DBRS Rates Bell Aliant Regional Communications Income Fund at STA-2 (high)

Dominion Bond Rating Service (“DBRS”) has today assigned a stability rating to Bell Aliant Regional Communications Income Fund (“Bell Aliant Income Fund” or “Company”) at STA-2 (high). The stability rating is underpinned by the strong stable cash flow from landline operations located in lower competitive markets; moderate capital expenditure needs; sufficient size and scale; geographic diversification with a contiguous network; and the Company’s reasonable financial profile (including payout ratio of 90%), and the continuing relationship with Bell Canada, which will ensure sharing of technology and use of the Bell brand. Other factors supporting the STA-2 (high) stability rating include a good market position and asset quality, albeit with average growth prospects. Please also see DBRS’s press release for debt ratings of Bell Aliant Regional Communications, Limited Partnership, dated July [10], 2006.

DBRS notes since less than 40% of Bell Aliant Income Fund’s footprint competes with cable operators, the Company remains the sole provider of some telecommunication services for these customers. Given the low population density in many of these markets, DBRS does not believe cable operators will expand their networks to these markets when taking into account the economic feasibility. Although the Company does not have direct ownership of any wireless assets, Bell Aliant Income Fund will have access to Inukshuk Wireless Inc. (a joint venture between Bell Canada and Rogers Communications Inc. to offer wireless broadband) in the markets it serves, which should mitigate potential competitive wireless broadband solutions and limit the Company’s capital expenditures.

Notwithstanding lower competitive markets, DBRS does expect some access line erosion in more competitive markets, however growth opportunities in DSL and cost synergies should be able to offset these losses and distributions to unitholders should remain stable in the near to medium term, which supports the STA-2 (high) rating. Furthermore, the Company should be in a position to realize cost synergies through its contiguous network which has sufficient size and scale.

In addition, unitholders will benefit from the Company’s 63.4% interest in Télébec, Limited Partnership and NorthernTel, Limited Partnership (together “Bell Nordiq”). Bell Nordiq’s operations have a track record of stable cash flows. In addition, this ownership further enhances the geographic diversification and scale of the Company.