MANITOBA TELECOM SERVICES INC.

We are one of Canada’s leading national communications providers. Through our divisions – Consumer Markets and Enterprise Solutions – we deliver state-of-the-art communications products and services to customers in Manitoba and across the country.

» click to enlarge

TABLE OF CONTENTS MTS At-A-Glance & Site Index Financial Highlights Letter To Shareholders MD&A • Financial Reports & Consolidated Statements report on management’s responsibility audit committee report auditors' report consolidated statement of income consolidated statement of retained earnings consolidated balance sheet consolidated statement of cash flows Consolidated Notes Five Years In Review • Investor Information investor information executive committee of manitoba telecom services inc. officers of manitoba telecom services inc. mts board of directors

CONSUMER MARKETS

Operating under the MTS brand, our Consumer Markets division is the leading communications provider in Manitoba, and one of the most profitable communications operations in North America. We offer a full suite of wireline voice, high-speed Internet and data, next generation wireless, directory, digital television, security and alarm monitoring services. In 2005, MTS delivered among the best growth profiles of any communications provider in Canada on the strength of our fast-growing wireless, high-speed Internet and digital television services.

ENTERPRISE SOLUTIONS

Operating under the Allstream brand, our Enterprise Solutions division is a strong national competitor in the Canadian telecommunications market. This division has a solid track record of developing innovative solutions that help mid-sized and large businesses compete more effectively. We offer a comprehensive portfolio of unique Internet Protocol (“IP”)-based communications solutions including connectivity, managed services and professional services delivered through a world-class IP multiprotocol label switching network infrastructure that spans the country.We have an excellent base of blue chip customers, a portfolio of services that is second to none, and talented employees who deliver first-rate customer service. Agile, innovative and customer-focused, our Enterprise Solutions division will continue to build its reputation as a leading communications solutions and information technology services provider for business and public organizations.