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August 6, 2003

Nortel Networks, Telindus Implement Communications Network at Ben Gurion Airport

LOD, Israel – Ben Gurion International Airport has deployed a Meridian* 1* PBX-enabled network from Nortel Networks* [NYSE/TSX: NT] to provide advanced IP (Internet Protocol) communications for its newly-built Terminal Three. Network integrator Telindus also participated in the deployment.

This network is now providing integrated, centrally managed communications for one of the world’s most advanced and secure airports. It supports a range of services including telephony, call center, and unified messaging. Ben Gurion expects the network to make day-to-day operations more efficient, while helping the airport to drive reduced costs, greater productivity, and improved customer service.

“Ben Gurion 2000 was one of the biggest network communications projects in Israel and the Middle East as a whole,” said Yoni Yaoz, general manager, Telindus Israel. “When deciding a complex venture of this scale, Telindus looked to a major, professional organization to handle the telephony aspect. Telindus has a close relationship with Nortel Networks, making Nortel Networks the natural choice.”

“Ben Gurion Airport is one of the largest commercial construction sites in Israel today,” said Sorin Lupu, chief executive officer, Nortel Networks Israel. “The selection of Nortel Networks places us at the center of the most trafficked place in Israel, and presents us with the ability to display our technological advantage on a daily basis.”

This was Nortel Networks second installation at Ben Gurion. Nortel Networks was the communications equipment ‘supplier of choice’ for Ben Gurion’s original Terminal One project, which was completed in 1995.

The Nortel Networks solution for Ben Gurion Terminal Three includes Nortel Networks Meridian 1 PBX, which provides the features and benefits of traditional telephony along with the latest converged network technology. It also includes Nortel Networks Optivity* Telephony Manager, an integrated suite of management tools for communications configuration, control, and analysis for enterprise systems. The network also includes Nortel Networks CallPilot* Unified Messaging solution, which brings together voice mail, e-mail and facsimile to create a ‘one stop’ personal communications management system for the airport.

With the addition of a Meridian IP trunk card for high quality voice transmission over wide area networks (WANs), the airport is also able to migrate easily to voice over IP without compromising investments or existing business practices.

Telindus Group NV (formerly Telinfo), headquartered in Belgium, is the parent company of Telindus, the leading European expert in data communications and network integration. Telindus has expertise in all aspects of modern telecommunications technology, including LAN (Local Area Network), WAN (Wide Area Network), Internet and e-networking, network access and security, VoIP (Voice over Internet Protocol), VPN (Virtual Private Network), fixed and mobile communications. Telindus operates sixty branches in seventeen countries and also has an extensive network of representatives in Europe, South East Asia, Latin-America, Africa and the Middle East. Telindus counts more than sixty operators and an eminent range of financial, governmental and European institutions among its clients.

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, Optivity and CallPilot 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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