Bangladesh Telegraph and Telephone Board Extends Agreement with Nortel Networks.

Business Editors/High-Tech Writers

ISTANBUL, Turkey--(BUSINESS WIRE)--July 17, 2003

The Bangladesh Telegraph and Telephone Board (BTTB) has extended its agreement with Nortel Networks Netas, a subsidiary of Nortel Networks (NYSE:NT) (TSX:NT), to add more than 20,000 new digital telephone lines in Bangladesh.

This extension, estimated to be worth US$4 million, follows Nortel Networks Netas recent completion of a 116,000-line digital telephone exchange for BTTB.

Nortel Networks Netas expects to complete installation of the additional lines by the end of March 2004. BTTB plans to use this additional capacity to improve teledensity (# of telephone lines per person) in Bangladesh, which has a population of more than 130 million people. It will position BTTB to extend calling line ID, ISDN (Integrated Services Digital Network), and other advanced features to a broader base of subscribers.

"Under the extended agreement, we will continue to provide telecom infrastructure and expertise to BTTB to help raise the level of overall telecommunication services in Bangladesh," said M. Sait Gozum, general manager, Nortel Networks Netas. "These additional lines will increase the total number of 'in service' lines available from BTTB."

"Completing the original 116,000-line voice project to BTTB's satisfaction eight months ahead of schedule helped us to secure the extension," said Barhan Ozce, who leads international sales for Nortel Networks Netas. "We've also installed a nationwide transmission network for BTTB in Bangladesh."

Nortel Networks Netas has been active in Bangladesh since 1998.

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.

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