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PRESS RELEASE

Introducing Allstream Hosted Collaboration Solution, Delivering Voice, Video and Collaboration Cost-effectively in the Cloud

Allstream is the first Service Provider in Canada to offer Cisco Unified Communications as a Service over a national MPLS network

TORONTO, ON, May 2, 2013 – Allstream, Canada's all-business communications provider, today announced the introduction of Allstream Hosted Collaboration Solution (HCS), a hosted and fully managed unified communications and collaboration solution. Allstream HCS brings the Cisco® Unified Communications and Collaboration suite of applications to Canadian businesses through a new, cost-effective, cloud-based delivery model. All services will be hosted locally and delivered to customers over Allstream's world-class, SIP enabled, fibre IP network designed to help ensure a high level of security and reliability.

The new offering allows Allstream customers to operate Unified Communications as a Service (UCaaS) including integrated voice, video, presence and mobility applications for compatible desktop and mobile devices. Allstream is offering HCS on a per month/per user pricing model. Since HCS is deployed through the cloud, it does not come with the associated capital costs, waiting time and additional equipment needed to meet the redundancy requirements associated with on-premise solutions.                          

"Businesses are looking for ways to improve and simplify their communications and allow their people to collaborate easily and with a high degree of mobility," said Dean Prevost, President, Allstream. "Allstream Hosted Collaboration Solution is backed by the security and reliability of our national 30,000 kilometre IP fibre network and, being a cloud-based service, offers the benefit of being an operating vs. capital expense, allowing customers simpler budgeting and greater flexibility in their IT services."

Allstream HCS also delivers reliability, redundancy and business continuity services through Allstream's robust and resilient network architecture. Customers will also benefit from the Allstream Service Guarantee -- five tangible customer service commitments to ensure customers get the service they need, when they need it.

"Allstream is the first service provider in Canada to bring to market a Cisco Powered collaboration solution over a national MPLS and SIP network," said Nitin Kawale, President, Cisco Canada. "Allstream is leading the cloud market transition to deliver customers the most up-to-date collaboration services available, quickly and cost-effectively."

Rather than a "one size fits all" approach to unified communications, Allstream's HCS provides customers with the flexibility to choose collaboration and communication tools such as voicemail, instant messaging, video and web meetings based on each user's role in the organization. These virtualized, customized services come with a consistent user experience across multiple devices and can be scaled up or down to meet the evolving business needs.

Allstream is a Cisco Gold Certified Partner, a Cisco Cloud and Managed Service Partner (CMSP) and carries a Cisco Powered service designation. 

About Allstream

Allstream is a Canadian leader in IP communications and the only national communications provider that works exclusively with business customers of all sizes. With nearly 600,000 customer connections, Allstream's momentum is fuelled by the knowledge, skills and entrepreneurial spirit of its 2,500 employees across the country who collaborate with customers to determine their unique communications solutions needs. Supported by its more than 30,000-kilometre nationwide high-performance fibre-optic network, Allstream's broad portfolio of business solutions are built from an array of advanced communications technologies and services including a wide range of innovative, highly-scalable IP-based solutions to help organizations communicate more efficiently and profitably. Allstream takes pride in its commitment to delivering an exceptional customer experience, and has long been recognized by its technology partners for the contributions made to their businesses. Allstream is wholly-owned by Manitoba Telecom Services Inc., which is listed on the TSX (trading symbol: MBT). For information on Allstream's products and solutions, please visit www.allstream.com.

About Cisco

Cisco (NASDAQ: CSCO) is the worldwide leader in IT that helps companies seize the opportunities of tomorrow by proving that amazing things can happen when you connect the previously unconnected. Cisco Canada Co., a wholly owned subsidiary of Cisco, has offices across Canada dedicated to customer support, sales and service. For ongoing news, please go to http://newsroom.cisco.com/canada/.

Forward-looking Statements Disclaimer

This news release includes forward-looking statements and information (collectively, the "statements") about the Company's corporate direction, business opportunities, operations, financial objectives and future financial results and performance that are subject to risks, uncertainties and assumptions. As a consequence, actual results in the future may differ materially from any conclusion, forecast or projection in such forward-looking statements. Therefore, forward-looking statements should be considered carefully and undue reliance should not be placed on them. Examples of statements that constitute forward-looking information may be identified by words such as "believe", "expect", "project", "should", "anticipate", "could", "target", "forecast", "intend", "plan", "outlook", "see", "set", "pending", and other similar terms.

Factors that could cause anticipated opportunities and actual results to differ materially include, but are not limited to, matters identified in the "Material assumptions" section below, the "Risks and uncertainties" section, elsewhere in the Company's 2012 Annual MD&A and 2012 Annual Information Form, all of which are available on SEDAR at www.sedar.com.

Please note that forward-looking statements reflect Management's expectations as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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