Cegetel Signs LOI With Nortel Networks for UMTS Network Build Out in Paris; Industry-Leading Solutions to Help Accelerate High-Performance Internet in Europe.

Business/Technology Editors

CANNES, France--(BUSINESS WIRE)--Feb. 21, 2001

Cegetel, a subsidiary of Vivendi-Universal, has signed a Letter of Intent to purchase infrastructure equipment and services from Nortel Networks (NYSE:NT)(TSE:NT.) for build out of a third generation (3G) UMTS (Universal Mobile Telecommunications System) network in Paris, strengthening Nortel Networks leadership position in delivering the high-performance Wireless Internet to Europe.

"Nortel Networks has now broken into the strategically important French market, and is positioned as a leader in the Wireless Internet with Pan-European UMTS coverage," said Pascal Debon, president, Nortel Networks EMEA (Europe, Middle East, Africa). "This is another sign that the market is embracing our Wireless Internet and high-performance Internet solutions."

Nortel Networks has now been selected to help build UMTS networks for six wireless operators, including BT Cellnet in the United Kingdom; Airtel and Xfera in Spain; T-Mobile in Germany; AT&T Wireless in the United States; and Cegetel in France.

Nortel Networks solutions for building the high-performance Wireless Internet are driven by its 'Wings of Light' strategy, which combines optical, wireless and IP (Internet Protocol) solutions to help operators provide highly reliable, high-speed access to broadband Internet services virtually 'anytime, anywhere.'

Nortel Networks e-mobility Internet BTS (base transceiver station) supports all major second and third generation standards in a single base station and is designed to offer more than 10 times today's typical capacity in the industry's smallest footprint.

UMTS is designed to provide high-speed access to information, e-mail, real-time video and other Wireless Internet services through a variety of personal, portable devices.

Nortel Networks is a global Internet and communications leader with capabilities spanning Optical, Wireless, Local, Personal Internet and eBusiness. The Company had 2000 U.S. GAAP revenues of US$30.3 billion and serves carrier, service provider and enterprise customers globally. Today, Nortel Networks is creating a high-performance Internet that is more reliable and faster than ever before. It is redefining the economics and quality of networking and the Internet, promising a new era of collaboration, communications and commerce. Visit us 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 impact of price and product competition; the dependence on new product development; the impact of rapid technological and market change; the ability of Nortel Networks to make acquisitions and/or integrate the operations and technologies of acquired businesses in an effective manner; general industry and market conditions and growth rates; international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of consolidations in the telecommunications industry, the uncertainties of the Internet; stock market volatility; the ability of Nortel Networks to recruit and retain qualified employees; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; and the impact of increased provision of customer financing by Nortel Networks. 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. 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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