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August 31, 2004

UGAP Selects CS Communication & Systèmes to Provide Gigabit Ethernet Solutions from Nortel Networks to Local Communities

French Public Purchasing Authority Now Offers Nortel Networks LAN Solutions, CS Services

PARIS – The French Public Purchasing Authority ‘L'Union des Groupements d'Achats Publics’ (UGAP) has signed an agreement with CS Communication & Systèmes to include local area network (LAN) layer 2-3 switching solutions from Nortel Networks* [NYSE/TSX: NT] and related services in its tendering procedures for public purchasers.

UGAP is the sole supplier for French state and public authorities. CS Communication & Systèmes is a Nortel Networks ‘Channel Partner.’

UGAP has listed layer 2-3 LAN switching products from Nortel Networks under its tendering category for network and communication upgrades and new systems. Under the new agreement, UGAP will purchase at least 9 million euros (approximately US$7.3 million) and as much as 36 million euros (approximately US$29 million) in equipment and services within three years.

With its 31 local sales agencies, UGAP handles all administrative and legal aspects of calls for tender, ensuring adherence to regulations inherent to French public markets. As a result, purchasing procedures are simple, quick and efficient. Selected products and services are available immediately at competitive prices thanks to UGAP’s purchasing power.

“A high-level request for proposal and well-defined awarding criteria, such as price, technical value, operational cost and delivery times, have generated real competition under excellent conditions,” said Guy-Noël Noguera, purchasing manager, Information Technology, UGAP. “The contract with CS will enable local government and public authorities and organisations to upgrade their data network to Gigabit Ethernet using Nortel Networks solutions while sticking to their agreed budgets.”

“This is significant for Nortel Networks and CS Communication & Systèmes because it allows us to strengthen our presence in the French public sector,” Thierry Liberato, LAN solutions marketing for Nortel Networks in France. “Through this tendering process, Nortel Networks can help bring efficient and innovative LAN infrastructures to government agencies, which in turn can impact how ordinary citizens communicate with their local authorities.”

“The French government can now access a comprehensive range of LAN solutions,” said Claude Lemaire, network services manager, CS Communication & Systèmes. “Thanks to our relationship with Nortel Networks, we will be able to equip every public organization with cutting-edge LAN technologies and thus allow them to move toward Gigabit Ethernet quickly and efficiently.”

The UGAP portfolio ranges from simple, stackable switches up to core network backbones, thus enabling a wide range of solutions for all types of deployment – from small council offices to major public facilities.

Nortel Networks products now listed in the UGAP catalogue include:
  • Nortel Networks Passport* 8600: Layer 3 Ethernet routing switch designed to meet maximum availability, performance and integration requirements of new business applications. This product is supplied in the form of a rack with a very high fault tolerance, providing optimal availability on the enterprise market.
  • Nortel Networks Passport* 1600: Layer 3 routing switch with 10/100 Mbps Ethernet connectivity provides fast access to company servers, meets higher performance levels required for inter-VLAN traffic, and handles all types of traffic loads, while also managing the latency periods required for new applications.
  • Nortel Networks Baystack* 470: Stackable 10/100 Mbps Ethernet layer 2 switch, performs conventional switching functions. These units provide unique stacking and backup functions, with a very high Quality of Service.

All Nortel Networks products and solutions in the UGAP catalogue are implemented with corresponding maintenance services provided by CS. These services include telephone ‘hotline’ assistance, software package updates and monitoring, hardware and software maintenance for both network and services, on-site assistance, and software upgrade releases.

The entire UGAP offer is now available on the web site: www.ugap.fr** (Information Technology and Communication / Networks section). It will also be available in the next UGAP catalogue, which will have a circulation of 200,000 copies.

The “Union des Groupements d'Achats Publics” (UGAP), public purchasing authority, is a State-owned Public Industrial and Commercial Establishment (EPIC). The UGAP is controlled by two ministries: the economy, finance and industry ministry, and the ministry for youth, national education and research. The UGAP only supplies State and public authorities and establishments, regions, departments, urban councils and the public establishments, private sector organisations providing a public service, and public and private hospitals and medical establishments. To find out more, please visit: www.ugap.fr.**

CS Communications & Systèmes is a leading company in the design, integration and operation of systems, applications and critical infrastructures. Concerning network services, CS designs, deploys and maintains network infrastructures (LAN, MAN, WAN). CS is the leading integrator of Nortel Networks data systems in France. Many major companies, throughout France, rely on CS for its services. To find out more about the corresponding services offered by CS, please visit www.c-s.fr.**

As a global innovation leader, Nortel Networks enriches consumer and business communications worldwide by offering converged multimedia networks that eliminate the boundaries among voice, data and video. These networks use innovative packet, wireless, voice and optical technologies and are underpinned by high standards of security and reliability. For both carriers and enterprises, these networks help to drive increased profitability and productivity by reducing costs and enabling new business and consumer services opportunities. Nortel Networks does business in more than 150 countries. For more information, visit Nortel Networks on the Web at www.nortelnetworks.com or www.nortelnetworks.com/media_center.

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 outcome of Nortel Networks independent review and planned restatement or revisions of its previously announced or filed financial results; the impact of the management changes announced on April 28, 2004 and August 19, 2004; the impact of the inability to meet Nortel Networks filing obligations on support facilities and public debt obligations; the sufficiency of Nortel Networks 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; continued reductions in spending by Nortel Networks customers; fluctuations in Nortel Networks operating results and general industry, economic and market conditions and growth rates; the communication by Nortel Networks auditors of the existence of material weaknesses in internal controls; Nortel Networks ability to recruit and retain qualified employees; fluctuations in Nortel Networks cash flow, level of outstanding debt and current debt ratings; the use of cash collateral to support Nortel Networks normal course business activities; the dependence on Nortel Networks subsidiaries for funding; the impact of Nortel Networks defined benefit plans and deferred tax assets on results of operations and Nortel Networks cash flows; Nortel Networks dependence on new product development and its ability to predict market demand for particular products; Nortel Networks 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; changes in regulation of the Internet; the impact of the credit risks of Nortel Networks 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 Nortel Networks purchase contracts; the impact of Nortel Networks 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 future success of Nortel Networks strategic alliances; and the adverse resolution of litigation, investigations, intellectual property disputes and similar matters. For additional information with respect to certain of these and other factors, see the most recent Form 10 Q/A and Form 10-K/A 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, Business Without Boundaries, Passport and BayStack are trademarks of Nortel Networks.

**This is a 3rd party link as described in our Web linking practices.

Contact for Press and Analysts:

Sophie Biscaras
Nortel Networks
+33 1 69 55 58 84
sophbis@nortel.com

Angelika Kempf
Nortel Networks
+44 1628 43 7340
angelika.kempf@nortel.com

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