KeyTech Announces Quarterly Report To Shareholders

The Board of Directors of KeyTech Limited is pleased to declare a Common Share dividend of 13 cents per share for the fourth Quarter ending March 31st 2003.

KeyTech Limited is currently in a strong capital position with the elimination of the BTC Notes in the third quarter of 2002. The Board has therefore decided to return some of the retained earnings to the Common shareholders in the form of a 1 for 10 Common Share Dividend. Each new Common Share is to be issued fully paid by way of capitalization of reserves otherwise available for distribution, on the 30th of April 2003. It is important to note that the Board has indicated that the Common Share Dividend will not be decreased from the current level of 13 cents per share subsequent to the payment of the stock dividends.

Owners of preferred shares have the opportunity to benefit from this stock dividend if they convert their preferred shares to common shares prior to the record and payment date of April 30th, 2003. Notices to the Preferred Shareholders have been sent out under a separate cover letter.

With the completion of the strategic planning process this past quarter, all Subsidiaries are now focused on key goals of revenue growth, high levels of customer satisfaction and operational efficiency. It was with the latter in mind that BTC made the decision to transfer the responsibility for overseas call operator service to the entities responsible for providing long-distance telephone service, TBI and Cable & Wireless. As a consequence, four overseas operator positions were made redundant in March. The staff leaving those positions have been provided with fair compensation packages as well as assistance from the Employee Assistance Program.

In response to the increasingly competitive telecommunications environment, our Companies are working hard to ensure that they preserve their positions in the marketplace by providing leading edge products and technological solutions to meet the needs of their customers.

BTC has initiated a new online customer account system that will allow customers to pay their bills and manage their accounts online.

Logic Communications continued to forge ahead with its offerings of advanced IP solutions such as " ViaLogic", a high-speed system that allows the staff of businesses to access their office network from home. Logic's professional consulting division and professional services team have proven to be of considerable value in developing and customizing IP communications platforms that are meeting the demands of customers and generating an additional source of revenue for the Company.

The recent prolonged outage of mainland connectivity experienced by TBI has caused Logic's management to reevaluate their provisions for network redundancy and seek alternate bandwidth capacity from Cable & Wireless. This will help to ensure a greater degree of connectivity reliability for their clients for the future.

The fourth quarter has been a very challenging one for Mobility as one might expect of the start-up of the new GSM system. Roaming Agreements have taken significantly longer to process because of the extensive testing required. Good progress has been made and it is anticipated that the system issues with overseas roaming partners will be resolved shortly. Testing in Canada has been successfully completed and the service in that country will be turned up in mid-April.

KeyTech remains in a strong financial position. The revenue trends of the year have continued. The downturn in cellular airtime revenue because of increased free airtime in consumer packages as that market matures and the decline in international interconnection fees have been offset by increased data, consulting and professional fees, voice over IP and hardware sales. Our Common Share trading price on the BSX has remained relatively stable, ranging from $9.25 - $10.00 per share.

Signed

Sheila Manderson

Chief Executive Officer