BCE AND VARTEC REACH AGREEMENT ON SALE OF EXCEL COMMUNICATIONS

Montréal (Québec)/Dallas, Texas, August 26, 2001 - Bell Canada Enterprises (BCE) and VarTec Telecom, Inc. have announced the signing of definitive agreements for the sale of Excel Communications' North American operations to VarTec. The announcement was made in Dallas today at Excelebration, Excel's annual meeting of independent representatives.

Dallas-based Excel Communications was acquired by BCE in 2000 as part of its purchase of Teleglobe Inc. Excel, with year 2000 revenues in excess of US$1 billion, uses the power of network marketing and its extensive force of independent representatives to deliver long distance, paging, wireless and Internet products and services primarily throughout North America. VarTec Telecom, also based in Dallas, Texas, is considered a pioneer and the leader in the "dial around" long distance services segment. In addition to dial around revenues in excess of US$1 billion in the United States and Europe, VarTec markets bundled long distance, local, private line and data services in the United States.

"We believe VarTec represents an ideal partner as together with Excel they represent a dynamic player in what is a highly competitive marketplace," said Bill Anderson, President of BCE Ventures, which has been managing the Excel investment. "Excel and its network of independent representatives face a bright future as a result of this agreement with VarTec."

A. Joe Mitchell Jr., Founder and Chairman of VarTec Telecom, Inc. stated, "Acquiring Excel Communications will allow us to continue providing our customers with the best value in the industry on both a national and international level. This collaborative effort will create a more powerful force within the telecommunications industry as a major player in the consumer sector with combined revenues exceeding $2 billion. The acquisition of Excel's network will essentially double the number of VarTec switches while also doubling our network capacity."

"The potential synergy between VarTec and Excel presents exciting opportunities," said Christina Gold, President and CEO of Excel. "With the strengths of both companies and complementary business units, we will enhance our offerings while advancing our overall standing in the marketplace. Specifically, this transaction will open up a world of opportunity for our representatives given the increased size and reach of the new organization."

The purchase price, estimated to be approximately US$ 250 million, will be based on Excel's actual 2001 year end financial results and will be paid in the form of a five-year interest-bearing promissory note. The sale is binding on both companies and is subject only to regulatory and other approvals.

About BCE Inc.
BCE is Canada's largest communications company. It has more than 22 million customer connections through the wireline, wireless, data/Internet and satellite services it provides, largely under the Bell brand. BCE leverages those connections with extensive content creation capabilities through Bell Globemedia which features some of the strongest brands in the industry — CTV, Canada's leading private broadcaster, The Globe and Mail, Canada's National Newspaper, and Sympatico-Lycos and Globe Interactive, leading Canadian Internet portals. As well, BCE has extensive e-commerce capabilities provided under the BCE Emergis brand and serves international customers through Teleglobe, a global connectivity, content distribution and Internet hosting company. BCE shares are listed in Canada, the United States and Europe.

About VarTec Telecom, Inc.
VarTec Telecom, a leading provider of local and long distance service, is considered a pioneer in "dial around" long distance service. The company offers services to both consumers and small business customers. The flagship residential product, FiveLine®, offers one of the most competitive rates in the industry. VarTec Telecom also operates VarTec Telecom Europe, which manages multiple customer service centers and switch sites. VarTec Telecom was recently named one of the Top 500 privately held companies by Forbes Magazine. To learn more about VarTec Telecom, visit the web site at www.vartec.com.