SASKTEL ANNOUNCES NET INCOME OF $85 MILLION IN 2003

Released on April 22, 2004

"SaskTel's continued success when the telecom industry has experienced great upheaval is a testament to a company that had the foresight to diversify its business and generate new revenue streams," Minister Responsible for SaskTel Maynard Sonntag said. "SaskTel is committed to maintaining a financially sound revenue base that allows the company to return benefits to its customers and the province."

"In today's competitive communications market, we are extremely pleased with the financial success achieved in 2003," SaskTel Chief Financial Officer Randy Stephanson said. "SaskTel continues to grow and re-invent its business to remain Saskatchewan's leading communications company. If SaskTel would have stuck to its traditional lines of business, we would not have had the financial resources available to continue expanding high speed internet and digital cellular to the extent that we have today."

Other financial and operating highlights for SaskTel in 2003 include:

· SaskTel has grown its revenues to $899.4 million in 2003, from $574.5 million in 1990, despite a reduction in long distance revenues of more than $240 million per year. In 2003, only 44 per cent of SaskTel's revenues directly resulted from local and long distance services, compared to 91 per cent in 1990.

· A further example of SaskTel's commitment to Saskatchewan is the investment of $127.7 million in capital spending, reflecting a continued focus on growth and diversification initiatives such as Max™ Interactive services, high speed internet, and digital cellular expansion.

· A dividend of $76.6 million was paid to the Crown Investments Corporation (CIC) in 2003, for a total of $803 million in the last 14 years.

· SaskTel continues to see positive results from its Operational Efficiency Program, with a goal of achieving $60 million in annualized savings by the end of 2003. In 2003, the program generated cost savings of $10 million, and the Corporation achieved its overall goal.

· Debt ratio was 38.8 per cent, down from 72.2 per cent as of December 31st, 1990.

· For the fourth straight year, SaskTel was recognized as one of "Canada's Top 100 Employers" by MediaCorp Canada Inc. and SaskTel made the Globe & Mail's 2004 list of "The Fifty Best Employers in Canada."

· 114 additional Saskatchewan communities received SaskTel High Speed Internet service, for a total of 237 communities. The corporation remains Saskatchewan's number one internet service provider with high speed internet access currently available to 75 per cent of the population, and an overall market share of approximately 70 per cent.

· In 2003, SaskTel Mobility invested $31.4 million in capital, with the majority used for province-wide deployment of 1xRTT, a next generation digital packet data network. Also, SaskTel Mobility continued to aggressively expand its digital network with the deployment of 63 new digital sites, 8 of them providing cellular coverage to areas with no previous cellular coverage.

· Another way SaskTel supports the provincial economy is by maximizing the Saskatchewan content of goods and services purchased. In 2003, SaskTel spent $215 million on materials and services from over 4,100 Saskatchewan suppliers.

SaskTel employs over 3800 people in over 50 Saskatchewan communities and is the leading full service communications company in Saskatchewan. It offers complete wireline, wireless, internet and e-business solutions over a state-of-the-art, digital network. SaskTel maintains investments in companies that provide a variety of products and services, and partners with more than 140 Saskatchewan businesses. In 2003, SaskTel donated $1.7 million to more than 1,570 not-for-profit organizations, and spent more than $215 million on materials and services from over 4,100 Saskatchewan suppliers. Visit SaskTel at www.sasktel.com.

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For More Information, Contact:

Michelle Englot SaskTel Corporate Affairs Regina Phone: (306)777-4476