The companies' global strategy, unveiled today at a news conference, marries the power of networking and the Internet with wireless communications. Nortel Networks, a global leader in the Wireless Internet, and HP, one of the largest and most successful providers of computing and imaging solutions, will work together to develop mobile portal solutions, wireless devices and networking solutions, and other mobile e-commerce service solutions, such as m-commerce services.

The initial offer will be a complete mobile portal solution that provides Internet access across Nortel Networks' wireless infrastructure utilizing a combination of HP's and Nortel Networks' mission critical computing infrastructure, middleware and appliance clients. This solution, targeted at the mobile professional or remote workforce, will make using the Wireless Internet easier and more effective. For example, it is designed to allow users to seamlessly roam between networks without losing their Internet connection or IP address. Additionally, it will speed up any public mobile wireless data link so that users can more effectively and practically send and receive email and attachments, conduct e-commerce transactions and surf the Web wirelessly - no cables, outlets or cords.

"HP is leading-edge when it comes to next generation Internet services and devices, and Nortel Networks is driving the migration of wireless networks to IP (Internet Protocol)," said Lloyd Carney, president, Wireless Internet, Nortel Networks. "Together, we're redefining mobility and accelerating the deployment of complete, tested, integrated solutions from the core network all the way out to the end user."

According to Carney, the global market for Wireless infrastructure is expected to reach $US 200 billion by 2003 and the market for mobile portal solutions is expected to reach $US 11 billion by 2003.

"We're driving the second wave of eBusiness by reducing costs and increasing profit margins for operators and service providers and enabling them to deliver revenue-generating wireless applications and devices at Web speed," added Carney.

"HP's experience in enabling wireless operators and enterprise customers with mission-critical data center infrastructure solutions and services gives it a unique perspective to implement the business, technology and service needs for Mobile E-services," said Sebastiano Tevarotto, vice president and general manager of HP's Network & Service Provider Business Unit. "Combining HP's Mobile E-services with Nortel Networks' Wireless Internet solutions will ensure wireless is a key enabler of the new E-services world."

The Technology

Mobile Portal Solutions: The mobile portal solutions will use HP's Wireless Application Protocol (WAP)-enabled Mobile E-services commerce platform. HP and Nortel Networks will provide a complete mobile portal architecture as well as mobile front-ends to existing Internet portals. This solution will include voice portal capability, compression technology, security, and Quality of Service (QOS) and allows for complete on-the-go access to Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), database, email and voicemail content via wireless data and voice.

Other Mobile E-services Solutions: Nortel Networks and HP are exploring a number of other wireless Internet opportunities, including complete m-commerce solutions. These solutions will allow businesses to integrate their sales, marketing and service capabilities with the Internet. Nortel Networks' Wireless eBusiness Solutions are delivered over a wide range of devices, including WAP phones, Windows* CE and Palm OS* handheld devices. HP will provide Integrated Payment Solutions (IPS) to Nortel Networks' Wireless Internet solutions to enable secure electronic transaction over wireless devices.

Wireless Device and Network Infrastructure Solutions: Nortel Networks and HP will combine Nortel Networks' 2.5 and 3G wireless infrastructure with HP PCs using Nortel Networks' e-mobility* Acceleration software and IP Mobility intelligent middleware solution which delivers content that is optimized according to the end user's location, network and device. Nortel Networks' General Packet Radio Service (GPRS) solutions are based on the widely deployed Nortel Networks Passport* and Contivity* switches. The combined technology delivers seamless multi-network, high-speed wireless Internet connections that are secure, location-based and personalized to the end users needs.

Hewlett-Packard Company - a leading global provider of computing and imaging solutions and services- is focused on making technology and its benefits accessible to individuals and businesses through simple appliances, useful e-services and an Internet infrastructure that's always on.

HP has 86,000 employees worldwide and had total revenue from continuing operations of $42.4 billion in its 1999 fiscal year. Information about HP and its products can be found on the World Wide Web at http://www.hp.com.

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.

Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the impact of price and product competition; the dependence on new product development; the impact of rapid technological and market change; the ability of Nortel Networks to make acquisitions and/or integrate the operations and technologies of acquired businesses in an effective manner; general industry and market conditions and growth rates; international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of consolidations in the telecommunications industry, the uncertainties of the Internet; stock market volatility; the ability of Nortel Networks to recruit and retain qualified employees; and the impact of increased provision of customer financing by Nortel Networks. For additional information with respect to certain of these and other factors, see the reports filed by Nortel Networks with the United States Securities and Exchange Commission. Nortel Networks disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.