News Release

Verizon Wireless, Nortel Networks Plan 1xEV-DO Field Trial, CTIA Demonstration

March 18, 2002

Jeffrey Nelson
jeffrey.nelson@verizonwireless.com
908-306-4824

Jay Barta
Nortel Networks
jbarta@nortelnetworks.com
972-685-2381

ORLANDO, FL — Verizon Wireless, operator of the nation's largest wireless network, and Nortel Networks* [NYSE/TSE: NT] today announced plans to conduct trials of a CDMA2000* 1xEV-DO (1X evolution-data optimized) wireless network in San Diego beginning in June 2002.

Nortel Networks and Verizon Wireless are demonstrating live, over-the-air data calls using CDMA2000 1xEV-DO technology at CTIA Wireless 2002 (Hall B, booth #3463) this week in Orlando, Fla.

The San Diego trial will be conducted in conjunction with Airvana*, Inc and will use Nortel Networks Metro Cell base stations already deployed in the Verizon Wireless' network. The trial is expected to pave the way for introduction of even faster data speeds than currently available on the Verizon Wireless 1XRTT Express Network.

CDMA2000 1xEV-DO is a next generation wireless packet data system designed to support data rates up to 2.4 megabits per second. It will complement Verizon Wireless current rollout of CDMA2000 1XRTT voice and packet data services by providing higher data capacity and throughput.

The high speeds offered by CDMA2000 1xEV-DO are expected to greatly enhance the end user experience and to grant speedier access to corporate intranets. The technology will potentially allow operators to triple data user capacity, and to provide enhanced, next generation wireless services such as video and audio streaming, interactive gaming, and other multimedia services.

"This trial will enable Verizon Wireless to validate customer demand for enhancements to our existing 3G-1XRTT Express Network wireless data service," said Bill Stone, executive director of network strategy, Verizon Wireless. "With 1xEV-DO technology, we can improve network efficiencies, decrease deployment costs, and be better positioned to offer a faster, more robust wireless experience to businesses and consumers."

"Today's wireless operators are looking for technology that will empower them to deliver faster, more compelling wireless data services without putting extra strain on their networks or increasing costs," said Steve Slattery, vice president, Wireless Access, Nortel Networks. "Nortel Networks CDMA2000 1xEV-DO technology leverages operators' existing spectrum investments, and enables them to deliver 'always on' wireless data services that will fundamentally change the way businesses and consumers communicate and conduct business."

The two companies are also working together to deploy CDMA2000 1XRTT radio base station equipment and related network infrastructure for Verizon Wireless nationwide Express Network.

Building on market-leading CDMA2000 1XRTT capability, Nortel Networks CDMA2000 1xEV-DO solution is enabled through a module upgrade to Nortel Networks CDMA Metro Cell base station. Nortel Networks is working with Airvana, of Chelmsford, Mass., to jointly develop all-IP 1xEV-DO products for Nortel Networks customers.

About Nortel Networks

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 Long Haul 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 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 and the Globemark are trademarks of Nortel Networks. Airvana is a trademark of Airvana, Inc.

About Verizon Wireless

Verizon Wireless is the nation's leading provider of wireless communications and Internet services. The company has the largest nationwide wireless network and 29 million customers. Headquartered in Bedminster, NJ, Verizon Wireless is a joint venture of Verizon Communications (NYSE:VZ) and Vodafone (NYSE and LSE: VOD). Reporters and editors can find more information on the Web at http://www.verizonwireless.com.

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