New CATA, Allstream Secure Collaboration System Helps SMBs Meet Securities Requirements
June 26, 2006

Ottawa, June 26, 2006… Allstream, one of Canada's leading national business communication solutions providers, and CATAAlliance, in association with Microsoft Canada Co., today announced the launch of a secure communications system that will help companies share critical documents -- a capability that is especially useful when preparing for securities and legislative compliance.

The new business affinity program features Allstream's Collaboration Suite™(ACS), a collection of applications, including hosted Live Communications Server(R) (LCS), that together provide businesses the ability to collaborate securely from any location.

The Company is the first to market in Canada with a hosted Microsoft Live Communications Server (LCS) solution and collaboration suite using Microsoft's award winning Real-Time Collaboration (RTC) technology.

John Reid, CATAAlliance President, noted that "CATA is committed to helping its members build competitive success through the application of advanced technologies. We see the Collaboration Suite as a powerful resource particularly for small and midsized businesses (SMB) to better connect their business, protect information, collaborate and solve problems in real-time."

Reid added, "It will also help transform business interactions granting organizations the ability to share applications and documents and support for ever increasing reporting, compliance and legislation requirements such as, Sarbanes Oxley and the equivalents issued by the Canadian Securities Administrators."

"We are offering the most comprehensive, secure and fully-integratedhosted solution of this kind in Canada," said Vince Sacca, Director of Collaboration Management, Allstream. Allstream Collaboration Suite™ is an important extension of our recently-launched Small and Mid-Sized Business Suite and leverages our intelligent data centres and our secure intelligent network to deliver innovative productivity solutions previously only generally available to large enterprises."

Aisha Umar, Director of Unified Communications, Microsoft Canada Co. concluded, "We are excited that Allstream has developed an Integrated Communications solution based on the Microsoft Real-Time Collaboration platform, and pleased to work with CATAAlliance as a partner to help Canadian mid-sized enterprises break down silos of communication and bring them together into an integrated and intuitive experience. Integrated Communications is a core element of Microsoft's strategy to improve collaboration through software and services built on the Microsoft Office and Windows Server System."

ACTION ITEM:
Please contact Ian McNaughton at ian.mcnaughton@mtsallstream.com or at 613-688-8760 for further information on MTS Allstream Collaboration Suite - Hosted Microsoft Exchange Special Offer to CATAAlliance Members

About MTS Allstream
MTS Allstream is one of Canada's leading national communication solutionsproviders, delivering innovative products and services through its ConsumerMarkets and Enterprise Solutions divisions. Our Consumer Markets divisionserves residential and business customers in Manitoba with a full suite ofwireline voice, high-speed Internet and data, next generation wireless,directory, digital television, security and alarm monitoring services. OurEnterprise Solutions division provides national business customers with aworld-class portfolio of IP-based connectivity, managed network services, and professional services. MTS Allstream's extensive national broadband fibreoptic network spans more than 24,300 kilometres, and provides internationalconnections through strategic partnerships and interconnection agreements with other international service providers. Our Common Shares are listed on The Toronto Stock Exchange (trading symbol: MBT). For more information, please visit: http://www.mtsallstream.com.

About Microsoft Canada Co.
Established in 1985, Microsoft Canada Co. is the Canadian subsidiary of Microsoft Corporation (Nasdaq "MSFT") the worldwide leader in software, services and Internet technologies for personal and business computing. Microsoft Canada provides nationwide sales, marketing, consulting and local support services in both French and English. Headquartered in Mississauga, Microsoft Canada has 10 regional offices across the country dedicated to empowering people through great software - any time, any place and on any device. Visit Microsoft Canada's web site at http://www.microsoft.ca

About CATAAlliance: Advancing the business of technology
Canadian Advanced Technology Alliance (CATAAlliance) is Canada's leading, most influential and entrepreneurial technology alliance. The common purpose that unites the membership is CATAAlliance's commitment to members' business growth. As the "Traditional Champion" of Canadian research and development, CATAAlliance's mission is to stimulate "Global Business Growth" through the forces of Canadian innovation and strategic partnership. Visit http://www.cata.ca