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Ready For RecoveryPierre Blouin, CEO

Rendez-vous Financier – Les Affaires

October 29, 2009

Proud recipient of awards from:

2008 Partner of the Year premierPARTNER

2008 Competitive Strategy Leadership

2008 Business Innovation

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Safe Harbour Notice

This presentation and associated commentary may contain certain forward-looking information. Material factors or assumptions would have been applied in drawing conclusions or making a forecast or

projection reflected in such forward information. Actual results may differ materially from a conclusion, forecast or projection in any such forward-looking information, and may be subject to significant risks. Additional information about Manitoba Telecom Services Inc. (MTS)

can be found in MTS’s filings with the Canadian securities regulatory authorities. Except as required by law, MTS disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.

Who We AreWho We Are

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MTS Allstream

Fourth-largest telecommunications company in Canada

TSX:MBT

6,000 employees – one of Canada’s Top Employers

30,000-kilometre national network

Annual revenue of $1.9 billion in 2008

1.9 million customer connections*

Assets: $2.7 billion*

Consumer Markets division (MTS)

#1 in all telecom products in Manitoba

Most profitable provider in Canadian telecom industry

Enterprise Solutions division (Allstream)

Coast-to-coast national IP network footprint

One of 3 telecom solutions providers with Bell and Telus in Canadian business markets

* As of June 30, 2009.

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History of MTS Allstream

1908 Manitoba Government creates “Manitoba Government Telephones”

Unitel Communications breaks 112-year monopoly in public long distance voice communications

Unitel changes its name to AT&T Canada Long Distance Services

1992

1996

1846 Montreal & Toronto Magnetic Telegraph Company founded

Manitoba Telecom Services Inc. debuts on the Toronto Stock Exchange (TSX) under the trading symbol of MBT – January 7

2003 AT&T Canada is rebranded Allstream

1997

2004 Manitoba Telecom Services completes acquisition of Allstream for $1.7 billion

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Over 100 Years Of Innovation

1917 First city in Canada to receive all-dial service – Brandon (MB)

First major city in North America to receive all-dial service – WinnipegNorth America’s first use of the three-digit emergency phone number – Winnipeg

1926

First Canadian city to have touch-tone service – Brandon

1956

World’s first dedicated fax network

1968

Canada’s first Multiprotocol Label Switching Internet protocol virtual private network (“MPLS IP-VPN”)

1988

1999

1908 Manitoba Government Telephones established

Launch of MTS TV in Manitoba

2009 Launch of MTS Ultimate (HD) TV and Canada’s first Whole Home PVR - Winnipeg

2003

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Foundation: Our CustomersServing for over 100 years

Total customer connections in first half 2009

1,953,8711,953,871

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A Unique Player in the Marketplace

Regional in size with national reach

Focused on the customer

Proven innovator

Nimble competitor

Consumer Markets divisionWireless

High-speed Internet

Digital TV

Wireline voice

Home security

Enterprise Solutions divisionConverged IP

Unified Communications

Voice and data connectivity

Professional and IT Services

Our ProductsOur ProductsInnovative SolutionsInnovative Solutions

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Consumer Markets division

Deepest pervasive fibre deployment in North America

Best distribution channels

Richest bundling capabilities

Operates under the MTS brand in Manitoba

Market-leader in Manitoba:

TV 34% (Greater Winnipeg)High-speed Internet 60%Home Phone 84%Wireless 60%

Full-service provider with strong customer relationships

Pervasive infrastructure and brand recognition

As of June 30, 2009.

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Wireless: Unmatched Footprint in Manitoba

97% of Manitoba population covered with service72% of Manitoba population covered with EVDO data technology HSPA data network to be completed with similar footprint by early 2011

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Broadband

Close to 100% coverage of Winnipeg

85% of Manitoba homes covered

179 communities served

32 Mbps – fastest speed of any telco in Canada

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Most Advanced TV Experience in Canada

MTS Ultimate TVMost advanced TV experience in Canada – ahead of Bell and TelusUnique Whole Home PVRHDTVFirst to deployMicrosoft “Mediaroom”Three simultaneous HDTV signals

14Strengthening leading market offering through alliances

• Enables MTS to offer larger selection of CDMA handsets to Manitoba customers on a more cost-effective basis

• Access to Sprint’s data applications• Strengthens MTS’s wireless market

leadership in Manitoba while HSPA is deployed

Alliances with Rogers Communications and Sprint Nextel

Shared HSPA network deployment represents best opportunity for long-term value creation

Parties to split network deployment and operating costs

Efficient upgrade path to LTE

HSPA creates potential to further grow data ARPU

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Enterprise Solutions division

Allstream created through the gradual amalgamation of CNCP,Unitel, MetroNet, Netcom, Montage and AT&T Canada

Operating under the Allstream brand

State-of-the art national infrastructure

Strong portfolio of innovative IP services

Main competitor in business markets across Canada

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Converged IP – Strong Growth

Customized streamlined networks

High bandwidth service

IP now one of the largest Allstream product lines, including:

Secure ConnectWavelengthVirtual Workplace

Revolutionizing communications for Canadian businesses

Reducing our customers’ environmental footprint

Enabling customers to compete, with our Unified Communications solutions

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Solid Enterprise Customer Base

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Allstream Wireless Opportunity

Able to offer customers unique wireline/wireless bundles not previously seen in Canadian enterprise market

More choice for Canadian business

Positioned to leverage wireline/wireless convergence

Allstream well-positioned to sell wireless products:

Already has enterprise wireless business applications

National sales force

Rogers roaming partner on the best Canadian and international networks

Transition to Growth ServicesTransition to Growth Services

Wireless, Broadband, Converged IP, TVWireless, Broadband, Converged IP, TV

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Continued Momentum on Growth Services Strategy

Highest wireless subscriber growth in Canada*

Wireless, high-speed Internet and digital TV revenues climbed 8.8% through 1st half/09

Continuing to focus on engaging customers in multiple service relationship

1st half/09 bundled customer growth up 5%

1st half/09 Growth

Digital TV WirelessInternet

4% 4%

7%

10%

9%

10%

Subscriber Growth Revenue Growth

*Based on company information to June 30, 2009 for Rogers Communications, Bell Canada, Telus Communications Company, and MTS Allstream.

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First Half 2009 Growth Services Revenues

47% of total revenues

Converged IP

Digital Television

Wireless

High-speed Internet

10.2%

11.9%

7.3%

9.9%

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Growth Revenue TransitionMaintaining Steady EBITDA Margins

All figures from continuing operations.

40%

2 0 0 7

44%

2 0 0 8

47%

Q2 2 0 0 9Legacy

Growth

MTS AllstreamMTS AllstreamConsumer divisionConsumer division Enterprise divisionEnterprise division

2006

2007 2008

52%

23%

34%

52%

22%

34%

51%

24%34%

2006 2007 2008 2006 2007 2008

Revenue

Q2/09

52%

20%

Q2/09

34%

Q2/09

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Our Environmental Commitment

Wireless devices diverted from the landfill

Played a key role in helping One Million Acts of Green reach its goal

Eliminated 550 tonnes of greenhouse gas emissions in 2008 alone through teleworking program

Placed oxo-biodegradable bags in retail shops

We are committed to reducing our impact on the environment, and to helping our customers, employees,

and stakeholders do the same

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Foundation: Our Employees

Hardworking and dedicated employeesare one of our greatest assets

Financial ProfileFinancial Profile

04/19/2304/19/23 26

The telecom industry has continued to grow revenues in the face of a recession, with an expected CAGR of 2.8% from 2007 to 2011

Growth of 3.2% and 2.8% is expected in 2010 and 2011, respectively

Source: Public disclosures and CIBC Research estimates.

Telecom Industry Total Revenue ($ millions)

Stable Industry with Growth Potential

$47,113$45,839$44,418$43,889

$42,229

2007A 2008A 2009E 2010E 2011E

BCE Rogers Telus Bell Aliant MTS

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The free cash flow CAGR from 2007 to 2011 is estimated to be 6.5%Telecom companies have kept healthy balance sheets, with all the companies currently around 1.5x – 2.0x leverage

Source: Public disclosures and CIBC Research estimates.Note: As of October 26, 2009.1 Free cash flow calculated as EBITDA less capital expenditures, cash taxes and interest expense. Does not include pension funding and one-time charges.

Strong Free Cash Flow and Healthy Balance Sheets

Telecom Industry Total Free Cash Flow1 ($ millions)

Telecom Industry Current Leverage (Net Debt / LTM EBITDA)

2.1x 2.1x

1.7x 1.6x1.5x

Rogers Bell Aliant TELUS MTS BCE

$5,961$6,400

$6,721$7,102 $7,666

2007A 2008A 2009E 2010E 2011E

BCE Rogers Telus Bell Aliant MTS

Telus

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40

50

60

70

80

90

100

110

120

Aug-08 Sep-08 Oct-08 Dec-08 Jan-09 Mar-09 Apr-09 Jun-09 Jul-09 Aug-09 Oct-09

Ind

ex (

10

0 =

Au

gu

st

1,

20

08

)

S&P / TSX I ndex (16.8% )

Canadian Telco I ndex (11.1% )

S&P 500 I ndex (14.2% )

Recession Proof

Telco stocks have held up nicely in light of the recent recession

LTM Relative Share Price Performance

Source: Bloomberg Financial Markets.Note: As of October 26, 2009. Telco Index excludes BCE since its performance was impacted by the failed LBO process.

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First Half 2009 Financial Results*

Revenue - $947.2 millionEBITDA - $322.5 millionFree Cash Flow - $128.6 millionEPS - $1.38

* From Continuing Operations as of June 30, 2009.

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Share Price Returns

Manitoba Telecom share price outperforming most peers over recent years

$100 invested in MBT shares on January 6, 1997 would have been worth $440.11 as of September 30, 2009

$2.5B returned to shareholders since 1997

$115$166

MTS S&P/TSX Comp

Total Return of $100 Investment

$115$129

$100$100

$160$340

$149$186

$140$313

$122$329

$155$418

$178$484

$221$422

$259$513

$284$537

$195$495

Jan6/97

Dec31/97

Dec31/98

Dec31/99

Dec31/00

Dec31/01

Dec31/02

Dec31/03

Dec31/04

Dec31/05

Dec31/06

Dec31/07

Dec31/08

You would have earned a compound annual return of 12.3% over this time

Current dividend yield one of the highest on the TSX

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Manitoba Telecom Share Price vs. Peers

Share Price Performance June 30, 2008 - October 23, 2009

MTS Telus BCES&P/TSX

CompS&P/TSXTelecom

-19.7%

-22.9%

-28.4%

-21.3%

-25.4%

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MTS TELUSBCE

39%36%

50%

Solid investment grade credit ratingsAble to access capital markets:

$75 million term loan in February$350 million in notes issued in 2009$500 million MTN program renewed for 25 months in October

Foundation: Strong Balance Sheet

As at June 30, 2009.

Credit Facilities Expected to Cover All Refinancing Requirements up to 2011

MTS Debt Ratings

BBB

BBB+

DBRS

S&P

Peer group net debt to capitalization*

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Stable Revenues and EBITDA from Continuing Operations Through Economic Downturn

467 474 476 489 479 486 480 476 483464

165 155 169 171 165 157 163 159165 171

Q1 2007 Q2 Q3 Q4 Q1 2008 Q2 Q3 Q4 Q1 2009 Q2

Revenues EBITDA

$ millions

Allstream in QuebecAllstream in Quebec

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Quebec Customer Base

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Allstream in Quebec

Over 400 employees, with offices in Montreal and Quebec City

10,000 business customers

Investment of over $38 million in the past five years to improve the high-capacity data network serving Montreal and major cities of Quebec

Offers major enterprise products including IP connectivity, unified communications and network security

Network assets of $74 million in the province

Two Quebec-based acquisitions strengthen Unified Communications solutions delivery and presence in Quebec marketplace:

Vision IP acquired on September 29, 2009, a Cisco Silver Partner in Canada

MultiNet acquired on November 7, 2007, a business with a base of over 7,000 customers, including 3,500 in Quebec

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MTS Allstream - An Investment That Delivers Value

Strong record of delivering cash to shareholders

Stock provides one of the strongest yields on the TSX

Positioned strategically for the future

Stable results through challenging economic times

Solid financial profile

Cash flows from continuing operations support dividend and operating needs

Strong balance sheet provides flexibility for business

Well PositionedWell PositionedFor our 2nd Century of OperationsFor our 2nd Century of Operations

Questions?Questions?