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As announced in January, the company expects savings in the range of $250-$300 million (US) per year when the operations strategy is completed within the previously announced period of 18-36 months. The company is on target for achieving results in line with the guidance for 1999, and the actions announced will have no significant impact on 1999 financial performance from ongoing operations.** Nortel Networks delivers value to customers around the world through Unified Networks solutions, spanning mission-critical telephony and IPoptimized 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 1998 revenues of $17.6 billion (US) and has approximately 75,000 employees worldwide. * Nortel Networks, the Nortel Networks Globemark, Unified Networks, and how the world shares ideas are trademarks of Nortel Networks Corpo^ ^ ration. f^ v flv^. ** Certain financial information included in this press release is forwardV. ^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 integrate the operations and technologies and 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; unanticipated impact of Year 2000 issues; and the impact of consolidations in the telecommunications industry. For addi£ tional information with respect to certain of these and other factors, see the i reports filed by Nortel Networks with the United States Securities and CT~ Exchange Commission. Nortel Networks disclaims any intention or obliga- ^5"* ---- tion to update or revise any forward-looking statements, whether as a result "~ of new information, future events or otherwise. "3T"