Bell Canada to Trial Nortel Networks Voice Over IP Product With Major Corporate Customers.

Business Editors & High-Tech Writers

TORONTO--(BUSINESS WIRE)--Jan. 8, 2001

Expects Next Generation Multimedia Services to Increase

Mobility, Employee Productivity

Bell Canada (NYSE:BCE) (TSE:BCE.) and Nortel Networks (NYSE:NT) (TSE:NT.) today announced plans to conduct the first North American trial of Nortel Networks Interactive Multimedia Server, a new Voice over Internet Protocol (VoIP) product designed to deliver new, advanced multimedia services. Beginning this month, Bell will trial the product with its largest enterprise Centrex customers, enabling them to increase employee collaboration and improve productivity.

Nortel Networks Interactive Multimedia Server is designed to deliver instant video calling and other new telephone, Internet and video services using "off-the-shelf" computer hardware. It can be deployed in existing terrestrial or wireless networks, or in next generation packet voice networks.

"People have grown accustomed to the convenience provided by services like caller ID and voice mail delivered over traditional telephone networks," said Sue Spradley, president, Carrier Voice over IP, Nortel Networks. "Now as we move to more cost-effective 'packet' networks, Nortel Networks Interactive Multimedia Server will deliver new, practical services that will fundamentally improve the way we communicate."

"This key new product also leverages Nortel Networks technology innovation to provide new levels of freedom and control," Spradley said. "Users will be able to create personal communications profiles that are as mobile as they are, and the control to be reached where they want, when they want, and by whom they want."

"Bell Canada is committed to providing converged IP solutions together with industry leaders to deliver increased value to our customers and offer them more communications options," said Joan Highet, vice president Voice, Bell Canada. "This trial is the next step in the evolution of our Business Access services toward a suite of Hosted Business Telephony solutions. Through Nortel Networks technology, we will be positioned to add or modify new services and deliver them ubiquitously across our entire network. By having access to network-based, managed IP services, together with existing voice access services such as Centrex, our customers can experience improved productivity while maintaining high network reliability."

As part of its Centrex IP evolution, Bell Canada plans to trial several new services with Interactive Multimedia Server, including:

    --  Personal Call Management -- users can specify how and when
        calls are received on a wireless, business or home phone -- or
        sent directly to voice mail -- based on pre-specified
        instructions. Preferences can be customized based on time of
        day, Caller ID or other parameters.

    --  Instant Video Calling -- users can initiate a video or voice
        call without having to pre-arrange conferencing facilities
        simply by putting on a headset and 'clicking' a button.

    --  Hot Desking -- employees can carry phone numbers and calling
        preferences with them when they change desks or offices,
        whether for the day or for permanent relocations.

    --  Collaborative Messaging -- regardless of location around the
        world, workers can collaborate in real-time, sharing files and
        Web pages, or engaging in interactive whiteboard sessions.

Nortel Networks Interactive Multimedia Server will deliver new services to global businesses and consumers using either existing telephones, mobile phones and personal computers, or new IP-based telephones. The initial release is available now with further services and applications to be added in second quarter 2002. It will be a key element of Nortel Networks comprehensive VoIP portfolio for enterprises and service providers, which is designed to transform today's telephony and data networks into highly reliable packet networks for delivery of voice.

Interactive Multimedia Server will also serve as an applications platform for Nortel Networks next generation Wireless Networks solutions, supporting 3GPP Open Services Architecture specifications and taking full advantage of the latest IP technology including Session Initiation Protocol (SIP).

Bell Canada, Canada's national leader for communications in the Internet world, provides connectivity to residential and business customers through wired and wireless voice and data communications, high speed and wireless Internet access, IP-broadband services, e-business solutions, local and long distance phone and directory services. Bell Canada is owned by BCE Inc of Montreal (80 percent) and by SBC Communications Inc. of San Antonio, Texas (20 percent). For more information please visit www.bell.ca.

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 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.

Nortel Networks, the Nortel Networks logo, the Globemark and Succession are trademarks of Nortel Networks.