TORONTO, Canada, February 24 /PRNewswire/ --     Iristel Inc., a leading global provider of Voice over Internet Protocol
(VoIP) services , today announced that it has been selected by MTS Allstream
to assist in converting portions of its Time-Division Multiplexing (TDM)
voice traffic to Internet Protocol (IP)-based traffic for cost-effective
routing through the MTS Allstream IP network. With Iristel's Virtual
Signalling solution, MTS Allstream can now convert its IP traffic locally and
eliminate the expense of backhauling certain portions of its traffic to the
United States.

Iristel's fully managed and integrated Virtual Signalling solution
carries SS7 TDM traffic for Canadian Incumbent (ILEC) and Competitive Local
Exchange Carriers (CLEC) without having to backhaul capacity across the
border. The Iristel solution saves carriers costly signalling and media
platform charges while maintaining the integrity of all voice media streams
and logic.

"Our goal at MTS Allstream is to serve our customers by moving data over
our advanced network effectively and efficiently. Streamlining the cost of
backhauling our traffic will help us achieve this goal," says Dave
Ballantine, Senior Vice President, Global Carrier Solutions at MTS Allstream.
"By working with an experienced Canadian carrier such as Iristel, we can cut
our traffic backhauling expenses while providing our customers with the high
quality of service they have come to expect from our IP network."

Iristel's unique Virtual Signalling solution offers a fully redundant
VoIP network conversion service that looks and feels like it is part of the
carrier's homogenous network and never leaves the local exchange carrier
cloud.

"We are honoured that a well respected and trusted carrier such as MTS
Allstream has chosen our IP conversion services for transporting
international traffic," says Samer Bishay, President and CEO of Iristel. "We
anticipate that we will be converting voice traffic that equates to more than
a billion minutes per year."

About MTS Allstream

MTS Allstream is a wholly owned subsidiary of Manitoba Telecom Services
Inc. and is one of Canada's leading national communication solutions
providers, delivering innovative products and services through the Enterprise
Solutions and Consumer Markets divisions. The Enterprise Solutions division,
which operates under the Allstream brand nationally and under the MTS
Allstream brand in Manitoba, is a leading competitor in the national business
and wholesale markets. This division offers customers a portfolio of
solutions tailored to the needs of medium and large businesses looking for
success in a world of rapidly evolving technology - Internet protocol
connectivity, unified communications, IT consulting and security services.
The Consumer Markets division leads every telecommunications market segment
in Manitoba, delivering a full suite of next generation wireless, high-speed
Internet and data, digital television and wireline voice services under the
MTS brand, as well as small business services in select markets across Canada
under the Allstream brand, and security and alarm monitoring services through
AAA Alarm Systems Ltd., an affiliate of MTS Allstream which also operates in
other western provinces. MTS Allstream's extensive national broadband fibre
optic network spans more than 24,300 kilometres, and provides international
connections through strategic alliances and interconnection agreements with
other international service providers. Manitoba Telecom Services Inc.'s
common shares are listed on The Toronto Stock Exchange (trading symbol: MBT).
For more information, please visit: http://www.mtsallstream.com.

About Iristel Inc.

Established in 1999, Iristel Inc. is a leading global provider of Voice
over Internet Protocol (VoIP) services with its headquarters located in
Toronto, Canada. The company was granted a carrier license by the Canadian
Radio-Television Commission (CRTC) in 2000. Today, Iristel also has offices
in Egypt and Romania with domestic operator licenses in Algeria, Dominica and
Romania and an additional 20 points of presence (PoPs) throughout the world.
The company offers the broadest portfolio of IP services in Canada, including
hosted IP PBX, virtual faxing, virtual roaming, and global IP trunking
products and services. More information about Iristel can be found at:
http://www.iristel.ca.

For further information:
    Media Contacts:
    Lizanne McReelis,
    Echo Communications,
    +1-416-800-0011,
    pr@iristel.com;

    Jodi Echakowitz,
    Echo Communications,
    +1-416-800-0010,
    pr@iristel.com;

    Greg Burch,
    Manager, Corporate Communications,
    MTS Allstream,
    +1-416-345-3576,
    media.relations@mtsallstream.com