AT&T Canada announces capital markets activities.

Combination of Proposed Senior Notes and Bank Credit Facility to

Cost-Effectively and Flexibly Refinance Certain Existing Debt Instruments

and Finance Incremental Requirements

TORONTO, Sept. 9 /CNW-PRN/ - AT&T Canada Inc., Canada's largest and only national facilities-based competitive provider of local and long distance, voice, data and Internet communications services, today announced that it has three planned capital markets transactions.

First, AT&T Canada plans to issue approximately US$350 Million Senior Notes in a U.S. private placement offering.

Second, AT&T Canada plans to issue approximately C$150 Million Senior Notes in a Canadian public offering.

Lastly, AT&T Canada plans to put in place a bank facility of between C$300 and C$600 Million. This proposed facility would replace the Company's existing C$200 Million bank facility.

The Company expects to use the proceeds from these planned capital markets transactions to refinance approximately C$500 Million of AT&T Canada Long Distance Services preferred shares, subordinated debentures and shareholder loans which existed prior to the June 1, 1999 strategic combination of AT&T Canada and MetroNet Communications Corp., as well as to finance its anticipated incremental financing requirements.

About AT&T Canada: AT&T Canada is Canada's largest facilities-based competitive voice, data and Internet telecommunications provider. Created during 1999 from the merger of AT&T Canada Long Distance Services, MetroNet Communications, Netcom Canada and ACC TelEnterprises, AT&T Canada brings together the country's largest competitive local exchange carrier (CLEC), three of Canada's leading competitive Internet Service Providers (ISP), and Canada's pioneer in competitive long distance. Deploying the most advanced fibre-optic networking and digital switching platforms, AT&T Canada offers customers across the country a full suite of local and long distance voice, data and Internet services - with excellent customer service, competitive pricing, and sales and service locations from coast-to-coast. AT&T Canada Inc. is a public company with its common stock traded on the Toronto and Montreal stock exchanges under the symbol TEL.B and on the NASDAQ National Market System under the symbol ATTC. Visit AT&T Canada's web site, www.attcanada.com, for more information about the company.

Note for Investors:

This news release includes statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. For those statements, we claim the protection of the safe harbor for forward-looking statements provisions contained in the Private Securities Litigation Reform Act of 1995. The company cautions that actual performance will be affected by a number of factors, many of which are beyond the company's control, and that future events and results may vary substantially from what the company currently foresees. Discussion of the various factors that may affect future results is contained in the company's recent filings with the Securities and Exchange Commission, the Ontario Securities Commission, and SEDAR.