May 31, 2002

News Release: Criticizes CRTC Ruling As Failing To Achieve Government's Goal - For Competitive Local Services

AT&T CANADA CORP ("TEL.B-T;ATTC-Q")
AT&T Canada Inc., Canada's largest facilities-based competitor, issued the following statement by Vice Chairman & CEO John McLennan in response to the ruling by the CRTC:

"Today's CRTC ruling fails to achieve the Federal government's stated policy goal of a competitive telecom industry. The regulator appears to have fundamentally misjudged the reality of the current state of competition in the Canadian telecom industry. This is a disappointing decision for competition. It is a disappointing decision for consumers and customers who would benefit from a more competitive environment in local service. And it is a disappointing decision for AT&T Canada, which is doing everything in its power to help establish a strong competitive position for itself and its customers. "From a business perspective, this ruling represents a marginal improvement over the status quo as it fails to adequately address the insurmountable cost advantage enjoyed by the former monopolies over new entrant competitors. By failing to achieve a level playing field, the CRTC's decision preserves an inequitable marketplace that denies Canadian telecom customers the full benefits of true competition.

"Accordingly, we are reviewing the decision in detail and will explore all options available to us with respect to this decision, including a possible appeal. After undertaking a thorough evaluation of the ruling, as it now stands, we will determine its impact on our business plan.

"As previously indicated, we will then assess our capital structure to ensure that it provides the necessary liquidity and flexibility for AT&T Canada to grow as a profitable and effective competitor. We expect to update all of our stakeholders on the results of this review by the time of our Annual General Meeting on June 18th."

About the company: AT&T Canada is the country's largest national competitive broadband business services provider and competitive local exchange carrier, and a leader in Internet and E-Business Solutions. With over 18,700 route kilometers of local and long haul broadband fiber optic network, world class data, Internet, web hosting and e-business enabling capabilities, AT&T Canada provides a full range of integrated communications products and services to help Canadian businesses communicate locally, nationally and globally. AT&T Canada Inc. is a public company with its stock traded on the Toronto Stock Exchange 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. TEL: (416) 345-2227 Media: Ian Dale Email: This email address is being protected from spambots. You need JavaScript enabled to view it. TEL: (416) 345-2342 May Chiarot Email: This email address is being protected from spambots. You need JavaScript enabled to view it. TEL: (416) 345-3125 Investors and Analysts: Brock Robertson Email: This email address is being protected from spambots. You need JavaScript enabled to view it. TEL: (416) 345-2326 Dan Coombes Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

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