News Release

Verizon Wireless Selects Nortel Networks for BroadbandAccess Network Expansion

March 21, 2004

Jeffrey Nelson
Jeffrey.Nelson@VerizonWireless.com
908-306-4824Jennifer Usrey
Nortel Networks
jusrey@nortelnetworks.com  
972-684-4844

ATLANTA AND BEDMINSTER, NJ — Verizon Wireless, the nation's leading wireless service provider, has signed a two-year agreement with Nortel Networks* (NYSE:NT)(TSX:NT) to provide wireless infrastructure technology for its BroadbandAccess service which uses Verizon Wireless' third generation (3G) data network— the fastest commercially available wide-area wireless data service offered in the United States today. Earlier this year, Verizon Wireless announced that, beginning later this year, it plans to make BroadbandAccess service available throughout additional portions of its national footprint. BroadbandAccess is powered by a CDMA2000® 1xEV-DO (Evolution-Data Optimized) third generation (3G) technology.

Through 2005, Verizon Wireless is expected to spend US $167 million on Nortel Networks wireless infrastructure technology that enables BroadbandAccess. Nortel Networks was a primary supplier in San Diego for Verizon Wireless' initial commercial deployment of BroadbandAccess in October 2003. Nortel Networks will upgrade existing base stations throughout the network with new Metro Cell base stations, modules, and associated services.

"Nortel Networks was the network infrastructure provider in San Diego of our commercial 3G network," said Richard Lynch, executive vice president and chief technical officer, Verizon Wireless. "We have enjoyed tremendous success in San Diego and our customers have told us how BroadbandAccess has improved their productivity and their ability to respond more quickly to their customers."

The BroadbandAccess service allows enterprise customers to access information when they are out of the office at speeds that are faster than those offered via any other commercially available wide-area wireless data service in the United States. With data transmission bursts of up to 2 Megabits per second (Mbps), BroadbandAccess customers could download a 1 Megabyte e-mail attachment (for example, a small PowerPoint presentation or a large PDF file), or receive three digital pictures (each 400 x 600 pixels) in less than 30 seconds, which is three to four times faster than using EDGE service, and as much as ten times faster than on a competitor's GPRS network. Customers can also use this high-speed data service to access rich graphic content, video, music and more.

"1xEV-DO is gaining momentum as a global solution, providing enhanced 3G wireless services to end users everywhere," said Pascal Debon, President, Wireless Networks, Nortel Networks. "Nortel Networks congratulates Verizon Wireless for initiating the wide-scale roll out of 1xEV-DO, further proving that 3G is real and is quickly being embraced worldwide."

Nortel Networks has been providing wireless equipment to Verizon Wireless and its predecessor companies since 1996. The agreement to provide wireless infrastructure technology for Verizon Wireless' BroadbandAccess service is supplemental to existing ongoing supply agreements between the two companies.

About Verizon Wireless
Verizon Wireless is the nation's leading provider of wireless communications. The company has the largest nationwide wireless voice and data network and 37.5 million customers. Headquartered in Bedminster, NJ, Verizon Wireless is a joint venture of Verizon Communications (NYSE:VZ) and Vodafone (NYSE and LSE: VOD). Find more information on the Web at www.verizonwireless.com. To receive broadcast-quality video footage of Verizon Wireless operations, log onto www.thenewsmarket.com/verizonwireless.

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 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 outcome of our independent review and any further restatement of our previously announced or filed financial results; the impact of the inability to meet our filing obligations on our credit and support facilities and public debt obligations; 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/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.

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