CANADIAN COMMUNICATIONS and TELEPHONY

[Kitskid]

TELUS Deploys National Voice over IP Network Based on Nortel Networks Technology

09:03 EST Monday, November 18, 2002


RESEARCH TRIANGLE PARK, NORTH.CAROLINA--Nortel Networks (NYSE:NT)(TSX:NT) announced today that TELUS, one of Canada's largest telecommunications companies, is migrating its national circuit-based long distance network traffic to a packet-based network with Nortel Networks voice over IP (VoIP) equipment.

At the heart of TELUS' new packet-based national voice solution are Nortel Networks Succession Communication Server 2000 softswitches and Nortel Networks Passport Packet Voice Gateways (PVG). TELUS' national VoIP network includes voice gateways deployed at 11 major locations across Canada, enabling voice traffic to be carried on TELUS' national high-speed IP backbone with carrier grade voice quality.

"Nortel Networks is enabling TELUS to migrate voice services or applications cost effectively to a next generation, packet-based network which is based on IP," said Dr. Girish Pathak, chief technology officer, TELUS. "With Nortel Networks Succession solution, we have leveraged our existing equipment, migrating our toll traffic from other carriers' networks onto our own, and we are significantly lowering our network costs."

"Nortel Networks is in a unique position to effectively enable TELUS' migration to voice over IP because of our detailed understanding of network design and service delivery, our solid circuit-to-packet migration strategy, and our comprehensive voice over IP portfolio," said Sue Spradley, president, Wireline Networks, Nortel Networks. "We are happy to continue our long-term relationship with TELUS, and to work with them in this strategic next stage of their business plan."

VoIP traffic will be transported across TELUS' existing optical network, which is based on Nortel Networks OPTera Long Haul 1600 Optical Line System. Nortel Networks is TELUS' primary supplier for optical, switching and mobility solutions. With this deployment, the two companies have extended a successful, on-going relationship to include voice over IP infrastructure and services.

This initiative positions TELUS for developing new voice applications and services. In support of this, TELUS will also deploy Nortel Networks Succession Centrex IP -- a full feature Centrex service set for an IP infrastructure -- and is trialing Nortel Networks Succession Interactive Multimedia Server for delivery of SIP-based personalization, collaboration and other multimedia services. Both products are key building blocks of Nortel Networks Succession Services portfolio for businesses.

Nortel Networks has the industry's only "SuperClass" softswitch that meets all the criteria for a true service provider circuit-to-packet migration: local, tandem and long distance capability on a single platform; full business and residential telephony service sets; regulatory features like Lawful Intercept and Number Portability; 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 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 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, the Globemark, Succession, Passport and OPTera are trademarks of Nortel Networks.

FOR FURTHER INFORMATION PLEASE CONTACT: Nortel Networks, Ann Fuller, [phone], [e-mail], or, Nortel Networks, Tina Warren, [phone], [e-mail]