ALLTEL Selects Nortel Networks for CDMA2000 1X Network Upgrades.

Business Editors & High Tech Writers

DALLAS--(BUSINESS WIRE)--June 3, 2002

Next Generation Infrastructure to Integrate

Newly Acquired Markets, Boost Capacity

ALLTEL plans to deploy third generation (3G) wireless infrastructure equipment from Nortel Networks (NYSE:NT)(TSX:NT.) to expand ALLTEL's network and increase voice capacity under an amended supply agreement, the companies announced today.

Under this agreement, Nortel Networks will provide CDMA2000 1X radio access and switching gear to ALLTEL to integrate newly acquired wireless properties from CenturyTel Inc. ALLTEL announced an agreement in March to purchase the properties, which it said will add more than 700,000 customers and expand its wireless footprint into highly complementary new markets across Arkansas, Louisiana, Michigan, Mississippi, Texas and Wisconsin.

"The investment in CDMA technology will allow us to support our growth in the retail business, yet at the same time allow us to continue to support roaming on the existing TDMA network," said Chris Smith, executive vice president of Network Services for ALLTEL.

"Our dual expertise in packet networking and radio access delivers unique advantages in accommodating more voice traffic, driving down operating costs, and priming customers for tomorrow's `always on' data offerings," said Steve Slattery, vice president, CDMA/TDMA, Nortel Networks "We have shown tremendous momentum in recent months with contract wins across the globe, and this agreement with ALLTEL further extends our geographic 3G presence with new 1X footprints."

Nortel Networks has been deploying network equipment with ALLTEL for more than 20 years. The upgrades announced today are expected to include deployment of Nortel Networks Metro Cell CDMA base station and radio switching equipment. Nortel Networks is also implementing CDMA2000 1X for leading service providers around the world, and has deployed more than 30,000 CDMA base stations for more than 64 customers in 14 countries.

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 Metro and Enterprise Networks, Wireless Networks and Optical Long Haul 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 increased provision of customer financing and commitments; stock market volatility; the entrance into an increased number of supply, turnkey, and outsourcing contracts which contain delivery, installation, and performance 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.

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