In June 2004, Bell Canada paid $49 million to Emergis for: Effective May 15, 2002, we stopped consolidating Teleglobe’s financial results and started accounting for the investment at cost.  Teleglobe provided inter- national voice and data telecommunications services. It also provided retail telecommunications services through its investment in the Excel Communications group until the second  quarter of 2002. These serv- ices included long distance, paging and Internet services to residential and business customers in North America.  On December 31, 2002, after obtaining court approval, we sold all of our common and preferred shares in Teleglobe to the court-appointed monitor for a nominal amount. The sale triggered approximately $10 billion of capital losses for tax purposes. We recorded a gain of $1,042 million, relating mainly to the tax benefit from: BCI developed and operated communications companies in markets outside Canada. Its main focus was on Latin America until July 2002, when it sold its interest in Telecom Américas Ltd.  BCI held most of its invest- ments through Telecom Américas Ltd.  • the transfer of related intellectual property to  Bell Canada. • the early termination of the Bell Legacy Contract on June 30, 2004 rather than December 31, 2004 • reinstating non-capital loss carryforwards that were previously used to offset gains incurred on the transac- tions related to the disposition of Nortel common shares in 2001 • applying a portion of the capital losses against the gain on the sale of the directories business in 2002. These transactions were recorded on a net basis. The net proceeds from the sale of Emergis were $285 mil- lion (net of $22 million of selling costs and a $49 mil- lion consideration given to Emergis). The gain on  the transaction was $58 million. The operating loss includes a future income tax asset impairment charge of $56 million ($36 million after non-controlling interest), which Emergis recorded before the sale as a result of the unwinding of tax  loss utilization strategies between Emergis, 4122780 Canada Inc. (a wholly-owned subsidiary of Emergis) and Bell Canada. Emergis completed the sale of its US Health opera- tions in March 2004 for US$223 million in cash. The loss on the transaction was $87 million ($160 million after non-controlling interest and BCE Inc.’s incremen- tal goodwill), which was recorded in December 2003. Emergis was presented previously as a separate segment. Effective January 1, 2002, we started presenting the financial results of BCI as discontinued operations. They were previously presented in the BCE Ventures segment. Effective June 30, 2002, we stopped consolidating BCI’s financial results and started accounting for our investment in BCI at cost. We recorded a charge of $316 million in 2002, which represented a write- down of the investment to our estimate of its net realizable value.  BCI will be liquidated once all of its assets have been disposed of and all claims against it have been determined. A final distribution will be made to BCI’s creditors and shareholders with the approval of the court. BCI is publicly traded. BCE Inc. owns a 62.2% interest in BCI. Effective April 24, 2002, we started presenting the financial results of Teleglobe as discontinued opera- tions. They were previously presented as a separate segment. The net gain of $39 million in 2003 relates mainly to the use of available loss carryforwards that were applied against the taxes payable relating to Bell Canada’s sale of a 3.66% interest in the directories business and Aliant’s sale of Stratos Global Corporation (Stratos). The tax benefit associated with the remaining unused capital losses has not been reflected in the financial statements. Effective May 2003, we started presenting the finan- cial results of Aliant’s emerging business segment  as discontinued operations. They were previously  presented in the Bell Canada segment. Almost all of the assets of Aliant’s emerging busi- ness segment were sold at December 31, 2003. We recorded a loss of $73 million in 2002 for the write-down of our interest in Teleglobe to its net real- izable value, which we determined to be zero. This loss was in addition to the transitional goodwill impairment charge to opening retained earnings of $7,516 million as of January 1, 2002, which was required by section 3062 of the CICA Handbook. Effective December 2003, we started presenting the financial results of Aliant’s remote communications segment as discontinued operations. They were previ- ously presented in the Bell Canada segment. Aliant’s remote communica- tions segment consisted of Aliant’s 53.2% investment  in Stratos. Stratos offers Internet Protocol (IP), data and voice access services through a range of newly emerging and established technologies, including satellite and microwave, to customers in remote locations. Aliant’s emerging business segment consisted mainly  of Aliant’s investments in iMagic TV Inc., Prexar LLC and AMI Offshore Inc. iMagicTV Inc. is a software development company that provides broadband TV software and solutions to service providers around the world. Prexar LLC is an Internet services provider. AMI Offshore Inc. provides process and systems control technical services, and  contracts manufacturing solutions to offshore oil and gas and other industries. Aliant’s Emerging Business Segment Teleglobe  BCI Aliant’s Remote Communications Segment Bell Canada Enterprises  2004 Annual Report 101 • the purchase of Emergis’ Security business