Nortel Networks Brings New Voice to Web Pages; End-to-End Solution Enables Enterprises to Deliver Enhanced Customer Service.

NEW YORK -- Nortel Networks (NYSE:NT)(TSX:NT) today announced its Web-Centric Self-Service (WCSS) solution designed to redefine how enterprises and service providers deliver secure, self-service voice applications through Web pages for their customers. The WCSS solution uses advanced Web applications and a customer's existing Web infrastructure to enhance customer self-service for such applications as eCommerce, financial services, directory assistance, IP telephony services and unified messaging.

"The ability to deliver enhanced self-service solutions and provide automated access to services is essential in today's business environment. Our customers count on us to provide the information they need when they need it, and we've successfully achieved this using Nortel Networks Interactive Voice Response platform," said Dianne Wynne, executive vice president and director of Zions Bancorporation Client Services. "We are looking to implement Nortel Networks Web-Centric Self-Services to further enhance our customers' experience."

WCSS provides an end-to-end solution using open industry standards allowing information within a Web page to be made available to a wide range of applications including voice commands. WCSS also works with popular Web development tools as well as standard server and desktop platforms, giving enterprises and service providers the ability to migrate to these capabilities using multi-vendor platforms and protocols on their existing communications infrastructure.

Nortel Networks WCSS is ideal for using spoken commands for accessing content generally offered in a graphic Web page. The WCSS solution can also create self-service applications such as high-touch IP telephony services, directory assistance, and unified messaging.

"Nortel Networks technology and professional service expertise is the foundation for many of the world's largest self-service and contact center solutions. It is from this vantage point that we work to drive innovation and deliver an enhanced end-user experience," said Roxann Swanson, vice president and general manager, Enterprise Multimedia Applications, Nortel Networks. "When coupled with a portfolio spanning Wireless Local Area Networks (WLAN) to Secure Virtual Private Networks (SSL-VPN) to advanced speech applications to SIP-based multimedia, Nortel Networks has all of the necessary pieces to deliver a best-in-class Web-centric model of self-service."

WCSS delivers functionality that can be coupled with Nortel Networks industry-leading MPS 500 platform and its standard VoiceXML browser, or with any VoiceXML 2.0 compliant browser.

Nine out of 10 FORTUNE 500 companies rely on Nortel Networks each business day. Nortel Networks continues to be the leading provider of interactive voice response (IVR) and contact center solutions in the United States, according to the latest market share reports from InStat/MDR and InfoTech. In August 2004, Nortel Networks received the 2004 Frost & Sullivan Speech Solutions Competitive Strategy Award for its outstanding ability to advance its market position through innovative self-service offerings.

Zions Bancorporation is one of the nation's premier financial services companies, consisting of a collection of great banks in select high growth markets. Under local management teams and community identities, Zions operates approximately 400 full-service banking offices in Arizona, California, Colorado, Idaho, Nevada, New Mexico, Utah and Washington. In addition, Zions is a national leader in SBA lending, public finance advisory services, agricultural finance and electronic bond trading. The company is included in the S&P 500 Index. Investor information and links to subsidiary banks can be accessed at www.zionsbancorporation.com.

As a global innovation leader, Nortel Networks enriches consumer and business communications worldwide by offering converged multimedia networks that eliminate the boundaries among voice, data and video. These networks use innovative packet, wireless, voice and optical technologies and are underpinned by high standards of security and reliability. For both carriers and enterprises, these networks help to drive increased profitability and productivity by reducing costs and enabling new business and consumer services opportunities. Nortel Networks does business in more than 150 countries. For more information, visit Nortel Networks on the Web at www.nortelnetworks.com or www.nortelnetworks.com/media_center.

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 outcome of Nortel Networks independent review and planned restatement or revisions of its previously announced or filed financial results; the impact of the management changes announced on April 28, 2004 and August 19, 2004; the impact of the inability to meet Nortel Networks filing obligations on support facilities and public debt obligations; the sufficiency of Nortel Networks 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; continued reductions in spending by Nortel Networks customers; fluctuations in Nortel Networks operating results and general industry, economic and market conditions and growth rates; the communication by Nortel Networks auditors of the existence of material weaknesses in internal controls; Nortel Networks ability to recruit and retain qualified employees; fluctuations in Nortel Networks cash flow, level of outstanding debt and current debt ratings; the use of cash collateral to support Nortel Networks normal course business activities; the dependence on Nortel Networks subsidiaries for funding; the impact of Nortel Networks defined benefit plans and deferred tax assets on results of operations and Nortel Networks cash flows; Nortel Networks dependence on new product development and its ability to predict market demand for particular products; Nortel Networks 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; changes in regulation of the Internet; the impact of the credit risks of Nortel Networks 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 Nortel Networks purchase contracts; the impact of Nortel Networks 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 future success of Nortel Networks strategic alliances; and the adverse resolution of litigation, investigations, intellectual property disputes and similar matters.

For additional information with respect to certain of these and other factors, see the most recent Form 10 Q/A and Form 10-K/A 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 and Business Without Boundaries are trademarks of Nortel Networks.