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October 20, 2003 –-Los Angeles, CA and Winnipeg, Canada— Federal Hill Communications, announced today that it would assist Manitoba Telecom Services Inc. (MTS) with the launch of its digital video-on-demand (VOD) service within Winnipeg by offering content consulting services and guidance. Federal Hill will advise MTS on strategy and will assist them in developing a comprehensive end-to-end content solution and internal programming division. MTS is expecting final approval from the Canadian Radio-Television and Telecommunications Commission (CRTC) for a video-on-demand-programming license. MTS, a full-service telecommunications provider will offer subscribers access to the latest on-demand Hollywood movie releases.

“Video-on-demand presents a new opportunity for traditional telcos, like MTS, to diversify and strengthen their entertainment service offerings against what is being currently offered by cable and satellite providers. By providing subscribers with an extensive selection of compelling content that not only intrigues them, but also enhances their viewing experience is the key to reducing churn, attracting new subscribers and is a new revenue source. Federal Hill Communications is pleased to be assisting MTS TV in establishing a competitive line-up of movie content for its VOD deployment,” said Bethany Gorfine, President and CEO of Federal Hill Communications.

“Being able to offer MTS TV customers a Video On Demand service will set us apart,” said Cheryl Barker, President and Chief Operating Officer of MTS Communications Inc., a subsidiary of MTS. “Our aim is to offer customers far more choice than traditional TV distributors like cable, and a Video On Demand service will bring them the best of new and classic film content right in the comfort of their own home.”

About MTS
MTS is Manitoba’s preeminent, full-service telecommunications company. Seamlessly blending innovative solutions and world-class technology, MTS connects its customers to the world. Qunara Inc., MTS’s eCommerce, eBusiness and Internet Data Centre subsidiary, provides business solutions across North America. MTS owns 40% of Bell West in partnership with Bell Canada, which owns 60%. Bell West delivers leading edge telecommunications services, including next generation IP broadband services, to businesses in Alberta and British Columbia. MTS’s common shares are listed on The Toronto Stock Exchange (trading symbol: MBT). Its Web site is located at mts.ca.

About Federal Hill Communications
Federal Hill Communications is a leading facilitator of studio negotiations for digital movie content and general entertainment programming from independent producers worldwide. Federal Hill’s programming specialists provide guidance to clients throughout the content procurement process including the acquisition, selection, negotiation and refreshing of content. Offering full-service customizable content solutions for VOD platforms, Federal Hill remains committed to meeting the content needs of diverse clientele worldwide. Federal Hill’s global client base includes cable operators, technology companies, systems integrators, telephone companies and hotels. For more information about Federal Hill Communications, please visit www.federalhill.tv.