Bouygues Telecom Selects Nortel Networks GPRS Access Technology to Expand Wireless Rollout in France.

Business Editors/High-Tech Writers

PARIS--(BUSINESS WIRE)--March 25, 2003

Nortel Networks (NYSE:NT)(TSX:NT) today announced that it had been selected by Bouygues Telecom, one of France's leading mobile communications operators, to supply General Packet Radio Service (GPRS) wireless access technology for its French network.

This new five-year contract includes implementation of GPRS to support wireless data services. It will significantly increase the deployment of Nortel Networks Univity solutions within Bouygues Telecom's network covering more than 3,000 base stations.

The contract complements an existing frame agreement between Bouygues Telecom and Nortel Networks for Global System for Mobile Communications (GSM) and GPRS technology. This new infrastructure will position Bouygues Telecom to significantly increase voice capacity, to expand and enhance roaming capabilities across France and to improve international roaming.

"At Bouygues Telecom, we want to further develop our i-mode(TM) offering and to provide our corporate customers with new services based on GPRS," said Frederic Zimer, deputy chief operations officer, Bouygues Telecom. "We will continue to work extensively with Nortel Networks to test and optimise deployment of new 2.5G and 3G services on the GSM infrastructure."

"This agreement celebrates our long-standing relationship with Bouygues Telecom," said Vivian Hudson, president and general manager, GSM/GPRS/EDGE, Nortel Networks. "The GSM/GPRS infrastructure will provide Bouygues Telecom with the appropriate foundation for 3G services. It can utilize bandwidth more efficiently, which means it can relay cost-saving advantages to customers."

Since commercial launch in 1996, Bouygues Telecom has imposed itself on the mobile phone market with a single ambition: to become the benchmark personal communications operator by offering customers easy-to-use, high-quality products at an accessible price. Acknowledged for its policy of innovation, Bouygues Telecom placed first or jointly first in 67 of the 92 tests carried out by the French Telecommunications Regulatory Authority in its 2002 service quality evaluation survey of mobile telephone networks in France. The company is one of the world's leading mobile phone operators with international coverage spanning 163 countries.

i-mode(TM), the "internet in your pocket" launched by Bouygues Telecom on 15 November 2002, has attracted over 100,000 users in France. i-mode(TM) gives access to around a hundred handy sites for daily life, through nine families of services. i-mode(TM) users can also send and receive e-mails from Internet messaging services worldwide.

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, the Globemark and Univity are trademarks of Nortel Networks.