02.28.2000Corporate

Vodafone AirTouch, Nortel Networks Plan Wireless Internet Trial in Dallas

February 28, 2000-DALLAS-Vodafone AirTouch*
[NYSE/LSE: VOD] and Nortel Networks* [NYSE/TSE: NT]
will conduct a Wireless Internet trial in Dallas beginning in
March to demonstrate a packet-based, IP (Internet
Protocol) architecture designed to offer service providers
an order of magnitude improvement in the cost to deliver
high-quality wireless voice and data services for
consumers.

The trial is expected to show that the cost of wireless
service can be significantly reduced by transforming today's
circuit-switched networks to Unified Networks* solutions
using packet technology, industry-standard servers and
third-generation (3G) radio technology.

Part of an ongoing, cooperative effort to understand the
drivers, economics and technical realities of an all-IP
wireless network, the trial is also expected to showcase an
open architectural foundation for a new generation of
high-value, revenue-generating Wireless Internet services.

"We anticipate that more efficient wireless networks based
on IP and packet technology will allow us to bring greater
value and service differentiation to our customers while
reducing our operating costs," said Bill Keever, executive
vice president, network and systems operations, AirTouch
Cellular. "Our Wireless Internet trial with Nortel Networks
will help us to develop a better understanding of the
dramatic changes ahead for wireless networks, and the
architectures required to address them."

"We've driven down the cost of long distance and, with this
architecture, we expect to do the same for wireless while
providing the foundation for a new generation of services,"
said Hermon Pon, chief technology officer, wireless
solutions, Nortel Networks.

"Working with leading-edge customers like Vodafone
AirTouch, we're driving the evolution of a profitable new
Internet-a high-performance, highly-reliable engine for
economic growth," Pon said. "Together, we have the
networking, radio, IP and real-world customer experience to
help make the Wireless Internet a successful commercial
reality."

The trial will incorporate Nortel Networks' CDMA Metro Cell
radio base stations-using cdmaOne* digital radio
technology-with a backbone network featuring Nortel
Networks' Passport* packet switching equipment. The base
stations will be upgraded to include cdma2000* 1XRTT 3G
radio technology later in the year.

Vodafone AirTouch and Nortel Networks are also working
together on a 3G wireless trial in the UK. Announced in
December, this trial includes IP networking and W-CDMA 3G
wireless radio technology.

Vodafone AirTouch Plc, based in the United Kingdom, is the
world's largest wireless communications firm. It has mobile
operations in 24 countries on five continents, with more
than 35.5 million proportionate cellular customers. For more
information, visit the company's Web site at
www.vodafone-airtouch-plc.com.

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. Visit us at www.nortelnetworks.com.

----------

*Nortel Networks, the Nortel Networks logo, the Globemark,
Unified Networks, Passport and How the world shares ideas
are trademarks of Nortel Networks. cdmaOne is a trademark
of the CDMA Development Group. cdma2000 is a trademark
of the Telecommunications Industry Association (TIA).