"We are beginning to implement the third generation of wireless networks," said Clarence Chandran, president, Service Provider and Carrier Group, Nortel Networks. " Previous generations were characterized by an 'iron triangle' of terminals, applications and infrastructure. The third generation will see a coming together of terrestrial networks and wireless networks with new service enabling capabilities. "Wings of Light" will break the 'iron triangle' and set service providers on the road to profit from new business models and services."

"Wings of Light" enables IP-based services to be delivered over the air and leverages the power of the high-performance, Optical Internet. Nortel Networks high performance Internet management system for services and commerce, Preside*, will enable new services to be managed and provisioned profitably. Through this strategy, Nortel Networks will provide cost-effective, end-to-end 3G Wireless Internet solutions spanningLocal Internet, Optical Internet, wide-area wireless access, network management, and enterprise voice and data services.

Launches New Products For Wireless Internet
In a related announcement, Nortel Networks announced two new products: Nortel Networks e-mobility* Acceleration software and IP mobility solution. E-mobility Acceleration software will enable mobile office applications, such as access to corporate Intranets, e-mail and Web browsing, at speeds up to 25 times greater than other wireless data solutions available today. IP Mobility solution will provide secure, anywhere, anytime Internet or Intranet access, regardless of location, network or device using IP.

More information on these new products and "Wings of Light" is available at www.nortelnetworks.com/pressconf061900.

In April 2000, Herschel Shosteck Associates ranked Nortel Networks #1 among major vendors for its next-generation wireless telecommunications infrastructure strategy. Nortel Networks was also ranked #1 in Wireless Internet by the Yankee Group in 1999.

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.