their own operating territories and as
purchasers of those services elsewhere in Canada.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are two important financial aspects to note
in this decision:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the prices for all CDN
services were applied on a going-forward basis, as of
the date of the decision, and Bell Canada will be
compensated from the deferral account for the revenue
losses from this decision
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Bell Canada will also be compensated through
the deferral account for applying reduced rates
retroactively for the CDN access components that were
tariffed at interim rates prior to the decision.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Retail quality of service indicators</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On March&nbsp;24, 2005, the CRTC released Telecom Decision
2005-17 which, among other things, established the rate
adjustment plan to be applied when incumbent telephone
companies do not
meet mandated standards of quality of service provided
to their retail customers. As a result of this decision,
incumbent telephone companies are subject to a penalty
mechanism when they do not meet one or more service
standards for their retail services. For Bell Canada,
this maximum potential penalty amount equates to
approximately $245&nbsp;million annually, based on 2004
revenues.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the current penalty period of January 1 to
December&nbsp;31, 2005, the CRTC standard for several
indicators was not met on an annual average basis
because of the strike in 2005 by the CEP at Entourage.
Bell Canada has requested that the CRTC approve its
December&nbsp;5, 2005 application for the purpose of
excluding below-standard strike-related results as a
<I>force majeure </I>type exclusion. However, there is no
assurance that the CRTC will issue a favourable decision
and Bell Canada may be required to pay a penalty of up
to $19&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The CRTC determined that Aliant did not meet
certain service standards during the period of January 1
to December&nbsp;31, 2004. Applying the rate adjustment plan
would result in an estimated penalty of $3&nbsp;million.
Aliant has applied to the CRTC for an exclusion from
having to pay a penalty due to its labour disruption in
2004, as allowed for in the decision. The CRTC has not
yet ruled on this application. Regarding the penalty
period of January 1 to December&nbsp;31, 2005, the CRTC
standard for two indicators was missed on an annual
average basis, resulting in a possible penalty of
approximately $2&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Decision of VoIP Regulation</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On May&nbsp;12, 2005, the CRTC released Telecom Decision
2005-28 which determined the way the CRTC will regulate
VoIP services. The CRTC determined that VoIP services
(other than peer-to-peer services, defined in the
decision as IP communications services between two
computers) provided by Bell Canada and other incumbent
telephone companies will be regulated in the same way as
traditional telephone services.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of this decision, VoIP services that
use telephone numbers that conform to the North American
numbering plan, and that provide universal access to
and/or from the public switched telephone network will,
for incumbent telephone companies, be treated as
regulated local exchange services. Accordingly, tariffs
have to be filed by incumbent telephone companies, but
not by their competitors, when they provide customers
with local VoIP services using a telephone number
associated with that incumbent telephone company&#146;s
territory. In addition, the winback rules will apply,
which means that incumbent telephone companies cannot
attempt to directly contact a former residential local
service customer for a period of 12&nbsp;months from the time
the customer decides to buy traditional local telephone
service or VoIP service from a competitor. Other
restrictions on promotions and bundling that apply to
traditional local wireline services also
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt"><I>p. 46</I>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">apply to VoIP. These regulatory requirements could
reduce Bell Canada&#146;s and Aliant&#146;s flexibility to compete
with both traditional and new competitors, which could
have a material and negative effect on our business and
results of operations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Also as a result of Telecom Decision 2005-28,
incumbent telephone companies as well as competitive
local exchange carriers will have to fulfill, in
relation to VoIP services, other requirements that apply
to traditional telephone services, such as:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
allowing customers to keep their local number when
they change service providers within the same local area
(local number portability)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> allowing customers to use any long distance provider of their choice
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> listing telephone numbers in the directory associated with the local
telephone number chosen by the customer
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> offering services for the hearing impaired
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> implementing safeguards to protect customer privacy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">These regulatory requirements could increase operational
costs and reduce Bell Canada&#146;s and Aliant&#146;s flexibility
to compete with resellers, and could therefore have a
negative effect on our business and results of
operations. Bell Canada and several other parties have
petitioned the Governor in Council to overturn the
CRTC&#146;s decision.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2005, Bell Canada introduced three retail VoIP
services in Qu&#233;bec and Ontario. These services are
offered pursuant to tariffs that have received interim
approval from the CRTC. CRTC public processes relating
to these filings were held in 2005 and decisions on
final approval of the tariffs are expected in March
2006. The CRTC has, on an interim basis, permitted Bell
Canada to file VoIP tariff notices for the CRTC&#146;s
approval, on a confidential basis, which provide for
minimum and maximum rates associated with each proposed
VoIP service plan. Once the minimum and maximum rates
are approved, for all future price changes within that
range, Bell Canada can issue new tariff pages on their
effective date. No additional CRTC approvals are
required for price changes within the ranges. The CRTC
has also, on an interim basis, permitted Bell Canada to
price its Bell Digital Voice service differently on a
province-wide basis in Ontario and Qu&#233;bec. A final
decision from the CRTC regarding these tariff notices
could result in a different outcome, and could therefore
have a negative effect on our business and results of
operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Forbearance from regulation of local exchange services</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The CRTC conducted a public proceeding in 2005 on a
framework for forbearance from the regulation of
residential and business local exchange services offered
by the incumbent telephone companies. The CRTC plans to
issue a decision with respect to this matter in March
2006. Bell Canada&#146;s and the other incumbent telephone
companies&#146; flexibility to compete could be adversely
affected in the event that the CRTC, in its decision,
establishes onerous conditions to be satisfied in order
for the incumbent telephone companies to obtain
regulatory forbearance of residential and business local
exchange services.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Price floor safeguards for retail services</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On April&nbsp;29, 2005, the CRTC issued its decision on price
floor safeguards and related issues. A price floor
safeguard is the minimum price that an incumbent
telephone company can charge for regulated services.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In its decision, the CRTC made changes which, in
some circumstances, may result in future higher price
floors for new services and bundles that could
negatively limit Bell Canada&#146;s ability to compete.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Application to change bundling rules</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On September&nbsp;2, 2005, Bell Canada applied to the CRTC to
modify the bundling rules that apply to CSAs. CSAs are
arrangements tailored to a particular customer&#146;s needs
for the purpose of customizing the offering in terms of
rate structure and levels.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The CRTC currently requires any Mixed CSAs to be
filed for approval with the CRTC before it can be
provided to customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell Canada&#146;s proposal would exempt a Mixed CSA
from the bundling rules and associated tariff
requirements if:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> total revenue from the CSA
is higher than the price of the tariffed components of
the CSA
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the CSA is not part of a practice designed to circumvent tariffs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Bell Canada&#146;s flexibility to compete may continue to be
encumbered if the proposal is not approved.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Bell Canada proposals to Telecom Policy Review Panel</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On April&nbsp;11, 2005, the Minister of Industry announced
the creation of the Telecom Policy Review Panel (Panel)
to review Canada&#146;s telecommunications policy and
regulatory framework, and make recommendations. The
Government of Canada had asked the Panel to deliver a
final report by the end of 2005 but the report has been
delayed and it is not clear when it will be released to
the public.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On August&nbsp;15, 2005, Bell Canada submitted its
recommendations to the Panel including a proposal for
the adoption of a comprehensive &#147;next generation&#148;
regulatory framework that relies on market forces to the
maximum extent possible to ensure the telecommunications
industry&#146;s continued role as a key enabler of Canada&#146;s
overall economic performance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There can be no guarantee that the Panel will adopt
any or all of Bell Canada&#146;s proposals, or that the
Minister of Industry and
Parliament would implement the Panel&#146;s
recommendations regardless of its adoption of Bell
Canada&#146;s proposals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A number of groups have intervened to the Panel,
opposing the regulatory reforms suggested by Bell Canada
and advocating different reforms including significantly
expanding the scope of wholesale regulation of Bell
Canada&#146;s and other incumbent telephone companies&#146;
facilities. There is a risk that the Panel could follow
those recommendations and propose that they be adopted
by the Minister of Industry and Parliament.
Implementation of the recommendations and proposals of
opposing parties could have a material and negative
effect on the Bell Canada companies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
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<P align="right" style="font-size: 10pt"><I>p. 47</I>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Access to Bell Canada loops for Competitor
Local Exchange Carriers&#146; customers served via
remotes</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On September&nbsp;2, 2005, Rogers Telecom submitted an
application requesting that the CRTC direct Bell Canada
to make unbundled loops, which are transmission paths
between the users&#146; premises and the central office that
are provided separately from other components, available
to competitors in a timely manner in certain specified
areas where Rogers Telecom is present. On October&nbsp;3,
2005, Bell Canada responded to Rogers Telecom&#146;s
application and explained the reasons why in some areas
where competitors are present and the competitors&#146;
potential end customer is served via a Bell Canada
remote, unbundled loops should not have to be provided
unless Bell Canada is compensated by competitors for the
costs it incurs on their behalf.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The cost to equip Bell Canada&#146;s network in order to
provide unbundled loops to competitors in locations
where a potential competitor&#146;s end customer is currently
served via a Bell Canada remote could be significant
should the CRTC grant Rogers Telecom&#146;s request. It is
anticipated that the CRTC will institute a further
process to examine this matter prior to rendering a
decision.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Wireless number portability</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Government of Canada in its 2005 Budget announced
that it intended to ask the CRTC to implement wireless
number portability. Number portability enables customers
to retain the same phone number when changing service
provider within the same local serving area.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On December&nbsp;20, 2005, the CRTC released Telecom
Decision 2005-72. Among other things, the decision
directed Bell Mobility, Rogers Wireless and Telus
Mobility to implement wireless number portability in
Alberta, British Columbia, Ontario and Quebec by March
14, 2007. This accelerated timeframe will be challenging
for Bell Mobility and the rest of the wireless industry
to meet. On February&nbsp;6, 2006, the CRTC
issued Telecom Public Notice 2006-3,
<I>Regulatory issues related to the implementation of
wireless number portability</I>, a proceeding that will
address a wide range of issues associated with the
implementation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Licences and changes to wireless regulation</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Companies must have a spectrum licence to operate
cellular, PCS and other radio-telecommunications systems
in Canada. The Minister of Industry awards spectrum
licences, through a variety of methods, at his or her
discretion under the <I>Radiocommunication Act</I>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While we expect that the licences under which Bell
Mobility, Aliant Telecom and MT&#038;T Mobility provide
cellular and PCS services will be renewed at term, there
is no assurance that this will happen. Industry Canada
can revoke a company&#146;s licence at any time if the
company does not comply with the licence&#146;s conditions.
While we believe that we comply with the conditions of
our licences, there is no assurance that Industry Canada
will agree. Should there be a disagreement, this could
have a material and negative effect on the Bell Canada
companies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In February&nbsp;2005, Industry Canada released a
report concerning its procedures for approving and
placing wireless and radio towers in Canada, including
the role of municipal authorities in the approval
process. Among other things, the report recommends that
the authority to regulate the siting of antennae and
supporting structures remain exclusively with the
Government of Canada. In August&nbsp;2005, Industry Canada
presented a revised draft policy for comment. The
wireless and broadcasting industries both have a number
of concerns with the draft policy and are now working
with Industry Canada to attempt to resolve these
concerns. It is not possible to predict at this time if
or when the final policy will be issued. If the final
policy requires more municipal or public consultation in
the approval process, there is a risk that it could
significantly slow the expansion of wireless networks in
Canada. This could have a material and negative effect
on the operations of the Bell Canada companies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Revenue from major customers</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A significant amount of revenue earned by Bell Canada&#146;s
Enterprise unit comes from a small number of major
customers. If we lose contracts with any of these major
customers and cannot replace them, it could have a
material and negative effect on our financial results.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Competition Bureau&#146;s investigation concerning system access fees</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On December&nbsp;9, 2004, Bell Canada was notified by the
Competition Bureau that the Commissioner of Competition
had initiated an inquiry under the misleading
advertising provisions of the <I>Competition Act </I>concerning
Bell Mobility&#146;s description or
representation of system access fees (SAFs) and was
served with a court order, under section 11 of the
<I>Competition Act</I>, compelling Bell Mobility to produce
certain records and other information that would be
relevant to the Competition Bureau&#146;s investigation. Bell
Canada has complied with the court order and provided
the requested information.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell Mobility charges monthly SAFs to its cellular
subscribers to help it recover certain costs associated
with its mobile communications network. These costs
include maintenance costs, the cost of installing new
equipment and retrofitting new technologies, and fees
for spectrum licences. These costs also include the
recovery of the contribution tax the CRTC charges to
support telephone services in rural and remote areas of
Canada.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell Mobility may be subject to financial penalties
by way of fines, administrative monetary penalties
and/or demands for restitution of a portion of the SAFs
charged to cellular subscribers if it is found to have
contravened the misleading advertising provisions of the
<I>Competition Act</I>.
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
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<P align="left" style="font-size: 10pt"><I>p. 48</I>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Potential legislation restricting in-vehicle use of cellphones</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Some studies suggest that using cellphones while driving
may result in more motor vehicle collisions. It is
possible that this could lead to new regulations or
legislation banning the use of handheld cellphones while
driving, as it has in Newfoundland and Labrador and in
several U.S. states, or other restrictions on in-vehicle
use of wireless devices. If any of these happen,
cellphone use in vehicles may decline, which may
negatively affect the business of the Bell Canada
companies.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Health concerns about radio frequency emissions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">It has been suggested that some radio frequency
emissions from cellphones may be linked to certain
medical conditions. Interest groups have also requested
investigations into claims that digital transmissions
from handsets used with digital wireless technologies
pose health concerns and cause interference with hearing
aids and other medical devices. This could lead to
additional government regulation, which could have a
material and negative effect on the business of the Bell
Canada companies. In addition, actual or perceived
health risks of wireless communications devices could
result in fewer new network subscribers, lower network
usage per subscriber, higher churn rates, product
liability lawsuits or less outside financing being
available to the wireless communications industry. Any
of these would have a negative effect on the business of
the Bell Canada companies.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Bell ExpressVu currently uses four satellites, Nimiq 1,
Nimiq 2, Nimiq 3 and Nimiq 4-Interim, for its video
services. Nimiq 4-Interim became operational at the end
of February&nbsp;2006. Telesat, a wholly-owned subsidiary of
BCE Inc., operates or directs the operation of these
satellites.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Satellites are subject to significant risks. Any
loss, failure, manufacturing defects, damage or
destruction of these satellites, of Bell ExpressVu&#146;s
terrestrial broadcasting infrastructure, or of Telesat&#146;s
tracking, telemetry and control facilities to operate
the satellites, could have a material and negative
effect on Bell ExpressVu&#146;s results of operations and
financial condition. Please see <I>Risks that could affect
certain BCE group companies &#151; Telesat </I>for more
information on the risks relating to Telesat&#146;s
satellites.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell ExpressVu is subject to programming and
carriage requirements under CRTC regulations. Changes to
the regulations that govern broadcasting could
negatively affect Bell ExpressVu&#146;s competitive position
or the cost of providing its services. Bell ExpressVu&#146;s
DTH satellite television distribution undertaking
licence was renewed in March&nbsp;2004 and expires on August
31, 2010. While we expect this licence will be renewed
at term, there is no assurance that this will happen.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell ExpressVu and Bell Canada continue to face
competition from unregulated U.S. DTH satellite
television services that are sold illegally in Canada.
In response, it is participating in legal actions that
are challenging the sale of U.S. DTH satellite
television equipment in Canada. This competition could
have a material and adverse impact on Bell ExpressVu&#146;s
business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell ExpressVu faces a loss of revenue resulting
from the theft of its services. Bell ExpressVu
introduced a smart card swap for its authorized digital
receivers that is designed to block unauthorized
reception of Bell ExpressVu&#146;s signals. As with any
technology-based security system, it is not possible to
eliminate with absolute certainty a compromise of that
security system. As is the case for all other pay
television providers, Bell ExpressVu has experienced,
and continues to experience, ongoing efforts to steal
its services by way of compromise of Bell ExpressVu&#146;s
signal security systems.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October&nbsp;28, 2004, the Court of Qu&#233;bec ruled in
<I>R. v. D&#146;Argy and Theriault (D&#146;Argy Case) </I>that the
provisions in the <I>Radiocommuni-cation Act </I>making it a
criminal offence to manufacture, offer for sale or sell
any device used to decode an encrypted subscription
signal relating to the unauthorized reception of
satellite signals violate the freedom of expression
rights enshrined in the <I>Charter</I>. On March&nbsp;31, 2005, the
Qu&#233;bec Superior Court overruled the Court of Qu&#233;bec&#146;s
decision in the <I>D&#146;Argy Case </I>and upheld the
constitutional validity of those provisions in the
<I>Radiocommunication Act</I>. The defendants in the <I>D&#146;Argy
Case </I>have been granted leave to appeal the ruling of the
Qu&#233;bec Superior Court to the Qu&#233;bec Court of
Appeal. It remains a criminal offence throughout Canada
to manufacture, offer for sale or sell any device used
to engage in the unauthorized reception of satellite
signals. If the ruling of the Qu&#233;bec Superior Court is
overruled by the Qu&#233;bec Court of Appeal and Parliament
does not enact new provisions criminalizing the
unauthorized reception of satellite signals, Bell
ExpressVu may face increasing loss of revenue from the
unauthorized reception of satellite signals.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Dependence on advertising</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A large part of Bell Globemedia&#146;s revenue from its
television and print businesses comes from advertising
revenues. Bell Globemedia&#146;s advertising revenues are
affected by competitive pressures, including its ability
to attract and retain viewers and readers. In addition,
the amount advertisers spend is directly related to
economic growth. An economic downturn tends to make it
more difficult for Bell Globemedia to maintain or
increase revenues. Advertisers have historically been
sensitive to general economic cycles and, as a result,
Bell Globemedia&#146;s business, financial condition and
results of operations could be materially and negatively
affected by a downturn in the economy. In addition, most
of Bell Globemedia&#146;s advertising contracts are
short-term and the advertiser can cancel them on short
notice.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
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<P align="right" style="font-size: 10pt"><I>p. 49</I>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Increasing fragmentation in television markets</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Television advertising revenue largely depends on the
number of viewers and the attractiveness of programming
in a given market. The viewing market has become
increasingly fragmented over the past decade and this
trend is expected to continue as new services and
technologies increase the choices available to
consumers. As a result, there is no assurance that Bell
Globemedia will be able to maintain or increase its
advertising revenues or its ability to reach or retain
viewers with attractive programming.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Revenues from distributing television services</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A significant portion of revenues from CTV&#146;s specialty
television operations comes from contractual
arrangements with distributors who are mainly cable and
DTH operators. Competition has increased in the
specialty television market. As a result, there is no
assurance that contracts with distributors will be
renewed on equally favourable terms.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Increased competition for fewer print customers</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Print advertising revenue largely depends on circulation
and readership. The existence of a competing national
newspaper and
commuter papers in Toronto and other major markets, has
increased competition for The Globe and Mail&#146;s print
operations. In addition, total circulation and
readership of Canadian newspapers have continued to
decline. There is increasing pressure on print profit
margins resulting from more competition in print
advertising rates and higher costs of operation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Broadcast licences and CRTC decisions</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Each of CTV&#146;s conventional and specialty services
operates under licences issued by the CRTC for a fixed
term of up to seven years. These licences are subject to
the requirements of the <I>Broadcasting Act</I>, the policies
and decisions of the CRTC, and the conditions of each
licensing or renewal decision, all of which may change.
While these are expected to be renewed at the
appropriate times, there can be no assurance that any or
all of CTV&#146;s licences will be renewed. Any renewals,
changes or amendments to licences and any decisions by
the CRTC from time to time that affect the industry as a
whole or CTV in particular may have a material and
negative effect on Bell Globemedia.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Satellite industry risks</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Operational risks due to various types of potential anomalies
Satellites utilize highly complex technology and operate
in the harsh environment of space and therefore are
subject to significant operational risks while in orbit.
The risks include in-orbit equipment failures,
malfunctions and other kinds of problems commonly
referred to as anomalies. Any single anomaly or series
of anomalies could materially and adversely affect
Telesat&#146;s operations, revenues, relationship with
current customers and the ability to attract new
customers for satellite services. The occurrence
of anomalies may also adversely affect Telesat&#146;s ability
to insure the satellites at commercially reasonable
premiums, if at all.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Launch failures
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Satellites are subject to certain risks related to
failed launches. Launch failures result in significant
delays in the deployment of satellites because of the
need to construct replacement satellites and to obtain
other launch opportunities. Such significant delays
could materially and adversely affect operations and
revenues. Should Telesat not be able to obtain launch
insurance on reasonable terms and a launch failure were
to occur, Telesat would have to directly suffer the loss
of the cost of the satellite and related costs.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Construction and launch delays
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The construction and launch of satellites are subject to
certain
delays which can adversely affect Telesat&#146;s operations.
Delays in the commencement of service could enable
customers who pre-purchased transponder capacity to
terminate their contracts and could affect plans to
replace an in-orbit satellite prior to the end of its
useful life. The failure to implement a satellite
deployment plan on schedule could have a material and
adverse effect on Telesat&#146;s financial condition and
results of operations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Market for satellite insurance
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The price, terms and availability of insurance have
fluctuated over time. Insurance availability can be
affected by recent satellite failures and general
conditions in the insurance industry. Launch and
in-orbit policies on satellites may not continue to be
available on commercially reasonable terms or at all. In
addition to higher premiums, insurance policies may
provide for higher deductibles, shorter coverage
periods, higher loss percentages required for
constructive total loss claims and additional satellite
health-related policy exclusions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An uninsured failure of one or more satellites
could have a material and adverse effect on Telesat&#146;s
financial condition and results of operations. In
addition, higher premiums on insurance policies increase
costs, thereby reducing earnings from operations by the
amount of such increased premiums.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With respect to in-orbit satellites, Nimiq 1 is
insured until the second quarter of 2006 for
approximately its book value. Anik FIR is insured for
approximately its book value until the third quarter of
2006. Anik F2 is insured for approximately two thirds of
its book value until the third quarter of 2007. In the
event of a total failure of the Anik F2 satellite, the
after-tax accounting loss is estimated at $105&nbsp;million
to $110&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2004, Telesat ceased to insure its interest in
the residual value of Nimiq 2 following the arrival in
orbit of the leased satellite Nimiq 3.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2001, the manufacturer of the Anik Fl satellite
advised Telesat of a gradual decline in power on the
satellite. Telesat had insurance in place to cover the
power loss on Anik Fl and filed a claim with its
insurers. Telesat and its insurers reached a final
settlement agreement
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt"><I>p. 50</I>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">which included an initial payment to Telesat of
US$136.2&nbsp;million, which has already been received, and
originally called for an additional payment of US$49.1
million in 2007 if the power level on Anik Fl degrades
as predicted by the manufacturer. In December&nbsp;2005,
Telesat entered into early settlement agreements with
certain insurance underwriters, and as a result received
US$26.2&nbsp;million. A balance of US$20.1&nbsp;million is
expected to be received in 2007 if the power level on
Anik Fl degrades as predicted. In the event that the
power level
on Anik Fl is better than predicted, the amount of the
payment(s) will be adjusted by applying a formula which
is included in the settlement documentation and could
result in either a pro-rated payment to Telesat of the
additional US$20.1&nbsp;million or a pro-rated repayment of
up to a maximum of US$14.9&nbsp;million to be made by Telesat
to the insurers. Currently, power levels are continuing
to degrade as predicted.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December&nbsp;2005, Telesat placed launch and
in-orbit insurance coverage, covering the launch and
first year of in-orbit life, for the approximate book
value of Anik F3. Anik F3 is expected to be available
for service in the third quarter of 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Telesat has signed contracts with EADS Astrium,
SAS, a European satellite manufacturer, for construction
of the Nimiq 4 satellite. As the construction contract
for Nimiq 4 was recently signed and the satellite is not
to be launched until 2008, Telesat has not initiated
discussions for the placement of insurance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Ground operations infrastructure failures
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Telesat operates primary and back-up satellite
operations centers. Failures could be experienced in the
necessary equipment at the primary center, at the
back-up facility, or in the communication links between
these facilities and remote teleport facilities. A
failure or error affecting tracking, telemetry and
control operations might lead to a break-down in the
ability to communicate with one or more satellites or
cause the transmission of incorrect instructions to the
affected satellite(s), which could lead to a temporary
or permanent degradation in satellite performance or to
the loss of one or more satellites.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Business risks and competition</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Telesat&#146;s primary business activities (broadcast,
business networks and carrier services) have been
largely dedicated to the Canadian domestic market. This
market is characterized by increasing competition and
rapid technological development. Telesat competes with
US based operators who may have greater financial
resources than Telesat and, together with Ciel Satellite
Group, who received provisional authority from Industry
Canada to operate a broadcast satellite, could capture a
larger market share than that currently anticipated by
Telesat.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision of services into the United States and
Latin American markets is subject to certain risks such
as changes in foreign government regulations and
telecommunication standards, licensing requirements,
tariffs, taxes and other matters. Latin American operations are also subject to risks associated with
economic and social instability, regulatory and
licensing restrictions, exchange controls and
significant fluctuations in the value of foreign
currencies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues from two customers represent approximately
34% of Telesat&#146;s total revenues. Telesat may have
difficulty in
replacing these customers should their satellite
usage decrease.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finally, the sale or lease of Ka-band capacity,
which permits Telesat to provide broadband Internet
access via satellite to markets that Telesat has not
previously served, represents a new area of business and
may or may not be adopted as Telesat expects.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Foreign exchange risk</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A substantial portion of Telesat&#146;s capital expenditures
and other expenses are in U.S. dollars. However, the
currency of revenues and earnings that may be received
from satellite infrastructure investments is subject to
individual customer contractual arrangements. As a
result Telesat may become exposed to foreign exchange
differences between the infrastructure investments and
the resulting revenues and earnings.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Telesat is subject to the regulatory authority of the
Canadian government, primarily the CRTC and Industry
Canada, and the national communications authorities of
the countries in which it operates. There could be
material and adverse affects on Telesat&#146;s business
should Telesat not obtain all of the required regulatory
approvals for the construction, the launch and operation
of any of its future satellites, or for the orbital
slots planned for these satellites, or if the licences
obtained impose operational restrictions, or permit
interference which could affect the use of its
satellites. In addition, Telesat may not continue to
coordinate the satellites successfully under procedures
of the International Telecommunications Union.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The CRTC regulates Telesat&#146;s radio frequency
channel service rates based on certain price ceilings.
While the price ceiling levels were established based on
prevailing market conditions and are above current rates
for certain of Telesat&#146;s existing satellite services,
there can be no assurance that these ceilings will be
appropriate for services offered on any future
satellites operated by Telesat in Canada.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 1999, the U.S. State Department published
amendments to the International Traffic in Arms
Regulations which included satellites on the list of
items requiring export permits. These provisions have
constrained Telesat&#146;s access to technical information
and have had a negative impact on Telesat&#146;s
international consulting revenues.
</DIV>
<DIV align="left">
<A name="123"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The information that appears on pages 2 to 59 of
the BCE 2005 annual report under <I>Management&#146;s discussion
and analysis </I>is incorporated herein by reference. Our
annual report is available on SEDAR at www.sedar.com and
on EDGAR at www.sec.gov.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><I>p. 51</I>


<DIV align="left">
<A name="124"></A>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>FOR MORE INFORMATION</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">DOCUMENTS YOU CAN REQUEST
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">You can ask us for a copy of any of the following documents:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> this AIF, together with any document, or the
relevant pages of any document, incorporated by
reference into it
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the comparative financial
statements of BCE Inc. for its most recently completed
financial year together with the accompanying auditor&#146;s
report. You will find more financial information in BCE
Inc.&#146;s comparative financial statements for its most
recently completed financial year
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> any
interim financial statements of BCE Inc. that were filed
after the financial statements for its most recently
completed financial year
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the most recent BCE
Inc. notice of annual meeting and management proxy
circular, which contains more information about
directors&#146; and officers&#146; remuneration and indebtedness,
principal holders of BCE Inc.&#146;s securities, options to
purchase securities and interests of insiders in
material transactions, where applicable
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> any
other documents that are incorporated by reference into
a preliminary short form prospectus or a short form
prospectus and are not listed above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Please send your request to the Corporate Secretary of
BCE Inc., at 1000, rue de La Gaucheti&#232;re Ouest, Suite
3700, Montr&#233;al, Qu&#233;bec H3B 4Y7.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will send you the documents at no charge when
our securities are being distributed under a preliminary
short form prospectus or short form prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At any other time, we may charge you a reasonable
fee if you or the company you work for is not a security
holder of BCE Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You can also ask us for a copy of the annual and
quarterly management&#146;s discussion and analysis of BCE
Inc. by contacting the Vice-President, Investor
Relations of BCE Inc., at 1000, rue de La Gaucheti&#232;re
Ouest, Suite&nbsp;3700, Montr&#233;al, Qu&#233;bec H3B 4Y7 or by
sending an <FONT style="white-space:nowrap">e-mail to
investor.relations@bce.ca.</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">OTHER INFORMATION ABOUT BCE
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The transfer agent and registrar for the common
shares and preferred shares of BCE Inc. in Canada is
Computershare Trust Company of Canada (Computershare) at
its principal offices in Montr&#233;al and Toronto and in the
United States is Computershare Trust Company, Inc. at
its principal offices in Denver and New York.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The registrar for BCE Inc.&#146;s debt securities is
Computershare, in Montr&#233;al, and debt securities may be
presented for registration or transfer, at the principal
office of Computershare in the cities of Halifax,
Montr&#233;al, Toronto, Calgary or Vancouver.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional information, including directors&#146; and
officers&#146;
compensation, personal loans to directors and
officers, principal holders of BCE Inc.&#146;s securities and
securities authorized for issuance under equity
compensation plans, if applicable, is contained in BCE
Inc.&#146;s management proxy circular for its most recent
annual meeting of shareholders that involved the
election of directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These documents, as well as BCE Inc.&#146;s annual and
quarterly reports and news releases, are also available
on BCE Inc.&#146;s website at www.bce.ca.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional information relating to BCE is available
on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
Additional financial information is provided in BCE
Inc.&#146;s financial statements and management&#146;s discussion
and analysis for 2005.
</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="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px">Shareholder inquiries</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">1-800-561-0934</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investor relations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">1-800-339-6353</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt"><I>p. 52</I>


<DIV align="left">
<A name="125"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>SCHEDULE
1 &#151; AUDIT COMMITTEE INFORMATION</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1. THE AUDIT COMMITTEE&#146;S CHARTER
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The BCE Audit Committee charter is available in
the governance section of BCE Inc.&#146;s website at
www.bce.ca and attached as Schedule&nbsp;1A to this AIF.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">2. COMPOSITION OF THE AUDIT COMMITTEE
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%" nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">NAME</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">INDEPENDENT?</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">FINANCIALLY LITERATE?</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">T.C.
O&#146;Neil &#151; Chair</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">Yes</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">Yes</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">A. B&#233;rard</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">Yes</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">Yes</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">J. Maxwell</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">Yes</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">Yes</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">R.C. Pozen</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">Yes</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">Yes</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">V.L. Young</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">Yes</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">Yes</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>


<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3. RELEVANT EDUCATION AND EXPERIENCE
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>T.C.
O&#146;Neill &#151; Chair</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;O&#146;Neill has been a director on the BCE Inc. board
since January&nbsp;2003. He is also Chair of the Audit
Committee. He was Chairman and Chief Executive Officer
of Price Waterhouse Canada from 1996 to 1998. He was
Chief Executive Officer of PricewaterhouseCoopers LLP in
Canada from 1998 to 2001 and was Chief Operating Officer
of PricewaterhouseCoopers LLP Global Organization from
2000 until January&nbsp;2002. He also served as Chief
Executive Officer of PricewaterhouseCoopers Consulting
from January&nbsp;2002 to May&nbsp;2002 and then as Chairman of
the Board until October&nbsp;2002. A graduate of Queen&#146;s
University, Mr.&nbsp;O&#146;Neill received his CA designation in
1970 and was awarded the FCA designation in 1988.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>A. B&#233;rard</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;B&#233;rard has been a director on the BCE Inc. board
since
January&nbsp;2003. He previously served as Chief Executive
Officer of the National Bank of Canada from September
1990 to March&nbsp;2002. He also served as Chairman of the
Board from September&nbsp;1990 to March&nbsp;2004. Mr.&nbsp;B&#233;rard
holds a Fellow&#146;s Diploma from the Institute of Canadian
Bankers and was Chairman of the Executive Council of the
Canadian Bankers&#146; Association from 1986 to 1988.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>J. Maxwell</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ms.&nbsp;Maxwell has been a director on the BCE Inc. board
since January&nbsp;2000. She is currently a research fellow
of the Canadian Policy Research Networks Inc. since
January&nbsp;2006 and served as President from 1995 until
January&nbsp;2006. Prior to this appointment, she was
Associate Director of the School of Political Studies at
Queen&#146;s University. She acted as Chair of the Economic
Council of Canada from 1985 to 1992. Prior to 1985, Ms.
Maxwell worked as a consultant and as Director of Policy
Studies at the C.D. Howe Institute.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>R.C. Pozen</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Pozen has been a director on the BCE Inc. board
since February&nbsp;2002. He is Chairman of the board of MFS
Investment Management since January&nbsp;2004. He is the
former Chief of Commerce and Labour, Massachusetts State
House and a former Visiting Professor at Harvard Law
School. He also served as President of Fidelity
Management and Research Company from 1997 to 2001 and as
Vice-Chairman of the Board of Fidelity Investments in
2000 and 2001. Mr.&nbsp;Pozen is a graduate of Yale Law
School.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>V.L. Young</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Young has been a director on the BCE Inc. board
since May&nbsp;1995. He was Chairman and Chief Executive
Officer of Fishery Products International Limited from
1984 until May&nbsp;2001, earning the distinction of CEO of
the Year from the Financial Times. He also served as
Deputy Minister of the Treasury Board and special
advisor to the Premier of Newfoundland, as well as CEO
of Newfoundland Hydro. Mr.&nbsp;Young holds an MBA from the
University of Western Ontario.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4. RELIANCE ON CERTAIN EXEMPTIONS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Nil
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5. RELIANCE ON THE EXEMPTION
IN SUBSECTION 3.3(2) OR SECTION
3.6
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Nil
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">6. RELIANCE ON SECTION 3.8
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Nil
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7. AUDIT COMMITTEE OVERSIGHT
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Nil
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8. PRE-APPROVAL POLICIES AND PROCEDURES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BCE Inc.&#146;s Auditor Independence Policy is a
comprehensive policy governing all aspects of BCE&#146;s
relationship with the external auditor, including:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Establishing a process for determining
whether various audit and other services provided by the
external auditor affect its independence;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Identifying the services that the external
auditor may and may not provide to BCE Inc. and its
subsidiaries;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Pre-approving all services to be provided by
the external auditor of BCE Inc. and its subsidiaries;
and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><I>p. 53</I>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Establishing a process outlining procedures
(as part of a separate policy) when hiring current or
former personnel of the external auditor in a financial
oversight role to ensure auditor independence is
maintained.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Auditor Independence Policy is available in the
governance section of BCE Inc.&#146;s website at www.bce.ca.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">9. EXTERNAL AUDITOR SERVICE FEES (BY CATEGORY)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below shows the fees that Deloitte &#038;
Touche LLP, BCE Inc.&#146;s external auditor, billed to BCE
Inc. and its subsidiaries for various services for each
year in the past two fiscal years.
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD nowrap align="left"><I>(in $ millions)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Audit fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>12.2</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Audit-related fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>1.9</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tax fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>1.4</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>15.5</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">16.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">These fees include professional services provided by the
external auditor for the review of the interim financial
statements, statutory audits of the annual financial
statements, the review of prospectuses, review of
financial accounting and reporting matters, other
regulatory audits and filing and translation services.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Audit-related fees</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">These fees relate to non-statutory audits,
Sarbanes-Oxley Act
initiatives, due diligence, pension plan audits and the
review of financial financial accounting and reporting
matters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Tax fees</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">These fees include professional services for
administering our compliance with our conflict of
interest policy for senior management, tax compliance,
tax advice, and assistance with tax audits and appeals.
Since October&nbsp;2005, our external auditor no longer
provides services with respect to compliance with our
conflict of interest policy for senior management.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">These fees include any other fees for permitted services
not included in any of the above-stated categories.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt"><I>p. 54</I>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>SCHEDULE
1A &#151; BCE INC. &#151; AUDIT COMMITTEE CHARTER</I>
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The purpose of the Audit Committee is to assist the
Board of Directors in its oversight of: <BR>A. the integrity
of the Corporation&#146;s financial statements and related
information; <BR>B. the Corporation&#146;s compliance with
applicable legal and regulatory requirements; <BR>C. the
independence, qualifications and appointment of the
shareholders&#146; auditor; <BR>D. the performance of the
Corporation&#146;s shareholders&#146; auditor and internal audit;
and <BR>E. management responsibility for reporting on
internal controls and risk management.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">II. DUTIES AND RESPONSIBILITIES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Audit Committee shall perform the functions
customarily performed by audit committees and any other
functions assigned by the Board of Directors. In
particular, the Audit Committee shall have the following
duties and responsibilities:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>A. Financial reporting and control</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1. On a periodic basis, review and discuss with management and the
shareholders&#146; auditor the following:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">a. major issues
regarding accounting principles and financial statement
presentation, including any significant changes in the
Corporation&#146;s selection or application of accounting
principles, and major issues as to the adequacy of the
Corporation&#146;s internal controls and any special audit
steps adopted in light of material control deficiencies;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">b. analyses prepared by management and/or the
shareholders&#146; auditor setting forth significant
financial reporting issues and judgments made in
connection with the preparation of the
financial statements, including analyses of the effects
of alternative generally accepted accounting principles
methods on the financial statements when such
alternatives have been selected in the current reporting
period;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">c. the effect of regulatory and accounting
initiatives, as well as off-balance sheet structures, on
the financial statements of the Corporation;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">d. the type
and presentation of information to be included in
earnings press releases (including any use of pro-forma
or adjusted non-generally accepted accounting
principles, information).
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2. Meet to review and discuss with management and
the shareholders&#146; auditor, report and, where
appropriate, provide recommendations to the Board of
Directors on the following prior to its public
disclosure:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">a. the annual and interim consolidated
financial statements, the Corporation&#146;s disclosure under
&#147;Management Discussion and Analysis&#148;, Annual Information
Form, earnings press releases, financial information and
earnings guidance provided to analysts and rating
agencies and the integrity of the financial reporting of
the Corporation;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&#151; In addition to the role of the Audit Committee to
make recommendations to the Board of Directors, where
the members of the Audit Committee consider that it is
appropriate and in the best interest of the
Corporation, the interim consolidated financial
statements, the interim Corporation&#146;s disclosure under
&#147;Management Discussion and Analysis&#148; for interim
period and interim earnings press releases and
earnings guidance, may also be approved on behalf of
the Board of Directors by the Audit Committee,
provided that such approval is subsequently reported
to the Board of Directors at its next meeting;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">b. any
audit problems or difficulties and management&#146;s
response thereto, including any restrictions on the
scope of the activities of the shareholders&#146; auditor
or access to requested information and any significant
disagreements with management.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3. Review and discuss reports from the shareholders&#146;
auditor on:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">a. all critical accounting policies and
practices used by the Corporation;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">b. all material
alternative treatments of financial information
within generally accepted accounting principles
that have been discussed with management, including
the ramifications of the use of such alternate
treatments and disclosures and the treatment
preferred by the shareholders&#146; auditor; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">c.
other material written communications between the
shareholders&#146; auditor and management, and discuss
such report with the shareholders&#146; auditor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>B. Oversight of the shareholders&#146; auditor</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1. Be directly responsible for the appointment, compensation, retention and oversight of the work of the shareholders&#146;
auditor and any other auditor preparing or issuing an
audit report or performing other audit services or
attest services for the Corporation or any consolidated
subsidiary of the Corporation, where required and
review, report and where appropriate,
provide recommendations to the Board of Directors on the
appointment, terms and review of engagement, removal,
independence and proposed fees of the shareholders&#146;
auditor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2. Approve in advance all audit, review or attest
engagement fees and terms for all audit, review or
attest services to be provided by the shareholders&#146;
auditor to the Corporation and any consolidated
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><I>p. 55</I>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">subsidiary and any other auditor preparing or
issuing an audit report or performing other audit
services or attest services for the Corporation or any
consolidated subsidiary of the Corporation, where
required.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3. Pre-approve all engagements for permitted non-audit
services provided by the shareholders&#146; auditor to the
Corporation and any consolidated subsidiary and to this
effect may establish policies and procedures for the
engagement of the shareholders&#146; auditor to provide to
the Corporation and any consolidated subsidiary
permitted non-audit services, which shall include
approval in advance by the Audit Committee of all
audit/review and permitted non-audit services to be
provided by the shareholders&#146; auditor to the Corporation
and any consolidated subsidiary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4. Delegate, if deemed appropriate, authority to one or
more members of the Audit Committee to grant
pre-approvals of audit/review/attest and permitted
non-audit services, provided that any such approvals
shall be presented to the Audit Committee at its next
scheduled meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5. Establish policies for the hiring of partners,
employees and former partners and employees of the
shareholders&#146; auditor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">6. At least annually, consider, assess, and report to
the Board of Directors on:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">a. the independence of the
shareholders&#146; auditor, including whether the
shareholders&#146; auditor&#146;s performance of permitted
non-audit services is compatible with the shareholders&#146;
auditor&#146;s independence;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">b. obtaining from the shareholders&#146; auditor a written
statement (i)&nbsp;delineating all relationships between
the shareholders&#146; auditor
and the Corporation; (ii)&nbsp;assuring that lead audit
partner rotation is carried out, as required by law;
and (iii)&nbsp;delineating any other relationships that may
adversely affect the independence of the shareholders&#146;
auditor; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">c. the evaluation of the lead audit
partner, taking into account the opinions of
management and internal audit.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.
At least annually, obtain and review a report by the shareholders&#146; auditor describing:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">a. the shareholders&#146; auditor&#146;s internal
quality-control procedures;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">b. any material issues
raised by the most recent internal quality-
control review, or peer review of the shareholders&#146;
auditor firm, or by any inquiry or investigation by
governmental or professional authorities, within the
preceding five years, respecting one or more
independent audits carried out by the shareholders&#146;
auditor firm, and any steps taken to deal with any
such issues.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8. Resolve any disagreement between management and the
shareholders&#146; auditor regarding financial reporting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">9. Review audit plan with the shareholders&#146; auditor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">10. Meet periodically with the shareholders&#146; auditor in the absence of
management and internal audit.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>C. Oversight of internal audit</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1. Review and discuss with the head of internal audit, report and,
where appropriate, provide recommendations to the Board
of Directors on the following:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">a. the appointment and
mandate of internal audit, including the
responsibilities, budget and staffing of the
Corporation&#146;s internal audit;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">b. discuss with the head
of internal audit the scope and performance of the
internal audit, including a review of the annual
internal audit plan, and whether there are any
restrictions or limitations on internal audit;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">c. obtain
periodic reports from the head of internal audit
regarding internal audit findings, including the
Corporation&#146;s internal controls, and the Corporation&#146;s
progress in remedying any material control deficiencies.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2. Meet periodically with the head of internal audit in
the absence of management and the shareholders&#146; auditor.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>D. Oversight of the Corporation&#146;s internal control system</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1. Review and discuss with management, the shareholders&#146; auditor
and internal audit, monitor, report and, when
appropriate, provide recommendations to the Board of
Directors on the following:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">a. the Corporation&#146;s internal control
system;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">b. compliance with the policies
and practices of the
Corporation relating to business ethics;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">c. compliance
by
Directors, Officers and other management personnel
with the Corporation&#146;s Disclosure Policy; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">d. the
relationship of the Audit Committee with other
committees of the Board of Directors, management and
the Corporation&#146;s consolidated subsidiaries&#146; audit
committees.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2. Review and discuss with the Chief Executive Officer
and Chief Financial Officer of the Corporation the
process for the certifications to be provided in the
Corporation&#146;s public disclosure documents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3. Review, monitor, report and where appropriate,
provide recommendations to the Board of Directors on the
Corporation&#146;s disclosure controls and procedures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4. Establish procedures, for the receipt, retention, and
treatment of complaints received by the Corporation
regarding accounting, internal accounting controls or
auditing matters, including procedures for confidential,
anonymous submission by employees regarding questionable
accounting or auditing matters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5. Meet periodically with management in the absence of
the shareholders&#146; auditor and internal audit.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

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

<P align="left" style="font-size: 10pt"><I>p. 56</I>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>E. Oversight of the Corporation&#146;s risk management</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1. Review, monitor, report and, where appropriate, provide
recommendations to the Board of Directors on the
following:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">a. the Corporation&#146;s processes for
identifying, assessing and managing risk; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">b. the
Corporation&#146;s major financial risk exposures and the
steps the Corporation has taken to monitor and control
such exposures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>F. Oversight of the Corporation&#146;s environmental risks</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1. Review, monitor, report, and where appropriate, provide recommendations to the Board of Directors on the
Corporation&#146;s environmental policy, and environmental
management systems.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2. When appropriate, ensure that the Corporation&#146;s
subsidiaries establish an environmental policy, and
environmental management systems and review and report
thereon to the Board of Directors of the Corporation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>G. Compliance with legal requirements</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1. Review and discuss with management, the shareholders&#146; auditor
and internal audit, monitor, report and, when
appropriate, provide recommendation to the Board of
Directors on the adequacy of the Corporation&#146;s process
for complying with laws and regulations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2. Receive, on a periodic basis, reports from the
Corporation&#146;s Chief Legal Officer, with respect to legal
issues.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">III. EVALUATION OF THE AUDIT COMMITTEE AND REPORT
TO BOARD OF DIRECTORS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A. The Audit Committee shall evaluate and review
with the Corporate Governance Committee of the Board of
Directors, on an annual basis, the performance of the
Audit Committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">B. The Audit Committee shall review and discuss with the
Corporate Governance Committee of the Board of
Directors, on an annual basis, the adequacy of the Audit
Committee charter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">C. The Audit Committee shall report to the Board of
Directors periodically on the Audit Committee&#146;s
activities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">IV. OUTSIDE ADVISORS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Audit Committee shall have the authority to
engage outside counsel and other outside advisors as it
deems appropriate to assist the Audit Committee in the
performance of its functions. The Corporation shall
provide appropriate funding for such advisors as
determined by the Audit Committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">V. MEMBERSHIP
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Audit Committee shall consist of such number
of directors, in no event to be less than three, as the
Board of Directors may from time to time by resolution
determine. The members of the Audit Committee shall meet
the independence, experience and other membership
requirements under applicable laws, rules and
regulations as determined by the Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">VI. AUDIT COMMITTEE CHAIR
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Chair of the Audit Committee shall be
appointed by the Board of Directors. The Chair of the
Audit Committee leads the Audit Committee in all aspects
of its work and is responsible to effectively manage the
affairs of the Audit Committee and ensure that it is
properly organized and functions efficiently. More
specifically, the Chair of the Audit Committee shall:
</DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">
A. Provide leadership to enable the Audit Committee to act
effectively in carrying out its duties and
responsibilities as described elsewhere in this charter
and as otherwise may be appropriate;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">B. In consultation
with the Board Chair and the Chief Executive Officer,
ensure that there is an effective relationship between
management and the members of the Audit Committee;
</DIV>









<DIV align="left" style="font-size: 10pt; margin-top: 6pt">C. Chair meetings of the Audit Committee;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">D. In consultation with the Chief Executive Officer, the Corporate
Secretary&#146;s Office and the Board Chair, determine the
frequency, dates and locations of meetings of the Audit
Committee;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">E. In consultation with the Chief Executive
Officer, the Chief Financial Officer, the Corporate
Secretary&#146;s Office and, as required, other Officers,
review the meeting agendas to ensure all required
business is brought before the Audit Committee to enable
it to efficiently carry out its duties and
responsibilities;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">F. Ensure, in consultation with the
Board Chair, that all items requiring the Audit
Committee&#146;s approval are appropriately tabled;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">G. Ensure
the proper flow of information to the Audit Committee
and review, with the Chief Executive Officer, the Chief
Financial Officer, the Corporate Secretary&#146;s Office and,
as required, other Officers, the adequacy and timing of
materials in support of management&#146;s proposals;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">H.
Report to the Board of Directors on the matters reviewed
by, and on any decisions or recommendations of, the
Audit Committee at the next meeting of the Board of
Directors following any meeting of the Audit Committee;
and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">I. Carry out any special assignments or any
functions as requested by the Board of Directors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><I>p. 57</I>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">VII. TERM
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The members of the Audit Committee shall be
appointed or changed by resolution of the Board of
Directors to hold office from the time of their
appointment until the next annual general meeting of the
shareholders or until their successors are so appointed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">VIII. PROCEDURES FOR MEETINGS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Audit Committee shall fix its own procedure at
meetings and for the calling of meetings. The Audit
Committee shall meet separately in executive session in
the absence of management, internal audit and the
shareholders&#146; auditor, at each regularly scheduled
meeting.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">IX. QUORUM AND VOTING
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Unless otherwise determined from time to time by
resolution of the Board of Directors, two members of the
Audit Committee shall constitute a quorum for the
transaction of business at a meeting. For any meeting(s)
at which the Audit Committee Chair is absent, the Chair
of the meeting shall be the person present who shall be
decided upon by all members present. At a meeting, any
question shall be decided by a majority of the votes
cast by members of the Audit Committee, except where
only two members are present, in which case any question
shall be decided unanimously.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">X. SECRETARY
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Unless otherwise determined by resolution of the
Board of Directors, the Corporate Secretary of the
Corporation or his/her delegate shall be the Secretary
of the Audit Committee.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">XI. VACANCIES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Vacancies at any time occurring shall be filled by
resolution of the Board of Directors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">XII. RECORDS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Audit Committee shall keep such records as it
may deem necessary of its proceedings and shall report
regularly its activities and recommendations to the
Board of Directors as appropriate.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>

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

<P align="left" style="font-size: 10pt"><I>p. 58</I>

<DIV align="left">
<A name="126"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>SCHEDULE
2 &#151; GLOSSARY</I>
</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="100%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>1xRTT </B>means single carrier radio transmission technology;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>3G </B>means third generation;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>360 networks </B>means 360networks Corporation;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>AIF </B>means this Annual Information Form;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Aliant </B>means Aliant Inc.;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Aliant Telecom </B>means Aliant Telecom Inc.;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>AMPs </B>means Administrative Monetary Penalties;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>ATM </B>means asynchronous transfer mode;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>BCE </B>means BCE Inc., its subsidiaries and joint ventures;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>BCH </B>means Bell Canada Holdings Inc.;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>BCI </B>means Bell Canada International Inc.;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>BDI </B>means Bell Distribution Inc.;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>BDUs </B>means broadcasting distribution undertakings;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Bell ExpressVu </B>means Bell ExpressVu Limited Partnership;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Bell Globemedia </B>means Bell Globemedia Inc.;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Bell Mobility </B>means Bell Mobility Inc.;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Cable VDN </B>means Cable VDN Inc.;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Call-Net </B>means Call-Net Enterprises Inc.;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>CanWest </B>means CanWest Global Communications Corp.;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>CATU </B>means the Council of Atlantic Telecommunication Unions;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>CDN </B>means competitor digital network;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>CEP </B>means the Communications, Energy and Paperworkers Union of Canada;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>CGI </B>means CGI Group Inc.;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Charter </B>means The Canadian Charter of Rights and Freedoms;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>CIBC </B>means Canadian Imperial Bank of Commerce;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>CIDA </B>means Canadian International Development Agency;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>CIRB </B>means the Canada Industrial Relations Board;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Cisco </B>means Cisco Systems Canada;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Clearwire </B>means Clearwire Corporation;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>CLEC </B>means competitive local exchange carrier;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Cogeco </B>means Cogeco Cable Inc.;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Computershare </B>means Computershare Trust Company of Canada;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>CRTC </B>means the Canadian Radio-television and Telecommunications Commission;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>CSAs </B>means customer-specific arrangements;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>CTEA </B>means the Canadian Telecommunications Employees&#146; Association;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>CTV </B>means CTV Inc.;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>DBRS </B>means Dominion Bond Rating Service Limited;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Demand Letter </B>means letter of demand dated January&nbsp;30, 2006 from the Independent Communication Dealer Association of Canada and its Bell independent dealers;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>DSL </B>means digital subscriber line;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>DTH </B>means direct-to-home;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Eastlink </B>means Eastlink Communications;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Emergis </B>means Emergis Inc.;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Enterprise </B>means large enterprise;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Entourage </B>means Entourage Technology Solutions Inc.;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>ERIP </B>means Early Retirement Incentive Program;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>EVDO </B>means Evolution, Data Optimized;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Expertech </B>means Expertech Network Installation Inc.;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Fitch </B>means Fitch Ratings Ltd.;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>FTTN </B>means fibre-to-the-node;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>GeSI </B>means Global e-Sustainability Initiative;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Global Compact </B>means the United Nations Global Compact;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>GPS </B>means Global Positioning System;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Group Telecom </B>means GT Group Telecom Services Corporation;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>GSM </B>means Global System for Mobile Communications;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>HD PVR </B>means high-definition personal video recorder;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>ICT </B>means information and communications technology;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Inukshuk </B>means the Inukshuk joint venture;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>IOC </B>means International Olympic Committee;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>IP </B>means Internet Protocol;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>IP-MPLS </B>means IP multi-protocol label-switching;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>IPTV </B>means video over Internet Protocol;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>IP-VPN </B>means IP virtual private networks;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>IS/IT </B>means information systems / information technologies;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>ISPs </B>means Internet service providers;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Kbps </B>means kilobits per second;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Mbps </B>means megabits per second;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>MDU </B>means multiple-dwelling unit;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Microsoft </B>means Microsoft Corporation;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Mixed CSAs </B>means CSA that includes both tariffed and non-tariffed services;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Moody&#146;s </B>means Moody&#146;s Investors Service, Inc.;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>MPLS </B>means multi-protocol label switching;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>MT&#038;T Mobility </B>means MT&#038;T Mobility Inc.;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>MTNs </B>means medium term notes;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>MTS </B>means Manitoba Telecom Services Inc.;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>NAS </B>means network access services;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Nexxlink </B>means Nexxlink Technologies Inc.;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>NLOS </B>means non line-of-sight;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Nortel Networks </B>means Nortel Networks Corporation;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>NorthernTel </B>means NorthernTel, Limited Partnership;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Northwestel </B>means Northwestel Inc.;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>NYSE </B>means New York Stock Exchange;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Panel </B>means Telecom Policy Review Panel;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>PCS </B>means personal communications services;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Primus </B>means Primus Telecommunications Canada Inc.;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>PTT </B>means push-to-talk;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Purchaser </B>means 6223141 Canada Inc.;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>PVRs </B>means personal video recorders;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Rogers </B>means Rogers Communications Inc.;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Rogers Cable </B>means Rogers Cable Inc.;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Rogers Telecom </B>means Rogers Telecom Inc.;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Rogers Wireless </B>means Rogers Wireless Inc.;</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>



</DIV>
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt"><I>p. 59</I>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="100%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>S&#038;P </B>means Standard &#038; Poor&#146;s, a division of The McGraw-Hill Companies, Inc.;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>SAFs </B>means system access fees;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>SaskTel </B>means SaskTel Telecommunications;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>SFUs </B>means single family units;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>SMB </B>means small and medium businesses;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Smiston </B>means Smiston Communications Inc.;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>STB </B>means set-top box;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Teachers </B>means Ontario Teachers Pension Plan;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>T&#233;l&#233;bec </B>means T&#233;l&#233;bec, Limited Partnership;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Teleglobe </B>means Teleglobe Inc.;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Telesat </B>means Telesat Canada;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Telus Communications </B>means Telus Corporation;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Torstar </B>means Torstar Corporation;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>TSX </B>means Toronto Stock Exchange;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>VarTec </B>means VarTec Telecom, Inc. and VarTec Holding Company;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>VAS </B>means value-added services;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>VCIO </B>means virtual chief information officer;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>VDSL </B>means very high bit rate DSL;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Vid&#233;otron </B>means Vid&#233;otron lt&#233;e;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>VoIP </B>means Voice over Internet Protocol;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>VPN </B>means virtual private network;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>WAN </B>means wide area network;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Woodbridge </B>means The Woodbridge Company Limited;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Yellow Pages Group </B>means YPG LP and YPG General Partner Inc.</DIV></TD>
</TR>
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</TABLE>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BCE INC. 2005 ANNUAL INFORMATION FORM
</DIV>


</DIV>
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><IMG src="m30365m3036500.gif" alt="(BELL CANADA ENTERPRISES LOGO)">
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>WWW.BCE.CA</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt">PRINTED IN CANADA
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Exchange Act, the Registrant certifies that it meets all
of the requirements for filing on Form 40-F and has duly caused this annual report to be signed on
its behalf by the undersigned, thereto 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 valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>BCE Inc.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top" style="border-bottom: 1px solid #000000" align="left">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">(signed) Siim A. Vanaselja
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Siim A. Vanaselja</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Chief Financial Officer<BR><BR></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left">&nbsp;</TD>

    <TD colspan="3" align="left">Date:&nbsp;&nbsp;March 10, 2006&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>


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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>LIST OF EXHIBITS<BR>
TO FORM 40-F</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="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Bell Canada Enterprises 2005 Annual Report
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exhibit&nbsp;99.1</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">Consent of Independent Registered Chartered Accountants
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exhibit&nbsp;99.2</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">Comments by Auditors for U.S. Readers on Canada-U.S.
Reporting Differences
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exhibit&nbsp;99.3</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">Certifications of the Chief Executive Officer and the Chief Financial Officer
pursuant to Section&nbsp;302 of the Sarbanes-Oxley Act of 2002
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exhibit&nbsp;99.31</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">Certification of the Chief Executive Officer and the Chief Financial Officer
pursuant to 18 U.S.C. Section&nbsp;1350, as adopted pursuant to Section&nbsp;906 of the
Sarbanes-Oxley Act of 2002
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exhibit&nbsp;99.32</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>m30365exv99w1.htm
<DESCRIPTION>BELL CANADA ENTERPRISES 2005 ANNUAL REPORT
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>


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

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;99.1</B>
</DIV>

<DIV align="left" style="font-size: 14pt; margin-top: 12pt"><I>BELL
CANADA ENTERPRISES 2005 ANNUAL REPORT</I> </DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</I>
</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="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">

<TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#127">About
Forward-Looking Statements</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#128">Non-GAAP
Financial Measures</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#129">About
Our Business</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#130">The
Year at a Glance</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#131">Selected
Annual and Quarterly Information</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#132">Financial Results Analysis</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#133">Financial and Capital Management</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#134">Evaluation of Disclosure Controls and Procedures</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#135">Assumptions Made in the Preparation of
Forward-Looking Statements and Risks that
Could Affect Our Business and Results</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#136">Our Accounting Policies</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>CONSOLIDATED FINANCIAL STATEMENTS</I>
</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="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#137">Management&#146;s Report</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#138">Auditors&#146; Report</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#139">Consolidated Statements of Operations</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#140">Consolidated Statements of Deficit</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#141">Consolidated Balance Sheets</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#142">Consolidated Statements of Cash Flow</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</I>
</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="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="86%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#143">Note 1</A>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#143">Significant Accounting Policies</A>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">64</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#144">Note 2</A>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#144">Segmented Information</A>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">71</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#145">Note 3</A>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#145">Business Acquisitions</A>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">73</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#146">Note 4</A>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#146">Restructuring and Other Items</A>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">75</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#147">Note 5</A>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#147">Other Income</A>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">77</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#148">Note 6</A>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#148">Interest Expense</A>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">77</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#149">Note 7</A>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#149">Income Taxes</A>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">77</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#150">Note 8</A>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#150">Discontinued Operations</A>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">79</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#151">Note 9</A>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#151">Earnings per Share</A>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">80</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#152">Note 10</A>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#152">Accounts Receivable</A>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">81</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#153">Note 11</A>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#153">Other Current Assets</A>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">81</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#154">Note 12</A>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#154">Capital Assets</A>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">82</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#155">Note 13</A>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#155">Other Long-Term Assets</A>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">82</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#156">Note 14</A>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#156">Indefinite-Life Intangible Assets</A>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">82</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#157">Note 15</A>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#157">Goodwill</A>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">83</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#158">Note 16</A>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#158">Accounts Payable and Accrued Liabilities</A>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">83</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#159">Note 17</A>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#159">Debt Due Within One Year</A>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">83</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#160">Note 18</A>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#160">Long-Term Debt</A>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">84</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#161">Note 19</A>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#161">Other Long-Term Liabilities</A>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">85</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#162">Note 20</A>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#162">Non-Controlling Interest</A>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">85</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#163">Note 21</A>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#163">Financial Instruments</A>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">85</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#164">Note 22</A>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#164">Share Capital</A>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">87</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#165">Note 23</A>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#165">Stock-Based Compensation Plans</A>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">88</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#166">Note 24</A>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#166">Employee Benefit Plans</A>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">91</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#167">Note 25</A>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#167">Commitments and Contingencies</A>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">95</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#168">Note 26</A>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#168">Guarantees</A>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">97</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#169">Note 27</A>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#169">Supplemental Disclosure for
Statements of Cash Flows</A>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">98</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#170">Note 28</A>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#170">Reconciliation of Canadian GAAP
to United States GAAP</A>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">98</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">Board of Directors and Executives</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">102</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">Shareholder Information</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">103</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 2</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</I>
</DIV>

<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Please refer to the audited consolidated financial statements when reading this MD&#038;A.
You will find more information about BCE, including BCE Inc.&#146;s annual information form for the year ended December&nbsp;31,
2005 (BCE 2005 AIF) and recent financial reports, on BCE Inc.&#146;s website at <I>www.bce.ca</I>, on SEDAR at <I>www.sedar.com </I>and on EDGAR at <I>www.sec.gov.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In this MD&#038;A, <I>we</I>, <I>us</I>, <I>our </I>and <I>BCE </I>mean BCE Inc., its subsidiaries and joint ventures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All amounts in this MD&#038;A are in millions of Canadian dollars, except where otherwise noted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A statement we make is forward-looking when it uses what we know and expect today to make
a statement about the future. Forward-looking statements may include words such as <I>anticipate</I>,
<I>assumption</I>, <I>believe</I>, <I>could</I>, <I>expect</I>, <I>goal</I>, <I>guidance</I>, <I>intend</I>, <I>may</I>, <I>objective</I>, <I>outlook</I>, <I>plan</I>, <I>seek,
should</I>, <I>strive</I>, <I>target </I>and <I>will</I>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Non-GAAP Financial Measures</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This section describes the non-GAAP financial measures we use in the MD&#038;A to explain our financial
results. It also provides reconciliations of the non-GAAP financial measures to the most comparable Canadian
GAAP financial measures.
</DIV>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This management&#146;s discussion and
analysis of financial condition and results
of operations (MD&#038;A) comments
on BCE&#146;s operations,
performance and financial condition for the
years ended December&nbsp;31,
2005 and 2004.
</DIV>

<DIV align="left">
<A name="127"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>ABOUT FORWARD-LOOKING STATEMENTS</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Securities laws encourage companies
to disclose forward-looking information so
that investors can get a better
understanding of the company&#146;s future
prospects and make informed investment
decisions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCE&#146;s 2005
annual report, including this
MD&#038;A, contains forward-looking
statements about BCE&#146;s
objectives, plans, strategies, financial
condition, results of operations, cash
flows and businesses. These statements are
forward-looking because they are based on
our current expectations, estimates and
assumptions about the markets we operate
in, the Canadian economic environment and
our ability to attract and retain customers
and to manage network assets and operating
costs. All such forward-looking statements
are made pursuant to the &#145;safe harbor&#146;
provisions of the <I>United States
Private Securities Litigation Reform Act of
1995 </I>and of any applicable
Canadian securities legislation, including
the <I>Securities Act of Ontario</I>.
It is important to know that:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
<B>unless otherwise indicated,
forward-looking statements in
BCE&#146;s 2005 annual
report, including in this MD&#038;A,
describe our expectations at March&nbsp;1, 2006</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
our actual results could differ
materially from what we expect if known or
unknown risks affect our business, or if our
estimates or assumptions turn out to be
inaccurate. 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
except as otherwise indicated
by BCE, forward-looking
statements do not take into account the
effect that transactions or non-recurring
or other special items announced or
occurring after the statements are made may
have on our business. Such statements do
not, unless otherwise specified by
BCE, reflect the impact of
dispositions, sales of assets,
monetizations, mergers, acquisitions, other
business combinations or transactions,
asset write-downs or other charges
announced or occurring after
forward-looking statements are made. The
financial impact of these transactions and
non-recurring and other special items can
be complex and depends on the facts
particular to each of them. We therefore
cannot describe the expected impact in a
meaningful way or in the same way we
present known risks affecting our business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
we disclaim any intention and
assume no obligation to update any
forward-looking statement even if new
information becomes available as a result
of future events or for any other reason.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A number of assumptions were made by
BCE in making forward-looking
statements in BCE&#146;s 2005
annual report, including in this
MD&#038;A, such as certain Canadian
economic assumptions, market assumptions,
operational and financial assumptions, and
assumptions about transactions. Certain
factors that could cause results or events
to differ materially from our current
expectations include, among others, our
ability to implement our strategies and
plans, our ability to implement the changes
required by our strategic direction, the
intensity of competitive activity and the
ability to achieve customer service
improvement while significantly reducing
costs. Assumptions made in the preparation
of foward-looking statements and risks that
could cause our actual results to differ
materially from our current expectations
are discussed throughout this MD&#038;A
and, in particular, in <I>Assumptions Made in the
Preparation of Forward-Looking Statements
and Risks that Could Affect Our Business
and Results.</I>
</DIV>

<DIV align="left">
<A name="128"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>NON-GAAP FINANCIAL MEASURES</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">EBITDA
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The term EBITDA does not
have any standardized meaning according to
Canadian generally accepted accounting
principles (GAAP). It is
therefore unlikely to be comparable to
similar measures presented by other
companies. EBITDA is presented
on a consistent basis from period to
period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We use EBITDA, among other
measures, to assess the operating
performance of our ongoing businesses
without the effects of amortization
expense, net benefit plans cost, and
restructuring and other items. We exclude
amortization expense and net benefit plans
cost because they largely depend on the
accounting methods and assumptions a
company uses, as well as non-operating
factors such as the historical cost of
capital assets and the fund performance of
a company&#146;s pension plans. Excluding
restructuring and other items does not
imply they are necessarily non-recurring.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">BELL
CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I></DIV>


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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 3</I>
</DIV>
<DIV align="right" style="font-size: 10pt; margin-top: 6pt">&nbsp;</DIV>

<DIV style="width: 100%; border: 1px solid black; padding: 11px;">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>EBITDA</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 plans cost,
and restructuring
and other items.
</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EBITDA allows us to compare
our operating performance on a consistent
basis. We believe that certain investors and
analysts use EBITDA to measure a
company&#146;s ability to service debt and to
meet other payment obligations, or as a
common measurement to value companies in the
telecommunications industry.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The most comparable Canadian
GAAP financial measure is
operating income. The tables below are
reconciliations of operating income to
EBITDA on a consolidated basis
for BCE and Bell Canada.
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD nowrap align="left">BCE</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Operating income</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4,048</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,894</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Amortization expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,114</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,056</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net benefit plans cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>380</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">256</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Restructuring and other items</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>55</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,224</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>EBITDA</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7,597</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,430</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD nowrap align="left">BELL CANADA</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Operating income</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,755</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,695</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Amortization expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,989</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,962</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net benefit plans cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>389</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">235</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Restructuring and other items</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>54</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,219</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>EBITDA</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7,187</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,111</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">OPERATING INCOME BEFORE
RESTRUCTURING AND OTHER ITEMS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The term operating income before
restructuring and other items does not have
any standardized meaning according to
Canadian GAAP. It is therefore
unlikely to be comparable to similar
measures presented by other companies.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We use operating income before
restructuring and other items, among other
measures, to assess the operating
performance of our ongoing businesses
without the effects of 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. Excluding these items does not
imply they are necessarily non-recurring.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The most comparable Canadian
GAAP financial measure is
operating income. The tables below are
reconciliations of operating income to
operating income before restructuring and
other items on a consolidated basis for
BCE and Bell Canada.
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD nowrap align="left">BCE</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Operating income</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4,048</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,894</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Restructuring and other items</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>55</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,224</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Operating income before
restructuring and other items</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4,103</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,118</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD nowrap align="left">BELL CANADA</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Operating income</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,755</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,695</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Restructuring and other items</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>54</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,219</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Operating income before
restructuring and other items</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,809</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,914</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NET EARNINGS BEFORE
RESTRUCTURING AND OTHER ITEMS AND NET
GAINS ON INVESTMENTS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The term net earnings before
restructuring and other items and net gains
on investments does not have any
standardized meaning according to Canadian
GAAP. It is therefore unlikely
to be comparable to similar measures
presented by other companies.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We use net earnings before
restructuring and other items and net gains
on investments, among other measures, to
assess the operating performance of our
ongoing businesses without the effects of
after-tax restructuring and other items and
net gains on investments. We exclude these
items because they affect the comparability
of our financial results and could
potentially distort the analysis of trends
in business performance. Excluding these
items does not imply they are necessarily
non-recurring.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The most comparable Canadian
GAAP financial measure is net
earnings applicable to common shares. The
following table is a reconciliation of net
earnings applicable to common shares to net
earnings before restructuring and other
items and net gains on investments on a
consolidated basis and per BCE Inc. common share.
</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="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">2004 </TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">TOTAL</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">PER SHARE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">TOTAL</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">PER SHARE</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net earnings applicable to common shares</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,891</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2.04</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,523</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.65</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Restructuring and other items</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>38</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.04</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">772</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.83</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net gains on investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(28</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(0.03</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(423</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.46</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net earnings before restructuring and other items
and net gains on investments</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,901</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2.05</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,872</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.02</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="right" style="font-size: 10pt; margin-top: 6pt">BELL
CANADA ENTERPRISES<I> 2005 ANNUAL REPORT</I></DIV>

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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">
<P><DIV style="position: relative; float: left; width: 4%">
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 4</I>
</DIV>
</DIV>
<P><DIV style="position: relative; float: right; width: 96%">
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</I></DIV>
</DIV>
<BR clear="all"><BR>

<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Free Cash Flow</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We define free cash
flow as cash from
operating
activities after
capital
expenditures, total
dividends and other
investing
activities.
</DIV>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 12pt">FREE CASH FLOW
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The term 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. Free
cash flow is presented on a consistent
basis from period to period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 present free cash flow consistently from
period to period, which allows us to
compare our financial performance on a
consistent basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe that certain investors and
analysts use free cash flow to value a
business and its underlying assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The most comparable Canadian
GAAP financial measure is cash
from operating activities. The table below
is a reconciliation of cash from operating
activities to free cash flow on a
consolidated basis.
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Cash from operating activities</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>5,559</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,443</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Capital expenditures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(3,428</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,319</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total dividends paid</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1,473</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,381</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other investing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">127</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Free cash flow</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>662</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">870</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="129"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>ABOUT OUR BUSINESS</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BCE is Canada&#146;s largest communications
company. Our primary focus is Bell Canada,
which encompasses our core business
operations and represents the largest
component of our business. Bell Canada is
the nation&#146;s leading provider of wireline
and wireless communications services,
Internet access, data services and video
services to residential and business
customers. We report Bell Canada&#146;s results
of operations in four segments. Each
reflects a distinct customer group:
<I>Residential</I>, <I>Business</I>,
<I>Aliant </I>and <I>Other Bell
Canada</I>. All of our other activities
are reported in the <I>Other BCE</I>
segment. Our reporting structure
reflects how we manage our business and how
we classify our operations for planning and
measuring performance. We discuss our
consolidated operating results in this
MD&#038;A, as well as the operating
results of each segment. See Note 2
to the consolidated financial
statements for information about our
segments. We also discuss our results by
product line to give further insight into
these results.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following chart shows the operating
revenues that each segment contributed to
total operating
revenues for the year ended December
31, 2005. Some of
these revenues vary slightly by season.
Business segment revenues tend to be higher
in the fourth quarter because of higher
levels of voice and data equipment sales.
Revenues for the Other BCE
segment tend to be highest in the
fourth quarter and lowest in the third
quarter because of seasonal patterns in
advertising spending in the fall and summer,
respectively. Our operating income can also
vary by season. Residential segment
operating income tends to be lower in the
fourth quarter due to the higher costs
associated with greater subscriber
acquisition during the holiday season.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036501.gif" alt="(PIE CHART)">
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">RESIDENTIAL SEGMENT
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Residential segment (formerly the
Consumer segment) provides local telephone,
long distance, wireless, Internet access,
video and other services to Bell Canada&#146;s
residential customers, mainly in Ontario and
Qu&#233;bec. Wireless services are also offered
in Western Canada and video services are
provided nationwide.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Local telephone and long distance
services are sold under the Bell brand,
wireless services through Bell Mobility
Inc. (Bell Mobility), Internet access under
the Sympatico brand and video services
through Bell ExpressVu.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BUSINESS SEGMENT
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Business segment provides local
telephone, long distance, wireless, data
(including Internet access) and other
services to Bell Canada&#146;s large enterprise
(Enterprise) customers and small and
medium-sized businesses (SMB)&nbsp;in
Ontario and Qu&#233;bec, as well as to business
customers in Western Canada through Bell
West, our division offering competitive
local exchange carrier (CLEC)
services in Alberta and British Columbia.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BELL
CANADA ENTERPRISES<I> 2005 ANNUAL REPORT</I></DIV>


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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 5</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2005, Bell Canada
acquired a number of small, specialized
service companies, allowing us to broaden
our product suite of information and
communications technology (ICT)
solutions (or value-added services
(VAS)) for both Enterprise and
SMB customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Business segment also reflects the
retail portion of the operations of
360 networks Corporation
(360 networks) acquired in
November&nbsp;2004 and operating in
Western Canada as the Group Telecom unit
within Bell Canada.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ALIANT SEGMENT
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Aliant segment provides local
telephone, long distance, wireless, data
(including Internet access) and other
services to residential and business
customers in Atlantic Canada, and
represents the operations of our
subsidiary, Aliant Inc. (Aliant). At
December&nbsp;31, 2005,
Bell Canada owned 53% of
Aliant. The remaining 47% was
publicly held.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">OTHER BELL CANADA SEGMENT
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Other Bell Canada segment includes
Bell Canada&#146;s Wholesale business and the
financial results of T&#233;l&#233;bec Limited
Partnership (T&#233;l&#233;bec), Northern Tel Limited
Partnership (Northern Tel) and Northwestel
Inc. (Northwestel). Our Wholesale business
provides various access and network services
to other resale or facilities-based
providers of local, long distance, wireless,
Internet, data and other telecommunications
services. T&#233;l&#233;bec, Northern Tel and
Northwestel provide telecommunications
services to less populated areas of Qu&#233;bec,
Ontario and Canada&#146;s northern territories.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December&nbsp;31,
2005, Bell Canada owned
100% of Northwestel and
63% of T&#233;l&#233;bec and Northern
Tel, with the remaining 37%
owned by the Bell Nordiq Income Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">FORMATION OF REGIONAL
TELECOMMUNICATIONS SERVICE PROVIDER
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On March&nbsp;7, 2006, BCE Inc. and Aliant announced their intention to create a new regional
telecommunications service provider in the form of an income trust which would combine Bell
Canada&#146;s regional wireline operations with Aliant&#146;s wireline operations. The new trust would also
own Bell Canada&#146;s 63.4% interest in NorthernTel and T&#233;l&#233;bec indirectly held through Bell Nordiq
Group Inc., an indirect wholly-owned subsidiary of Bell Canada.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By combining these assets, we will create a new regional telecommunications service provider of
significant scale and scope that brings a strong focus on customer service and regional needs. The
new trust will be controlled by BCE and will remain integral to Bell Canada&#146;s operations, ensuring
that we retain control of core assets in the most capital efficient way.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The new trust, which will be headquartered in Atlantic Canada, is expected to own approximately 3.4
million local access lines, have approximately 400,000 high-speed Internet subscribers in six
provinces, and manage the provision of all wireline, legacy data and Internet products for all
residential and business customers located in its territory. The transition to the trust will be
seamless for customers as products and services will continue to be sold under the Bell and
Sympatico brands within the trust&#146;s operating territory in Ontario and Qu&#233;bec and under the Aliant
and DownEast brands in Atlantic Canada.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the same time, in partial exchange for its contribution to a subsidiary of the trust, Bell
Canada will acquire Aliant Mobility and Aliant&#146;s DownEast Communications retail outlets.
Furthermore, approximately $1.25&nbsp;billion of Bell Canada debt will effectively be transferred to the
trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon closing, BCE will hold a 73.5% indirect interest in the trust, which it expects to reduce to
approximately 45% through a distribution of trust units to holders of BCE Inc. common shares. At
closing, Aliant&#146;s minority shareholders will exchange their common shares for trust units,
retaining a 26.5% interest in the new trust. Bell Nordiq Income Fund will continue to trade and
operate independently.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCE plans to establish a governance structure for the proposed income trust in line with comparable
current income trust precedents, and will control and consolidate the financial results of the new
trust. BCE will retain the ability to nominate a majority of the board of trustees of the trust
and of the board of directors of the operating entities of the trust as long as it owns a 30 per
cent or more interest in the trust. Also, BCE will have the ability to veto certain actions of the
new trust and its operating entities as long as it owns a 20 per cent or more interest in the new
trust. At closing, Bell Canada and the trust will enter into a number of outsourcing and commercial
agreements pursuant to which Bell Canada will support the operations of the trust. Similar
agreements will be entered into between the trust and Bell Canada to support Bell Canada&#146;s wireless
operations in Atlantic Canada. The transaction is expected to close as early as the third quarter
of 2006
but only once all closing conditions are satisfied and all necessary approvals and consents are
obtained.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">OTHER BCE SEGMENT
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Other BCE segment
includes the financial results of our media
and satellite businesses, as
well as the costs incurred by our corporate
office. This segment includes Bell
Globemedia Inc. (Bell Globemedia) and
Telesat Canada (Telesat).
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 6pt">BELL
CANADA ENTERPRISES<I> 2005 ANNUAL REPORT</I></DIV>

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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<P><DIV style="position: relative; float: left; width: 4%">
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 6</I>
</DIV>
</DIV>
<P><DIV style="position: relative; float: right; width: 96%">
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</I></DIV>
</DIV>
<BR clear="all"><BR>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell Globemedia provides
information and entertainment services to
Canadian customer and access to distinctive
Canadian content. It includes CTV
Inc. (CTV), Canada&#146;s
leading private broadcaster, and <I>The
Globe and Mail</I>, Canada&#146;s leading
national newspaper. At December
31, 2005, BCE Inc. owned 68.5% of Bell
Globemedia. The Woodbridge Company Limited
(Woodbridge) and an affiliate owned the
remaining 31.5%. On December&nbsp;2, 2005, BCE
Inc. announced a transaction in which
it has agreed to sell 20% of
Bell Globemedia to Ontario Teachers Pension
Plan (Teachers), 20% to Torstar
Corporation (Torstar) and an additional
8.5% to Woodbridge, increasing
the stake of Woodbridge and its affiliate to
40%. Following completion of the
transaction, BCE will retain a
20% interest in Bell Globemedia,
which will be accounted for in our results
using the equity method of accounting. The
transaction, which is subject to a number of
approvals and closing conditions, including
approval by the CRTC and the
Competition Bureau, as well as other closing
conditions that are customary in this type
of transaction, is expected to close in late
2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Telesat is a pioneer in satellite
communications and systems management and is
an experienced consultant in establishing,
operating and upgrading satellite systems
worldwide. BCE Inc. owns
100% of Telesat. On February&nbsp;1, 2006, BCE
Inc. announced its intention to
implement a recapitalization and launch a
public offering of a minority stake of
Telesat in the second half of
2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA PRODUCTS AND SERVICES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Bell Canada is our primary focus and
the largest component of our business. It
has six major lines of business:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> local and access services<BR>
<B>&#149;</B> long distance services<BR>
<B>&#149;</B> wireless services<BR>
<B>&#149;</B> data services<BR>
<B>&#149;</B> video services<BR>
<B>&#149;</B> terminal sales and other.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Local and Access Services
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Bell Canada operates an extensive local
access network that provides local
telephone services to business and
residential customers. The 12.6
million local telephone lines, or
network access services (NAS),
we provide to our customers are key in
establishing customer relationships and are
the foundation for the other products and
services we offer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Local telephone service is the main
source of local and access revenues. Other
sources of local and access revenues
include:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
VAS, such as call
display, call waiting and voicemail
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
services provided to
competitors accessing our local network
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> connections to and from our
local telephone service customers for
competing long distance companies<BR>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
subsidies from the National
Contribution Fund to support local service
in high-cost areas.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rates for local telephone and
VAS services in our incumbent
territories are regulated by the
CRTC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The local telephone services market
became increasingly competitive in
2005 as the major cable
operators in our Qu&#233;bec and Ontario markets
began to offer low-priced cable telephony
services. In 2005, we launched
our own voice over Internet protocol
(VoIP) service for
residential customers under the name Bell
Digital Voice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Long Distance Services
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We supply long distance voice services to
residential and business customers. We also
receive settlement payments from other
carriers for completing their customers&#146;
long distance calls in our territory.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prices for long distance services have
been declining since this market was opened
to competition. In 2005, the
long distance services market became more
competitive with the emergence of cable
telephony and the continuing impact of
non-traditional suppliers (i.e., prepaid card, dial-around and other
VoIP providers).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Wireless Services
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We offer a full range of wireless
communications services to residential and
business customers, including cellular,
personal communications services
(PCS)&nbsp;and paging. PCS
customers can get wireless access to
the Internet through our Mobile Browser
service or send text messages. We also
provide VAS, such as call
display and voicemail, data applications
including e-mail and video
streaming, and roaming services with other
wireless service providers. Customers can
choose to pay for their cellular and
PCS services through a monthly
rate plan (postpaid)&nbsp;or in advance
(prepaid). At the end of 2005,
we had approximately 5.8&nbsp;million
cellular, PCS and paging
customers.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The wireless division of each of our
incumbent telephone companies provides
wireless communications in its home
territory, except for Bell Mobility, which
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BELL
CANADA ENTERPRISES<I> 2005 ANNUAL REPORT</I></DIV>

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

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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 7</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">provides these services in its home territory, as well as in Alberta and British Columbia.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our wireless network provides voice
services as well as data services, at
typical transmission speeds of approximately
120 kilobits per second (Kbps)
delivered over our existing single-carrier
radio transmission technology
(1xRTT) network. In
2005, we launched Canada&#146;s first
Evolution, Data Optimized (EVDO)
wireless data network in Toronto and
Montr&#233;al. EVDO technology is the
third generation (3G) of
wireless networks delivering average data
download speeds of 400&#150;700 Kbps
with peaks of up to 2.4 megabits
per second (Mbps). We expect to deploy
EVDO in other major urban
centres across Canada in 2006.
At the end of 2005, our wireless
network covered:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> 95% of the population in Ontario and Qu&#233;bec
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> approximately 90% of the population in Atlantic Canada
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the major cities in the provinces of Alberta and British Columbia.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2005, we introduced two
new brands geared towards the key youth
market segment. In February, we launched
our joint venture with the Virgin Group to
offer wireless services under the Virgin
brand. In July, Bell Mobility introduced
Solo Mobile, a new brand featuring
custom built services and unique
applications such as a nationwide
pay-per-use push-to-talk (PTT)
service and the choice of postpaid or
prepaid options. We are the first Canadian
wireless operator to actively market
PTT to the consumer youth
segment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Data Services
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">High-speed Internet access service provided
through DSL technology for
residential and business customers,
particularly SMB, is a growth
area for Bell Canada. At the end of
2005, we had approximately
2.2&nbsp;million high-speed Internet
customers.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We expanded our DSL
high-speed Internet footprint in
Ontario and Qu&#233;bec to 85% of
homes and business lines passed at the end
of 2005, compared with 83% at
the end of 2004. In Atlantic
Canada, DSL high-speed Internet
was available to 81% of homes
and 85% of businesses at the
end of 2005, compared with
72% and 79%,
respectively, at the end of
2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During 2005, we enhanced
our suite of DSL services by
upgrading our Sympatico DSL
Basic offering from 256
Kbps to 512 Kbps and by
launching a Basic Lite DSL
service at 128 Kbps. In
addition, we increased our broadband access
speed for ultra high-speed users to 5 Mbps from
4 Mbps for residential customers and to
6 Mbps from 4 Mbps for SMB customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2005, we became a
partner in the Inukshuk Joint Venture
(Inukshuk). Inukshuk was launched in
2003 to provide wireless
high-speed Internet access across Canada
using spectrum in the 2.5 GHz
range. With Inukshuk, we expect to have the
capability to provide broadband connections
to virtually all of our customers, either
through DSL or through a fixed
wireless platform, once the network is
fully deployed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We offer a full range of data services
to business customers, including Internet
access, Internet protocol (IP)
based services, ICT solutions
and equipment sales. While we still offer
legacy data services such as frame relay
and asynchronous transfer mode
(ATM), we continued the process
of discontinuing the sale of legacy data
services other than to current customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Video Services
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We are Canada&#146;s largest digital television
provider, broadcasting nationally more than
400 all-digital video and audio
channels and a wide range of domestic and
international programming. We also offer
hardware, including personal video recorders
(PVRs), interactive TV
services and the most extensive
line-up of high definition channels in
Canada. We currently distribute our video
services to more than 1.7
million customers through Bell
ExpressVu and Bell Canada in one of three
ways:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
<I>direct-to-home (DTH)&nbsp;satellite</I>&#151; we have been offering DTH
video services nationally since 1997. We use four satellites:
Nimiq 1, Nimiq 2, Nimiq 3 and Nimiq 4-Interim, which was added in the first quarter of
2006 to improve signal strength and
reliability while increasing capacity. Telesat, a wholly-owned subsidiary of BCE
Inc., operates or directs the operation of these satellites.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
<I>very high bit rate DSL (VDSL)</I>&#151; this allows us to expand our
reach to the multiple-dwelling unit (MDU)&nbsp;market. By the end of
2005, we had signed access agreements with 757 buildings and had
provisioned 464 of them.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
<I>hybrid fibre co-axial cable</I>&#151; on August&nbsp;2, 2005, we
acquired the residential assets of Cable VDN Inc. (Cable VDN), a
Montr&#233;al-based cable company selling residential analog and digital TV. Cable
VDN has over 12,500 residential cable subscribers in the Montr&#233;al
area, representing an approximate 40% penetration within its current
footprint. We believe that Cable VDN provides us with a more cost-effective
way of addressing the MDU market in Montr&#233;al, compared to VDSL,
allowing for quicker access to smaller, harder to reach MDUs.
</DIV>
<DIV align="right" style="font-size: 10pt; margin-top: 6pt">BELL
CANADA ENTERPRISES<I> 2005 ANNUAL REPORT</I></DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 8 MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</I>
</DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2006, we intend
to continue investing in our IPTV
(video over Internet protocol)
platform that will target urban households
in markets within the Qu&#233;bec City to
Windsor corridor. In 2004, we
received CRTC approval of our
broadcast licence application to deliver
video services terrestrially to single
family units (SFUs). We started
technical trials of our IPTV
service in 2005 and
expect to begin customer trials in
2006. IPTV will
offer unprecedented interactivity to
experience a variety of digital content on
your television.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signal piracy continues to be a major
issue facing all segments of the Canadian
broadcasting industry. During
2005, we completed the
deployment of a new conditional access
system (our card swap program) commenced in
the previous year. All new customers since
August&nbsp;2004 have been supplied
with the new system and, over the past year,
we have been replacing the old smart cards
of all remaining customers. As of July
2005, customers can only receive
DTH video and audio services
over the new conditional access system. In
addition to the card swap, we continued our
ongoing efforts against television signal
theft, including sophisticated set-top box
(STB)&nbsp;tracking systems and
specific point-of-sale practices such as
obtaining customer photo identification and
credit card information, aggressive measures
to investigate and initiate legal action
against persons engaged in the manufacture,
sale and distribution of signal theft
technology, and enforcement of policies with
authorized retailers to combat piracy,
including a zero tolerance policy for
activities related to signal theft.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Terminal Sales and Other
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This category includes revenues from a
number of other sources, including:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
renting, selling and maintaining business terminal equipment
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
wireless handset and video STB sales
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
network installation for third parties
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
IT services provided by Aliant
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">DISCONTINUED OPERATIONS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the past two years we have
disposed of, or approved formal plans for
disposing of, a number of our businesses,
including:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> our decision on December&nbsp;16, 2005 to sell our investment in CGI Group Inc. (CGI)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
Emergis Inc.&#146;s (Emergis) US Health operations, which were sold in March&nbsp;2004
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Emergis, which was sold in May&nbsp;2004.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our decision to sell our 29.8%
stake in CGI was made
following a review of our investment, which
determined that it was no longer
strategically essential for BCE
to hold an equity interest in
CGI. On the closing date of the
transaction (January&nbsp;12,
2006), we sold 100
million Class&nbsp;A shares to CGI
for cash proceeds of $859
million. We intend to dispose of our
remaining 28.3&nbsp;million Class&nbsp;A
shares (representing 8.6% of
the outstanding shares of CGI).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All of these business dispositions
were treated as discontinued operations. We
therefore restated the financial results of
all previous years to exclude the results
of these businesses. They are presented
separately in the consolidated financial
statements and are discussed separately in
this MD&#038;A.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">OUR STRATEGIC PRIORITIES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We continued to experience profound
changes in our traditional telephone
business in 2005. This was
driven primarily by the ongoing shift to
IP and wireless technologies and
new competitive challenges due to the
emergence of cable telephony.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our strategy is to deliver unrivalled
integrated communication services to
customers, efficiently and cost-effectively.
Over the past two years, we have laid the
operational foundations for the
transformation of the company by returning
Bell Canada to its core communications
business. We have also made significant
progress on our three key pillars that
support our strategy:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1. Enhance the customer
experience by providing superior products
and services that build loyalty
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2. Provide abundant and
reliable bandwidth to enable the delivery
of next-generation services
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3. Create next-generation
services to drive ongoing profitable
growth.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advancing this strategy requires us to
transform our cost structure and the way
that we serve our customers. These are the
guiding principles at the core of Galileo,
our company-wide program designed to save
costs by simplifying and enhancing the
customer experience. Resetting the cost base
should allow us to expand our growth
services in the future and drive
profitability as we face ongoing erosion of
our traditional voice and data businesses.
In transforming the cost structure,
we are developing a new financial
foundation that aims to improve margins,
increase profitability and generate higher
levels of free cash flow, creating value for
all our stakeholders. We have outlined four
operating priorities for 2006 to
help us achieve this objective:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL
CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>

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

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<DIV align="right" style="font-size: 10pt; margin-top: 6pt"><I>p. 9</I></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.
<I>Service</I> &#150; we are
determined to ensure consistently high
levels of service, which should lead to
corresponding high levels of customer
loyalty
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2. <I>Customer retention &#150; </I>we
are focusing our retention efforts on
high-value customers and households with
multiple products
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.
<I>Growth</I> &#150; we are growing
next-generation services revenue with the
objective that they will represent the
majority of Bell Canada&#146;s revenues by the
end of 2006
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.
<I>Cost</I> &#150; we are effectively
resetting the cost base and developing new
sourcing and process redesign initiatives
in order to achieve recurring cost savings.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2005, we made
significant progress in building each of
our three key strategic pillars.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1. Enhancing customer experience by providing superior products and services that
build loyalty
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">At the end of 2005, over
22% of the total households in
our Ontario and Qu&#233;bec footprint subscribed
to three or more products (a combination of
local wire-line, Internet, video and long
distance services). We believe our
multi-product household strategy is
effective in fostering customer loyalty and
minimizing NAS losses to the
competition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We continued to migrate customers in
our Residential segment to our One Bill
platform. At the end of 2005,
2.3&nbsp;million customers were
enjoying the benefits of a single bill for
their wireline, Internet and video
services, representing a more than two-fold
increase since the end of 2004.
Reducing the number of bills not only
improves the customer experience, but also
lowers costs since we issue fewer invoices.
At the end of the year, we started
migrating Bell Mobility customers who
already receive a single invoice for their
other Bell Canada services to One Bill.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We launched two initiatives to enhance
customer support for our Sympatico Internet
customers:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Emily, an online virtual
customer service agent who interacts with
customers needing help
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Internet Care, an online and
phone support service for popular
Internet-related products.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We began the rollout of OrderMax, our
order entry tool that allows customers to
order any Bell Canada product from any
channel, through our customer service
agents. As at the end of 2005,
over 50% of our customer service
agents had access to the OrderMax tool, with
rollout continuing in 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We launched the beta site of our new
Bell.ca website. The new website provides
customers with:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149; </B>a simplified and consistent page layout
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149; </B>one process for shopping for any or all of our products
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149; </B>an improved search engine
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149; </B>easy access to online bills.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We continued to make progress on
moving our core traffic to a national
IP multi-protocol
label-switching (IP-MPLS)
network. At the end of 2005,
78% of the migratable traffic
on our core network was
IP-based, exceeding our
year-end target of 75%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As part of our shift to
IP, we continued the process of
rationalizing our legacy data services and
stopped selling 28 of these
services in 2005. We have
discontinued 47 legacy data
services since we started this initiative
in 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The move to IP continued
in 2005 with 57
Enterprise customers contracted to
implement IP virtual private
networks (IP-VPN), bringing the
total number of Enterprise customers
implementing IP-VPN networks to
143.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the end of 2005,
656 Enterprise customers were
enrolled in Service Promise, our commitment
to provide customers with a clearly defined
and consistent level of service for
delivering connectivity services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2006, we intend to
continue improving service and enhancing
the customer experience. In particular, we
plan to:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> ensure consistency of service to all of our customers by improving our service
provisioning and assurance both in our call centres and in our field operations
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> offer the simplicity of a one-contact approach through initiatives such as One
Bill and online self-serve tools that allow problems to be registered, ticketed and
tracked
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> deliver improved service commitments and service levels by significantly reducing
the number of
missed appointments because of process issues, and by shortening repair times
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> offer an end-to-end service desk for our Enterprise customers that includes both
connectivity and ICT services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2. Deliver abundant bandwidth to enable next-generation services
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We continued our rollout of
fibre-to-the-node (FTTN)&nbsp;by
deploying another 1,672
neighbourhood nodes in
2005. This increased the total
number to 2,048, exceeding our
objective to deploy more than 2,000
nodes by the end of the year.
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL
CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 10 MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We launched Canada&#146;s first
EVDO wireless data network with
service available in Montr&#233;al, Toronto,
Vancouver, Calgary and Edmonton. EVDO
enables a new generation of
sophisticated wireless data solutions, and
increases the speed and potential for
current tools such as e-mail, file
downloads, instant messaging, streaming
video and games.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We announced an alliance with Rogers
Communications Inc. (Rogers) to jointly
build and manage a national wireless
broadband network through Inukshuk.
Inukshuk will give subscribers wireless
access to the Internet and enable a host of
voice, video streaming and data
applications from wherever the service is
available. The network footprint is
expected to reach more than two-thirds of
Canadians in less than three years,
covering over 40 cities and approximately
50 rural and remote communities that are
not currently served.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2006, we will continue
to expand the reach and speed of DSL
service through our FTTN
rollout, which will enable speeds of
up to 26 Mbps. At the same
time, work will proceed on Inukshuk to
build a fixed wireless broadband access
network and create a network footprint
within three years. We anticipate that by
2008, we will have the
capability to provide broadband connections
to virtually all of our customers, either
through DSL or through our
fixed wireless platform. We also plan to
implement EVDO across most of
our wireless coverage areas.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">3. Create next-generation services to drive ongoing profitable growth
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our Residential segment introduced Bell
Digital Voice in Toronto and Montr&#233;al. The
new VoIP service,
which is the first of its kind in Canada,
uses existing phone lines to provide
customers with advanced Internet-based
calling features along with the reliability
of Bell Canada&#146;s phone network.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell Mobility launched a number of
applications designed to drive growth,
including:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149; </B>10-4, a new service that allows customers to use their cell phones as
walkie-talkies to communicate with up to five other users at the push of a button
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149; </B>True Tones, a monthly service that enables customers to download actual songs and
ringtones
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149; </B>Seek &#038; Find, a wireless location-based system that allows subscribers to locate
multiple individuals away from their homes or offices
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149; </B>MobiTV, a video application that allows customers with specific mobile
handsets to access a variety of video channels
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149; </B>MSN Messenger, an instant messaging service that allows customers to
transmit in real-time text
messages to other mobile phones or to PCs on their contact list over the
Internet.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell Mobility also introduced its first
handset compatible with Global System for
Mobile Communications (GSM)&nbsp;and
launched Canada&#146;s first flat per-minute rate
billing service for global roaming on
GSM networks in up to 150
countries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell ExpressVu introduced a number of
new products and services, including:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149; </B> a dual-tuner, high-definition personal video recorder
(HD-PVR) that allows customers to pause live television, as well
as record, replay, stop, fast forward and fast rewind HD and standard
definition programming on up to two TVs in the home through a single receiver.
Our Residential Internet service was enhanced by the introduction of new services at
Sympatico including:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149; </B>Sympatico/MSN Video channel, a new service that allows customers to
create customized playlists of streaming video clips
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149; </B> Kidsmania, a new educational online service for children aged 3 to
12, offering more than 50 interactive games and activities.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our SMB unit launched:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149; </B>PC Care and Network Care, two virtual chief information officer (VCIO)
solutions that provide software and technical support for customers
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149; </B>Business IP Voice, a service designed to provide innovative
Internet-based technology solutions that deliver business advantages usually only
available to large corporations, such as a dedicated, reservation-free conferencing tool
and the ability to forward a voice-mail message as an attachment to an e-mail account
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149; </B>GoTrax, a low-cost remote wireless tracking system that allows assets to be
tracked in places where traditional Global Positioning System (GPS)&nbsp;signals do
not work.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Enterprise unit sold 275,000
IP-enabled lines on customer premises
equipment (CPE)&nbsp;by the end of
the year, which is a 90%
increase over 2004 .
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Business segment launched Global
VoIP solution for
Canadian multinationals, a managed IP
service that can provide unlimited,
international intra-company voice services
at a flat rate by interconnecting
geographically dispersed customer locations
over a virtual private IP
network.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2006, we plan to
introduce EVDO-enabled data
applications and other services to our
wireless customers, as well as expand our
residential broadband services to help
customers manage information needs
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL
CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>


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

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

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 11</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">in their home using our
Sympatico-MSN portal. We also
plan to exploit our IP
capability to achieve
interoperability between wireless and
wireline platforms. In our video unit, we
intend to drive future growth through
investing in new growth areas, such as
IPTV and HD
programming, in our goal to become
the leader in on-demand television.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the Business segment, our Enterprise
unit will continue its efforts to expand its
ICT solutions by focusing on the
financial services, health-care and
government sectors. We will also strengthen
our capabilities in network security. Our
SMB unit will continue to focus
on being the premium solutions provider for
VAS among small and medium-sized
businesses in Canada with the objective of
increasing customers&#146; perception of Bell
Canada as their VCIO.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Transforming Our Cost Structure
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Overall, our various Galileo initiatives
resulted in cost reductions of $524
million in 2005, which
was consistent with our run-rate savings
target of $500 to $600
million. These cost savings were
mainly from:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
the 2004 employee departure program
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
lower procurement costs
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
call centre efficiencies and optimization initiatives
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
eliminating network elements and standardizing core operating processes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2006, we will continue
to transform our cost structure to support
our operations. Enhancements the customer
experience and cost structure will be gained
primarily through a redesign of our
processes and increased controls over
discretionary spending.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accordingly, we have broadened our
Galileo program for 2006 to
address our annual procurement spend of
$8.5&nbsp;billion. Our goal is to
transform the supply chain to reduce the
amount we spend each year on delivering
service to customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Galileo will also continue to address
process transformation within the company
to lower costs and improve customer
experience. Our process transformation
initiatives will include:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> continuing to actively encourage customers to adopt new IP-based
services
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
developing end-to-end process improvements for sales and ordering, installation,
billing, collections, and maintenance and repair, which will allow us to deliver our
products and services more efficiently
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
optimizing management support to reduce costs in our corporate and support
functions.
</DIV>

<DIV align="left">
<A name="130"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I> YEAR AT A GLANCE</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our results demonstrate the solid
progress we made in 2005 towards
achieving our strategic objectives. Although
the pace of competition accelerated steadily
throughout the year, particularly as a
result of the emergence of cable telephony,
we continued to execute on our plan to
mitigate the impact of this new, more
competitive telecommunications landscape.
Accordingly, we focused further on
profitably growing our wireless, video and
high-speed Internet businesses, which helps
lay an important foundation for the future
growth of the company. We also continued to
successfully execute our multi-product
household consumer strategy. By the end of
2005, nearly 60% of
the households in our Ontario and Qu&#233;bec
footprint subscribed to two or more
products, while over 22%
subscribed to three or more products.
Our Business segment made steady progress
throughout the year on its IP
strategy by leading Bell Canada in the
shift towards new growth services, helping
to drive its transition towards becoming a
leader in ICT. By the end of
2005, revenues from growth
services (consisting mainly of wireless,
video and data-related products such as
high-speed Internet) accounted for 47%
of Bell Canada&#146;s total revenues for
the year, exceeding our target of
45%. Moreover, we also responded
to the mounting competitive challenges by
proactively taking the lead to deliver
unmatched features and reliability for our
residential and business customers with the
launch of next-generation services such as
Bell Digital Voice.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to alleviate the pressure on
operating margins from the expected erosion
in our legacy wireline business, we made
significant strides in transforming our
cost structure in 2005. Under
Galileo, we continued to deliver
significant cost savings by improving
processes, reviewing procurement activities
and eliminating work. Our various
initiatives allowed us to reduce costs by
$524&nbsp;million, which was
consistent with our run-rate savings target
of $500 to $600
million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We also stepped up efforts to secure
customer relationships and improve service.
Although we faced a number of customer
service challenges brought about by some
residual impacts from our wireless billing
system migration last year and a four-month
labour dispute in Ontario with technicians
of Bell Technical Solutions Inc. (formerly
Entourage Technology Solutions Inc.
(Entourage)), we substantially resolved
these issues by the end of the third
quarter, allowing us to clear the backlog of
orders, improve efficiency and deal
with customer issues more promptly.
</DIV>

<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>The Year at a Glance</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This section
reviews the key
measures we use to
assess our
performance and how
our results in
2005
compare to our
results in
2004.
</DIV>

</DIV>
<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL
CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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






<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 12 MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In late 2005, we
completed two important steps in our
ongoing efforts to reshape the company&#146;s
asset portfolio and bring greater focus to
our core businesses by establishing the
framework for disposing of our entire
interest in CGI and reducing
our interest in Bell Globemedia to
20%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In our Residential segment, revenue
growth was fuelled by the strength of our
growth services as we continued to execute
on our strategy of securing multi-product
households to drive customer loyalty and
generate higher revenue per household. This
growth reflected increased subscriber
acquisition in our growth services and
higher average revenue per user
(ARPU), particularly for video,
offset partly by an accelerated decline in
legacy wireline revenues.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In our Business segment, increased
sales of IP-based connectivity
and ICT solutions to our
Enterprise and SMB customers
and improved wireless results drove revenue
growth in 2005. This positive
trend now has contributed to six
consecutive quarters of improved revenue
growth, despite increased competitive
pressures and lower demand for legacy
wireline services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In our Aliant segment, continued
strong growth in wireless and Internet
services, as well as a recovery from the
2004 labour disruption, offset
declines in other areas due to the impact
of competition, wireless and Internet
substitution and regulatory restrictions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Within the Other Bell Canada segment,
despite a challenging market for our
Wholesale business, revenues grew as a
result of the acquisition of the operations
of 360 networks in November
2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the Other BCE segment,
Bell Globemedia delivered better revenue
and operating performance compared with
last year, which was driven largely by
higher television advertising revenue,
reflecting strong television ratings and
improved subscription revenues. Telesat
also had a strong year, reflecting growth
in Kaband revenues on its Anik F2
satellite, revenue gains from the
installation and maintenance of an
Interactive Distance Learning network, and
the positive impact from its acquisition of
The SpaceConnection, Inc. (SpaceConnection)
in January&nbsp;2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">CUSTOMER CONNECTIONS
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">DECEMBER 31, 2005</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">NET ACTIVATIONS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">CONNECTIONS</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">NAS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(324</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,581</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Digital equivalent access lines</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>699</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,034</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">High-speed Internet</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>387</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,195</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dial-up Internet</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(157</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">586</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wireless</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>516</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,441</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Paging</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(80</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">347</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Video</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>224</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,727</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,265</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,911</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036502.gif" alt="(BAR GRAPH)">
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The total number of customer
connections increased 4.7%, or
1.3&nbsp;million, to 27.9
million at December&nbsp;31,
2005, compared with December&nbsp;31,
2004.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Network Access Services
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NAS in service declined by
324,000 in 2005, or
by 2.5%, representing a higher
rate of decline compared with a decrease of
1.1% in 2004. The
accelerated rate of erosion reflects an
increasingly competitive environment as the
major cable operators in our Qu&#233;bec and
Ontario markets began to offer low-priced
cable telephony services. This decline was
partly offset by the introduction of our
new Bell Digital Voice service and higher
demand for access lines from Shaw
Communications to implement
VoIP services in
Western Canada.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL
CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>

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

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

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 13</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">High-Speed Internet
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We added 387,000 or 21%
more net new high-speed Internet
customers in 2005, increasing
our customer base to 2,195,000
and exceeding our subscriber growth
target of 15% to 20%
for the year. This was 10.6%
higher than the 350,000
net new activations in
2004, mainly because of our
Basic Lite product and higher net
activations at Aliant.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Wireless
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our total cellular and PCS
subscriber base grew by 516,000
in 2005, or by
10.5%, to
5,441,000, which was consistent
with our guidance for the year. Gross
activations were at a record high in
2005, resulting in net
activations that were similar to 2004
even though the overall churn rate
increased from 1.3% in
2004 to 1.6% in
2005.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Video
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We gained significant momentum in our video
business in 2005, increasing
the subscriber base by 14.9% to
1,727,000 customers at the end
of the year, which was at the upper end of
our guidance range of 10% to
15%. We activated service for
224,000 new subscribers, almost
doubling the growth we experienced in
2004. Our churn rate also
decreased to 0.9% from
1.0% in 2004,
because of our focus on customer retention,
as well as an increase in the percentage of
customers on long-term contracts.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">OPERATING REVENUES
</DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036503.gif" alt="(BAR GRAPH)">
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We reached $19,105
million in revenues in
2005, an increase of 4.0%
over 2004. This reflects
higher revenues across all our segments and
met our target of matching or exceeding
GDP growth.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues at Bell Canada grew by
2.8%. This was driven primarily
by the Business segment, where continued
wireless strength, growth of solutions from both business
acquisitions and organic growth, as well as
focused execution of our VCIO
strategy in SMB, led to
improved top-line results.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Residential segment delivered
solid revenue growth as a result of the
performance of its video, wireless and
Internet services, while Aliant revenues
also increased due in part to its recovery
from a labour disruption in
2004. These results were
achieved despite a continuing decline
in revenues from our legacy wire-line
business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Other BCE segment also
contributed to the growth in revenue,
mainly because of 9.5% growth
at Bell Globemedia and 31%
growth at Telesat.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">OPERATING INCOME AND EBITDA
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036504.gif" alt="(BAR GRAPH)">
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Operating income at BCE for 2005 was $4,048&nbsp;million, or
$1,154&nbsp;million higher than in 2004, due to restructuring and other items of
$1,224&nbsp;million recorded in the previous year related mainly to the employee departure
program in 2004. The results for 2005 reflect restructuring and other items
of $55&nbsp;million associated with new restructuring initiatives for involuntary employee departures,
as well as the relocation of employees and closing of real estate facilities related to last
year&#146;s employee departure program.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income before restructuring and other items was
$4,103&nbsp;million, or $15&nbsp;million lower than 2004. Despite an
increase in revenues across all segments, cost savings from the Galileo program and recovery from
the 2004 labour disruption at Aliant, operating income was negatively affected by a
variety of factors, including:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
the higher cost of acquiring substantially more wireless subscribers
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
the CRTC&#146;s decision on Competitor Digital Network Services (CDN)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
continued pressure on operating margins from the ongoing transformation of our
product mix towards growth services
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
the cost of restoring customer service levels following the settlement of the
Entourage labour dispute in July
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
the impact of higher net benefit plans cost and higher amortization expense for
the year.
</DIV>
<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Operating
Income and EBITDA <BR><BR>
EBITDA margin</I> is EBITDA divided by
operating revenues.
</DIV>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL
CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>


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

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



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 14 MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</I>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Capital
Expenditures</I></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Capital intensity</I>
is capital
expenditures
divided by
operating revenues.
It is a key
financial measure
that we use to
assess our
performance and
that of our
business units.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell Canada&#146;s operating income
was $3,755&nbsp;million, or
$1,060&nbsp;million higher than
2004, primarily because of the
charges recognized last year for the
employee departure program. Operating
income before restructuring and other items
was $3,809&nbsp;million, or
$105&nbsp;million lower than
2004, for the same reasons
referred to above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EBITDA at BCE
was $7,597&nbsp;million in
2005, an increase of $167
million or 2.2% over
2004. This is the result of
improved performance at Bell Canada, Bell
Globemedia and Telesat.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EBITDA for Bell Canada was
$7,187&nbsp;million, or 1.1%
higher than 2004,
primarily due to increases in our Business
segment and at Aliant, which were partly
offset by decreases in our Residential and
Other Bell Canada segments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EBITDA margins for
2005 were 39.8% at
BCE and 41.7% at
Bell Canada, both 0.7
percentage points lower than
2004. The year-over-year
declines reflected operating cost
pressures, including:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
higher costs for acquiring wireless subscribers
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
continued erosion of high-margin legacy voice and data services in all our segments
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
the CRTC&#146;s CDN decision
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
the costs to restore service levels once the labour dispute at Entourage was resolved.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The impact of these elements on
EBITDA margins was largely
offset by the cost savings achieved through
Galileo.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">NET EARNINGS AND EARNINGS
PER SHARE (EPS)
</DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036505.gif" alt="(BAR GRAPH)">
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In 2005, net earnings
applicable to common shares were
$1,891&nbsp;million, or $2.04
per common share. This was 24%
higher than net earnings of
$1,523&nbsp;million, or $1.65
per common share, in
2004. Included in earnings this
year was a net charge of
$10&nbsp;million from restructuring
and other items and net gains on
investments, compared with a net charge of
$349&nbsp;million for the previous
year. Net earnings before restructuring
and other items and net gains on
investments of $1,901&nbsp;million,
or $2.05 per common share, were
up $29&nbsp;million, or $0.03
per share. This was 1.5%
higher than in 2004. The
improvement in EPS before restructuring and
other items and net gains on investments
can be attributed to higher EBITDA
combined with the impact from the
income tax loss monetization program
between Bell Canada and Bell Canada
International Inc. (BCI)&nbsp;and
net income tax savings. These factors more
than offset the increase in net benefit
plans cost and amortization expense.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">CAPITAL EXPENDITURES
</DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036506.gif" alt="(BAR GRAPH)">
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Capital expenditures for BCE
were $3,428&nbsp;million in
2005, which was $109
million, or 3.3%, higher
than 2004. Capital spending as
a percentage of revenues was 17.9%
in 2005 compared with
18.1% in 2004.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell Canada&#146;s capital expenditures
were $3,122&nbsp;million, which was
$96&nbsp;million, or 3.2%
higher than 2004. As a
percentage of revenues, Bell Canada&#146;s
capital expenditures increased slightly to
18.1% in 2005 from
18.0% in the previous year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital spending in 2005
reflected an increasing investment in
the growth areas of the business and
reduced spending in legacy areas. Our key
strategic investments this year included:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
expanding our FTTN footprint to deliver higher-speed broadband access
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
launching our Bell Digital Voice service
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
implementing an EVDO wireless data network in certain markets
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
expanding our DSL footprint through the deployment of new high-density remotes
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
investing in our IPTV platform and IT efficiency projects to achieve cost savings.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Higher spending also resulted from
capitalization of STBs and
installation costs associated with our new
rental program in video and a return to
more normal spending levels at Aliant after
its labour disruption in 2004
and satellite builds at Telesat.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL
CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>


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


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



<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 15</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CASH FROM OPERATING ACTIVITIES AND FREE CASH FLOW
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><IMG src="m30365m3036508.gif" alt="(BAR GRAPH)">
</DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036507.gif" alt="(BAR GRAPH)">
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Cash from operating activities was
$5,559&nbsp;million in
2005, or 2.1% higher
than 2004. This was a result of:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> an improvement in cash earnings
resulting from higher EBITDA
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a significant improvement in
accounts receivable collections, mainly due to
the resolution of issues associated with the
implementation of our new wireless billing
platform in 2004</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> an increase
of $134&nbsp;million in proceeds from
the sale of accounts receivable
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a decrease of $77&nbsp;million in
restructuring payments relating to
restructuring initiatives in 2004
and 2005.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These
improvements were partly offset by:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> higher pension and other benefit
plan payments, mainly at Aliant
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> an increase of $73&nbsp;million in income
taxes paid, primarily related to the final
instalment for 2004, which was
made in 2005 as instalments were
not required at Bell Canada in 2004
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a $75&nbsp;million
settlement payment received from
Manitoba Telecom Services Inc.
(MTS)&nbsp;in 2004.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We generated $662&nbsp;million
of free cash flow for 2005,
meeting our target of $600 to
$800&nbsp;million for the year. On
December&nbsp;16, 2005,
we adjusted our 2005 guidance
for free cash flow from the range of
$700 to $900&nbsp;million
to $600 to $800
million to reflect the pending sale of CGI. Free cash
flow of $662&nbsp;million for
2005 was $208&nbsp;million
lower than 2004, mainly because
of:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a decrease of $149
million in insurance proceeds received
by Telesat
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> an increase of
$109&nbsp;million in capital
expenditures related to our investment in
platforms for next-generation service
platforms
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> an increase of $87
million in dividends paid on common
shares, resulting from the quarterly dividend
increase of $0.03 per common share.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These items were offset in part by a
$116&nbsp;million increase in cash
from operating activities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">NEW LABOUR AGREEMENTS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During the year, we signed a number of
new labour agreements, including:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a four-year collective agreement with
approximately 10,000 clerical and
associated employees represented by the
Canadian Telecommunications Association
(CTEA)&nbsp;that expires in July
2009
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a new four-year
collective agreement between Bell Technical Solutions (formerly Entourage) and
the 1,000 Qu&#233;bec technicians
unionized with the Communications, Energy and
Paperworkers Union of Canada (CEP)
that expires in May&nbsp;2009
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a new four-year collective agreement between
Bell Technical Solutions and the 1,400
Ontario technicians unionized with the
CEP was also reached, ending a
four-month labour disruption. This agreement
will expire in August&nbsp;2009.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With these new agreements and certain
other major agreements signed by Bell
Canada and Aliant with their respective
employees in 2004, we now have
the labour stability and a more competitive
cost structure needed to deliver quality
services and value to customers over the
next several years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ENHANCING SHAREHOLDER RETURNS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On February&nbsp;1,
2006, BCE Inc.
announced its plan to repurchase 5%
of its outstanding common shares
through a normal course issuer bid
(NCIB). In addition, on March&nbsp;7, 2006 BCE Inc.
announced its intention to distribute an
approximate 28.5% interest in a
new income trust to all its common
shareholders on a pro-rata basis and in
exchange reduce approximately 8%
of its common shares outstanding.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL
CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>


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


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



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 16 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</I>
</DIV>

<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">
<DIV align="left">
<A name="131"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Selected Annual and Quarterly Information</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This section shows selected financial and operational data.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>EBITDA  to interest ratio </I>is  EBITDA  divided by interest expense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Operating margin </I>is operating income divided by operating revenues.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>ROE </I>(return on common shareholders&#146; equity) is calculated as net earnings applicable to
common shares as a percentage of average common shareholders&#146; equity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Net debt to  EBITDA </I>is net debt divided by  EBITDA .
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Total debt to total assets </I>is total long-term debt (including debt due within one year) divided by
total assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Long-term debt to equity </I>is long-term debt (including any portion due within one year) divided by
shareholders&#146; equity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Cash flow per share </I>is calculated by dividing cash from operating activities less capital
expenditures by the average number of common shares outstanding.
</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>SELECTED ANNUAL AND QUARTERLY INFORMATION</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ANNUAL FINANCIAL INFORMATION
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following tables show selected consolidated financial data, prepared in accordance with
Canadian  GAAP, for each year from 2001 to 2005. We discuss the
factors that caused our results to vary over the past two years throughout this  MD&#038;A.
</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="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">2004</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">2003</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">2002</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">2001</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Operations</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Operating revenues</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>19,105</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,368</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,057</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,349</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,058</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Operating expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(11,508</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(10,938</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(10,776</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(11,064</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(11,285</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>EBITDA</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7,597</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,430</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,281</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,285</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,773</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Amortization expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(3,114</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(3,056</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(3,062</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2,999</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(3,267</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net benefit plans (cost)&nbsp;credit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(380</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(256</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(175</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Restructuring and other items</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(55</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,224</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(14</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(768</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(977</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Operating income</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4,048</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,894</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,030</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,551</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,650</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>8</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">407</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">177</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,413</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,891</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Impairment charge</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(765</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(981</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(999</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,100</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,119</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(966</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Pre-tax earnings from continuing operations</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,075</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,302</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,107</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,080</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,575</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(893</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(681</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,086</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,585</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,648</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-controlling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(267</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(174</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(201</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(663</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(360</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Earnings from continuing operations</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,915</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,447</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,820</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,832</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,567</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>46</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">575</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(3,131</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net earnings before extraordinary gain</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,961</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,524</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,815</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,407</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">436</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Extraordinary gain</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net earnings</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,961</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,593</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,815</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,407</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">436</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividends on preferred shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(70</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(70</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(64</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(59</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(64</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Premium on redemption of preferred shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net earnings applicable to common shares</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,891</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,523</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,744</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,342</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">372</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Included in net earnings:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net gains on investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Continuing operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>29</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">389</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">84</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,341</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,184</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(1</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(86</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">607</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,943</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Restructuring and other items</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(38</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(772</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(441</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(462</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Impairment charge</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(527</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Goodwill amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(971</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(44</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net earnings per common share:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Continuing operations &#151; basic</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1.99</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.49</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.91</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Continuing operations &#151; diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1.99</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.49</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.90</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net earnings &#151; basic</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2.04</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.90</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.66</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.46</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net earnings &#151; diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2.04</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.89</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.46</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Ratios</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">EBITDA margin (%)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>39.8</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">40.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">40.3</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">39.7</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">37.5</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">EBITDA to interest ratio (times)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7.74</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.01</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Operating margin (%)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>21.2</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">15.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">22.3</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">19.4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">14.7</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ROE (%)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>14.8</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">12.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">15.2</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">17.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.4</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>


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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 17</I>
</DIV>

<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Cash flow yield </I>is cash from operating activities less capital expenditures, other investing
activities, dividends on preferred shares and dividends paid by subsidiaries to non-controlling
interest, divided by the number of common shares outstanding at the end of the year and multiplied
by the share price at the end of the year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Market capitalization </I>is  BCE Inc.&#146;s share price at the end of the year multiplied by the
number of common shares outstanding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Book value per share </I>is common shareholders&#146; equity divided by number of common shares outstanding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Common dividend yield </I>is dividends paid on common shares divided by  BCE Inc.&#146;s share price
at the end of the year multiplied by the number of common shares outstanding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Common dividend payout ratio </I>is dividends paid on common shares divided by net earnings applicable
to common shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Price to earnings ratio </I>is  BCE Inc.&#146;s share price at the end of the year divided by
earnings per share.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Price to book ratio </I>is  BCE Inc.&#146;s share price divided by the book value per share.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Price to cash flow ratio </I>is  BCE Inc.&#146;s share price at the end of the year divided by cash
flow per share.
</DIV>
</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="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">2004</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">2003</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">2002</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">2001</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Balance Sheet</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>40,630</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,140</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,402</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,674</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term debt (including current portion)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>13,405</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,802</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,802</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,673</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,793</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>13,129</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,644</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,274</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,178</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,905</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total capitalization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>30,748</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,576</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,236</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,356</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,072</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Preferred shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,670</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,670</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,670</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,510</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,300</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Common shareholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>13,051</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,354</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,895</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,090</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,266</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Ratios</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net debt to total capitalization (%)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>42.7           </B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">42.8      </TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">43.9      </TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">48.4      </TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">36.8      </TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net debt to EBITDA (times)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1.73</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.82</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.91</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total debt to total assets (times)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.33</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.39</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term debt to equity (times)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.91</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.91</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.71</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Cash Flows</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Cash flows from operating activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>5,559</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,443</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,890</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,409</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,024</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash flows from investing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(3,866</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(3,635</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2,875</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(7,003</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(698</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Capital expenditures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(3,428</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(3,319</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(3,101</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(3,691</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(4,885</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Business acquisitions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(228</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,118</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(54</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(6,455</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(307</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Business dispositions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,187</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">248</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other investing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">127</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(79</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash flows from financing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(1,643</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2,300</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2,949</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,370</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,921</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net issuance (repayment)&nbsp;of equity instruments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>25</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">172</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,819</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(120</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net issuance (repayment)&nbsp;of debt instruments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(54</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(820</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,827</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,014</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,489</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Financing activities of subsidiaries with third parties</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(77</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(50</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">92</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,010</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash dividends paid on common shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(1,195</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,108</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,029</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(999</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(969</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash dividends paid on preferred shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(86</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(85</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(61</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(43</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(64</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash
dividends paid by subsidiaries to  non-controlling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(192</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(188</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(184</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(468</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(357</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash provided by (used in) discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>15</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">350</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,039</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,095</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Ratios</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Free cash flow</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>662</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">870</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,577</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(782</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2,330</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Capital intensity (%)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>17.9           </B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">18.1      </TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">17.2      </TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">20.1      </TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">27.1      </TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash flow per share (dollars)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2.30</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.03</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.85</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1.07</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash flow yield (%)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>7.2           </B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">7.4      </TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">9.8      </TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.8      </TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(4.7      </TD>
    <TD nowrap>%)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Share Information</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Average number of common shares (millions)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>926.8</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">924.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">920.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">847.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">807.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Common shares outstanding at end of year (millions)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>927.3</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">925.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">924.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">915.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">808.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Market capitalization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>25,844</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,777</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,704</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,103</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,114</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividends declared per common share (dollars)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1.32</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Book value per share (dollars)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>14.07</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.34</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.87</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.88</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total dividends declared on common shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(1,222</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,110</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,105</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,031</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(969</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total dividends declared on preferred shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(70</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(70</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(64</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(59</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(64</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Market price per common share (dollars)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">High</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>32.95</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36.87</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43.50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Low</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>26.60</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25.75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32.75</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Close</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>27.87</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28.92</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28.90</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36.01</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Ratios</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Common dividend yield (%)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>4.6           </B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.1      </TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.9      </TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.8      </TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.3      </TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Common dividend payout ratio (%)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>63.2           </B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">72.8      </TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">59.0      </TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">42.7      </TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">260.5      </TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Price to earnings ratio (times)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>13.66</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.53</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78.28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Price to book ratio (times)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1.98</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.91</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Price to cash flow ratio (times)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>12.12</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.54</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33.53</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(33.65</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Other Data</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Number of employees (thousands) <SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>60</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><I>(1)</I></TD>
    <TD>&nbsp;</TD>
    <TD><I>The number of employees for 2004 excludes virtually all employees who left
under the voluntary departure program of 2004.</I></TD>
</TR>

</TABLE>
<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 18 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</I>
</DIV>
<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Digital equivalent access lines </I>are derived by converting low capacity data lines ( DS-3
and lower) to the equivalent number of voice-grade access lines.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>ARPU (average revenue per unit) </I>and <I>ARPS (average revenue per subscriber)</I>
represent a measurement of the average revenue generated by each unit or subscriber, expressed as a
rate per month for the year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Churn </I>is the rate at which existing subscribers cancel their services. Churn is calculated as the
number of subscribers disconnected divided by the average subscriber base.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Cost of acquisition (COA) </I>is also referred to as subscriber acquisition costs. This
measure is expressed per gross activation. It includes costs associated with acquiring a customer
such as hardware subsidies, marketing and distribution costs.
</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ANNUAL OPERATIONAL INFORMATION
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below shows selected data on operations from 2003 to 2005.
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">2004</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">2003</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Wireline</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Local network access services (thousands)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>12,581</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,905</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,051</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long distance conversation minutes (millions)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>18,306</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,070</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,132</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long distance average revenue per minute (cents)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>10.2</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Data</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Digital equivalent access lines (thousands)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>5,034</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,335</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,867</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">High-speed Internet net activations (thousands)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>387</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">350</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">358</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">High-speed Internet subscribers (thousands)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,195</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,808</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,458</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dial-up Internet subscribers (thousands)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>586</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">743</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">869</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Wireless</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cellular and PCS net activations (thousands)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>516</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">513</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">514</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cellular and PCS subscribers (thousands)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>5,441</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,925</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,412</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average revenue per unit ($/month)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>49</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Churn (%) (average per month)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>1.6</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.3</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.4</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cost of acquisition ($/subscriber)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>406</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">411</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">426</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Paging subscribers (thousands)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>347</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">427</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">524</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Video</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Video net activations (thousands)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>224</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">116</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">83</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Video subscribers (thousands)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,727</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,503</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,387</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average revenue per subscriber ($/month)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>50</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Churn (%) (average per month)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>0.9</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.1</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cost of acquisition ($/subscriber) <SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>375</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">571</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">532</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><I>(1)</I></TD>
    <TD>&nbsp;</TD>
    <TD><I>The 34% decrease in  COA  over 2004 was impacted by the capitalization of
STBs and installation costs associated with our new rental program.</I></TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>


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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 19</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">QUARTERLY FINANCIAL INFORMATION
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below shows selected consolidated financial data by quarter for 2005
and 2004. This quarterly information is unaudited but has been prepared on the
same basis as the annual consolidated financial statements. We discuss the factors that caused our
results to vary over the past eight quarters throughout this  MD&#038;A.
</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="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19" style="border-bottom: 1px solid #000000">2004</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">YEAR</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Q4</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Q3</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Q2</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Q1</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">YEAR</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Q4</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Q3</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Q2</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Q1</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="41" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Operating revenues</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>19,105</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4,986</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4,732</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4,757</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4,630</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,368</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,769</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,556</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,577</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,466</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">EBITDA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7,597</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,858</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,864</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,972</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,903</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,430</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,794</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,901</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,920</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,815</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Amortization expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(3,114</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(791</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(786</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(776</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(761</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(3,056</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(787</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(754</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(757</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(758</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net benefit plans cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(380</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(65</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(108</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(104</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(103</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(256</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(67</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(61</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(65</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(63</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Restructuring and other items</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(55</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(23</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(31</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(5</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,224</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(126</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,081</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(14</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(3</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="41" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Operating income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4,048</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>979</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>939</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,087</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,043</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,894</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">814</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,084</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">991</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Earnings from continuing operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,915</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>418</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>448</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>570</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>479</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,447</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">354</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">90</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">529</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">474</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>46</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>12</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>11</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>11</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>12</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Extraordinary gain</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,961</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>430</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>459</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>581</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>491</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,593</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">434</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">571</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">488</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings applicable to common shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,891</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>413</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>441</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>563</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>474</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,523</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">417</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">82</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">554</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">470</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Included in net earnings:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net gains on investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Continuing operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>29</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>28</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">389</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">325</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(1</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(1</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Restructuring and other items</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(38</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(16</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(21</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(3</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(772</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(62</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(725</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings per common share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Continuing operations &#151; basic</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1.99</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.43</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.46</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.60</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.50</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.49</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.55</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.49</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Continuing operations &#151; diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1.99</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.43</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.46</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.60</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.50</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.49</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.55</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.49</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net earnings &#151; basic</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2.04</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.44</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.48</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.61</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.51</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net earnings &#151; diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2.04</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.44</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.48</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.61</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.51</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average number of common shares
outstanding (millions)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>926.8</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>927.3</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>927.0</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>926.6</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>926.2</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">924.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">925.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">924.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">924.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">924.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="41" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>


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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 20 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</I>
</DIV>
<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">
<DIV align="left">
<A name="132"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Financial Results Analysis</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This section provides detailed information and analysis about our performance over the past two
years. It focuses on our consolidated operating results and provides financial information for each
of our operating segments.
</DIV>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>FINANCIAL RESULTS ANALYSIS</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CONSOLIDATED ANALYSIS
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">2004</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">% CHANGE</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Operating revenues</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>19,105</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,368</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Operating expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(11,508</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(10,938</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(5.2</TD>
    <TD nowrap>%)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>EBITDA</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7,597</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,430</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.2</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Amortization expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(3,114</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(3,056</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1.9</TD>
    <TD nowrap>%)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net benefit plans cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(380</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(256</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(48.4</TD>
    <TD nowrap>%)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Restructuring and other items</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(55</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,224</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">95.5</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Operating income</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4,048</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,894</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">39.9</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>8</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">407</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(98.0</TD>
    <TD nowrap>%)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(981</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(999</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.8</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pre-tax earnings from
continuing operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,075</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,302</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">33.6</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(893</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(681</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(31.1</TD>
    <TD nowrap>%)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-controlling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(267</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(174</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(53.4</TD>
    <TD nowrap>%)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Earnings from continuing
operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,915</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,447</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">32.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>46</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(40.3</TD>
    <TD nowrap>%)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings before
extraordinary gain</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,961</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,524</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">28.7</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Extraordinary gain</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/M</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,961</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,593</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">23.1</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividends on preferred shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(70</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(70</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net earnings applicable
to common shares</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,891</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,523</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">24.2</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR><TD align="LEFT" valign="TOP">&nbsp;</TD></TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>EPS</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2.04</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">23.6</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>N/M: Not meaningful</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Operating Revenues
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our revenues increased to $19,105&nbsp;million in 2005, 4.0% higher than
2004. This reflected improved revenue performance across all our segments and surpassed
our target of matching or exceeding gross domestic product (GDP)&nbsp;growth. Revenues at
Bell Canada grew by 2.8%. This was  driven primarily by the Business segment, where
continued wireless strength, growth of  ICT  solutions from both business acquisitions
and organic growth as well as focused execution of our  VCIO  strategy in  SMB
led to improved top-line results. Our Residential segment delivered solid revenue growth as a
result of the performance of its video, Internet and wireless services, while Aliant revenues also
increased due in part to its recovery from a labour disruption in 2004. These results
were achieved despite continued decreases in legacy wireline services. Higher revenues at our Other
BCE  segment, fuelled by stronger advertising and subscriber revenues at Bell Globemedia
and higher business networks and broadcast revenue
at Telesat combined with the positive impact from its acquisition of SpaceConnection, further
contributed to overall revenue growth.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We expect continued revenue growth at Bell Canada in 2006, as anticipated
increases in revenue from our growth services should more than offset further erosion of our legacy
wireline business. We expect to reach an inflection point in 2006, where growth
services should represent the majority of Bell Canada revenues by the end of the year. Revenue
growth is expected to be fuelled by continued solid increases in the number of subscribers in our
wireless, video and high-speed Internet units in combination with higher average revenue per user
(ARPU)&nbsp;for these services, and further traction of our  ICT  and  VCIO
strategies within the Business segment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For local and access and long distance revenues, we expect the negative trends experienced in
the past few years to continue and the rate of  NAS  erosion to accelerate in 2006
as cable operators capture a greater share of the local telephone market with their
low-priced bundled offers. We also expect the decline in revenue from legacy services in our
Enterprise and Wholesale business units to continue in 2006 because of ongoing
pressures on competitive pricing and the migration to  IP  networks and services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See <I>Segmented Analysis </I>for a discussion of operating revenues on a segmented basis,
and <I>Product Line Analysis </I>for a discussion of operating revenues on a product line
basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Operating Income
</DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036509.gif" alt="(BAR GRAPH)">
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Operating income at  BCE  was $4,048&nbsp;million in 2005 , an
increase of $1,154&nbsp;million over the previous year, which included restructuring and
other items of $1,224&nbsp;million related primarily to the employee departure program in
2004 . The results for 2005 include restructuring and other items of
$55&nbsp;million associated with new restructuring initiatives for involuntary employee
departure, as well as relocation of employees and closing of real estate facilities related to last
year&#146;s
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>


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

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




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 21</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">employee departure program. Operating income before restructuring and other items was
$15&nbsp;million, or 0.4% lower than the previous year. Despite an increase in
revenues across all segments, Galileo cost savings and the recovery from the 2004
labour disruption at Aliant, operating income before restructuring and other items decreased
as it was negatively impacted by a number of factors, including:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the higher cost of
acquiring substantially more wireless subscribers
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the  CRTC&#146;s  CDN  decision
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> continued pressure on operating margins from
the ongoing transition of our product mix towards growth services
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the cost of restoring
customer service levels following the settlement of the Entourage labour dispute in July
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> higher net benefit plans cost and amortization expense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Similarly, at Bell Canada, operating income for the year was $3,755&nbsp;million, or
$1,060&nbsp;million higher than 2004 because of charges recognized in the
previous year for the employee departure program. Operating income before restructuring and other
items declined by $105&nbsp;million, or 2.7%, to $3,809&nbsp;million in
2005, compared with $3,914&nbsp;million in the previous year.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See <I>Segmented Analysis </I>for a discussion of operating income on a segmented basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">EBITDA
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">EBITDA  increased 2.2%, or $167&nbsp;million, to $7,597
million in 2005 because of improved performance at Bell Canada, Bell Globemedia
and Telesat. EBITDA  for Bell Canada was $7,187&nbsp;million, representing a
1.1% increase over 2004, driven primarily by increases in our Business
segment and at Aliant, which were partly offset by decreases in our Residential and Other Bell
Canada segments.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EBITDA  margins for 2005 were 39.8% at  BCE  and
41.7% at Bell Canada, both down 0.7&nbsp;percentage points compared with
2004. The year-over-year declines reflected operating cost pressures, which included
higher wireless acquisition costs, continued erosion of high-margin legacy voice and data services
in all our segments, the  CRTC&#146;s  CDN  decision, as well as the costs to
restore service levels subsequent to the resolution of the labour dispute with our technicians in
Ontario. The impact of these elements on  EBITDA  margin was largely offset by the
savings in operating costs achieved through Galileo.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wireless  EBITDA  for 2005 increased by 10.1% to
$1,307&nbsp;million, reflecting wireless services revenue growth of 9.9%. The
positive contribution from higher revenue was offset partly by the cost of acquiring 20%
more gross subscriber activations year-over-year, as well as by higher bad debt expense and
customer-service related costs during the first half of 2005, which contributed to a
slight 0.3&nbsp;percentage-point decline in  EBITDA  margin to 41.2%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wireless cost of acquisition (COA)&nbsp;decreased 1.2% to $406
per gross activation in 2005 from $411 per gross activation in
2004 due to higher gross activations, despite greater hardware subsidization of more
expensive handsets and promotional incentives to acquire higher  ARPU  and longer-term
contract customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Video  EBITDA  for 2005 increased to $45&nbsp;million from
negative $19&nbsp;million in the previous year, reflecting strong double-digit revenue
growth as well as lower subscriber acquisition costs due to the larger number of customers choosing
the  STB  rental option. The improvement was offset somewhat by higher costs incurred to
handle increased call volumes at our contact centres.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The  COA  for video services was $375 per gross activation in
2005, a decrease of 34% and a significant improvement  from $571 per gross
activation in 2004. This was mainly the result of the capitalization of  STBs
and installation
costs associated with our new rental program and fewer promotional offers, which were partly
offset by a higher number of new customers purchasing additional  STBs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2006, the expected benefits of our Galileo cost savings initiatives combined
with anticipated revenue increases from our growth services are expected to mitigate further
declines in our legacy businesses. We are targeting significant cost savings as a result of
internal process redesign and supply transformation.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Amortization expense increased $58&nbsp;million to $3,114&nbsp;million in
2005, representing a 1.9% increase from 2004. This was a result
of an increase in our capital asset base from higher investment in the growth areas of the
business, as well as overall capital spending that continues to be higher than asset retirements.
</DIV>

<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Amortization Expense</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The amount of our amortization expense in any year is affected by:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> how much we invested
in new capital assets in previous years
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> how many assets we retired during the year
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> changes in accounting rules and estimates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Each year, we review our estimate of the useful life of our capital assets.
</DIV>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

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




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 22 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</I>
</DIV>
<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Net Benefit Plans Cost</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The amount of the net benefit plans cost in a year mainly depends on:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the return on
pension plan assets that we expected to be generated during the year &#151; the lower the return, the
higher the cost
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the present value of future pension benefit payments to employees &#151; the
lower the present value, the lower the cost
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> actuarial gain (loss) &#151; the difference
between the actual funded status of our pension plans and the amount calculated using our
accounting assumptions. We amortize this into earnings over time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Restructuring and Other Items</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This category includes various income and expenses that are not directly related to the operating
revenues generated during the year. Examples are costs related to streamlining initiatives, asset
write-downs and other types of income or charges.
</DIV>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization expense is expected to increase in 2006 as a result of an
increase in our capital base. This increase reflects the capitalization of  STBs and
installation costs associated with the new rental program in our video business unit, the
completion in 2005 of the Alberta SuperNet (a next-generation network bringing
high-speed Internet and broadband capabilities to communities in Alberta) and Telesat&#146;s new Anik
F1R  and Anik  F3 satellites.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Net Benefit Plans Cost</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The net benefit plans cost increased $124&nbsp;million to $380&nbsp;million in
2005. This was 48% higher than the cost of $256&nbsp;million in
2004, and resulted mainly from:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a reduction in the discount rate from
6.5% to 6.2%, which increased the accrued benefit obligation of our pension
plans
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a reduction in the plan asset base due to the amortization of investment losses
in 2001 and 2002
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> fully amortizing in 2004 the savings
relating to the transitional asset that arose when we adopted new accounting rules in 1987
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> an increase in pension obligations from the early retirement program implemented in
2004.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This was partly offset by a $44&nbsp;million curtailment gain associated with the
phase-out, over the next three years, of a discretionary allowance program.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net benefit plans cost is expected to increase in 2006, mainly as a result of a
further reduction in the discount rate from 6.2% to 5.2%. This will lead to
an increase in the accrued benefit obligation of our pension plans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Restructuring and Other Items</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We recorded restructuring and other items of $55&nbsp;million in 2005. These included:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> charges of $51&nbsp;million related to new restructuring initiatives for the
involuntary departure of approximately 950 employees
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> charges of $49
million for relocating employees and closing real estate facilities that are no longer needed
because of the reduction in the workforce resulting from the 2004 employee departure
program.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These charges were partly offset by reversals of restructuring provisions of $45
million that were no longer necessary because the actual payments made to employees were
lower than estimated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We recorded restructuring and other items of $1,224&nbsp;million in 2004.
These consisted mainly of:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a restructuring charge of $985&nbsp;million related
to approximately 5,000 employee departures under the employee departure program at Bell
Canada
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a  charge of $128&nbsp;million recorded for cost overruns on a contract
with the Government of Alberta (GOA), relating to the construction of the Alberta
SuperNet
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a charge of $67&nbsp;million relating to an employee departure program
at Aliant
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> other costs of $108&nbsp;million, including future lease costs for
facilities no longer needed, asset write-down and other provisions, net of a reversal of previously
recorded restructuring charges that were no longer necessary because of the introduction of a new
employee departure program.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This was partly offset by income of $75&nbsp;million recorded in  the second
quarter of 2004, relating to an agreement between  BCE Inc. and  MTS  to
settle lawsuits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Net Earnings and Earnings per Share (EPS)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In 2005, net earnings applicable to common shares were $1,891&nbsp;million, or
$2.04 per common share, 24% higher than net earnings of $1,523
million, or $1.65 per common share, for 2004. Included in earnings
this year was a net charge of $10&nbsp;million from restructuring and other items and net
gains on investments, compared with a net charge of $349&nbsp;million for 2004.
Net earnings before restructuring and other items and net gains on investments of $1,901
million, or $2.05 per common share, increased by $29&nbsp;million, or
$0.03 per share, year-over-year. This represents an increase of 1.5% over
the previous year. The improvement in  EPS  before restructuring and other items and
gains on investments can be attributed to higher  EBITDA  combined with the impact from
the income tax loss monetization program between Bell Canada and  BCI  and net income tax
savings. This more than offset the increase in net benefit plans cost and amortization expense.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2006, we anticipate that  EPS  will decrease, mainly as a result of
the negative impact of an increase in net benefit plans cost, resulting from a reduction in the
discount rate from 6.2% to 5.2% and an increase in amortization expense
because of an increase in our capital asset base.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

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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 align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 23</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">SEGMENTED ANALYSIS
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036510.gif" alt="(PIE CHART)&nbsp;&nbsp;&nbsp;&nbsp;">
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">2004</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">% CHANGE</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Operating revenues</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Residential</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7,599</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,502</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Business</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>6,120</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,851</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.6</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Aliant</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,097</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,033</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.1</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other Bell Canada</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,958</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,939</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Inter-segment eliminations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(524</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(538</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.6</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bell Canada</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>17,250</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,787</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.8</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other BCE</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,093</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,842</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">13.6</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Inter-segment eliminations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(238</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(261</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">8.8</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total operating revenues</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>19,105</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,368</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Operating income</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Residential</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,001</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,119</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(5.6</TD>
    <TD nowrap>%)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Business</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>910</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">896</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.6</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Aliant</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>396</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">268</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">47.8</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other Bell Canada</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>448</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(588</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/M</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bell Canada</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,755</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,695</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">39.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other BCE</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>293</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">199</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">47.2</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total operating income</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4,048</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,894</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">39.9</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>N/M: Not meaningful</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Residential Segment
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><IMG src="m30365m3036511.gif" alt="(BAR GRAPH)">
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Residential revenues grew 1.3%, or $97&nbsp;million, to $7,599
million in 2005, compared with 2004. Video, data, wireless and
terminal sales and other revenues contributed 1.7%, 1.2%, 1.3%
and 0.5%, respectively, to overall Residential revenue growth in
2005, offset largely by a negative contribution of 2.1% from long distance
and 1.3% from local and access services. The increase was the result of continued
expansion of our wireless, video and high-speed Internet subscriber bases and an increase in video
ARPU, offset almost entirely by lower wireline (local and access and long distance)
revenues brought about by an acceleration in  NAS  losses and continued wireless long
distance prepaid and  VoIP  substitution, as well as ongoing price
competition. Although overall Residential revenue growth slowed somewhat in 2005, this
result was anticipated given increased competition from cable telephony and other alternative
VoIP  providers, which adversely affected wireline revenues.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Local and access revenues, which represents the largest proportion of our Residential segment
revenues, declined
in 2005, due mainly to  NAS  erosion that resulted in lower basic service and
related SmartTouch feature revenues, offset partly by an increase in wireline maintenance plan
revenues reflecting price increases implemented during the year. NAS  decreased in
2005 primarily as a result of losses to competitive local exchange carriers
(CLECs) and cable operators, as well as to continued pressure from growth in high-speed
Internet access that reduces the need for second telephone lines, while the impact from other
alternative  VoIP  providers and customers substituting wireline with
wireless telephone service was minimal. The rate of year-over-year  NAS  losses increased
in 2005 as several major cable operators operating in our territory began to
aggressively market their low-priced local telephony offerings in certain of our Ontario and Qu&#233;bec
markets, where their footprints were established.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long distance revenues decreased in 2005 compared with 2004 as a
result of lower average revenue per minute (ARPM). Lower  ARPM  reflected
increased competition from non-traditional long distance providers, the impact of our $5
Long Distance Bundle (which
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

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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 align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 24 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">was discontinued in July&nbsp;2005) and Block-of-Time (BOT)&nbsp;minute plans,
as well as a lower volume of higher priced overseas minutes. Overall minutes also declined
year-over-year, as usage gains stemming from our bundle product were more than offset by losses of
domestic and overseas minutes to alternative, non-traditional long distance service providers.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For further information about our wireline business, please see <I>Local and Access</I>
and <I>Long Distance </I>within our <I>Product Line Analysis.</I>
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Residential wireless revenues increased in 2005, compared with 2004,
as a result of a higher average number of customers compared with last year, price increases for
certain services and features implemented earlier in the year, and increased adoption of data and
other value-added feature services. Overall revenue growth was dampened by the loss of high-value
customers in the early part of 2005 due to billing system conversion issues and a
higher proportion of customers choosing prepaid service or postpaid monthly packages that include a
large number of in-plan minutes and free unlimited local airtime usage for up to six months. In
addition, revenue growth was negatively impacted by the billing and retention credits issued in
Q1 2005 to compensate customers for billing errors and delays that occurred following
implementation of our new billing platform in 2004. The issuance of customer credits
returned to normal levels in  Q2 2005.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For further information about our wireless business, please see <I>Wireless </I>within our
<I>Product Line Analysis.</I>
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Residential data revenues grew year-over-year, fuelled by growth of 21% in our
high-speed Internet subscriber base and an almost two-fold increase in revenues from our
Sympatico. MSN.ca web portal and Bell Sympatico  VAS  such as  MSN
Premium, Security Services and Home Networking. The portal currently averages 17.2
million unique visitors per month, or 87% of online Canadians.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential high-speed Internet subscriber growth in 2005 was driven by the
introduction of our Basic Lite service in the Ontario market, as well as by footprint expansion,
focused selling efforts and improved retention strategies. The introduction of lower priced
high-speed services, such as our Basic Lite product,
that are tailored to the very price-sensitive segments of the market, has expanded the overall
high-speed market, stimulating high-speed service growth and accelerating the rate of erosion of
dial-up Internet service.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For further information about our data business, please see <I>Data </I>within our
<I>Product Line Analysis.</I>
</DIV>

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




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036512.gif" alt="(BAR GRAPH)">
</DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036513.gif" alt="(BAR GRAPH)">
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our video revenues grew 14.8% in 2005 to $976&nbsp;million
from $850&nbsp;million in 2004, as a result of an increase in the average number
of subscribers, higher  ARPU, reflecting the impact from price increases implemented
during the year, and the success of our strategy to upsell customers to higher-priced programming
packages. We had a strong year with the addition of 224,000 new net video customers, a
93% increase compared with the 116,000 net activations achieved in
2004. Our total video customer base reached 1,727,000 at December
31, 2005, representing an increase of 14.9% compared with the
previous year. The significant growth in net activations for 2005 can be attributed to
the positive impact of our  STB  rental program, which accounted for nearly half of our
new activations in the year, the attractiveness of our programming packages, and the addition of
12,500 new subscribers from our acquisition of Cable  VDN  in the third
quarter. In addition, several initiatives focused on churn management contributed to overall
subscriber growth. Churn for the year improved by 0.1&nbsp;percentage points to 0.9%
compared with 2004, reflecting the continued success of our multi-product
household strategy and the requirement that, as of August&nbsp;1, 2004, all new
video customers have contracts. This result was achieved despite implementation of a card swap
program completed in July&nbsp;2005 and aggressive
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>


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

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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 align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 25</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">price competition, particularly in the latter half of the year, from the cable operators&#146;
strategy of bundling cable television service with other products.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Video  ARPU  increased to $50 per month in 2005 from
$49 per month in the previous year. The improvement was the result of price increases
implemented during the year and a shift in product mix towards higher priced programming packages,
offset partly by bundle and retention discounts. In March&nbsp;2005, we applied a $3
rate increase to our existing subscriber base and on October&nbsp;1, 2005,
we brought into effect $2 and $3 increases, respectively, on our basic and
theme packages for all new customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2006, growth in video revenues is expected to continue, driven by ongoing
expansion of the subscriber base and further improvement in  ARPU  brought about by the
price increases introduced during 2005. We will leverage our video service as part of
our Residential segment&#146;s overall multi-product household strategy, allowing us to maximize the
profitability of our traditional local voice services, while increasing penetration of our growth
services, by securing a loyal customer base that is less vulnerable to cable telephony. We also
intend to continue investing in our  IPTV  platform in preparation for launch of service
in the future and to further develop our highdefinition capabilities, ensuring that we have the
right services in the future to be the video provider of choice for consumers in both urban and
rural markets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Residential Operating Income
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036515.gif" alt="(BAR GRAPH)">
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Residential segment operating income decreased 5.6%, or $118&nbsp;million,
to $2,001&nbsp;million in 2005, compared with 2004. This decrease
was due to a higher rate of decline in our high-margin residential  NAS  wireline
customer base, higher expected acquisition costs from stronger year-over-year wireless subscriber
growth, higher marketing costs related to an increased level of wireless advertising and sales
activity, as well as higher amortization expense and increased net
benefit plans cost. These factors were partially offset by higher revenues and cost savings
associated with certain Galileo initiatives, including our One Bill rollout, the launch of our new
Bell.ca website and improved call centre efficiencies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By the end of 2005, we began to see a marked decrease in contact centre costs
driven by an improvement in the first-call resolution rate and outsourcing. This, along with
revenue growth from continued strength in our wireless, Internet access and video businesses, is
expected to mitigate the continued erosion in our local and access and long distance services in
2006, which should experience heightened competition as cable operators intensify their
marketing efforts and further expand the footprint for their low-priced cable telephony offerings
in our incumbent territories.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Business Segment
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036514.gif" alt="(BAR GRAPH)">
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Business segment revenues increased by 4.6% in 2005 to reach $6,120
million, compared with $5,851 million in the previous year. Our  SMB and
Enterprise units contributed 2.7% and 1.8% of the total growth in
Business segment revenues, respectively, while our other business units (comprised of Bell West and
360networks) contributed 0.1%. From a product line perspective, increases
in data and wireless revenues at our Enterprise and  SMB  units were partially offset by
declines in long distance and local and access revenues, resulting from further legacy erosion as
competitive pressures intensified and as customers continued to migrate their voice and data
traffic to our  IP-based systems. In addition, lower data revenues at Bell West in
2005, due to revenues received in 2004 from the  GOA  for the
construction of the Alberta SuperNet, dampened the overall Business segment revenues for the year.
The results for 2005 also include the contribution to revenues from the acquisition of
360 networks in November&nbsp;2004, which increased our customer base and gave
us an extensive fibre network across major cities in Western Canada.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 26 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Enterprise</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Enterprise revenues increased in 2005, compared with 2004, mainly as
a result of strong wireless performance driven by solid growth in the number of higher-value
wireless subscribers and higher data revenues. Data contributed significantly to the year-over-year
revenue improvement, due to solid growth in  IP-based connectivity services
and  ICT  solutions, as well as the proceeds from the sale of customer contracts related
to legacy point-of-sales systems. ICT  revenues grew by 36% in 2005
as a result of acquisitions, organic growth and outsourcing contracts. Data revenue growth
was more organic in 2005 than in 2004, as we have realized the full-year
benefit of acquisitions made in 2004, including Infostream Technologies Inc. and Elix
Inc. Declines in long distance and local and access revenues partially offset the increases in data
and wireless revenues, due to erosion of our legacy voice and data business, the repricing of some
of our existing wireline business brought about by competitive market conditions, and the continued
migration of our customers&#146; voice and data traffic to  IP-based systems.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2005, we continued to broaden our  ICT  solutions product suite
through the acquisition of a number of small, specialized service companies, including:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> CDG, Inc., a Canadian provider of anti-virus and anti-spam solutions, which
should provide a strong presence in Western Canada
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> PopWare Inc., a systems integrator providing inventory and asset management solutions,
which expands our wireless solutions portfolio
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> The Createch Group, a Qu&#233;bec-based professional services firm specializing in business
process optimization and  IT  integration, which consolidates our existing suite of
wireless data solutions
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> end2end Software Corp., a developer of workflow solutions for
the capital markets sector.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our Enterprise unit also had a number of significant multi-year contract wins during the year,
including:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> National Bank of Canada, to provide integrated call centre solutions and telephone
services
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> A&#233;roports de Montr&#233;al, to provide a fully-integrated end-to-end communications services
solution consisting of standard telecom services, IP  telephony, WiFi coverage and
digital signage
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Canadian Imperial Bank of Commerce, to provide and manage  DSL  and  IP
virtual private network (IP-VPN) services for its remote automated bank machine
(ABM)&nbsp;network
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> RBC  Financial Group, Canada&#146;s largest financial institution, to implement a fully
managed  IP  solution, converting approximately 8,400 of the bank&#146;s phone
lines at its head office in Toronto to  VoIP.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The  SMB  unit delivered its best year since the launch of its  VCIO
strategy in 2003, contributing significantly to the solid financial performance
of our Business segment in 2005. Revenues generated from  SMB  customers
increased in 2005 as higher data and wireless revenues more than compensated for the
decreases in long distance and local and access revenues. Despite a highly competitive market
environment, data revenue growth in 2005 was driven by the continued strong adoption of
our  VCIO  strategy and cross-selling opportunities with companies acquired in 2005
(including Nexxlink Technologies Inc. and  CSB  Systems, which form a part of Bell
Business Solutions Inc.). This resulted in higher  VAS  and equipment sales
year-over-year, which grew organically by 48% in the year, as well as an increase in
the number of high-speed Internet access service connections. Long distance revenues decreased, due
mainly to the combined impact of lower volumes and competitive pricing pressures, and a weakening
of our pay-phone business that is directly attributable to wireless and Internet substitution.
Similarly, local and access revenues were also lower due to pressure from our declining pay-phone
business, NAS  losses to alternative telephony providers and lower wireline access
installation fees resulting from reduced
order activity.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Bell West continued to grow its Enterprise and  SMB  customer bases during
2005, leading to increases in revenues in most product categories. These increases were
more than offset by a year-over-year decrease in data revenues. The results for 2004
reflected higher data revenues earned from the construction of the Alberta SuperNet.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During 2005, Bell West began to integrate the operations of
360networks, which was acquired in November&nbsp;2004. Through this acquisition,
Bell West increased its customer base while gaining access to an extensive fibre network with
facilities across major cities in Western Canada.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

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




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 27</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June&nbsp;2005, Bell Canada and the  GOA  entered into a new
agreement that replaced the initial contract for construction and operation of the Alberta SuperNet
entered into in 2001. The Alberta SuperNet, which provides high-speed Internet and
broadband capabilities, is comprised of a Base Area Network (BAN), covering 27
of Alberta&#146;s largest communities, and the Extended Area Network (EAN), reaching
429 communities in rural Alberta. Under the terms of the new agreement, Bell Canada
assumed ownership of the  EAN  and provides access to the  GOA  under
indefeasible right-of-use agreements. In conjunction with this agreement, Bell Canada also entered
into a new revenue-sharing agreement with the  GOA  and Axia NetMedia Corporation, the
access manager for the Alberta SuperNet. Construction of the Alberta SuperNet was completed on
September&nbsp;30, 2005. Following service acceptance by the  GOA  in
the fourth quarter, the Alberta SuperNet began generating revenues from the sale of telecom
services.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Business Operating Income</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036517.gif" alt="(BAR GRAPH)">
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Business segment operating income grew 1.6%, or $14&nbsp;million, to
$910&nbsp;million in 2005, compared with 2004, due mainly to a
year-over-year increase in revenues and cost savings from our Galileo initiatives. These positive
impacts were mitigated by continued margin pressure due to a competitive market pricing
environment, the loss of higher-margin legacy voice and data business, and the ongoing shift of
voice and data traffic to lower-margin  IP-based growth services, as well as higher net
benefit plans cost and amortization expense.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the Enterprise unit, operating income increased in 2005 due to solid revenue growth
and focused cost management, despite the negative margin impact from steady progress in
transforming our product mix towards growth services as well as higher amortization expense and net
benefit plans cost.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Similarly, SMB  operating income growth in 2005 was driven by
strong revenue performance and Galileo savings, partly offset by higher operating expenses stemming
from recent business acquisitions, margin erosion
related to the shift from legacy voice and data services to  VCIO  revenues, as well
as by higher net benefit plans cost and amortization expense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell West recorded lower operating income in 2005, due primarily to higher
revenues earned in 2004 for the construction of the Alberta SuperNet and higher
amortization expense, offset partly by lower cost of goods sold.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our transformation strategy will continue in 2006 as our core network evolves to
enable new  IP-based services and as we transform operations and achieve greater
efficiencies to create a next-generation cost structure for our business. Our Business segment
growth strategy will continue to be developed around the objectives of serving the Enterprise
market in key  ICT  vertical markets such as health care, government and financial
services, and continuing to raise awareness among our  SMB  customers about the benefits
of  ICT  solutions delivered through a single point-of-contact. In 2006, we
expect Business segment revenues will grow, driven by organic growth in  IP-based
connectivity service and  ICT  revenues, further traction of our  VCIO
strategy in  SMB, the positive contribution of business acquisitions made in
2005, continued solid wireless performance, and increased sales of services from the
Alberta SuperNet. However, continued declines from our legacy voice and data services are expected
to offset the growth in revenues.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Aliant
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036516.gif" alt="(BAR GRAPH)">
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Aliant segment revenues increased 3.1%, or $64&nbsp;million, to
$2,097&nbsp;million in 2005, compared with 2004. Strong growth in
wireless and Internet services, as well as a recovery from the 2004 labour disruption,
offset declines in other areas due to the effects of competition, wireless and Internet
substitution, and regulatory restrictions.
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

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




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 28 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aliant&#146;s wireless revenue grew in 2005, driven by an 11.9%
increase in its wireless customer base and higher  ARPU. Subscriber results
included a 23% increase in  digital customers, reflecting Aliant&#146;s expanded
coverage area and digital wireless network, an enhanced dealer network that improved market
penetration, and a broader product selection. In addition, ARPU  increased in the year,
reflecting the effects of a higher percentage of customers subscribing to digital service and an
increase in average minutes of use.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Data revenues increased slightly in 2005, as higher Internet revenues and recovery
from the 2004 labour disruption were offset almost entirely by other data revenue
declines from the continued rationalization of circuit networks by customers, and the $8
million negative impact of the  CRTC&#146;s  CDN  decision. The increase in
Internet revenues was attributable mainly to 42% growth in Aliant&#146;s high-speed Internet
customer base. The increased number of subscribers reflected expansion of high-speed Internet
service into new areas, the migration of dial-up customers to higher-speed products, successful
marketing programs and an emphasis on bundling Internet service with other products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long distance revenues declined in 2005, due to lower per-minute pricing and a
decline in minutes of use stemming from intense competition, substitution of long distance calling
with Internet and wireless options, and
the use of contact centre management tools (such as integrated voice response systems) that
reduce the duration of calls.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Local and access revenues continued to decrease in 2005, due mainly to a
1.5% decline in the  NAS  customer base, which reflected losses to the
competition and technology substitution. In addition, the  CRTC&#146;s regulatory
restrictions continue to place pressure on Aliant&#146;s local and access business with respect to
bundling and packaging of local services with other non-regulated services, and limitations imposed
with respect to customer win-back promotions. Enhanced service features revenue also declined as a
higher number of customers received bundling discounts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Terminal sales and other revenues increased in 2005, as a result of higher product
sales reflecting Aliant&#146;s recovery from its 2004 labour disruption.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Aliant Operating Income
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036519.gif" alt="(BAR GRAPH)">
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Aliant&#146;s operating income increased 48%, or $128&nbsp;million, to
$396&nbsp;million in 2005, compared with 2004. The full impact of
revenue growth and recovery from the 2004 labour disruption, as well as the
non-recurrence in 2005 of a $67&nbsp;million restructuring charge related to the
voluntary early retirement program in December&nbsp;2004, was offset partly by the impact of
the  CRTC&#146;s  CDN  decision and an increase in net benefit plans cost.
Operating expense increases required to drive revenue growth in 2005 were contained by
expense management and the cost savings from Aliant&#146;s 2004 voluntary early retirement
program. Approximately $42&nbsp;million of incremental costs were incurred during the
2004 labour disruption to enable operations to continue with relatively few
interruptions, ensure the safety of employees, perform property repairs, provide training and
equipment to employees and maintain basic customer service.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2006, Aliant expects revenue growth from its high-speed Internet and digital
wireless services, as well as increased  ICT  market penetration in Atlantic Canada and
adjacent areas to offset expected steady, but slower, declines in local and access and long
distance revenues. Aliant also anticipates higher operating income in 2006 from
continued revenue growth and through productivity improvements. These positive impacts are expected
to be offset partly by increased costs associated with Aliant&#146;s growth services and higher net
benefit plans cost.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Other Bell Canada Segment
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036519.gif" alt="(BAR GRAPH)">
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>


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

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




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 29</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Other Bell Canada segment revenues grew 1.0%, or $19&nbsp;million, to
$1,958 million in 2005, compared with 2004. The year-over-year
increase was due mainly to higher revenues at our Wholesale unit, resulting from the acquisition of
the wholesale business of 360networks in November&nbsp;2004, fibre and access
capacity sales in the third quarter of 2005, the early termination of a cross-border
facilities contract in the second quarter of 2005 and a favourable ruling by the
CRTC  with respect to subsidies for serving high-cost areas at T&#233;l&#233;bec in the first
quarter of 2005. A contract secured in late 2005 to restore
telecommunications service to the areas affected in the United States by Hurricane Katrina also
contributed to the improvement in Other Bell Canada revenues in 2005. These positive
impacts were offset partly by the impact of the  CRTC&#146;s  CDN  decision, which
reduced revenues by $55&nbsp;million in 2005, continued pressure on long
distance revenues stemming from a decrease in switched minute volumes and competitive pricing, and
lower data revenues as customers migrated services onto their own network facilities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Other Bell Canada Operating Income
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036521.gif" alt="(BAR GRAPH)">
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Other Bell Canada segment generated operating income of $448&nbsp;million in
2005, a $1,036&nbsp;million increase when compared to an operating loss of
$588&nbsp;million in 2004. The amount reported for 2004 included
restructuring and other items of $1,147&nbsp;million, mainly associated with our employee
departure program and the related relocation of employees and closure of excess real estate
facilities, whereas the amount reported in 2005 for restructuring and other charges was
$53&nbsp;million. Excluding restructuring and other items, operating income decreased
10.4% to $501 million in 2005, reflecting the impact of the
CRTC&#146;s  CDN  decision, higher operating costs from the acquisition of
360networks, and the repricing of long distance and data services in our Wholesale
business. Higher revenues and lower bad debts expense partly offset the negative impacts on
operating income.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Other  BCE  Segment
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">2004</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">% CHANGE</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Operating revenues</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Bell Globemedia</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,555</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,420</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">9.5</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Telesat</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>475</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">362</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">31.2</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>63</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Other BCE revenues</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,093</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,842</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">13.6</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036520.gif" alt="(BAR GRAPH)">
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Other  BCE  segment revenues grew 13.6%, or $251&nbsp;million,
to $2,093&nbsp;million in 2005, compared with 2004, reflecting
higher revenues mainly at Bell Globemedia and Telesat.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell Globemedia&#146;s revenues increased 9.5%, or $135&nbsp;million, to
$1,555&nbsp;million in 2005, compared with 2004. Total advertising
revenues grew by 10.3% in 2005, reflecting the strength of  CTV
Television&#146;s schedule, which
included the majority of the top 20 regularly scheduled programs in each season
among all viewers, and higher employment and classified advertising sales at <I>The Globe and
Mail. </I>Strong growth in advertising revenues in conventional and specialty television other
than sports helped to offset the loss of advertising from hockey broadcasts (due to the  NHL
players&#146; lockout, which ended in the third quarter) on our sports specialty channels
TSN  and  RDS  for the first three quarters of the year. Bell Globemedia&#146;s
subscriber revenues grew by 7.4% in 2005, due primarily to specialty
channel subscription growth, online subscription growth at <I>The Globe and Mail, </I>as well
as a larger number of subscribers to <I>The Globe and Mail </I>in combination with an increase
in the home delivery rate for the newspaper implemented at the beginning of the year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Telesat&#146;s revenues increased 31%, or $113&nbsp;million, to $475
million in 2005, compared with the previous year, primarily as a result of
revenue gains from the installation and maintenance of an interactive distance learning network,
growth in Ka-band revenues on its Anik  F2 satellite, the positive impact from its
acquisition of SpaceConnection, and higher overall broadcast revenues.
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>


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

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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 align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 30 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SpaceConnection was acquired in January&nbsp;2005 and is a provider of
programming-related satellite transmission services to major U.S. television networks and cable
programmers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Anik  F2 began commercial service in October&nbsp;2004 and was the world&#146;s
first satellite to commercialize the Ka frequency band, enabling two-way high-speed Internet access
services to consumers and businesses in Canada and the United States. In May&nbsp;2005,
Telesat launched its new two-way high-speed Internet access service using the Ka band of Anik
F2. This service is available to consumers through multiple distributors across Canada,
including Barrett Xplore Inc., a wireless broadband service provider, T&#233;l&#233;bec, NorthernTel and
Infosat Communications Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October&nbsp;1, 2005, Telesat&#146;s new Anik  F1R  satellite was
placed into service and began providing capacity for broadcasters, home satellite television
services and telecommunications.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January&nbsp;17, 2006, Telesat announced plans to build and launch Nimiq
4, a new direct broadcast satellite that will carry a wide range of digital television
services and enable Bell ExpressVu to enhance advanced services such as  HD  television,
specialty channels and foreign language programming.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Other BCE Operating Income
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036523.gif" alt="(BAR GRAPH)">
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Operating income for the Other  BCE  segment grew 47%, or $94
million, to $293&nbsp;million in 2005, due mainly to higher operating
income at both Bell Globemedia and Telesat.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell Globemedia&#146;s operating income increased 20%, or $49&nbsp;million, to
$289&nbsp;million in 2005, reflecting revenue gains and lower sports specialty
programming costs due to the  NHL  lockout for most of the year. This was offset partly
by higher conventional television programming costs, increased sales and circulation costs at
<I>The Globe and Mail </I>and higher net benefit plans cost.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Telesat&#146;s operating income grew by 11.3%, or $16&nbsp;million, to
$157&nbsp;million in 2005, reflecting higher revenues, offset partly by higher
operating expenses from SpaceConnection, network equipment costs for interactive distance learning
services, as well as higher amortization expense stemming from its newest satellites (Anik  F2
and Anik  F1R) and from the acquisition of SpaceConnection.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">PRODUCT LINE ANALYSIS
</DIV>



<DIV  align="left" style="font-size: 10pt; margin-top: 12pt"><IMG src="m30365m3036522.gif" alt="(PIE&nbsp;CHART)">
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD nowrap align="left">REVENUES</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">2004</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">% CHANGE</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Local and access</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>5,446</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,572</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2.3</TD>
    <TD nowrap>%)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long distance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,044</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,327</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(12.2</TD>
    <TD nowrap>%)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wireless</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,097</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,818</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">9.9</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 0px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Data</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4,015</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,640</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">10.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Video</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>976</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">850</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">14.8</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Terminal sales and other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,672</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,580</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.8</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total Bell Canada</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>17,250</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,787</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.8</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Local and Access
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036539.gif" alt="(BAR GRAPH)">
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Local and access revenues decreased 2.3%, or $126&nbsp;million, to
$5,446 million, compared with 2004. The year-over-year decline was a result
of accelerating  NAS  erosion and lower Smart-Touch feature revenues directly
attributable to  NAS  losses, offset partly by gains from wireline insurance and
maintenance plans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

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




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 31</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NAS  in service declined by 324,000 in 2005 or
2.5%, as a result of competition from cable operators for local telephone service,
losses to  CLECs and other  VoIP  providers, wireline to wireless
substitution, as well as continued pressure from growth in high-speed Internet access that reduces
the need for second telephone lines. This decrease in 2005 reflected a higher level of
NAS  losses than the previous year, as several major cable operators in our incumbent
territories increased their marketing efforts and expanded the footprint of their low-priced local
telephony offerings in certain of our Ontario and Qu&#233;bec markets. This was offset partly by
customers subscribing to our new Bell Digital Voice service and higher demand for local access
lines from Shaw Communications to offer  VoIP  services in Western Canada.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Moreover, the  CRTC&#146;s regulatory restrictions continue to place pressure on our
local and access business with respect to bundling and packaging of local services with other
non-regulated services, as well as limitations on customer win-back promotions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2006, we expect that wireline competition in both the Residential and Business
markets will increase further, primarily as a result of cable telephony and decreases in legacy
services pricing. Accordingly, we estimate that our overall  NAS  in service will
continue to decrease in 2006, reflecting a significantly higher rate of decline in our
Residential segment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Long Distance
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036525.gif" alt="(BAR GRAPH)">
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Long distance revenues were $2,044&nbsp;million in 2005, reflecting a
year-over-year decrease of 12.2% compared with 2004. Lower long distance
revenues affected all Bell Canada segments, particularly our Residential and Business segments.
Overall minute volumes increased 1.3% in 2005 to 18,306&nbsp;million
conversation minutes, compared with 2004. However, ARPM  decreased by
$0.015 during the year to reach $0.102, reflecting competitive pricing
pressures in our Residential, Business and Wholesale markets and the pricing impact from
subscriptions to the $5 Long Distance Bundle in our Residential segment (which we
stopped offering in July&nbsp;2005).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We anticipate continued pressure on long distance revenues in 2006, due to
intensifying competition in our Residential markets from cable companies that are offering
VoIP  residential telephone service, wireless substitution and other factors
including e-mail and instant messaging substitution, as well as continuing competitive pricing
conditions in the Enterprise and Wholesale markets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Wireless
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036524.gif" alt="(BAR GRAPH)">
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036526.gif" alt="(BAR GRAPH)">
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Gross wireless activations increased by 20% in 2005 to a record
1,470,000, up from 1,225,000 in the previous year. Although the percentage
of total gross activations from postpaid rate plans decreased to 70% in 2005
from 75% in 2004, due primarily to the impact of Solo Mobile and
Virgin Mobile on prepaid subscriber growth, the total number of gross postpaid activations
increased by 11.9% to 1,024,000. Prepaid gross activations comprised the
remaining 446,000 gross activations, representing a 44% increase compared
with 2004. Postpaid growth was stimulated by our attractive line-up of leading-edge
handsets and devices, innovative services such as 10-4 and  EVDO,
competitive rate-plan promotions, our growing presence in Western Canada, as well as our continued
success with the business market segments. The significantly higher number of prepaid activations
was fuelled by the introduction of two new brands tailored for the youth market, Solo Mobile and
Virgin Mobile.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

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




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 32 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our postpaid churn rate increased to 1.4% in 2005 from
1.1% in 2004, due mainly to increased competitive pressures, the reaction
to price increases introduced during the year for certain services and features, the enforcement of
tighter policies on the application of customer credits and discounts and to the granting of
hardware upgrades, as well as some residual impacts from our billing system migration that caused
dissatisfaction among certain of our customers who deferred service deactivation until expiry of
their contracts. Prepaid churn for 2005 was unchanged at 1.9%
year-over-year, reflecting the effectiveness of our retention initiatives with respect to
inactive customers. Accordingly, as a result of higher postpaid churn, our blended churn rate for
2005 increased to 1.6%, compared with 1.3% in 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of a record number of gross activations in 2005 and despite an
increase in our overall churn rate for the year, we added 516,000 new net activations
in 2005, representing a slightly higher number than the 513,000 achieved in
2004. At December&nbsp;31, 2005, our cellular and  PCS
subscriber base totalled 5,441,000, representing a 10.5% increase.
Postpaid rate plans accounted for 74% of our total subscriber base at the end of
2005, compared with 76% at the end of the previous year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wireless service revenues grew 9.9%, or $279&nbsp;million, to $3,097
million in 2005, compared with 2004, reflecting a higher average
number of customers in our subscriber base and stable  ARPU  performance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Postpaid  ARPU  remained stable year-over-year at $61 per month. The
positive impact of higher value-added service and data revenues, increased penetration of
Blackberry customers and other heavy users subscribing to higher-priced rate plans, as well as
price increases implemented during the year for certain features including
911, 411, outbound text messaging, and out-of-bundle minutes were
fully offset by lower out-of-bundle airtime usage, resulting from the popularity of price plans
offering a large number of bundled minutes or an unlimited local usage option, and the application
of customer billing and retention credits in the early part of the year stemming from the residual
impact of the billing system migration in 2004. Prepaid  ARPU  increased to
$14 per month in 2005, compared with $12 per month in
2004, due mainly to the addition of Solo and Virgin Mobile customers, who generate a
higher than average  ARPU, to our prepaid subscriber base and to higher overall usage.
Blended  ARPU  remained unchanged in 2005 at $49 per month,
compared with 2004, despite a slight year-over-year decrease in the percentage of total
subscribers on postpaid rate plans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We continue to see considerable opportunities for growth in the wireless market for
2006, given that Canadian wireless penetration is significantly lower than the levels
achieved in other countries, such as the United States, where the penetration rate at the end of
2005 was approximately 65% compared to an estimated 52% in
Canada. We expect our wireless revenues to increase as a result of anticipated higher  ARPU
and the continued expansion of our subscriber base in 2006. We anticipate that
attracting higher-value subscribers with innovative features and applications, increased take-up
rates for data bundles, the introduction of new rate plans to stimulate usage and encourage
customer migration to higher-priced packages, selective price increases for some value-added
services, as well as increased usage of wireless data services such as text and picture messaging
and Web browsing should stimulate  ARPU  growth.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Data
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036528.gif" alt="(BAR GRAPH)">
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036527.gif" alt="(BAR GRAPH)">
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Data revenues increased 10.3%, or $375&nbsp;million, to $4,015
million in 2005, compared with 2004. The improvement was a result of
growth in high-speed Internet access services, increased penetration
of  IP-based
connectivity and  ICT  solutions within our Enterprise and  SMB  business
units, including revenues related to business acquisitions in 2005, which more than
offset the negative effects of a decrease in legacy data revenues due to competitive pricing, lower
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

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




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 33</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">demand and the continued rationalization of circuit networks by wholesale customers, lower
construction revenues from the  GOA  contract and the  CRTC&#146;s  CDN
decision, which adversely affected data revenues by $63&nbsp;million in
2005. Data revenues in 2005 also reflected the favourable impact of the
sale of customer contracts and fibre and access capacity in our Enterprise and Wholesale units, as
well as a one-time benefit from the early termination of a cross-border facilities contract.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The number of high-speed Internet subscribers increased by 387,000 in
2005, 10.6% higher than the 350,000 net new connections
activated in 2004, bringing the total subscriber count at the end of 2005
to 2,195,000. Subscriber growth in the year was driven largely by the
introduction of our Basic Lite product in the Ontario market, higher net additions at Aliant and in
our  SMB  unit, as well as by footprint expansion, focused selling efforts and improved
customer retention. The introduction of lower-priced high-speed services such as Basic Lite that
are tailored to the very price-sensitive segments of the market, has expanded the overall
high-speed market, stimulating high-speed service growth and accelerating the rate of erosion of
dial-up Internet service. Total dial-up customers decreased to 586,000 at the end of
2005 from 743,000 at the end of 2004. Our high-speed Internet
access footprint in Ontario and Qu&#233;bec reached 85% of homes and business lines passed
at the end of 2005, compared with 83% at the end of the previous year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2006, we expect further revenue erosion in our legacy data services from
competitive pricing pressures and continued customer migration to  IP-based networks,
offset by anticipated high-speed Internet subscriber base growth, increased penetration of
value-added solutions, as well as the positive impact of acquisitions and select price increases
for certain Internet services. We also expect our Residential segment to experience slower
high-speed Internet subscriber growth due to sustained aggressive price competition in both our
Ontario and Qu&#233;bec markets arising from cable operators&#146; increased emphasis on selling
multi-product bundles at discounted rates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Video
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>See discussion under Residential segment.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Terminal Sales and Other
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036529.gif" alt="(BAR GRAPH)">
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Terminal sales and other revenues increased 5.8%, or $92&nbsp;million, to
$1,672&nbsp;million in 2005, compared with 2004. The year-over-year
improvement reflected higher wireless equipment revenues resulting from an increased volume of
devices sold, higher product sales at Aliant reflecting its recovery from a labour disruption in
2004, the favourable impact from several acquisitions (including those of
360 networks and Entourage), as well as incremental revenue from a contract secured by
Expertech Network Installation Inc. (a Bell Canada majority-owned provider of installation and
network infrastructure services) to help restore telecommunications service to the areas affected
in the United States by Hurricane Katrina. This was offset partly by lower legacy voice equipment
sales to business customers.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">OTHER ITEMS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Other Income
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Other income decreased $399&nbsp;million to $8&nbsp;million in 2005, a
decrease of 98% from 2004. This was mainly from:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> net gains on
investments in 2004 of $217&nbsp;million from the sale of our 15.96%
interest in  MTS  and $108&nbsp;million from the sale of Bell Canada&#146;s
remaining 3.24% interest in  YPG  General Partner Inc. (YPG)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a charge of $33&nbsp;million relating to the tax loss monetization program
between Bell Canada and  BCI (see
<I>Related Party Transaction)</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a decrease of $35&nbsp;million in income from cost and equity investments mainly
due to the sale of our 15.96% interest in  MTS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a $7&nbsp;million write-down of Bell Globemedia&#146;s investment in  TQS
Inc.
</DIV>

<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Other Income</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Other income includes income that we receive from activities that are not part of our business
operations, such as:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> net gains on investments, including gains or losses when we dispose
of, write down or reduce our ownership in investments
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> foreign currency gains (losses)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> interest income on cash and cash equivalents
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> equity in net earnings (losses)
from companies over which we exert significant influence
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> other miscellaneous income or
expense.
</DIV>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>p. 34 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</I>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 1pt">&nbsp;</DIV>

<DIV style="width: 100%; border: 1px solid black; padding: 11px;">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Non-Controlling Interest</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The non-controlling interest in the statements of operation reflects the percentage of a subsidiary
that we do not own multiplied by the amount of the subsidiary&#146;s after-tax earnings.
</DIV>

<DIV align="left">
<A name="133"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>Financial and Capital Management</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This section tells you how we manage our cash and capital resources to carry out our strategy and
deliver financial results. It provides an analysis of our financial condition, cash flows and
liquidity on a consolidated basis.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>Capital Structure</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our capital structure shows how much of our net assets are financed by debt and equity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Net debt to capitalization ratio </I>is a key measure we use to assess our financial condition. It
shows how much net debt (debt due within one year and long-term debt, net of cash) we have in
relation to our capitalization (total net debt, non-controlling interest and shareholders&#146; equity).
</DIV>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This decrease was partly offset by a dilution gain of $39&nbsp;million in the
second quarter in our interest in TerreStar Networks Inc., a mobile satellite services company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Interest Expense
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Interest expense declined $18&nbsp;million to $981&nbsp;million in 2005,
a decrease of 1.8% from 2004. This was a result of lower average interest
rates from the refinancing of debt at lower rates.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Income Taxes
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Income taxes increased $212&nbsp;million to $893&nbsp;million in 2005, an
increase of 31% over 2004. This was mainly from:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> higher pre-tax earnings
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> tax savings realized in 2004 on the $325&nbsp;million of
gains on the sale of our interests in  MTS  and  YPG  because of the available
capital loss carryforwards.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This increase was partly offset by:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> restructuring charges of $45&nbsp;million that were not tax-effected in
2004
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> savings of $99&nbsp;million resulting from the tax loss monetization
program between Bell Canada and  BCI
(see <I>Related Party Transaction)</I>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As a result, the effective tax rate decreased slightly from 29.6% in 2004
to 29.0% in 2005.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Non-Controlling Interest
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Non-controlling interest increased $93&nbsp;million to $267&nbsp;million in
2005, an increase of 53% over 2004. This was from:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> higher net earnings at Aliant and Bell Globemedia
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a higher net loss at Bell West in 2004, due to cost
overruns on the  GOA  contract that were recorded in 2004, since  MTS
owned a 40% interest in Bell West until August&nbsp;2004.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Discontinued Operations
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The net gain from discontinued operations of $46&nbsp;million in 2005 relates to
our proportionate share of  CGI&#146;s operating gains.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The net gain from discontinued operations of $77&nbsp;million in 2004
consisted of:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a net gain of $23&nbsp;million from discontinued operations
of Emergis
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> our proportionate share of CGI&#146;s operating gains of $54
million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Extraordinary Gain
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the fourth quarter of 2004, we purchased the Canadian operations of
360 networks for $293&nbsp;million in cash. The fair value of the net assets
acquired exceeded the purchase price by approximately $227&nbsp;million. For accounting
purposes, the excess was eliminated by:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> reducing the amounts assigned to the acquired
non-monetary assets (e.g., capital and intangible assets) to zero
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> recognizing the
balance of $69&nbsp;million as an extraordinary gain.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>FINANCIAL AND CAPITAL MANAGEMENT</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CAPITAL STRUCTURE
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD nowrap align="left">AT DECEMBER 31</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">2004</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Debt due within one year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,373</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,272</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>12,119</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,685</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: Cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(363</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(313</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total net debt</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>13,129</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,644</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Non-controlling interest</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,898</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,908</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total shareholders&#146; equity</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>14,721</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,024</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total capitalization</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>30,748</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,576</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net debt to capitalization ratio</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>42.7</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">42.8</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Outstanding share data </B>(in millions)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Common shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>927.3</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">925.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Stock options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>27.3</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036530.gif" alt="(BAR GRAPH)">
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>


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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 35</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our net debt to capitalization ratio was 42.7% at the end of 2005,
compared to 42.8% at the end of 2004. This was a result of an increase in
total shareholders&#146; equity, partly offset by higher net debt.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net debt increased $485&nbsp;million to $13,129&nbsp;million in
2005. This was mainly due to:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> obligations of $452&nbsp;million for
capital leases relating to several lease financing arrangements
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> cash of $461
million invested in business acquisitions and other investments
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> redemption of
common shares of $78&nbsp;million from non-controlling interest.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This increase was partly offset by free cash flow of $662&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total shareholders&#146; equity increased $697&nbsp;million to $14,721&nbsp;million
in 2005. This was mainly the result of the net earnings remaining after the dividends
we declared on common and preferred shares in 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">OUTSTANDING SHARE DATA
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We had 927.3&nbsp;million common shares outstanding at the end of 2005, an
increase of 1.4&nbsp;million over 2004 resulting from stock options that were
exercised in 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The number of stock options outstanding at the end of 2005 was 27.3
million, a decrease of 1.2&nbsp;million from 2004. The weighted average
exercise price of the stock options outstanding at December&nbsp;31, 2005 was
$32. Of the total outstanding stock options at December&nbsp;31,
2005, 16.5&nbsp;million were exercisable at a weighted average exercise price of
$34. In 2005:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> 1.5&nbsp;million stock options were granted
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> 1.4&nbsp;million previously granted options were exercised
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> 1.2&nbsp;million previously granted options expired or
were forfeited.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Starting in 2004, most of the stock options granted contain specific performance
targets that must be met before the option can be exercised.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">CHANGES TO CAPITAL STRUCTURE
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On February&nbsp;1, 2006, we announced the intended use of our proceeds
from the sale of our investments in Bell Globemedia and  CGI, which consists mainly of:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> $1.3&nbsp;billion for the repurchase of 5% of  BCE Inc.&#146;s
outstanding common shares through a  NCIB
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> $1.0&nbsp;billion for debt reduction.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">CASH FLOWS
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036531.gif" alt="(BAR GRAPH)">
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below is a summary of the flow of cash into and out of BCE in
2005 and 2004.
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">2004</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Cash flows from operating activities</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>5,559</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,443</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Capital expenditures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(3,428</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(3,319</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other investing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">127</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash dividends paid on common shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(1,195</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,108</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash dividends paid on preferred shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(86</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(85</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash dividends paid by subsidiaries
to non-controlling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(192</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(188</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Free cash flow</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>662</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">870</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Business acquisitions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(228</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,118</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Business dispositions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Increase in investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(233</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(58</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Decrease in investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>19</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">713</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net issuance of equity instruments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>25</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net repayment of debt instruments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(54</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(820</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Financing activities of subsidiaries
with third parties</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(77</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(50</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other financing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(64</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(81</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash provided by discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>15</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net increase (decrease)&nbsp;in
cash and cash equivalents</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>65</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(342</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Cash from Operating Activities
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Cash from operating activities increased $116&nbsp;million to $5,559&nbsp;million in
2005, an increase of 2.1% from 2004. This was a result of:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> an improvement in cash earnings resulting from higher  EBITDA
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a significant improvement in the collection of accounts receivable once issues
associated with the implementation of our new billing platform for wireless customers in 2004
were resolved
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> an increase of $134&nbsp;million in proceeds from the sale
of accounts receivable
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a decrease of $77&nbsp;million in payments relating to
the restructuring initiatives of 2004 and 2005.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>


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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 36 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This increase was partly offset by:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> higher pension and other benefit plan payments, mainly at Aliant
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> an
increase of $73&nbsp;million in income taxes paid, primarily related to the final instalment
for 2004 made in 2005 as instalments were not required at Bell Canada in
2004
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a $75&nbsp;million settlement payment received from  MTS
in 2004.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Free Cash Flow
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our free cash flow was $662&nbsp;million in 2005, down from $870
million in 2004. This was mainly due to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a decrease of $149
million in insurance proceeds received by Telesat
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> an increase of $109
million in capital expenditures related to our investment in platforms for next-generation
services
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> an increase of $87&nbsp;million for common dividends paid resulting
from the quarterly increase of $0.03 per common share.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This decrease was partly offset by a $116&nbsp;million increase in cash from operating activities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are targeting positive free cash flow in 2006 to be generated mainly from
recurring sources.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Capital Expenditures
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We continue to make investments to expand and update our networks and to meet customer demand for
new services. Capital expenditures were $3,428&nbsp;million in 2005, which was
3.3% higher than 2004 capital expenditures of $3,319&nbsp;million. Bell Canada&#146;s
capital expenditures were $3,122&nbsp;million in 2005, which was 3.2%
higher than 2004 capital expenditures of $3,026&nbsp;million. As a
percentage of revenues:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> our capital expenditures decreased slightly from
18.1% in 2004 to 17.9% in 2005
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Bell Canada&#146;s capital expenditures increased slightly from 18.0% in
2004 to 18.1% in 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our capital spending in 2005 reflected an increasing investment in the growth areas of
the business and reduced spending in legacy areas. Our key strategic investments this year
included:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> expanding our  FTTN  footprint
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> launching our Bell Digital Voice service
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> implementing an  EVDO  wireless data network
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> expanding our  DSL  footprint
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> investing in our  IPTV  platform and  IT  efficiency
projects to achieve cost savings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our capital spending also was higher in 2005 because Aliant was able to return to more
normal spending levels after the labour disruption in 2004, and because of Telesat&#146;s
investments in satellite construction.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2006, we are targeting to reduce Bell Canada&#146;s capital intensity ratio mainly
because of lower spending for maintenance of our wireline and  DSL  networks. Although we
anticipate a decrease in overall capital expenditures, we plan on increasing investment in our key
strategic priorities, including  FTTN, wireless growth and network expansion, IP
product development and Galileo cost saving initiatives (see <I>Our Strategic
Priorities)</I>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Other Investing Activities
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Cash from other investing activities decreased by $123&nbsp;million to $4
million in 2005, compared to 2004. Cash from other investing
activities included insurance proceeds that Telesat received for a malfunction on the Anik  F1
satellite, amounting to $179&nbsp;million in 2004, compared to $30
million in 2005.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Cash Dividends Paid on Common Shares
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In December&nbsp;2004, the board of directors of  BCE Inc. approved an increase
in the annual dividend on our common shares of 10% or $0.12 per common
share. We paid a dividend of $1.32 per common share in 2005.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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


<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 6pt"><I>p.
37</I>
</DIV>

<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We use a
combination of
short-term and
long-term debt to
finance our
operations. Our
short-term debt
consists mostly of
bank facilities and
notes payable under
commercial paper
programs. We
usually pay fixed
rates of interest
on our long-term
debt and floating
rates on our
short-term debt.
</DIV>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Business Acquisitions
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We invested $228 million in
business acquisitions in 2005.
This consisted mainly of:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Bell Canada&#146;s acquisition of Nexxlink for $74&nbsp;million
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Bell Canada&#146;s acquisition of
 NR Communications for $60
million
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> other business
acquisitions, mainly at Bell Canada,
totalling $94 million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We invested $1,118 million in
business acquisitions in 2004.
This consisted of:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Bell Canada&#146;s purchase of the
Canadian operations of
360 networks in November
2004 for $293
million
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> our purchase of
MTS&#146; 40% interest
in Bell West in August 2004 for
$646 million, giving Bell
Canada 100% ownership of Bell
West
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> other business
acquisitions, mainly at Bell Canada,
totalling $179 million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Increase in Investments
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Cash flows used for investments increased
$175 million to $233
million in 2005. In the
first quarter, Bell Canada invested
US$100 million to acquire an
approximate 12% interest in
Clearwire Corporation, a privately-held
company that offers advanced
IP-based wireless broadband
communications services.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Decrease in Investments
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We did not have any significant decreases in
investments in 2005.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2004, we sold our remaining
3.24% interest in YPG
for net cash proceeds of $123
million and our 15.96%
interest in MTS for net
cash proceeds of $584&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Debt Instruments
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In 2005, we repaid $54
million of debt, net of issues,
including the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Bell Canada repaid $751&nbsp;million in debentures
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Aliant repaid $150
million in medium-term notes
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> we repaid $66&nbsp;million in
notes payable and bank advances
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> we made other repayments that
included capital leases.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We had the following issues in 2005 :
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Bell Canada issued $900&nbsp;million in debentures
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Aliant issued $150&nbsp;million in medium-term notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In 2004, we repaid $820
million of debt, net of issues,
including the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Bell Canada repaid $952&nbsp;million in debentures
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Aliant repaid $100
million in medium-term notes
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> we redeemed all of our outstanding
Series&nbsp;P retractable preferred shares for
$ 351&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Most of the issues in 2004 involved:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Bell Canada, which issued $450&nbsp;million in debentures
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Bell Globemedia, which issued
$300&nbsp;million of senior notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Cash Relating to Discontinued Operations
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On December&nbsp;16,
2005, we announced our decision
to sell our investment in CGI,
and on January&nbsp;12,
2006, the transaction was
completed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CGI bought 100
million of the Class&nbsp;A shares held by
us, reducing our ownership in CGI
from 29.8% to
8.6%. We received total
proceeds of $859&nbsp;million,
generating a gain of approximately
$90&nbsp;million, which will be
recognized in the first quarter of
2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As at December
31, 2005, we have
accounted for CGI as
discontinued operations and no longer
proportionately consolidate its financial
results. Our remaining investment will be
accounted for at cost. CGI was
previously presented in the Other BCE
segment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash provided by discontinued
operations was $150&nbsp;million in
2004. This consisted mainly of:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> net cash proceeds of $315
million from the sale of Emergis
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> $285&nbsp;million from the sale of
Emergis&#146; US Health operations
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> $96&nbsp;million of cash
generated from Emergis&#146; operations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This was partly offset by the
deconsolidation of Emergis&#146; cash on hand of
$512&nbsp;million at December
31, 2003.
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 38 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</I>
</DIV>


<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Credit Ratings</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The interest rates
we pay are partly
based on the
quality of our
credit ratings,
which were all
investment grade at
March 1,
2006.
Investment grade
ratings usually
mean that when we
borrow money, we
qualify for lower
interest rates than
companies that have
ratings lower than
investment grade.
</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CREDIT RATINGS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below lists BCE Inc.&#146;s and Bell Canada&#146;s key credit ratings at March
1, 2006.
</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="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000">BCE INC.</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S&#038;P <SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">DBRS <SUP style="font-size: 85%; vertical-align: text-top"><B>(2)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">MOODY&#146;S <SUP style="font-size: 85%; vertical-align: text-top"><B>(3)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">FITCH <SUP style="font-size: 85%; vertical-align: text-top"><B>(4)</B></SUP></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Commercial paper
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">A-1 (low)
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">R-1 (low) / stable
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">P-2
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&#151;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Long-term debt
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>BBB&#043; / negative
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">A (low) / stable
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>Baa1 / negative
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>BBB&#043; / stable</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Preferred shares
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">P-2
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>Pfd-2 (low) / stable
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&#151;</TD>
</TR>

<TR valign="bottom" style="font-size: 1pt">
    <TD colspan="10" style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</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="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000">BELL CANADA</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S&#038;P <SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">DBRS <SUP style="font-size: 85%; vertical-align: text-top"><B>(2)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">MOODY&#146;S<SUP style="font-size: 85%; vertical-align: text-top"><B>(3)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">FITCH <SUP style="font-size: 85%; vertical-align: text-top"><B>(4)</B></SUP></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Commercial paper
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">A-1 (low)
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">R-1 (low) / stable
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">P-2
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&#151;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Extendable commercial notes
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">R-1 (low) / stable
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&#151;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Long-term debt
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">A- / negative
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">A / stable
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">A3 / negative
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>BBB&#043; / stable</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Subordinated long-term debt
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>BBB&#043; / negative
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>BBB (high) / stable
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>Baa1 / negative
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>BBB / stable</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Preferred shares
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">P-2
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">Pfd-2 / stable
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&#151;</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
    <TD colspan="10" style="border-bottom: 3px double #000000">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 6pt; width: 18%; border-top: 0px 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>(1)</I></TD>
    <TD>&nbsp;</TD>
    <TD><I>Standard &#038; Poor&#146;s, a division of The McGraw-Hill Companies, Inc.; maintains a negative
outlook on our corporate rating</I></TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left"><I>(2)</I></TD>
    <TD>&nbsp;</TD>
    <TD><I>Dominion Bond Rating Service Limited</I></TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left"><I>(3)</I></TD>
    <TD>&nbsp;</TD>
    <TD><I>Moody&#146;s Investors
Service, Inc.; on February 1, 2006 ratings placed under review for possible
downgrade</I></TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left"><I>(4)</I></TD>
    <TD>&nbsp;</TD>
    <TD><I>Fitch Ratings Ltd.</I></TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt">LIQUIDITY
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We expect, in 2006, to
generate enough cash from our operating
activities to pay for capital expenditures
and dividends. In other words, we are
targeting positive free cash flow in
2006.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We expect to repay contractual
obligations maturing in 2006
and in the long term from cash on
hand, from cash generated from our
operations or by issuing new debt.
Contractual obligations include long-term
debt.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Cash Requirements
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In 2006, we will need cash
mainly for capital expenditures, dividend
payments, pension funding,
the payment of contractual obligations and
other cash requirements.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Capital expenditures were $3.4
billion in 2005,
representing 17.9% of our
revenues for the year. We are targeting a
decrease in Bell Canada&#146;s capital intensity
ratio in 2006.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We expect to contribute approximately
$470&nbsp;million to our defined
benefit pension plans in 2006,
subject to actuarial valuations being
completed.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below is a summary of our contractual obligations at December&nbsp;31,
2005 that are due in each of the next five years and after 2010.
</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="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">THERE-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">AFTER</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">TOTAL</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="29" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term debt (excluding capital leases)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,686</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,043</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,624</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,013</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,955</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,481</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Notes payable and bank advances</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Capital leases</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">126</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">110</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">533</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">924</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Operating leases</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">231</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">204</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">181</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">158</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">134</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">679</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,587</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commitments for capital expenditures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">184</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">262</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Purchase obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,413</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,001</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">716</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">287</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">205 </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">530</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,152</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other long-term liabilities (including current portion)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">143</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">119</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">450</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="29" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,344</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,172</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,090</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,198</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,417</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,722</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,943</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="29" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 39</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Long-term debt and notes payable and
bank advances include $58
million drawn under our committed
credit facilities. They do not include
$455&nbsp;million of letters of
credit. The total amount available under
these committed credit facilities and under
our commercial paper programs, including the
amount currently drawn, is $2.4
billion.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The imputed interest to be paid on
capital leases is $649&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rental expense relating to operating
leases was $316&nbsp;million in
2005, $358&nbsp;million
in 2004 and $327
million in 2003.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase obligations consist mainly of
contractual obligations under service
contracts. Our capital spending commitments
include investments to expand and update
our networks, and to meet customer demand.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other long-term liabilities included in the
table relate to:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> payments Bell
Canada will make in the future to Amdocs
Canadian Managed Services, Inc.
(formerly Certen Inc.) for the development
of Bell Canada&#146;s billing system. The total
amount remaining in the contract was
$254&nbsp;million at December
31, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
remaining obligations of Bell
Globemedia relating to CRTC
benefits that were owed on previous
business combinations. These obligations
and other long-term liabilities totalled
$85&nbsp;million at December
31, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> deferred satellite performance
incentive payments and milestone payments
by Telesat, totalling $111
million at December&nbsp;31,
2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table
on the previous page does not include our
proportionate share of CGI&#146;s
operating leases and other contractual
obligations. This information is disclosed
in Note 8 to the consolidated
financial statements.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December&nbsp;31,
2005, we had other long-term
liabilities that are not included in the
table, including an accrued employee benefit
liability, future income tax liabilities,
deferred revenue and gains on assets and
various other long-term liabilities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We did not include the accrued
employee benefit liability and future
income tax liabilities in the table because
we cannot accurately determine the timing
and amount of cash needed for them. This is
because:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> future contributions
to the pension plans depend largely on how
well they are funded. This varies based on
the results of actuarial valuations that
are performed periodically and on the
investment performance of the pension fund
assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> future payments of income taxes
depend on the amount of taxable earnings
and on whether there are tax loss
carryforwards available to reduce income
tax liabilities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We did not include deferred revenue and
gains on assets in the table because they
do not represent future cash payments.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Other Cash Requirements</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our cash requirements may also be
affected by the liquidity risks related to
our off-balance sheet arrangements,
derivative instruments and contingencies. We
may not be able to quantify all of these
risks.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Off-Balance Sheet Arrangements
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Guarantees</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As a regular part of our business, we
enter into
agreements that provide for
indemnifications and guarantees to
counterparties in transactions involving
business dispositions, sales of assets,
sales of services, purchases and
development of assets, securitization
agreements and operating leases.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We cannot reasonably estimate the
maximum potential amount we could be
required to pay counterparties because of
the nature of almost all of these
indemnifications. As a result, we cannot
determine how they could affect our future
liquidity, capital resources or credit risk
profile. We have not made any significant
payments under these indemnifications in
the past. See Note 26 to the
consolidated financial statements for more
information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Securitization of Accounts Receivable</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Bell Canada and Aliant have
agreements in place to provide us with an
inexpensive source of funds.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the
agreements, Bell Canada and Aliant sold
interests in pools of accounts receivable
to securitization trusts for a total of
$1,354&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The total accounts receivable that
were sold must meet minimum performance
targets. These are based on specific
delinquency, default and receivable
turnover ratio calculations, as well as
minimum credit ratings. If these accounts
receivable go into default, the full
purchase price will have to be returned to
the buyers.
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>p. 40 </I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These agreements are an
important part of our capital structure and
liquidity. If we did not have them, we
would have had to finance approximately
$1,354&nbsp;million by issuing debt
or equity. See Note 10 to the
consolidated financial statements for more
information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Commitment under the CRTC Deferral Mechanism</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As at December&nbsp;31,
2005, we had estimated Bell
Canada&#146;s and Aliant&#146;s current deferral
account amounts, expressed as a future
annualized commitment, at $95
million for Bell Canada and $12
million for Aliant.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February&nbsp;16,
2006, the CRTC
issued Telecom Decision 2006-9,
where it estimated Bell Canada&#146;s and
Aliant&#146;s deferral account amounts, on an
accumulated balance and future annualized
commitment, at May
31, 2006. Bell
Canada&#146;s estimated accumulated balance at
May&nbsp;31, 2006 is
$480.5&nbsp;million with a future
annualized commitment of $81.5
million. Aliant&#146;s estimated
accumulated balance at May&nbsp;31,
2006 is $21.8&nbsp;million
with a future annualized commitment
of $2.2&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the Decision, the CRTC
concluded that incumbent telephone
companies should clear the accumulated
balances in their deferral accounts, to the
greatest extent possible, in the following
ways:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> by expanding broadband
services to rural and remote areas that are
currently unserved and would not otherwise
be served
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> by improving the
accessibility to telecommunications
services for persons with disabilities,
using a minimum of 5.0% of
incumbent telephone companies&#146; accumulated
deferral account balances
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> any
amounts remaining in incumbent telephone
companies&#146; deferral accounts after
accounting for these two programs will be
rebated to incumbent telephone companies&#146;
residential local customers in non-high
cost serving areas. The timing and amount
of the rebate, if any, is uncertain.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Decision also indicates that incumbent
telephone companies&#146; future annual deferral
account obligations are to be eliminated by
reducing monthly prices for primary
exchange service and optional local
services for residential customers in
non-high cost serving areas. Bell Canada,
Aliant and certain other incumbent
telephone companies are directed to file
their rate proposals by May&nbsp;15,
2006 and implement them on June
1, 2006.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finally, the Decision notes that the
extension of the price cap regime to May
31, 2007 will
result in an additional annual deferral
account obligation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Derivative Instruments
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We use derivative instruments to manage our
exposure to interest rate risk, foreign
currency risk and changes in the price of
BCE Inc. common shares that may
be issued or purchased under our
compensation plans ( SCPs and
DSUs). We do not use derivative
instruments for speculative purposes. Since
we do not trade actively in derivative
instruments, we are not exposed to any
significant liquidity risks relating to
them.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The carrying value of the outstanding
derivative instruments was a net liability
of $91&nbsp;million at December
31, 2005. Their
fair values amounted to a net liability of
$138&nbsp;million. See Note 21
to the
consolidated financial statements for
more information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Litigation
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We become involved in various claims and
litigation as part of our business. While
we cannot predict the final outcome of
claims and litigation that were pending at
December&nbsp;31, 2005,
based on information currently available,
management believes that the resolution of
these claims and litigation will not have a
material and negative effect on our
consolidated financial position or results
of operations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You will find a more detailed
description of the material claims and
litigation pending at December
31, 2005 in the
BCE 2005 AIF, and in Note
25 to the consolidated
financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Sources of Liquidity</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">While we do not expect a cash
shortfall in the foreseeable future, any
unplanned shortfall would be covered
through the financing facilities we
currently have in place.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These financing facilities, along with
our strengthening balance sheet, give us
flexibility in carrying out our plans for
future growth. If necessary, we can
supplement our liquidity sources by issuing
additional debt or equity. We might do this
to help finance business acquisitions or
for contingencies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>




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

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




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 41</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below is a summary of
our outstanding lines of credit, bank
facilities and commercial paper programs at
December&nbsp;31, 2005.
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">NON-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">COMMITTED</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">COMMITTED</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">TOTAL</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commercial paper
credit lines <SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,513</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,513</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other credit facilities <SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">916</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">413</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,329</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,429</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,413</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,842</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Drawn <SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">513</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">513</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Undrawn</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,916</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,413</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,329</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 6pt; width: 18%; border-top: 0px 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>(1)</I></TD>
    <TD>&nbsp;</TD>
    <TD><I>Current commercial paper credit
lines expire during August&nbsp;2008</I></TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left"><I>(2)</I></TD>
    <TD>&nbsp;</TD>
    <TD><I>Includes $455
million in letters of credit</I></TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BCE Inc., Bell Canada and
Aliant may issue notes under their
commercial paper programs up to the amount
of their supporting committed lines of
credit. The total amount available under
these supporting committed lines of credit
was $1.5
billion at December&nbsp;31,
2005.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCE Inc., Bell Canada and
Aliant had $45&nbsp;million in
commercial paper outstanding at December
31, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell Canada can issue up to $400
million Class&nbsp;E notes
under its commercial paper programs. These
notes are not supported by committed lines
of credit and may be extended in certain
circumstances. Bell Canada had no Class&nbsp;E
notes outstanding at December
31, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">RELATED PARTY TRANSACTION
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BCI Loss Monetization Transaction
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On April&nbsp;15, 2005,
3787915 Canada Inc., a
wholly-owned subsidiary of Bell Canada,
acquired $17&nbsp;billion in
preferred shares from 3787923
Canada Inc., a wholly-owned
subsidiary of BCI.
3787923 Canada Inc. used the
proceeds to advance $17&nbsp;billion
to BCI through a subordinated
interest-free loan. BCI then
advanced $17&nbsp;billion to
3787915 Canada Inc. by way of a
subordinated interest-bearing demand loan,
the funds being used to repay a daylight
loan granted to 3787915 Canada
Inc. to make the initial preferred share
investment. The dividend rate on the
preferred shares was equal to 5.1%,
which was essentially the same as the
interest rate on the loan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This transaction was unwound on August
18, 2005 and was
part of a tax loss consolidation strategy
that followed the transaction steps laid
out in an advance tax ruling granted by the
Canada Revenue Agency to Bell Canada and
BCI. The transaction also
received the approval of the Ontario
Superior Court of Justice, which is
supervising BCI&#146;s voluntary
plan of arrangement pursuant to which
BCI is monetizing its assets
and resolving outstanding claims against
it, with the ultimate objective of
distributing the net proceeds to its
shareholders and dissolving the company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3787915 Canada Inc. had
the legal right and intention to offset the
demand loan payable to BCI and
the investment in preferred shares of
3787923 Canada Inc. As a
result, these items and the related
interest expense and dividend income were
presented on a net basis. The tax savings
of $99&nbsp;million resulting from
the interest expense were presented as a
reduction of income tax expense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCI will be compensated
for the use of its losses by Bell Canada
through a capital contribution to be made
by BCE Inc. of 88%
of the realized tax savings.
BCE Inc.&#146;s ownership interest
in BCI
remains at 62%. As a
result:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> BCE Inc.&#146;s carrying value
of its investment in BCI was
increased to reflect the increase in
BCE Inc.&#146;s share of the
expected proceeds upon BCI&#146;s
eventual liquidation
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a charge
to other income was recorded to reflect the
non-controlling interest&#146;s portion of the
capital contribution to be made by
BCE Inc.
</DIV>

<DIV align="left">
<A name="134"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>EVALUATION OF DISCLOSURE CONTROLS
AND PROCEDURES</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">An evaluation of the effectiveness of
BCE Inc.&#146;s disclosure controls
and procedures (as defined in the rules of
the U.S. Securities and Exchange Commission
and of the Canadian Securities
Administrators) was carried out as of
December&nbsp;31, 2005
by BCE Inc.&#146;s management,
under the supervision and with the
participation of BCE Inc.&#146;s
President and Chief Executive Officer
( CEO ) and Chief Financial
Officer ( CFO ). Based on that
evaluation, the CEO and
CFO concluded that such
disclosure controls and procedures were
adequate and effective and designed to
ensure that material information relating
to BCE Inc. and its
consolidated subsidiaries would be made
known to them by others within those
entities.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

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




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 42 </I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</I>
</DIV>
<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">
<DIV align="left">
<A name="135"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Assumptions
Made in the
Preparation of
Forward-Looking
Statements and
Risks that Could
Affect Our Business
and Results</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This section
describes
assumptions made by
BCE in
preparing
forward-looking
statements and
general risks that
could affect all
BCE group
companies and
specific risks that
could affect
BCE Inc.
and certain other
BCE group
companies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A risk is the
possibility that an
event might happen
in the future that
could have a
negative effect on
the financial
condition, results
of operations or
business of one or
more BCE
group
companies. Part of
managing our
business is to
understand what
these potential
risks could be and
to minimize
them where we can.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because no one
can accurately
predict whether an
event that is only
possible will
actually happen or
what its
consequences may
be, the actual
effect of any event
on our business and
results could be
materially
different from what
we currently
anticipate. In
addition, this
description of
risks does not
include all
possible risks, and
there may be other
risks that we are
currently not aware
of.
</DIV>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>ASSUMPTIONS MADE IN THE PREPARATION OF
FORWARD-LOOKING STATEMENTS AND RISKS THAT
COULD AFFECT OUR BUSINESS AND RESULTS</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ASSUMPTIONS MADE IN THE PREPARATION OF
FORWARD-LOOKING STATEMENTS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Forward-looking statements for
2006 made in BCE&#146;s 2005
annual report, including in this
MD&#038;A, are based on a number of
assumptions that we believed were
reasonable on the day we made the
forward-looking statements. This section
outlines assumptions that we made in
addition to those set out in other sections
of this MD&#038;A. If our
assumptions turn out to be inaccurate, our
actual results could be materially
different from what we expect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Assumptions about the Canadian Economy
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Canadian GDP growth
of approximately 3% in
2006, which is consistent with
estimates by the Conference Board of Canada
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the business prime rate in
Canada to increase slightly from its
2005&nbsp;year-end level
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the Consumer Price Index (estimated
by Statistics Canada) to increase slightly
from its 2005&nbsp;year-end level.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Market Assumptions
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> growth in the overall Canadian
telecommunications market slightly higher
than GDP in 2006
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> continued decrease in the residential
voice telecommunications market in
2006 because more consumers are
expected to use wireless, e-mail and
instant messaging instead
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> increase in the wireline competition
in both the business and residential
telecommunications markets in
2006, mainly from cable
companies
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> growth in revenues
for the Canadian wireless industry in
2006 similar
to the rate of growth in 2005
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> growth in revenues for the Canadian
video market in 2006 slightly
lower than the rate of growth in 2005
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> growth in revenues for the
Canadian Internet market in 2006
also slightly lower than the rate of
growth in 2005.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Operational and Financial Assumptions
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Subscribers and Services</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> growth in the number of our
wireless, video and high-speed Internet
subscribers as well as higher ARPU
for these services are targeted in
2006
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> continued decrease
in our network access services is expected
in 2006, with significantly
higher declines in our Residential segment.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> significant cost savings are
targeted in 2006 as a result of
our Galileo program, including from
internal process redesign and supply
transformation
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> restructuring
costs are expected to result in 2006
mainly from reductions in our
workforce
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> amortization expense
is expected to increase in 2006
as a result of an increase in our
capital base, reflecting mainly the
capitalization of STB and
installation costs associated with the new
rental program in our video business unit,
the completion in 2005 of the
Alberta SuperNet and Telesat&#146;s new Anik
F1R and Anik F3
satellites
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> total net
benefit plans cost is expected to increase
in 2006 mainly as a result of a
further reduction in the discount rate from
6.2% in 2005 to
5.2% in 2006
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Bell Canada&#146;s capital intensity
is targeted to decrease in 2006
mainly as a result of anticipated
lower spending for maintenance of our
wireline and DSL networks which
is expected to be partly offset by
increased investment in our key strategic
priorities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Assumptions about Transactions
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> BCE Inc. plans to
repurchase 5.0% of its common
shares under its previously announced
normal course issuer bid
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> we
expect to complete the disposition of our
remaining interest in CGI Group
Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> we expect to reduce our equity
interest in Bell Globemedia from
68.5% to 20% as
announced on December 2,
2005. The expected closing of
the Bell Globemedia transaction is subject
to a number of approvals and closing
conditions, including approval by the
CRTC and the Competition
Bureau, and other closing conditions that
are customary in this type of transaction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> we expect to complete the
creation of a regional telecommunications
service provider in the form of an income
trust.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 43</I>
</DIV>


<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Increasing Competition</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Competition affects
our pricing
strategies and
could reduce our
revenues and lower
our profitability.
It could also
affect our ability
to retain existing
customers and
attract new ones.
We are under
constant pressure
to keep our prices
and service
offerings
competitive. We
need to be able to
anticipate and
respond quickly to
the constant
changes in our
businesses and
markets.
</DIV>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">RISKS THAT COULD AFFECT ALL
BCE GROUP COMPANIES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Bell Canada is our most important
subsidiary, which means our financial
performance depends in large part on how
well Bell Canada performs financially. The
risks that could affect Bell Canada and its
subsidiaries are more likely to have a
significant impact on our financial
condition, results of operations and
business than the risks that could affect
other BCE group companies.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Strategies and Plans
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We plan to achieve our business objectives
through various strategies and plans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2006, we plan to
continue to implement our strategy to
deliver unrivalled integrated communication
services to customers across Canada in the
most efficient and cost-effective manner.
This strategy is founded on the three key
pillars referred to earlier in this
MD&#038;A under <I>Our Strategic
Priorities </I>and is supported by our
four operating priorities for 2006
concerning service, customer
retention, growth services and costs, also
referred to under <I>Our Strategic
Priorities</I>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our strategic direction requires us to
transform our cost structure and the way in
which we serve customers. This means we
will need to:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> be responsive in
adapting to these changes and make any
necessary shifts in employee skills. If our
management, processes or employees are not
able
to adapt to these changes, our
business and financial results could be
materially and negatively affected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> invest capital to implement our
strategies and operating priorities. The
actual amount of capital required and the
returns from these investments could,
however, differ materially from our current
expectations. In addition, we may not have
access to capital on attractive terms when
we need it.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Not achieving our business objectives could
have a material and negative impact on our
financial performance and growth prospects.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Economic and Market Conditions
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our business is affected by general
economic conditions, consumer confidence
and spending, and the demand for, and
prices of, our products and services. When
there is a decline in economic growth and
in retail and commercial activity, there
tends to be a lower demand for our products
and services. During these periods,
customers may delay buying our products and
services, or reduce purchases or
discontinue using them.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weak economic conditions could lower
our profitability and reduce cash flows
from operations. They could also negatively
affect the financial condition and
creditworthiness of our customers, which
could increase uncertainty about our
ability to collect receivables and
potentially increase our bad debt expenses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Increasing Competition
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We face intense competition from traditional
competitors, as well as from new players
entering our markets. We compete with
telecommunications, media, television and
satellite service providers. We also compete
with other businesses and industries
including cable, software and Internet
companies, a variety of companies that offer
network services, such as providers of
business information systems, systems
integrators and other companies that deal
with, or have access to, customers through
various communications networks.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We already have several domestic and
foreign competitors, but the number of well
resourced foreign competitors with a
presence in Canada could increase in the
future. In recent years, the Government of
Canada has reviewed the foreign ownership
restrictions that apply to
telecommunications carriers and to
broadcasting distribution undertakings
( BDUs). Removing or
easing the limits on foreign ownership
could result in foreign companies entering
the Canadian market by making acquisitions
or investments. This could result in greater
access to capital for our competitors or the
arrival of new competitors with global
scale, which would increase competitive
pressure. We cannot predict what action, if
any, the federal government will take as a
result of these reviews. We also cannot
assess how any change in foreign ownership
restrictions may affect us because the
government continues to consider its
position on these matters.
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 44 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Wireline and Long Distance</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We experience significant competition
in the provision of long distance service
from dial-around providers, prepaid card
providers, VoIP
service providers and others, and
from traditional competitors such as
interexchange carriers and resellers. We
also face increasing cross-platform
competition as customers replace
traditional services with new technologies.
For example, our wireline business competes
with VoIP, wireless
and Internet services, including chat
services, instant messaging and e-mail.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are also facing increasing
competitive pressure from cable companies
as a result of their now offering voice
services over their networks. Since cable
companies only recently started offering
voice services, it is difficult to predict
the extent and timing of any resulting loss
in market share that we might suffer. It is
also difficult to predict to what degree
customers who stop using our voice services
will also stop using our other services
such as video and Internet access.
Additional competitive pressure is also
emerging from other competitors such as
electrical utilities. These alternative
technologies, products and services are now
making significant inroads in our legacy
services, which typically represent our
higher-margin business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Technology substitution, and
VoIP in particular,
have reduced barriers to entry in the
industry. This has allowed competitors with
far lower investments in financial,
marketing, personnel and technological
resources to rapidly launch new products
and services and gain market share. We
expect this trend to accelerate in the
future, which could materially and
negatively affect our financial
performance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Competition for contracts to supply
long distance services to large business
customers is very intense. Customers may
choose to switch to competitors that offer
lower prices to gain market share and are
less concerned about the quality of service
or impact on their margins.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These competitive factors suggest that
our legacy wireline accesses and long
distance volumes will continue to decline
in the future. Continued decline will lead
to reduced economies of scale in those
businesses and, in turn, lower margins. Our
strategy is to mitigate these declines by
building the business for newer growth
services. The margins on newer services,
however, will likely be less than the
margins on legacy services. If the legacy
services decline faster than the rate of
growth of our newer services, our financial
performance could be negatively and
materially affected. In addition, if a large portion of the
customers who stop using our voice services
also cease using our other services, our
financial performance could be negatively
and materially affected.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We compete with cable companies and
ISPs to provide broadband and
Internet access and related services. In
particular, cable companies have focused on
increased bandwidth and discounted pricing
on bundles to compete against us.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regional electrical utilities may
continue to develop and market services
that compete directly with Bell Canada&#146;s
Internet access and broadband services.
Developments in wireless broadband services
may also lead to increased competition in
certain geographic areas. This could
materially and negatively affect the
financial performance of our Internet
access services business.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Canadian wireless
telecommunications industry is also highly
competitive. We compete directly with other
wireless service providers that
aggressively introduce, price and market
their products and services. We also
compete with wireline service providers. We
expect competition to intensify as new
technologies, products and services are
developed.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Bell ExpressVu competes directly with
another
DTH satellite television
provider and with cable companies across
Canada. These cable companies have upgraded
their networks, operational systems and
services, which could improve their
competitiveness. This could materially and
negatively affect the financial performance
of Bell ExpressVu and Bell Canada.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Transforming Our Cost
Structure and Containing
Capital Intensity
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our strategies and operating priorities
require us to transform our cost structure.
Accordingly, we are intensifying the
implementation of several productivity
improvements and initiatives to reduce
costs while containing our capital
expenditures. Our objectives for cost
reduction under our new cost structure
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 45</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">are aggressive compared to what we
achieved in the past, and there is no
assurance that these initiatives will be
successful in reducing costs. There will be
a material and negative effect on our
profitability if we do not successfully
implement these cost reduction initiatives
and productivity improvements and manage
capital expenditures while maintaining the
quality of our service.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each year between 2002 and
2005, Bell Canada companies had
to reduce the price of certain services that
are subject to regulatory price caps and may
be required to do so again in the future.
They have also reduced their prices for some
business data services that are not
regulated in order to remain competitive,
and may have to continue doing so in the
future. Their profits will decline if they
cannot reduce their expenses at the same
rate. There would be a material and negative
effect on our profitability if market
factors, such as increasing competition or
regulatory actions, result in lower revenues
and we cannot reduce our expenses at the
same rate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Many productivity improvements and cost
reduction initiatives require capital
expenditures to implement systems that
automate or enhance our operations. There is
no assurance that these investments will be
effective in delivering the planned
productivity improvements and cost
reductions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Improved customer service is critical
to increasing customer retention and average
revenue per user. It may, however, be
difficult to improve customer service while
significantly reducing costs. If we are
unable to achieve either of these
objectives, it could have a material and
negative effect on our results of
operations.
</DIV>


<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Anticipating
Technological
Change and
Investing in New
Technologies,
Products and
Services</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We operate in
markets that are
affected by
constant
technological
change, evolving
industry standards,
changing client
needs, frequent
introductions of
new products and
services, and short
product life
cycles. The
investment in new
technologies,
products and
services and the
ability to launch,
on a timely basis,
such technologies,
products and
services are
critical to
increasing the
number of our
subscribers and
achieving our
targeted financial
performance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Liquidity</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our ability to meet
our financial
obligations and
provide for planned
growth depends on
our sources of
liquidity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our cash
requirements may be
affected by the
risks associated
with our
contingencies,
off-balance sheet
arrangements,
derivative
instruments and
assumptions built
into our business
plan.
</DIV>




</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Anticipating Technological Change and
Investing in New Technologies, Products and
Services
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our success will depend in large
part on how well we can anticipate and
respond to changes in industry standards
and client needs, and how quickly and
efficiently we can introduce new products,
services and technologies, and upgrade
existing ones.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may face additional financial risks
as we develop new products, services and
technologies, and update our networks to
stay competitive. Newer technologies, for
example, may quickly become obsolete or may
need more capital than expected.
Development could be delayed for reasons
beyond our control. Substantial investments
usually need to be made before new
technologies prove to be commercially
viable. There is also
a significant risk that current regulation
could be expanded to apply to newer
technologies. A regulatory change could
delay our launch of new services and
restrict our ability to market these
services if, for example, new pricing rules
or marketing or bundling restrictions are
introduced, or existing ones are extended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bell Canada companies are in the
process of moving traffic on their core
circuit-based infrastructure to IP
technology. As part of this move, the
Bell Canada companies are in the process of
discontinuing certain services that are
based on circuit-based infrastructure. This
is a necessary component of improving
capital and operating efficiencies. In some
cases, this could be delayed or prevented
by customers or regulatory actions. If the
Bell Canada companies cannot discontinue
these services as planned, they will not be
able to achieve the efficiencies as
expected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There is no assurance that we will be
successful in developing, implementing and
marketing new technologies, products,
services or enhancements in a reasonable
time, or that they will have a market. There
is also no assurance that efficiencies will
increase as expected. New products or
services that use new or evolving
technologies could make our existing ones
unmarketable or cause prices to fall.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Liquidity
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In general, we finance our capital needs in
four ways:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> from cash generated
by our operations or investments
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> by borrowing from commercial banks
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> through debt and equity
offerings in the capital markets
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> by selling or otherwise disposing of
assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Financing through equity offerings would
dilute the holdings of existing equity
investors. An increased level of debt
financing could lower our credit ratings,
increase our borrowing costs and give us
less flexibility to take advantage of
business opportunities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our ability to raise financing depends
on our ability to access the capital
markets and the syndicated commercial loan
market. The cost of funding depends largely
on market conditions, and the outlook for
our business and credit ratings at the time
capital is raised. If our credit ratings
are downgraded, our cost of funding could
significantly increase. In addition,
participants in the capital and syndicated
commercial loan markets have internal
policies limiting their ability
to
</DIV>

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</DIV>



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</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">invest in, or extend credit to, any
single borrower or group of borrowers or to
a particular industry.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCE Inc. and some of its
subsidiaries have entered into renewable
credit facilities with various financial
institutions. They include credit
facilities supporting commercial paper
programs. There is no assurance that these
facilities will be renewed on favourable
terms.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We need significant amounts of cash to
implement our business plan. This includes
cash for capital expenditures to provide
our services, dividend payments and payment
of our contractual obligations, including
repayment of our outstanding debt.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our plan in 2006 is to
generate enough cash from our operating
activities to pay for capital expenditures
and dividends. We expect to pay contractual
obligations maturing in 2006
from cash
on hand, from cash generated from our
operations or by issuing debt. If actual
results are different from our business
plan or if the assumptions in our business
plan change, we may have to raise more
funds than expected by issuing debt or
equity, borrowing from banks or selling or
otherwise disposing of assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we cannot raise the capital we need
upon acceptable terms, we may have to:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> limit our ongoing capital
expenditures
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> limit our
investment in new businesses
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> try to raise additional capital by
selling or otherwise disposing of assets.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any of these could have a material and
negative effect on our cash flow from
operations and on our growth prospects.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Acquisitions and Dispositions
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our growth strategy includes making
strategic acquisitions and entering into
joint ventures. We also from time to time
dispose of assets or all or part of certain
businesses. There is no assurance that we
will find suitable companies to acquire or
to partner with, or that we will have the
financial resources needed to complete any
acquisition or to enter into any joint
venture. There could also be difficulties
in integrating the operations of acquired
companies with our existing operations or
in operating joint ventures.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There is also no assurance that we will
be able to complete any announced
dispositions or that we will use the funds
received as a result of such dispositions
for any specific purpose that may be
publicly anticipated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisitions and dispositions may be
subject to various conditions, such as
approvals by regulators and holders of our
securities and other closing conditions, and
there can be no assurance that, with respect
to any specific acquisition or disposition,
all such conditions will be satisfied.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Litigation, Regulatory Matters and Changes
in Laws
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Pending or future litigation,
regulatory initiatives or regulatory
proceedings (including the increase of
class action claims) could have a material
and negative effect on our businesses,
operating results and financial condition.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in laws or regulations or in
how they are interpreted, and the adoption
of new laws or regulations, could also
materially and negatively affect us. This
includes changes in tax laws or the adoption
of new tax laws that result in higher tax
rates or new taxes. It also includes the
amendments
to the <I>Securities Act of Ontario</I>
that took effect December
31, 2005. These
amendments introduced statutory civil
liability for misrepresentations in
continuous disclosure and failure to
disclose material changes on a timely basis,
and could result in an increase in the
number of securities class action claims.
BCE could have to devote
considerable management time and resources
to responding to such securities class
action claims.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Funding and Control of Subsidiaries
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If BCE Inc. or Bell Canada
decides to stop funding any of its
subsidiaries and that subsidiary does not
have other sources of funding, this would
have a material and negative effect on the
subsidiary&#146;s results of operations and
financial condition and on the value of its
securities. It could also have, depending
on factors such as the size or strategic
importance of the subsidiary, a material
and negative effect on the results of
operations and financial condition of
BCE Inc. or Bell Canada.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, BCE Inc. and
Bell Canada do not have to remain the
majority holder of, or maintain their
current level or nature of ownership in,
any subsidiary, unless they have agreed
otherwise. An announcement of a decision by
BCE Inc. or Bell Canada to
change the nature of its investment in a
subsidiary, to dispose of some or all of
its interest in a subsidiary, or any other
similar decision could have a material and
negative effect on the subsidiary&#146;s results
of operations and financial condition and
on the value of its securities.
</DIV>


<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Litigation,
Regulatory Matters
and Changes in Laws</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For a description
of the principal
legal proceedings
involving us,
please see <I>Legal Proceedings
We Are Involved In</I>,
in the BCE 2005
A1F.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For a
description of
certain regulatory
initiatives and
proceedings
affecting the Bell
Canada companies,
please see <I>The
Regulatory
Environment We
Operate In</I>, in the
BCE 2005 A1F.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Funding and
Control of
Subsidiaries</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BCE Inc.
and Bell Canada are
currently funding,
directly or
indirectly, and may
in the future
continue to fund,
the operating
losses of some of
their subsidiaries,
but they are under
no obligation to
continue doing so.
</DIV>



</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>




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

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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 47</I>
</DIV>

<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Renegotiating
Labour Agreements</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Approximately
47% of our
employees are
represented by
unions and are
covered by
collective
agreements.
</DIV>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If BCE Inc. or Bell
Canada stops funding a subsidiary, changes
the nature of its investment or disposes of
all or part of its interest in a
subsidiary, stakeholders or creditors of
the subsidiary might decide to take legal
action against BCE Inc. or Bell
Canada. For example, certain members of the
lending syndicate of Teleglobe, a former
subsidiary of BCE Inc., and
other creditors of Teleglobe have launched
lawsuits against BCE Inc.
following its decision to stop funding
Teleglobe. You will find a description of
these lawsuits in the BCE 2005 AIF
under <I>Legal Proceedings We Are
Involved In </I>. While we believe that
these kinds of
claims have no legal foundation, they
could negatively affect the market price of
BCE Inc.&#146;s or Bell Canada&#146;s
securities. BCE Inc. and Bell
Canada could also have to devote
considerable management time and resources
to respond to such a claim.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Pension Fund Contributions
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have not had to make regular
contributions to our pension funds in
recent years because most of our pension
plans have had pension fund surpluses.
However, historically low interest rates
combined with new actuarial standards that
came into effect in February&nbsp;2005
have eroded the pension fund
surpluses. This has negatively affected our
net earnings and liquidity. We expect to
contribute approximately $470
million to our defined benefit
pension plans in 2006, subject
to actuarial valuations being completed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The funding status of our pension
plans resulting from future valuations of
our pension plan assets and liabilities
depends on a number of factors, including:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> actual returns on pension plan
assets
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> long-term interest
rates.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These factors could require us to
increase contributions to our defined
benefit pension plans in the future and
therefore could have a material and
negative effect on our liquidity and
results of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Renegotiating Labour Agreements
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Renegotiating collective agreements could
result in higher labour costs and work
disruptions, including work stoppages or
work slowdowns. Difficulties in
renegotiations or other labour unrest could
significantly hurt our business, operating
results and financial condition.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There can be no assurance that if a
strike occurs, it would not disrupt service
to Bell Canada&#146;s customers. In addition,
work disruptions at our service providers,
including work slowdowns and work stoppages
due to strikes, could significantly hurt
our business, including our customer
relationships and results of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Events Affecting Our Networks
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Network failures could materially hurt our
business, including our customer
relationships and our operating results.
Our operations depend on how well we
protect our networks, equipment,
applications and the information stored in
our data centres against damage from fire,
natural disaster,
power loss, hacking, computer viruses,
disabling devices, acts of war or terrorism
and other events. Our operations also
depend on timely replacement and
maintenance of our networks and equipment.
Any of these events could cause our
operations to be shut down indefinitely.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our networks are connected with the
networks of other telecommunications
carriers, and we rely on them to deliver
some of our services. Any of the events
mentioned in the previous paragraph, as well
as strikes or other work disruptions,
bankruptcies, technical difficulties or
other events affecting the networks of these
other carriers, could also hurt our
business, including our customer
relationships and our operating results.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Software and System Upgrades
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Many aspects of our business, such as
providing telecommunication services and
customer billing, among others, depend to a
large extent on various IT
systems and software, which must be
improved and upgraded regularly and
replaced from time to time. Implementing
system and software upgrades and
conversions is a very complex process,
which may have several adverse consequences
including billing errors and delays in
customer service. Any of these events could
significantly damage our customer
relationships and business and have a
material and negative effect on our results
of operations.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>


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

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 48 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</I>
</DIV>

<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Holding Company Structure</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BCE Inc. is
a holding company.
That means it does
not carry on any
significant
operations and has
no major sources of
income or assets of
its own, other than
the interests it
has in its
subsidiaries, joint
ventures and
significantly
influenced
companies.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Stock Market Volatility</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The stock markets
have experienced
significant
volatility over the
past few years,
which has affected
the market price
and trading volumes
of the shares of
many
telecommunications
companies in
particular.
</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Regional Telecommunications Service Provider
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have proposed forming a new regional
telecommunications service provider in the
form of an income trust which would combine
Bell Canada&#146;s regional wireline
operations with Aliant&#146;s wireline
operations. The new income trust would also
own Bell Canada&#146;s 63.4%
interest in NorthernTel and T&#233;l&#233;bec.
Completion of this transaction is subject
to a number of conditions that include,
among others:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> receiving advance
income tax rulings from the Canada Revenue
Agency
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> receiving approval from
the CRTC
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> receiving an advance ruling
certificate from the Competition Bureau
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> receiving approvals from the
appropriate securities commissions,
regulators and stock exchanges
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> receiving required third party
consents on satisfactory terms
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> receiving required approvals from
Aliant&#146;s shareholders
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> receiving
necessary court approvals
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> arranging satisfactory bank
financing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The proposed transaction involves the
integration of various operations
previously operated independently and there
can be no assurance that the resulting
combined operation will realize the
anticipated synergies or that other
benefits expected from the transaction will
be realized.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although our goal is to complete the
proposed transaction without affecting our
customers or future customers of the trust,
there can be no assurance that the proposed
transaction will not result in customer
service disruptions. Customer service
disruptions may have a negative effect on
our operations and financial results, and
those of the trust in particular.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although we expect the trust to make
regular cash distributions to unitholders,
these are not assured and may be reduced or
suspended. The ability of the trust to
maintain cash distributions will be subject
to certain risks associated with its
business and operations, including risks
relating to:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> general economic
conditions
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> increasing
competition
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> changes in
technology, industry standards and client
needs
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the trust&#146;s ability to quickly
and efficiently introduce new products,
services and technologies and upgrade
existing ones in response to these changes
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the impact of pending or future
litigation or regulatory proceedings or
changes in laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If the trust does not meet its targets for
cash distributions, the value of its units
could decline substantially.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Following the closing of the proposed
transaction, BCE expects
to reduce its indirect interest in the
trust through a distribution of trust units
to holders of BCE Inc. common
shares. The distribution of trust units by
BCE is subject to various
conditions including approval by BCE
Inc.&#146;s shareholders and necessary
court approvals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Telesat
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We expect the proposed recapitalization and
public offering of a minority stake in
Telesat to take several months to complete.
During this time, the rapid pace of change
in the industry and the potential for
regulatory developments and/or changes in
laws may make the proposed recapitalization
and public offering less favourable, or
other transactions and opportunities may
emerge that for business reasons BCE
Inc. considers to be more attractive.
Business reasons could include the
availability of financing on acceptable
terms and the condition of relevant capital
markets, among others. There is no
assurance that the proposed
recapitalization and public offering for
Telesat will be completed in its current
form or at all.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">RISKS THAT COULD AFFECT BCE INC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Holding Company Structure
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BCE Inc.&#146;s cash flow and its
ability to service its debt and to pay
dividends on its shares depend on dividends
or other distributions it receives from its
subsidiaries, joint ventures and
significantly influenced companies and, in
particular, from Bell Canada. BCE
Inc.&#146;s subsidiaries, joint ventures
and significantly influenced companies are
separate legal entities and they have no
legal obligation to pay dividends or make
other distributions to BCE Inc.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>


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

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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 49</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Stock Market Volatility
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Differences between BCE Inc.&#146;s
actual or anticipated financial results and
the published expectations of financial
analysts may also contribute to volatility
in BCE Inc.&#146;s common shares. A
major decline in the capital markets in
general, or an adjustment in the market
price or trading volumes of BCE
Inc.&#146;s common shares or other
securities, may materially and negatively
affect our ability to raise capital, issue
debt, retain employees, make strategic
acquisitions or enter into joint ventures.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">RISKS THAT COULD AFFECT CERTAIN
BCE GROUP COMPANIES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Bell Canada Companies
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Changes to Wireline Regulation</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Decisions of Regulatory Agencies
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Second Price Cap Decision</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In May&nbsp;2002, the
CRTC issued decisions relating
to new price cap rules that govern
incumbent telephone companies for the
four-year period starting in June
2002.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The CRTC also
established the deferral account, an
obligation that changes as amounts are
added to the account, or the CRTC
approves initiatives that serve to
reduce the account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The accumulated deferral account
balance in Bell Canada&#146;s and Aliant&#146;s
deferral accounts at the end of May
31, 2006 is
estimated at $480.5&nbsp;million for
Bell Canada and $21.8&nbsp;million
for Aliant, while the future annualized
recurring deferral account obligation as of
the same date is estimated at $81.5
million for Bell Canada and
$2.2&nbsp;million for Aliant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February&nbsp;16,
2006, the CRTC
issued Telecom Decision 2006-9,
where it concluded that incumbent
telephone companies should clear the
accumulated balances in their deferral
accounts, to the greatest extent possible,
in the following ways:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> by
expanding broadband services to rural and
remote areas that are currently unserved and
would not otherwise be served
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> by
improving the accessibility to
telecommunications services for persons with
disabilities, using a minimum of 5.0%
of incumbent telephone companies&#146;
deferral account balances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Incumbent telephone companies have been
directed to file their proposals related to
the above by June&nbsp;30,
2006. Any amounts remaining in
incumbent telephone companies&#146; deferral
accounts after accounting for these two
programs will be rebated to incumbent
telephone companies&#146; residential local
customers in non-high cost serving areas.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There is a risk that Bell Canada&#146;s and
Aliant&#146;s proposed implementation timeframes
may be accelerated, which could have a
material and negative effect on their
results of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Competitor Digital Network Service</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The CRTC determined that
CDN services should include not
only digital network access components but
also intra-exchange facilities,
inter-exchange facilities in certain
metropolitan areas, and channelization and
co-location links (expanded CDN
services). This decision affected
Bell Canada and Aliant as providers of
CDN services in their own
operating territories and as purchasers of
those services elsewhere in Canada.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are two important financial
aspects to note in this decision:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
the prices for all CDN
services were applied on a
going-forward basis, as of the date of the
decision, and Bell Canada will be
compensated from the deferral account for
the revenue losses from this decision
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Bell Canada will also be
compensated through the deferral account
for applying reduced rates retroactively
for the CDN access components
that were tariffed at interim rates prior
to the decision.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Retail Quality of Service Indicators</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On March&nbsp;24,
2005, the CRTC
released Telecom Decision
2005-17 which, among other
things, established the rate adjustment plan
to be applied when incumbent telephone
companies do not meet mandated standards of
quality of service provided to their retail
customers. As a result of this decision,
incumbent telephone companies are subject to
a penalty mechanism when they do not meet
one or more service standards for their
retail services. For Bell Canada, this
maximum potential penalty amount equates to
approximately $245&nbsp;million
annually, based on 2004
revenues.
</DIV>


<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Decisions of Regulatory Agencies</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The business of the
Bell Canada
companies is
affected by
decisions made by
various regulatory
agencies, including
the CRTC.
For example, many
of the decisions of
the CRTC
indicate that
they try to balance
requests from
competitors for
access to
facilities, such as
the
telecommunications
networks, switching
and transmission
facilities, and
other network
infrastructure of
incumbent telephone
companies, with the
rights of the
incumbent telephone
companies to
compete reasonably
freely. There is a
risk that decisions
of the
CRTC, and
in particular the
decisions relating
to prices at which
we must provide
such access, may
have a negative
effect on our
business and
results of
operations.
Decisions of, and
proceedings
involving,
regulatory agencies
including the
CRTC are
described in more
detail in the
section entitled
<I>The Regulatory
Environment We
Operate In </I>of the
BCE 2005
AIF.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Competitor Digital
Network Service</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On February
3,
2005, the
CRTC
released
Telecom Decision
2005-6 on
CDN
services. This
decision set the
rates, terms and
conditions for the
provision of
digital network
services by Bell
Canada and the
other incumbent
telephone companies
to their
competitors.
</DIV>

</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 50 </I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the current penalty period of
January 1 to December&nbsp;31,
2005, the CRTC
standard for several indicators was
not met on an annual average basis because
of the strike in 2005 by the
Communications, Energy and Paperworkers&#146;
Union of Canada at Bell Canada&#146;s supplier
of installation and repair services, Bell
Technical Solutions Inc. (formerly
Entourage Technology Solutions Inc.). Bell
Canada has requested that the CRTC
approve its December 5,
2005 application for the
purpose of excluding below-standard
strike-related results as a <I>force
majeure </I>type exclusion. However,
there is no assurance that the CRTC
will issue a favourable decision and
Bell Canada may be required to pay a
penalty of up to $19&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The CRTC determined that
Aliant did not meet certain service
standards during the period of January
1 to December&nbsp;31,
2004. Applying the rate
adjustment plan would result in an
estimated penalty of $3
million. Aliant has applied to the
CRTC for an exclusion from
having to pay a penalty due to its labour
disruption in 2004, as allowed
for in the decision. The CRTC
has not yet ruled on this
application. Regarding the penalty period
of January 1 to December
31, 2005, the
CRTC standard for two
indicators was missed on an annual average
basis, resulting in a possible penalty of
approximately $2&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Decision of VoIP Regulation</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On May&nbsp;12,
2005, the CRTC
released Telecom Decision
2005-28, which determined the
way the CRTC will regulate
VoIP services. The
CRTC determined that
VoIP services
(other than peer-to-peer services, defined
in the decision as Internet Protocol
communications services between two
computers) provided by Bell Canada and
other incumbent telephone companies will be
regulated in the same way as traditional
telephone services.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of this decision,
VoIP services that
use telephone numbers that conform to the
North American numbering plan, and that
provide universal access to and/or from the
public switched telephone network will, for
incumbent telephone companies, be treated as
regulated local exchange services.
Accordingly, tariffs have to be filed by
incumbent telephone companies, but not by
their competitors, when they provide
customers with local VoIP
services using a telephone number
associated with that incumbent telephone
company&#146;s territory. In addition, the
winback rules will apply, which means that
incumbent telephone
companies cannot attempt to directly contact
a former residential local service customer
for a period of 12&nbsp;months from
the time the customer decides to buy
traditional local telephone service or
VoIP service from a
competitor. Other restrictions on promotions
and bundling that apply to traditional local
wireline services also apply to
VoIP. These
regulatory requirements could reduce Bell
Canada&#146;s and Aliant&#146;s flexibility to compete
with both traditional and new competitors,
which could have a material and negative
effect on our business and results of
operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Also as a result of Telecom Decision
2005-28, incumbent telephone
companies as well as competitive local
exchange carriers will have to fulfill, in
relation to VoIP
services, other requirements that
apply to traditional telephone services,
such as:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> allowing customers to
keep their local number when they change
service providers within the same local
area (local number portability)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> allowing customers to use any long
distance provider of their choice
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> listing telephone numbers in the
directory associated with the local
telephone number chosen by the
customer
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> offering services for
the hearing impaired
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> implementing safeguards to protect
customer privacy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">These regulatory requirements could
increase operational costs and reduce Bell
Canada&#146;s and Aliant&#146;s flexibility to
compete with resellers, and could therefore
have a negative effect on our business and
results of operations. Bell Canada and
several other parties have petitioned the
Governor in Council to overturn the
CRTC&#146;s decision.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2005, Bell Canada
introduced three retail
VoIP services in
Qu&#233;bec and Ontario. These services are
offered pursuant to tariffs that have
received interim approval from the
CRTC. CRTC public
processes relating to these filings were
held in 2005 and decisions on
final approval of the tariffs are expected
in March&nbsp;2006. The   CRTC
has, on an interim basis, permitted
Bell Canada to file VoIP
tariff notices for the
CRTC&#146;s approval, on a
confidential basis, which provide for
minimum and maximum rates associated with
each proposed VoIP
service plan. Once the minimum and
maximum rates are approved, for all future
price changes within that range, Bell
Canada can issue new tariff pages on their
effective date. No additional CRTC
approvals are required for price
changes within the ranges. The CRTC
has also, on an interim basis,
permitted Bell Canada to price its Bell
Digital Voice
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 51</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">service differently on a
province-wide basis in
Ontario and Qu&#233;bec. A final decision from
the CRTC regarding these tariff
notices could result in a different
outcome, and could therefore have a
negative effect on our business and results
of operations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Forbearance from Regulation of Local Exchange Services</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The CRTC conducted a
public proceeding in 2005 on a
framework for forbearance from the
regulation of residential and business
local exchange services offered by the
incumbent telephone companies. The
CRTC plans to issue a decision
with respect to this matter in March
2006. Bell Canada&#146;s and the
other incumbent telephone companies&#146;
flexibility to compete could be adversely
affected in the event that the
CRTC, in its decision,
establishes onerous conditions to be
satisfied in order for the incumbent
telephone companies to obtain regulatory
forbearance of residential and business
local exchange services.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Price Floor Safeguards for Retail Services</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On April&nbsp;29,
2005, the CRTC
issued its decision on price floor
safeguards and related issues. A price
floor safeguard is the minimum price that
an incumbent telephone company can charge
for regulated services.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In its decision, the CRTC
made changes which, in some
circumstances, may result in future higher
price floors for new services and bundles
that could negatively limit Bell Canada&#146;s
ability to compete.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Application to Change Bundling Rules</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On September 2,
2005, Bell Canada applied to
the CRTC to modify the bundling
rules that apply to customer-specific
arrangements ( CSAs).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The CRTC currently
requires any CSA that includes
both tariffed and non-tariffed services
(Mixed CSAs) to be filed for
approval with the CRTC before
it can be provided to customers. Bell
Canada&#146;s proposal would exempt a Mixed
CSA from the bundling rules and
associated tariff requirements if:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
total revenue from the CSA
is higher than the price of the
tariffed components of the CSA
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the CSA is not part
of a practice designed to circumvent
tariffs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Bell Canada&#146;s flexibility to compete may
continue to be encumbered if the proposal
is not approved.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Bell Canada Proposals to Telecom Policy Review Panel</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On April&nbsp;11, 2005,
the Minister of Industry announced the
creation of the Telecom Policy Review Panel
(Panel) to review Canada&#146;s
telecommunications policy and regulatory
framework, and make recommendations. The
Government of Canada had asked the Panel to
deliver a final report by the end of
2005 but the report has been
delayed and it is not clear when it will be
released to the public.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On August&nbsp;15,
2005, Bell Canada submitted its
recommendations to the Panel including a
proposal for the adoption of a comprehensive
&#145;next generation&#146; regulatory framework that
relies on market forces to the maximum
extent possible to ensure the
telecommunications industry&#146;s continued role
as a key enabler of Canada&#146;s overall
economic performance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There can be no guarantee that the
Panel will adopt any or all of Bell
Canada&#146;s proposals, or that the Minister of
Industry and Parliament would implement the
Panel&#146;s recommendations regardless of its
adoption of Bell Canada&#146;s proposals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A number of groups have intervened to
the Panel, opposing the regulatory reforms
suggested by Bell Canada and advocating
different reforms including significantly
expanding the scope of wholesale regulation
of Bell Canada&#146;s and other incumbent
telephone companies&#146; facilities. There is a
risk that the Panel could follow those
recommendations and propose that they be
adopted by the Minister of Industry and
Parliament. Implementation of the
recommendations and proposals of opposing
parties could have a material and negative
effect on the Bell Canada companies.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Access to Bell Canada Loops for
Competitor Local Exchange Carriers&#146;
Customers Served Via Remotes</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On September 2,
2005, Rogers Telecom Inc.
(Rogers) submitted an application
requesting that the CRTC direct
Bell Canada to make unbundled loops
available to competitors in a timely manner
in certain specified areas where Rogers is
present. On October 3,
2005, Bell Canada responded to
Rogers&#146; application and explained the
reasons why in some areas where competitors
are present and the competitors&#146; potential
end customer is served via a Bell Canada
remote, unbundled loops should not have to
be provided unless Bell Canada is
compensated by competitors for the costs it
incurs
on their behalf.
</DIV>

<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Application to
Change Bundling
Rules</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CSAs are
arrangements
tailored to a
particular
customer&#146;s needs
for the purpose of
customizing the
offering in terms
of rate structure
and levels.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Access to Bell
Canada Loops for
Competitor Local
Exchange Carriers&#146;
Customers Served
Via Remotes</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Unbundled loops are
transmission paths
between the users&#146;
premises and the
central office that
are provided
separately from
other components.
</DIV>

</DIV>

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</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 52 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</I>
</DIV>


<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Wireless Number Portability</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Government of
Canada in its
2005 Budget
announced that it
intended to ask the
CRTC to
implement wireless
number portability.
Number portability
enables customers
to retain the same
phone number when
changing service
provider within the
same local serving
area.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Licences and
Changes to Wireless
Regulation</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Companies must have
a spectrum licence
to operate
cellular, PCS
and other
radio-telecommunications systems in
Canada. The
Minister of
Industry awards
spectrum licences,
through a variety
of methods, at his
or her discretion
under the
<I>Radiocommunication
Act</I>.
</DIV>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The cost to equip Bell Canada&#146;s
network in order to provide unbundled loops
to competitors in locations where a
potential competitor&#146;s end customer is
currently served via a Bell Canada remote
could be significant should the CRTC
grant Rogers&#146; request. It is
anticipated that the CRTC will
institute a further process to examine this
matter prior to rendering a decision.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Wireless Number Portability</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On December&nbsp;20,
2005, the CRTC
released Telecom Decision
2005-72. Among other things, the
decision directed Bell Mobility, Rogers
Wireless and TELUS Mobility to
implement wireless number portability in
Alberta, British Columbia, Ontario and
Qu&#233;bec by March&nbsp;14,
2007. This accelerated timeframe
will be challenging for Bell Mobility and
the rest of the wireless industry to meet.
On February 6, 2006,
the CRTC issued Telecom Public
Notice 2006-3, <I>Regulatory
issues related to the implementation of
wireless number portability</I>, a
proceeding that will address a wide range of
issues associated with the
implementation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Licences and Changes to Wireless Regulation</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">While we expect that the licences
under which the Bell Canada companies
provide cellular and PCS
services will be renewed at term,
there is no assurance that this will
happen. Industry Canada can revoke a
company&#146;s licence at any time if the
company does not comply with the licence&#146;s
conditions. While we believe that we comply
with the conditions of our licences, there
is no assurance that Industry Canada will
agree. Should there be a disagreement, this
could have a material and negative effect
on the Bell Canada companies.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In February&nbsp;2005, Industry
Canada released a report concerning its
procedures for approving and placing
wireless and radio towers in Canada,
including the role of municipal authorities
in the approval process. Among other things,
the report recommends that the authority to
regulate the siting of antennae and
supporting structures remain exclusively
with the Government of Canada. In August
2005, Industry Canada presented
a revised draft policy for comment. The
wireless and broadcasting industries both
have a number of concerns with the draft
policy and are now working with Industry
Canada to attempt to
resolve these concerns. It is not possible
to predict at this time if or when the final
policy will be issued. If the final policy
requires more municipal or public
consultation in the approval process, there
is a risk that it could significantly slow
the expansion of wireless networks in
Canada. This could have a material and
negative effect on the operations of the
Bell Canada companies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Revenue from Major Customers</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A significant amount of revenue
earned by Bell Canada&#146;s Enterprise unit
comes from a small number of major
customers. If we lose contracts with any of
these major customers and cannot replace
them, it could have a material and negative
effect on our financial results.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Competition Bureau&#146;s
Investigation</I>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Concerning
System Access Fees</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On December 9,
2004, Bell Canada was notified
by the Competition Bureau that the
Commissioner of Competition had initiated an
inquiry under the misleading advertising
provisions of the <I>Competition Act</I>
concerning Bell Mobility&#146;s description
or representation of system access fees
( SAFs) and was served with a
court order, under section 11 of
the <I>Competition Act</I>, compelling
Bell Mobility to produce certain records and
other information that would be relevant to
the Competition Bureau&#146;s investigation. Bell
Canada has complied with the court order and
provided the requested information.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell Mobility charges
monthly SAFs to its
cellular subscribers to help it recover
certain costs associated with its mobile
communications network. These costs include
maintenance costs, the cost of installing
new equipment and retrofitting new
technologies, and fees for spectrum
licences. These costs also include the
recovery of the contribution tax the
CRTC charges to support
telephone services in rural and remote areas
of Canada.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell Mobility may be subject to
financial penalties by way of fines,
administrative monetary penalties and/or
demands for restitution of a portion of the
SAFs charged to cellular
subscribers if it is found to have
contravened the misleading advertising
provisions of the <I>Competition
Act </I>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 53</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Potential
Legislation Restricting<BR>
In-Vehicle Use of
Cellphones</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Some studies suggest that using
cellphones while driving may result in more
motor vehicle collisions. It is possible
that this could lead to new regulations or
legislation banning the use of handheld
cellphones while driving, as it has in
Newfoundland and Labrador and in several
U.S. states, or other restrictions on
in vehicle use of wireless devices. If any
of these happen, cellphone use in vehicles
may decline, which may negatively affect
the business of the Bell Canada companies.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Health Concerns About Radio Frequency Emissions</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">It has been suggested that some radio
frequency emissions from cellphones may be
linked to certain medical conditions.
Interest groups have also requested
investigations into claims that digital
transmissions from handsets used with
digital wireless technologies pose health
concerns and cause interference with
hearing aids and other medical devices.
This could lead to additional government
regulation, which could have a material and
negative effect on the business of the Bell
Canada companies. In addition, actual or
perceived health risks of wireless
communications devices could result in
fewer new network subscribers, lower
network usage per subscriber, higher churn
rates, product liability lawsuits or less
outside financing being available to the
wireless communications industry. Any of
these would have a negative effect on the
business of the Bell Canada companies.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Bell ExpressVu
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Satellites are subject to significant
risks. Any loss, failure, manufacturing
defects, damage or destruction of these
satellites, of Bell ExpressVu&#146;s terrestrial
broadcasting infrastructure, or of
Telesat&#146;s tracking, telemetry and control
facilities to operate the satellites, could
have a material and negative effect on Bell
ExpressVu&#146;s results of operations and
financial condition.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell ExpressVu is subject to
programming and carriage requirements under
CRTC regulations. Changes to the
regulations that govern broadcasting could
negatively affect Bell ExpressVu&#146;s
competitive position or the cost of
providing its services. Bell ExpressVu&#146;s
DTH satellite television
distribution undertaking
licence was renewed in March&nbsp;2004
and expires on August&nbsp;31,
2010. While we expect this
licence will be renewed at term, there is no
assurance that this will happen.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell ExpressVu continues to face
competition from unregulated U.S. DTH
satellite television services that
are sold illegally in Canada. In response,
it is participating in legal actions that
are challenging the sale of U.S. DTH
satellite television equipment in
Canada. This competition could have
a material and adverse impact on Bell
ExpressVu&#146;s business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell ExpressVu faces a loss of revenue
resulting from the theft of its services.
Bell ExpressVu introduced a smart card swap
for its authorized digital receivers that is
designed to block unauthorized reception of
Bell ExpressVu&#146;s signals. As with any
technology-based security system, it is not
possible to eliminate with absolute
certainty a compromise of that security
system. As is the case for all other pay
television providers, Bell ExpressVu has
experienced, and continues to experience,
ongoing efforts to steal its services by way
of compromise of Bell ExpressVu&#146;s signal
security systems.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October&nbsp;28, 2004, the Court of Qu&#233;bec ruled in
<I>R. v. D&#146;Argy and Theriault (D&#146;Argy
Case) </I>that the provisions in the
<I>Radiocommunication Act </I>making it
a criminal offence to manufacture, offer for
sale or sell any device used to decode an
encrypted subscription signal relating to
the unauthorized reception of satellite
signals violate the freedom of expression
rights enshrined in the <I>Charter</I>.
On March&nbsp;31, 2005,
the Qu&#233;bec Superior Court overruled the
Court of Qu&#233;bec&#146;s decision in the
<I>D&#146;Argy Case </I>and upheld the
constitutional validity of those provisions
in the
<I>Radiocommunication Act</I>. The
defendants in the <I>D&#146;Argy Case</I>
have been granted leave to appeal the
ruling of the Qu&#233;bec Superior Court to the
Qu&#233;bec Court of Appeal. It remains a
criminal offence throughout Canada to
manufacture, offer for sale or sell any
device used to engage in the unauthorized
reception of satellite signals. If the
ruling of the Qu&#233;bec Superior Court is
overruled by the Qu&#233;bec Court of Appeal and
Parliament does not enact new provisions
criminalizing the unauthorized reception of
satellite signals, Bell ExpressVu may face
increasing loss of revenue from the
unauthorized reception of satellite signals.
</DIV>

<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Bell ExpressVu</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Bell ExpressVu
currently uses four
satellites, Nimiq
1, Nimiq
2, Nimiq
3 and Nimiq
4-Interim, for
its video services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Nimiq
4-Interim
became operational
at the end of
February
2006.
Telesat, a
wholly-owned
subsidiary of
BCE Inc.,
operates or directs
the operation of
these satellites.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please see
<I>Risks that Could
Affect Certain
BCE Group
Companies &#151;Telesat</I>
for more
information on the
risks relating to
Telesat&#146;s
satellites.
</DIV>

</DIV>
<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

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




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 54 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</I>
</DIV>

<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Operational
Risks Due to
Various Types of
Potential Anomalies</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Satellites utilize
highly complex
technology and
operate in the
harsh environment
of space and
therefore are
subject to
significant
operational risks
while in orbit. The
risks include
in-orbit equipment
failures,
malfunctions and
other kinds of
problems commonly
referred to as
anomalies.
</DIV>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Bell Globemedia
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Dependence on Advertising</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A large part of Bell Globemedia&#146;s
revenue from its television and print
businesses comes from advertising revenues.
Bell Globemedia&#146;s advertising revenues are
affected by competitive pressures,
including its ability to attract and retain
viewers and readers. In addition, the
amount advertisers spend is directly
related to economic growth. An economic
downturn tends to make it more difficult
for Bell Globemedia to maintain or increase
revenues. Advertisers have historically
been sensitive to general economic cycles
and, as a result, Bell Globemedia&#146;s
business, financial condition and results
of operations could be materially and
negatively affected by a downturn in the
economy. In addition, most of Bell
Globemedia&#146;s advertising contracts are
short-term and the advertiser can cancel
them on short notice.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Increasing Fragmentation in Television Markets</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Television advertising revenue largely
depends on the number of viewers and the
attractiveness of programming in a given
market. The viewing market has become
increasingly fragmented over the past decade
and this trend is expected to continue as
new services and technologies increase the
choices available to consumers. As a result,
there is no assurance that Bell Globemedia
will be able to maintain or increase its
advertising revenues or its ability to reach
or retain viewers with attractive
programming.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Revenues from Distributing Television Services</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A significant portion of revenues
from CTV&#146;s specialty television
operations comes from contractual
arrangements with distributors who are
mainly cable and  DTH operators.
Competition has increased in the specialty
television market. As a result, there is no
assurance that contracts with distributors
will be renewed on equally favourable
terms.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Increased Competition for Fewer Print Customers</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Print advertising revenue largely
depends on
circulation and readership. The existence
of a competing newspaper and commuter
papers in Toronto and other major markets
has increased competition for <I>The
Globe
and Mail</I>&#146;s print operations. In
addition, total circulation and readership
of Canadian newspapers have continued to
decline. There is increasing pressure on
print profit margins resulting from more
competition in print advertising rates and
higher costs of operation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Broadcast Licences and CRTC Decisions</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Each of
CTV&#146;s conventional
and specialty services operates under
licences issued by the CRTC for
a fixed term of up to seven years. These
licences are subject to the requirements of
the <I>Broadcasting Act</I>, the
policies and decisions of the
CRTC, and the conditions of each
licensing or renewal decision, all of which
may change. While these are expected to be
renewed at the appropriate times, there can
be no assurance that any or all of
CTV&#146;s licences will be renewed.
Any renewals, changes or amendments to
licences and any decisions by the CRTC
from time to time that affect the
industry as a whole or CTV in
particular may have a material and negative
effect on Bell Globemedia.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Telesat
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Satellite Industry Risks</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Operational Risks Due to
Various Types of Potential
Anomalies
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Any single anomaly or series of anomalies
could materially and adversely affect
Telesat&#146;s operations, revenues,
relationship with current customers and the
ability to attract new customers for
satellite services. The occurrence of
anomalies may also adversely affect
Telesat&#146;s ability to insure the satellites
at commercially reasonable premiums, if at
all.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Launch Failures
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Satellites are subject to certain risks
related to failed launches. Launch failures
result in significant delays in the
deployment of satellites because of the
need to construct replacement satellites
and to obtain other launch opportunities.
Such significant delays could materially
and adversely affect operations and
revenues. Should Telesat not be able to
obtain launch insurance on reasonable terms
and a launch failure were to occur, Telesat
would have to directly suffer the loss of
the cost of the satellite and related
costs.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 55</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Construction and Launch Delays
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The construction and launch of satellites
are subject to certain delays which can
adversely affect Telesat&#146;s operations.
Delays in the commencement of service could
enable customers who pre-purchased
transponder capacity to terminate their
contracts and could affect plans to replace
an in-orbit satellite prior to the end of
its useful life. The failure to implement a
satellite deployment plan on schedule could
have a material and adverse effect on
Telesat&#146;s financial condition and results
of operations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Market for Satellite Insurance
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Launch and in-orbit policies on satellites
may not continue to be available on
commercially reasonable terms or at all. In
addition to higher premiums, insurance
policies may provide for higher deductibles,
shorter coverage periods, higher loss
percentages required for constructive total
loss claims and additional satellite
health-related policy exclusions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An uninsured failure of one or more
satellites could have a material and
adverse effect on Telesat&#146;s financial
condition and results of operations. In
addition, higher premiums on insurance
policies increase costs, thereby reducing
earnings from operations by the amount of
such increased premiums.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With respect to in-orbit satellites,
Nimiq 1 is insured until the
second quarter of 2006 for approximately
its book value. Anik F1R is
insured for approximately its book value
until the third quarter of
2006. Anik F2 is
insured for approximately two thirds of its
book value until the third quarter of
2007. In the event of a total
failure of the Anik F2
satellite, the after-tax accounting
loss is estimated at $105
million to $110&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2004, Telesat ceased to
insure its interest in the residual value
of Nimiq 2 following the
arrival in orbit of the leased satellite
Nimiq 3.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2001, the manufacturer
of the Anik F1 satellite advised Telesat of
a gradual decline in power on the
satellite. Telesat had insurance in place
to cover the power loss on Anik F1
and filed a claim with its insurers.
Telesat and its insurers reached a final
settlement agreement which included an
initial payment to Telesat of
US$136.2&nbsp;million, which has
already been received, and originally
called for an additional payment of
US$49.1&nbsp;million in 2007
if the power level on Anik F1
degrades as predicted by the
manufacturer. In December&nbsp;2005,
Telesat entered into early settlement
agreements with certain insurance
underwriters, and as a result received
US$26.2&nbsp;million. A balance of
US$20.1&nbsp;million is expected to
be received in 2007 if the power
level on Anik F1 degrades as
predicted. In the event that the power level
on Anik F1 is better than
predicted, the amount of the payment(s) will
be adjusted by applying a formula which is
included in the settlement documentation and
could result in either a pro-rated payment
to Telesat of the additional US$20.1
million or a pro-rated repayment of up
to a maximum of US$14.9&nbsp;million
to be made by Telesat to the insurers.
Currently, power levels are continuing to
degrade as predicted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December&nbsp;2005, Telesat
placed launch and in-orbit insurance
coverage, covering the launch and first
year of in-orbit life, for the approximate
book value of Anik F3. Anik
F3 is expected to be available
for service in the third quarter of
2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Telesat has signed contracts with
EADS Astrium, SAS,
a European satellite manufacturer, for
construction of the Nimiq 4
satellite. As the construction
contract for Nimiq 4 was
recently signed and the satellite is not to
be launched until 2008, Telesat
has not initiated discussions for the
placement of insurance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Ground Operations Infrastructure Failures
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Telesat operates primary and back-up
satellite operations centres. Failures
could be experienced in the necessary
equipment at the primary centre, at the
back-up facility, or in the communication
links between these facilities and remote
teleport facilities. A failure or error
affecting tracking, telemetry and control
operations might lead to a breakdown in the
ability to communicate with one or more
satellites or cause the transmission of
incorrect instructions to the affected
satellite(s),
which could lead to a temporary or
permanent degradation in satellite
performance or to the loss of one or more
satellites.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Telesat&#146;s primary business activities
(broadcast, business networks and carrier
services) have been largely dedicated to
the Canadian domestic market. This market
is characterized by increasing competition
and
</DIV>


<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Market for Satellite Insurance</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The price, terms
and availability of
insurance have
fluctuated over
time. Insurance
availability can be
affected by recent
satellite failures
and general
conditions in the
insurance industry.
</DIV>


</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 56 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</I>
</DIV>

<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Government Regulations</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Telesat is subject
to the regulatory
authority of the
Canadian
government,
primarily the
CRTC and
Industry Canada,
and the national
communications
authorities of the
countries in which
it operates.
</DIV>
<DIV align="left">
<A name="136"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Our Accounting Policies</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This section
discusses key
estimates and
assumptions that
management has made
and how they affect
the amounts
reported in the
financial
statements and
notes. It also
describes the key
changes in
accounting
standards and our
accounting
policies, and how
they affect our
financial
statements.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have
prepared our
consolidated
financial
statements
according to
Canadian
GAAP. See
Note 1 to
the consolidated
financial
statements for more
information about
the accounting
principles we used
to prepare our
financial
statements.
</DIV>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">rapid technological development.
Telesat competes with U.S.-based operators
who may have greater financial resources
than Telesat and, together with Ciel
Satellite Group, who received provisional
authority from Industry Canada to operate a
broadcast satellite, could capture a larger
market share than that currently
anticipated by Telesat.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision of services into the United
States and Latin American markets is
subject to certain risks such as changes in
foreign government regulations and
telecommunication standards, licencing
requirements, tariffs, taxes and other
matters. Latin American operations are also
subject to risks associated with economic
and social instability, regulatory and
licencing restrictions, exchange controls
and significant fluctua-tions in the value
of foreign currencies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues from two customers represent
approximately 34% of Telesat&#146;s
total revenues. Telesat may have difficulty
in replacing these customers should their
satellite usage decrease.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finally, the sale or lease of Ka-band
capacity, which permits Telesat to provide
broadband Internet access via satellite to
markets that Telesat has not previously
served, represents a new area of business
and may or may not be adopted as Telesat
expects.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Foreign Exchange Risk</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A substantial portion of Telesat&#146;s
capital expenditures and other expenses are
in U.S. dollars. However, the currency of
revenues and earnings that may be received
from satellite infrastructure investments
is subject to individual customer
contractual arrangements. As a result
Telesat may become exposed to foreign
exchange differences between the
infrastructure investments and the
resulting revenues and earnings.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">There could be material and adverse
effects on Telesat&#146;s business should
Telesat not obtain all of the required
regulatory approvals for the construction,
the launch and operation of any of its
future satellites, or for the orbital slots
planned for these satellites, or if the
licences obtained impose operational
restrictions, or permit interference which
could affect the use of its
satellites. In addition, Telesat may not
continue to coordinate the satellites
successfully under procedures of the
International Telecommunications Union.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The CRTC regulates
Telesat&#146;s radio frequency channel service
rates based on certain price ceilings.
While the price ceiling levels were
established based on prevailing market
conditions and are above current rates for
certain of Telesat&#146;s existing satellite
services, there can be no
assurance that these ceilings will be
appropriate for services offered on any
future satellites operated by Telesat in
Canada.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 1999, the U.S. State
Department published amendments to the
International Traffic in Arms Regulations
which included satellites on the list of
items requiring export permits. These
provisions have constrained Telesat&#146;s access
to technical information and have had a
negative impact on Telesat&#146;s international
consulting revenues.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>OUR ACCOUNTING POLICIES</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CRITICAL ACCOUNTING ESTIMATES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under Canadian GAAP, we
are required to make estimates when we
account for and report assets, liabilities,
revenues and expenses, and to disclose
contingent assets and liabilities in our
financial statements. We are also required
to continually evaluate the estimates that
we use.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We base our estimates on past
experience and on other factors that we
believe are reasonable under the
circumstances. Because this involves
varying degrees of judgment and
uncertainty, the amounts currently reported
in the financial statements could, in the
future, prove to be inaccurate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We consider the estimates described in
this section to be an important part of
understanding our financial statements
because they rely heavily on management&#146;s
judgment and are based on factors that are
highly uncertain.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our senior management has discussed the
development and selection of the critical
accounting estimates described in this
section with the audit committee of the
board of directors. The audit committee has
reviewed these critical accounting
estimates.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>


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

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




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 57</I>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Employee Benefit Plans
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We perform a valuation at least every three
years to determine the actuarial present
value of the accrued pension and other
retirement benefits. The valuation uses
management&#146;s assumptions for the discount
rate, expected long-term rate of return on
plan assets, rate of compensation increase,
health-care cost trends and expected average
remaining years of service of employees.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While we believe that these
assumptions are reasonable, differences in
actual results or changes in assumptions
could materially affect employee benefit
obligations and future net benefit plans
cost.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We account for differences between
actual and assumed results by recognizing
differences in benefit obligations and plan
performance over the working lives of the
employees who benefit from the plans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The two most significant assumptions
used to calculate the net employee benefit
plans cost are the discount rate and the
expected long-term rate of return on plan
assets. Each of our operating segments is
affected by these assumptions.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We determine the appropriate discount
rate at the end of every year. Our discount
rate was 5.2% at December
31, 2005, a
decrease from 6.2% at December
31, 2004. The table
below shows the impact on the net benefit
plans cost for 2006 and the
accrued benefit assets at December
31, 2006 of a
0.5% increase and a 0.5%
decrease in the discount rate.
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">IMPACT ON</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">ACCRUED</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">IMPACT ON</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">BENEFIT</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">NET BENEFIT</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">ASSETS AT</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">PLANS COST</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">DECEMBER 31,</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">FOR 2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Discount rate increased to 5.7%</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Residential</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(33</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Business</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(33</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Aliant</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(24</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other Bell Canada</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other BCE</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(106</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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"><B>Discount rate decreased to 4.7%</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Residential</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(33</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Business</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(33</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Aliant</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(24</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other Bell Canada</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other BCE</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(106</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Although there is no immediate impact
on our balance sheet, a lower discount rate
results in a higher accrued benefit
obligation and a lower pension surplus. This
means that we may have to increase any cash
contributions to the plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Expected Long-Term Rate of Return</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The expected long-term rate of return
is a weighted average of our
forward-looking view of long-term returns
on each of the major plan asset categories
in our funds.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We determine the appropriate expected
long-term rate of return at the end of
every year. We assumed an expected
long-term rate of return on plan assets of
7.5% in 2005, which
is the same as in 2004. The
table below shows the impact on the net
benefit plans cost for 2006 and
the accrued benefit asset at December
31, 2006 of a
0.5% increase and a 0.5%
decrease in the expected rate of
return on plan assets.
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">IMPACT ON</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">ACCRUED</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">IMPACT ON</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">BENEFIT</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">NET BENEFIT</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">ASSETS AT</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">PLANS COST</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">DECEMBER 31,</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">FOR 2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Expected rate of return
increased to 8.0%</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Residential</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(22</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Business</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(21</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Aliant</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(16</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other Bell Canada</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other BCE</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(68</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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"><B>Expected rate of return
decreased to 7.0%</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Residential</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(22</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Business</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(21</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Aliant</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(16</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other Bell Canada</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other BCE</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(68</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Although there is no immediate impact
on our balance sheet, poor fund performance
results in a lower fair value of plan
assets and a lower pension surplus. This
means that we may have to increase any cash
contributions to the plan.
</DIV>


<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Employee Benefit Plans</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We maintain defined
benefit plans that
provide pension,
other retirement
and post-employment
benefits for some
of our employees.
The amounts
reported in the
financial
statements relating
to these benefits
are determined
using actuarial
calculations that
are based on
several
assumptions.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The discount rate
is the interest
rate used to
determine the
present value of
the future cash
flows that we
expect will be
needed to settle
employee benefit
obligations. It is
based on the yield
on long-term
high-quality
corporate fixed
income investments,
with maturities
matching the
estimated cash
flows from the
plan.
</DIV>

</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>p. 58 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</I>
</DIV>

<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Goodwill Impairment</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We assess the value
of goodwill of all
reporting units
within each of our
operating segments
every year and when
events or changes
in circumstances
indicate that it
might be impaired.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We become involved
in various
litigation and
regulatory matters
as part of our
business. Each of
our operating
segments may be
affected. Pending
litigation,
regulatory
initiatives or
regulatory
proceedings
represent potential
financial loss to
our business.
</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Goodwill Impairment
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We generally measure for impairment using a
projected discounted cash flow method and
confirm our assessment using other valuation
methods. If the asset&#146;s carrying value is
more than its fair value, we record the
difference as a reduction in the amount of
goodwill on the balance sheet and an
impairment charge in the statement of
operations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We make a number of significant
estimates when calculating fair value using
a projected discounted cash flow method.
These estimates
include the assumed growth rates for
future cash flows, the number of years used
in the cash flow model, the discount rate
and many others.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe that all of our estimates
are reasonable. They are consistent with
our internal planning and reflect our best
estimates, but they have inherent
uncertainties that management may not be
able to control.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any changes in any of the estimates
used could have a material impact on the
calculation of the fair value and resulting
impairment charge. As a result, we are
unable to reasonably quantify the changes
in our overall financial performance if we
had used different assumptions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We cannot predict whether an event
that triggers impairment will occur, when
it will occur or how it will affect the
asset values we have reported.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There were no impairment charges recorded in
2005 or 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Contingencies
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We accrue a potential loss if we believe
the loss is probable and can be reasonably
estimated. We base our decision on
information that is available at the time.
We estimate the amount of the loss by
consulting with the outside legal counsel
that is handling our defence. This involves
analyzing potential outcomes and assuming
various litigation and settlement
strategies.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the final resolution of a legal or
regulatory matter results in a judgment
against us or requires us to pay a large
settlement, it could have a material and
negative effect on our results of
operations, cash flows and financial
position in the period in which the
judgment or settlement occurs. Any accrual
would be charged to operating income and
included in <I>Accounts payable and
accrued liabilities </I>or <I>Other
long-term liabilities </I>. Any cash
settlement would be included in <I>Cash
from operating activities </I>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None of our operating segments had any
significant provisions relating to pending
litigation, regulatory initiatives or
regulatory proceedings at December
31, 2005. We have
not made any significant changes to our
estimates in the past two years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Income Taxes
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Management believes that it has adequately
provided for income taxes based on all of
the information that is currently
available. The calculation of income taxes
in many cases, however, requires
significant judgment in interpreting tax
rules and regulations, which are constantly
changing. Each of our operating segments
may be affected.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our tax filings are also subject to
audits, which could materially change the
amount of current and future income tax
assets and liabilities. Any change would be
recorded as a charge or a credit to income
tax expense. Any cash payment or receipt
would be included in cash from operating
activities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There were no significant changes to
the estimates we made in the past two
years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">RECENT CHANGES TO
ACCOUNTING STANDARDS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The CICA issued revisions to section 3860 of the
CICA Handbook, <I>Financial
Instruments &#151; Disclosure and
Presentation </I>. The revisions require
financial instruments that meet specific
criteria to be classified as liabilities on
the balance sheet instead of as equity.
Adopting this revised section on January
1, 2005 did not
affect our consolidated financial statements
because we do not have any instruments that
meet the specific criteria.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please see Note 1 to the
consolidated financial statements for more
information about the accounting policies
we adopted in 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">FUTURE CHANGES TO
ACCOUNTING STANDARDS
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Comprehensive Income
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The CICA issued section
1530 of the CICA
Handbook, <I>Comprehensive
Income </I>. The section is effective for
fiscal years beginning on or after October
1, 2006. It
describes how to report and disclose
comprehensive income and its components.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>




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

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

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p.59</I></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comprehensive income is the
change in a company&#146;s net assets that
results from transactions, events and
circumstances from sources other than the
company&#146;s shareholders. It includes items
that would not normally be included in net
earnings, such as:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> changes in
the currency translation
adjustment relating to self-sustaining
foreign operations
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> unrealized
gains or losses on available-for-sale
investments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The CICA also made changes to
section 3250 of the CICA
Handbook, <I>Surplus </I>, and
reissued it as section 3251,
<I>Equity </I>. The section is also
effective for fiscal years beginning on or
after October 1,
2006. The changes in how to
report and disclose equity and changes in
equity are consistent with the new
requirements of section 1530,
<I>Comprehensive Income </I>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When we adopt these sections on
January 1, 2007, we
will report the following items in the
consolidated financial statements:</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">
<B>&#149;</B> comprehensive income and its
components</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> accumulated other
comprehensive income and its components.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Financial
Instruments &#151; Recognition and Measurement
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The CICA issued section 3855 of the CICA Handbook,
<I>Financial Instruments &#151; Recognition and
Measurement </I>. The section is effective
for fiscal years beginning on or after
October 1, 2006. It
describes the standards for recognizing and
measuring financial assets, financial
liabilities and non-financial derivatives.
This section requires that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> all
financial assets be measured at fair value,
with some exceptions such as loans and
investments that are classified as held to
maturity
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> all financial
liabilities be measured at fair value if
they are derivatives or classified as held
for trading purposes. Other financial
liabilities are measured at their carrying
value
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> all derivative financial
instruments be measured at fair value, even
when they are part of a hedging
relationship.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The CICA has also reissued
section 3860 of the CICA
Handbook as section 3861,
<I>Financial Instruments &#151;Disclosure and
Presentation </I>, which establishes
standards for presentation of financial
instruments and non-financial derivatives,
and identifies the information that should
be disclosed about them. These revisions
come into effect for fiscal years beginning
on or after October 1,
2006.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These new accounting standards are not
expected to have a significant effect on
our financial results in 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Hedges
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The CICA recently issued
section 3865 of the CICA
Handbook, <I>Hedges </I>. The
section is effective for
fiscal years beginning on or after October
1, 2006, and
describes when and how hedge accounting can
be used.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hedging is an activity used by a
company to change an exposure to one or
more risks by creating an offset between:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> changes in the fair value of a
hedged item and a hedging item
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
changes in the cash flows
attributable to a hedged item and a hedging
item, or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> changes resulting from
a risk exposure relating to a hedged item
and a hedging item.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Hedge accounting makes sure that all gains,
losses, revenues and expenses from the
derivative and the item it hedges are
recorded in the statement of operations in
the same period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We do not expect the new standard to
have a significant effect on our financial
results in 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Non-Monetary Transactions
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The CICA has reissued section
3830 of the CICA
Handbook as section 3831,
<I>Non-Monetary Transactions </I>, which
establishes standards for the measurement
and disclosure of non-monetary transactions.
It also includes criteria for defining
&#145;commercial substance&#146; which replace the
criteria for defining &#145;culmination of the
earnings process&#146; in the former section.
These changes come into effect for fiscal
years beginning on or after January
1, 2006. Adopting
this section on January 1,
2006 will not have a material
effect on our future consolidated financial
statements.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

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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 align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 60 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CONSOLIDATED FINANCIAL STATEMENTS</I>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This section of
our annual report
contains the
audited
consolidated
financial
statements of BCE
and detailed notes
with explanations
and additional
information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The financial
statements contain
our results and
financial history
for the past three
years. The notes
are an important
part of
understanding our
financial results.
They explain how we
arrived at the
numbers in the
financial
statements,
describe
significant events
or changes that
affect the numbers,
and explain certain
items in the
financial
statements. The
notes also include
details about our
results that do not
appear in the
financial
statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BCE consists of
many businesses,
including
subsidiaries and
joint ventures. We
present the
financial
information for all
of our holdings as
one consolidated
company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Except in the
auditors&#146; report,
<I>we</I>, <I>us</I>, <I>our </I>and <I>BCE</I>
mean BCE Inc., its
subsidiaries and
joint ventures.
</DIV>
</DIV>
<DIV align="left">
<A name="137"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>MANAGEMENT&#146;S REPORT</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">These financial statements form the
basis for all of the financial information
that appears in this annual report.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The financial statements and all of the
information in this annual report are the
responsibility of the management of
BCE Inc. and have been reviewed
and approved by the board of directors. The
board of directors is responsible for
ensuring that management fulfills its
financial reporting responsibilities.
Deloitte &#038; Touche LLP, the
shareholders&#146; auditors, have audited the
financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management has prepared the financial
statements according to Canadian generally
accepted accounting principles. Under these
principles, management has made certain
estimates and assumptions that are reflected
in the financial statements and notes.
Management believes that these financial
statements fairly present BCE&#146;s
consolidated financial position, results of
operations and cash flows.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management has a system of internal
controls designed to provide reasonable
assurance that the financial statements are
accurate and complete in all material
respects. This is supported by an internal
audit group that reports to the audit
committee, and includes communication with
employees about policies for ethical
business conduct. Management believes that
the internal controls provide reasonable
assurance that our financial records are
reliable and
form a proper basis for preparing the
financial statements, and that our assets
are properly accounted for and safeguarded.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The board of directors has appointed
an audit committee, which is made up of
unrelated and independent directors. The
audit committee&#146;s responsibilities include
reviewing the financial statements and
other information in this annual report,
and recommending them to the board of
directors for approval. You will find a
description of the audit committee&#146;s other
responsibilities on page 102 of
this annual report. The internal auditors
and the shareholders&#146; auditors have free
and independent access to the audit
committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036532.gif" alt="-s- Michael J. Sabia"><BR>
Michael J. Sabia<BR>
<I>President and Chief Executive Officer</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036533.gif" alt="-s- Siim A. Vanaselja"><BR>
Siim A. Vanaselja<BR>
<I>Chief Financial Officer</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036534.gif" alt="-s- Karyn A. Brooks"><BR>
Karyn A. Brooks<BR>
<I>Vice-President and Controller</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">January&nbsp;31, 2006

</DIV>
<DIV align="left">
<A name="138"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>AUDITORS&#146; REPORT</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">To the Shareholders of BCE Inc.:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have audited the consolidated balance
sheets of BCE Inc. as at
December&nbsp;31, 2005
and 2004, and the
consolidated statements of operations,
deficit and cash flows for each of the
years in the three-year period ended
December&nbsp;31, 2005.
These consolidated financial statements are
the responsibility of BCE
Inc.&#146;s management. Our responsibility
is to express an opinion on these
consolidated financial statements based on
our audits.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We conducted our audits in accordance
with Canadian generally accepted auditing
standards. Those standards require that we
plan and perform an audit to obtain
reasonable assurance whether the financial
statements are free of material
misstatement. An audit includes examining,
on a test basis, evidence supporting the
amounts and disclosures in the consolidated
financial statements. An audit also includes
assessing
the accounting principles used and
significant estimates made by management,
as well as evaluating the overall financial
statement presentation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In our opinion, these consolidated
financial statements present fairly, in all
material respects,
the financial position of BCE
Inc. as at December&nbsp;31,
2005 and 2004 and
the results of its operations and its cash
flows for each of the years in the
three-year period ended December
31, 2005, in
accordance with Canadian generally accepted
accounting principles.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036535.gif" alt="(S) Deloitte &#038; Touche LLP">

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Deloitte &#038; Touche LLP<BR>
<I>Chartered Accountants</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Montr&#233;al, Canada<BR>
January&nbsp;31, 2006

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="139"></A>
</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="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"><I>CONSOLIDATED STATEMENTS OF OPERATIONS</I>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><I>p. 61</I></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</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="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD nowrap align="left">FOR THE YEAR ENDED DECEMBER 31 <I>(in $ millions, except share amounts)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">NOTE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2003</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Operating revenues</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>19,105</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,368</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,057</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Operating expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(11,508</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10,938</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10,776</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Amortization expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(3,114</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,056</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,062</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net benefit plans cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(380</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(256</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(175</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Restructuring and other items</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(55</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,224</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(14</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total operating expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(15,057</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,474</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(14,027</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Operating income</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4,048</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,894</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,030</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>8</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">407</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">177</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(981</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(999</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,100</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Pre-tax earnings from continuing operations</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,075</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,302</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,107</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(893</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(681</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,086</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-controlling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(267</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(174</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(201</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Earnings from continuing operations</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,915</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,447</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,820</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>46</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net earnings before extraordinary gain</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,961</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,524</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,815</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Extraordinary gain</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net earnings</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,961</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,593</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,815</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividends on preferred shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(70</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(70</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(64</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Premium on redemption of preferred shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(7</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net earnings applicable to common shares</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,891</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,523</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,744</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net earnings (loss)&nbsp;per common share &#151; basic</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Continuing operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1.99</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.49</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.91</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.05</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.01</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Extraordinary gain</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.07</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2.04</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.90</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net earnings (loss)&nbsp;per common share &#151; diluted</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Continuing operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1.99</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.49</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.90</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.05</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.01</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Extraordinary gain</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.07</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2.04</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.89</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Dividends per common share</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1.32</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average number of common shares outstanding &#151; basic (millions)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>926.8</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">924.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">920.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="140"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>CONSOLIDATED STATEMENTS OF DEFICIT</I>
</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="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD nowrap align="left">FOR THE YEAR ENDED DECEMBER 31 <I>(in $ millions)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">NOTE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2003</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at beginning of year, as previously reported</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(5,424</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,837</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6,442</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accounting policy change</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(8</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Balance at beginning of year, as restated</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(5,432</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,845</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6,450</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Consolidation of variable interest entity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(25</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,961</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,593</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,815</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividends declared on preferred shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(70</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(70</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(64</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividends declared on common shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1,222</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,110</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,105</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Premium on redemption of preferred shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(7</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(9</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Balance at end of year</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(4,763</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,432</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,845</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES 2005 ANNUAL REPORT
</DIV>





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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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



<DIV align="left">
<A name="141"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 62 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CONSOLIDATED BALANCE SHEETS</I>
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD nowrap align="left">AT DECEMBER 31 <I>(in $ millions)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">NOTE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Assets</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Current assets</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>363</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">313</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accounts receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,766</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,951</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,142</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,061</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current assets of discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>402</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">383</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total current assets</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,673</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,708</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Capital assets</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>22,062</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,104</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Other long-term assets</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,914</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,628</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Indefinite-life intangible assets</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,031</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,916</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Goodwill</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7,887</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,756</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Non-current assets of discontinued operations</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,063</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,028</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total assets</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>40,630</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,140</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Liabilities</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Current liabilities</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Accounts payable and accrued liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,435</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,444</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>182</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">183</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividends payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>343</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">297</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Debt due within one year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,373</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,272</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current liabilities of discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>281</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">271</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total current liabilities</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>5,614</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,467</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Long-term debt</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>12,119</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,685</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Other long-term liabilities</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>5,028</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,834</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Non-current liabilities of discontinued operations</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>250</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">222</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total liabilities</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>23,011</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,208</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Non-controlling interest</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,898</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,908</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Commitments and contingencies</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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"><B>Shareholders&#146; Equity</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Preferred shares</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,670</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,670</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Common shareholders&#146; equity</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Common shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>16,806</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,781</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Contributed surplus</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,081</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,061</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deficit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(4,763</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,432</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Currency translation adjustment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(73</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(56</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total common shareholders&#146; equity</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>13,051</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,354</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total shareholders&#146; equity</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>14,721</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,024</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total liabilities and shareholders&#146; equity</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>40,630</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,140</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">On behalf of the board of directors:
</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="20%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="78%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><IMG src="m30365m3036537.gif" alt="(SIGNATURE)">
</DIV></TD>
    <TD>&nbsp;</TD>

<TD align="left" valign="top"><IMG src="m30365m3036536.gif" alt="(SIGNATURE)"></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><I>Director</I>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>Director</I></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>


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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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


<DIV align="left">
<A name="142"></A>
</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="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"><I>CONSOLIDATED STATEMENTS OF CASH FLOW</I>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><I>p. 63</I></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</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="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD nowrap align="left">FOR THE YEAR ENDED DECEMBER 31 <I>(in $ millions)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">NOTE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2003</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Cash flows from operating activities</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Earnings from continuing operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,915</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,447</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,820</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjustments to reconcile earnings from continuing operations
to cash flows from operating activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Amortization expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,114</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,056</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,062</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Net benefit plans cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>380</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">256</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">175</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Restructuring and other items</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>55</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,224</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Net gains on investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(33</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(320</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(76</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Future income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>746</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(35</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">409</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Non-controlling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>267</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">174</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">201</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Contributions to employee pension plans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(226</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(112</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(160</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Other employee future benefit plan payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(93</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(81</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(87</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Payments of restructuring and other items</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(176</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(253</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(124</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Operating assets and liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(390</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">656</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Cash flows from operating activities</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>5,559</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,443</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,890</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Cash flows from investing activities</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Capital expenditures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(3,428</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,319</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,101</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Business acquisitions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(228</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,118</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(54</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Business dispositions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Increase in investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(233</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(58</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Decrease in investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>19</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">713</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">168</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other investing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">127</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Cash flows used in investing activities</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(3,866</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,635</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,875</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Cash flows from financing activities</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Increase (decrease)&nbsp;in notes payable and bank advances</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(66</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">130</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(295</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Issue of long-term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,190</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,306</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,880</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Repayment of long-term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1,178</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,256</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,412</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Issue of common shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>25</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Issue of preferred shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">510</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Redemption of preferred shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(357</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Issue of equity securities by subsidiaries
to non-controlling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">132</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Redemption of equity securities by subsidiaries
from non-controlling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(78</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(58</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(108</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash dividends paid on common shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1,195</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,108</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,029</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash dividends paid on preferred shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(86</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(85</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(61</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash dividends paid by subsidiaries to non-controlling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(192</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(188</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(184</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other financing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(64</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(81</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(44</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Cash flows used in financing activities</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1,643</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,300</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,949</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash provided by (used in) continuing operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>50</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(492</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash provided by discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>15</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">350</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net increase (decrease)&nbsp;in cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>65</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(342</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">416</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents at beginning of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>380</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">722</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">306</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Cash and cash equivalents at end of year</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>445</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">380</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">722</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Consists of:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Cash and cash equivalents of continuing operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>363</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">313</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">556</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Cash and cash equivalents of discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>82</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">166</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><B>Total</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>445</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">380</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">722</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES 2005 ANNUAL REPORT
</DIV>





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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 64 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</I>
</DIV>
<P>
<DIV style="width: 99%; border: 1px solid black; padding: 11px;">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">All amounts are in millions of Canadian dollars, except where noted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">See Note 28, <I>Reconciliation of Canadian GAAP to United States GAAP</I>, for
a description and reconciliation of the significant differences between Canadian GAAP and
United States GAAP that affect our financial statements.
</DIV>
</DIV>

<DIV align="left">
<A name="143"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>NOTE 1:</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt"><I>SIGNIFICANT ACCOUNTING POLICIES</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BASIS OF PRESENTATION
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have prepared the consolidated financial statements according to Canadian generally
accepted accounting principles (GAAP).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We consolidate the financial statements of all of the companies we control. We proportionately
consolidate our share of the financial statements of our joint venture interests. All transactions
and balances between these companies have been eliminated on consolidation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">COMPARATIVE FIGURES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have reclassified some of the figures for the comparative periods in the consolidated
financial statements to make them consistent with the presentation for the current period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have restated financial information for previous periods to reflect:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
the change in Aliant Inc.&#146;s (Aliant) method of recognizing revenues and expenses from its directory business
effective January&nbsp;2005, as described under <I>Recent</I> <I>Changes to Accounting Policies and Standards</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the change in classification to discontinued operations for planned and completed
business dispositions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">USING ESTIMATES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">When preparing financial statements according to GAAP, management makes estimates
and assumptions relating to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> reported amounts of revenues and expenses
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> reported amounts of assets and liabilities
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> disclosure of contingent assets and liabilities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">We base our estimates on a number of factors, including historical experience, current events and
actions that the company may undertake in the future, and other assumptions that we believe are
reasonable under the circumstances. Actual results could differ from those estimates under
different assumptions or conditions. We use estimates when accounting for certain items such as
revenues, allowance for doubtful accounts, useful lives of capital assets, asset impairments,
inventory reserves,
legal and tax contingencies, employee compensation plans, employee benefit plans, evaluation of
minimum lease terms for operating leases, income taxes and goodwill impairment. We also use
estimates when recording the fair values of assets acquired and liabilities assumed in a business
combination.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">RECOGNIZING REVENUE
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We recognize operating revenues when they are earned, specifically when all the following
conditions are met:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> services are provided or products are delivered to customers
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> there is clear evidence that an arrangement exists
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> amounts are fixed or can be determined
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> our ability to collect is reasonably assured.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">In particular, we recognize:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> fees for long distance and wireless services when we provide the services
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
other fees, such as network access fees, licence fees, hosting fees, maintenance fees
and standby fees, over the term of the contract
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> subscriber revenues when customers receive the service
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> advertising revenues when advertisements are aired, or printed and distributed </DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> revenues from the sale of equipment when the equipment is delivered to
customers and accepted
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> revenues on long-term contracts as services are provided, equipment is delivered and
accepted, or contract milestones are met
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> rebates, allowances and payments to customers as a reduction of revenue when we do not
receive an identifiable and separate benefit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We enter into sales that may include a number of products and services. We separate each product or
service in these sales and account for them separately according to the methods described above
when the following three conditions are met:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the product or service has value to our customer on a stand-alone basis
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> there is objective and reliable evidence of the fair value of the product or service
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a general right of return, delivery or performance of any undelivered product or
service is probable and substantially in our control.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If there is objective and reliable evidence of fair value for all products and services in a sale,
the total price to the customer is allocated to the separate products and services based on their
relative fair value. Otherwise, we first allocate the total price to any undelivered
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>





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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 65</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">products and services based on their fair value and the remainder to any that have been
delivered. If the conditions to separate the product or service are not met, we generally recognize
revenue pro-rata over the term of thesale agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may enter into arrangements with subcontractors who provide services to our customers. When
we act as the principal in these arrangements, we recognize revenue based on the amounts billed to
customers. Otherwise, we recognize the net amount that we keep as revenue.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We accrue an estimated amount for sales returns, based on our past experience, when revenue is
recognized.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We record payments we receive in advance, including upfront non-refundable payments, as
deferred revenues until we provide the service or deliver the product to customers. Deferred
revenues are presented
in <I>Accounts payable and accrued liabilities </I>or in <I>Other long-term liabilities</I>
on the balance sheet.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">CASH AND CASH EQUIVALENTS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We classify highly liquid investments with a maturity of three months or less from the date
of purchase as <I>Cash and cash equivalents</I>. Highly liquid investments with a maturity of
more than three months are classified as short-term investments and reported in
<I>Other current assets</I>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">SECURITIZATION OF ACCOUNTS RECEIVABLE
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We consider a transfer of accounts receivable to be a sale when we give up control of
them in exchange for proceeds from a trust (other than our retained beneficial interest in the
accounts receivable).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We determine the fair value of the accounts receivable transferred based on the present value
of future expected cash flows, which we project using
management&#146;s best estimates of discount rates, the weighted average life of accounts
receivable, credit loss ratios and other key assumptions. We recognize a loss on this kind of
transaction, which we record in <I>Other income</I>. The loss partly depends on the carrying
amount of the accounts receivable that are transferred. We allocate this amount to accounts
receivable sold or to our retained interest, according to its relative fair value on the day the
transfer is made.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We continue to service the accounts receivable after the transfer. As a result, we:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> recognize a servicing liability on the day accounts
receivable are transferred to the trust
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> amortize this liability to earnings over the expected
life of the transferred accounts receivable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">INVENTORIES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We value inventories at cost or market value, whichever is lower, and determine market value
using replacement cost. We maintain inventory valuation reserves for inventory that is slow moving
or becomes obsolete, using an inventory aging analysis to calculate the amount of the reserves.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">CAPITAL ASSETS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We carry capital assets at cost, less accumulated amortization. Most of our
telecommunications assets are amortized using the group depreciation method. When we retire assets
in the ordinary course of business, we charge their original cost to accumulated amortization. In
general, we amortize capital assets on a straight-line basis over the estimated useful lives of the
assets. We review the estimates of the useful lives of the assets every year and adjust them if
needed.
</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="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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">ESTIMATED USEFUL LIFE</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Telecommunications assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">10 to 25 years</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Machinery and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">2 to 20 years</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Buildings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">10 to 40 years</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Satellites</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">10 to 15 years</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Finite-life intangible assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Software</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">3 to 7 years</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Customer relationships</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">5 to 40 years</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We initially measure and record asset retirement obligations at fair value using a present
value methodology, adjusted subsequently for any changes to the timing or amount of the original
estimate of cash flows. We capitalize asset retirement costs
as part of the related assets and amortize these into earnings over time, along with the increase
in the recorded obligation to reflect the passage of time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We capitalize construction costs, labour and overhead (including interest, when the project
cost is significant) related to assets we build or develop.
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>





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

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




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 66 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</I>
</DIV>

<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Equity Method</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The investment is initially recorded at cost and adjustments are made to include our share of the
net earnings or losses. These adjustments are included in our net earnings. The amount of our
investment is reduced by any dividends received or receivable from the investment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Cost Method</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The investment is recorded at cost. Dividends received or receivable from the investment are
included in our net earnings, with no adjustment to the carrying amount of the investment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Goodwill</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Goodwill is created when we acquire a business. It is calculated by deducting the fair value of the
net assets acquired from the consideration given and represents the value of factors that
contribute to greater earning power, such as a good reputation, customer loyalty or intellectual
capital.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Translation of Foreign Currencies</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The way we account for a foreign operation depends on whether it is self-sustaining or integrated.
A self-sustaining foreign operation is largely independent of the parent company. An integrated
foreign operation depends on the parent company to finance or run its operations.
</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We capitalize certain costs of developing or buying software for internal use. We
expense software maintenance and training costs when they are incurred. The expense is included in
<I>Operating expenses </I>in the statement of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We assess capital assets for impairment when events or changes in circumstances indicate that
we may not be able to recover their carrying value. We calculate
impairment by deducting the assets&#146; fair value, based on
discounted cash flows expected from their use and disposition, from their carrying value. Any
excess is deducted from earnings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We account for leases that transfer substantially all of the benefits and risks of ownership
of property to us as capital leases. We record an asset at the time a capital lease is entered into
together with a related long-term obligation. Rental payments under operating leases are expensed
as incurred.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ACCOUNTING FOR INVESTMENTS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We use the following methods to account for investments that are not consolidated or
proportionately consolidated in our financial statements:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the equity method for our investments in companies where we have a significant
influence over their operating, investing and financing activities
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the cost method for our investments in all other companies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We expense any decline in the fair value of our investments below their carrying value when
management assesses the decline to be other than temporary.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We include investments in <I>Other long-term assets </I>on the balance sheet. Earnings
from investments and any declines in fair value are included in <I>Other income </I>in the
statement of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">COSTS OF ISSUING DEBT AND EQUITY
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The costs of issuing debt are deferred in <I>Other long-term assets</I>. They are
amortized on a straight-line basis over the term of the related debt and are included in
<I>Interest expense </I>in the statement of operations. The costs of issuing equity are
reflected in the statement of deficit.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">INDEFINITE-LIFE INTANGIBLE ASSETS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our indefinite-life intangible assets consist mainly of the Bell brand name, spectrum
licences and television licences. We assess these assets for impairment in the fourth quarter of
every year and when events or changes in circumstances indicate that an asset might be impaired. We
calculate impairment by deducting the asset&#146;s the fair value,
based on estimates of discounted future cash flows or other valuation methods,
from their carrying value. Any excess is deducted from earnings.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">GOODWILL
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We assess goodwill of individual reporting units for impairment in the fourth quarter of
every year and when events or changes in circumstances indicate that goodwill might be impaired. We
assess goodwill for impairment in two steps:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> we identify a potential impairment by comparing the fair value of a reporting unit to
its carrying value. Fair value is based on estimates of discounted future cash flows or other valuation methods. When
the fair value of the reporting unit is less than its carrying value, we allocate the fair value to
all of its assets and liabilities, based on their fair values. The amount that the fair value of
the reporting unit exceeds the total of the amounts assigned to its assets and liabilities is the
fair value of goodwill.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> we determine if there is an impairment by comparing the carrying value of goodwill to
its fair value. Any excess is deducted from earnings.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">TRANSLATION OF FOREIGN CURRENCIES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Self-Sustaining Foreign Operations
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">For self-sustaining foreign operations, we use:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149; </B>the exchange rates on the date of the balance sheet for assets and liabilities
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149; </B>the average exchange rates during the year for revenues and expenses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Translation
exchange gains and losses are reflected as a currency translation
adjustment in shareholders&#146; equity. When we
reduce our net investment in a self-sustaining foreign operation, we recognize a portion of the
currency translation adjustment in earnings.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>





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

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




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 67</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Integrated Foreign Operations
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">For integrated foreign operations, we use:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the exchange rates on the date of the balance sheet for monetary assets and
liabilities, such as cash, accounts receivable and payable, and long-term debt
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the historical exchange rates for non-monetary assets and liabilities, such as capital
assets
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the average exchange rates during the year for revenues and expenses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Translation exchange gains and losses are included in <I>Other income </I>in the statement of
operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Domestic Transactions and Balances in Foreign Currencies
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For domestic transactions in foreign currencies, we use:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149; </B>the exchange rates on the date of the balance sheet
for monetary assets and liabilities
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149; </B>the historical exchange rates for non-monetary assets
and liabilities
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149; </B>the average exchange rates during the year for revenues and expenses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Translation exchange gains and losses are included in <I>Other income </I>in the statement of
operations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">DERIVATIVE FINANCIAL INSTRUMENTS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We use various derivative financial instruments to manage:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> interest rate risk
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> foreign exchange rate risk
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> changes in the price of BCE I nc. common shares
relating to special compensation payments (SCPs) and deferred share units
(DSUs).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">We do not use derivative financial instruments for speculative or trading purposes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We document all relationships between derivatives and the items they hedge, and our risk
management objective and strategy for using various hedges. This process includes linking every
derivative to:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149; </B>a specific asset or liability, or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149; </B>a specific firm commitment, or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149; </B>an anticipated transaction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We assess how effective derivatives are in managing risk when the hedge is put in place, and on an
ongoing basis. If a hedge becomes ineffective, we stop using hedge accounting.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We follow these policies when accounting for derivatives:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> unrealized gains or losses relating to derivatives that
qualify for hedge accounting are recognized in earnings
when the hedged item is disposed of or when the
anticipated transaction is ended early
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> gains and losses related to hedges of anticipated
transactions are recognized in earnings or are recorded
as adjustments of carrying values when the transaction
takes place
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> derivatives that are economic hedges but do not
qualify for hedge accounting are recognized at fair
value. We record the change in fair value in earnings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> any premiums paid for derivatives used in hedging
relationships are deferred and expensed to earnings
over the term of the contract
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> any forward premiums or discounts on forward foreign
exchange contracts that are used to hedge long-term
debt denominated in foreign currencies are amortized
as an adjustment to interest expense over the term of
the forward contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">The following describes our policies for specific kinds of derivatives.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Interest Rate Swap Agreements
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We use interest rate swap agreements to help manage the fixed and floating interest rate mix of our
debt portfolio. These agreements often involve exchanging interest payments without exchanging the
notional principal amount that the payments are based on. We record the exchange of payments as an
adjustment of interest expense on the hedged debt. We include the related amount receivable or
payable from counterparties in <I>Accounts receivable </I>or <I>Interest payable</I></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have interest rate swaption agreements which, if exercised, result in us entering into an interest
rate swap.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Foreign Currency Swap Agreements
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We use foreign currency swap agreements to manage the foreign exchange rate exposure of some of our
debt that is denominated in foreign currencies. We designate these agreements as hedges of firm
commitments to pay interest and/or principal in the foreign currency. We recognize gains and losses
on these contracts at the same time we recognize the gains and losses on the hedged item.
Unrealized gains or losses are included in
<I>Other long-term assets </I>or <I>Other long-term liabilities</I>.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>





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



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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    <TD width="1%"></TD>
    <TD width="2%"></TD>
    <TD width="97%"></TD>
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<TR valign="bottom">
    <TD nowrap align="left" valign="top" colspan="3"><I>p. 68 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</I></I>
</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Curtailment</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A curtailment is a significant reduction in plan benefits that can result when a DB pension
plan is amended or restructured. Types of curtailments include a reduction in the expected number
of years of future service of active employees or the elimination of the right to earn defined
benefits for some or all of the future service of employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Settlement</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A company makes a settlement when it substantially settles all or part of an accrued benefit
obligation. An example is a lump-sum cash payment to employees in exchange for their rights to
receive future benefits.
</DIV>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Forward Contracts
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We use forward foreign exchange contracts to manage:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> interest and principal denominated in foreign currencies. We designate these
agreements as hedges
of firm commitments to pay the principal in the foreign currency.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the exposure to anticipated transactions denominated in foreign currencies. We
designate these agreements as hedges of future cash flows.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We use forward contracts to manage changes in the price of BCE Inc. common shares
relating to SCPs and DSUs.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We recognize gains and losses on these contracts the same way we recognize the gains and
losses on the hedged item. Unrealized gains or losses are included in
<I>Other long-term assets </I>or <I>Other long-term liabilities</I>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">EMPLOYEE BENEFIT PLANS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(i)&nbsp;Defined Benefit Plans
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We maintain defined benefit (DB)&nbsp;plans that provide pension benefits for most of our
employees. Benefits are based on the age rate of pay during his or her last five years of service.
Most employees are not required to contribute to the plans. The plans provide increasing pension
benefits to help protect a portion of the income of retired employees against inflation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are responsible for adequately funding our DB pension plans. We make
contributions to them based on various actuarial cost methods that are permitted by pension
regulatory bodies. Contributions reflect actuarial assumptions about future investment returns,
salary projections and future service.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We also provide other post-employment benefits to some of our employees, including:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> health-care and life insurance benefits during retirement
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> other benefits, including various disability plans,workers&#146; or inactive employees,
their beneficiaries and dependants, from the time their employment ends until their retirement
starts, under certain circumstances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We do not fund the other future benefit plans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We accrue our obligations and related costs under employee benefit plans, net of the fair
value of plan assets. Pension and other retirement benefit costs are determined using:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the projected benefit method, prorated on years of service, which takes into account
future pay levels
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a discount rate based on market interest rates of high-quality corporate bonds with
maturities that match the timing and benefits expected to be paid by the plans
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> management&#146;s best estimate of the plans&#146; expected investment performance, pay
increases, retirement ages of employees and expected<BR> health-care costs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We value pension plan assets at fair value, which is determined using current market values. We use
a market-related value to calculate the expected return on plan assets. This value is based on a
four-year weighted average of the fair value of the pension plan assets.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We amortize past service costs from plan amendments on a straight-line basis over the average
remaining service period of employees who were active on the day of the amendment. This represents
the period that we expect to realize economic benefits from the amendments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transitional assets and obligations that arose upon implementation of new accounting standards
for employee future benefits are amortized on a straight-line basis over the average remaining
service period of employees expected to receive benefits under the plans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We use the corridor approach to recognize actuarial gains and losses into earnings. First we
deduct 10% of the benefit obligation or the market-related value of plan assets,
whichever is greater, from the unamortized net actuarial gains or losses based on a market-related
value basis. Then we amortize any excess over the average remaining service period of active
employees. At the end of 2005, this period ranged from approximately 9 to 18&nbsp;years, with a weighted average period
of 13&nbsp;years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When the restructuring of a benefit plan results in both
a curtailment and a settlement of obligations, we account for the curtailment before we account for
the settlement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December&nbsp;31 is the measurement date for most of our employee benefit plans. Our
actuaries perform a valuation at least every three years to determine the
</DIV>

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</DIV>



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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 69</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">actuarial present value of the accrued pension and other retirement benefits. An actuarial
valuation was last performed on most of our pension plans on
December&nbsp;31, 2004.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">(ii)&nbsp;Defined Contribution Plans
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Some of our subsidiaries offer defined contribution (DC)&nbsp;plans that provide certain
employees with pension benefits.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In January&nbsp;2005, BCE Inc. and Bell Canada introduced a DC
pension plan for its employees. Current employees had the option of retaining their DB
coverage or changing over to the new DC coverage. Since 2005, new
employees participate in the DC pension arrangements only.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We recognize a pension cost for DC plans when the employee provides service to the
company, essentially coinciding with our cash contributions. The pension cost is based on a
percentage of the participant&#146;s salary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">INCOME TAXES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Current income tax expense is the estimated income taxes payable for the current year before
any refunds or the use of losses incurred in previous years.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We use the asset and liability method
to account for future income taxes. Future income taxes reflect:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the temporary differences between the carrying amounts of assets and
liabilities for accounting purposes and the amounts used for tax purposes, on an
after-tax basis
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the benefit of losses that will more likely than not be realized and carried forward to
future years to reduce income taxes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We calculate future income taxes using the rates enacted by tax law and those substantively
enacted. The effect of a change in tax rates on future income tax assets and liabilities is
included in earnings in the period when the change is substantively enacted.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">SUBSCRIBER ACQUISITION COSTS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We expense all subscriber acquisition costs when services are activated.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">STOCK-BASED COMPENSATION PLANS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BCE
Inc&#146;s stock-based compensation plans include employee savings plans (ESPs),
restricted share units (RSUs), long-term incentive plans and DSUs. Before
2000, the long-term incentive plans often included SCPs.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Starting in 2004, we made a number of prospective changes to the key features of
our stock-based compensation plans, including:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the value of the long-term incentive plans under which stock options are granted was
reduced to account for the introduction of a new mid-term incentive plan that uses RSUs
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> setting specific performance targets that must be met before the stock option can be
exercised.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We credit to share capital any amount employees pay when they exercise their stock options or buy
shares. We recognize the contributions BCE Inc. makes under ESPs as
compensation expense. We also recognize compensation expense or recovery relating to
SCPs.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Restricted
Share Units
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For each RSU granted we record a compensation expense that equals the market value of a
BCE Inc. common share at the date of grant prorated over the vesting period. The
compensation expense is adjusted for subsequent changes in the market value of BCE Inc.
common shares until the vesting date and management&#146;s of the
number of RSUs that will vest in the future. The
cumulative effect of the change in value is recognized in the period of the change. Vested
RSUs will be paid in BCE Inc. common shares purchased on the open market or
in cash, as the holder chooses, as long as minimum share ownership requirements are met.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Stock Options
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We use the fair value-based method to account for employee stock options and the Black-Scholes
option pricing model to measure the compensation expense of options. This method is used for
options granted on or after January&nbsp;1, 2002. For options that contain
specific performance-based targets, this is reflected in the calculation of the weighted average
fair value per option granted.
</DIV>
<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Black-Scholes Option Pricing Model</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Black-Scholes option pricing model is a financial model we use to calculate the
weighted average fair value of a stock option granted using four key assumptions: stock dividend
yield, expected stock volatility, risk-free interest rate and expected life of the stock option.
</DIV>
</DIV>


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</DIV>





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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 70 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Deferred Share Units
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For each DSU granted we record a compensation expense that equals the market value of a
BCE Inc. common share at the grant date. The compensation expense is adjusted for
subsequent changes in the market value of BCE Inc. common shares, with the effect of
this change in value recognized in the period of the change. DSUs are paid in BCE
Inc. common shares purchased on the open market following the cessation of a director leaves
the board.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">REGULATION OF THE TELECOMMUNICATIONS INDUSTRY
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our business is affected by Canadian Radio-Television and Telecommunications Commission
(CRTC)&nbsp;decisions over the prices we charge for specific services, primarily local
telephone services and other operating requirements. The CRTC ensures that Canadians
have access to reliable telephone and other services at affordable prices. Some of our
subsidiaries, such as Bell Canada, Aliant, T&#233;l&#233;bec Limited Partnership (T&#233;l&#233;bec) and NorthernTel
Limited Partnership (NorthernTel), are regulated by the CRTC pursuant to the
<I>Telecommunications Act</I>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">RECENT CHANGES TO ACCOUNTING POLICIES AND STANDARDS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Aliant&#146;s Directory Business
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Effective January&nbsp;1, 2005, we defer and amortize revenues
and expenses from Aliant&#146;s directory business over the period of circulation, which is usually 12&nbsp;months. Prior to
January&nbsp;1, 2005, we recognized revenues and expenses from on the
publication date. The impact on our consolidated statements of operations for the year ended
December&nbsp;31, 2005 and the comparative periods is negligible. We did not
restate the statements of operations for prior periods. At December&nbsp;31,
2004, the restatement of the balance sheet resulted in:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a decrease of $23million in accounts receivable
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> an increase of $1million in other current assets
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a decrease of $8&nbsp;million in accounts payable and
accrued liabilities
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a decrease of $6&nbsp;million in non-controlling interest
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> an increase of $8&nbsp;million in the deficit.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The CICA issued revisions to section 3860 of the CICA Handbook,
<I>Financial Instruments &#151; Disclosure and Presentation</I>. The revisions require financial
instruments that meet specific criteria to be classified as liabilities on the balance sheet
instead of equity. Adopting this revised section on January&nbsp;1, 2005 did not
affect our consolidated financial statements because we do not have any instruments that meet the
specific criteria.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">FUTURE CHANGES TO ACCOUNTING STANDARDS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Comprehensive Income
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The CICA issued section 1530 of the CICA Handbook,
<I>Comprehensive Income</I>, which describes how to report and disclose comprehensive income
and its components. These changes come into effect for fiscal years beginning on or after October
1, 2006.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comprehensive
income is the change in a company&#146;s net assets that results
from transactions, events and circumstances from sources other than
the company&#146;s shareholders. It includes
items that would not normally be included in net earnings, such as:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> changes in the currency translation adjustment relating to self-sustaining foreign operations
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> unrealized gains or losses on available-for-sale investments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The CICA also made changes to section 3250 of the CICA Handbook, <I>Surplus</I>, and reissued it as section 3251,
<I>Equity</I>. The section is also effective for fiscal years beginning on or after October
1, 2006. The changes in how to report and disclose equity and
changes in equity are consistent with the new requirements of section 1530,
<I>Comprehensive Income</I>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When we adopt these sections on January&nbsp;1,
2007, we will report the following items in the consolidated financial statements:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> comprehensive income and its components
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> accumulated other comprehensive income and its
components.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 71</I>
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The CICA issued section 3855 of the CICA Handbook,
<I>Financial Instruments &#151; Recognition
and Measurement</I>, which describes the
standards for recognizing and measuring
financial assets, financial liabilities and
non-financial derivatives. These changes
come into effect for fiscal years beginning
on or after October&nbsp;1,
2006. This section requires
that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> all financial assets be measured at fair value, with some exceptions for loans and
investments that are classified as held to maturity
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> all financial liabilities be measured at fair value if they are derivatives or
classified as held for trading
purposes. Other financial liabilities are measured at their carrying value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> all derivative financial instruments be measured at fair value, even when they are
part of a hedging
relationship.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The CICA has also reissued section 3860 of the CICA Handbook as
section 3861, <I>Financial Instruments &#151;Disclosure and Presentation</I>, which
establishes standards for presentation of financial instruments and non-financial derivatives, and
identifies the information that should be disclosed about them. These revisions come into effect
for fiscal years beginning on or after October&nbsp;1, 2006. These new
accounting standards are not expected to have a significant effect on our financial results in
2007.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Hedges
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The CICA issued section 3865 of the CICA Handbook,
<I>Hedges</I>, which describes how and when hedge accounting can be used. These changes come
into effect for fiscal years beginning on or after October&nbsp;1, 2006 .
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hedging is an activity used by a company to change an exposure to one or more risks by
creating an offset between:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> changes in the fair value of a hedged item and a hedging item, or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> changes in the cash flows attributable to a hedged item and a hedging item, or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> changes resulting from a risk exposure related to a hedged item and a hedging item.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Hedge accounting ensures that all gains, losses, revenues and expenses from the derivative and the
item it hedges are recorded in the statement of operations in the same period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We do not expect the new standard to have a significant effect on our financial results in
2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Non-Monetary Transactions
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The CICA has reissued section 3830 of the CICA Handbook as
section 3831, <I>Non-Monetary Transactions</I>, which establishes standards for the
measurement and disclosure of non-monetary transactions. It also includes criteria for defining
&#145;commercial substance&#146; that replace the criteria for
defining &#145;culmination of the earnings process&#146; in the former
section. These changes come into effect for
fiscal years beginning on or after January&nbsp;1, 2006. Adopting this section
on January&nbsp;1, 2006 will not have a material effect on our future
consolidated financial statements.
</DIV>

<DIV align="left">
<A name="144"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>NOTE 2: SEGMENTED INFORMATION</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We report our results of operations under five segments: <I>Residential </I>(formerly
known as the <I>Consumer </I>segment), <I>Business</I>, <I>Aliant</I>, <I>Other Bell
Canada</I> and <I>Other BCE</I>. Our segments reflect how we manage our business and how we classify our
operations for planning and measuring performance.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Residential segment provides local telephone, long distance, wireless, Internet access,
video and other services to Bell canada&#146;s residential customers, mainly in Ontario and Qu&#233;bec. Wireless services are also offered
in Western Canada and video services are provided nationwide.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Business segment provides local telephone, long distance, wireless, data (including
Internet access) and other services to Bell canada&#146;s small and medium-sized businesses and large enterprise customers in
Ontario and Qu&#233;bec, as well as business customers in Western Canada.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Aliant segment provides local telephone, long distance, wireless, data (including Internet
access) and other services to residential and business customers in Atlantic Canada, and represents
the operations of our subsidiary, Aliant. At December&nbsp;31, 2005, Bell Canada
owned 53% of Aliant. The remaining 47% was publicly held.
</DIV>

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<DIV align="center">
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    <TD align="left" nowrap valign="top" colspan="3"><I>p. 72
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  <I>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</I></I>
</TD>
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</DIV>

<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The accounting policies used by the segments are the same as those we describe in Note
1, <I>Significant Accounting Policies</I>. Segments negotiate sales with each other as if they
were unrelated parties.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We measure the profitability of each segment based on its operating income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our operations, including most of our revenues, capital assets and goodwill, are located in
Canada.
</DIV>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Other Bell Canada segment includes Bell
Canada&#146;s Wholesale business and the financial results of T&#233;l&#233;bec, NorthernTel and Northwestel. Our Wholesale business provides local telephone,
long distance, wireless, data and other services to competitors who resell these services. T&#233;l&#233;bec,
NorthernTel and Northwestel provide telecommunications services to less populated areas of Qu&#233;bec,
Ontario and canada&#146;s northern territories. At December&nbsp;31, 2005, Bell Canada owned 100%
of Northwestel and 63% of T&#233;l&#233;bec and NorthernTel. The Bell Nordiq Income Fund
owned the remaining 37%.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Other BCE segment includes the financial results of our media and satellite
businesses as well as the costs incurred by our corporate office. This segment includes Bell
Globemedia Inc. (Bell Globemedia) and Telesat Canada (Telesat).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell Globemedia provides information and entertainment services to Canadian customers and
access to distinctive Canadian content. It includes CTV Inc. (CTV), and <I>The
Globe and Mail. </I>BCE Inc. owns 68.5% of Bell Globemedia. The Woodbridge Company Limited and affiliates own
the remaining 31.5%. On December&nbsp;2, 2005,BCE Inc.
announced its decision to reduce its interest in Bell Globemedia to 20%, contingent on
regulatory approval. Since we will have a continuing interest in Bell Globemedia, it is not
presented as a discontinued operation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Telesat provides satellite communications and systems management and is a consultant in
establishing, operating and upgrading satellite systems worldwide. BCE Inc. owns
100% of Telesat.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In classifying our operations for planning and measuring performance, all restructuring and
other items at Bell Canada and its subsidiaries except for Aliant are included in the Other Bell
Canada segment and not allocated to the Residential or Business segments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The tables below are a summary of financial information by segment for the last three years.
</DIV>
<DIV align="center">
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">INTER-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">SEGMENT</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">INTER-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">ELIMINA-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">SEGMENT</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">OTHER</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">TIONS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">ELIMINA-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">BELL</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">- BELL</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">BELL</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">OTHER</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">TIONS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">CONSOLI-</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">RESIDENTIAL</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">BUSINESS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">ALIANT</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">CANADA</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">CANADA</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">CANADA</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">BCE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">- OTHER</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">DATED</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="37" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>For the year ended
December&nbsp;31, 2005</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Operating revenues</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">External customers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7,527</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>5,965</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,958</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,768</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>17,218</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,887</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>19,105</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Inter-segment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>72</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>155</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>139</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>190</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(524</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>32</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>206</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(238</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="37" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total operating revenues</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7,599</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>6,120</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,097</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,958</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(524</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>17,250</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,093</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(238</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>19,105</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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"><B>Operating income</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,001</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>910</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>396</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>448</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,755</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>293</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4,048</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>8</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(981</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(893</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-controlling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(267</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="37" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Earnings from continuing
operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,915</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Segment assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>14,405</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>12,319</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,681</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,785</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>34,190</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>6,440</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>40,630</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investments at equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>89</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>89</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Capital expenditures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1,519</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(897</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(363</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(343</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(3,122</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(306</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(3,428</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="37" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>





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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 73</I>
</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="19%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">INTER-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">SEGMENT</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">INTER-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">ELIMINA-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">SEGMENT</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">OTHER</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">TIONS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">ELIMINA-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">BELL</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&#150;BELL</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">BELL</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">OTHER</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">TIONS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">CONSOLI-</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">RESIDENTIAL</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">BUSINESS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">ALIANT</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">CANADA</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">CANADA</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">CANADA</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">BCE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&#150;OTHER</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">DATED</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="37" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>For the year ended
December&nbsp;31, 2004</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Operating revenues</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">External customers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,440</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,652</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,894</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,736</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,722</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,646</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,368</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Inter-segment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">199</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">203</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(538</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(261</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="37" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total operating revenues</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,502</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,851</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,033</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,939</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(538</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,787</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,842</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(261</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,368</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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"><B>Operating income (loss)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,119</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">896</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">268</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(588</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,695</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">199</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,894</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">407</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(999</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(681</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-controlling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(174</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="37" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Earnings from continuing
operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,447</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Segment assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,965</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,764</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,685</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,533</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,947</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,193</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,140</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investments at equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">110</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Capital expenditures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,371</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,008</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(295</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(352</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,026</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(293</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,319</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="37" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>For the year ended
December&nbsp;31, 2003</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Operating revenues</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">External customers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,142</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,564</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,909</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,868</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,483</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,574</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,057</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Inter-segment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">263</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">147</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(490</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">131</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">187</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(318</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="37" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total operating revenues</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,203</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,827</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,059</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,015</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(490</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,614</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,761</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(318</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,057</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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"><B>Operating income</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,019</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">781</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">415</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">621</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,836</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">194</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,030</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">177</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,100</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,086</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-controlling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(201</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="37" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Earnings from continuing
operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,820</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Segment assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,321</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,648</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,840</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,698</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,507</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,895</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,402</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investments at equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">398</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">398</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">496</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Capital expenditures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,287</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(936</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(333</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(336</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,892</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(209</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,101</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="37" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="145"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>NOTE 3: BUSINESS ACQUISITIONS</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The consolidated statements of operations include the results of acquired businesses from the
date they were purchased.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We made a number of business acquisitions in 2005, including:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> <I>NR Communications Ltd. (NR Communications) </I>&#151; In February
and November&nbsp;2005, Bell Canada acquired 100% of the outstanding shares of
NR Communications, which holds a 50% ownership in Inukshuk, a joint
venture entered into with Rogers Communications Inc. to provide wireless broadband services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> <I>Nexxlink Technologies Inc. (Nexxlink) </I>&#151; In February&nbsp;2005, Bell Canada
acquired 100% of the outstanding shares of Nexxlink, a provider of integrated IT
solutions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Of the goodwill acquired in 2005 :
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> $90&nbsp;million relates to the Business segment, $23 million relates
to the Residential segment, $11&nbsp;million relates to the Other Bell Canada segment and
$7&nbsp;million relates to the Other BCE segment
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> $43&nbsp;million is deductible for tax purposes.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>





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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 74 </I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</I>
</DIV>
<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Infostream is a systems and storage technology firm that provides networking solutions for
voice over Internet protocol (VoIP), storage area networks and network management.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Charon is a full-service IT solutions provider that specializes in server-based computing,
systems integration, IT security, software development and IT consulting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Elix offers technology consulting, integration and implementation of call routing and management
systems, IT application integration, and design and implementation of electronic
voice-driven response systems.
</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">We made the following business acquisitions in 2004 :
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> <I>Canadian operations of 360 networks Corporation (360 networks)</I>
&#151; In November&nbsp;2004 , Bell Canada acquired the Canadian operations of
360 networks, a telecommunications service provider. The purchase included the shares of
360 networks&#146; Subsidiary GT Group Telecom Services Corporation and certain related
interconnected U.S. network assets. Following the purchase, Bell Canada sold the retail customer
operations in Central and Eastern Canada to Call-Net Enterprises Inc. (Call-Net). For a share of
the revenues, Bell Canada now provides network facilities and other operations and support services
to Call-Net so it can service its new customer base. The fair value of the net assets acquired
exceeded the purchase price. For accounting purposes, the excess was eliminated by:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; reducing the amounts assigned to the acquired non-monetary assets to nil
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;  recognizing the balance of $69&nbsp;million as an extraordinary gain in our
consolidated statement of operations.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> <I>DownEast Mobility Limited (DownEast) </I>&#151; In October&nbsp;2004 , Aliant
acquired 100% of the outstanding shares of DownEast, a communication solutions
retailer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> <I>Bell West </I>&#151; In August&nbsp;2004, Bell Canada acquired Manitoba Telecom
Services Inc.&#146;s (MTS) 40% interest in Bell West. Bell Canada now owns
100% of Bell West.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> <I>Infostream Technologies Inc. (Infostream) </I>&#151; In May&nbsp;2004, Bell Canada
acquired 100% of the outstanding shares of Infostream.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> <I>Charon Systems Inc. (Charon)</I>&#151; In May&nbsp;2004, Bell Canada acquired
100% of the assets of Charon.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> <I>Elix Inc. (Elix) </I>&#151; In March&nbsp;2004, Bell Canada acquired subsidiary
75.8% of the outstanding shares of Elix.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> <I>Accutel Conferencing Systems Inc. (Canada) and Accutel Conferencing Systems Corp. (U.S.)
(collectively Accutel) </I>&#151;In February&nbsp;2004 , Bell Canada acquired 100%
of the outstanding shares of Accutel, which provides teleconferencing services.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Of the goodwill acquired in 2004:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> $451&nbsp;million relates to the Business segment, $4&nbsp;million relates to
the Residential segment, $31&nbsp;million relates to the Aliant segment, and $75
million relates to the Other Bell Canada segment
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> $18&nbsp;million is deductible for tax purposes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following tables provide a summary of all business acquisitions made in 2005 and
2004. The purchase price allocation for all 2005 acquisitions includes
certain estimates. The final purchase price allocation for each business acquisition will be
completed within 12&nbsp;months of the acquisition date.
</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="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000">2005</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">ALL OTHER</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">NR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">NEXXLINK</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">BUSINESS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">COMMUNI-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">TECHNOL-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">ACQUI-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000" nowrap align="right" colspan="2">CATIONS LTD.</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000" nowrap align="right" colspan="2">OGIES INC.</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000" nowrap align="right" colspan="2">SITIONS</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000" nowrap align="right" colspan="2">TOTAL</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left"><B>&nbsp;</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Consideration received:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Non-cash working capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(16</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(12</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(19</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Capital assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">85</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">128</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other long-term assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Indefinite-life intangible assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Goodwill</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">84</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">131</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(61</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(61</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other long-term liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(12</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(18</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD style="border-bottom: 1px solid #000000" colspan="17" align="left"><B>&nbsp;</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">107</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">241</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Cash and cash equivalents (bank indebtedness) at acquisition</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net assets acquired</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">261</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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"><B>Consideration given: </B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">105</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">241</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Acquisition costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-cash</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">261</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>(1)&nbsp;This does not include contingent payments of $8&nbsp;million that may be paid if
certain conditions specified in the purchase agreements are met. If the payments are made,
the amounts will be allocated to goodwill.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>





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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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





<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 75</I>
</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="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000">2004</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">CANADIAN</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">40%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">ALL OTHER</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">OPERATIONS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">INTEREST</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">BUSINESS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">OF</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">IN BELL</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">ACQUI-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">360 NETWORKS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">WEST</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">SITIONS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">TOTAL</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Consideration received:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Non-cash working capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Capital assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other long-term assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">429</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">444</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Goodwill</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">395</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">166</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">561</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other long-term liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(58</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(58</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-controlling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">261</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">261</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">362</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">646</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">198</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,206</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Bank indebtedness at acquisition</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net assets acquired</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">362</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">646</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">194</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,202</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Extraordinary gain</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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"><B>Consideration given:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">283</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">645</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">174</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,102</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Acquisition costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Future cash payment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Issuance of 582,081 Alliant common shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">293</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">646</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">194</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,133</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="146"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>NOTE 4: RESTRUCTURING AND OTHER ITEMS</I>
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2003</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Restructuring initiatives</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(55</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,063</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loss on long-term contract</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(128</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Settlement with MTS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other charges</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(108</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(14</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Restructuring and
other items</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(55</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,224</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(14</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below provides a summary of the restructuring costs recognized in 2005
as well as the corresponding liability as at December&nbsp;31, 2005 .
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">BELL</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">CONSOLI-</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">CANADA</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">ALIANT</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">DATED</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance in accounts payable
and accrued liabilities at
December&nbsp;31 , 2004</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">187</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2005 restructuring initiatives</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(74</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(54</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(128</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Reversal of excess provision</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(45</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(45</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Balance in accounts payable
and accrued liabilities at
December&nbsp;31, 2005</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>52</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>13</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>65</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">EMPLOYEE DEPARTURE PROGRAM &#151; BELL CANADA
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In 2005, we recorded pre-tax restructuring charges of $55
million consisting of:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> charges of $51&nbsp;million related to new restructuring initiatives for the
involuntary departure of approximately 950 employees
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> charges of $49&nbsp;million for relocating employees and closing real estate
facilities that are no longer needed because of the reduction in the workforce from the 2004
employee departure program.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These charges were partly offset by reversals of restructuring provisions of $45
million that were no longer necessary since actual payments were lower than estimated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The 2004 employee departure program is complete and the remaining payments extend
to 2007. In addition, we expect to spend approximately $25&nbsp;million in
2006 for relocating employees and closing real estate facilities that are no longer
needed because of our restructuring initiatives.
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>





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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 76 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2004, we recorded a pre-tax restructuring charge of $985
million related to approximately 5,000 employee departures under the departure
program that Bell Canada announced in June&nbsp;2004. The program consisted of two phases:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> an early retirement plan &#151;3,950 employees chose to receive a package that
included a cash allowance, immediate pension benefits, an additional guaranteed pension payable up
to 65&nbsp;years of age, career transition services and post-employment benefits
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a departure plan &#151; 1,050 employees chose to receive a special cash
allowance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We also recorded a pre-tax charge of $11&nbsp;million for relocating employees and closing
real estate facilities that were no longer needed because of the employee departure program.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">EMPLOYEE DEPARTURE PROGRAM &#151; ALIANT
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In 2004 , Aliant recorded a pre-tax restructuring charge of $67
million. Under the employee departure program, 693 employees chose to receive a
cash allowance. The program is complete and the remaining payments extend to 2008 .
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">LOSS ON LONG-TERM CONTRACT
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In 2001 , we entered into a contract with the Government of Alberta to build a
next-generation network to bring high-speed Internet and broadband capabilities to rural
communities in Alberta. In 2004 , we identified cost overruns on the contract and
recorded a charge of $128&nbsp;million. We obtained acceptance from the Government of
Alberta during the fourth quarter of 2005 .
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">SETTLEMENT WITH MTS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On May&nbsp;20, 2004, Bell Canada filed a lawsuit against MTS
after MTS announced it would purchase Allstream Inc. (Allstream). Bell Canada
sought damages and an injunction that would prevent MTS from breaching the terms and
conditions of the commercial agreements it had with Bell Canada. On June&nbsp;3,
2004, Bell Canada also filed a lawsuit against Allstream seeking damages related to the
same announcement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On June&nbsp;30, 2004, BCE Inc. reached an agreement with
MTS to settle the lawsuits. The terms of the settlement included:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a payment of $75&nbsp;million by MTS to Bell Canada for
unwinding various commercial agreements. This settlement was recorded in the second quarter of 2004 and
received on August&nbsp;3, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the removal of contractual competitive restrictions
to allow Bell Canada and MTS to compete freely with
each other, effective June&nbsp;30, 2004
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the orderly disposition of our interest in MTS. Our
voting rights in MTS were waived after receiving the
$75&nbsp;million payment. We sold our interest in MTS in
December&nbsp;2004. See Note 5, <I>Other Income</I>, for more
information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a premium payment to us by MTS in the event there
is a change in control of MTS before 2006. The payment will equal the
appreciation in MTS&#146;s share price
from the time of our divestiture to the time of any
takeover transaction.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">OTHER CHARGES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During 2004, we recorded other pre-tax charges totalling $108
million. These costs consisted mostly of future lease costs for facilities that were no
longer needed, asset write-downs and other provisions, net
of a reversal of previously recorded restructuring charges that were no longer necessary because of
the introduction of a new employee departure program.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2003, Bell Canada recorded other charges of $65&nbsp;million that
related to various asset write-downs and other provisions. These charges were offset by a credit of
$66&nbsp;million relating to the reversal of the restructuring charges recorded in
2002, which were no longer necessary because fewer employees were terminated than
expected. This resulted from an increase in the number of employees being transferred to other
positions within Bell Canada.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2003, Aliant recorded a pre-tax restructuring charge of $15
million. This was a result of a restructuring plan at its subsidiary Xwave Solutions Inc.
Costs associated with the restructuring include severance and related benefits, technology lease
cancellation penalties and real estate rationalization costs. The restructuring was completed in
2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 77</I>
</DIV>

<DIV align="left">
<A name="147"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>NOTE 5: OTHER INCOME</I>
</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="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">NOTE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2003</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Net gains on investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>33</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">320</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>19</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Capitalized interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>15</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Securitization losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(34</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(26</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(33</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Bell Canada International Inc. (BCI)&nbsp;loss monetization charge</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(33</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Debt restructuring costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(14</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Income (loss)&nbsp;from cost and equity investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(11</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Foreign currency gains (losses)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(4</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>37</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(25</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Other income</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>8</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">407</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">177</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">NET GAINS ON INVESTMENTS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Net gains on investments of $33&nbsp;million in 2005 included:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a $39&nbsp;million dilution gain in our interest in TerreStar Networks Inc., a mobile satellite services company
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a $7&nbsp;million write-down of Bell Globemedia&#146;s investment in TQS Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> other net gains on investments of $1&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Net gains on investments of $320&nbsp;million in 2004 were from:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a $108&nbsp;million gain from the sale of Bell Canada&#146;s remaining 3.24% interest in YPG General Partner Inc.
(YPG)&nbsp;for net cash proceeds of $123&nbsp;million
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a $217&nbsp;million gain from the sale of BCE Inc.&#146;s 15.96%
interest in MTS for net cash proceeds of $584&nbsp;million.
On August&nbsp;1, 2004, the MTS shares were transferred from Bell
Canada to BCE Inc. as part of a corporate reorganization. The purpose of this
reorganization was to ensure that capital loss carryforwards at BCE Inc. would be
available to be utilized against the gain on the sale of the MTS shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> other net losses on investments of $5&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Net gains on investments of $76&nbsp;million in 2003 were from:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a $120&nbsp;million gain from the sale of a 3.66% interest in YPG for net cash proceeds of $135 million
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a $44 million loss from the write-down of number of our cost-accounted investments.
</DIV>

<DIV align="left">
<A name="148"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>NOTE 6: INTEREST EXPENSE</I>
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2003</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense on long-term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(939</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(954</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,030</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense on other debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(42</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(45</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(70</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total interest expense</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(981</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(999</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,100</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="149"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>NOTE 7: INCOME TAXES</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below reconciles the amount of reported income tax expense in the statements of
operations with income tax expense at Canadian statutory rates of
 34.4% in 2005, 34.4% in 2004, and 35.4% in 2003.
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2003</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income taxes computed at
statutory rates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1,057</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(790</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,100</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Savings from BCI
monetization transaction</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>99</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net gains on investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Large corporations tax</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(34</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(37</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(46</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>99</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total income tax expense</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(893</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(681</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,086</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below shows the significant
components of income tax expense that
related to earnings from continuing
operations.
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2003</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(147</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(716</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(677</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Future income taxes
Utilization of loss
carryforwards</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(244</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(38</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(402</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Change in statutory rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(21</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Change in temporary
differences and other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(502</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total income tax expense</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(893</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(681</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,086</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 78 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below shows future income
taxes resulting from temporary differences
between the carrying amounts of assets and
liabilities for accounting purposes and the
amounts used for tax purposes, as well as
tax loss carryforwards.
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-capital loss carryforwards</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>565</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">809</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Capital loss carryforwards</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>23</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Capital assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(508</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(289</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Indefinite-life intangible assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(339</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(339</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Employee benefit plans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>82</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">91</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>35</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(986</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(756</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total future income taxes</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1,128</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(412</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Future income taxes are comprised of:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Future income tax asset &#151;
current portion</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>474</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">485</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Future income tax asset &#151;
long-term portion</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>511</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">744</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Future income tax liability &#151;
current portion</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(5</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Future income tax liability &#151;
long-term portion</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(2,108</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,633</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total future income taxes</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1,128</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(412</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">At December&nbsp;31,
2005, BCE had
$1,770&nbsp;million in non-capital
loss carryforwards. We:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> recognized a future tax asset of
$565&nbsp;million for financial
reporting purposes for approximately
$1,686&nbsp;million of the
non-capital loss carryforwards. Of the
total, $1,614&nbsp;million expires
in varying annual amounts until the end of
2015. The balance expires in
varying annual amounts from 2016
to 2025.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> did
not recognize a future tax asset for
financial reporting purposes for
approximately $84&nbsp;million of
the non-capital loss carryforwards. Of the
total, $12&nbsp;million expires in
varying annual amounts until the end of
2015. The balance expires in
varying annual amounts from 2016
to 2025.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">At December&nbsp;31,
2005, BCE had
$4,507&nbsp;million in capital loss
carryforwards, which can be carried forward
indefinitely. We:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> recognized a
future tax asset of $23&nbsp;million
for financial reporting purposes for
approximately $102&nbsp;million of
the capital loss carryforwards
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
did not recognize a future tax asset
for financial reporting purposes on the
balance.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BCI LOSS MONETIZATION TRANSACTION
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On April&nbsp;15,
2005, 3787915
Canada Inc., a wholly-owned
subsidiary of Bell Canada, acquired
$17&nbsp;billion in preferred shares from
3787923 Canada Inc., a
wholly-owned subsidiary of BCI.
3787923 Canada Inc. used the
proceeds to advance $17&nbsp;billion
to BCI through a subordinated
interest-free loan. BCI then
advanced $17&nbsp;billion to
3787915 Canada Inc. by way of a
subordinated interest-bearing demand loan,
the funds being used to repay a daylight
loan granted to 3787915 Canada
Inc. to make the initial preferred share
investment. The dividend rate on the
preferred shares was equal to
5.1%, which was essentially the
same as the interest rate on the loan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This transaction was unwound on August
18, 2005, and was
part of a tax loss consolidation strategy
that followed the transaction steps laid
out in an advance tax ruling granted by the
Canada Revenue Agency to Bell Canada and
BCI. The transaction also
received the approval of the Ontario
Superior Court of Justice, which is
supervising BCI&#146;s voluntary
plan of arrangement pursuant to which
BCI is monetizing its assets
and resolving outstanding claims against
it, with the ultimate objective of
distributing the net proceeds to its
shareholders and dissolving the company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3787915 Canada Inc. had
the legal right and intention to offset the
demand loan payable to BCI and
the investment in preferred shares of
3787923 Canada Inc. As a
result, these items and the related
interest expense and dividend income were
presented on a net basis. The tax savings
of $99&nbsp;million resulting from
the interest expense were presented as a
reduction of income tax expense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCI will be compensated
for the use of its losses by Bell Canada
through a capital contribution to be made
by BCE Inc. of 88%
of the realized tax savings.
BCE Inc.&#146;s ownership interest
in BCI remains at
62%. As a result:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> BCE Inc.&#146;s carrying value
of its investment in BCI was
increased to reflect the increase in
BCE Inc.&#146;s share of the
expected proceeds upon BCI&#146;s
eventual liquidation
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> a charge
to other income was recorded to reflect the
non-controlling interest&#146;s portion of the
capital contribution to be made by
BCE Inc.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 79</I>
</DIV>


<DIV align="left">
<A name="150"></A>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>NOTE 8: DISCONTINUED OPERATIONS</I>
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2003</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CGI Group Inc. (CGI)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>46</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Emergis</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(154</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Teleglobe Inc. (Teleglobe)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Aliant&#146;s emerging
business segment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Aliant&#146;s emerging
communications segment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net gain (loss)&nbsp;from
discontinued operations</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>46</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below is a summarized statement of operations for the discontinued operations.
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2003</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>897</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">941</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,629</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Operating gain from discontinued
operations, before tax</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>74</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">84</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Future income tax asset
impairment charge</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(56</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gain (loss)&nbsp;from discontinued
operations, before tax</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(70</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income tax expense on
operating gain</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(27</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(40</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(62</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income tax recovery (expense)
on loss (gain)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-controlling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(40</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net gain (loss)&nbsp;from
discontinued operations</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>46</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below is a summary of cash provided by
discontinued operations.
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2003</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash flows from operating
activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>128</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">91</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">260</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash flows (used in) from
investing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(19</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(42</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash flows (used in) from
financing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(94</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">101</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(60</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash provided by
discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>15</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">350</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">CGI
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On December&nbsp;16,
2005, we announced our decision
to sell our investment in CGI
and that CGI would
purchase 100&nbsp;million of the
Class&nbsp;A shares held by us. As at December
31, 2005, we have
accounted for CGI as a
discontinued operation and no longer
proportionately consolidate its financial
results. CGI was previously
presented in the Other BCE
segment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The transaction was finalized on
January&nbsp;12, 2006
and we realized total proceeds of
$859&nbsp;million. The gain on
disposition was
approximately $90&nbsp;million.
As a result of the transaction, our
ownership in CGI decreased from
29.8% to 8.6%. Our
remaining investment will be accounted for
at cost.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our current IS/IT
outsourcing contract with CGI
has been extended by four
years until June&nbsp;2016.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our proportionate share of
CGI&#146;s operating leases and
other contractual obligations is $378
million ( $72&nbsp;million in
2006, $53&nbsp;million
in 2007, $39
million in 2008,
$33&nbsp;million in
2009, $28&nbsp;million
in 2010 and $153
million thereafter).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">EMERGIS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In May&nbsp;2004, our board of
directors approved the sale of our
63.9% interest in Emergis, and
in June&nbsp;2004 we completed the
sale by way of a secondary public offering.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June&nbsp;2004, Bell Canada
paid $49&nbsp;million to Emergis
for:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the purchase of Emergis&#146; Security business
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the early termination of the Bell Legacy Contract on
June&nbsp;30, 2004 rather than December&nbsp;31, 2004
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the transfer of related
intellectual property to Bell Canada.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">These transactions were recorded on a net
basis. The net proceeds from the sale of
Emergis were $285&nbsp;million (net
of $22&nbsp;million of selling costs
and a $49&nbsp;million consideration
given to Emergis).
The gain on the transaction was $58
million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The operating loss includes a future
income tax asset impairment charge of
$56&nbsp;million ( $36
million after non-controlling
interest), which Emergis recorded before
the sale as a result of the unwinding of
tax loss utilization strategies that had
been in place between Emergis,
4122780 Canada Inc. (a
wholly-owned subsidiary of Emergis) and
Bell Canada.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Emergis completed the sale of its
US Health operations in March
2004 for US$223
million in cash. The loss on the
transaction was $87&nbsp;million
( $160&nbsp;million after
non-controlling interest and BCE
Inc.&#146;s incremental goodwill), which
was recorded in December&nbsp;2003.
Emergis was presented previously as a
separate segment.
</DIV>
<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Emergis
provides e-business
solutions to the
financial services
industry in North
America and the
health-care
industry in Canada.
It automates
transactions
between companies
and allows them to
interact and
transact
electronically.
Before Emergis sold
its Security
business it also
provided
organizations with
the related
security services.
Before it sold its
US Health
operations, Emergis
also operated cost
containment
networks that
processed medical
claims for
health-care payers,
including insurance
companies and
self-insured
entities.
</DIV>

</DIV>
<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>


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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 80 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</I>
</DIV>

<DIV style="width: 99%; border: 1px solid black; padding: 11px; margin-top:6pt">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Teleglobe
provided
international voice
and data
telecommunications
services. It also
provided retail
telecommunications
services through
its investment in
the Excel
Communications
group until the
second quarter of
2002. These
services included
long distance,
paging and Internet
services to
residential and
business customers
in North America.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Aliant&#146;s emerging
business segment
consisted mainly of
Aliant&#146;s
investments in
iMagicTV
Inc., Prexar
LLC and
AMI
Offshore Inc.
iMagicTV
Inc. is a
software
development company
that provides
broadband TV
software and
solutions to
service providers
around the world.
Prexar LLC
is an Internet
services provider.
AMI
Offshore Inc.
provides process
and systems control
technical services,
and contracts
manufacturing
solutions to
offshore oil and
gas and other
industries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Aliant&#146;s remote
communications
segment consisted
of Aliant&#146;s
53.2%
investment in
Stratos. Stratos
offers Internet
Protocol
(IP), data
and voice access
services through a
range of emerging
and established
technologies,
including satellite
and microwave, to
customers in remote
locations.
</DIV>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">TELEGLOBE
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Effective April&nbsp;24,
2002, we started presenting the
financial results of Teleglobe as a
discontinued operation. They were
previously presented as a separate segment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The net gain of $39
million in 2003 related
mainly to the use of available loss
carryforwards that were applied against the
taxes payable relating to Bell Canada&#146;s
sale of a 3.66% interest in the
directories business and Aliant&#146;s sale of
Stratos Global Corporation (Stratos). The
tax benefit associated with the remaining
unused capital losses has not been
reflected in the financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ALIANT&#146;S REMOTE COMMUNICATIONS SEGMENT
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Effective December&nbsp;2003, we started presenting the financial results of Aliant&#146;s remote communications segment
as a discontinued operation. They were previously presented in the Bell Canada segment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Almost all of the assets of Aliant&#146;s
emerging business segment were sold at
December&nbsp;31, 2003.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ALIANT&#146;S EMERGING BUSINESS SEGMENT
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Effective May&nbsp;2003, we
started presenting the financial results of
Aliant&#146;s emerging business segment as a
discontinued operation. They were
previously presented in the Bell Canada
segment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December&nbsp;2003, Aliant
completed the sale of Stratos after
receiving the required regulatory
approvals. Aliant received $340
million ( $320&nbsp;million net
of selling costs) in cash for the sale. The
transaction resulted in a gain on sale of
$105&nbsp;million ( $48
million after taxes and
non-controlling interest).
</DIV>
<DIV align="left">
<A name="151"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>NOTE 9: EARNINGS PER SHARE</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below is a reconciliation of the numerator and the denominator used in the
calculation of basic and diluted earnings per common share from continuing operations.
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2003</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Earnings from continuing operations (numerator)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Earnings from continuing operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,915</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,447</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,820</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividends on preferred shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(70</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(70</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(64</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Premium on redemption of preferred shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(7</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Earnings from continuing operations &#151; basic</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,845</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,377</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,749</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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"><B>Weighted average number of common shares outstanding (denominator) </B>(in millions)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average number of common shares outstanding &#151; basic</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>926.8</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">924.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">920.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Assumed exercise of stock options <SUP style="font-size: 85%; vertical-align: text-top">(1)</sup></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.3</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Weighted average number of common shares outstanding &#151; diluted</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>927.1</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">925.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">921.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



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

<TR valign="top">
    <TD nowrap align="left"><I>(1)</I></TD>
    <TD>&nbsp;</TD>
    <TD><I>The calculation of the assumed exercise of stock options includes the effect of the
average unrecognized future compensation cost of dilutive options. It does not include
anti-dilutive options. These are options that would not be exercised because their exercise
price is higher than the average market value of a BCE Inc. common share for each
of the periods shown in the table. Including them would cause our diluted earnings per share
to be overstated. The number of excluded options was 24,466,767 in 2005,
26,693,305 in 2004 and 22,176,302 in 2003.</I></TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 81</I>
</DIV>

<DIV align="left">
<A name="152"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>NOTE 10: ACCOUNTS RECEIVABLE</I>
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Trade accounts receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,842</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance for doubtful accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(130</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(144</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance for revenue adjustments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(118</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(102</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income taxes receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>48</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other accounts receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>124</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">96</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,766</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,951</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">SECURITIZATION OF ACCOUNTS RECEIVABLE
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Bell Canada sold an interest in a
pool of accounts receivable to a
securitization trust for a total of
$1.2&nbsp;billion in cash at
December&nbsp;31, 2005
($1&nbsp;billion at December
31, 2004), under a
revolving sales agreement that came into
effect on December&nbsp;12,
2001. The agreement expires on
December&nbsp;12, 2006.
Bell Canada had a retained interest of
$133&nbsp;million in the pool of
accounts receivable at December
31, 2005
($133&nbsp;million at December
31, 2004), which
equals the amount of overcollateralization
in the receivables it sold.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aliant sold an interest in a pool of
accounts receivable to a securitization
trust for a total of $120
million in cash at December
31, 2005
($125&nbsp;million at
December 31,
2004), under a revolving sales
agreement that came into effect on December
13, 2001. The
agreement expires on December
13, 2006. Aliant
had a retained interest of $39
million in the pool at December
31, 2005 ($43
million at
December&nbsp;31,
2004).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bell Canada and Aliant continue to
service these accounts receivable. The
buyers&#146; interest in the collection of these
accounts receivable ranks ahead of the
interests of Bell Canada and Aliant, which
means that Bell Canada and Aliant are
exposed to certain risks of default on the
amount securitized. They have provided
various credit enhancements in the form of
overcollateralization and subordination of
their retained interests.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The buyers will reinvest the amounts
collected by buying additional interests in
the Bell Canada and Aliant accounts
receivable until the agreements expire. The
buyers and their investors have no claim on
Bell Canada&#146;s and Aliant&#146;s other assets if
customers do not pay amounts owed on time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2005, we recognized a
pre-tax loss of $34&nbsp;million on
the revolving sale of accounts receivable
for the combined securitizations, compared
to $26&nbsp;million in 2004
and $33&nbsp;million in
2003.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
table below shows balances
for the combined securitizations at
December&nbsp;31, 2005
and the assumptions that were used in
the model on the date of transfer and at
December&nbsp;31, 2005.
A 10% or 20%
adverse change in each of these
assumptions would have no significant
effect on the current fair value of the
retained interest.
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">RANGE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securitized interest in
accounts receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,354</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,125</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Retained interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>172</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">176</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Servicing liability</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1.8</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average accounts
receivable managed</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,972</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,513</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Assumptions:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cost of funds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="right">2.54%&#151;2.86</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>2.86</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.58</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Average
delinquency ratio</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="right">7.70%&#151;12.32</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>12.32</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.20</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Average net
credit loss ratio</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="right">0.55%&#151;0.90</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>0.56</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.90</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Weighted average
life (days)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">32&#151;37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>37</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Servicing fee liability</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>2.00</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below is a summary of certain cash flows received from and paid to the trusts during the year.
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Collections reinvested in revolving sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>17,724</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,360</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Increase in sale proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>229</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="153"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>NOTE 11: OTHER CURRENT ASSETS</I>
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">NOTE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Future income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>474</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">485</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Inventory</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>338</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">295</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Prepaid expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>205</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">232</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>125</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,142</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,061</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 82 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</I>
</DIV>
<DIV align="left">
<A name="154"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>NOTE 12: CAPITAL ASSETS</I>
</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="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000">2004</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">ACCUMULATED</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">NET BOOK</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">ACCUMULATED</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">NET BOOK</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">COST</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">AMORTIZATION</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">VALUE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">COST</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">AMORTIZATION</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">VALUE</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="25" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Telecommunications assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Inside plant</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>19,246</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>13,358</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>5,888</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,011</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,452</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,559</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Outside plant</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>14,433</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>9,475</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4,958</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,303</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,107</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,196</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Station equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,655</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,311</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,344</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,167</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,910</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,257</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Machinery and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>6,273</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,685</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,588</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,529</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,039</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,490</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Buildings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,157</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,340</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,817</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,681</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,384</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,297</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Plant under construction</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,852</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,852</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,605</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,605</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Satellites</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,552</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>404</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,148</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,769</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">758</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,011</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Land</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>94</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>94</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>200</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>66</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>134</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">215</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">144</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="25" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total property, plant and equipment</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>49,462</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>29,639</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>19,823</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,375</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,721</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,654</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Finite-life intangible assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Software</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,163</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,497</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,666</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,158</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,274</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,884</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Customer relationships</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>623</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>64</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>559</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">603</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">561</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>27</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>13</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>14</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="25" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total capital assets</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>53,275</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>31,213</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>22,062</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,146</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,042</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,104</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="25" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The cost of assets under capital
leases was $1,283&nbsp;million at
December&nbsp;31, 2005,
and $848&nbsp;million at December
31, 2004. The net
book value of these assets was $887
million at December&nbsp;31,
2005, and $530
million at December&nbsp;31,
2004.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of capital assets was
$3,111&nbsp;million in
2005, $3,044
million in 2004, and
$3,048&nbsp;million in
2003.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We capitalized total interest costs of
$15&nbsp;million in
2005, $19&nbsp;million
in 2004, and $24
million in 2003.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additions to finite-life intangible assets
were $503&nbsp;million in 2005
and $619&nbsp;million in
2004.
</DIV>
<DIV align="left">
<A name="155"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>NOTE 13: OTHER LONG-TERM ASSETS</I>
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">NOTE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accrued benefit asset</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,164</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,128</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Future income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>511</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">744</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investments at cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>465</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">261</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investment tax credits receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>345</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investments at equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>89</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">110</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred debt issuance costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>77</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">82</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term notes and other receivables</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>63</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred development costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>16</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>184</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,914</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,628</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Investments at equity include
goodwill of $28
million at December&nbsp;31,
2005 and December
31, 2004.
Amortization of deferred charges was
$3&nbsp;million in 2005,
$12&nbsp;million in
2004, and $14
million in 2003.
</DIV>

<DIV align="left">
<A name="156"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>NOTE 14: INDEFINITE-LIFE INTANGIBLE ASSETS</I>
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Brand name</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,986</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,986</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Spectrum licences</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>895</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">778</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Television licences</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>132</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">134</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cable licences</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>18</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,031</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,916</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 83</I>
</DIV>

<DIV align="left">
<A name="157"></A>
</DIV>

<DIV align="left" style="font-size: 12pt; margin-top: 12pt"><I>NOTE 15: GOODWILL</I>
</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="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">OTHER</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">BELL</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">OTHER</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">CONSOLI-</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">NOTE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">RESIDENTIAL</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">BUSINESS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">ALIANT</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">CANADA</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">BCE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">DATED</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="29" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px"><B>Balance &#151; December&nbsp;31, 2004</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,062</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,833</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">562</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">289</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,756</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Additions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">90</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">131</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="29" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Balance &#151; December&nbsp;31, 2005</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,085</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,923</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>562</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>300</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,017</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7,887</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="29" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="158"></A>
</DIV>

<DIV align="left" style="font-size: 12pt; margin-top: 12pt"><I>NOTE 16: ACCOUNTS PAYABLE AND ACCRUED LIABILITIES</I>
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">NOTE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Trade accounts payable
and accruals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,782</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,830</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Compensation payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>548</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">506</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred revenues</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>441</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">385</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Taxes payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>274</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">216</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Restructuring charges payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>65</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">187</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Future income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>5</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other current liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>320</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">312</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,435</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,444</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="159"></A>
</DIV>

<DIV align="left" style="font-size: 12pt; margin-top: 12pt"><I>NOTE 17: DEBT DUE WITHIN ONE YEAR</I>
</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="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">WEIGHTED</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">WEIGHTED</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">AVERAGE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">AVERAGE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">NOTE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">INTEREST RATE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">MATURITY</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bank advances</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.37</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Notes payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.11</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center">30 days</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>80</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">137</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term debt due within one year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,286</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,117</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,373</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,272</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 6pt; width: 18%; border-top: 0px 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>N/A</I></TD>
    <TD>&nbsp;</TD>
    <TD><I>: Not applicable.</I></TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Restrictions
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Some of the credit agreements:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> require us to meet specific financial ratios
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> restrict our acquisition of capital assets
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> restrict the payment of dividends.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We are in compliance with all conditions and restrictions.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 84 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</I>
</DIV>
<DIV align="left">
<A name="160"></A>
</DIV>

<DIV align="left" style="font-size: 12pt; margin-top: 6pt"><I>NOTE 18: LONG-TERM DEBT</I>
</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="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">WEIGHTED</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">AVERAGE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">NOTE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">INTEREST RATE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">MATURITY</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>BCE Inc. &#151; Notes</B><SUP style="font-size: 85%; vertical-align: text-top">(a)</sup></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.86</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">2006 &#151;2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<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>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Debentures and notes<SUP style="font-size: 85%; vertical-align: text-top">(b)</sup></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.14</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">2006&#151;2054</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>8,380</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,246</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Subordinated debentures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8.21</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">2026&#151;2031</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>275</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">275</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Capital leases<SUP style="font-size: 85%; vertical-align: text-top">(c)</sup></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.16</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">2006&#151;2047</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>854</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">400</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>73</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total &#151; Bell Canada</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>9,582</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,996</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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"><B>Aliant</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Debentures, notes and bonds<SUP style="font-size: 85%; vertical-align: text-top">(d)</sup></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.65</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">2007&#151;2025</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>885</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">885</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>19</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total &#151; Aliant</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>904</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">896</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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"><B>Bell Globemedia</B><SUP style="font-size: 85%; vertical-align: text-top">(e)</sup></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Revolving reducing term credit agreements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.97</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>30</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Notes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.44</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">2009&#151;2014</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>450</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">450</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total &#151; Bell Globemedia</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>480</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">490</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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"><B>Telesat &#151; Notes and other</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.84</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">2006&#151;2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>340</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">289</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Other</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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"><B>Total debt</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>13,306</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,689</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unamortized premium<SUP style="font-size: 85%; vertical-align: text-top">(f)</sup></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>99</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">113</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: Amount due within one year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>17</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1,286</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,117</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Long-term debt</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>12,119</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,685</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 0px 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">(a)</TD>
    <TD>&nbsp;</TD>
    <TD>BCE Inc.</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All notes are unsecured. BCE
Inc. has the option to redeem
$1.7&nbsp;billion in notes at any
time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">(b)&nbsp;Bell Canada
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All debentures and notes are unsecured. They include:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> US$200&nbsp;million maturing
in 2006 and US$200
million maturing in 2010,
both of which have been swapped into
Canadian dollars
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> $125
million of long-term debt, which
includes a call option that allows for
early redemption of the debentures.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">(c) Bell Canada
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Capital leases include $353
million in 2005 and
$364&nbsp;million in
2004, netted by loans
receivable of $267&nbsp;million in
2005 and $284
million in 2004. These
obligations arose from agreements that Bell
Canada entered into in 1999 and
2001 to sell and lease back
telecommunications equipment for a total of
$391&nbsp;million. Some of the proceeds were invested in
interest-bearing loans receivable. The
capital lease obligations, net of loans,
were originally issued for US$39
million and have been swapped into
Canadian dollars.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">(d)&nbsp;Aliant
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All debentures and notes are unsecured. The
bonds ($185&nbsp;million in
2005 and 2004) are
secured by deeds of trust and mortgage, and
by supplemental deeds. These instruments
contain a first fixed and specific
mortgage, a pledge and charge upon all real
and tangible property and equipment, which
includes inventory and all capital
investments except software, and all rights
and licences related to that property of
Aliant Telecom Inc., based on province of
issue. The bonds also provide, based on
province of issue, a floating charge on all
future real and tangible property of Aliant
Telecom Inc. and all revenues and proceeds
derived from that property. Aliant Telecom
Inc. has swapped $100&nbsp;million
of debt from fixed to floating interest
rates.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>


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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 85</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, it has also issued
swaptions related to two outstanding issues
of long-term debt with a total notional
amount of $90&nbsp;million. The
swaptions will permit the counterparty to
enter into interest rate swap transactions.
If exercised, these swaptions will involve
the payment of fixed interest rates in
exchange for the receipt of the three-month
bankers&#146; acceptance floating rate
from 2006 until maturity
in 2013.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">(e)&nbsp;Bell Globemedia
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Assets of CTV and one of its
subsidiaries, CTV Specialty
Television Inc. (CTV
Specialty), are collateral for these
agreements. $95&nbsp;million of the
short-term advances at December
31, 2004 were
repaid to BCE Inc. in January
2005. These were replaced with
long-term debt under existing long-term
facilities. CTV and CTV
Specialty have fixed interest rates
through swap agreements on $95
million of bank debt.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">(f)&nbsp;Unamortized Premium
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This amount represents the unamortized
purchase price allocated to long-term debt
resulting from BCE&#146;s repurchase
of SBC Communications Inc.&#146;s
20% interest in Bell Canada
Holdings Inc.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Restrictions
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Some of the debt agreements:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> require us to meet specific financial ratios
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> impose covenants, maintenance tests and new issue tests
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> restrict the payment of dividends
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> restrict how we can dispose of Bell Canada voting shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We are in compliance with all conditions and restrictions.
</DIV>

<DIV align="left">
<A name="161"></A>
</DIV>

<DIV align="left" style="font-size: 12pt; margin-top: 12pt"><I>NOTE 19: OTHER LONG-TERM LIABILITIES</I>
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">NOTE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Future income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,108</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,633</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accrued benefit liability</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,606</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,519</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred revenue on
long-term contracts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>389</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">446</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred contract payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>199</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">254</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>762</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">982</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total other long-term liabilities</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>5,028</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,834</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="162"></A>
</DIV>

<DIV align="left" style="font-size: 12pt; margin-top: 12pt"><I>NOTE 20: NON-CONTROLLING INTEREST</I>
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-controlling interest in subsidiaries:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Bell Globemedia</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>817</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">775</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Aliant</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>585</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">640</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Bell Nordiq Group Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">(Bell Nordiq)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>150</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">143</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>24</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,576</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,586</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Preferred shares issued by subsidiaries:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Bell Canada</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,100</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Aliant</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>172</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">172</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Telesat</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>50</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,322</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,322</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,898</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,908</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="163"></A>
</DIV>

<DIV align="left" style="font-size: 12pt; margin-top: 12pt"><I>NOTE 21: FINANCIAL INSTRUMENTS</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">DERIVATIVES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We use derivative instruments to
manage our exposure to interest rate risk,
foreign currency risk and changes in the
price of BCE Inc. common shares
that may be issued under our compensation
plans (SCPs and
DSUs). We do not use derivative
instruments for speculative purposes. Since
we do not trade actively in derivative
instruments, we are not exposed to any
significant liquidity risks relating to
them.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following derivative instruments
were outstanding at December
31, 2005:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> cross-currency swaps and forward
contracts that hedge foreign currency risk
on a portion of our long-term debt
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> interest rate swaps that hedge
interest rate risk on a portion of our
long-term debt
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> forward contracts that hedge foreign currency risk
on anticipated transactions
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> forward contracts on BCE Inc. common shares that hedge the fair value exposure related to SCPs and DSUs.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">CREDIT RISK
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We are exposed to credit risk if
counterparties to our derivative
instruments are unable to meet their
obligations. We expect that they will be
able to meet their obligations because we
deal with institutions that have strong
credit ratings and we regularly monitor our
credit risk and credit exposure.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>




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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 86 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There was minimal credit risk
relating to derivative instruments at
December&nbsp;31, 2005.
We are also exposed to credit risk from our
customers, but the concentration of this risk is
minimized because we have a large and
diverse customer base.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">CURRENCY EXPOSURES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We use cross-currency swaps and
forward contracts to hedge debt that is
denominated in foreign currencies. We also
use forward contracts to hedge foreign
currency risk on anticipated transactions.
Derivatives that qualify for hedge
accounting, and the underlying hedged
items, are marked-to-market at current
rates.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The principal amount to be received
under currency contracts was US$600
million at December&nbsp;31,
2005. The principal amount to
be paid under these contracts was
$798&nbsp;million at December
31, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">INTEREST RATE EXPOSURES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We use interest rate swaps to manage
the mix of fixed and floating interest
rates on our debt. We have entered into
interest rate swaps with a notional amount
of $895&nbsp;million, as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> $700&nbsp;million of interest
rate swaps whereby we pay interest at a
rate equal to the three-month bankers&#146;
acceptance floating interest rate plus
0.42%. We receive interest on
these swaps at a rate of 5.0%.
The swaps mature in 2017.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> $100&nbsp;million interest
rate swap whereby we pay interest at a rate
equal to the three-month bankers&#146;
acceptance floating interest rate plus
2.1%. We receive interest on
the swap at a rate of 6.8%. The
swap matures in 2011.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> $75&nbsp;million interest rate
swap whereby we pay interest at a rate of
3.2%. We receive interest on
the swap at a rate equal to the three-month
bankers&#146; acceptance floating rate. The swap
matures in 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> $20&nbsp;million interest rate
swap whereby we pay interest at a rate of
4.7%. We receive interest on
the swap at a rate equal to the three-month
bankers&#146; acceptance floating rate. The swap
matures in 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have also issued swaptions to permit the
counter-party to enter into interest rate
swap transactions for a notional amount of
$90&nbsp;million. If exercised,
these swaptions will involve the payment of
fixed interest rates of 10.5%
and 11.1% in exchange for
the receipt of the three-month bankers&#146;
acceptance floating rate from 2006
until maturity in 2013.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">FAIR VALUE
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Fair value is the amount that willing
parties would accept to exchange a
financial instrument based on the current
market for instruments with the same risk,
principal and remaining maturity. We base
fair values on estimates using present
value and other valuation methods.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These estimates are affected
significantly by assumptions we make about
the amount and timing of estimated future
cash flows and discount rates, which all
reflect varying degrees of risk. Potential
income taxes and other expenses that would
be incurred on disposition of these
financial instruments are not reflected in
the fair values. As a result, the fair
values are not necessarily the net amounts
that would be realized if these instruments
were actually settled.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The carrying value of all financial instruments approximates fair value, except for those noted in
the table below.
</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="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">2004</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">CARRYING</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">FAIR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">CARRYING</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">FAIR</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">VALUE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">VALUE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">VALUE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">VALUE</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investment in Nortel<SUP style="font-size: 85%; vertical-align: text-top">(1)</sup></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>55</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>52</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term debt due within one year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,286</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,304</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,130</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>12,119</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>13,800</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,685</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,623</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Derivative financial instruments, net asset (liability)&nbsp;position:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Forward contracts &#151; BCE Inc. shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(37</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(41</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Currency contracts<SUP style="font-size: 85%; vertical-align: text-top">(2)</sup></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(83</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(120</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(65</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(97</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest rate swaps and swaptions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(8</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(17</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(29</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 6pt; width: 18%; border-top: 0px 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>(1)</I></TD>
    <TD>&nbsp;</TD>
    <TD><I>We have designated 4&nbsp;million of our approximately 15&nbsp;million Nortel
common shares to manage our exposure to outstanding rights to SCPs.</I></TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left"><I>(2)</I></TD>
    <TD>&nbsp;</TD>
    <TD><I>Currency contracts include cross-currency interest rate swaps and foreign currency forward contracts.
Some of the cross-currency interest rate swaps are economic hedges that do not qualify for hedge accounting. We carry these at fair
value and all gains or losses are recorded in the statement of operations.</I></TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 87</I>
</DIV>

<DIV align="left">
<A name="164"></A>
</DIV>

<DIV align="left" style="font-size: 12pt; margin-top: 12pt"><I>NOTE 22: SHARE CAPITAL</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">PREFERRED SHARES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BCE Inc.&#146;s articles of
amalgamation provide for an unlimited
number of First Preferred Shares and Second
Preferred Shares. The terms set out in the
articles authorize BCE Inc.&#146;s
directors to issue the shares in one
or more series and to set the number
of shares and conditions for each series.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below is a summary of the
principal terms of BCE Inc.&#146;s
First Preferred Shares. There were no
Second Preferred Shares issued and
outstanding at December&nbsp;31,
2005. BCE Inc.&#146;s
articles of amalgamation describe the terms
and conditions of these shares in detail.
</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="19%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">STATED</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">NUMBER OF SHARES</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">CAPITAL</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">ANNUAL</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">REDEMP-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">ISSUED</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">AT</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">DIVIDEND</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">CONVERT-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="3">CONVERSION</TD>

    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="3">REDEMPTION</TD>

    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">TION</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">AND OUT-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">DECEMBER 31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">SERIES</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">RATE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">IBLE INTO</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="3">DATE</TD>

    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="3">DATE</TD>

    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">PRICE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">AUTHORIZED</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">STANDING</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="37" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Q</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="right">floating</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">Series R</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">December 1, 2015</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">At any time</TD>
    <TD>&nbsp;</TD>
    <TD align="center">$</TD>
    <TD align="right">25.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">R</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.54%</TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="right">Series Q</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="right">December 1, 2010</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="right">December 1, 2010</TD>
    <TD>&nbsp;</TD>
    <TD align="center">$</TD>
    <TD align="right">25.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>200</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">S</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="right">floating</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">Series T</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">November 1, 2006</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">At any time</TD>
    <TD>&nbsp;</TD>
    <TD align="center">$</TD>
    <TD align="right">25.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>200</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">T</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="right">fixed</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">Series S</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">November 1, 2011</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">November 1, 2011</TD>
    <TD>&nbsp;</TD>
    <TD align="center">$</TD>
    <TD align="right">25.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Y</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="right">floating</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">Series Z</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">December 1, 2007</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">At any time</TD>
    <TD>&nbsp;</TD>
    <TD align="center">$</TD>
    <TD align="right">25.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,147,380</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>29</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Z</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.319%</TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="right">Series Y</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="right">December 1, 2007</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="right">December 1, 2007</TD>
    <TD>&nbsp;</TD>
    <TD align="center">$</TD>
    <TD align="right">25.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,852,620</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>221</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">221</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">AA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.45%</TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="right">Series AB</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="right">September 1, 2007</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="right">September 1, 2007</TD>
    <TD>&nbsp;</TD>
    <TD align="center">$</TD>
    <TD align="right">25.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>510</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">510</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">AB</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="right">floating</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">Series AA</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">September 1, 2012</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">At any time</TD>
    <TD>&nbsp;</TD>
    <TD align="center">$</TD>
    <TD align="right">25.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">AC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.54%</TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="right">Series AD</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="right">March 1, 2008</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="right">March 1, 2008</TD>
    <TD>&nbsp;</TD>
    <TD align="center">$</TD>
    <TD align="right">25.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>510</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">510</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">AD</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="right">floating</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">Series AC</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">March 1, 2013</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">At any time</TD>
    <TD>&nbsp;</TD>
    <TD align="center">$</TD>
    <TD align="right">25.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="37" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,670</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,670</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="37" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Voting Rights
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All of the issued and outstanding preferred
shares at December&nbsp;31,
2005 were non-voting, except
under special circumstances when the
holders are entitled to one vote per share.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Entitlement to Dividends
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Holders of Series&nbsp;R,
Z, AA and AC
shares are entitled to fixed
cumulative quarterly dividends. The
dividend rate on these shares is reset
every five years, as set out in BCE
Inc.&#146;s articles of amalgamation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holders of Series&nbsp;S and
Y shares are entitled to
floating adjustable cumulative monthly
dividends.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If Series&nbsp;Q, AB
and AD shares are issued,
their holders will be entitled to floating
adjustable cumulative monthly dividends.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If Series&nbsp;T shares are
issued, their holders will
be entitled to fixed cumulative
quarterly dividends.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Conversion Features
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All of the issued and outstanding preferred
shares at December&nbsp;31,
2005 are convertible at the
holder&#146;s option into another associated
series of preferred shares on a one-for-one
basis according to the terms set out in
BCE Inc.&#146;s articles of
amalgamation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Redemption Features
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BCE Inc. may redeem Series
R, Z, AA
and AC shares on the
redemption date and every five years after
that date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If Series&nbsp;T shares are
issued, BCE Inc. may redeem
them on the redemption date and every five
years after that date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCE Inc. may redeem Series
S and Y shares at
any time at $25.50 per share
(being a 2% premium to the
issue price). If Series&nbsp;Q,
AB and AD shares
are issued, BCE Inc. may redeem
them at any time at $25.50 per
share.
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 88 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">COMMON SHARES AND CLASS B SHARES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BCE Inc.&#146;s articles of
amalgamation provide for an unlimited
number of voting common shares and
non-voting Class&nbsp;B shares. The
common shares and the Class&nbsp;B
shares rank equally in the payment of
dividends and in the distribution of assets
if BCE Inc. is liquidated, dissolved or wound up, after
payments due to the holders of preferred
shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below provides details about
the outstanding common shares of BCE
Inc. No Class&nbsp;B shares
were outstanding at December
31, 2005 and
2004.
</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="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">2004</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">NUMBER</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">STATED</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">NUMBER</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">STATED</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">OF SHARES</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">CAPITAL</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">OF SHARES</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">CAPITAL</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Outstanding, beginning of year</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>925,935,682</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>16,781</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">923,988,818</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,749</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shares issued under employee stock option plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,383,234</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>25</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,946,864</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Outstanding, end of year</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>927,318,916</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>16,806</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">925,935,682</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,781</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Dividend Reinvestment Plan
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The dividend reinvestment plan allows
eligible common shareholders to use their
dividends to buy additional common shares.
A trustee buys BCE Inc. common
shares for the participants on the open
market, by private purchase or from
BCE Inc. (where the shares are
issued from Treasury). BCE
Inc. chooses the method the trustee
uses to buy the shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A total of 3,039,870
common shares were bought on the open
market under this plan for $91
million in 2005. A total
of 3,198,015 common shares were
bought on the open market under this plan
for $89&nbsp;million in
2004.
</DIV>
<DIV align="left">
<A name="165"></A>
</DIV>

<DIV align="left" style="font-size: 12pt; margin-top: 12pt"><I>NOTE 23: STOCK-BASED COMPENSATION PLANS</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">EMPLOYEE SAVINGS PLANS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ESPs are designed to encourage
employees of BCE Inc. and its
participating subsidiaries to own shares of
BCE Inc. Each year, employees
who participate in the plans can choose to
have up to a certain percentage of their
annual earnings withheld through regular
payroll deductions in order to buy
BCE Inc. common shares. In some
cases, the employer will also contribute up
to a maximum percentage of the employee&#146;s
annual earnings to the plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each participating company decides on
its maximum percentages. For Bell Canada,
employees can contribute up to 12%
of their annual earnings. Bell Canada
contributes up to 2%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The trustee of the
ESP s buys BCE Inc.
common shares for the participants on the
open market, by private purchase or from
BCE Inc. (where the shares are
issued from Treasury). BCE Inc.
chooses the method that the trustee uses to
buy the shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There were 34,544
employees participating in the plans
at December&nbsp;31,
2005. The total number of
common shares bought for employees was
6,222,262 in 2005
and 6,818,079 in
2004. The compensation expense
related to ESP s was $38
million in 2005,
2004 and 2003. At
December&nbsp;31, 2005,
13,513,812 common shares were
reserved for issuance under the
ESPs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">STOCK OPTIONS
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under BCE Inc.&#146;s
long-term incentive programs, BCE
Inc. may grant options to key
employees to buy BCE Inc.
common shares. The subscription price is
usually equal to the market value of the
shares on the last trading day before the
grant comes into effect. At December
31, 2005,
25,255,113 common shares were
authorized for issuance under these
programs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For options granted before January
1, 2004, the right
to exercise options generally vests or
accrues at 25% a year for four
years of continuous employment from the
date of grant, unless a special vesting
period applies. Options become exercisable
when they vest and can generally be
exercised for a period of up to 10
years from the date of grant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For most options granted after January
1, 2004, the right
to exercise options vests after two and
three years of continuous employment from
the date of grant and if a specific company
wide performance
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>


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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 89</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">target is met. Options become exercisable
when they vest and can be exercised for a
period of up to six years from the date of
grant. Subject to achieving this specific
performance target, 50% of the
options will vest after two years and the
remaining 50% after three
years. Special vesting provisions may apply
if:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> there is a change of control of BCE Inc. and the
option holder&#146;s employment ends under
certain circumstances
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the option holder is employed by a designated
subsidiary of BCE Inc., and
BCE Inc.&#146;s ownership interest
in that subsidiary falls below the
percentage set out in the program.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">When the Nortel common shares were
distributed in May&nbsp;2000, each
outstanding BCE Inc. stock
option was cancelled and replaced by two
new stock options. The first option gives
the holder the right to buy one BCE
Inc. common share. The second option
gives the holder the right to buy
approximately 1.57 post-split
common shares of Nortel (Nortel option) at
exercise prices that maintain the holder&#146;s
economic position.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below is a summary of the status of BCE Inc.&#146;s stock option programs.
</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="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">2003</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">WEIGHTED</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">WEIGHTED</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">WEIGHTED</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">AVERAGE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">AVERAGE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">AVERAGE</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">NUMBER</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EXERCISE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">NUMBER</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EXERCISE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">NUMBER</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EXERCISE</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">OF SHARES</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">PRICE ($)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">OF SHARES</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">PRICE ($)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">OF SHARES</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">PRICE ($)</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="25" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Outstanding, January 1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>28,481,679</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>32</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,750,720</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,737,423</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,481,924</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>28</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,911,576</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,008,051</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Exercised</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1,383,234</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>18</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,946,864</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(552,681</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Forfeited</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1,237,634</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>34</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,233,753</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,442,073</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="25" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Outstanding, December 31</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>27,342,735</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>32</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,481,679</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,750,720</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="25" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Exercisable, December 31</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>16,505,709</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>34</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,633,433</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,722,294</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="25" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below shows more about BCE Inc.&#146;s stock option programs at December&nbsp;31, 2005.
</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="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000">STOCK OPTIONS OUTSTANDING</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">STOCK OPTIONS EXERCISABLE</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">WEIGHTED</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">WEIGHTED</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">WEIGHTED</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">AVERAGE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">AVERAGE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">AVERAGE</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">RANGE OF</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">REMAINING</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EXERCISE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EXERCISE</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">EXERCISE PRICES</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">NUMBER</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">LIFE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">PRICE ($)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">NUMBER</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">PRICE ($)</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Below $20</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>749,254</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center"><B>2.36 years</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>15</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>749,254</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>15</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">$20&#151;$29</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>12,852,301</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center"><B>5.67 years</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>29</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,198,525</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>28</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">$30&#151;$39</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7,750,392</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center"><B>5.68 years</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>34</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>6,567,142</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>34</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Over $40</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>5,990,788</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center"><B>4.78 years</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>41</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>5,990,788</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>41</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>27,342,735</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center"><B>5.39 years</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>32</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>16,505,709</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>34</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ASSUMPTIONS USED IN STOCK OPTION PRICING MODEL
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table shows the
assumptions used to determine the
stock-based compensation expense using the
Black-Scholes option pricing model.
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2003</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Compensation expense
($ millions)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>16</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Number of stock
options granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,481,924</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,911,576</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,008,051</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average fair value
per option granted ($)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average assumptions:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Dividend yield</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>4.4</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.6</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Expected volatility</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>19</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">27</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">30</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Risk-free interest rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>3.6</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.1</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Expected life (years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3.5</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 90 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Starting in 2004, most of
the stock options granted contain a
specific performance target that must be
met before the option can be exercised.
This is reflected in the calculation of the
weighted average fair value per option
granted.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">RESTRICTED SHARE UNITS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In 2004, BCE
Inc. granted RSUs to
executives and other key employees. The
value of an RSU is always equal
to the value of one BCE Inc.
common share. Dividends in the form of
additional RSUs are credited to
the participant&#146;s account on each dividend
payment date and are equivalent in value to
the dividend paid on BCE Inc.
common shares. Each executive is granted a
specific number of RSUs for a
given performance period, based on his or
her position and level of contribution. At
the end of each given performance period,
RSUs vest if performance
objectives are met or are forfeited.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vested
RSUs are paid in BCE
Inc. common shares purchased on the
open market, in cash or through a
combination of both, as the holder chooses,
as long as individual share ownership
requirements are met.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below is a summary of the status of RSUs.
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">NUMBER OF RSUS</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Outstanding, January 1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,996,522</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>504,427</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,986,513</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividends credited</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>100,657</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61,086</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Forfeited</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(80,825</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(51,077</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Outstanding, December 31</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,520,781</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,996,522</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For the year ended December
31, 2005, we
recorded a compensation expense for
RSUs of $37&nbsp;million
($25&nbsp;million in
2004).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">SPECIAL COMPENSATION PAYMENTS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Before 2000, when
BCE Inc. granted options to
executives and other key employees, related
rights to SCPs were also often
granted. SCPs are cash payments
representing the amount that the market
value of the shares on the date of exercise
of the related options exceeds the exercise
price of these options.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When the distribution of Nortel common
shares was made in 2000, the
outstanding options were cancelled and
replaced with options to buy BCE
Inc. common shares and options to buy
Nortel common shares. The related
SCPs were adjusted accordingly.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For each right to an SCP
held before the distribution, right
holders now have rights related to both
BCE Inc. and Nortel common
shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The number of SCPs outstanding at December&nbsp;31, 2005 was:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> 490,058 relating to BCE Inc. common shares
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> 2,332,004 relating to Nortel common shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All of the outstanding SCPs
cover the same number of shares as the
options that they relate to. It is the
employer&#146;s responsibility to make the
payments under the SCPs. There
was income related to SCPs of
$3&nbsp;million in 2005,
$9&nbsp;million in 2004,
and $29&nbsp;million in
2003. These amounts included the
recovery of SCP expense as a
result of forfeitures in the amounts of
$3&nbsp;million, $14
million and $50&nbsp;million for the years
2005, 2004 and
2003 respectively.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">DEFERRED SHARE UNITS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Eligible bonuses may be paid in the
form of DSUs when executives or
other key employees elect or are required
to participate in the plan. For
non-management directors, their
compensation is paid in DSUs
until the minimum share ownership
requirement is met or as elected by the
directors thereafter.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The value of a DSU is
always equal to the value of one BCE
Inc. common share. Dividends in the
form of additional DSUs are
credited to the participant&#146;s account on
each dividend payment date and are
equivalent in value to the dividends paid
on BCE Inc. common shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DSUs are paid in BCE
Inc. common shares purchased on the
open market following the cessation of a
participant&#146;s employment or when a director
leaves the board.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 91</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below is a summary of the status of DSUs.
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000">NUMBER OF DSUS</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2003</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Outstanding, January 1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>886,714</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">703,995</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">890,834</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>173,158</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">306,225</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">154,417</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividends credited</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>40,668</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,226</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,472</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(115,892</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(160,732</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(372,728</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Outstanding, December 31</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>984,648</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">886,714</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">703,995</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For the year ended December&nbsp;31,
2005, we recorded a
compensation expense for DSUs
of $4&nbsp;million (expense of
$5&nbsp;million in 2004
and income of $5&nbsp;million
in 2003).
</DIV>

<DIV align="left">
<A name="166"></A>
</DIV>

<DIV align="left" style="font-size: 12pt; margin-top: 12pt"><I>NOTE 24: EMPLOYEE BENEFIT PLANS</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We provide pension, other retirement
and post-employment benefits for almost all
of our employees. These include DB
pension plans, plans that provide
other employee future benefits and DC
pension plans.
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2003</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pension benefits:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">DB plans cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>236</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">85</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">DC plans cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>26</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other future benefits costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>118</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">156</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">157</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net benefit plans cost</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>380</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">256</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">175</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">COMPONENTS OF DEFINED BENEFIT PLANS COST
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below shows the defined benefit plans cost before and after recognizing its
long-term nature. The recognized net benefit plans cost reflects the amount reported in our
statements of operations and is calculated according to our accounting policy.
</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="58%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000">PENSION BENEFITS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000">OTHER BENEFITS</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2003</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="25" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current service cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>221</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">228</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">217</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>35</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest cost on accrued benefit obligation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>876</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">806</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">757</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>110</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">104</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">105</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Actual (return)&nbsp;loss on plan assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1,573</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,074</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,583</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(12</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Past service costs arising during period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(120</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Actuarial loss (gain)&nbsp;on accrued benefit obligation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,803</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">772</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">513</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>499</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">102</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(52</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="25" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Elements of employee future benefit plans cost (credit),
before recognizing its long-term nature</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,330</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">809</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(92</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>512</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">247</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="25" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Excess (deficiency)&nbsp;of actual return
over expected return<SUP style="font-size: 85%; vertical-align: text-top">(1)</sup></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>628</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">648</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferral of amounts arising during period:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Past service costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(3</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(77</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>120</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(14</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Actuarial (loss)&nbsp;gain on accrued benefit obligation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1,803</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(772</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(513</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(499</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(102</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Amortization of previously deferred amounts:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Past service costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>9</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net actuarial losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>97</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Transitional (asset)&nbsp;obligation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(44</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(44</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>26</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Curtailment gain<SUP style="font-size: 85%; vertical-align: text-top">(2)</sup></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(44</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="25" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Adjustments to recognize long-term nature of employee
future benefit plans cost (credit)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1,072</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(729</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">119</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(394</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(91</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="25" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Increase (decrease)&nbsp;in valuation allowance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(24</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(12</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="25" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>DB plans cost, recognized</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>236</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">85</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>118</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">156</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">157</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="25" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 6pt; width: 18%; border-top: 0px 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>(1)</I></TD>
    <TD>&nbsp;</TD>
    <TD><I>The expected return on plan assets for a given year is calculated based on the
market-related value of plan assets at the beginning of that year. The market-related value
of pension plan assets was $12,928&nbsp;million at January&nbsp;1, 2005,
$13,044&nbsp;million at January&nbsp;1, 2004, and $12,542
million at January&nbsp;1, 2003.</I></TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left"><I>(2)</I></TD>
    <TD>&nbsp;</TD>
    <TD><I>2005 includes a curtailment gain associated with the phase-out, over the next three
years, of a discretionary allowance program.</I></TD>
</TR>

</TABLE>



<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>


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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 92 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">COMPONENTS OF ACCRUED BENEFIT ASSET (LIABILITY)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below shows the change in benefit obligations, change in fair value of plan
assets and the funded status of the DB plans.
</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="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">PENSION BENEFITS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">OTHER BENEFITS</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accrued benefit obligation, beginning of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>14,348</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,505</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,772</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,615</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Current service cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>221</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">228</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>35</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest cost on accrued benefit obligation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>876</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">806</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>110</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">104</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Actuarial losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,803</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">772</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>499</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">102</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Benefit payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(897</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(725</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(93</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(81</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Employee contributions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>11</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Special termination costs<SUP style="font-size: 85%; vertical-align: text-top">(1)</sup></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(17</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">660</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(21</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(12</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Plan amendment<SUP style="font-size: 85%; vertical-align: text-top">(2)</sup></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(120</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Transfers from DC pension plans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>221</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Accrued benefit obligation, end of year</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>16,569</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,348</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,181</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,772</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Fair value of plan assets, beginning of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>13,030</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,569</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>137</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Actual return on plan assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,573</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,074</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>12</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Benefit payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(897</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(725</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(93</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(81</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Employer contributions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>215</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">97</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>93</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">81</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Employee contributions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>11</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Transfers from DC pension plans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>221</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(15</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Fair value of plan assets, end of year</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>14,138</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,030</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>149</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">137</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Plan deficit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(2,431</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,318</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(2,032</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,635</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unamortized net actuarial losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,361</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,304</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>491</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unamortized past service costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>121</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">129</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unamortized transitional (asset)&nbsp;obligation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(35</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(35</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>187</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">227</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Valuation allowance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(103</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(127</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Accrued benefit asset (liability), end of year</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>913</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">953</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1,355</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,344</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Accrued benefit asset included in other long-term assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,164</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,128</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accrued benefit liability included in other long-term liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(251</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(175</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1,355</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,344</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 6pt; width: 18%; border-top: 0px 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>(1)</I></TD>
    <TD>&nbsp;</TD>
    <TD><I>Costs in 2004 relate to the employee departure programs announced at Bell
Canada. See Note 4, </I>Restructuring and Other Items<I>, for more information.</I></TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left"><I>(2)</I></TD>
    <TD>&nbsp;</TD>
    <TD><I>2005 includes a curtailment gain associated with the phase-out, over the next
three years, of a discretionary allowance program. Costs in 2004 mainly relate to
DB pension plan amendments at Aliant whereby certain bargaining unit employees and
eligible management employees were awarded past service benefits.</I></TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For DB pension plans with
an accrued benefit obligation that was more
than plan assets:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the accrued
benefit obligation was $16,430
million at December&nbsp;31,
2005, and $14,087
million at December&nbsp;31,
2004
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the fair value of
plan assets was $13,866&nbsp;million
at December&nbsp;31,
2005, and $12,630
million at December&nbsp;31,
2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For DB pension plans with an
accrued benefit obligation that was less
than plan assets:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the
accrued benefit obligation was $139
million at December&nbsp;31,
2005, and $261
million at December 31,
2004
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the fair value of
plan assets was $272&nbsp;million at
December&nbsp;31, 2005,
and $400&nbsp;million at December
31, 2004.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 93</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">SIGNIFICANT ASSUMPTIONS
</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">We used the following key assumptions to measure the accrued benefit obligation and the
net benefit plans cost for the DB pension plans and plans that provide other
employee future benefits. These assumptions are long-term, which is consistent with the
nature of employee benefit plans.</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="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000">PENSION BENEFITS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000">OTHER BENEFITS</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2003</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="25" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>At December&nbsp;31</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Accrued benefit obligation:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Discount rate, end of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>5.2</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.2</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>5.2</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.2</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.5</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Rate of compensation increase, end of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>3.0</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>3.0</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.5</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>For the year ended December&nbsp;31</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Net benefit plans cost:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Discount rate, end of preceding year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>6.2</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>6.2</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.5</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Expected return on plan assets, end of preceding year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>7.5</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>7.5</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.5</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Rate of compensation increase, end of preceding year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>3.5</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>3.5</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.5</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="25" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">We assumed the following trend rates
in health-care costs:</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><B>&#149;</B> an annual
rate of increase of 4.5% in the
cost per person of covered health-care
benefits for 2005 and the
foreseeable future</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><B>&#149;</B> an annual
rate of increase of 10.5% in
the cost of medication for 2005
and a gradual decline to 4.5%
over six years.</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">Assumed trend rates in health-care
costs have a significant effect on the
amounts reported for the health-care plans.
The table below, for example, shows the
effect of a 1% change in the
assumed trend rates in health-care costs.</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">1% INCREASE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">1% DECREASE</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Effect on other benefits &#151;
total service and interest cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(18</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Effect on other benefits &#151;
accrued obligation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">231</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(217</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">PENSION PLAN ASSETS
</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">The investment strategy for the major
benefit plans is to maintain a diversified
portfolio of assets, invested in a prudent
manner to maintain the security of funds
while maximizing returns within our
guidelines. The expected rate of return
assumption is based on our target asset
allocation policy and the expected future
rates of return on these assets. The table
on the next page shows the allocation of our pension
plan assets at December&nbsp;31,
2005 and 2004,
target allocations for 2005 and
the expected long-term rate of return by
asset class.</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>


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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 94 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</I>
</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="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">WEIGHTED</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">WEIGHTED</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="6">PERCENTAGE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">AVERAGE</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">AVERAGE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="6">OF PLAN</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EXPECTED</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">TARGET</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="6">ASSETS AT</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">LONG-TERM</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2" style="border-bottom: 1px solid #000000">ALLOCATION</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="6" style="border-bottom: 1px solid #000000">DECEMBER 31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2" style="border-bottom: 1px solid #000000">RATE OF RETURN</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">ASSET CATEGORY</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="right"><B>45%&#151;65</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>59</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">57</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>9.0</B></TD>
    <TD nowrap><B>%</B></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Debt securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="right"><B>35%&#151;55</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>41</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">43</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>5.5</B></TD>
    <TD nowrap><B>%</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total/average</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>100</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>7.5</B></TD>
    <TD nowrap><B>%</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">Equity securities included
approximately $62&nbsp;million of
BCE Inc. common shares or
0.4% of total plan assets at
December&nbsp;31, 2005,
and approximately $95&nbsp;million
of BCE Inc. common shares or
0.7% of total plan assets at
December&nbsp;31, 2004.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt securities included approximately
$14&nbsp;million of BCE
Inc. and affiliates&#146; debentures or
0.1% of total plan assets at
December&nbsp;31, 2005,
and approximately $8&nbsp;million of
BCE Inc. and affiliates&#146;
debentures or 0.1% of total
plan assets at December&nbsp;31,
2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ESTIMATED FUTURE BENEFIT PAYMENTS
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below shows the estimated
future defined benefit payments for the
next 10&nbsp;years as at December
31, 2005.
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">PENSION</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">OTHER</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">BENEFITS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">BENEFITS</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">907</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">97</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">928</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">103</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">108</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">973</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">114</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">995</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2011&#151;2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,284</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">698</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total estimated future benefit payments</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,037</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,241</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">CASH FLOWS
</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">We are responsible for adequately
funding our DB pension plans.
We make contributions to them based on
various actuarial cost methods that are
permitted by pension regulatory bodies.
Contributions reflect actuarial assumptions
about future investment returns, salary
projections and future service benefits.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We contribute to the DC
pension plans as employees provide
service.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below shows the amounts we
contributed to the DB and
DC pension plans and the
payments made to beneficiaries under other
employee future benefit plans.
</DIV>
<DIV align="center">
<TABLE style="font-size: 9pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000">PENSION BENEFITS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000">OTHER BENEFITS</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2003</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="25" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Aliant</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>172</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>5</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bell Canada</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>27</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>88</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">83</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bell Globemedia</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>20</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">BCE Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="25" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>226</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">112</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>93</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="25" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">Comprised of:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Contributions to DB plans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>215</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">97</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>93</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Contributions to DC plans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>11</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="25" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">We expect to contribute approximately
$470&nbsp;million to the DB
pension plans in 2006,
subject to actuarial valuations being
completed. We expect to pay approximately
$100&nbsp;million to beneficiaries
under other
employee benefit plans in
2006. We expect to contribute
approximately $30&nbsp;million to
the DC pension plans in
2006.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>


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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 95</I>
</DIV>

<DIV align="left">
<A name="167"></A>
</DIV>

<DIV align="left" style="font-size: 12pt; margin-top: 12pt"><I>NOTE 25: COMMITMENTS AND CONTINGENCIES</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CONTRACTUAL OBLIGATIONS
</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">The table below is a summary of our contractual obligations at December&nbsp;31,
2005 that are due in each of the next five years and after 2010.</DIV>

<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="26%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">THERE-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">AFTER</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">TOTAL</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="29" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term debt (excluding capital leases)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,686</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,043</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,624</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,013</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,955</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>12,481</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Notes payable and bank advances</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>87</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Capital leases</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">126</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">110</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">533</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>924</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Operating leases</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">231</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">204</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">181</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">158</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">134</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">679</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,587</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commitments for capital expenditures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">184</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>262</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Purchase obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,413</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,001</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">716</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">287</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">530</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4,152</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other long-term liabilities (including current portion)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">143</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">119</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>450</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="29" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,344</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,172</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,090</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,198</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,417</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,722</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>19,943</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="29" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">Long-term debt and notes payable and
bank advances include $58
million drawn under our
committed credit facilities. They do not
include $455&nbsp;million of letters
of credit. The total amount available under
these committed credit facilities and under
our commercial paper programs, including
the amount currently drawn, is $2.4
billion. Current commercial paper
credit lines expire during August
2008.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The imputed interest to be paid on
capital leases is $649&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rental expense relating to operating
leases was $316&nbsp;million in
2005, $358&nbsp;million
in 2004, and $327
million in 2003.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase obligations consist mainly of
contractual obligations under service
contracts. Our commitments for capital
expenditures include investments to expand
and update our networks, and to meet
customer demand.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other long-term liabilities included
in the table relate to:
</DIV>

<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Bell Canada&#146;s future payments
over the remaining life of its contract
with Amdocs Canadian Managed Services, Inc.
(formerly Certen Inc.) for the development
of Bell Canada&#146;s billing system. The total
amount was $254&nbsp;million at
December&nbsp;31, 2005.</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Bell Globemedia&#146;s remaining
obligations relating to CRTC
benefits owing on previous business
combinations. These and other long-term
liabilities were $85&nbsp;million at
December&nbsp;31, 2005.</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><B>&#149;</B> Telesat&#146;s deferred satellite
performance incentive payments and their
deferred milestone payments. The total
amount was $111&nbsp;million at
December&nbsp;31, 2005.</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">Excluded from the table above is our
proportionate share of CGI&#146;s
operating leases and other contractual
obligations, which are disclosed in Note
8, <I>Discontinued
Operations </I>.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December&nbsp;31,
2005, we had other long-term
liabilities that were not included in the
table, including an accrued employee
benefit liability, future income tax
liabilities, deferred revenue and gains on
assets and various other long-term
liabilities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We did not include the accrued
employee benefit liability and future
income tax liabilities in the table because
we cannot accurately determine the timing
and amount of cash needed for them. This is
because:
</DIV>

<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><B>&#149;</B> future contributions
to the
pension plans depend largely on how
well they are funded. This varies based on
the results of actuarial valuations that
are performed periodically and on the
investment performance of the pension fund
assets.</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><B>&#149;</B> future payments of income taxes
depend on the amount of taxable earnings
and on whether there are tax loss
carryforwards available to reduce income
tax liabilities.</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">We did not include deferred revenue and
gains on assets in the table because they
do not represent future cash payments.</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>


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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 96 </I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</I>
</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">COMMITMENT UNDER THE CRTC
DEFERRAL MECHANISM</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">The total balance of Bell Canada&#146;s
and Aliant&#146;s deferral obligation at
December&nbsp;31, 2005
is estimated to be approximately
$107&nbsp;million. This amount
represents BCE&#146;s estimated
annual commitment under the deferral
account mechanism, calculated in terms of
permanent rate reductions, from January
1, 2006 onwards.
The amount in the account can be cleared by
means of permanent rate reductions or other
initiatives, including capital initiatives
as directed by the CRTC. The
deferral account obligation will change as
amounts are added to the account or the
CRTC approves initiatives that
serve to reduce the deferral account
obligation, and any amounts remaining in
the deferral accounts will bear interest at
the Incumbent Local Exchange Carrier&#146;s
(ILEC)&nbsp;short-term cost of debt
each year until disposition.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">LITIGATION
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Teleglobe Lending Syndicate Lawsuit

</DIV>

<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">On July&nbsp;12, 2002,
some members of the Teleglobe and Teleglobe
Holdings (U.S.) Corporation lending
syndicate filed a lawsuit against BCE
Inc. in the Ontario Superior Court of
Justice. The lawsuit includes several
allegations, including that BCE
Inc. and its management, in effect,
made a legal commitment to repay the
advances the plaintiffs made as members of
the lending syndicate, and that the Court
should disregard
Teleglobe as a corporate entity and hold
BCE Inc. responsible to repay
the advances as Teleglobe&#146;s alter ego.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On November&nbsp;2,
2004, Canadian Imperial Bank of
Commerce and Canadian Imperial Bank of
Commerce, N.Y. Agency withdrew from the
lawsuit and on May&nbsp;3,
2005, BNP Paribas
(Canada) also withdrew from this lawsuit.
The remaining plaintiffs claim damages of
US$1.04&nbsp;billion, plus interest
and costs. This represents approximately
83% of the US$1.25
billion that the lending syndicate
advanced to Teleglobe and Teleglobe
Holdings (U.S.) Corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While we cannot predict the outcome of
any legal proceeding, based on information
currently available, BCE Inc.
believes that it has strong defences, and
it intends to vigorously defend its
position.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Kroll Restructuring Lawsuit

</DIV>

<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">In February&nbsp;2003, a lawsuit was
filed in the Ontario Superior Court of
Justice by Kroll Restructuring Ltd., in its
capacity as interim receiver of Teleglobe,
against five former directors of Teleglobe.
This lawsuit was filed in connection with
Teleglobe&#146;s redemption of its third series
preferred shares in April&nbsp;2001
and the retraction of its fifth
series preferred shares in March
2001.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The plaintiff is seeking a declaration
that such redemption and retraction were
prohibited under the
<I>Canada Business Corporations Act</I>
and that the five former directors
should be held jointly and severally liable
to restore to Teleglobe all amounts paid or
distributed on such redemption and
retraction, being an aggregate of
approximately $661&nbsp;million,
plus interest.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While BCE Inc. is not a
defendant in this lawsuit, Teleglobe was at
the relevant time a subsidiary of BCE
Inc. Pursuant to standard policies
and subject to applicable law, the five
former Teleglobe directors are entitled to
seek indemnification from BCE
Inc. in connection with this lawsuit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While we cannot predict the outcome of
any legal proceeding, based on information
currently available, BCE Inc.
believes that the defendants have strong
defences and that the claims of the
plaintiff will be vigorously defended
against.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Teleglobe Unsecured Creditors Lawsuit
</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">On May&nbsp;26, 2004, a
lawsuit was filed in the United States
Bankruptcy Court for the District of
Delaware. The United States District Court
for the District of Delaware subsequently
withdrew the reference from the Bankruptcy
Court and the matter is now pending in the
District Court for the District of
Delaware. The lawsuit is against BCE
Inc. and 10 former
directors and officers of Teleglobe and
certain of its subsidiaries. The plaintiffs
are comprised of Teleglobe Communications
Corporation, certain of its affiliated
debtors and debtors in possession, and the
Official Committee of Unsecured Creditors
of these debtors. The lawsuit alleges
breach of an alleged funding commitment of
BCE Inc. towards the debtors,
promissory estoppel, misrepresentation by
BCE Inc. and breach and aiding
and abetting breaches of fiduciary duty by
the defendants. The plaintiffs seek an
unspecified amount of damages against the
defendants.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While we cannot predict the outcome of
any legal proceeding, based on information
currently available, BCE Inc.
believes that it and the other defendants
have strong defences, and they intend to
vigorously defend their position.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>


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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 97</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Teleglobe Plan Administrator Lawsuit
</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">On November&nbsp;16,
2005, Kathy Morgan, in her
capacity as Plan Administrator for
Teleglobe, filed a lawsuit in the Ontario
Superior Court of Justice against BCE
Inc. and seven former directors of
Teleglobe. The plaintiff is seeking a
declaration that Teleglobe and its
creditors have been oppressed by the former
directors of Teleglobe and by BCE
Inc. within the meaning of the
<I>Canada Business Corporations
Act</I>. The plaintiff is also seeking a
declaration that the former directors of
Teleglobe breached their fiduciary duty to
Teleglobe and failed to act in accordance
with the standard of care prescribed under
the <I>Canada Business Corporations
Act</I>.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The plaintiff is seeking compensation
for oppression in the amount of $3
billion and damages for breach of
fiduciary duty in the amount of $3
billion, in each case plus interest
and costs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While we cannot predict the outcome of
any legal proceeding, based on information
currently
available, BCE Inc. believes that it
and the other defendants have strong
defences and they intend to vigorously
defend their position.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Other Litigation
</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">We become involved in various other claims
and litigation as a part of our business.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While we cannot predict the final
outcome of claims and litigation that were
pending at December&nbsp;31,
2005, based on information
currently available, management believes
that the resolution of these claims and
litigation will not have a material and
negative effect on our consolidated
financial position or results of
operations.
</DIV>

<DIV align="left">
<A name="168"></A>
</DIV>

<DIV align="left" style="font-size: 12pt; margin-top: 12pt"><I>NOTE 26: GUARANTEES</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As a regular part of our business, we
enter into agreements that provide for
indemnifications and guarantees to
counterparties that may require us to pay
for costs and losses incurred in various
types of transactions. We cannot reasonably
estimate the maximum potential amount we
could be required to pay counterparties.
While some of the agreements specify a
maximum potential exposure, many do not
specify a maximum amount or limited period.
The amount also depends on the outcome of
future events and conditions, which cannot
be predicted. Historically, we have not
made any significant payments under these
indemnifications or guarantees.
</DIV>

<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">The following table represents guarantees that BCE has entered into which have a
fixed maximum potential exposure, and their respective terms.</DIV>

<DIV align="center">
<TABLE style="font-size: 9pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">INDEFI-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010&#043;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">NITE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">TOTAL</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="29" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sale of assets and businesses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,502</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">134</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,651</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sale of services</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">91</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>181</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Purchase and development of assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>22</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>12</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="29" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total guarantees</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">92</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,557</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">156</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,866</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="29" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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


<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 98 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BCE also has guarantees where no maximum potential amount is specified.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">SALE OF ASSETS AND BUSINESSES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As part of transactions involving business dispositions and sales of assets, we may be
required to pay counterparties for costs and losses incurred as a result of breaches of
representations and warranties, loss or damages to property, environmental liabilities, changes in
or in the interpretation of laws and regulations (including tax legislation), valuation
differences, earn-out guarantees if the disposed business does not meet specific targets,
contingent liabilities of a disposed business, or reassessments of previous tax filings of the
corporation that carries on the business.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A total of $15&nbsp;million has been accrued in the consolidated balance sheet relating to
this type of indemnification or guarantee at December&nbsp;31 , 2005 .
Historically, we have not made any significant payments under this type of indemnification or
guarantee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">SALE OF SERVICES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In transactions involving sales of services, we may be required to pay counterparties for
costs and losses incurred as a result of breaches of representations and warranties, or changes in
or in the interpretation of laws and regulations (including tax legislation).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No amount has been accrued in the consolidated balance sheet relating to this type of
indemnification or guarantee at December&nbsp;31 , 2005 . Historically, we have
not made any significant payments under such indemnifications or guarantees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">PURCHASE AND DEVELOPMENT OF ASSETS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As part of transactions involving purchases and development of assets, we may be required to
pay counterparties for costs and losses incurred as a result of breaches of representations and
warranties, loss or damages to property, or changes in or in the interpretation of laws and
regulations (including tax legislation).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No amount has been accrued in the consolidated balance sheet relating to this type of
indemnification or guarantee at December&nbsp;31 , 2005 . Historically, we have
not made any significant payments under such indemnifications or guarantees.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">OTHER TRANSACTIONS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As part of other transactions, such as securitization agreements and operating leases, we may
be required to pay counterparties for costs and losses incurred as a result of breaches of
representations and warranties, loss or damages to property, or changes in or in the interpretation
of laws and regulations (including tax legislation).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No amount has been accrued in the consolidated balance sheet relating to this type of
indemnification or guarantee at December&nbsp;31 , 2005 . Historically, we have
not made any significant payments under such indemnifications or guarantees.
</DIV>

<DIV align="left">
<A name="169"></A>
</DIV>

<DIV align="left" style="font-size: 12pt; margin-top: 6pt"><I>NOTE 27: SUPPLEMENTAL DISCLOSURE FOR
STATEMENTS OF CASH FLOWS</I>
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2003</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest paid</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>960</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">981</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,105</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income taxes paid (net of refunds)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>249</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">176</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(47</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash provided by (used in)
non-cash operating assets
and liabilities is as follows:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Accounts receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>371</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(350</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">217</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Other current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(41</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(119</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(25</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Other long-term assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(94</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(22</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Accounts payable and
accrued liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(527</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">601</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">559</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Other long-term liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(138</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(105</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>39</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(35</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(7</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(390</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">656</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left">
<A name="170"></A>
</DIV>

<DIV align="left" style="font-size: 12pt; margin-top: 12pt"><I>NOTE 28: RECONCILIATION OF CANADIAN
GAAP TO UNITED STATES GAAP</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">We have prepared these consolidated financial statements according to Canadian
GAAP . The following tables are a reconciliation of significant differences relating to
the statement of operations and total shareholders&#146; equity reported according to Canadian
GAAP and United States GAAP .
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>


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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 99</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">RECONCILIATION OF NET EARNINGS
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2003</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Canadian GAAP &#151; Earnings from continuing operations</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,915</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,447</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,820</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjustments:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Deferred costs
 <SUP style="font-size: 85%; vertical-align: text-top"><B>(a)</B></SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Employee future benefit costs
<SUP style="font-size: 85%; vertical-align: text-top"><B>(b)</B></SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(65</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(75</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(132</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Equity income
 <SUP style="font-size: 85%; vertical-align: text-top"><B>(c) (e)</B></SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>46</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Derivative instruments
<SUP style="font-size: 85%; vertical-align: text-top"><B>(d)</B></SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(2</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(12</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>5</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>United States GAAP &#151; Earnings from continuing operations</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,899</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,431</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,717</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Discontinued operations &#151; United States GAAP
<SUP style="font-size: 85%; vertical-align: text-top"><B>(e) (k)</B></SUP>
 </DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">107</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(56</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Cumulative effect of change in accounting policy
 <SUP style="font-size: 85%; vertical-align: text-top"><B>(f)</B></SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(25</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>United
States GAAP  &#151; Net earnings before extraordinary gain</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,899</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,538</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,636</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Extraordinary gain</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>United
States GAAP  &#151; Net earnings</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,899</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,607</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,636</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Dividends on preferred shares
 <SUP style="font-size: 85%; vertical-align: text-top"><B>(d)</B></SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(85</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(85</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(70</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Premium on redemption of preferred shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(7</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>United
States GAAP  &#151; Net earnings applicable to common shares</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,814</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,522</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,559</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other comprehensive earnings items:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Change in
currency translation adjustment</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(17</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(56</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Change in unrealized gain
(loss)&nbsp;on investments and derivative instruments <SUP style="font-size: 85%; vertical-align: text-top"><B>(d) (g)</B></SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>131</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(12</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Additional minimum liability for pension obligations
 <SUP style="font-size: 85%; vertical-align: text-top"><B>(b)</B></SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1,112</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(72</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(40</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Comprehensive earnings</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>816</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,428</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,480</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net earnings per common share &#151; basic</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Continuing operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1.96</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.46</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.78</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Discontinued operations and change in accounting policy</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.09</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Extraordinary gain</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.07</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Net earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1.96</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.69</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net earnings per common share &#151; diluted</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Continuing operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1.95</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.78</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Discontinued operations and change in accounting policy</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.09</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Extraordinary gain</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.07</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Net earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1.95</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.69</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Dividends per common share</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1.32</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average number of common shares outstanding (millions)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>926.8</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">924.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">920.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">STATEMENTS OF ACCUMULATED OTHER
COMPREHENSIVE LOSS
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2003</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Currency translation adjustment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(73</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(56</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(46</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unrealized
gain on investments and derivative
instruments<SUP style="font-size: 85%; vertical-align: text-top"><B>(d) (g)</B></SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>135</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Additional minimum liability
for pension obligations
<SUP style="font-size: 85%; vertical-align: text-top"><B>(b)</B></SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1,305</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(193</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(121</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Accumulated other
comprehensive loss</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1,243</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(245</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(151</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">RECONCILIATION OF TOTAL
SHAREHOLDERS&#146; EQUITY
<SUP style="font-size: 85%; vertical-align: text-top"><B>(k)</B></SUP>
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2003</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Canadian GAAP</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>14,721</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,024</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,565</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjustments:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Deferred costs
 <SUP style="font-size: 85%; vertical-align: text-top"><B>(a)</B></SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(37</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(37</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(44</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Employee future benefits
<SUP style="font-size: 85%; vertical-align: text-top"><B>(b)</B></SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1,460</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(283</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(136</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Goodwill
 <SUP style="font-size: 85%; vertical-align: text-top"><B>(h)</B></SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>63</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>21</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Discontinued operations
<SUP style="font-size: 85%; vertical-align: text-top"><B>(e)</B></SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(81</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Unrealized gain on investments and derivative
instruments <SUP style="font-size: 85%; vertical-align: text-top"><B>(d) (g)</B></SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>135</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>United States GAAP</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>13,443</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,804</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,430</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>


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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>p. 100</I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">DESCRIPTION OF UNITED STATES
GAAP ADJUSTMENTS
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(a)&nbsp;Deferred Costs
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under Canadian GAAP , certain expenses, such as development and pre-operating costs, can
be deferred and amortized if they meet certain criteria. Under United States GAAP ,
these costs are expensed as incurred.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">(b)&nbsp;Employee Future Benefits
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The accounting for future benefits for employees under Canadian GAAP and United States
GAAP is essentially the same, except for the recognition of certain unrealized gains
and losses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Canadian GAAP requires companies to recognize a pension valuation allowance for any
excess of the accrued benefit asset over the expected future benefit. Changes in the pension
valuation allowance are recognized in the consolidated statement of operations. United States
GAAP does not specifically address pension valuation allowances. United States
regulators have interpreted this to be a difference between Canadian and United States
GAAP .
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under United States GAAP , an additional minimum liability is recorded for the excess of
the unfunded accumulated benefit obligation over the recorded pension benefit liability. An
offsetting intangible asset equal to the unrecognized prior service costs is recorded. Any
difference is recorded as a reduction in accumulated other comprehensive income. The accumulated
benefit obligation at December&nbsp;31 , 2005 was $15.5&nbsp;billion.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">(c)&nbsp;Equity Income
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under Canadian GAAP , we account for our joint venture investments using the
proportionate consolidation method. Under United States GAAP , we account for our joint
venture investments using the equity method. There is no impact on net earnings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2005 , we reclassified the results of our interest in CGI as a
discontinued operation under Canadian GAAP . Under United States GAAP , we
must continue to account for our investment in CGI using the equity method until its
disposal. An adjustment is made to reclassify the results of CGI from discontinued
operations to continuing operations as equity income.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(d)&nbsp;Accounting for
Derivative Instruments and Hedging
Activities
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under United States GAAP , all derivatives must be recorded on the balance sheet at fair
value. Changes in the fair value of derivatives designated as fair value hedges are recorded in
income and are generally offset by changes in the fair value of the hedged items attributable to
the hedged risk. With respect to derivatives designated as cash flow hedges, the effective portion
of the changes in fair value is recorded as a separate component of comprehensive earnings and is
reclassified to net earnings in the period or periods during which the hedged items are recognized
in net earnings. The ineffective portion of the changes in fair value of a hedging item is always
recognized in net earnings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the third quarter of 2003 , we elected to settle the dividend rate swaps used to
hedge $510&nbsp;million of BCE Inc. Series&nbsp;AA preferred shares and
$510&nbsp;million of BCE Inc. Series&nbsp;AC preferred shares. These
dividend rate swaps in effect converted the fixed-rate dividends on these preferred shares to
floating-rate dividends. They were to mature in 2007 . As a result of the early
settlement, we received total proceeds of $83&nbsp;million in cash. Since the settlement,
all of our derivative contracts qualify for hedge accounting. Under Canadian GAAP , the
proceeds are being deferred and amortized against the dividends on these preferred shares over the
remaining original terms of the swaps. Under United States GAAP , these dividend rate
swaps did not qualify for hedge accounting and were recorded on the balance sheet at fair value. As
a result, the amortization of the deferred gain under Canadian GAAP is reversed for
purposes of United States GAAP .
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">(e)&nbsp;Discontinued Operations
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Differences between Canadian GAAP and United States GAAP will cause the
historical carrying values of the net assets of discontinued operations to be different.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>p. 101</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">(f)&nbsp;Impact of Adopting Recent Changes to Accounting Standards
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective July 1, 2003, we adopted FASB Interpretation
( FIN ) No.&nbsp;46 , <I>Consolidation of Variable Interest
Entities</I>, on a prospective basis. This interpretation clarifies how to apply ARB
No. 51, <I>Consolidated Financial Statements</I>, to variable interest
entities when equity investors are not considered to have a controlling financial interest or they
have not invested enough equity to allow the entity to finance its activities without additional
subordinated financial support from other parties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We determined a transitional loss of $25&nbsp;million net of tax in the third quarter of
2003. We recorded it as a cumulative effect of a change in accounting policy as of July
1, 2003, as required by the transitional provisions of FIN No.
46. Under Canadian GAAP, the transitional loss is recorded as an adjustment
to retained earnings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">(g)&nbsp;Change in Unrealized Gain (Loss) on Investments
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our portfolio investments are recorded at cost under Canadian GAAP. They would be
classified as available-for-sale under United States GAAP
and would be carried at fair value, with any unrealized gains or losses included in other
comprehensive earnings, net of tax.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">(h)&nbsp;Goodwill
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under Canadian GAAP and United States GAAP, goodwill created on business
acquisitions and the purchase of non-controlling interests of subsidiaries is calculated in a
similar manner. Differences between Canadian GAAP and United States GAAP,
however, may cause the underlying carrying value of the net assets acquired or the fair value of
the consideration given to be different. This will cause the resulting goodwill to be different.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">(i)&nbsp;Accounting for Stock-Based Compensation
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We adopted the fair value-based method of accounting on a prospective basis, effective January
1, 2002. Under Statement of Financial Accounting Standards
(SFAS) No. 123, we are required to make pro forma
disclosures of net earnings, and basic and
diluted earnings per share, assuming that
the fair value-based method of accounting
had been applied from the date that
SFAS No. 123 was
adopted.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below shows compensation expense for stock options and pro forma net earnings using the
Black-Scholes option pricing model.
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2003</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings as reported</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,899</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,607</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,636</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Compensation cost included
in net earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>22</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total compensation cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(23</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(38</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(51</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pro forma net earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,898</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,598</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,614</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pro forma net earnings
per common share (basic)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1.96</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.67</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pro forma net earnings
per common share (diluted)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1.95</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.67</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">(j)&nbsp;Presentation and Disclosure of Guarantees
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under Canadian GAAP, guarantees do not include indemnifications against intellectual
property right infringement, whereas under United States GAAP they are included. At
December&nbsp;31, 2005, such indem-nifications amounted to $1.3
billion, of which $32&nbsp;million expires in 2006, $100
million in 2007, $26&nbsp;million in 2008, $26
million in 2009, $173&nbsp;million after 2009 and $914
million with an indefinite term. We also have guarantees where no maximum potential amount is
specified.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">(k)&nbsp;Comparative Periods
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have reclassified some of the figures for the comparative periods to make them consistent with
the presentation for the current period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We performed an extensive review of the historical reconciling balances between Canadian GAAP
and United States GAAP, which resulted in adjustments to prior periods mainly
related to the elimination of differences arising from changes in accounting policies and large
transactions. As a result, we increased United States GAAP net earnings by $23
million in 2004 and decreased United States GAAP shareholders&#146; equity
by $67&nbsp;million in 2004 and $90&nbsp;million in 2003.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

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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 align="left" style="font-size: 10pt; margin-top: 6pt"><I>BOARD OF DIRECTORS<BR>
As at March&nbsp;1, 2006</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Richard J. Currie, O.C.<BR>
<I>Toronto,Ontario<BR>
 Chair of the Board,<BR>
BCE Inc.
and Bell Canada<BR>
Director since May&nbsp;1995</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Andr&#233; B&#233;rard, O.C.<BR>
<I>Montr&#233;al, Qu&#233;bec<BR>
Corporate Director<BR>
Director since January&nbsp;2003</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ronald A. Brenneman<BR>
<I>Calgary, Alberta<BR>
President and Chief Executive
Officer and a director,<BR>
Petro-Canada<BR>
Director since November&nbsp;2003</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Anthony S. Fell, O.C.<BR>
<I>Toronto, Ontario<BR>
Chairman of the Board,<BR>
RBC Dominion Securities Limited<BR>
Director since January&nbsp;2002</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Donna Soble Kaufman<BR>
<I>Toronto, Ontario<BR>
Corporate Director and Lawyer<BR>
Director since June&nbsp;1998</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Brian M. Levitt<BR>
<I>Montr&#233;al, Qu&#233;bec<BR>
Partner and Co-Chair,<BR>
Osler, Hoskin &#038; Harcourt LLP<BR>
Director since May&nbsp;1998</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The
Honourable<BR> Edward
C. Lumley, P.C.<BR>
<I>South Lancaster, Ontario<BR>
Vice-Chairman,<BR>
BMO Nesbitt Burns Inc.<BR>
Director since January&nbsp;2003</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Judith Maxwell, C.M.<BR>
<I>Ottawa, Ontario<BR>
Research Fellow, Canadian Policy,<BR>
Research Networks Inc.<BR>
Director since January&nbsp;2000</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">John H. McArthur<BR>
<I>Wayland, Massachusetts<BR>
Dean Emeritus, Harvard University,<BR>
Graduate School of Business Administration<BR>
Director since May&nbsp;1995</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Thomas C. O&#146;Neill, F.C.A.<BR>
<I>Don Mills, Ontario<BR>
Corporate Director and<BR>
Chartered Accountant<BR>
Director since January&nbsp;2003</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">James A. Pattison, O.C., O.B.C.<BR>
<I>Vancouver, British Columbia<BR>
Chairman and Chief Executive Officer,<BR>
The Jim Pattison Group<BR>
Director since February&nbsp;2005</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Robert C. Pozen<BR>
<I>Boston, Massachusetts<BR>
Chairman of the Board,<BR>
MFS Investment Management<BR>
Director since February&nbsp;2002</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Michael J. Sabia<BR>
<I>Montr&#233;al, Qu&#233;bec<BR>
President and Chief Executive<BR>
Officer and a director, BCE Inc.,<BR>
and Chief Executive Officer and<BR>
a director, Bell Canada<BR>
Director since October&nbsp;2002</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Paul M. Tellier, P.C., C.C., Q.C.<BR>
<I>Montr&#233;al, Qu&#233;bec<BR>
Corporate Director<BR>
Director since April&nbsp;1999</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Victor L. Young, O.C.
<I>St. John&#146;s, Newfoundland and
Labrador<BR>
 Corporate
Director<BR>
Director since May&nbsp;1995</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>EXECUTIVES</I><SUP style="font-size: 85%; vertical-align: text-top"><I>*</I></SUP> <BR>
<I>As at March&nbsp;1, 2006</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Michael J. Sabia<BR>
<I>President and Chief Executive Officer</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">George A. Cope<BR>
<I>President and Chief<BR>
Operating Officer,<BR>
Bell Canada</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Stephen G. Wetmore<BR>
<I>Group President &#151;  Corporate Performance and<BR>
National Markets, Bell Canada</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Laurier (Larry) J. Boisvert<BR>
<I>President and Chief Executive Officer,<BR>
Telesat Canada</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Michael T. Boychuk<BR>
<I>Senior Vice-President and Treasurer</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mark R. Bruneau<BR>
<I>Executive Vice-President and<BR>
Chief Strategy Officer</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Isabelle Courville<BR>
<I>President &#151; Enterprise, Bell Canada</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Kevin W. Crull<BR>
<I>President &#151;  Residential Services,<BR>
Bell Canada</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">William J. Fox<BR>
<I>Executive Vice-President &#151;<BR>
Communications and<BR>
Corporate Development</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Leo Houle<BR>
<I>Chief Talent Officer</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Lawson A.W. Hunter<BR>
<I>Executive Vice-President and<BR>
Chief Corporate Officer</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Robert Odendaal<BR>
<I>President &#151; Bell Mobility and<BR>
Bell Distribution Inc.,<BR>
Bell Canada</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Patricia A. Olah<BR>
<I>Corporate Secretary</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Patrick
Pichette<BR>

<I>President &#151; Operations, Bell Canada</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Eugene Roman<BR>
<I>Group President &#151;
Systems and Technology,<BR>
Bell Canada</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Karen H. Sheriff<BR>
<I>President &#151; Small and Medium Business,<BR>
Bell Canada</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Martine Turcotte<BR>
<I>Chief Legal Officer</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Siim A. Vanaselja<BR>
<I>Chief Financial Officer</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>COMMITTEES OF THE BOARD Members of Committees of the Board</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">AUDIT COMMITTEE<BR>
T.C. O&#146;Neill <I>(Chair)</I>, A. B&#233;rard, J. Maxwell, R.C. Pozen,<BR>
V. L. Young

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>The audit committee assists the board in the oversight of:</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the integrity of
BCE &#145;s financial
statements and related
information
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> BCE&#146;s compliance
with applicable legal and
regulatory requirements
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the independence,
qualifications and appointment of the
external auditor
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the
performance of the internal and external
auditors
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> management&#146;s
responsibility for reporting on internal
controls and risk management.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">PENSION FUND COMMITTEE
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">R.C. Pozen <I>(Chair)</I>, B.M. Levitt, J.A. Pattison, P.M. Tellier
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>The PFC assists the board in the oversight of:</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the administration, funding
and investment of our pension plans and
fund
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> the unitized pooled
fund sponsored by BCE for the
collective investment of the fund in
which certain of BCE&#146;s
subsidiaries&#146; pension funds invest.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">CORPORATE GOVERNANCE COMMITTEE
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">D. Soble Kaufman <I>(Chair)</I>, A.
B&#233;rard, A.S. Fell, The
Honourable E.C. Lumley, J.H.
McArthur
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>The CGC assists the board in:</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> developing and
implementing our corporate
governance guidelines
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> identifying individuals qualified to become directors
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> determining the composition
of the board and its committees
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B>
determining the directors&#146;
remuneration for board and committee
service
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> developing and
overseeing a process to assess the board
chair, the board committees, chairs of
committees and individual directors
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> overseeing our policies
concerning business conduct, ethics,
public disclosure of material information
and other matters.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">MANAGEMENT RESOURCES AND COMPENSATION COMMITTEE
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">R.J. Currie <I>(Chair)</I>, R.A.
Brenneman, A.S. Fell, J.H.
McArthur, V. L. Young
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>The MRCC assists the board in the oversight of the:</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> compensation, nomination,
evaluation and succession of officers
and other management personnel
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&#149;</B> BCE &#145;s health and safety policies and practices.
</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>*</I></TD>
    <TD>&nbsp;</TD>
    <TD><I>For a complete
list of BCE
Inc.&#146;s and Bell
Canada&#146;s officers,
please see BCE
Inc.&#146;s and Bell
Canada&#146;s respective
Annual Information
Forms for the year
ended December
31,
2005 .</I></TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BELL CANADA ENTERPRISES <I>2005 ANNUAL REPORT</I>
</DIV>



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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2006 SHAREHOLDER MEETING
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The shareholder meeting will
take place at 9:30 a.m.
(Eastern time), Wednesday, June
7, 2006, at Le
Centre Sheraton Montr&#233;al, 1201
Ren&#233;-L&#233;vesque Blvd. West,
Montr&#233;al, Qu&#233;bec, in the ballroom.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The meeting will also be
webcast live on our website,
<I>www.bce.ca</I>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We offer various ways to vote
your shares. For more details,
consult BCE&#146;s proxy
circular or visit our website.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">2006 QUARTERLY EARNINGS RELEASE DATES
</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="48%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">First quarter
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">May&nbsp;3, 2006</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Second quarter
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">August&nbsp;2, 2006</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Third quarter
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">November&nbsp;1, 2006</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Fourth quarter
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">February&nbsp;7, 2007</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Quarterly and annual reports as well
as other corporate documents can be
found on our website. If you wish
to be notified electronically when
documents are posted, register
online at <I>www.bce.ca </I>for
our service &#145;News Alerts&#146;. Corporate
documents can also be requested from
the Investor Relations group.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">SHARE FACTS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Symbol</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BCE
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Listings</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">TSX, NYSE, and
the Zurich (SWX) stock
exchange
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">You will find a summary of the
differences between our governance
practices and the NYSE
corporate governance rules in
the governance section of
BCE&#146;s website at
<I>www.bce.ca</I>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Common Shares Outstanding</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">927,318,916 as at December&nbsp;31, 2005
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Stock Splits</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Three-for-one on April
26, 1979
and two-for-one on May
15, 1997
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Quarterly
Dividend</I><SUP style="font-size: 85%; vertical-align: text-top"><I>*</I></SUP>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">$0.33 per common
share
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>2006 Dividend Schedule</I><SUP style="font-size: 85%; vertical-align: text-top"><I>*</I></sup>
</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="53%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><I>Record Date</I>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top"><I>Payment Date</I></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">March&nbsp;15, 2006
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">April&nbsp;15, 2006</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">June&nbsp;15, 2006
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">July&nbsp;15, 2006</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">September&nbsp;15, 2006
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">October&nbsp;15, 2006</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">December&nbsp;15, 2006
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">January&nbsp;15, 2007</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 colspan="3"><SUP style="font-size: 85%; vertical-align: text-top"><I>* </I></SUP><I>Subject to approval by the Board of Directors</I></TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt">TAX INFORMATION
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dividends and
Capital Gains on Your
BCE Shares
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BCE common shareholders
are required to pay tax on dividends
as well as any capital gains they
realize when they sell their shares
or are deemed to have sold them. If
you received Nortel Networks common
shares in May&nbsp;2000, you
should contact the Investor
Relations group to learn more on the
tax implications of the
BCE /Nortel Plan of
Arrangement or visit
<I>www.bce.ca</I>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Foreign Investors
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dividends on BCE shares
paid or credited to nonresidents of
Canada are subject to a 25%
withholding tax unless reduced
by treaty. Under current tax
treaties, U.S. and U.K. residents
are subject to a 15%
withholding tax.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">U.S. Investors
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BCE is required to solicit
taxpayer identification numbers (TIN) and
Internal Revenue Service
(IRS) Form W-9
certifications of residency from
certain U.S. investors. Where these
have not been received, BCE
may be required to deduct the
IRS&#146; specified backup
withholding tax.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For additional information,
please contact BCE
Investor Relations or the
transfer agent, Computershare Trust
Company of Canada.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Normal Course Issuer Bid
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On February 1,
2006, BCE
received acceptance from the
Toronto Stock Exchange
(TSX) of its
<I>Notice of Intention to Make a
Normal Course Issuer Bid</I>. The
filing of this notice allows
BCE to purchase, from
February 3, 2006
until February 2,
2007, up to
46,000,000 of its common
shares, representing approximately
5% of BCE&#146;s
927,321,825 common shares
outstanding as of the close of
market on January&nbsp;16,
2006. As a result of
transactions that have recently been
completed, BCE has funds
available for which the purchase of
common shares represents an
appropriate use of corporate funds.
Purchases under the normal course
issuer bid will be made at the
discretion of BCEs&#146;
management on the open market
through the facilities of the
TSX and/or the New York
Stock Exchange (NYSE). A
copy of the <I>Notice of
Intention </I>is available on
SEDAR at
<I>www.sedar.com</I>. You can
also obtain a copy on request
without charge from BCE&#146;s
Investor Relations group.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">SHAREHOLDER SERVICES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dividend
Reinvestment and Stock
Purchase Plan
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This plan provides a convenient
method for eligible holders of
BCE common shares to
reinvest their dividends and make
optional cash contributions to
purchase additional common shares
without brokerage costs.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Dividend Direct Deposit Service
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Avoid postal delays and trips to the
bank by joining the dividend direct
deposit service.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">E-Delivery Service
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Enrol in our e-delivery service to
receive the proxy material, the
annual report and/or quarterly
documents by e-mail. By doing so,
you will receive your documents
faster and
in an environmentally friendly
manner while helping your company
reduce printing and postage costs.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Duplicate Mailings
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Help us control costs and eliminate
duplicate mailings by consolidating
your accounts.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For more details on any of
these services, registered
shareholders (holders of share
certificates) must contact the
transfer agent. Non-registered
shareholders must contact their
brokers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">CONTACT INFORMATION
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Transfer Agent and Registrar
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For information on shareholder
services or any other inquiries
regarding your account (including
stock transfer, address change, lost
certificates and tax forms),
contact:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Computershare Trust Company of Canada
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">9th
Floor, 100
University
Avenue Toronto,
Ontario M5J
2Y1
</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="12%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="83%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><I>e-mail</I>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">bce@computershare.com</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><I>tel</I>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(514)&nbsp;982-7555 or 1 800 561-0934</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>(toll free in Canada and the U.S.)</I></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><I>fax</I>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(416)&nbsp;263-9394 or 1 888 453-0330</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>(toll free in Canada and the U.S.)</I></TD>
</TR>
<TR>    <TD>&nbsp;</TD></TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>or visit their website at www.computershare.com</I></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">BCE Investor Relations
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1000 de La
Gaucheti&#232;re Street West,
Suite&nbsp;3700,<BR> Montr&#233;al
(Qu&#233;bec) H3B 4Y7
</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="16%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="79%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><I>e-mail</I>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">investor.relations@bce.ca</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><I>tel</I>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1 800 339-6353</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><I>fax</I>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(514)&nbsp;786-3970</TD>
</TR>
<TR>    <TD>&nbsp;</TD></TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>or visit the Investors section on our
website at www.bce.ca</I></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 100%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Trademarks: The following is a list of all our trademarks referred to and used as such in this
annual report. Aliant is a trademark of Aliant Inc. BCE is a trademark of BCE
Inc. The Rings and Head Design, 10-4 &#038; Design, Bell Canada Enterprises corporate
logo, Bell, Bell Canada, Bell Globemedia, Bell Making It Simple, Bell Mobility, Bell Nordiq, Bell
West, Bell World, Emily, GoTrax, Group Telecom, Kidsmania, Seek &#038; Find, Sympatico, VDN &#038;
Design are trademarks of Bell Canada. ExpressVu is a trademark of Bell ExpressVu Limited
Partnership. </I>The Globe and Mail <I>is a trademark of Bell Globemedia Publishing Inc. Mobile Browser is
a trademark of Bell Mobility Inc. CTV is a trademark of CTV Inc. Expertech is a
trademark of Expertech Network Installation Inc. Northwestel is a trademark of Northwestel Inc.
Infostream is a trademark of Infostream Technologies Inc. Solo and Solo Mobile are trademarks of
Solo Branding Inc. T&#233;l&#233;bec is a trademark of Telebec Limited Partnership. Anik, Nimiq and Telesat
are trademarks of Telesat Canada. TSN and RDS are trademarks of The Sports
Network Inc. Any other trademarks, or corporate, trade or domain names used in this report are the
property of their owners. We believe that our trademarks and domain names are very important to our
success. Our exclusive trademark rights are perpetual provided that their registrations are timely
renewed and that the trademarks are used in commerce by us or our licensees. We take appropriate
measures to protect, renew and defend our trademarks. We also spend considerable time and resources
overseeing, registering, renewing, licensing and protecting our trademarks and domain names and
prosecuting those who infringe on them. We take great care not to infringe on the intellectual
property and trademarks of others.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Cette
publication est disponible en fran&#231;ais. BCE&#146;s Annual Report is printed with
vegetable-based ink and is recyclable.</I> <I>Printed in Canada</I>
</DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Typesetting: Inc. Moveable</I>
</DIV>


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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="m30365m3036538.gif" alt="(BELL&nbsp;CANADA&nbsp;ENTERPRISES)">
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>BCE&#146;s website has extensive information about
the company&#146;s governance practices, community investment,
and corporate responsibility.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Building The New Bell: 2006 Business Update <I>is
an in-depth presentation of our strategy and is available
at www.bce.ca/businessupdate.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BCE I nc. 1000 de La Gaucheti&#232;re Street West, Suite&nbsp;3700, Montr&#233;al
(Qu&#233;bec) <FONT style="font-variant: SMALL-CAPS">h3b 4y7</FONT> <I>www.bce.ca</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Communications
<I>e-mail </I>bcecomms@bce.ca <I>tel </I>1 888 932-6666 <I>fax </I>(514)&nbsp;870-4385
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Investor
Relations <I>e-mail </I>investor.relations@bce.ca <I>tel </I>1 800 339-6353
<I>fax </I>(514)&nbsp;786-3970
</DIV>



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

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>m30365exv99w2.htm
<DESCRIPTION>CONSENT OF INDEPENDENT REGISTERED CHARTERED ACCOUNTANTS
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;99.2</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CONSENT OF INDEPENDENT REGISTERED CHARTERED ACCOUNTANTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We consent to the use in this annual report of BCE Inc. on Form 40-F of our comments by auditors
for U.S. readers on Canada-U.S. reporting differences and auditors&#146; report both dated January&nbsp;31,
2006 on the consolidated balance sheets of BCE Inc. as at December&nbsp;31, 2005 and 2004, and the
consolidated statements of operations, deficit and cash flows for each of the years in the
three-year period ended December&nbsp;31, 2005 which appear in this annual report of BCE Inc. on Form
40-F for the year ended December&nbsp;31, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We also consent to the incorporation by reference in Registration Statements No.&nbsp;333-12130 on Form
F-3 and No.&nbsp;333-12780, 333-12802 and 333-12804 on Form S-8 of BCE Inc. of our comments by auditors
for U.S. readers on Canada-U.S. reporting differences and auditors&#146; report both dated January&nbsp;31,
2006 appearing in the annual report on Form 40-F of BCE Inc. for the year ended December&nbsp;31, 2005.
</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 valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left"> &nbsp;&nbsp; (signed) Deloitte &#038; Touche LLP
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;&nbsp;&nbsp;Deloitte &#038; Touche LLP     &nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Montreal, Canada<BR>
March&nbsp;10, 2006
</DIV>


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

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.3
<SEQUENCE>4
<FILENAME>m30365exv99w3.htm
<DESCRIPTION>COMMENTS BY AUDITORS FOR U.S. READERS
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w3</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;99.3</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>COMMENTS BY AUDITORS FOR U.S. READERS<BR>
ON CANADA-U.S. REPORTING DIFFERENCES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the United States, reporting standards for auditors require the addition of an explanatory
paragraph (following the opinion paragraph) when there are changes in accounting principles that
have a material effect on the comparability of the financial statements, such as the changes
described in Note 1 to BCE Inc.&#146;s consolidated financial statements or when there is a retroactive
restatement such as described in Note 1. Our report to the shareholders dated January&nbsp;31, 2006 is
expressed in accordance with Canadian reporting standards, which do not require a reference to such
changes in accounting principles in the auditors&#146; report when the changes are properly accounted
for and adequately disclosed in the financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BCE Inc. is not required to have, nor were we engaged to perform, an audit of its internal control
over financial reporting. Our audit included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of BCE Inc.&#146;s internal control
over financial reporting. Accordingly we express no such opinion.
</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 valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left"> &nbsp;&nbsp; (signed) Deloitte &#038; Touche LLP
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;&nbsp;&nbsp; Deloitte &#038; Touche LLP     &nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Montreal, Canada<BR>
January&nbsp;31, 2006
</DIV>


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

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.31
<SEQUENCE>5
<FILENAME>m30365exv99w31.htm
<DESCRIPTION>CERTIFICATIONS OF THE CEO & CFO PURSUANT TO S.302 SOX
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w31</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;99.31</B>
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">I, Michael J. Sabia, President and Chief Executive Officer of BCE Inc., certify that:
</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="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>I have reviewed this annual report on Form 40-F of BCE Inc.;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Based on my knowledge, this report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period
covered by this report;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Based on my knowledge, the financial statements, and other financial information included in
this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the issuer as of, and for, the periods presented in this report;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The issuer&#146;s other certifying officer(s) and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules&nbsp;13a-15(e) and
15d-15(e)) for the issuer and have:</TD>
</TR>

</TABLE>
</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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Designed such disclosure controls and procedures, or caused such disclosure controls
and procedures to be designed under our supervision, to ensure that material information
relating to the issuer, including its consolidated subsidiaries, is made known to us by
others within those entities, particularly during the period in which this report is being
prepared;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#091;Reserved&#093;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Evaluated the effectiveness of the issuer&#146;s disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the disclosure
controls and procedures, as of the end of the period covered by this report based on such
evaluation; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Disclosed in this report any change in the issuer&#146;s internal control over financial
reporting that occurred during the period covered by the annual report that has materially
affected, or is reasonably likely to materially affect, the issuer&#146;s internal control over
financial reporting; and</TD>
</TR>

</TABLE>
</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="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The issuer&#146;s other certifying officer(s) and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the issuer&#146;s auditors and the
audit committee of the issuer&#146;s board of directors (or persons performing the equivalent
functions):</TD>
</TR>

</TABLE>
</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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All significant deficiencies and material weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to adversely affect
the issuer&#146;s ability to record, process, summarize and report financial information; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any fraud, whether or not material, that involves management or other employees who
have a significant role in the issuer&#146;s internal control over financial reporting.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">March&nbsp;10, 2006
</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="38%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;(signed)&nbsp;Michael J. Sabia
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
&nbsp;&nbsp;Michael J. Sabia
</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">&nbsp;&nbsp;President and Chief Executive Officer</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">&nbsp;&nbsp;BCE Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;99.31</B>
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">I, Siim A. Vanaselja, Chief Financial Officer of BCE Inc., certify that:
</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="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>I have reviewed this annual report on Form 40-F of BCE Inc.;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Based on my knowledge, this report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period
covered by this report;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Based on my knowledge, the financial statements, and other financial information included in
this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the issuer as of, and for, the periods presented in this report;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The issuer&#146;s other certifying officer(s) and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules&nbsp;13a-15(e) and
15d-15(e)) for the issuer and have:</TD>
</TR>

</TABLE>
</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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Designed such disclosure controls and procedures, or caused such disclosure controls
and procedures to be designed under our supervision, to ensure that material information
relating to the issuer, including its consolidated subsidiaries, is made known to us by
others within those entities, particularly during the period in which this report is being
prepared;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#091;Reserved&#093;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Evaluated the effectiveness of the issuer&#146;s disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the disclosure
controls and procedures, as of the end of the period covered by this report based on such
evaluation; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Disclosed in this report any change in the issuer&#146;s internal control over financial
reporting that occurred during the period covered by the annual report that has materially
affected, or is reasonably likely to materially affect, the issuer&#146;s internal control over
financial reporting; and</TD>
</TR>

</TABLE>
</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="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The issuer&#146;s other certifying officer(s) and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the issuer&#146;s auditors and the
audit committee of the issuer&#146;s board of directors (or persons performing the equivalent
functions):</TD>
</TR>

</TABLE>
</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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All significant deficiencies and material weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to adversely affect
the issuer&#146;s ability to record, process, summarize and report financial information; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any fraud, whether or not material, that involves management or other employees who
have a significant role in the issuer&#146;s internal control over financial reporting.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">March&nbsp;10, 2006
</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="38%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;(signed)&nbsp;Siim A. Vanaselja
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
&nbsp;&nbsp;Siim A. Vanaselja
</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">&nbsp;&nbsp;Chief Financial Officer</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">&nbsp;&nbsp;BCE Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.32
<SEQUENCE>6
<FILENAME>m30365exv99w32.htm
<DESCRIPTION>CERTIFICATIONS OF THE CEO & CFO PURSUANT TO S.906 SOX
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w32</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;99.32</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT<BR>
TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to 18 U.S.C. Section&nbsp;1350, as adopted pursuant to Section&nbsp;906 of the Sarbanes-Oxley
Act of 2002, each of the undersigned officers of BCE Inc. (the &#147;Company&#148;), does hereby certify, to
such officer&#146;s knowledge, that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the annual report on Form 40-F for the year ended December&nbsp;31, 2005 of the Company fully
complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and
the information contained in the Form 40-F fairly presents, in all material respects, the financial
condition and results of operations of the Company.
</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 valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Dated: March 10, 2006&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left"> &nbsp;&nbsp;(signed) Michael J. Sabia
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Michael J. Sabia&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">President and Chief Executive Officer<BR>
BCE Inc.&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Dated: March 10, 2006&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left"> &nbsp;&nbsp;(signed) Siim A. Vanaselja
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Siim A. Vanaselja&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Chief Financial Officer<BR>
BCE Inc.&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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`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
