Ontario Securities Commission Decision Leaves fONOROLA Shareholder Rights Plan in Place until June 26

Business Wire, May 28, 1998

MONTREAL--(BUSINESS WIRE)--May 28, 1998--fONOROLA Inc. (TSE:FON.) (ME:FON.) (TSE:FON.A.) (ME:FON.A.) fONOROLA today announced that the Ontario Securities Commission has decided to permit the Company's Shareholder Rights Plan to remain effective until June 26, 1998, a date which is 60 days from the date of Call-Net's initial bid.

Commenting on the OSC decision, fONOROLA issued the following statement: "We welcome this decision by the Ontario Securities Commission, which will allow us to continue to explore strategic alternatives, a process in which we have been engaged, with Goldman, Sachs & Co., since late April."

fONOROLA currently owns or has agreed to acquire over 23,000 route kilometres of fibre-optic network in Canada and the United States. When completed, the network will span the North American continent from Vancouver, Seattle and Los Angeles on the West Coast to Halifax, New York City and Miami on the East Coast and major cities in between. Combining the capacity, speed and reliability offibre-optic cable and of Nortel's state-of-the-art OC-192 SONET technology, this new transcontinental network will also provide the shortest direct fibre-optic route from North America to Europe and Asia.

fONOROLA offers its customers a full range of high-quality, price-competitive voice and data communications services. Headquartered in Montreal, the Company operates switching centres in Vancouver, Calgary, Toronto, Seattle, Buffalo and New York City, and, through its wholly-owned U.S. subsidiary, fONOROLA Corporation, is a licensed facilities-based carrier in the United States.

    CONTACT:  Kekst and Company
               Roy Winnick, 877/ 954-3666