MTS Expands Canadian IPTV Services With 2Wire HomePortal Intelligent Gateways

2Wire, a leading provider of broadband solutions, today announced that MTS Allstream Inc. ("MTS") selected its HomePortal® intelligent gateways to enable a major expansion of its IPTV services in Manitoba, Canada. This expansion is part of MTS's long-term broadband evolution strategy to bring television, Internet, phone, and home security and automation together on one simple platform.

MTS's expansion effort has already started with a rollout in Portage la Prairie, Manitoba. Additional rollouts in the cities of Winnipeg and Brandon are planned for 2009.

"Our residential customers expect advanced broadband and TV services to be delivered reliably and seamlessly," said Kelvin Shepherd, president, consumer markets division, MTS Allstream. "2Wire and its proven, high-quality HomePortal intelligent gateways are a critical part of our plans to extend functional and geographical coverage for our broadband and TV services."

Sean Parham, executive vice president and general manager, products and platforms, at 2Wire, said, "Already the leading telco TV service provider in Canada, MTS is committed to keeping ahead of the curve in providing next-generation broadband services. With our HomePortal gateway at the hub of the home network, MTS can provide its new IPTV subscribers with a robust and reliable bundle of voice, data and entertainment services."

MTS is leveraging the 2Wire HomePortal 3800HGV, the world-wide market share leader in VDSL2, IPTV gateways. The 3800HGV is a full TR-069 standard compliant intelligent gateway, optimized for delivering advanced voice, data, and video services to the home.

About MTS Allstream

MTS Allstream is a wholly owned subsidiary of Manitoba Telecom Services Inc. and is one of Canada's leading national communication solutions providers, delivering innovative products and services through the Enterprise Solutions and Consumer Markets divisions. The Enterprise Solutions division, which operates under the Allstream brand nationally and under the MTS Allstream brand in Manitoba, is a leading competitor in the national business and wholesale markets. This division offers customers a portfolio of solutions tailored to the needs of medium and large businesses looking for success in a world of rapidly evolving technology -- IP connectivity, unified communications, IT consulting and security services. The Consumer Markets division leads every telecommunications market segment in Manitoba, delivering a full suite of next generation wireless, high-speed Internet and data, digital television and wireline voice services under the MTS brand, as well as small business services in select markets across Canada under the Allstream brand, and security and alarm monitoring services through AAA Alarm Systems Ltd., an affiliate of MTS Allstream which also operates in other western provinces. MTS Allstream's extensive national broadband fibre optic network spans more than 24,300 kilometres, and provides international connections through strategic alliances and interconnection agreements with other international service providers. Manitoba Telecom Services Inc.'s common shares are listed on The Toronto Stock Exchange (trading symbol: MBT). For more information, please visit: www.mtsallstream.com .

About 2Wire

Engineered for the carrier and optimized for the subscriber, 2Wire broadband solutions provide simple, powerful user experiences. 2Wire products and services include residential gateways, multi-service media platforms, remote management systems, value-added services, and customer support. 2Wire customers are leading broadband providers throughout the U.S., Canada, Latin America, Europe, Australia, and Asia, including AT&T, Telmex, BT, EMBARQ, Bell Canada, SingTel, Telstra and others. For more information, visit www.2Wire.com .

2Wire is a registered trademark of 2Wire, Inc. in the United States and in other jurisdictions throughout the world. Other 2Wire product and service names are trademarks or registered trademarks of 2Wire, Inc.