On May 31, 2006, Aliant announced that Aliant Telecom Inc., as successor company to The Island Telephone Company, Limited (the "Company"), had given a conditional notice of redemption (the "Notice") to the holders of its (a) 10.60% First Mortgage Bonds, Series T (the "Series T Bonds"), (b) 11.15% First Mortgage Bonds, Series U (the "Series U Bonds"), (c) 9.77% First Mortgage Bonds, Series V (the "Series V Bonds"), and (d) 8.76% First Mortgage Bonds, Series W (the "Series W Bonds") (collectively, the "Bonds").

Today, Aliant further announced that while the Company was not able to confirm, prior to the publication of the notice in today's Globe and Mail, its expectation that the conditions to redemption stipulated in the Notice would be satisfied or waived by June 29, 2006, the Company has now received the necessary assurances to confirm its expectation that the conditions to redemption stipulated in the Notice will be satisfied or waived by June 29, 2006. Accordingly, the Bonds will be redeemed on July 4, 2006, and the redemption price per C$1,000 of the principal amount of each of the following series of Bonds is as follows:

(a) Series T Bonds:

Average Government of Canada Yield: 4.147%

Premium: 0.500%

Tender Yield 4.647%

Canada Yield (Redemption) Price: C $1,166.31

Accrued and unpaid interest: C $ 49.66

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Total Redemption Amount: C $1,215.97

(b) Series U Bonds:

Average Government of Canada Yield: 4.184%

Premium: 0.500%

Tender Yield 4.684%

Canada Yield (Redemption) Price: C $1,215.06

Accrued and unpaid interest: C $ 38.18

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Total Redemption Amount: C $1,253.24

Average Government of Canada Yield: 4.376%

Premium: 0.500%

Tender Yield 4.876%

Canada Yield (Redemption) Price: C $1,431.24

Accrued and unpaid interest: C $ 33.46

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Total Redemption Amount: C $1,464.70

(d) Series W Bonds:

Average Government of Canada Yield: 4.383%

Premium: 0.500%

Tender Yield 4.883%

Canada Yield (Redemption) Price: C $1,360.16

Accrued and unpaid interest: C $40.80

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Total Redemption Amount: C $ 1,400.96

On June 30, 2006, the Company will mail a formal notice of redemption to all registered holders of the Bonds and publish a notice in The Globe and Mail.

About Aliant

Aliant serves customers across Atlantic Canada with innovative and traditional communications services, including local and long distance telephony, wireless, Internet, e-commerce, interactive multimedia, data and managed network services. In addition to serving residential, small-to-medium sized business and enterprise customers in its home market, Aliant also serves business customers located in other parts of North America. Aliant complements its industry-leading telecommunications business with strengths in information technology solutions and knowledge-services applications. Aliant's approximately 8,400 employees build on its 100-plus year history by collaborating to deliver the highest quality of customer service, choice and convenience. Aliant has a market capitalization of approximately $4.5 billion.

On March 7, 2006, Aliant and BCE Inc. announced the creation of a new organization which will combine Aliant's wireline telecommunications operations in Atlantic Canada, information technology operation and other operations with Bell Canada's wireline telecommunications operations in its regional territories in Ontario and Quebec and its indirect 63.4 per cent interest in NorthernTel, Limited Partnership and Telebec, Limited Partnership, to form the Bell Aliant Regional Communications Income Fund. As part of the transaction, Aliant's wireless telecommunications operation and its ownership of DownEast Ltd. will be transferred to Bell Canada. The new trust, which will have 3.4 million local access lines and over 400,000 high-speed Internet subscribers in the Atlantic Provinces, Ontario and Quebec, will be headquartered in Atlantic Canada.

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For further information: Media Relations: Kelly Gallant, (902) 487-4642 or 1 866 762 6540, kelly.gallant@aliant.ca; Investor Relations: Ian Chadsey, (506) 694-2220, ian.chadsey@aliant.ca

Source: newswire