Nortel Networks Multimedia Server to Revolutionize Voice Communications.

Business Editors & High Tech Writers

ATLANTA--(BUSINESS WIRE)--June 5, 2001

Will Unleash Service Provider Potential to Profit from Voice Over IP

With Suite of Mobile Multimedia Services

Pledging to revolutionize the way people communicate and to create new revenue opportunities for service providers and enterprises, Nortel Networks (NYSE:NT) (TSE:NT.) today unveiled a new carrier-class multimedia applications server and complementary suite of multimedia communications services.

Nortel Networks Succession Interactive Multimedia Server (IMS) will be demonstrated this week at SUPERCOMM 2001 (booth No. 8048). Succession IMS enables new multimedia and voice communications services based on Internet Protocol (IP) across a multitude of devices and networks, including the Wireless Internet.

"Succession IMS has the potential to enable new services ranging from Dick Tracy's wristwatch videophone to video call forwarding and other video and multimedia-enabled telephony services," said Sue Spradley, president, Carrier Voice over IP, Nortel Networks. "I wouldn't be surprised to see Caller ID replaced by 'Caller I-See.'"

With Succession IMS, service providers will be able to offer not only new multimedia communications services, but also new levels of freedom to use them.

Consumers and business professionals will have the power to create personal communications profiles that are portable, providing the flexibility to be reached virtually 'anytime, anywhere' on any device over any network.

They will be able to 'log-on' to the network from any phone for access to the same services available from their homes or offices. A personal call manager will direct incoming calls to a business, home or mobile phone, personal digital assistant (PDA), or other communications device based on user-specified criteria such as caller and time of day.

Nortel Networks Succession IMS will enable service providers to get a 'jump start' on delivering these and other hosted multimedia communications offerings with a suite of pre-programmed services, including spontaneous video calling, dynamic call handling and personal call manager.

A key element of Nortel Networks comprehensive IP networking solutions portfolio, Succession IMS will take full advantage of the very latest IP technology -- including Session Initiation Protocol (SIP) and Call Processing Language (CPL) -- and open application programming interfaces (APIs) to help speed new service deployment. The open programmability of Succession IMS speeds new service development, deployment and revenue generation.

Succession IMS will also serve as an applications platform for Nortel Networks next generation Wireless Internet solution, and will support 3GPP Open Services Architecture specifications.

In addition to the demonstration in the Nortel Networks booth, Succession IMS will also be featured in SUPERCOMM 2001 "Exploration Theater" as part of a presentation on "Driving VoIP Transformation."

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 rationalization 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; the impact of the credit risks of our customers; the entrance by Nortel Networks into an increased number of supply, turnkey, and outsourcing contracts which contain delivery, installation, and performance provisions, which, if not met, could result in Nortel Networks having to pay substantial penalties or liquidated damages; and the impact of increased provision of customer financing and commitments 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.

Nortel Networks, the Nortel Networks logo, the Globemark and Succession are trademarks of Nortel Networks.