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September 22, 2003

Movicel Approves Nortel Networks for CDMA Wireless Data Network in Angola

LUANDA, Angola – Movicel, a cellular operator and subsidiary of Angola Telecom, has approved Nortel Networks* [NYSE/TSX: NT] to deploy CDMA2000 1X wireless network equipment in Angola for a complete voice and packet data network.

Under a new supply agreement, Nortel Networks has begun to supply a CDMA2000 1X Wireless Data Network for Movicel across the capital city of Luanda, which includes approximately 35 percent of the population of Angola. The network will enable Movicel to significantly boost network capacity to accommodate a greater number of voice calls. The network will also enable high-speed wireless data and secure Internet services like mobile Web browsing, e-mail with attachments, and other advanced wireless services.

“It is our strategy to provide high quality and advanced services to our customers, which cover the whole spectrum of their communication needs including voice, data and value-added services,” said Jose Luis De Lara, chief technical officer, Movicel. “This way, we are better positioned to offer a wider range of options to our customers that help drive new revenues to Movicel. Nortel Networks technology will help us to maximize existing spectrum and hardware resources to accommodate subscriber growth and reduce operational expenditures.”

“Nortel Networks has the necessary technical expertise directly applicable to the challenges of deploying CDMA and CDMA2000 1X, and we continue to focus on providing our wireless data solutions to the growing African and Middle Eastern market,” said Michel Clement, president, Nortel Networks France, Middle East and Africa. “This award extends our geographic footprint and means that we are now implementing 3G for 11 companies across EMEA (Europe, the Middle East and Africa).”

Wireless infrastructure being deployed for Movicel includes Nortel Networks CDMA Metro Cell radio base station (BTS), CDMA Base Station Controller (BSC), Mobile Switching Center (MSC) and PDSN (Packet Data Serving Node) products.

This is Nortel Networks third infrastructure announcement in the African region in 2003. Nortel Networks previously announced agreements with Telecom Egypt to expand its national telecoms network and with Multi-Links in Nigeria to deploy a CDMA2000 1X network.

Nortel Networks CDMA technology is designed to maximize existing customer investments and help service providers drive down capital and operating costs. Nortel Networks has designed and deployed CDMA networks over varying terrain and population densities for more than 65 operators across 17 countries, including more than 35,000 3G-ready base stations as of August 2003. Nortel Networks is the industry’s only supplier with Wireless Data Networks operating in all three advanced technologies – GSM/GPRS/EDGE, CDMA2000 and UMTS.

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:

Jay Barta
Nortel Networks
+44 1628 43 8378
jbarta@nortel.com

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