(NT.TO) APUA PCS Selects Nortel Networks for GPRS Wireless Data Network in Antigua, Barbuda; Will Be Positioned to Offer Advanced Wireless Services, Drive New Revenues

ST. JOHN’S, Antigua–(BUSINESS WIRE)–June 27, 2003–Antigua Public Utilities Authority (APUA) PCS has selected Nortel Networks (NYSE:NT)(TSX:NT) to deploy a next generation GPRS (General Packet Radio System) wireless network, positioning the operator to provide new and advanced wireless data services to subscribers on the islands of Antigua and Barbuda.

Under a new supply agreement, Nortel Networks will implement its complete Wireless Data Network GPRS solution, upgrading the operator’s existing GSM infrastructure to enable delivery of value-added services that can help APUA PCS drive new revenue opportunities. The new network is expected to be in service by year end 2003, and will position APUA PCS to offer subscribers in Antigua and Barbuda, as well as visitors, ‘always on’ access to wireless data applications like mobile Web browsing, multimedia messaging, and m-commerce.

“We are continuously striving to provide world-class communications services to the people of Antigua and Barbuda, empowering them with the essential tools for achieving success,” said Julian Wilkins, manager of Mobile Services for APUA PCS. “We selected Nortel Networks based on their proven expertise in deploying advanced wireless infrastructures around the world, as well as their understanding of our business objectives.”

“Nortel Networks is a global provider of cutting-edge communications networks and a leading supplier of GSM/GPRS technology,” said Norberto Milan, managing director, Caribbean Region, Nortel Networks. “Over the last three decades, we have worked very closely with our Caribbean customers. We’ve gained regional experience that’s second to none, putting us in a strong position to provide innovative customers like APUA PCS with advanced networks that can help them drive new revenues while keeping down operational costs.”

Nortel Networks has supported GSM network planning and deployment for APUA PCS since it started offering wireless services in 2000, implementing the first GSM network in the English-speaking Caribbean. Wireless Data Network infrastructure to be deployed for APUA PCS under the new agreement will include Nortel Networks GSM S12000 Base Transceiver Station (BTS) Indoor and Outdoor radio equipment; GSM Base Station Controllers (BSC); and Mobile Switching Center (MSC) for the IP network core.

Nortel Networks has deployed 80 GSM/GPRS networks in more than 50 countries and is supplying GSM/GPRS systems to enable Wireless Data Network services for more than 50 operators around the world. In the Caribbean, Nortel Networks is working with customers like Cable & Wireless West Indies, the Bahamas Telecommunications Company, Sunbeach in Barbados, and TSTT in Trinidad and Tobago to build out their GSM/GPRS networks. Nortel Networks is the industry’s only supplier with Wireless Data Networks operating in all three advanced technologies — GPRS, CDMA2000 and UMTS.

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.

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 severity and duration of the industry adjustment; the sufficiency of our 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; fluctuations in operating results and general industry, economic and market conditions and growth rates; the ability to recruit and retain qualified employees; fluctuations in cash flow, the level of outstanding debt and debt ratings; the ability to meet financial covenants contained in our credit agreements; the ability to make acquisitions and/or 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; 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; the dependence on new product development; the uncertainties of the Internet; the impact of the credit risks of our customers and the impact of customer financing and commitments; stock market volatility; the entrance into an increased number of supply and outsourcing contracts which contain delivery and installation provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; the future success of our strategic alliances; and the adverse resolution of litigation. 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. 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.

Nortel Networks, the Nortel Networks logo and the Globemark are trademarks of Nortel Networks.