Swiss Office of Private Health Care Deploys IP Telephony Solution from Nortel Networks.

Business Editors/High-Tech Writers

ZURICH, Switzerland--(BUSINESS WIRE)--June 16, 2003

The new headquarters of the Office of Private Health Care (OKK - Offentliche Krankenkasse (KuV AG)) in Landquart has deployed a Succession 1000 enterprise IP (Internet Protocol) telephony solution from Nortel Networks (NYSE:NT)(TSX:NT) to help drive reduced costs, greater productivity and improved customer service.

Implemented by Swisscom Systems, the Swiss service company for private branch exchange (PBX), this new IP-based enterprise solution is delivering advanced business telephony services to OKK's six regional offices across the canton of Grison. The company's employees are now benefiting from a range of new features and services, allowing OKK to establish a fully-integrated corporate and mobile network internally, and to develop closer relationships with customers and partners.

"This new IP solution has enabled our network to offer increased flexibility, allowing our employees to move freely amongst our regional offices and 'log on' to any IP phone with just a PIN number," said Rene Galliard, personnel and organization manager and a member of the executive board of OKK. "Today we can really say that Nortel Networks IP Telephony solution has really helped us to drive reduced operating costs by allowing us to run data and voice applications on a single network."

The OKK network is based on Nortel Networks Succession 1000, Nortel Networks CallPilot Unified Messaging, and Microsoft TAPI (Telephone Applications Programming Interface), which enables 'screen pops' through employee PCs. OKK is also using Nortel Networks Symposium Call Centre Server to set up and manage its contact centre.

OKK also chose to converge its network to enable its entire staff to benefit from a flexible, mobile environment using 90 Nortel Networks i2004 Internet Phones and Nortel Networks Meridian C4010 DECT (Digital European Cordless Telephone) cordless phones.

Nortel Networks Succession 1000 offers a number of applications needed to meet OKK requirements for its new communications solution. OKK is using CTI (Computer Telephony Integration) to allow employees to select phone numbers from their PCs, and CallPilot to give each user a single mailbox for mobile and fixed line phones.

The next step of the project will include migration of all larger agencies of OKK in the canton of Graubunden to the Succession platform. The IP-WAN lines and network components are already available and up-to-date. With this step, OKK will be positioned to offer the added value of its telephony services to sister agencies at reduced costs and greater efficiency.

OKK's new IP communications network is an example of how Nortel Networks 'One Network. A World of Choice.' enterprise vision helps position businesses to drive increased user productivity and lower networking costs.

Nortel Networks 'One network. A world of choice.' is about raising the bar with a new level of customer and employee engagement where and how the network is accessed while offering enterprises the power of choice in deployment options through industry-leading solutions in IP Telephony, applications, data and optical networking.

"Interactive communication has become fundamental to building a customer-focused company," said Peter Kelly, president, Enterprise Networks, EMEA (Europe, Middle East, Africa), Nortel Networks. "Enterprises need to create new business value, drive reduced total cost of ownership, increase customer satisfaction, and open new business opportunities. As a strategic building block of Nortel Networks 'One Network. A World of choice.' enterprise vision, Nortel Networks Succession 1000 and Nortel Networks i2004 build an ideal platform for deploying enterprise-wide IP communication solutions, integrating seamlessly with collaborative applications."

OKK is a modern insurance company for health and accident insurances. In Switzerland OKK is ranked number 10 among insurance companies. For further information, turn to www.oekk.ch.

Swisscom Systems is a service specialist in the field of private branch exchanges (PBXs) with a broad customer base. As market leader, Swisscom Systems is the only provider to cover the entire service spectrum: from products, services and maintenance to financing with purchase, rental, leasing or outsourcing options. Thanks to cooperation with leading manufacturers, Swisscom Systems' market offerings are always state-of-the-art and ensure long-term protection of investment.

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 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 customer financing and commitments; stock market volatility; the entrance into an increased number of supply and outsourcing contracts which 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. 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.

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