Nortel Networks and Clarify Announce Completion of Nortel Networks' Acquisition of Clarify - Company Business and Marketing

Cambridge Telcom Report, March 20, 2000

Nortel Networks (NYSE/TSE: NT) and Clarify Inc. (NASDAQ: CLFY) announced Thursday the completion of the acquisition of Clarify by Nortel Networks. The acquisition follows the approval by the stockholders of Clarify at the special meeting of stockholders held earlier Thursday.

The acquisition was effected by the merger of a wholly-owned subsidiary of Nortel Networks with and into Clarify. As a result of the merger, each outstanding share of Clarify common stock was converted into a right to receive 1.3 Nortel Networks common shares. Clarify common stock will no longer trade on The NASDAQ Stock Market. Nortel Networks issued approximately 31.7 million common shares in connection with the merger.

"Today marks a major milestone in Nortel Networks' series of successful industry-leading acquisitions," said Bill Conner, president of Enterprise Solutions, Nortel Networks. "Clarify's leadership in eBusiness solutions combined with Nortel Networks' high performance Internet technologies creates a new powerhouse serving both enterprises and carriers."

"Companies require both unified network solutions and eBusiness software designed to deliver a total customer experience, improve loyalty and increase return on relationship," said Tony Zingale, president and CEO of Clarify. "With the acquisition complete, we are ready to hit the ground running to deliver new solutions and innovations. With our combined expertise and leadership, we are uniquely positioned to serve our customers."

Clarify stockholders who held their shares directly will receive a notice in the mail describing the process to exchange their Clarify common stock certificates for Nortel Networks common share certificates. Clarify stockholders whose shares were held through intermediaries such as banks or brokers will receive information about their holdings from those institutions.

Founded in 1990, Clarify Inc., a Nortel Networks' company, is a leading provider of eBusiness solutions for the front office. Clarify eFrontOffice combines customer relationship management and eBusiness capabilities in a single solution allowing companies to quickly deploy e-business sales, marketing and service initiatives. Clarify is the choice of leading corporations including Best Buy, British Telecommunications, Compaq, E(x)Trade, First USA, General Electric, giggo.com, Gillette, H&R Block, Microsoft, and Prudential. Clarify has strategic alliances with Cap Gemini, eLoyalty, Ernst & Young and PricewaterhouseCoopers.

Nortel Networks is a global leader in telephony, data, eBusiness, and wireless solutions for the Internet. The Company had 1999 U.S. GAAP revenues of US$21.3 billion and serves carrier, service provider and enterprise customers globally. Today, Nortel Networks is creating a high-performance Internet that is more reliable and faster than ever before. It is redefining the economics and quality of networking and the Internet through Unified Networks that promise a new era of collaboration, communications and commerce. FMI: www.nortelnetworks.com.