SASKTEL TABLES 1995 ANNUAL REPORT

Released on April 15, 1996

Carol Teichrob, Minister Responsible for SaskTel, has tabled the
corporation's 1995 Annual Report recording net earnings of $191.8
million.

This figure is more than double the earnings of the previous year,
$88.5 million, primarily as a result of one-time financial gains of
$114.4 million from the sale of SaskTel's investment in the LCL Cable
Communications Ltd. and $10.5 million from the sale of SaskTel's share
in Information Systems Management Corporation (ISM).

Net operating income dropped to $66.9 million. The decline occurred in
SaskTel's major subsidiary, Saskatchewan Telecommunications. This
subsidiary, which operates the basic telephone services in
Saskatchewan, saw its net income drop to $54.5 million, down from $78.2
million in 1994. The decline is largely attributable to continuing
declines in the price of long distance calling. SaskTel's average
revenue per minute of long distance calling dropped from 29 cents in
1994 to 24 cents in 1995 - a decline of 17 percent.

"Over the last year, we have responded to shrinking long distance
revenues by diversifying our business, expanding existing markets and
moving into new areas where we can apply our skills and assets
profitably," Teichrob said. "A diversified revenue base is an
important source of the financial strength that will enable us to
continue delivering quality local services."

Examples of such diversification include the continued growth of
SaskTel Mobility, the Hospitality Network and the activities of SaskTel
International.

"We are particularly proud of our venture with NST Network Services
Inc. to build hybrid fiber-coax networks for Ameritech in Chicago,
Illinois and Columbus, Ohio," Teichrob said. "While enterprises such
as the NST project are important, they do not in any way distract us
from our role as the provider of universally-accessible
telecommunications to the people of Saskatchewan.

"The market fosters consumer demand for new and better services
requiring ever more complex and expensive technologies. Our ability to
subsidize the cost of these services will be increasingly challenged as
we face more competition in all areas of our business."

Competition in long distance services was introduced in Saskatchewan in
February, 1996.

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For more information, contact:

Mark Stobbe
SaskTel General Manager, Public Affairs
Regina
Phone: (306) 777-4105