Business: BCE, Inc. Cumulative Redeemable First Preferred Shares, Series AC, liquidation preference $25 Canadian dollars per share, redeemable at the issuer's option on 03/01/2008 and every March 1st in every fifth year thereafter at $25 Canadian dollars per share plus accrued and unpaid dividends, and with no stated maturity. <p> Cumulative distributions of the Annual Fixed Dividend Rate will be paid quarterly on 3/1, 6/1, 9/1 & 12/1 to holders of record on the record date fixed by the board prior to the payment date (NOTE: the ex-dividend date is one business day prior to the record date). The Annual Fixed Dividend Rate will be 5.08% until the first redemption date, then it will be determined on the 25th day prior to the first day of each Subsequent Fixed Rate Period the annual dividend rate for each Subsequent Fixed Rate Period. Such annual dividend rate shall not be less than 80% of the five-year Government of Canada Yield determined on the 25th day prior to the first day of each Subsequent Fixed Rate Period, resetting every 5 years thereafter on applicable fixed rate calculation date (see prospectus for more details). </p> On 03/01/2008 and every March 1st in every fifth year there after the holder will have the right to convert their BCE, Inc. Cumulative Redeemable First Preferred Shares, Series AC into BCE, Inc. Cumulative Redeemable First Preferred Shares, Series AD (Floating rate prefered) (see prospectus for more details). On the 10th day proceeding a Series AC conversion date, if either the Series AC or Series AD have fewer than 2.5 million shares, the remaining shares will automaticly convert into the other series. <p> In regard to the payment of dividends and upon liquidation, the preferred shares rank junior to the company's senior debt, equally with other First Preferred shares of the company, and senior to the other series of shares of the company. See the IPO prospectus for further information.