Bell Canada to make $750 million voluntary pension contribution

       Bell Canada to make $750 million voluntary pension contribution

PR Newswire

MONTREAL, Dec. 11, 2012

MONTREAL, Dec. 11, 2012 /PRNewswire/ - BCE Inc. (TSX: BCE) (NYSE: BCE),
Canada's largest communications company, today announced plans to apply $750
million of its year-end 2012 cash balance towards a voluntary contribution to
Bell Canada's defined benefit pension plan to further improve the funded
status of the plan and reduce the amount of Bell's future pension obligation.

The voluntary contribution will be funded from cash on hand at the end of
2012. As this pension pre-payment is fully tax deductible, cash tax savings of
approximately $200 million will be realized early in 2013. Bell's net pension
plan financing cost will also benefit from the stronger valuation position of
the plan, contributing to higher annual net earnings of approximately $0.02
per share beginning in 2013.

"Accelerating the funding of Bell's future pension obligation is an efficient
use of our cash given the backdrop of a persistently low interest rate
environment," said Siim Vanaselja, Chief Financial Officer of BCE and Bell
Canada. "With this contribution, which preserves the pension plan's funded
status at a high level, we expect Bell's normal pension funding and cash
income taxes for 2013 to be maintained at a similar level to 2012. This action
both de-risks the pension plan and improves Bell's longer term financial
flexibility to enhance returns to our shareholders through reduced future
pension funding requirements and expense."

Updated 2012 financial outlook

As a result of the $750 million voluntary pension contribution, BCE updates
its financial guidance for 2012 as follows:

                                                            
                                     February 9     August 8       Current
2012 Guidance                         Guidance      Guidance       Outlook
                                                                   
Bell (i)                                                            
Revenue Growth                        3% - 5%       Lower end      On track
EBITDA Growth                         2% - 4%      Higher end      On track
Capital Intensity                       ≤16%          ~16%         On track
                                                                   
BCE                                                                 
Adjusted EPS (ii)                  $3.13 - $3.18  $3.15 - $3.20    On track
Free Cash Flow (iii)                                   
 - Before voluntary pension       $2.35B - $2.5B   No change      On track
  contribution
 -After voluntary pension             n.a.          n.a.      $1.6B - $1.75B
  contribution

(i)  Bell's 2012 financial guidance for revenue, EBITDA and capital intensity
      is exclusive of Bell Aliant.
(ii) EPS before severance, acquisition and other costs and net gains/losses
      on investments.
(iii) Free cash flow before common share dividends and including dividends
      from BellAliant.

BCE will report its fourth-quarter 2012 results and provide its 2013 financial
outlook on February 7, 2013.

About BCE
BCE is Canada's largest communications company, providing a comprehensive and
innovative suite of broadband wireless and wireline communication services to
residential and business customers under the Bell and Bell Aliant brands. Bell
Media is Canada's premier multimedia company with leading assets in
television, radio and digital media, including CTV, Canada's leading
television network, and the country's most-watched specialty channels.

The Bell Mental Health Initiative is a multi-year charitable program that
promotes mental health across Canada via the Bell Let's Talk anti-stigma
campaign and support for community care, research and workplace best
practices. To learn more, please visit Bell.ca/LetsTalk. For BCE corporate
information, please visit BCE.ca. For Bell product and service information,
please visit Bell.ca. For Bell Media, please visit BellMedia.ca.

Caution Concerning Forward-Looking Statements
Certain statements made in this news release, including, but not limited to,
statements relating to our 2012 financial guidance (including revenues,
EBITDA, capital intensity, Adjusted EPS and free cash flow), expected levels
of normal pension funding and cash income taxes for 2013, and other statements
that are not historical facts, are forward-looking. Forward-looking statements
may include words such as aim, anticipate, assumption, believe, could, expect,
goal, guidance, intend, may, objective, outlook, plan, project, seek, should,
strategy, strive, target and will. All such forward-looking statements are
made pursuant to the "safe harbour" provisions of applicable Canadian
securities laws and of the United States Private Securities Litigation Reform
Act of 1995.

Forward-looking statements, by their very nature, are subject to inherent
risks and uncertainties and are based on several assumptions, both general and
specific, which give rise to the possibility that actual results or events
could differ materially from our expectations expressed in or implied by such
forward-looking statements. As a result, we cannot guarantee that any
forward-looking statement will materialize and you are cautioned not to place
undue reliance on these forward-looking statements. The forward-looking
statements contained in this news release describe our expectations at
December 11, 2012 and, accordingly, are subject to change after such date.
Except as may be required by Canadian securities laws, we do not undertake any
obligation to update or revise any forward-looking statements contained in
this news release, whether as a result of new information, future events or
otherwise. Except as otherwise indicated by BCE, forward-looking statements do
not reflect the potential impact of any non-recurring or other special items
or of any dispositions, monetizations, mergers, acquisitions, other business
combinations or other transactions that may be announced or that may occur
after December 11, 2012. The financial impact of these transactions and
non-recurring and other special items can be complex and depends on the facts
particular to each of them. We therefore cannot describe the expected impact
in a meaningful way or in the same way we present known risks affecting our
business. Forward-looking statements are presented for the purpose of
providing information about management's current expectations and plans and
allowing investors and others to obtain a better understanding of our
anticipated operating environment. Readers are cautioned that such information
may not be appropriate for other purposes.

We encourage investors to also read BCE's 2011 Annual MD&A dated March 8, 2012
(included in the BCE 2011 Annual Report), BCE's 2012 First Quarter MD&A dated
May 2, 2012, BCE's 2012 Second Quarter MD&A dated August 7, 2012 and BCE's
2012 Third Quarter MD&A dated October 31, 2012, for additional information
with respect to certain of these and other assumptions and risks, filed by BCE
with the Canadian securities commissions (available at www.sedar.com) and with
the U.S. Securities and Exchange Commission (available at www.sec.gov). These
documents are also available on BCE's website at www.bce.ca.



SOURCE BELL CANADA

Contact:

Media inquiries:
Jean Charles Robillard
Bell Communications
(514) 870-4739
jean_charles.robillard@bell.ca

Investor inquiries:
Thane Fotopoulos
BCE Investor Relations
(514) 870-4619
thane.fotopoulos@bell.ca
 
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