Conversion From Aliant Inc.

On July 7, 2006, Aliant Inc. (TSX: AIT-T) underwent a conversion to an Income Trust resulting in the outstanding shares of Aliant Inc. being exchanged for units of Bell Aliant Regional Communications Income Fund (TSX - BA.UN-T). This was a "deemed disposition" which means the issuance of a T5008 by Aliant Inc. was not necessary. However, former Aliant Inc Shareholders must calculate and report a capital gain or loss on the disposition. Bell Aliant has determined that the Bell Aliant Units had a value of $33.36 per unit at the time of the disposition.