BCE reports results of conversion of its series AI preferred shares into series AJ preferred shares

Jul 25, 2011

MONTREAL, July 25, 2011 /CNW Telbec/ - BCE Inc. (TSX, NYSE: BCE) today announced that 3,245,010 of its 14,000,000 fixed-rate Cumulative Redeemable First Preferred Shares, Series AI (series AI preferred shares) have been tendered for conversion on August 1, 2011, on a one-for-one basis, into floating-rate Cumulative Redeemable First Preferred Shares, Series AJ (series AJ preferred shares). Consequently, BCE will issue 3,245,010 new series AJ preferred shares on August 1, 2011.

The remaining series AI preferred shares will continue to be listed on The Toronto Stock Exchange under the symbol BCE.PR.I. The series AI preferred shares will pay on a quarterly basis, for the five-year period beginning on August 1, 2011, as and when declared by the Board of Directors of BCE, a fixed dividend based on an annual dividend rate of 4.15%.

The series AJ preferred shares will pay a monthly floating adjustable cash dividend for the five-year period beginning on August 1, 2011, as and when declared by the Board of Directors of BCE. The monthly floating adjustable dividend for any particular month will be calculated based on the prime rate for such month and using the Designated Percentage for such month representing the sum of the adjustment factor (based on the market price of the series AJ preferred shares in the preceding month) and the Designated Percentage for the preceding month. The series AJ preferred shares will be listed on The Toronto Stock Exchange under the symbol BCE.PR.J and will start trading at the opening of the market on August 2, 2011.

About BCE
BCE is Canada's largest communications company, providing a comprehensive and innovative suite of broadband communication services to residential and business customers under the Bell and Bell Aliant brands. Bell Media is Canada's premier multimedia company with leading assets in television, radio and digital media, including CTV, Canada's #1 television network, and the country's most-watched specialty channels.

The Bell Mental Health Initiative is a multi-year charitable program that promotes mental health across Canada via the Bell Let's Talk anti-stigma campaign and support for community care, research and workplace best practices. To learn more, please visit www.bell.ca/letstalk.

For BCE corporate information, please visit www.bce.ca. For Bell product and service information, please visit www.bell.ca. For Bell Media, please visit www.bellmedia.ca.