FORMUS, BELL CANADA TO BID IN AUSTRALIA

SYDNEY, Australia-Formus Communications Inc. formed a joint venture with Bell Canada
International Inc. to seek broadband wireless local multipoint distribution services spectrum in the multiple round
Australian spectrum auctions this month.

The Australian Communications Authority is auctioning the right to use
1150 megahertz of radio spectrum for 15 years in 29 regions, including the cities of Sydney, Melbourne, Brisbane,
Perth and Adelaide.

If successful, Formus said the joint venture could offer high-speed data and Internet access
services as early as June.