May 4, 2010

In light of tax changes to income trusts that become applicable January 1, 2011, Regional Communications Income Fund (Bell Aliant) plans to convert from an income trust to a corporate structure.

According to the company, the conversion is expected to reduce
administrative costs associated with a more complex trust structure,
improve the comparability of Bell Aliant to its peers, and broaden the
potential investor base. Pending unitholder and other regulatory
approvals, and satisfaction of other applicable conditions, the
conversion will be effective January 1, 2011.

“Given that Bell Aliant will be subject to income taxes beginning in
2011, the existing distribution payout is not sustainable, and changes
to Bell Aliant’s payout policy are inevitable,” reads the press release.

An information pamphlet outlining the details of the conversion should
be in the mail late May 2010, with a vote on the conversion to take
place at Bell Aliant’s annual and special meeting on June 16, 2010. To
be approved, the conversion must be approved by not less than two-thirds
of the votes cast by unitholders voting in person or by proxy at the
meeting.

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