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September 16, 2003
Nortel Networks to Strengthen R&D Capabilities in China
Plans Include US$200 Million Investment Over Three Years and New Beijing Campus
BEIJING – Nortel Networks* [NYSE/TSX: NT] plans to invest US$200 million over three years to strengthen its research and development (R&D) capabilities in China. By the end of 2003, the Company expects to double its number of R&D employees in China year-over-year.
Nortel Networks also plans to construct a new, 55,000-square meter campus in Beijing's Chao Yang District under a memorandum of understanding on cooperation signed with the Beijing City Government. The first phase, which will provide 27,000 square meters, is scheduled for completion by late 2004. "China is extremely important to Nortel Networks, both as a market and as a source for technology talent," said Frank Dunn, president and chief executive officer, Nortel Networks. "With our ongoing emphasis on R&D in China, we are strengthening our presence here to drive the most advanced customer network transformations on a timely basis. We expect to continue to leverage the technology and innovation we develop in China by deploying it in the global marketplace." "I am personally excited by these initiatives in China," Dunn said. "We have been a strategic ally to our customers in China for more than 30 years, and I look forward to us playing a more significant role as the country advances to the next level of telecom capabilities and services." Nortel Networks current R&D facilities in Beijing and Guangzhou will continue to play an important role alongside the new campus in developing IP (Internet Protocol)-based voice and multimedia services, third generation (3G) wireless services, next generation networking, and other leading edge technology solutions. Nortel Networks has more than 30 years of operating experience in China. Nortel Networks contract awards in China span wireless, wireline, optical and enterprise solutions. Its customers include China Telecom, China Unicom, China Netcom, China Railcom, China Mobile, and enterprises in the eGovernment, finance, education and utilities sectors. 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 impact of our asset and liability review; 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 and the Globemark are trademarks of Nortel Networks. Contact for Press and Analysts:Jolia Kua
Nortel Networks
852 2100 2198
joliakua@nortel.com
Joanne Latham
Nortel Networks
(919) 997-7841
joannel@nortel.com
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