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Nortel Networks Broadens Interoperability Testing with Key Industry Vendors

[November 12, 2003]

Nortel Networks Broadens Interoperability Testing with Key Industry Vendors

November 12, 2003

Nortel Networks Broadens Interoperability Testing with Key Industry Vendors
Interoperability Testing Designed to Increase Flexibility of Circuit-to-Packet Migration, Speeds Deployment of Multimedia Services

RESEARCH TRIANGLE PARK, N.C. – Nortel Networks* [NYSE/TSX: NT], in its commitment to provide carriers with maximum flexibility in implementing voice over Internet Protocol (IP) networks and to enable interoperability with third party vendors, announced new strategic product memberships to its voice over IP and multimedia interoperability testing program. New members include Aepona* Ltd., BroadSoft®, Leapstone Systems*, Pactolus, Paradyne* [NASDAQ:PDYN], Personeta, and sentitO Networks.

"Interoperability testing promotes knowledge sharing and innovation for Nortel Networks and for our customers," said Sue Spradley, president, Wireline Networks, Nortel Networks. "As a market leader in voice over IP infrastructure, Nortel Networks continues to deliver open, vendor independent solutions to help drive revenue opportunities into service provider networks. Through interoperability testing with other industry leaders, Nortel Networks can expand the number of available applications while simplifying network deployments, making it more cost effective for service providers to expand their business and offer new services."

Introduced in May 2003, the voice over IP and multimedia interoperability testing program is designed to help service providers accelerate time-to-market of packet voice and new session initiation protocol (SIP)-based multimedia services. New program members will focus on enabling interoperability of Nortel Networks Succession* Communication Server (CS) 2000 superclass softswitches and Nortel Networks Multimedia Communication Server (MCS) 5200 with third party access and trunk gateways, as well as SIP service delivery platforms.

"Our customers recognize the need to integrate voice, video and data services to provide simplified communications that increase mobility and productivity for consumers and enterprises, and they look to Nortel Networks to help them facilitate ‘best in class’ solutions and accelerate multivendor packet deployments," Spradley said.

Nortel Networks has completed interoperability testing with several leading third party vendors, and is either in the process of testing or working towards interoperability testing with several others. The listing of Nortel Networks newly announced third party vendors include:

-Nortel Networks intends to conduct interoperability testing between Aepona Ltd.’s Causeway* Parlay Gateway and Nortel Networks MCS 5200. Aepona’s Causeway Parlay Gateway is based on the Open Service Architecture (OSA)/Parlay APIs which allows service providers to rapidly develop and deploy new, customized revenue-generating SIP applications.

-Nortel Networks is scheduling interoperability testing with BroadSoft, whose BroadWorks® platform supports Hosted PBX, IP Centrex, Voice VPN, and the latest in collaborative conferencing. Interoperability testing between Nortel Networks Succession CS 2000 softswitch portfolio and BroadSoft’s BroadWorks will provide service providers with greater solution flexibility for SIP-based voice services.

-Nortel Networks is planning interoperability testing with Leapstone’s Communications Convergence Engine Service Broker and Nortel Networks MCS 5200. Leapstone provides unique service brokerage capabilities that complement the SIP multimedia capabilities of the Nortel Networks portfolio, augmenting the service control and management capabilities of SIP-based IP service networks.

-Nortel Networks has initiated interoperability testing between Paradyne’s CPX 1000 voice access gateway and Nortel Networks Succession CS 2000 softswitch portfolio. The Paradyne CPX 1000 Media Gateway enables voice over IP signaling to be supported by the CS 2000 over DSL.

-Pactolus has joined the voice over IP and multimedia interoperability testing program. Nortel Networks intends to conduct interoperability testing between its MCS 5200 and Pactolus’ SIPware™ Services suite that currently includes pre-paid and post paid calling card, reservation-less and operator-assisted conference calling, and voice mail for carrier networks.

-Nortel Networks has completed interoperability testing with Personeta TappS* NSC Network Service Controller and Nortel Networks MCS 5200. Personeta TappS NSC provides a service creation environment (SCE) with support for the JAIN, Parlay/OSA and other interfaces, to enable service providers to rapidly develop and deploy revenue-generating applications for both wireline and wireless networks.

-sentitO Networks has joined the voice over IP and multimedia interoperability testing program, and Nortel Networks intends to conduct interoperability testing between its MCS 5200 and sentitO’s NEO Services Switch (NSS). The NSS is a SIP-based access gateway that allows both residential and enterprise subscribers to directly benefit from the enhanced voice and data service offerings with POTS, DSL, and T1/E1 interfaces, while reducing the cost of delivering those services.

Interoperability testing is conducted in Nortel Networks state-of-the-art laboratory facilities configured to represent ‘real-world’ carrier networks, as well as on customer premises. Nortel Networks interoperability labs are located in the United States, Canada and China, supporting multivendor initiatives on a global basis.

Nortel Networks MCS 5200, part of Nortel Networks multimedia communications portfolio, is a SIP-based media and applications server. It leverages an open, standards-based architecture and commercially available hardware and software, positioning service providers to offer advanced multimedia and collaboration applications for businesses and consumers.

Nortel Networks Succession CS 2000 superclass softswitch provides call control, and delivers a full set of voice services. A superclass softswitch meets all criteria for 'true' service provider circuit-to-packet migration, including local, tandem and long distance capability on a single platform; full business and residential telephony service sets and carrier-grade reliability and scalability.

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 completion of the comprehensive review and the release of financial results and issuance of restated financial statements for 2000, 2001 and 2002 and the first and second quarters of 2003; the severity and duration of the industry adjustment and the continued reductions in spending by our customers; 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; negative impacts on our gross margins; 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 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; the dependence on new product development and our ability to predict market demand for particular products; 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 generally and as a result of acceleration of the settlement date or early settlement of our purchase contracts; the impact of the New York Stock Exchange minimum listing requirements and the proposed 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 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 and intellectual property disputes. 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 and Succession are trademarks of Nortel Networks. BroadSoft and BroadWorks are trademarks of Broadsoft. Aepona and Causeway are trademarks of Aepona. Paradyne is a trademark of Paradyne. Leapstone Systems is a trademark of Leapstone Systems. TappS is a trademark of Personeta. SIPware is a trademark of Pactolus.

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