Company expands local free calling area in Barrie to include calls to Toronto

TORONTO, Oct. 25 /CNW/ — Sprint Canada Inc., a subsidiary of Call-Net
Enterprises Inc., announced today that it is now offering local home and
business telephone service to three more municipalities in Ontario -- Barrie,
Markham and Richmond Hill. With this expansion, Sprint Canada facilities are
available to approximately 35% of households and businesses across Canada.

«Residents and businesses in Barrie, Markham and Richmond Hill will now
have a choice when it comes to selecting a provider for their local service,» said Bill Linton, president and chief executive officer, Sprint Canada. «In
addition, we have expanded the local calling areas of Barrie to include calls to numbers in the 416 and 647 area of Toronto. This means that our customers in Barrie will be able to call Toronto without incurring a long distance charge.»

Sprint Canada’s home and business phone service offers a comprehensive
selection of features as well as bundles including the wireless bundle. The
basic home phone service starts at $29.95 per month and includes one calling
feature. The home phone service and unlimited North American long distance
bundle is $49.90. There is no fee to change telephone companies. Customers
keep the same phone number and maintain their listing in the phone directory.

«Sprint Canada’s local service is growing at a rate of over 50 per cent
per year, as more and more Canadians become aware of our competitive prices,
our outstanding service and just how easy it is to switch,» added Linton.
«Sprint Canada is the smarter choice for savvy consumers and growing
businesses.»

To switch to Sprint Canada’s home phone service, consumers can call
1–866-JOIN-RED (1–866–564–6733) or visit the Company’s web site at
www.sprint.ca. Business users can call 1–800–496–4401.

Call-Net, primarily through its subsidiary Sprint Canada, was one of the
first companies to offer competitive telecommunication services to Canadian
consumers and businesses in 1986. Initially, the company offered long distance
services. Today, the Company provides home phone, wireless, long distance, and
IP services to households, and local, long distance, toll free, enhanced
voice, data and IP services to businesses of all sizes. Through Sprint in the
United States, Sprint Canada offers a seamless North American network to
multi-national organizations.

Sprint Canada launched its local home and business service in 1999,
greatly expanding the number of markets in 2001. As of June 30, 2004, Sprint
Canada had activated almost 260,000 local home phone service lines and over
78,000 local business line equivalents.

Call-Net Enterprises Inc. and Sprint Canada Inc.

Call-Net Enterprises Inc., (TSX: FON, FON.B) primarily through its wholly
owned subsidiary Sprint Canada Inc., is a leading Canadian integrated
communications solutions provider of home phone, wireless, long distance and
IP services to households, and local, long distance, toll free, enhanced
voice, data and IP services to businesses across Canada. Call-Net,
headquartered in Toronto, owns and operates an extensive national fibre
network, has over 151 co-locations in five major urban areas including 33
municipalities and maintains network facilities in the United States and the
United Kingdom. For more information, visit www.callnet.ca and www.sprint.ca.

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. 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.