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February 13, 2003

Gwent Healthcare Deploys Converged IP Network from Nortel Networks

Welsh NHS Trust Turns to Technology to Address Healthcare Needs of Over 600,000 People

LONDON – Gwent Healthcare, one of the largest NHS Trusts in Wales, has deployed a converged IP (Internet Protocol) voice and data communications network from Nortel Networks* [NYSE/TSX: NT] to provide improved and increased medical services to over 600,000 people. The new solution, deployed in conjunction with channel ‘partners’ ITS Technology Services and BT, has the flexibility to incorporate the latest medical technologies for the benefit of NHS Trust patients.

“For me, Nortel Networks certainly had the voice and data strategy we were looking for,” said Andrew Bond, telecommunications manager, Gwent Healthcare NHS Trust “Our objective was to provide a reliable network that would ensure our patients receive high quality healthcare services at a reasonable cost. With Nortel Networks experience and know how, I believe we have selected the right vendor.”

NHS Trust evolved its network to offer IP Telephony by leveraging its previous technology investment in Nortel Networks Meridian* 1* IP-enabled PBX. With the addition of a Meridian IP Trunk card for high-quality voice transmission, Gwent was able to migrate to IP Telephony easily without compromising prior investments.

Gwent delivers healthcare services through its three main hospitals in Newport, Abergavenny and Caerphilly, and is supported by 20 community hospitals, health centres and clinics, and extensive mental and learning disabilities centres around Wales. For its branch locations, Gwent deployed Nortel Networks Business Communications Manager (BCM), which integrates voice over IP and quality of service (QoS) data routing capabilities into a single, cost-effective solution.

“We recommended Nortel Networks because the products are engineered well,” said Andy McCathie, business development director, ITS Technology Services “They are reliable, the quality of software and hardware is exceptional, and the support we get from Nortel Networks is excellent. The bottom line is, I feel confident that, with Nortel Networks converged solutions, my customers will get a good return on their investment.”

To upgrade to a converged environment and support IP Telephony feature-rich applications, Gwent NHS Trust deployed Nortel Networks enterprise data network, including Nortel Networks BayStack* Ethernet switching and Nortel Networks Passport* multiservice switching. Nortel Networks Optivity* network management and Optivity telephone manager were also installed to provide unified system management.

“This new, converged voice and data solution will place Gwent NHS Trust at the forefront of communications technology,” said Peter Kelly, president, Enterprise Networks, Nortel Networks EMEA (Europe, Middle East and Africa). “The IP Telephony enabled network has enabled the Trust to connect more efficiently to its branch offices, improving productivity while reducing costs. Most important of all, it has positioned us to provide a life-critical solution that benefits over 600,000 patients.”

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, Meridian, Meridian 1, BayStack and Optivity are trademarks of Nortel Networks.

Contact for Press and Analysts:

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

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