BOSTON - Broadband wireless service providers will soon have more options for increasing the revenue potential of their most precious commodity - radio spectrum - with the latest enhancements to the Nortel Networks* [NYSE/TSE: NT] Reunion* portfolio.

Scheduled for commercial availability by year end, the enhanced Reunion broadband wireless access system will enable improved spectral efficiency and improved flexibility in base station sector provisioning. This will allow service providers to add new customers and additional traffic, expanding the revenue potential of existing base stations and spectrum.

"As a global leader in broadband wireless access deployment, Nortel Networks continues to redefine the economics of networking," said Steve Schilling, president, Access Networks, Nortel Networks. "By empowering wireless operators with a solution that provides voice, high-speed data and Internet services to even more customers per base station, we're lowering operational costs and increasing capacity to generate revenues."

To achieve this, Nortel Networks is expanding the Reunion system with the option of additional upstream channel spacing, and with enhanced Network Control Software. This can substantially increase network flexibility and scalability in the service provider's existing spectrum without requiring significant additional base station investments.

The first broadband wireless access system in commercial service, Nortel Networks Reunion portfolio closes the cost and capacity gap between more expensive, high-speed fiber trunks and lower-bandwidth copper cable solutions for small to medium-sized businesses. Nortel Networks Reunion systems provide 'first-mile' access from customer premises to public networks for high-bandwidth, carrier-grade service, using point-to-multipoint radio operating at frequencies from 24 to 42 GHz. Reunion is designed for quick, easy installation, speeding time to market and allowing service providers to realize timely return on investment.

Available using ATM (asynchronous transfer mode)-based TDMA (time division multiple access) or FDMA (frequency division multiple access) technology, Nortel Networks Reunion systems feature a modular, scalable architecture, and support guaranteed Quality of Service (QoS) for bundled voice, data and video services. Using ATM-based TDMA, Reunion provides a flexible solution for bandwidth on demand, typically more cost-effective for small businesses and single tenant buildings. For multi-tenant buildings and businesses requiring dedicated bandwidth, Nortel Networks Reunion using ATM-based FDMA provides an effective solution.

Nortel Networks is an industry leader in broadband wireless access with extensive commercial deployment experience in the Americas, Europe, Africa and the Asia Pacific region. Nortel Networks Reunion customers include Hong Kong Broadband Network, Jazztel, New Century InfoComm, NEXTLINK, Star One, Teligent, Touch America and United Communications Systems International.

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 and Reunion are trademarks of Nortel Networks.