BTC Chooses Nortel Networks as Exclusive Provider for GSM/GPRS Network; New Wireless Data Network to Provide Advanced Mobile Services in the Bahamas.

Business Editors/High-Tech Writers

NASSAU, Bahamas--(BUSINESS WIRE)--June 16, 2003

The Bahamas Telecommunications Company, Ltd. (BTC), the primary telecom operator in the Bahamas, has selected Nortel Networks (NYSE:NT) (TSX:NT) as the exclusive provider for evolution of its wireless data network to an advanced GSM/GPRS infrastructure, positioning BTC to offer next generation wireless voice, data and multimedia services.

Under a new supply agreement, Nortel Networks will provide both core and access solutions from its Wireless Data Networks portfolio to overlay BTC's existing TDMA infrastructure with a next generation GSM/GPRS network. The network integration will include implementation of EDGE (Enhanced Data GSM Evolution)-ready technology to support migration to 3G (third generation) wireless services. The first phase of the project will allow BTC to roll out services like mobile Web browsing, streaming audio and video, and multimedia messaging, starting with the islands of New Providence and Grand Bahama.

Nortel Networks GSM/GPRS technology will position BTC to increase network capacity while driving down operational costs. The overlay will also support GSM roaming services with BTC's global roaming partners of choice.

"BTC is delivering on its promise to provide leading-edge wireless services to its customers, creating more economic opportunities for the creative, innovative and entrepreneurial Bahamian," said Leon R. Williams, senior vice president and chief operating officer, BTC. "We chose Nortel Networks based on their proven GSM/GPRS technology and vast experience in evolving wireless networks, which will allow us to quickly roll out new features and offer our subscribers an abundance of choices."

"This contract celebrates our long-standing relationship with BTC," said Dion Joannou, president, Caribbean and Latin America, Nortel Networks. "As a leading provider of advanced Wireless Data Networks, we will continue to work closely with them to support their efforts in delivering compelling new services to their customers."

Nortel Networks is a leader in migrating TDMA wireless networks to GSM/GPRS/EDGE wireless data networks. In the Caribbean, Nortel Networks is working with customers like Cable & Wireless West Indies and TSTT in Trinidad and Tobago, who most recently selected Nortel Networks for their GSM/GPRS network build outs. Globally, Nortel Networks has deployed 80 GSM/GPRS networks in more than 50 countries, and is supplying GSM/GPRS systems to enable Wireless Data Network services for more than 50 operators around the world. Nortel Networks is the industry's only supplier with Wireless Data Networks operating in all three advanced technologies -- GPRS, CDMA2000 and UMTS.

The Bahamas Telecommunications Company Ltd. (BTC) has been a regulator and provider of telecommunications services in The Bahamas for more than 100 years. Today, the company offers modern, fully digital switching networks which provide high-speed communications services to residential and business consumers throughout the Bahamas. These services are transmitted via fibre optics, copper, coaxial, satellite and wireless media. Additional information on BTC can be obtained from our website at www.btcbahamas.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 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 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.