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March 25, 2002

Connex Deploys Nortel Networks Packetized Voice, Data Transport Network in Romania

Builds Foundation for Future Delivery of 3G Wireless Services; Reduces Capex, Opex

BUCHAREST, Romania – Nortel Networks* [NYSE/TSE: NT] has supplied Connex* with a cost-effective, converged packet voice and data network based on Nortel Networks industry-leading softswitches and multiservice switches. The newly-deployed network supports Connex' 2G wireless network and enables a smooth future migration to 3G services. Connex is owned by Telesystem International Wireless and Vodafone.

As part of the deployment, Connex will become the first service provider to leverage G729, an internationally accepted voice compression standard, in a wireless network. The compression enables an eight-fold reduction in bandwidth requirements, while maintaining voice quality by reducing the bandwidth required for voice from 64 kilobits per second (kbps) to 8 kbps. Connex has also deployed Nortel Networks Succession* Communication Server 2000 for the first time in a live 2G wireless network.

"Nortel Networks has supplied us with the technology that will mean Connex will be better placed to deploy new services from current 2G networks through to future 2.5 and 3G networks," said Vishant Vora, chief technology officer, Connex.

"This is another example of Nortel Networks working very closely with the Vodafone Group," said Brian Day, vice president, Next Generation Products, Nortel Networks. "Our solutions are enabling us to bring significant cost reductions to Connex and to all our customers by providing smooth, evergreen evolution to next generation services."

Connex deployed Nortel Networks Succession Communication Server 2000, a softswitch that provides call control for live voice traffic across the core of Connex’ multi-service backbone. This high-capacity transit layer will reduce the number of Mobile Switching Centres required by Connex, leading to further capital expenditure savings. In addition, Connex deployed Nortel Networks Passport* 15000 Multiservice Switch and Passport Packet Voice Gateway.

Succession Communication Server 2000 and Passport are key elements of Nortel Networks comprehensive voice over IP portfolio, which is designed to transform today’s networks into highly-reliable packet networks for delivery of voice, video and data services.

Connex now joins other Vodafone associates and operating companies in owning and running a multiservice backbone based on Passport, including Vodafone D2 in Germany, Vodafone Spain, Vodafone New Zealand, and Vodafone Portugal. Passport positions operators to roll out new IP data services, as well as to offer existing voice services.

Connex is the registered trademark of MobiFon S.A., the company that launched the first GSM network in Romania, on April 15, 1997. Connex leads the mobile communications market in Romania with 2,003,600 GSM customers on December 31, 2001 and continues to be the most important Internet provider on the Romanian market, having over 150,000 XNET users at the end of 2001. The Connex network covers 95 percent of the Romanian population and offers roaming services in 90 countries/areas, through 203 operators. The main shareholders of Connex are two world leaders of the market of mobile communication services: Telesystem International Wireless (TIW) and Vodafone. For more information about Connex, visit www.connex.ro.

Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Metro and Enterprise Networks, Wireless Networks and Optical Long Haul Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks 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; 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 with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, 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, Succession and Passport are trademarks of Nortel Networks. Connex is a trademark of MobiFon S.A.

Contact for Press and Analysts:

Claire Cranton
Nortel Networks
44 1628 617178
cranton@nortel.com

Ann Fuller
Nortel Networks
613 768 1208
afuller@nortel.com

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