Castille, Leon Region to Offer eGovernment Services Using IP Solution from Nortel Networks.

Business Editors/High-Tech Writers

VALLADOLID, Spain--(BUSINESS WIRE)--April 3, 2003

The Regional Government of Castille and Leon has deployed an IP (Internet Protocol) network solution from Nortel Networks (NYSE:NT) (TSX:NT) to improve its communications infrastructure, to connect government buildings across nine provinces, and to set the stage for future eGovernment services.

"Given our new health and employment responsibilities transferred from the central government, we must integrate multiple technologies and expand and update our network to ensure there is no disruption to current services," said Eduardo Garcia, secretary, telecommunications and transportation for The Regional Government of Castille and Leon.

"We are also committed to following the new European Union policies regarding the modernization of regional educational systems. Nortel Networks has helped us address these challenges," Garcia said. "Nortel Networks not only delivers a solution that satisfies our current and future communications requirements, but also one that fully leverages our previous infrastructure investments. This helps ensure a cost-effective network migration and preserves the high quality and reliability necessary for a public administration."

The new network provides an infrastructure that supports not only voice and data, but also new multimedia applications like video, video conferencing, and IP telephony, all of which are becoming increasingly important for local, regional and federal governments to effectively serve their citizens.

"At Nortel Networks, we are focused on designing new networking solutions that will help improve public administration, making it more efficient and cost effective," said Ricardo Miranda-Naon, who leads enterprise and public sector services for Nortel Networks in Iberia.

"The convergence of technologies will help reduce administration costs and set the foundation for cost-effective delivery of eGovernment services that will better meet the needs of citizens and better enable communication between government departments," Miranda-Naon said.

The Regional Government of Castille and Leon has deployed a Gigabit Ethernet network, based on Nortel Networks Passport 8600 Routing Switches, to connect all the official buildings in Valladolid, capital city of the region. An ATM-based multiservice wide area network, based on Nortel Networks Passport 7000 Multiservice Switches, connects all the government buildings throughout the region's nine provinces, offering carrier grade quality-of-service and allowing introduction of new public services.

Passport 8600 is a key component of Nortel Networks enterprise product portfolio, delivering Gigabit Ethernet performance and end-to-end quality-of-service for business-critical applications. It also provides ease of use, high performance, high reliability and scalability within a single platform to support converged voice, video and data application.

Passport 7000 Multiservice Switch is a versatile, highly reliable and scalable networking platform that delivers high performance, cost savings, investment protection, and management simplicity. Nortel Networks is the global market share leader in multiservice switching, and has been for seven consecutive quarters ending year-end 2002, according to Synergy Research Group.

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.

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