SASKTEL REPORTS 2008 NET INCOME OF $121.4 MILLION

SaskTel today released its 2008 financial results, highlighted by a net income of $121.4 million and operating revenues of $1.14 billion, up 7.2 per cent from 2007. The performance was driven primarily by continued strong customer growth in cellular, Max^TM Entertainment Services and Internet services, partially offset by reductions in local access and long distance services.

"As SaskTel moves into its second century, it has achieved impressive financial results and a continued legacy of delivering world-class products and services to its business and residential customers in the communities it serves," Crown Corporations Minister Ken Cheveldayoff said. "The Government of Saskatchewan has a strong commitment to the Crown sector and the people of Saskatchewan can look forward to continued investment in SaskTel's infrastructure bringing improved and expanded services in 2009 and beyond."

"Our foresight in developing strategies to capture new growth revenues while retaining our existing revenue base and improving our overall productivity have allowed us to exceed our net income and revenue targets in an increasingly competitive and fully convergent industry," SaskTel President and CEO Robert Watson said.

Financial and operating highlights for SaskTel in 2008 include:

• Net Income of $121.4 million, up $37.3 million from 2007;
• SaskTel reached $1,137.8 million in revenues in 2008, an increase of $76.1 million over 2007. Strong customer growth in cellular services, Max services and Internet services contributed;
• Wireless revenues increased significantly to $350.2 million, an increase of 16.2 per cent over 2007. Total cellular accesses increased by 49,802 for a total of 502,020. The total number of wireless accesses is 510,886. The average revenue per cellular subscriber increased to $60.80, up from $57.90 as cellular customers continue to increase usage of services such as text messaging and downloadable ring tones;
• Max^TM Entertainment Services, Internet and data services revenues increased to $215 million in 2008, up $20.6 million from 2007, and grew to 70,463 Max customers;
• "Other revenues" primarily from growth initiatives increased to $158.3 million in 2008, an increase of 9.9 per cent. This increase was due to increased sales of customer premise equipment and to increased revenues from DirectWest Corporation and SecurTek Monitoring Solutions Inc.;
• Dividend of $78.9 million declared to Crown Investments Corporation (CIC) in 2008;
• In 2008, SaskTel launched a corporate-wide productivity program. SaskTel achieved $9.3 million in savings related to our Early Retirement Program (ERP) and achieved $12 million in cost efficiency savings over and above the ERP initiative;
• Industry leading debt ratio of 27.3 per cent;
• Capital expenditures were $147.5 million in 2008, down $24.7 million from 2007. Since 1987, we have invested more than $3.2 billion in our Saskatchewan network. Highlights included completing the 3rd year of NGAI, launching and upgrading EV-DO Rev A to 47 communities, and improving and expanding cellular coverage to many areas and expanding to those previously unserved including Pelican Narrows, Pinehouse Lake and Denare Beach;
• In 2008, the Government of Saskatchewan and SaskTel announced the $129 million Rural Infrastructure Program which will deliver high speed Internet to 100 per cent of Saskatchewan and improve cellular service, resulting in 98 per cent coverage;
• In 2008, SaskTel contributed $611.2 million to the Saskatchewan economy through money spent with vendors and suppliers, and the donations we made to non-profit and charitable organizations;
• In 2008, SaskTel donated more than $2.2 million to more than 1,200 non-profit and charitable organizations, community associations, venues, events and partnerships in 242 communities throughout the province;
• Through SaskTel TelCare, the employees' benevolent fund, $216,667 was donated, which is matched 50 per cent by SaskTel for a total of $325,000 to more than 90 charitable organizations;
• The SaskTel Pioneers contributed 85,942 hours of volunteer time and over $285,000 to community projects. The Pioneers won 11 TelecomPioneers awards of excellence for volunteering in 2008;
• In 2008, SaskTel met most of our Representative Workforce targets with 45 per cent of women hired or promoted into management positions, 35 aboriginal permanent hires and six permanent hires of people with disabilities;
• SaskTel was recognized by the Canadian Race Relations Foundation (CRRF) who awarded us "with distinction" for our Representative Workforce Strategy and Aboriginal participation initiative;
• In 2008, SaskTel was again recognized as one of "Canada's Top 100 Employers" by MediaCorp Canada Inc. for the 9th consecutive year and one of Saskatchewan's Top 15 Employers; and
• In 2008, we launched a corporate Greenhouse Gas (GHG) Management Plan as part of the SaskTel Eco(logical) Strategy, with a long-term goal of reducing SaskTel's GHG emissions to levels of 47,000 tonnes per year or 34 per cent fewer emissions than were emitted by the corporation in 2004, by 2020.

About SaskTel

Saskatchewan Telecommunications Holding Corporation (SaskTel) is the leading full service communications provider in Saskatchewan, with $1.14 billion in annual revenue and over 1.3 million customer connections including over 510,000 wireless accesses, 555,000 wireline network accesses, 216,000 Internet accesses and 70,000 Max^TM (TV) subscribers. SaskTel offers a wide range of communications products and services including competitive voice, data, Internet, entertainment, national security, messaging, cellular, wireless data and directory services. In addition, SaskTel International offers software solutions and project consulting in countries around the world. In 2008, SaskTel contributed over $610 million to the Saskatchewan economy through dollars spent with Saskatchewan-based suppliers and sponsorships to non-profit organizations. SaskTel and its wholly-owned subsidiaries have a workforce of approximately 5,000 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