Verizon Wireless Deploys Nortel Networks Infrastructure in Las Vegas, San Diego

LAS VEGAS, NV — Verizon Wireless, the nation's largest wireless carrier, has deployed wireless network infrastructure equipment from Nortel Networks* [NYSE/TSE: NT] in Las Vegas and San Diego, the companies announced today.

Part of an estimated US$500 million supply agreement for wireless and optical equipment announced last year, this new infrastructure is expected to provide additional features, increased digital capacity and improved reliability. Trials have already been completed, and the networks are already carrying live voice traffic in both cities.

Both networks are designed to support evolution to third generation (3G) cdma2000* 1XRTT, which Verizon Wireless plans to begin deploying later this year. With 1XRTT, the Las Vegas and San Diego networks will be capable of moving data at rates up to 144 kilobits per second (kbps), 10 times faster than generally available today.

"Verizon Wireless is dedicated to offering its customers the best quality network in the industry," said Ed Salas, vice president, network planning, Verizon Wireless. "The new network capabilities in San Diego and Las Vegas will help us to offer leading edge, cost-effective services to our customers and at the same time prep the network for 3G services."

"In addition to increasing our digital footprint with Verizon Wireless, these new networks will help to unleash the new, high-performance Wireless Internet by easing the evolution to 1XRTT and next generation wireless services," said Steve Slattery, vice president, Wireless Access, Nortel Networks.

About Verizon Wireless

Verizon Wireless is the largest wireless communications provider in the U.S. with 27.5 million wireless voice and data customers. The new coast-to-coast wireless provider was formed by the combination of the U.S. wireless businesses of Bell Atlantic Corp. and GTE Corp -- now Verizon Communications (NYSE:VZ) -- and Vodafone (NYSE and LSE: VOD). The new company includes the assets of Bell Atlantic Mobile, AirTouch Cellular, GTE Wireless, PrimeCo Personal Communications and AirTouch Paging. The company has a footprint covering nearly 90 percent of the U.S. population, 49 of the top 50 and 96 of the top 100 U.S. markets. Verizon Wireless, headquartered in Bedminster, NJ, is 38,000 employees strong. Reporters and editors can find more information about the company on the Web at http://www.verizonwireless.com.

Nortel Networks is a global Internet and communications leader with capabilities spanning Optical, Wireless, Local, Personal Internet and eBusiness. The Company had 2000 U.S. GAAP revenues of US$30.3 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, promising a new era of collaboration, communications and commerce. Visit us 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 impact of price and product competition; the dependence on new product development; the impact of rapid technological and market change; the ability of Nortel Networks to make acquisitions and/or integrate the operations and technologies of acquired businesses in an effective manner; general industry and market conditions and growth rates; international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of consolidations in the telecommunications industry, the uncertainties of the Internet; stock market volatility; the ability of Nortel Networks to recruit and retain qualified employees; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; the impact of the credit risks of our customers; the entrance by Nortel Networks into an increased number of supply, turnkey, and outsourcing contracts which contain delivery, installation, and performance provisions, which, if not met, could result in Nortel Networks having to pay substantial penalties or liquidated damages; and the impact of increased provision of customer financing and commitments by Nortel Networks. 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. 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.

*Nortel Networks, the Nortel Networks logo and the Globemark are trademarks of Nortel Networks. cdma2000 is a trademark of the Telecommunications Industry Association (TIA).

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