Bell Aliant announces closing of over-allotment option for Series A Preferred Shares

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

HALIFAX, March 25 2011 -- Bell Aliant Inc. ("Bell Aliant") (TSX: BA) announced today Bell Aliant Preferred Equity Inc. (the "Company") has closed the sale of an additional 1,500,000 Cumulative 5-Year Rate Reset Series A Preferred Shares (the "Series A Preferred Shares") at a price of $25.00 per Series A Preferred Share. This follows the exercise in full by the underwriters of the over-allotment option in connection with the Company's previously announced bought deal public offering of Series A Preferred Shares (the "Offering") led by BMO Capital Markets and Scotia Capital Inc. As a result of the exercise of the over-allotment option, the aggregate gross proceeds to the Company pursuant to the Offering now total $287.5 million. The Series A Preferred Shares began trading on the Toronto Stock Exchange under the symbol "BAF.PR.A" on March 15, 2011.

The Series A Preferred Shares have not been, nor will they 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™ 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