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Nortel Networks Trials CDMA Circuit Switched Data

November 20, 1998

Nortel company press release

LOS ANGELES - Nortel Networks* [NYSE: NT/TSE: NTL] is conducting live trials of cdmaOne* (IS-95 CDMA) circuit switched data (IS-707) services with Bell Mobility and other selected customers, and in the Nortel Networks Wireless Internet Lab in Dallas.

The announcement was made in conjunction with the 1998 CDMA Americas Congress this week in Los Angeles.

"This technology provides fast, reliable access to the Internet, to corporate intranets and to commercial information services," said Dave Murashige, vice-president, CDMA marketing and product line management, Nortel Networks. "And by leveraging existing CDMA infrastructure, it does so cost-effectively."

Nortel Networks CDMA circuit switched data - with optional FastConnect capability - permits mobile and fixed wireless users on 800 and 1900 MHz CDMA networks to connect to the Internet, to send and receive e-mail messages and faxes, and to access mission-critical corporate information resources.

FastConnect enables mobile-originated data calls to bypass the public voice telephone network and connect directly to packet data networks. This improves performance by significantly reducing connect time, and cuts cost by eliminating the need for modem pools.

Nortel Networks CDMA circuit switched data capability is included in the MTX 07 software release now available for DMS*-MTX* digital mobile switching systems.

The Nortel Networks Wireless Internet Lab is a multimillion-dollar effort on the part of industry, universities and operators to develop end-to-end wireless Internet and multimedia services. Nortel Networks CDMA digital wireless networks are in service or under construction in more than 80 cities around the world, serving more than a million subscribers. Nortel has shipped more than 7,000 CDMA base stations.

Nortel Networks works with customers worldwide to design, build, and deliver telephony and IP-optimized networks. Customers include public and private enterprises and institutions; Internet service providers; local, long-distance, cellular and PCS communications companies, cable television carriers, and utilities. Nortel Networks common shares are listed on the New York, Toronto, Montreal, Vancouver, and London stock exchanges.

Nortel Networks had 1997 revenues of US$15.5 billion and Bay Networks, a wholly owned subsidiary of Nortel Networks, had revenues of US$2.4 billion during its most recent fiscal year. The combined company's workforce totals approximately 80,000 employees worldwide. * cdmaOne is a trademark of the CDMA Development Group. * Nortel Networks, DMS, DMS-MTX, the Nortel Globemark and How the world shares ideas are trademarks of Northern Telecom.

For more information:

Ross Heupel Nortel Networks (972) 685-1205 ross.heupel@nortelnetworks.com

Mark Buford Nortel Networks (972) 684-8512 mark.buford@nortelnetworks.com

Or visit Nortel Networks' web-site at www.nortelnetworks.com