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NORTHERN TELECOM STATEMENT ON NYNEX CONTRACT

 TORONTO, Sept. 15 /PRNewswire/ -- Northern Telecom issued the following:
 We have substantially completed negotiations with NYNEX for a large, long-term contract to supply S/DMS Supernode switching systems, remotes, software upgrades and system extensions, as we announced yesterday.
 We expect to sign the agreement soon.
 Because we do not know when the contract signing will take place, we asked and received permission from NYNEX to issue a news release about our portion of the agreement. Once the release was issued, reporters asked whether the $1 billion was the value of this contract. We wish to clarify that issue.
 The value of the contract, which is substantially less than $1 billion, was not revealed in the news release. Our agreement with NYNEX does not allow us to release that figure. In its place, we estimated the value to Northern Telecom of the total project -- initial switching systems, software and hardware upgrades, system extensions, remotes and other items.
 Over five years, we estimate that Northern Telecom will supply about $1 billion in products and services to NYNEX. That figure is based on assumptions about economic conditions, network growth and our continuing ability to deliver customer satisfaction. We believe our estimate properly reflects the potential value of the agreement to Northern Telecom.
 -0- 9/15/93
 /CONTACT: Bob O'Brien of Northern Telecom, 613-763-5342/
 (NT)


CO: Northern Telecom; NYNEX ST: IN: TLS SU: CON

DC-MH -- DC030 -- 2334 09/15/93 15:07 EDT
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Publication:PR Newswire
Date:Sep 15, 1993
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