Cox Communications Selects Nortel Networks, Nuera Communications for Strategic VoIP Migration.

Business Editors/High-Tech Writers

RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)--June 16, 2003

Deployment Expected to Drive Sustainable Opex Savings

Cox Communications, Inc. (NYSE:COX), one of the largest multiservice broadband communication companies in North America, has deployed Nortel Networks (NYSE:NT) (TSX:NT) Succession cable voice over Internet Protocol (VoIP) solution and Nuera Communications media gateways for the migration of its long-distance telephony traffic to a packet-based infrastructure.

This is the first packet trunking deployment by a cable operator in North America.

"Nortel Networks Succession cable VoIP solution will enable Cox Communications to transport some of our residential long distance phone calls over our IP backbone - helping to reduce operational costs," said Jay Rolls, Cox's vice president of Telephone and Data Engineering.

Cox already has 750,000 customers making and receiving more than 24 million calls per day using its telephone service, which is based on Nortel Networks DMS circuit switches. Cox has now deployed Nortel Networks Succession Communication Server 2000 superclass softswitch and has begun to move long distance traffic onto its national IP backbone. Cox estimates this transition will save them millions of dollars in expenditures each year.

Cox selected the Nuera Communications ORCA(R) GX-21 and GX-8 carrier-class VoIP media gateways based on their high system availability and advanced voice processing capabilities. The GX-21 and GX-8 enable carriers to lower their costs in deploying high-quality telephony services. Cox's VoIP deployment represents a real world multivendor VoIP solution, enabled by Nortel Networks and Nuera having completed interoperability testing in Nortel Networks Interoperability Lab.

"Nuera's main goal is to help service providers, like Cox, expand their telephony operations into new markets and to more customers while integrating seamlessly with their existing circuit-switched technology," said Bill Ingram, president and chief executive officer, Nuera Communications. "We enable service providers to leverage their current infrastructure and expand service areas."

"Nortel Networks Succession VoIP portfolio is focused on driving new service revenue opportunities through expanded geographic reach, easier entry into new markets, and integration of new multimedia services bundles," said Sue Spradley, president, Wireline Networks, Nortel Networks. "We are proud to be working with Cox to deliver a flexible network evolution that will enable them to leverage the benefits of VoIP while preserving and extending investments in circuit switching."

Nortel Networks Succession Communication Server 2000 is a superclass softswitch that meets all criteria for true, service provider circuit-to-packet migration, including: PacketCable-based cable access, tandem and long distance capability in a single platform; full business and residential telephony service sets; regulatory features like Lawful Intercept and Number Portability; and carrier-grade reliability and scalability.

Nortel Networks provides a comprehensive, integrated cable solution spanning Optical Ethernet, long haul and metro optical, telephony, IP and VoIP. Nortel Networks is committed to delivering a portfolio based on industry standards - like PacketCable - to reduce interoperability costs and speed deployment. As of March 31, 2003 Nortel Networks equipment is providing service to more than four million cable telephony lines globally.

About Nortel Networks

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.

About Nuera

Nuera Communications, Inc. is a leading provider of Voice-over-Internet Protocol (VoIP) infrastructure solutions that work over any medium (cable, wireless, copper and fiber). Nuera stands out as a leader in the broadband telephony market and helps define industry standards. The company's Open, Reliable Communications Architecture (ORCA(R)) product portfolio helps carriers worldwide migrate from legacy networks to next-generation VoIP networks. For more information, please visit www.nuera.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, Succession and DMS are trademarks of Nortel Networks.