SASKTEL TO REDUCE RESIDENTIAL AND BUSINESS LONG DISTANCE RATES

Released on December 18, 2006

SaskTel today announced that effective January 25, 2007, long distance rates for eligible residential and business customers will be significantly reduced. Residential customers will save up to $7 per month on unlimited long distance calling while business customers will see savings of up to 1.5 cents per minute as a result of these latest rate reductions.

"SaskTel is once again demonstrating its commitment to the province of Saskatchewan by providing competitive pricing to both residential and business customers," Minister responsible for SaskTel Deb Higgins said.

"We will continue to reduce rates whenever possible while maintaining our strong reputation for delivering excellent customer service," SaskTel president and CEO Robert Watson said.

Residential and business customers will see savings on various long distance plans:

• Residential customers who subscribe to the Anytime North America unlimited long distance plan will experience a reduction from $35 to $28 per month if they have no other SaskTel services, or to as low as $18 per month with a SaskTel Bundle;

• The rate for the Evenings and Weekends Canada unlimited long distance plan will be reduced from $25 to $23 per month with no other SaskTel services, or $18 per month with a SaskTel Bundle. Customers will also be able to place unlimited calls to the United States during unlimited long distance calling hours;

• The per minute rate for the Straight Rate Sask long distance plan, and for calls outside the unlimited calling periods of the Evenings and Weekends Canada plan, will be reduced from 10 cents to seven cents per minute;

• International rates will also be reduced; and

• Business customers who subscribe to Business One Rate or Managed Long Distance Solutions will see reduced rates starting at six cents per minute to as low as 3.5 cents per minute, depending upon usage and the number of SaskTel services a customer subscribes to. This rate reduction also applies to toll-free calling.

The new long distance rates will be automatically applied for customers.

About SaskTel
Saskatchewan Telecommunications Holding Corporation (SaskTel) is the leading full service communications provider in Saskatchewan, offering competitive voice, data, dial-up and high speed Internet, entertainment and multimedia services, security, web hosting, text and messaging services, and cellular and wireless data services over its digital networks. The Corporation also provides security monitoring services through SecurTek, directory services through DirectWest, in-room communications services to the healthcare sector through Hospitality Network, telecommunications consulting service through SaskTel International and an out-of-province sales and service channel in Alberta and British Columbia. SaskTel and its wholly-owned subsidiaries have a workforce of 5,200 full-time, part-time and temporary employees. Visit SaskTel at www.sasktel.com.

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For More Information, Contact:

Michelle Englot SaskTel Regina Phone: 306-777-4476 Email: michelle.englot@sasktel.sk.ca Cell: 306-539-0691