AT&T Canada Sees Improved Earnings

TORONTO -- "AT&T Canada is taking the appropriate strategic initiatives to position itself to be a growing, profitable, and strong competitor in the Canadian telecommunications industry over the long-term," John McLennan, Vice-Chairman & CEO, today reported to shareholders at the company's Annual General Meeting. Mr. McLennan outlined that the process the company is now undertaking consists of building the company's operating efficiencies in those businesses in which the company believes it can be most successful; ensuring that AT&T Canada has the right capital structure in place to support its strong operating base; and also aggressively working to achieve a sustainable competitive environment for the industry in Canada. "Despite the very challenging business environment of the past three years. AT&T Canada has been able to grow its EBITDA, and we expect that EBITDA in 2002 will exceed the 2001 levels of $121 million," Mr. McLennan told shareholders. AT&T Canada also reported that all twelve nominees were elected to AT&T Canada's Board of Directors at the Annual General Meeting. Accordingly, AT&T Canada's Board of Directors consists of the following members: Purdy Crawford (Chairman) Andre Bureau, Steven Chisholm, Lisa de Wilde, Marc Fortier, Stephen Halperin, Alan Horn, Phillip Ladouceur, John McLennan, James Meenan, David Miller and Craig Young. All directors will hold office hold until the next Annual General Meeting of Shareholders, or until their respective successors are elected or appointed. In addition, the appointment of KPMG LLP as auditors of the corporation was approved. AT&T Canada Inc.