TWTC Begins Installation of Nortel Networks GSM Solution for New Wireless Network in Guyana.

Business Editors/High-Tech Writers

GEORGETOWN, Guyana--(BUSINESS WIRE)--May 26, 2004

First Alternative Operator Plans to Offer Nationwide

Wireless Services to Local and Roaming Customers

Trans-World Telecom Caribbean Ltd. (TWTC), a new telecommunications provider in the Caribbean, has started installation of Nortel Networks (NYSE:NT)(TSX:NT) GSM (Global System for Mobile Communications) solutions for the build out of a new wireless network in Guyana.

TWTC, through its local subsidiary, Cel*Star Guyana, plans to provide wireless digital voice and data services to both local and visiting (roaming) customers.

"We are excited about offering new, competitive telecom services in Guyana," said Donald deLaski, chief executive officer, TWTC. "We selected Nortel Networks GSM solutions because we believe they are best suited to deliver the kind of high-performance, reliable infrastructure that will enable us to offer leading-edge services to our customers today and in the future."

TWTC's GSM infrastructure from Nortel Networks will include radio access and core equipment and will be both GPRS (General Packet Radio Service) and EDGE (Enhanced Data for GSM Evolution)-ready, positioning TWTC to provide advanced, high-speed data services in the future, like streaming audio and video, mobile Web browsing and multimedia messaging.

"Nortel Networks is a global leader in providing advanced wireless solutions, with over 30 years of experience in the Caribbean," said Kevin Taylor, vice president, Wireless Networks for Nortel Networks in the Caribbean and Latin America (CALA) region. "Our GSM solutions will position TWTC to immediately offer a variety of revenue-generating voice and data applications, addressing the country's demand for sophisticated wireless services and to maximize its investment when it's ready to evolve the network."

Nortel Networks wireless technology is designed to maximize existing customer investments and help service providers drive down capital and operating costs. Nortel Networks equipment migrates to broadband mobile technologies through modular upgrades. This approach re-uses existing base station equipment to reduce or eliminate the need for costly hardware replacements.

Nortel Networks has designed, installed and launched more than 300 wireless networks in over 50 countries across the globe. Nortel Networks was the industry's first supplier with wireless networks operating in all advanced radio technologies (GSM/GPRS/EDGE, CDMA2000 1X and 1xEV-DO, UMTS and WLAN), and is the only end-to-end provider of all next generation wireless solutions.

The Nortel Networks GSM solution for TWTC will be supplied through a turn-key implementation package provided by Leadcom Integrated Solutions Ltd., a Nortel Networks Partner in CALA. Leadcom will provide the Network Planning, Installation, Commissioning and Integration of the different elements of the entire network which will be followed by technical support and maintenance to TWTC.

Trans-World Telecom and its affiliated companies have broad and diverse telecommunications expertise around the world. The company and its management have operated full service telecommunications enterprises in many regions of the world, including the USA, Latin America, Asia, the Caribbean and Europe. Trans-World Telecom Caribbean is a customer-driven organization whose mission is to deliver the latest in advanced telecommunication services to the Caribbean region. The company offers a full array of fixed and mobile services for consumers and businesses that are focused on the unique needs of the Caribbean community.

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 or www.nortelnetworks.com/media_center.

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 outcome of Nortel Networks independent review and planned restatement of its previously announced or filed financial results; the impact of the management changes announced on April 28, 2004; the impact of the inability to meet Nortel Networks filing obligations on credit and support facilities and public debt obligations; the sufficiency of Nortel Networks 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 Nortel Networks customers; fluctuations in Nortel Networks operating results and general industry, economic and market conditions and growth rates; the communication by Nortel Networks auditors of the existence of material weaknesses in internal control; Nortel Networks ability to recruit and retain qualified employees; fluctuations in Nortel Networks cash flow, level of outstanding debt and current debt ratings; Nortel Networks ability to meet the financial covenants in its credit facilities; the use of cash collateral to support Nortel Networks normal course business activities; the dependence on Nortel Networks subsidiaries for funding; the impact of Nortel Networks defined benefit plans and deferred tax assets on results of operations, Nortel Networks cash flows and compliance with financial covenants; Nortel Networks dependence on new product development and its ability to predict market demand for particular products; Nortel Networks 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 Nortel Networks 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 Nortel Networks purchase contracts; risks associated with a consolidation of Nortel Networks common shares; the impact of Nortel Networks 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 Nortel Networks strategic alliances; and the adverse resolution of litigation, investigations, 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/A and Form 10-K/A 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 and Business Without Boundaries are trademarks of Nortel Networks.