STUTTGART, Germany - BROKAT* Infosystems, one of the world's leading suppliers of software solutions for secure e-banking and eBusiness, and Nortel Networks* [NYSE/TSE:NT] have signed a global strategic relationship agreement to provide joint solutions - including BROKAT's Twister* e-services platform and Nortel Networks Periphonics* Interactive Voice Response (IVR) system - for integrating the telephone with the Internet for web-based customer self-service.

"This relationship is significant for both companies," said Stefan Ropers, vice-president, product marketing, BROKAT Infosystems AG. "As we pursued an international orientation, we looked for a worldwide market leader in the IVR system sector to be a strategic supplier for this complementary technology. Apart from a high degree of tried-and-tested technology, Nortel Networks provides excellent service around its entire range of products."

"This enables numerous business opportunities for both companies," said Jürgen Heßdörfer, sales manager, Clarify* eBusiness Applications for Nortel Networks in Germany, Switzerland and Austria. "BROKAT Twister is widely used by customers in several of our target markets. The alliance will allow us to leverage existing relationships to increase the distribution of Periphonics IVR technology in combination with the Twister platform."

Nortel Networks and BROKAT are implementing web and IVR based self-service on one platform, making it possible to apply common application logic for both service channels. This results in high flexibility and savings in the deployment and maintenance of the application.

BROKAT is among the world's leading suppliers of software for eBusiness solutions, and is the worldwide market leader in the Internet banking segment. Its key product is the modular e-Services Platform, Twister. This multi-industry software package integrates existing IT systems and applications within companies, and provides secure links to various electronic channels like the Internet and mobile communications. Twister incorporates extensive Customer Relationship Management and Enterprise Application Integration functionality. For example, the platform provides a way for companies and institutions to offer their customers services or products over the Internet and handle electronic payment traffic securely. Twister solutions are already being used by more than 2,000 customers, including Deutsche Bank, Allianz, ABN Amro, Advance Bank, debitel, Swiss Post and primus-online. BROKAT, founded in 1994, currently employs a workforce of more than 600 in 14 countries. In calendar year 1999 the Company reported revenues of DM 94 million. BROKAT Infosystems AG is headquartered in Stuttgart. Information regarding the company and its products can also be found on the Internet at www.brokat.com.

Nortel Networks is a global Internet and communications leader with capabilities spanning Optical, Wireless, Local Internet and eBusiness. 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, promising 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.

* Nortel Networks, the Nortel Networks logo, the Globemark, Clarify and Periphonics are trademarks of Nortel Networks. BROKAT and Twister are trademarks of BROKAT Infosystems AG.