1

NoticeNotice

This presentation contains certain forward-looking statements and there are risks that actual results may differ

materially from those contemplated by these forward-looking statements. Readers should consult Manitoba

Telecom Services Inc.’s filings with the Canadian securities commissions for further information on these risks.

This presentation contains certain forward-looking statements and there are risks that actual results may differ

materially from those contemplated by these forward-looking statements. Readers should consult Manitoba

Telecom Services Inc.’s filings with the Canadian securities commissions for further information on these risks.

MTSMTS

WhyWhy

CustomerCustomer

CurrentCurrent

OutlookOutlook

TV?TV?

StatusStatus

OfferingsOfferings

2

The MTS AdvantageThe MTS AdvantageStrong Regional PlayerStrong Regional Player

Exceptional Brand RecognitionExceptional Brand Recognition

Receptive Customer BaseReceptive Customer Base

Dominant Market PositionDominant Market Position

Full Service Telecom ProviderFull Service Telecom Provider

Leader in Operating EfficienciesLeader in Operating Efficiencies

The Manitoba OpportunityThe Manitoba Opportunity

3

TelecomTelecom

FoundationFoundationis theis the

MTS StrategyMTS Strategy

TRANSFORMTRANSFORM

EXPANDEXPAND

DEFENDDEFEND

4

DEFENDDEFEND

MTS StrategyMTS Strategy

LocalLong DistanceDirectory

LocalLong DistanceDirectory

MTS StrategyMTS Strategy

TRANSFORMTRANSFORM

WirelessHigh-speed InternetWirelessHigh-speed Internet

5

Digital TVDigital TVEXPANDEXPAND

Interactive EntertainmentInteractive Entertainment

MTS StrategyMTS Strategy

Grow TheGrow The

C o r e C o r e

6

Industry EvolutionIndustry Evolution

Cable & telecom sectors evolvingProviding competitive services to same customers

Cable & telecom sectors evolvingProviding competitive services to same customers

Industry EvolutionIndustry Evolution

IP based technologyKey driverTelecom players in TV marketCable players in telecom market

IP based technologyKey driverTelecom players in TV marketCable players in telecom market

7

Industry EvolutionIndustry Evolution

Industry EvolutionIndustry Evolution

Spending on IP based capabilities increasingCapital constraints for many players liftingDecreasing balance sheet leverageNormalized CAPEX levels emerging

Spending on IP based capabilities increasingCapital constraints for many players liftingDecreasing balance sheet leverageNormalized CAPEX levels emerging

8

Strong Broadband FoundationStrong Broadband Foundation

Churchill

WinnipegWinnipeg

Gillam

Brandon

Flin Flon

Rivers

Thompson

Grand Rapids

Lynn Lake

Swan River

The Pas

Selkirk Virden

Berens River

Began in 2000Multi-year investment to upgrade network for broadbandHigh-speed Internet reaches 79% of Manitobans

96% of Winnipeg & Brandon

Began in 2000Multi-year investment to upgrade network for broadbandHigh-speed Internet reaches 79% of Manitobans

96% of Winnipeg & Brandon

20002000*At December 31st

20032003

$45 M Total Internet Revenues$45 M Total Internet Revenues

Consumer High-Speed InternetConsumer High-Speed InternetMarket Share*Market Share*

30%30%46%46%

9

High-Speed InternetHigh-Speed Internet

Government of ManitobaProvincial Data Network$50 M revenues over 3 yrs.

Leveraged investmentAdded 12,000 households & 1,500 businessesFirst-in advantage

Government of ManitobaProvincial Data Network$50 M revenues over 3 yrs.

Leveraged investmentAdded 12,000 households & 1,500 businessesFirst-in advantage

2000 2001 2002 2003

11,200

61,600

34,000

77,600

20042004 Mid-Teen GrowthMid-Teen Growth

High-Speed Internet High-Speed Internet Consumer SubscribersConsumer Subscribers

10

MTS TVMTS TV

Evolutionary phenomenonPotential new servicesImproved efficiencies

Evolutionary phenomenonPotential new servicesImproved efficiencies

11

WhyWhy

Profitable GrowthProfitable Growth

Strong DefenseStrong Defense

DeliverDeliver

CreateCreate

TV?TV?

Exceeding initial expectationsExtremely positive results

TechnologyCustomer responseMarket share

Exceeding initial expectationsExtremely positive results

TechnologyCustomer responseMarket share

Digital TelevisionDigital TelevisionProgress ReportProgress Report

12

Digital TelevisionDigital TelevisionCustomersCustomers

*Based on Customers at Jan. 31, 2004*Based on Customers at Jan. 31, 2004

26,000-28,00026,000-28,000

200

8,69310,000

Jan 2003 Dec 2003 Jan 2004 2004E

Penetration Rate*

12% Penetration Rate*

12%

Customer Value IndexCustomer Value Index

Overall quality

Price competitiveness

Continuance of service

Recommend to others

Overall quality

Price competitiveness

Continuance of service

Recommend to others

CVI Consistently Over 93% CVI Consistently Over 93%

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What Customers LikeWhat Customers Like

Quality digital signalQuality digital signal

Unique packaging choicesUnique packaging choices

3 simultaneous video signals3 simultaneous video signals

TV call displayTV call display

Voicemail linkVoicemail link

MTS TV PortalMTS TV Portal

Interactive programming guideInteractive programming guide

Improving Customer RetentionImproving Customer Retention

Mo

nth

ly R

even

ue

Per

Cu

sto

mer

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

$220Interactive

EntertainmentInteractive

EntertainmentVODVOD

Digital TVDigital TV

InternetInternet

TelephonyTelephony

Basic LocalEnhanced

Long DistanceWireless

Basic LocalEnhanced

Long DistanceWireless

HSIHSI

14

Service BundlesService Bundles

High SpeedHigh SpeedTVTV WirelessWireless

DistanceDistanceInternetInternetLongLong

TV/High-Speed Internet BundleTV/High-Speed Internet Bundle

TV customers with high-speed internetSeptember 30, 2003 - 44%December 31, 2003 - 49%

TV customers with high-speed internetSeptember 30, 2003 - 44%December 31, 2003 - 49%

15

Evolve Product PackagesEvolve Product Packages

Increase revenues & reduce churn

One-stop-shopping for all communications needs

Increase revenues & reduce churn

One-stop-shopping for all communications needs

Matching Investment to DemandMatching Investment to Demand

Mitigated Risk - First To MarketMitigated Risk - First To Market

Prudent ApproachPrudent Approach

Digital TelevisionDigital Television

16

Digital Television

WinnipegQ3 2003

WinnipegQ3 2003

Winnipeg TV Market DistributionWinnipeg TV Market Distribution

Cable + Cable + SatelliteSatellite3%3%

No TVNo TV

3%3%AntennaAntenna

6%6%SatelliteSatellite

9%9%

Digital Digital WirelineWireline

20%20%

CableCable

59%59%

Analog Analog

Market SizeMarket Size $100M+$100M+

EBITDA & Net Income PositiveEBITDA & Net Income Positive

Financial ProjectionsFinancial Projections

2004 Revenues2004 Revenues $12-$14 M$12-$14 M

20052005

2004 CAPEX2004 CAPEX $35 M$35 M

Digital Television

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Digital TelevisionDigital Television

20032003

2004E2004E

Network Coverage Targets*Network Coverage Targets*

42%42%

66%66%

2005E2005E 85%85%

20022002 9%9%

*Percentage of Winnipeg at Dec 31st*Percentage of Winnipeg at Dec 31st

Current InitiativesCurrent InitiativesContribute to Revenue GrowthContribute to Revenue Growth

Pay-per-viewVideo on demandMTS TV Portal

GamingLocal content offerings

Pay-per-viewVideo on demandMTS TV Portal

GamingLocal content offerings

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Local Content OfferingsLocal Content Offerings

Manitoba MooseWinnipeg's AHL team

Acquired naming rights MTS CenterHome of Manitoba Moose

MTS TV PortalAway from home Moose Games

Manitoba MooseWinnipeg's AHL team

Acquired naming rights MTS CenterHome of Manitoba Moose

MTS TV PortalAway from home Moose Games

Deliver Strong Financial PerformanceDeliver Strong Financial Performance

Strengthen Leadership PositionStrengthen Leadership Position

Capture Growing Revenue StreamCapture Growing Revenue Stream

OutlookOutlook