Bell Canada International Inc.
NEX BOARD : BI.H

Bell Canada International Inc.

August 02, 2006 10:00 ET

BCI Announces the Sale of a Wholly-Owned Subsidiary for Proceeds of 2.5 Million Euros

MONTREAL, QUEBEC--(CCNMatthews - Aug. 2, 2006) - BCI (NEX:BI.H) today announced that, as part of the windup and dissolution of its subsidiaries, BCI disposed of an indirect, wholly-owned, foreign-based and non-operating subsidiary for proceeds of 2.5 million Euros (approximately Cdn $3.6 million). The value received in this transaction was based solely on the tax attributes of the subsidiary. With the exception of Canbras Communications Corp., ("Canbras") in which BCI continues to hold a 75.6% interest, no further proceeds are expected to be realized from the ongoing windup and dissolution of BCI's subsidiaries.

BCI had previously estimated a final shareholder distribution of $0.56 per share with such distribution to be made by June 30, 2007. In light of the disposition announced today, the final distribution to shareholders is currently expected to be approximately $0.65 per share.

Prior to making a final distribution to shareholders, BCI will need to resolve all remaining contingencies, receive final tax clearance certificates, dissolve all of its remaining investee companies and obtain Court approval in the context of the Plan of Arrangement. While it is currently anticipated that these steps can be completed by June 30, 2007, readers are encouraged to refer to BCI's 2005 Annual Report and other filings with Canadian securities commissions to more fully understand the risks that could cause such date to be delayed as well as for the amount to be reduced.

BCI is operating under a court supervised Plan of Arrangement, pursuant to which BCI intends to monetize its assets in an orderly fashion and resolve outstanding claims against it in an expeditious manner with the ultimate objective of distributing the net proceeds to its shareholders and dissolving the company. BCI is listed on the NEX Exchange under the symbol BI.H. Visit our Web site at www.bci.ca.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS.

Certain statements made in this press release describing BCI's intentions, expectations or predictions are forward-looking and are subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors that could cause actual events to differ materially from current expectations include, among other things, and in addition to the factors referred to in this release, whether any unforeseen claims are asserted against BCI (or its directors or officers) in connection with the winding-up and liquidation of BCI pursuant to the Plan of Arrangement or otherwise; the timing of and costs associated with the final winding-up and liquidation of BCI pursuant to the Plan of Arrangement; and certain other factors set forth in BCI's filings with Canadian securities commissions. In addition, forward looking statements do not reflect the potential impact of any legal or regulatory proceedings that may be announced after the statements are made. BCI disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information

  • Bell Canada International Inc.
    Howard N. Hendrick
    Executive Vice-President and Chief Financial Officer
    (514) 392-2260
    howard.hendrick@bci.ca