Nortel Networks Enhances Channel Partner Programme in Europe, Middle East, Africa

Business Wire, May 6, 2004

Business Editors/High-Tech Writers

LONDON--(BUSINESS WIRE)--May 6, 2004

Nortel Networks (NYSE:NT)(TSX:NT) has enhanced its Partner Programme in Europe, the Middle East and Africa (EMEA) to help channel partners adapt to the changing marketplace, build brand equity, and deliver end-to-end converged networking solutions and services.

The enhancements -- for Nortel Networks Gold Solutions Partners -- provide greater rewards to those who step up to the 'Convergence Challenge' by demonstrating growth, driving unaided business, and delivering excellent service. These rewards include incentives for unaided sales and loyalty, and greater discounts for laboratory and demonstration equipment.

The enhanced programme also includes three new initiatives -- Innovator, Global Customer Partner and Convergence Leader -- to help partners position themselves to address specific aspects of convergence.

"Our enhanced programme creates an end-to-end continuum of offerings and incentives for our channel partners and a range of high-value options for end users," said Adrian Marsh, director, Business and Channel Strategy, Enterprise Networks, EMEA, Nortel Networks. "It provides a cornerstone for evolving relationships to help position our channel partners to drive profitable growth and offer a wealth of choices to end-users while building brand equity."

"I believe that the improvements to Nortel Networks EMEA Partner Programme are a move in the right direction," said Keith Humphreys, managing consultant, Eurolan. "Partners are now better positioned to highlight specific areas of competencies and expand proficiencies, thus allowing them to differentiate themselves in today's marketplace."

The three new initiatives are voluntary programmes and are open to successful Nortel Networks Gold Solutions Partners who meet a range of criteria including service excellence, portfolio coverage, geographic presence, and performance. Each initiative offers the potential for significant incremental benefits specific to the value propositions of each partner.

"As Nortel Networks 'EMEA Partner of the Year,' we like the sound of the improved benefits for Gold Solutions Partners," said Martin Fraser, marketing director, Kingston Communications. "Nortel Networks is raising the standard for channel partners by establishing a programme that rewards the value a channel partner brings to the market as well as volume. At Kingston Communications, our strategy is built around convergence, and we see this taking our partnerships with Nortel Networks to the next step."

"We have been actively working with Nortel Networks as a Global Customer Partner across Europe and have won a number of multinational contracts," said Ian Ashby, vice president, EMEA Sales, NextiraOne. "We see real value coming out of the new initiatives around the Partner Programme and our relationship with Nortel Networks as we grow our business."

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 or www.nortelnetworks.com/media_center.> 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 Nortel Networks independent review and planned restatement of its previously announced or filed financial results; the impact of the management changes announced on April 28, 2004; the impact of the inability to meet Nortel Networks filing obligations on credit and support facilities and public debt obligations; the sufficiency of Nortel Networks 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 Nortel Networks customers; fluctuations in Nortel Networks operating results and general industry, economic and market conditions and growth rates; the communication by Nortel Networks auditors of the existence of material weaknesses in internal control; Nortel Networks ability to recruit and retain qualified employees; fluctuations in Nortel Networks cash flow, level of outstanding debt and current debt ratings; Nortel Networks ability to meet the financial covenants in its credit facilities; the use of cash collateral to support Nortel Networks normal course business activities; the dependence on Nortel Networks subsidiaries for funding; the impact of Nortel Networks defined benefit plans and deferred tax assets on results of operations, Nortel Networks cash flows and compliance with financial covenants; Nortel Networks dependence on new product development and its ability to predict market demand for particular products; Nortel Networks 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 Nortel Networks 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 Nortel Networks purchase contracts; risks associated with a consolidation of Nortel Networks common shares; the impact of Nortel Networks 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 Nortel Networks strategic alliances; and the adverse resolution of litigation, investigations, 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.