Bell Aliant files preliminary prospectus and revised 2009 financial statements and MD&A

/THIS MEDIA RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

HALIFAX, Feb. 23 2011 -- Bell Aliant Inc. ("Bell Aliant") (TSX: BA) announced today that Bell Aliant Preferred Equity Inc. has filed a preliminary prospectus with securities regulators in each of the provinces and territories of Canada for its previously announced offering of 10,000,000 Cumulative Rate Reset Preferred Shares, Series A (the "Series A Preferred Shares"). As well, in the context of filing the preliminary prospectus, the financial statements of Bell Aliant Regional Communications Holdings, Limited Partnership ("Bell Aliant Holdings LP") for the years ended December 31, 2009 and 2008, were required to be restated and re-filed as a result of the reclassification of the results of Bell Aliant's xwave business as discontinued operations.

On October 26, 2010, Bell Aliant Holdings LP announced that it had signed an asset purchase agreement under which Bell Canada would acquire its xwave business. This transaction was completed on January 1, 2011. As a result, during 2010, Bell Aliant Holdings LP retrospectively reclassified the results of the xwave business operations as discontinued operations under Canadian generally accepted accounting principles. Bell Aliant, on the recommendation of its auditors, has concluded that it is necessary to restate and re-file the audited consolidated financial statements of Bell Aliant Holdings LP for the years ended December 31, 2009 and 2008, and to amend and re-file the related Management Discussion and Analysis ("MD&A") thereon in connection with the filing of the preliminary prospectus.

These re-filings are the result of the change in accounting treatment for the xwave business and are not the result of any error in the previously filed financial statements or MD&A.

Bell Aliant Holdings LP's financial statements as previously published and filed for the years ended December 31, 2009 and 2008, and the related MD&A as previously published and filed should no longer be relied upon.

The Series A Preferred Shares have not been, nor will be, registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States or to U.S. persons absent registration or applicable exemption from the registration requirement of such Act and applicable state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification under the securities laws of any such jurisdiction.

About Bell Aliant

Bell Aliant Inc. (TSX:BA) is one of North America's largest regional communications providers and the first company in Canada to cover an entire city with fibre-to-the-home (FTTH) technology with its FibreOP(TM) services. Through its operating entities it serves customers in six Canadian provinces with innovative information, communication and technology services including voice, data, Internet, video and value-added business solutions. Bell Aliant's employees deliver the highest quality of customer service, choice and convenience. For more information, visit www.bellaliant.ca.

For further information: Alyson Queen, Media Relations, (877) 696-6700, alyson.queen@bellaliant.ca; Zeda Redden, Investor Relations, 877-487-5726, zeda.redden@bellaliant.ca

SOURCE Bell Aliant