Aliant Announces 2004 Results and Outlook for Year Ahead

Aliant Inc. (TSX: AIT) today
announced its 2004 results and issued its financial guidance for 2005. The
Company also reported on the results of a voluntary early retirement incentive
program that was offered to employees in the fourth quarter of 2004, and
announced a dividend increase and a normal course issuer bid.

2004 Results
"2004 was a year that included significant events for our business," said
Jay Forbes, President and CEO of Aliant. "The year was dominated by a five-
month labour disruption and the transformation that occurred in our
organization as a result. We secured a new collective agreement lasting until
2007 that provides management consistency across the unionized labour force
and the flexibility needed to respond to the rapid changes in technology and
competition."
Mr. Forbes also reported that the Company's voluntary early retirement
incentive program will reduce the workforce by almost 700 employees,
generating an estimated $40 million in annualized operating expense savings
and reducing annual labour costs in capital investments by $8 million.
Financial results for 2004 were negatively impacted by the labour
disruption, reducing revenues by an estimated $40 million and increasing
expenses by an estimated net $28 million. In addition, restructuring charges
associated with the retirement program amounted to $67 million. These were the
main contributors to revenues being down 1.2 per cent to $2.03 billion when
compared to 2003, and to net income from continuing operations for the year
being $137.0 million, down from $194.9 million, or $0.96 per share compared to
$1.35 per share in 2003.
Mr. Forbes said, "We saw evidence in our fourth quarter - particularly
through growth in our wireless and Internet segments - that we are being
successful in resuming normal business operations and regaining our momentum."
Compared to the fourth quarter last year, wireless services revenue grew
14.6 per cent, driven by subscriber growth of 9.6 per cent and an increase in
average revenue per customer of 5.8 per cent. Internet revenues grew 6.2 per
cent, driven principally by 21.1 per cent growth in the number of high-speed
subscribers.

Fourth Quarter and 2004 Year End Financial Highlights

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Three Months Twelve Months
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($millions
except per
share amounts) 2004 2003 % Change 2004 2003 % Change
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Total operating
revenue $ 506.2 $ 527.0 -3.9% $2,033.4 $2,059.1 -1.2%
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Net income from
continuing
operations $ 9.3 $ 45.4 -79.6% $ 137.0 $ 194.9 -29.7%
-------------------------------------------------------------------------
Earnings per
common share
from continuing
operations $ 0.05 $ 0.32 -84.4% $ 0.96 $ 1.35 -28.9%
-------------------------------------------------------------------------
Weighted average
number of
common shares
outstanding
(millions) 132.6 134.7 -1.6% 132.7 137.6 -3.5%
-------------------------------------------------------------------------


2005 Outlook
Today, Aliant also announced its outlook and financial guidance for 2005.
In the consumer market, Aliant will build on its existing strengths in
wireless and Internet by providing IP-television service during the second
quarter of 2005 in Halifax. This expansion into IP-television advances
Aliant's work to accelerate the development and deployment of IP-based
applications for Atlantic Canadians and further strengthens Aliant's position
as the service provider of choice for communication, information and
entertainment solutions.
The Company also announced that in 2005 it will continue to expand its
wireless digital voice network and its wireless data network (1xRTT) to 91 per
cent of the region, up from 88 per cent at year end 2004. It will also
continue to expand its broadband network to reach 79 per cent of homes, up
from 72 per cent at the end of 2004, while deepening its coverage to provide
even greater bandwidth.
In addition, to spur growth in the small-to-medium-sized business and
enterprise segments, Aliant will leverage competencies across its
telecommunications and IT businesses as it evolves to an Information and
Communications Technology (ICT) solutions provider. During the fourth quarter,
the Company integrated its sales organizations, creating one, aligned ICT
sales force, focused on capturing new growth from the ICT market.
"Our 2005 guidance reflects our confidence in our strategies, our plans
to provide the most up-to-date technology and services to our customers, and
our ongoing ability to generate significant cash flow," Mr. Forbes concluded.

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2005 Guidance Ranges
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Operating revenues $2,080 million - $2,120 million
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EPS $1.35 - $1.42
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Cash from operating activities $510 million - $560 million
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Capital investments $330 million - $370 million
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Dividend Increase
Today Aliant announced an increase of $0.08 per share to its common
dividend rate, representing a 7.3 per cent increase and bringing the annual
rate to $1.18 per share. Aliant's Board of Directors declared a common share
dividend of $0.295 per common share, payable on March 30, 2005 to shareholders
of record on March 15, 2005. Aliant's Board also declared a preferred share
dividend of $0.340625 per preferred share payable on March 31, 2005 to
shareholders of record on March 15, 2005.

Renewal of Normal Course Issuer Bid
Aliant also announced that it will file with the Toronto Stock Exchange
(TSX) a notice of intention to purchase, from time to time, up to 6,637,200 of
its issued and outstanding common shares through a Normal Course Issuer Bid
(NCIB). Shares to be purchased represent approximately 5.0 per cent of
Aliant's total issued and outstanding common shares as of January 26, 2005.
Aliant will also seek TSX approval to enable Bell Canada, Aliant's majority
shareholder, to participate on a pro-rata basis in the NCIB to the extent that
it decides to do so. Bell Canada's participation is subject to approval of its
Board of Directors. Subject to regulatory approval, under the NCIB the Company
will be able to acquire, from time to time, its common shares for cash at the
market price through the facilities of the TSX at a pace and in an amount
which will be at the Company's discretion, subject to the rules of the TSX.
The Board of Directors of Aliant believes that such purchases are in the best
interest of Aliant and a desirable use of corporate funds. It is anticipated
that, if approved, purchases of shares under the NCIB will be made during the
twelve month period commencing February 4, 2005. All common shares of Aliant
purchased pursuant to the NCIB will be cancelled.

About Aliant
From its home base in Atlantic Canada, Aliant delivers a wide variety of
innovative and traditional communications services, including local and long
distance telephony, wireless, Internet, e-commerce, interactive multimedia,
data and managed network services, to more than two million consumers and over
80,000 enterprises. Aliant complements its industry-leading telecommunications
business with strengths in information technology solutions and knowledge-
services applications. Aliant's approximately 8,200 employees build on its
100-plus year history by collaborating to deliver the highest quality of
customer service, choice and convenience. Aliant has a market capitalization
of approximately $3.8 billion.

Analyst conference call
A conference call with analysts is scheduled for January 27, 2005 at
8:30 a.m. (ET), (9:30 a.m. Atlantic, 10:00 a.m. N&L). The dial in number is
1-877-888-3490 or (416) 695-5259. Media are invited to attend in a listen
mode. The title of the call is "Aliant Fourth Quarter 2004 Financial Results."
A replay of the session can be heard between January 27 at 11:00 a.m. (ET) to
February 3 at 7:00 a.m. (ET). To access the replay, dial 1-888-509-0081.

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