Agreement Allows Cost Effective Deployment of HSPA Wireless Network; Allstream Gains Access to National Wireless Business Offering

Highlights of the agreements include:

• MTS Allstream and Rogers to share costs for deployment and operation of regional HSPA network
• Company gains access to Rogers' purchasing power for HSPA handsets and network equipment
• Joins the most extensive GSM/HSPA roaming coverage offered in Canada and extensive roaming relationships internationally
• Ability to add national Allstream-branded wireless service to business product portfolio

WINNIPEG, MB, July 28, 2009 - Manitoba Telecom Services Inc., including its principal operating subsidiary, MTS Allstream Inc. ("MTS Allstream") today announced an innovative agreement with Rogers Wireless Partnership ("Rogers") that will see both companies share the cost to deploy a Universal Mobile Telecommunications Systems/High Speed Packet Access ("HSPA") wireless network across the existing MTS Allstream regional wireless footprint. The agreement also allows MTS Allstream to leverage Rogers' purchasing scope and scale to gain cost effective access to new network technology and HSPA handsets. MTS Allstream's HSPA customers will have access to the best national and international roaming capabilities as a Rogers roaming partner. The agreement also provides MTS Allstream with the opportunity to launch a national wireless business offering under the Allstream brand through a competitive wholesale arrangement.

"This announcement is a win for wireless customers in Manitoba, who will benefit from this innovative approach to investment in next generation wireless services and access to the best available national and international roaming ," said Pierre Blouin, Chief Executive Officer, MTS Allstream. "This plan was developed following a careful evaluation of our different options. Our agreement with Rogers will allow us to deploy the HSPA network in Manitoba in a cost effective manner, allowing us to maximize the effectiveness of our capital spending and accelerate plans to launch a new integrated billing platform."

Once complete the HSPA network will provide the widest available coverage in Manitoba and deliver next-generation broadband mobile services to 97% of the population. We expect the majority of the population to be covered by the end of 2010. MTS Allstream HSPA customers will roam on Rogers' national GSM/HSPA network outside of Manitoba, and have access to Rogers' international roaming arrangements. The cost to MTS Allstream for this extensive and unmatched regional HSPA network build will be up to $70 million ending in early 2011, a portion of which will be funded by our existing capital program.

In conjunction with the HSPA rollout, MTS Allstream will implement a new integrated billing platform with capability for multiple services, creating the opportunity for significant future cost savings. Wireless customers will be the first to be served over this new platform, and the cost to bring wireless customers to this platform will be approximately $40 million over the next three years.

"Wireless has been a strong growth engine for MTS Allstream, and this plan will reinforce our strength by providing our customers in Manitoba with access to enhanced wireless services in an environment where we will continue to compete vigorously with all market participants, including Rogers," said Mr. Blouin. "We are excited to be in a position to add a national wireless business service to Allstream's robust product offering in a very disciplined manner. We will be providing more details to stakeholders as we finalize our plans."

MTS Allstream plans to continue to operate its existing CDMA wireless network in Manitoba to support existing CDMA services and roaming traffic.

We believe the agreement with Rogers preserves the Company's flexibility to pursue strategic options in the future.

The agreement is subject to approval by the appropriate regulatory authorities. A Material Change Report describing all material details of the agreement has been filed with the Canadian Securities Administrators. This report will be available at www.sedar.com today

Conference Call with Investment Community
MTS Allstream will be holding a conference call with the investment community to discuss its agreement with Rogers on July 28, 2009 at 10:00 a.m. Eastern Time. Investors are invited to listen to the conference call. The dial-in number is 1-800-732-0232. A live audio Webcast of the investor conference call can be accessed by visiting the Investors section of the MTS Allstream Web site (www.mtsallstream.com). A replay of the conference call will be available until midnight (Eastern time) on August 7, 2009 and can be accessed by dialing 1-877-289-8525 and enter the pass code 21312065#.

About MTS Allstream
MTS Allstream is a wholly-owned subsidiary of Manitoba Telecom Services Inc. As one of Canada's leading national communication solutions companies, MTS Allstream provides innovative communications for the way Canadians want to live and work today. The Company has more than 100 years of experience, with 6,000 employees across Canada dedicated to a mission of delivering true value as seen through the eyes of our customers. In 2008, MTS Allstream had nearly two million total customer connections spanning business customers across Canada and residential consumers throughout the province of Manitoba. The Company's extensive national broadband and fibre optic network spans almost 30,000 kilometres. MTS Allstream is a proud sponsor of Cindy Klassen, 2006 World Champion and Canada's greatest Olympian, and a proud contributor to the Canadian Museum for Human Rights. Manitoba Telecom Services Inc.'s common shares are listed on The Toronto Stock Exchange (trading symbol: MBT). Customers, stakeholders and investors who want to learn more about MTS Allstream services, markets, community commitments and record of creating shareholder value are encouraged to visit: www.mtsallstream.com.

Forward-looking Statements Disclaimer
This news release includes forward-looking statements and information (collectively, the "statements") about the transactions announced herein that are subject to risks, uncertainties and assumptions and importantly regulatory approvals. As a consequence, actual results in the future may differ materially from any conclusion, forecast or projection in such forward-looking statements. Forward-looking statements reflect our expectations as at July 28, 2009. Examples of statements that constitute forward-looking information may be identified by words such as "believe", "expect", "project", "should", "anticipate", "could", "target", "forecast", "intend", "plan", "outlook", "see", "set", "pending", and other similar terms. Many factors could cause anticipated opportunities and actual results to differ materially from those expected, and several material factors and assumptions were applied in drawing conclusions or making a forecast or projection set out in such forward looking statements. Except as required by law, we disclaim any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

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