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November 11, 2003

ÇBS Improves IT Management with Nortel Networks Enterprise Data Solutions

ISTANBUL, Turkey – ÇBS, Turkey’s leading dyeing company, has speeded up its local network and increased business productivity by connecting its headquarters and six regional offices using wide area network (WAN) solutions from Nortel Networks* [NYSE/TSX: NT].

The new network serves 100 employees and provides a line speed of 128 kilobits per second (kbps) in the regional offices and 512 kbps at headquarters.

"Before, it was very difficult to intervene with the servers because of a distributed structure," said Ataman Gürer, IT manager, ÇBS. "Today, we brought our servers together in a central structure. We are very satisfied that our old, slow 10 megabit speed has now reached a speed of 1 gigabit with the new fiber structure."

ÇBS completely renovated its communications infrastructure with the scope to migrate from a distributed to a central server structure in two and a half months, together with Nortel Networks 'channel partner' Isnet.

The new communications infrastructure is based on Nortel Networks gigabit technology in the local area network (LAN) backbone, including Nortel Networks BayStack* Ethernet Switches. Part of Nortel Networks enterprise data portfolio, BayStack 420-24T Ethernet Switches were placed in various points and connected using gigabit fiber to a BayStack 380-24T Switch at headquarters, providing employees with high-speed network access.

"Our old network used to interrupt production for periods of half a day," Gürer said. "Data losses resulting from line breakdowns and their compensation were a separate loss of workforce. It was truly difficult to provide service to servers in the distributed structure. The slowness of the system was still another loss."

"We migrated to the star system with the fiber cables in the LAN system we just created," Gürer said. "We started to immediately receive returns from this new installed system. Our uninterrupted working time has increased and the work processes have speeded up. Currently in the investment phase, when the ERP (enterprise resource planning) software is completed, workforce productivity will be provided over this network in its full sense and the production and profitability will increase even further."

"Projects integrating LAN and WAN, voice, data and video are critical references to achieve our 'One Network. A World of Choice.' enterprise vision," said Sinan Dumlu, director, Enterprise Solutions, Nortel Networks. "We are extremely proud to add an established and dynamic company such as ÇBS to our customer list. We also thank our 'channel partner', Isnet, for the successful project implementation."

Established in 1954, today ÇBS is established in Çayırova-GEBZE over an area of 70,000 m2 with modern, large scale manufacturing facilities and is open to the public. ÇBS has a wide manufacturing range aimed at many industries led by the construction, automotive and printing inks sectors through its modern technology and production. ÇBS has received the ISO-9001 certificate 1995 and has its production quality approved with the TS-ISO 9001 certificate to indicate the major importance they assign to quality. Principles of customer focusing, customer service and constant quality development are crucial basic values of ÇBS.

Ever since its foundation in 1995, İsnet has been involved in sales and supplying services for Nortel Networks switchboards. With the restructuring it has gone through in 2001, it is also providing services in the area of networking as well. İsnet is currently supplying services in the Digital PBX sales and maintenance, WAN, LAN, Outsourcing, Wiring, Video Conference areas with close to 40 employees and a widespread service network. Joining its broad experience in the area of voice with network expertise, Isnet is serving leading companies in Turkey with its expert staff.

BayStack is a key element of Nortel Networks 'One Network. A World of choice.' enterprise technology vision. Nortel Networks 'One Network. A World of choice.' is about raising the bar with a new level of customer and employee engagement where and how the network is accessed while offering enterprises the power of choice in deployment options through industry-leading solutions in IP Telephony, applications, data and optical networking.

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 completion of the comprehensive review and the release of financial results and issuance of restated financial statements for 2000, 2001 and 2002 and the first and second quarters of 2003; the severity and duration of the industry adjustment and the continued reductions in spending by our customers; 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; negative impacts on our gross margins; the ability to recruit and retain qualified employees; fluctuations in cash flow, the level of outstanding debt and our current debt ratings; the ability to meet the financial covenant in our credit facilities; the use of cash collateral to support our normal course business activities; the dependence on our subsidiaries for funding; the impact of our defined benefit plans and our deferred tax assets on our results of operations, cash flows and compliance with our financial covenant; the ability to 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; barriers to 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 and our ability to predict market demand for particular products; 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 generally and as a result of acceleration of the settlement date or early settlement of our purchase contracts; the impact of the New York Stock Exchange minimum listing requirements and the proposed consolidation of our common shares; the impact of supply and outsourcing contracts that 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 and intellectual property disputes. For additional information with respect to certain of these and other factors, see the most recent Form 10-Q and Form 10-K 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.

Use of the terms "partner" and "partnership" does not imply a legal partnership relationship between Nortel Networks and any other party.

*Nortel Networks, the Nortel Networks logo, the Globemark, Business Without Boundaries and Baystack are trademarks of Nortel Networks.

Contact for Press and Analysts:

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

Arzum Satır
Nortel Networks
+90 216 522 2380
asatir@netas.com.tr

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