Nortel Networks Enhances Carrier Voice over IP Portfolio; Introduces New IP Capability on Succession Media Gateway 9000.

Business Editors/High-Tech Writers

RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)--Nov. 13, 2003

Reinforcing its position as a leader in voice over IP (Internet Protocol) technology innovation, Nortel Networks (NYSE:NT)(TSX:NT) has added IP network support to Nortel Networks Succession Media Gateway 9000, providing greater deployment flexibility for delivering new, revenue-generating services over converged voice and data networks.

Succession Media Gateway 9000 is a fully integrated, next generation access platform that bridges Nortel Networks broad portfolio of voice and data edge access technologies. The recent general availability of the Succession Networks SN06 software release enables Succession Media Gateway 9000 to support IP capability in addition to ATM. This new feature enhances Nortel Networks industry-leading portfolio of voice over IP gateways.

CODETEL, a Verizon company and the Dominican Republic's principle telecom service provider, has selected Succession Media Gateway 9000 to smoothly transition voice services to an IP packet network. Deploying Succession Media Gateway 9000 over a unified voice and data network will help CODETEL to drive reduced capital and operating costs, use its network capacity more efficiently, and offer new, revenue-generating services like advanced contact centers, operator services, and voice over IP VPNs (Virtual Private Networks) to both corporate and residential customers.

Nortel Networks has been delivering Succession Media Gateway 9000 lines since the fourth quarter of 2002, and more than 150,000 lines are expected to be in-service on Succession Media Gateway 9000 by the end of 2003. This IP functionality for Succession Media Gateway 9000 is a strategic addition to Nortel Networks extensive gateway portfolio, which currently contains IP functionality on its industry-leading trunk gateway - Nortel Networks Passport Packet Voice Gateway. Synergy Research Group, in its second quarter 2003 market share report, ranked Nortel Networks as number one worldwide for voice over IP gateways.

"We are removing the boundaries of business through technology innovation that enables service providers to expand business and revenue potential," said Al Safarikas, vice president, marketing, Wireline Networks, Nortel Networks. "Our ability to develop and implement high-value solutions through product enhancements, such as IP support on Succession Media Gateway 9000, exemplifies Nortel Networks continued market leadership in voice over IP. Succession Media Gateway 9000 provides our customers with investment protection today and a bridge to next generation advanced services."

The flexible, scaleable and transport independent architecture of Succession Media Gateway 9000 enables service providers to seize new revenue opportunities by lowering the barriers for new market entry and supporting enhanced service offerings. Succession Media Gateway 9000 will directly connect subscriber interfaces to packet backbone networks and deliver the sophisticated, feature transparency enabled by the Succession Communication Server 2000 family of business and residential features, including Centrex, IP, Succession voice over IP VPN and Succession Primary Voice. Its packet-based network interfaces enable Succession Media Gateway 9000 to be deployed anywhere in a service provider network, virtually without geographic distance limitations.

Succession Media Gateway 9000 also has the ability to host existing TDM peripherals and industry-standard DLCs, which ensures the smooth upgrade of both DMS and third-party switching centers to full packet capability.

Designed to deliver carrier-grade reliability, Succession Media Gateway 9000 supports standards-based control protocols and next generation Digital Signal Processing (DSP) technologies. Succession Media Gateway 9000 can be cost effectively deployed at all point of presence locations, including wire centers, co-location cages, outside plant enclosures, and customer premises.

Nortel Networks Succession portfolio leads the industry in voice over IP shipments, services and solutions for service providers. In the first and second quarters of 2003, Nortel Networks ranked #1 in the global markets for voice over IP and voice over ATM ports shipped and in global softswitch revenue, according to Synergy Research Group.

Nortel Networks has a proven portfolio of equipment for packet voice and multimedia services. It enables delivery of solutions across all four carrier voice over packet market applications - cable, local, long distance, and wireless. Nortel Networks is also providing its Succession voice over IP solution to leading operators including Bell Canada, Sprint, MCI, Hong Kong Broadband, China Netcom and China Railcom.

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 completion of the comprehensive review and the release of financial results and issuance of restated financial statements for 2000, 2001 and 2002 and the first and second quarters of 2003; the severity and duration of the industry adjustment and the continued reductions in spending by our customers; 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; negative impacts on our gross margins; the ability to recruit and retain qualified employees; fluctuations in cash flow, the level of outstanding debt and our current debt ratings; the ability to meet the financial covenant in our credit facilities; the use of cash collateral to support our normal course business activities; the dependence on our subsidiaries for funding; the impact of our defined benefit plans and our deferred tax assets on our results of operations, cash flows and compliance with our financial covenant; the 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; the dependence on new product development and our ability to predict market demand for particular products; 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 generally and as a result of acceleration of the settlement date or early settlement of our purchase contracts; the impact of the New York Stock Exchange minimum listing requirements and the proposed consolidation of our common shares; the impact of 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 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 and intellectual property disputes. For additional information with respect to certain of these and other factors, see the most recent Form 10-Q and Form 10-K 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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