As part of this relationship, IBM will establish a global consulting practice dedicated to deploying Nortel Networks' Clarify* eBusiness Applications including Clarify eFrontOffice, the first fully integrated CRM and eBusiness suite that empowers customers to interact with companies on their own terms via the medium of their choice.

This new practice is an expansion of an existing software alliance that includes global financing and DB2 support. IBM Global Financing, the world's largest information technology financier, is providing financing for hardware and software services to Nortel Networks customers seeking to deploy Clarify eFrontOffice. Additionally, Nortel Networks announced that Clarify eFrontOffice is generally available on the IBM DB2 Universal Database platform beginning immediately.

"IBM customers expect and demand scalable, high-performance technology like Nortel Networks' Clarify eFrontOffice," said David Volpe, vice-president and global CRM offering executive, IBM Global Services. "We share a vision with Nortel Networks in empowering companies with eBusiness solutions that enable greater customer loyalty and return for our clients. Together, IBM and Nortel Networks can help companies increase their return on relationship and ensure that the front office is a seamless part of their eBusiness strategy."

Building on their already renowned CRM expertise, IBM service professionals worldwide are being trained and certified for Nortel Networks' Clarify eFrontOffice implementations. IBM will install Clarify eFrontOffice in its Business Innovation centers worldwide, providing companies with a real-world environment that demonstrates the benefits of integrating all customer touch points - including phone, fax, web, e-mail, handheld and in person - and enabling web-based sales, configuration, ordering and service within a single, personalized system.

"IBM's commitment to Nortel Networks continues to grow, and our customers will benefit even further from this alliance of two eBusiness powerhouses," said Tony Zingale, president, Clarify eBusiness Applications, Nortel Networks. "This relationship gives companies the tools to focus on today's number one CEO concern - customer loyalty - and to realize greater returns from this loyalty than ever before possible."

As part of the new IBM Global Financing alliance, Nortel Networks customers have access to attractive leasing and financing for their Clarify eFrontOffice purchase as well as customization and implementation services, regardless of the type of hardware purchased or the vendor selected to provide the consulting services. IBM Global Financing enables Nortel Networks customers to implement the solutions they need while lowering their up-front expenses, preserving cash flow and working capital, and spreading out costs to fit their budgets. IBM Global Financing is the world's largest information technology financier with more than 75,000 customers.

IBM Global Services is the world's largest information technology services provider, with 1999 revenues of over US$32 billion. Services is the fastest growing part of IBM, with more than 130,000 professionals serving customers in 160 countries. IBM Global Services integrates IBM's broad range of capabilities - services, hardware, software and research - to help companies of all sizes realize the full value of information technology. For more information, visit www.ibm.com/services.

As the foundation for e-business, DB2 Universal Database is the industry's first multimedia, Web-ready relational database management system, strong enough to meet the demands of large corporations and flexible enough to serve medium-sized and small e-businesses. DB2 Universal Database combines integrated power for business intelligence, content management, enterprise information portals and e-business with industry-leading performance and reliability to drive the most demanding industry solutions. DB2 Universal Database together with Internet technology makes information easily accessible, available and secure. There are more than 40 million DB2 users from over 300,000 companies worldwide relying on IBM data management solutions. For more information please visit http://www.software.ibm.com/data.

Nortel Networks is a global leader in telephony, data, eBusiness, and wireless solutions for the Internet. The Company had 1999 U.S. GAAP revenues of US$21.3 billion and serves carrier, service provider and enterprise customers globally. Today, Nortel Networks is creating a high-performance Internet that is more reliable and faster than ever before. It is redefining the economics and quality of networking and the Internet through Unified Networks* that promise a new era of collaboration, communications and commerce. Visit us at www.nortelnetworks.com.