Business Editors/High-Tech Writers

MONTREAL--(BUSINESS WIRE)--Jan. 30, 2004

Bell Canada International Inc. (TSX:BI):

-- Canbras completes the sale of all of its operations in Brazil

-- Prepayment of Axtel Notes

-- Vesper loan guarantees settled

-- Shareholders class action lawsuits dismissed

As a result of the adoption on July 17, 2002 of BCI's Plan of Arrangement, BCI's consolidated financial statements for the fourth quarter of 2003 reflect only the activities of BCI as a holding company. BCI's 75.6% interest in Canbras Communications Corp. ("Canbras") is recorded under Investments on the balance sheet at $15 million, being the lower of its carrying value and estimated net realizable value. Canbras' operating results are not reflected on BCI's consolidated statements of earnings.

Fourth Quarter Results

As at December 31, 2003, BCI's shareholders' equity was $225.7 million, up by $16.5 million from the third quarter of 2003. This increase was mainly as a result of a gain of $ 10.4 million on the Vesper loan guarantees settlement, a gain of $9.8 million on collection of the Axtel S.A de C.V. ("Axtel") long term note and interest income of $2.8 million partially offset by interest expense of $4.6 million on the BCI's 11% senior unsecured notes and administrative expenses of $2.0 million.

In the second quarter of 2003, BCI recorded a provision for the Vesper loan guarantees of $27.3 million (US$ 20.2 million). Pursuant to an agreement concluded on December 2, 2003, BCI paid US$ 12 million in consideration for the absolute release of its obligation under such guarantees and as a result BCI recorded a gain of $10.4 million in the fourth quarter of 2003.

Also during the quarter, BCI received US$ 8.6 million in connection with the prepayment by Axtel of two promissory notes held by BCI: a US$ 1.2 million face value note due December 31, 2003 (the "Short-Term Note"), and a US$ 9.4 million face value note due in the second quarter of 2006 (the "Long-Term Note"). These notes were originally issued pursuant to the Axtel transaction announced on March 27, 2003. At that time, the Short-Term Note was recorded at its face value while the Long-Term Note was recorded at zero fair value. As a result of these prepayments, BCI recorded in the fourth quarter a gain of $ 9.8 million.