VarTec Telecom Files Suit Against BCE, BCE Ventures and William Anderson

Business Wire, Dec 2, 2002

Business Editors & Legal Writers

DALLAS--(BUSINESS WIRE)--Dec. 2, 2002

Today, VarTec Telecom, Inc. and VarTec Holding Company ("VarTec") announced that it had filed suit against BCE, Inc., BCE Ventures, Inc. and William D. Anderson (collectively, "BCE") in Federal District Court in Dallas, Texas alleging that BCE defrauded VarTec in connection with VarTec's acquisition of Excel in April 2002.

The Complaint states that BCE and Anderson, the former Chief Financial Officer of BCE, Inc. and President of BCE Ventures, Inc., induced VarTec to acquire Excelcom, Inc., Excel Telecommunications (Canada) Inc., and Telco Communications Group, Inc. ("Excel") from Teleglobe, Inc. by misrepresenting that substantial liabilities associated with the transaction would be assumed by a financially stable entity with full financial support from and control by BCE. In public and private statements, BCE repeatedly stated that it was committed to supporting Teleglobe, financially and otherwise, and that Teleglobe was an integral piece of BCE's long-term strategic objectives.

The Complaint further alleges that despite these and other representations, BCE announced its intention to withdraw all financial support for Teleglobe on the first business day following the closing of the transaction, culminating in the necessity for Teleglobe's insolvency proceedings less than 40 days later. VarTec seeks damages in excess of $250 million.

VarTec is a provider of local and long distance service and is considered a pioneer in "dial around" long distance service. VarTec offers services to both residential consumers and small business customers in the United States and select countries around the world.

For information concerning this matter please contact Melissa Smith, Vice-President for External Legal Affairs at (214) 424-1505.

For more information about VarTec, please contact Paul Thies at (214) 424-4642.