CODETEL, Nortel Networks to Deploy Voice Over IP Network in Dominican Republic; Next Generation Network Will Converge Voice, Data to Enable Advanced Services.

Business Editors/High-Tech Writers

SANTO DOMINGO, Dominican Republic--(BUSINESS WIRE)--Nov. 13, 2003

CODETEL, a Verizon company and the Dominican Republic's principal telecom service provider, has selected Nortel Networks (NYSE:NT)(TSX:NT) to provide a next generation voice over IP (Internet Protocol) network intended to converge voice and data traffic, help drive lower operating costs, and provide advanced services throughout the country.

This new network, expected to be in service in early 2004, will position CODETEL to consolidate existing services and offer new revenue generating services like advanced contact centers, operator services, voice over IP VPNs (Virtual Private Networks), and primary voice services to both enterprise and residential customers.

Under terms of a recent agreement, Nortel Networks will deploy an IP network for CODETEL, transitioning its local access network, international long-distance and other voice and data traffic onto one, packet-switched infrastructure.

Packet switching allows voice information to be broken down into 'packets' and transmitted over a data network, such as an IP infrastructure, while maintaining the quality of the voice and the communication experience. A packet network also reduces operational and capital costs and provides new revenue opportunities for service providers by enabling voice, video and data traffic to reside on a common network.

"CODETEL decided to evolve to a packet-switched infrastructure because it will allow us to meet the demands of our customers while maximizing capacity," said Jorge Ivan Ramirez, president, CODETEL. "We're confident that, with Nortel Networks industry-leading voice over IP solutions, we will be able to offer our customers those services that will help to simplify their lives and allow them to be more efficient and productive in their work or at home."

For this evolution, CODETEL has selected Nortel Networks Succession Communication Server 2000 superclass softswitches and Nortel Networks Passport Packet Voice Gateways, as well as Nortel Networks Passport 15000 and Passport 20000 Multiservice Switches, to create a next generation packet voice network that is expected to fuel innovation, simplify the network and add value for CODETEL customers.

CODETEL will be the first service provider to deploy new IP capabilities on Nortel Networks Succession Media Gateway 9000. CODETEL will deploy Succession Media Gateway 9000 onto the IP network to smoothly transition its voice traffic onto the packet network.

"With years of deploying advanced networks in the Caribbean, and working closely with CODETEL, Nortel Networks is uniquely positioned to evolve CODETEL's network," said Dion Joannou, president, Caribbean and Latin America, Nortel Networks. "We have the experience, the detailed understanding of network design and the comprehensive solutions portfolio to help CODETEL achieve its objectives of maximizing capacity and offering advanced services to its customers."

Nortel Networks Succession portfolio leads the industry in voice over IP shipments, services and solutions for service providers. In the first and second quarters of 2003, Nortel Networks ranked #1 in the global markets for voice over IP and voice over ATM ports shipped and in global softswitch revenue, according to Synergy Research Group.

Nortel Networks has a proven portfolio of equipment for packet voice and multimedia services. It enables delivery of solutions across all four carrier voice over packet market applications -- cable, local, long distance, and wireless. Nortel Networks is also providing its Succession voice over IP solution to leading operators including Bell Canada, Sprint, MCI, Hong Kong Broadband, China Netcom and China Railcom.

CODETEL is the leading telecommunications service provider in the Dominican Republic. A Verizon Company (NYSE:VZ), CODETEL provides local, long-distance, and wireless voice services, together with advanced data services, to approximately a million customers. Verizon is one of the world's leading providers of communications services, with operations in 40 countries in the Americas, Europe, Asia, and the Pacific. For more information, please visit www.verizon.com or www.codetel.com.do.

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 completion of the comprehensive review and the release of financial results and issuance of restated financial statements for 2000, 2001 and 2002 and the first and second quarters of 2003; the severity and duration of the industry adjustment and the continued reductions in spending by our customers; 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; negative impacts on our gross margins; the ability to recruit and retain qualified employees; fluctuations in cash flow, the level of outstanding debt and our current debt ratings; the ability to meet the financial covenant in our credit facilities; the use of cash collateral to support our normal course business activities; the dependence on our subsidiaries for funding; the impact of our defined benefit plans and our deferred tax assets on our results of operations, cash flows and compliance with our financial covenant; the ability to 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; barriers to 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 and our ability to predict market demand for particular products; 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 generally and as a result of acceleration of the settlement date or early settlement of our purchase contracts; the impact of the New York Stock Exchange minimum listing requirements and the proposed consolidation of our common shares; the impact of supply and outsourcing contracts that 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 and intellectual property disputes. For additional information with respect to certain of these and other factors, see the most recent Form 10-Q and Form 10-K 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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