Obwaldner Kantonalbank Deploys IP Telephony Solution from Nortel Networks; Succession CSE 1000 Helps Position Swiss Bank to Improve Service, Reduce Costs.

Business Editors & High Tech Writers

ZURICH, Switzerland--(BUSINESS WIRE)--Sept. 19, 2002

Obwaldner Kantonalbank (OKB), one of the Swiss cantonal banks, has deployed a Succession enterprise IP (Internet Protocol) telephony solution from Nortel Networks (NYSE:NT) (TSX:NT.) to help drive reduced costs, greater productivity and improved customer service.

This solution has positioned OKB to carry voice traffic over its IP network, replacing various PBX systems with IP telephony to eliminate the cost of maintaining two separate networks across its eight branches around the region of canton Obwalden in Switzerland.

OKB chose to converge all communications tools onto employee personal computers, saving desk space by removing telephones. A total of 130 OKB staff are using i2050 softphones, unified messaging, and Microsoft TAPI (Telephone Applications Programming Interface) 'screen pops' through their PCs. OKB is also using Symposium Express to set up and manage its contact centre.

"We are continually looking to introduce new ways of working to help increase customer satisfaction and employee productivity," said Martin Kiser, chief information officer, Obwaldner Kantonalbank. "Nortel Networks enterprise IP telephony solution helped us open doors to new applications and functionalities. We are now able to link all our offices together while managing them from one central location, maximising efficiency in the workplace and allowing employees to increase their mobility."

The OKB network is based on Nortel Networks Succession Communication Server for Enterprise (CSE) 1000, Nortel Networks CallPilot Unified Messaging, Nortel Networks Symposium Call Center Server, and 130 IP phones.

"This fully converged IP telephony installation showcases the benefits of a 'state-of-the-art' communications system," said Thomas Marfurt, country manager for Nortel Networks in Switzerland. "It has helped to position OKB as a leader in implementation of advanced telephony solutions, to realize greater business benefits, and to improve its competitive position."

OKB is the leading bank in canton Obwalden -- a lively region, well-known nationally and popular internationally. OKB strongly influences the economical, cultural and social development of the region. Because of their strong performance in addition with a full guarantee of the canton, the safe and competent financial institute enjoys a high confidence and sound reputation within the social, economical and governmental environment. More information about Obwaldnder Kantonalbank can be found on the Web at www.okb.ch.

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 Metro and Enterprise Networks, Wireless 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 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 increased provision of customer financing and commitments; stock market volatility; the entrance into an increased number of supply, turnkey, and outsourcing contracts which contain delivery, installation, and performance 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, CallPilot and Symposium are trademarks of Nortel Networks. Microsoft is a trademark of Microsoft.