PUC gets out of telecommunications business

NEWS RELEASE

ONTERA

************************* Ontera to expand service in Sault Ste. Marie

Ontera (O.N.Tel. Inc.) announced today that it has purchased the telecommunication assets of PUC Telecom Inc.

This purchase was born out of a joint venture between the two companies.

Since 2001, Ontera and PUC Telecom Inc. have collaborated to provide telecommunications services to Sault Ste. Marie and the Algoma region.

In the joint venture, PUC Telecom Inc. provided the fibre optic network within the city of Sault Ste. Marie, and Ontera provided connections to its network throughout the Algoma District, Northeastern Ontario and to Toronto.

“Consistent with our strategic vision, Ontera is now better positioned to strengthen our presence in Sault Ste. Marie,” stated Amedeo Bernardi, vice president and general manager of Ontera. “We plan on continuing to provide superior service to our existing customers, identifying opportunities to grow our customer base, and providing market leading telecommunications services and solutions to the area and beyond.”

Paul Goulet, CEO and president of Ontera’s parent company, Ontario Northland, stated, “We are very proud and excited to be increasing our presence in the Algoma region.”

Brian Curran, president and CEO of PUC Inc., stated: “PUC Telecom was created to bring competitive high-speed broadband telecommunication service to Sault Ste. Marie. Over the past 10 years, PUC Telecom, in partnership with Ontera, fulfilled that mandate and was a successful telecommunications provider. We believe that the time is appropriate for us to concentrate on our other core operations in the energy and water sectors. We expect that our Telecom customers will continue to receive excellent service with Ontera.”

Facts

- There is approximately 120 km of fibre in the city of Sault Ste. Marie

- Ontera provides telecommunication service to 30,000 Northern Ontario customers in a territory spanning 200,000 square km. *************************