Financial: Bell Canada International Reports Record Growth in Subscribers With 800,000 Net Additions During the First Quarter - ended Mar 31,1999 - Company Financial Information

EDGE, On & About AT&T, May 3, 1999

Bell Canada International Inc. (NASDAQ:BCICF) (ME:BI.) (TSE:BI.) ("BCI") Tuesday reported strong subscriber growth in its operations for the first quarter ended March 31, 1999, with total subscribers exceeding 3.6 million.

This represents a five-fold increase over the corresponding period last year, and an increase of 28 percent from the previous quarter. On a proportionate basis (i.e. taking BCI's percentage ownership interest in each of its operations), subscribers nearly tripled over the same quarter last year to over 850,000.

In announcing the first quarter results, Derek Burney, Chairman and CEO of BCI stated, "I am pleased with the significant growth in our subscriber base, and in particular the growth in our Asia-Pacific operations, which now account for 53 percent of our proportionate subscribers, compared to only 9 percent at the same time last year. This reflects a long-standing BCI objective: balanced growth between Latin America and Asia-Pacific. While results have been impacted by the downturn in Latin America, we believe that, as these economies recover, our companies will resume strong growth."

BCI's consolidated revenues for the first quarter rose to $195 million, an increase of 21 percent compared to revenues of $161 million in the first quarter of 1998. Operating earnings before depreciation and amortization (EBITDA) for the first quarter totalled $32 million, compared to $34 million recorded in the first quarter of 1998. In the first quarter of 1998, however, BCI earned non-recurring fees of approximately $2 million.

On a proportionate basis, BCI's revenue for the first quarter of 1999 rose to $115 million, an increase of 39 percent compared to proportionate revenue of $83 million for the first quarter of 1998. (For accounting purposes, KG Telecom's revenues are not included, given BCI's current ownership interest of 10 percent. Had these been included, BCI's proportionate revenues would have been $126 million.) Proportionate EBITDA for the first quarter of 1999 decreased to $13 million, due to the severe economic downturn in and currency devaluations in Colombia and Brazil. As previously announced, COMCEL sought and obtained waivers from its bankers from compliance with certain financial covenants pertaining to its senior secured credit agreement.

With the acquisition of equity interests in Occel and Hansol PCS, and added financing costs related to ongoing investment in expanding networks, BCI recorded a loss in the first quarter of 1999 of $73 million, compared to a loss of $17 million in the first quarter of 1998.

BCI was able to secure new, promising opportunities at low prices during the period. In January, a BCI-led consortium acquired the license to provide competitive local exchange ("CLEC") services in the 88 million population Northeast region of Brazil, including the key cities of Rio de Janeiro and Belo Horizonte. Just last week, BCI announced that a similar BCI-led consortium acquired the license to provide CLEC services for the key state of Sao Paulo which is contiguous to the Northeast region. Both licenses were acquired at the minimum price averaging US 60 cents per POP.

Burney noted: "The combination of Sao Paulo and the Northeast region gives BCI the largest telephony footprint in Brazil, in licensed territories with a population of 123 million people."

BCI is in the business of building and developing world-class communications companies in markets outside of Canada, with a focus on Latin America and the Asia-Pacific region. The company's affiliated operations provide a range of high quality and innovative services to over 3.6 million subscribers in eight countries, primarily via digital, wireless networks. A subsidiary of BCE Inc., Canada's largest communications company, BCI is listed on the Montreal and Toronto stock exchanges under the symbol BI, and on the Nasdaq National Market under the symbol BCICF.

Selected Consolidated Financial Information (Unaudited)
First Quarter 1999
(Cdn$ thousands except per share data)

                                  Three months ended
                                       March 31,
------------------------------------------------------------
                                   1999         1998
------------------------------------------------------------

Income Statement and Cash Flow

Revenues                        195,309      160,653
EBITDA (i)                       32,050       33,949
Net earnings (loss) applicable
 to common shares               (72,531)     (17,064)
Net earnings (loss)
 per common share (ii)            (0.92)       (0.22)

Balance Sheet

Total cash and notes
 receivable
 Corporate                      344,312       32,835
 Operating Companies             91,976       70,433

Total assets                  3,305,400    2,923,589

Short-term debt
 Corporate                      342,878      273,528
 Operating Companies            152,272      180,702

Long-term debt (iii)
  Corporate                           -            -
  Operating Companies         1,505,557    1,506,198

Total shareholders' equity      812,730      538,325


Selected Proportionate Information (Unaudited)(iv)
First Quarter 1999 (Cdn$ thousands except POPs and subscribers)

                                  Three months ended
                                       March 31,
------------------------------------------------------------
                                   1999         1998
------------------------------------------------------------

Proportionate POPs (millions)     155.0         71.9
Proportionate subscribers       856,840      306,580
Proportionate revenue           115,234       82,764
Proportionate EBITDA (i)         12,891       14,509