Best Buy Selects Nortel Networks, HickoryTech for Internet Telephony Network

Business Wire, July 23, 2002

Business Editors/High-Tech Writers

RICHFIELD, Minn.--(BUSINESS WIRE)--July 23, 2002

Succession Enterprise to Provide Next Generation Voice

Applications for New Corporate Campus

Best Buy (NYSE:BBY), North America's number one specialty retailer of consumer electronics, personal computers, entertainment software and appliances, has selected HickoryTech Corporation (Nasdaq:HTCO) to provide a voice over Internet Protocol (IP)-enabled network -- using enterprise solutions from Nortel Networks (NYSE:NT)(TSX:NT.) -- for Best Buy's new corporate campus under construction in Richfield, Minnesota.

The new network is intended to provide traditional and next generation voice services for up to 7,500 Best Buy employees over a 42.5-acre campus that will include 1.5 million square feet of office space.

Expected to be one of the largest single-campus telecommunication deployments in the United States this year, the Best Buy network will be based on Nortel Networks Succession Enterprise solution, and will feature a Nortel Networks Meridian IP-enabled PBX. HickoryTech Enterprise Solutions (formerly Collins Communications), an original "Nortel Networks Distribution Partner," will deploy the network and provide on-site upgrades and maintenance.

"We need a network that will accommodate our new campus with the ability to expand to meet the demands of future growth and technological changes," said Kevin Seamans, manager of Network Integration for Best Buy. "We feel confident that the Nortel Networks/HickoryTech solution will give us the flexibility, functionality and communications features that we require."

The network will position various Best Buy departments to use applications specific to their needs. For example, IP phones will be used in the print shop and some call centers to give workers mobility and to simplify phone set adds, moves and changes. Nortel Networks CallPilot Unified Messaging will be used to integrate desktop applications, and Nortel Networks Symposium Call Center Server will give reporting and call center functionality to approximately 750 call center agents across the campus.

"After consulting with Best Buy, the combined HickoryTech and Nortel Networks team determined that an IP-enabled solution would give Best Buy a mix of traditional and advanced solutions to maximize communications effectiveness across their new campus today and in the future," said Jon Anderson, president of HickoryTech's Enterprise Solutions division.

"Best Buy's selection of our Succession Enterprise voice over IP portfolio and HickoryTech's design, deployment and support services re-affirms our leadership position in developing and serving the next generation communications needs of large enterprise customers," said Steve Schilling, president, enterprise accounts, Nortel Networks. "We've been working with HickoryTech for more than 30 years, and by joining forces with them on this network, we can provide a reliable, flexible platform that will position Best Buy to excel in project management and customer service."

Minneapolis-based Best Buy Co., Inc. (NYSE:BBY) is North America's number one specialty retailer of consumer electronics, personal computers, entertainment software and appliances. The Company operates retail stores and commercial web sites under the names: Best Buy (BestBuy.com), Future Shop (FutureShop.ca); Magnolia Hi-Fi (MagnoliaHiFi.com), Media Play (MediaPlay.com), On Cue (OnCue.com), Sam Goody (SamGoody.com), and Suncoast (Suncoast.com). The Company reaches consumers through more than 1,900 retail stores in the U.S., Canada, Puerto Rico and the U.S. Virgin Islands. For more information on Best Buy, visit its virtual pressroom at http://onlinepressroom.net/bestbuy.> HickoryTech Corporation is a diversified communications company headquartered in Mankato, Minn., with 500 employees and operations in Minnesota and Iowa. HickoryTech is in its 105th year of operation with its roots in the local telephone exchange business. From this base, it has expanded into wireless communications, competitive local service, long distance, Internet, information solutions and enterprise solutions. To learn more about HickoryTech Corporation, visit the company's Web page at www.HickoryTech.com.

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 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.