Nortel Networks Deploys Succession Centrex IP for Leader in eCommerce, Payment Services; First Data Expands Call Center Capacity; Improves Customer Service, Flexibility

Business Wire, Feb 18, 2003

Business Editors/High-Tech Writers

RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)--Feb. 18, 2003

Nortel Networks (NYSE:NT)(TSX:NT) has deployed its Succession Centrex IP (Internet Protocol) solution for a global leader in electronic commerce and payment services, helping the company provide a highly-reliable hosted call center service for its large installed base of financial customers.

First Data Corp. has already deployed almost 700 lines of Nortel Networks Succession Centrex IP solution -- including i2004 Internet Telephones -- and plans to expand to more than 4,500 lines as business requirements increase. Succession Centrex IP is a key component of Nortel Networks Succession Services suite of hosted multimedia and packet voice services.

First Data is focused on enabling people and businesses to buy goods and services using a variety of electronic payment methods, including credit, debit and smart cards, point-of-sale transactions, and money transfers. It helps its customers support these services by managing and operating a series of customized call centers.

"It's critical that we use the best tools to serve our clients," said John Pane, vice president, Information Services, First Data. "The flexibility of Nortel Networks equipment allows us to better use our existing investment and offer 'state-of-the-art' technology to quickly and efficiently process financial transactions."

With Succession Centrex IP, First Data has cost-effectively expanded the geographic reach of its service, deploying agents quickly in remote call centers. First Data can now easily extend its call center capabilities thousands of miles while avoiding the replication of call center equipment. Centrex IP permits employees to retain their existing Centrex services and TDM (time division multiplexing) phones.

"Succession Centrex IP permits targeted deployment of voice over IP to areas of the enterprise that benefit the most, such as branch offices, remote employees and new locations," said Sue Spradley, president, Wireline Networks, Nortel Networks. "This means that First Data and its enterprise customers are able to enjoy the benefits of voice over IP while fully leveraging the value of their existing investments in TDM equipment. Succession Centrex IP is a highly-scalable solution that positions First Data to accommodate large increases in call center traffic."

Nortel Networks has a comprehensive voice over IP (VoIP) portfolio to enable delivery of solutions across all four carrier VoIP market segments: cable; local; long distance; and wireless. Nortel Networks has deployed softswitches and gateways in 38 service provider networks across 22 countries, and has announced Succession portfolio contracts collectively estimated at approximately US$2 billion.

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 customer financing and commitments; stock market volatility; the entrance into an increased number of supply and outsourcing contracts which contain delivery and installation 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.