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Web Release
June 3, 2003

Synergy Says Nortel Networks Led VoIP, Packet Voice, Softswitch Markets in Q1 2003

Building on the strong momentum established in 2002 for Nortel Networks* Succession* voice over Internet Protocol (VoIP) portfolio, Nortel Networks secured the #1 global market share in Q1 2003 for several categories including shipment of packet voice ports and VoIP gateway ports, according to a recent report from Synergy Research Group.

“Nortel Networks continues to gain momentum in the Carrier Packet Voice market as reflected in Synergy’s latest market share findings,” said Jeremy Duke, president, Synergy Research Group. “Given their strategic footprint in carrier networks worldwide, Nortel Networks is in a powerful and strategic position to migrate the current telephone network to a more robust, cost-effective packet-based architecture.”

According to the Synergy report, Nortel Networks ranked #1 globally in shipments in the overall carrier packet voice category for Q1 2003 with 50.3 percent, nearly 30 percent more than the next closest vendor. Nortel Networks also secured the #1 global market share for VoIP gateway ports shipped with 44.6 percent and voice over ATM (VoATM) gateway ports shipped with 74 percent.

In the softswitch category, where Synergy Research measured by revenues, Nortel Networks was also #1 in Q1 2003 with 15.2 percent.

“Nortel Networks invested early and invested strategically in VoIP, and we are seeing the results of that now,” said Sue Spradley, president, Wireline Networks, Nortel Networks. “Nortel Networks continues to create value for its customers by leveraging its fundamental strength – the ability to build reliable networks for effective delivery of new services.”

“Our Succession portfolio is designed to position service providers to substantially reduce operational expenditures while building the foundation for new packet voice and SIP-based multimedia services that will simplify communications, facilitate collaboration, and increase mobility,” Spradley said.

Key to Nortel Networks strong showing are Succession Communication Server 2000 and Succession 2000-Compact superclass softswitches. These platforms meet all criteria for true, service provider circuit-to-packet migration, including: local, tandem and long distance capability in a single platform; full business and residential telephony service sets; regulatory features like Lawful Intercept and Number Portability; and carrier-grade reliability and scalability.

For more information, contact Ann Fuller, (613) 768-1208, afuller@nortel.com.

Web Releases are intended to provide customers, shareholders and employees with additional information, background and context on events and trends at Nortel Networks and the market as a whole. Breaking news and announcements will be communicated through news releases distributed via Business Wire.

*Nortel Networks, the Nortel Networks logo, the Globemark, Succession and Passport are trademarks of Nortel Networks.

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