ASG Deploys Succession IP Telephony from Nortel Networks to Speed Business Integration; Global Software Solutions Company Evolves Network to Offer Cost-Effective IP Telephony.

Business Editors & High Tech Writers

FRANKFURT, Germany--(BUSINESS WIRE)--Nov. 7, 2002

ASG, an enterprise software and professional services provider to Global 5000 companies, has deployed a Succession voice over IP (Internet Protocol) solution from Nortel Networks (NYSE:NT) (TSX:NT) across a number of offices worldwide to standardise operations and streamline integration of its acquired companies.

"When you think globally, voice over IP via the wide area network (WAN) works perfectly for us," said Arthur L. Allen, president and chief executive officer, ASG. "We are using Nortel Networks solutions to network applications, offices, and people around the globe. The real power is how it helps us to execute quickly on our global integration philosophy."

Using ASG's global WAN data network to implement a global voice over IP strategy allowed the company to quickly integrate acquired businesses while at the same time saving on international long-distance charges.

The company evolved its network to offer IP telephony by maximizing its previous technology investments in Nortel Networks Meridian 1 PBX and Nortel Networks Symposium Express Call Center. With the addition of a Meridian IP Trunk card for high-quality voice transmission over the WAN, ASG was able to migrate to voice over IP without compromising prior investments or existing business practices.

"Our Succession IP telephony solutions, which include IP-enabled Meridian 1 PBXs, are highly accepted in the marketplace because they are able to evolve smoothly from existing communication networks into voice over IP," said Peter Kelly, president, Enterprise Networks, Nortel Networks EMEA (Europe, Middle East, Africa). "ASG is one further proof point of our trendsetting voice over IP technology, and its satisfaction with Nortel Networks solutions is our incentive to continue our IP telephony strategy."

Through Nortel Networks Symposium Express, ASG is able to direct first-level support calls by language. This allows the ASG support team to provide service to its customers in their native language. Product engineers provide second-level support, but are usually located remotely from the call center. By using the voice over IP network to route those calls, ASG gained a tighter integration and reduced costs.

"With Paris, Dusseldorf and Munich now linked to St. Albans in the UK, and St. Albans linked to the United States, we have saved 70 percent on international long distance bills," said Aaron Isban, director, global telecommunications, ASG. "With direct cost savings alone, we have achieved a six-month payback on the investment to convert to voice over IP."

ASG's business is to partner with clients to improve productivity and significantly enhance performance through the intelligent use of technology. Founded in 1986, ASG is a privately-held global enterprise software and professional services firm that provides a full range of software solutions in the Identity Management, Applications Management, Operations Management, Information Management, and Performance Management arenas -- including business re-engineering, systems integration, and systems development. ASG has 1,000 employees, US$200 million in revenues, 7,000 customer sites, and 18,000 software licenses worldwide. ASG is headquartered in Naples, Florida, USA, with 40 offices throughout the Americas, Europe, Middle East, Africa, and Asia/Pacific. For more information, visit ASG at www.asg.com.

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 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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