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September 24, 2001

Nortel Networks to Deliver Industry’s First Multi-OS Support from Single VPN Platform

BOSTON – Enterprises and service providers will soon be able to offer remote access to end-users across multiple operating systems from a single Virtual Private Network (VPN) platform – expected to be an industry first – with the latest VPN offering from Nortel Networks [NYSE/TSE: NT].

Nortel Networks has announced that Contivity* VPN will support remote access for users of Microsoft Windows, Mac OS, Linux, Solaris, IBM-AIX and HP-UX with no VPN gateway upgrades required. This will include a full, unified feature set across operating systems, enabling seamless integration of virtually all remote users.

“The majority of VPN product manufacturers have opted to offer limited client support based on the premise that the Windows market is big enough, and niche vendors can handle the opportunity for UNIX and Macintosh networks,” said Jeff Wilson, executive director, Infonetics Research. “The problem is that most environments are heterogeneous, and Mac and UNIX are gaining steam right now, not losing it.”

“In many companies, individual users with a Macintosh or UNIX operating system are excluded from simple, easy-to-use remote access to secure corporate networks,” said Scott McFeely, vice president and general manager, Intelligent Internet premises portfolio, Nortel Networks. “As a direct response to our customers’ requests, Nortel Networks is fundamentally enhancing the versatility of our Contivity VPN platform.”

In addition to enhancing VPN remote access support to include multiple operating systems, Nortel Networks Contivity VPN will also simplify network management and reduce administrative costs associated with maintaining multiple operating systems. Contivity client software for Mac OS is currently available. UNIX client software is scheduled for availability by year end.

Nortel Networks Contivity creates robust IP VPNs for enterprises and service providers building managed IP VPNs, providing an ‘all-in-one’ VPN solution for remote access and site-to-site VPN services in a highly scalable and highly available platform. With Contivity VPN, businesses can connect remote users, branch offices, suppliers and customers with the cost and performance advantages of shared IP networks at the same level of security and control as private networks.

Nortel Networks is a global leader in networking and communications solutions and infrastructure for service providers and corporations. The Company is at the forefront of transforming how the world communicates, exchanges information and profits from the high-performance Internet through capabilities spanning the Optical Internet, Wireless Internet, Intelligent Internet and IP (Internet Protocol) technologies and services. Nortel Networks does business in more than 150 countries and can be found on the Web 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 severity and duration of the industry adjustment; the sufficiency of our restructuring activities, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; fluctuations in operating results and general industry, economic and market conditions and growth rates; the ability to recruit and retain qualified employees including at the most senior management levels; fluctuations in cash flow, the level of outstanding debt and debt ratings; the ability to make acquisitions and/or integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact of price and product competition; international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization in the telecommunications industry; the dependence on new product development; the uncertainties of the Internet; the impact of the credit risks of our customers and the impact of increased provision of customer financing and commitments; stock market volatility; the entrance into an increased number of supply, turnkey, and outsourcing contracts which contain delivery, installation, and performance provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; the future success of our strategic alliances; and the adverse resolution of litigation. For additional information with respect to certain of these and other factors, see the reports filed by Nortel Networks Corporation and Nortel Networks Limited with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel Networks Corporation and Nortel Networks Limited disclaim 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 Contivity are trademarks of Nortel Networks.

Contact for Press and Analysts:

Bridget Braxton
Nortel Networks
972-685-8813
bbraxton@nortel.com

Giorgia Casnedi
Nortel Networks
44 (0) 20 7529 3132
casnedi@nortel.com