Series of Deployments Demonstrates Nortel Networks Momentum in Healthcare Market; Patients, Staff to Benefit from Converged Enterprise, Optical, Wireless Network Solutions.

Business Editors/High-Tech Writers

HIMSS 2004 Annual Conference

OFC 2004

ORLANDO, Fla.--(BUSINESS WIRE)--Feb. 23, 2004

Nortel Networks (NYSE:NT)(TSX:NT) today announced a series of converged network deployments at healthcare facilities throughout the United States and Canada, demonstrating its continued momentum in the healthcare market. The announcement was made at the Healthcare Information and Management Systems Society (HIMSS) Annual Conference and Exhibition.

"We consider healthcare to be one of the most vital markets in terms of network infrastructure adoption," said Dan Young, vice president, Global Industry Solutions Marketing, Nortel Networks. "The healthcare industry requires 'fail safe' technology that enables close collaboration among doctors, nurses, technicians and network administrators to provide the best in patient care."

Nortel Networks offers an array of enterprise, optical and wireless solutions designed specifically to meet the requirements of healthcare customers. These solutions include mobile healthcare applications, security, high-performance networking, business continuity and disaster recovery, IP telephony, multimedia collaboration, contact centers and self-service applications.

"With Nortel Networks, we were able to build a fully-integrated, end-to-end voice and data networking solution with a single vendor, enabling us to simplify management and reduce costs," said John Berghuis, director, Technology Services for Orlando Regional Healthcare (ORHS), which has deployed an optical network solution from Nortel Networks. "Nortel Networks is the only networking company capable of bringing carrier-class networking into the enterprise domain - the essence of convergence."

Orlando Regional Healthcare deployed Nortel Networks OPTera Metro 3000 and OPTera Metro 5200 to converge its voice, data and storage networks, and to provide a uniform business continuity and disaster recovery solution across eight hospitals.

With this optical backbone, ORHS has implemented a highly resilient, available and efficient network with the ability to support new applications for improved patient care. These include real-time diagnosis, access to electronic patient records and distance learning for doctors. The network also supports a Picture Archiving and Communications System (PACS), integrating digital products and technology to provide acquisition, storage, retrieval and display of radiographic images.

The ORHS network also includes a full suite of enterprise voice and data products from Nortel Networks, including Nortel Networks Meridian SL-100 and Nortel Networks Passport 8600.

Other healthcare network deployments announced by Nortel Networks include:

-- Hartford Hospital - This Hartford, Conn. healthcare provider

is implementing an encompassing network infrastructure from

Nortel Networks. Hartford Hospital is deploying PACS with an

underlying infrastructure based on Nortel Networks BayStack

5510 switches as the Layer 2 distribution system and Passport

8600 Routing Switches in the core. This unique design

leverages split multi-link trunking to provide network

connectivity without application disruption in the event of a

core link or core switch failure. Hartford Hospital is also

deploying additional enterprise products from Nortel Networks,

including Nortel Networks Contivity switches and NetID, a

distributed, fault tolerant DHCP and DNS server.

-- Erlanger Health Systems - Erlanger is using a wireless local

area network (LAN) solution from Nortel Networks to support a

large-scale deployment of mobile nursing carts. Nurses can

perform such functions as ordering tests, treatments and

medications, and entering new data right from a patient's

bedside. This is expected to help improve both patient care

and nursing staff productivity. Erlanger Health Systems also

uses converged voice, data and network management solutions

from Nortel Networks.

-- Centre hospitalier Pierre-Le Gardeur - Recognizing the need

for scalable, reliable and secure communications, this

Repentigny, Quebec-based healthcare provider is deploying

converged enterprise solutions from Nortel Networks as it

moves into a new building. These solutions will include Nortel

Networks Succession IP Telephony, wireless LAN, security,

Nortel Networks Symposium Call Center, Nortel Networks

CallPilot unified messaging, and a redundant data networking

infrastructure. Nortel Networks secure wireless voice and data

solutions will be used to protect digital patient information.

-- Calgary Health Region - This healthcare provider has deployed

Nortel Networks IP contact center solutions after completing

the largest telephone system upgrade in Calgary history. The

new contact center serves as a triage point, allowing

qualified healthcare professionals to provide initial advice

to patients at home. This is expected to benefit patients by

reducing the number of expensive emergency room visits and

hospital admissions. Calgary Health Region also deployed

Nortel Networks Business Communications Manager solutions in

its community health clinics. This gives the clinics access to

the contact center's IP network, CallPilot voice mail

services, and future IP Telephony and rich media

functionality.

-- The Credit Valley Hospital - A long-standing Nortel Networks

customer, The Credit Valley Hospital of Mississauga, Ontario

has deployed Succession 1000 to complement a Meridian PBX 

solution that has been in use since the hospital's inception.

The Credit Valley Hospital also deployed 550 Nortel Networks

Internet telephones to help facilitate admissions and

discharges. These converged IP solutions help position the

hospital to reduce the costs of moves, adds and changes, and

offer the freedom to add new applications as needed. The

Credit Valley Hospital plans to use Nortel Networks solutions

as it expands into new buildings in 2004.

-- University of Pennsylvania Health System (UPHS) - This

healthcare system, which includes the first hospital and first

medical school established in the United States, has deployed

an Optical Ethernet solution from Nortel Networks to connect

multiple hospitals and clinics in Philadelphia and the

surrounding area. This solution provides Gigabit Ethernet

capability, which is helping UPHS to realize as much as a

20-fold increase in available bandwidth. Gigabit Ethernet

allows UPHS staff to instantaneously share patient records and

bandwidth intensive diagnostic tools like PACS. The ability to

leverage the expertise of UPHS healthcare staff within

minutes, regardless of location, will ultimately lead to

increased levels of patient care and better use of medical

resources.

-- Cincinnati Children's Hospital Medical Center - This

healthcare provider relies on a data communications

infrastructure from Nortel Networks to provide security,

performance and reliability for all networking applications.

Cincinnati Children's Hospital was recently recognized with

the prestigious Nicholas E. Davies Award of Excellence for

2003 from the Healthcare Information and Management Systems

Society (HIMSS) for its Integrating Clinical Information

System computerized patient care system.

In addition, McKesson Corporation uses Nortel Networks Alteon Application Switches as part of its Horizon One Pass single sign-on solution for healthcare applications. A time-saving and security-enhancing solution, Horizon One Pass eliminates the need for multiple user ID and password combinations, and provides physicians, clinicians, business office staff and other users with instant, secure access to authorized applications.

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 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; continued reductions in spending by our customers; fluctuations in operating results and general industry, economic and market conditions and growth rates; the communication by our auditors of the existence of material weaknesses in internal control; 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 dependence on new product development and our ability to predict market demand for particular products; 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; changes in regulation 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; risks associated with a 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 future success of our strategic alliances; and the adverse resolution of litigation, 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 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.

Nortel Networks, the Nortel Networks logo, the Globemark, Business Without Boundaries, OPTera, Meridian, SL, Meridian SL, Passport, BayStack, Contivity, Succession, Symposium, CallPilot and Alteon are trademarks of Nortel Networks. Horizon One Pass is a trademark of McKesson Corporation.