AT&T Canada Acquires Internet Strategy Business

AT&T Canada Inc., Canada’s largest facilities-based competitive provider of local and long distance, voice, data and Internet communications services, announced on June 1, 2000 that it has acquired DMC Inc., a Canadian leader in the deployment of business-focused Internet and e-business strategies. The purchase price of approximately $95 million will be satisfied by the issuance of 769,200 AT&T Canada Class B Non Voting Shares from treasury and the payment of $50 million cash, with one-half of the cash consideration held in escrow for 12 months pending attainment of specified performance targets.

DMC’s management and entire team of Internet and e-business professionals, including founder and CEO Bruno Dammizio, will remain with the company and will operate as an independent, strategic component of AT&T Canada Internet and e-Business Services.

DMC was represented by Ann Watterworth, Christopher Norton (tax), Lawrence Wilder (securities), Stuart English and Jason Bullen of Cassels Brock & Blackwell LLP. AT&T Canada Inc. was represented by Iain Scott, Gordon Baird and Greg Stone of McCarthy Tétrault with securities advice provided by Donald Gilchrist and Alexis Gosselin of Osler, Hoskin & Harcourt LLP.

Lawyer(s)

Iain C. Scott Stuart A. English Lawrence D. Wilder Jason (Jake) Bullen Ann L. Watterworth Gregory J. Stone Christopher B. Norton Donald G. Gilchrist Gordon D. Baird Alexis Gosselin