MTS Allstream wins contract with Royal & SunAlliance for managed MPLS network

(TORONTO, ON), March 12, 2007 � MTS Allstream, one of Canada�s leading national communication solutions providers, is pleased to announce that it has secured a contract to design, build, deploy and manage an MPLS network for Royal & SunAlliance, one of Canada’s leading property and casualty insurance groups.

MPLS, short for �multiprotocol label switching�, is a technology that simplifies and cost-effectively streamlines the management of advanced IP-based networks. MTS Allstream�s MPLS network will provide Royal & SunAlliance with a more robust, scalable, IP Converged network. The deployment of the MPLS infrastructure creates a networking foundation for Royal & SunAlliance to migrate cost-effectively to IP Telephony and IP Trunking solutions in the future, further improving capabilities provided to users while reducing costs and maintaining reliability.

�Royal & SunAlliance has been our valued customer for more than ten years during, which time we have developed a successful, collaborative relationship,� said John MacDonald, President, Enterprise Solutions, MTS Allstream. �Royal & SunAlliance is a top player in its industry. Today�s announcement further reinforces our position as an IP communications provider that enables leading organizations such as R&SA to meet their business requirements through our next generation technology, exceptional dependability, flexibility and customer service.�

�At Royal & SunAlliance, we are committed to ensuring that we are using leading edge technology and IT systems. With MTS Allstream managing our MPLS network, we are able to focus on growing our business by creating innovative products and services to meet the needs of our customers,� said Rowan Saunders, President & CEO, Royal & SunAlliance.

About MTS Allstream

MTS Allstream Inc. is one of Canada�s leading national communication solutions providers, delivering innovative products and services through its Consumer Markets and Enterprise Solutions divisions. Our Consumer Markets division serves small business customers nationally and residential customers in Manitoba with a full suite of wireline voice, high-speed Internet and data, next generation wireless, digital television, security and alarm monitoring services. Our Enterprise Solutions division provides national business customers with a world-class portfolio of IP-based connectivity, managed network services, and professional services. MTS Allstream’s extensive national broadband fibre optic network spans more than 24,300 kilometres, and provides international connections through strategic partnerships and interconnection agreements with other international service providers. The company markets its consumer products and services in Manitoba under the MTS brand, and its enterprise products and services nationally under the Allstream brand. MTS Allstream is a subsidiary of Manitoba Telecom Services Inc. whose common shares are listed on The Toronto Stock Exchange (trading symbol: MBT). For more information, please visit:

About Royal & SunAlliance

The Royal & SunAlliance Canada group includes Roins Financial Services Limited, Royal & Sun Alliance Insurance Company of Canada, Quebec Assurance Company, Johnson Inc., Western Assurance Company, Ascentus Insurance Ltd. and is part of Royal & Sun Alliance Insurance Group plc. The Royal & SunAlliance Canada group employs more than 2,500 people and is represented by a large network of independent brokers across the country. In 2005, the Canadian Group wrote $1.4 billion in direct premiums with assets exceeding $4.5 billion. Internationally, Royal & Sun Alliance Insurance Group plc employs about 24,000 people and transacts business in more than 130 countries with assets of approximately $50 billion.