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News Releases
February 3, 2003

Nortel Networks Announces New Members of Technology ‘Partner’ Community

TORONTO – Nortel Networks* [NYSE/TSX: NT] announced that 11 companies joined its LINKS technology ‘partner’ community in the fourth quarter of 2002 in the drive to offer innovative technologies that complement and extend Nortel Networks product portfolio to deliver additional value to enterprises and service providers worldwide.

The new members are AePONA, Bridgewater Systems, Cap Gemini Ernst & Young, Cyantel, CPlane, HP, Mobility Networks, Nexus, Nice Systems, Telenity and TTI Telecom.

“Nortel Networks is focused on fostering a community of innovation, leveraging technology developed within the company and complementing it with innovation from other companies to deliver a complete, integrated solution which can be easily deployed by our customers,” said Al Safarikas, vice president, marketing, Nortel Networks.

AePONA offers a Parlay/Open Service Access (OSA) gateway to enable and control application access via consistent interfaces for programming applications on a wireless operator’s network. Nortel Networks uses the gateway to allow its mobile location center customers to securely deliver location information for location-based service offerings.

Bridgewater Systems provides an Authentication, Authorization and Accounting (AAA) and mediation solution to link Nortel Networks CDMA infrastructure and 802.11 wireless LAN (WLAN) platforms and enable Nortel Networks customers to offer end users one account and one consolidated bill for both CDMA and WLAN data services.

By teaming with Nortel Networks, TELECOM MEDIA NETWORKS, a global industry practice of Cap Gemini Ernst & Young, can provide service provider customers with integrated operational support system (OSS) solutions, combining industry leading technologies and consulting services to solve complex business problems.

Cyantel’s E-Z-Manage suite helps Nortel Networks wireless customers offer business-to-business location-based services to corporate and business customers. They also help Nortel Networks Mobile Location Center customers to address the consumer market with their E-Z-Track and E-Z-Mall products.

CPlane, Inc. provides service control software products to provision and deliver profitable IP services. CPlane's Traffic Optimizer enables Nortel Networks Optical Ethernet customers to build, maintain, and optimally engineer their MPLS networks for maximum service performance and value.

HP Consulting and Integration Services – combined with HP’s Integrated Service Management solution, wireless client devices, infrastructure elements, and mobile applications suite – offers Nortel Networks customers the ability to work with a single global integrator to build comprehensive solutions. HP can help Nortel Networks customers drive a reduction in the cost of bringing new, revenue-generating services to market, and improve time-to-revenue through more rapid service deployment.

Mobility Networks end-to-end solution provides carrier-class WiFi public access, addressing critical security, authentication, roaming, handover and network management issues. The flexible solution seamlessly integrates into Nortel Networks GSM, GPRS and UMTS core networks, enabling customers to deliver value-added data services by leveraging their existing business systems.

NICE Systems enables Nortel Networks customers to improve their businesses by effectively recording, storing, evaluating, and managing voice communications, call data, desktop screens and video, while enhancing the customer experience and driving increased contact center performance. The newly formed relationship in North America builds on an established relationship in Europe.

Nexus Telecom AG’s software for performance and service level management complements Nortel Networks Passport* Multiservice Switch management solutions in numerous carrier and enterprise deployments worldwide, positioning Nortel Networks customers to maximize the value of their technology investments.

Telenity’s standards-based Canvas Location Enabling Server provides Nortel Networks wireless customers with highly-scalable location information and multimedia messaging services. Telenity’s solution helps Nortel Networks Mobile Location Center customers in the areas of resource tracking and management, locating individual wireless consumers, entertainment and info-commerce.

TTI Telecom offers modular, integrated software products and services for OSS and Business Support Systems (BSS) to telecom service providers. TTI Telecom’s solutions enable Nortel Networks CDMA customers to improve the quality of existing services, streamline operations, maximize return on investment in network infrastructure and offer new services over complex networks.

In addition, MetaSolv Software extends its relationship with Nortel Networks to provide AAA policy services solutions that enable Nortel Networks customers to leverage network investments in wireless deployments to offer integrated or stand alone WLAN services.

Nortel Networks LINKS (Linking Innovative Networking Knowledge and Solutions) ‘partnership’ community focuses on product integration or interoperability testing to deliver complete, end-to-end solutions to Nortel Networks customers. By teaming with other industry leaders, Nortel Networks can better enable its service provider customers to maximize revenue through service innovation and reduce overall operational costs. For enterprise customers, Nortel Networks technology community can help enable further increases in productivity through network simplification and optimization.

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 Wireless Networks, Wireline Networks, Enterprise Networks, and Optical 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 meet financial covenants contained in our credit agreements; 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 customer financing and commitments; stock market volatility; the entrance into an increased number of supply and outsourcing contracts which contain delivery and installation 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 and Passport are trademarks of Nortel Networks.

Contact for Press and Analysts:

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

Giorgia Casnedi
Nortel Networks
+44 1628 43 3117
casnedi@nortel.com

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