Nortel Networks Advances Optical Leadership Position 

    ATLANTA, May 26 /CNW/ - Nortel Networks (NYSE/TSE: NT) has once again
been confirmed as the global market leader in delivering high-performance
optical solutions by the latest figures released from the Dell'Oro Group, an
independent research and consulting firm. Dell'Oro's worldwide market data for
the first quarter 2000 US$5.2 billion Dense-Wavelength Division Multiplexing
(D-WDM) and SONET/SDH optical networking market demonstrate Nortel Networks'
continued momentum in both key segments of the Optical Internet.
    For the first quarter of 2000, Nortel Networks again led the competition
and took the number one position with a global market share of more than 36
percent for D-WDM and SONET/SDH Optical Internet solutions.
    According to Dell'Oro, Nortel Networks captured 45.5 percent of the first
quarter 2000 US$1.5 billion D-WDM market. Dell'Oro's figures confirm Nortel
Networks' leadership in the burgeoning D-WDM metro arena with a dynamic 71.1
percent share of the market. In delivering long-haul solutions, Nortel
Networks further extends its leadership by securing 44.6 percent in market
share.
    In the SONET/SDH market, Nortel Networks was again number one in the
first quarter 2000 US$3.68 billion market with 33.3 percent, doubling the
market share of the closest competitor.
    "Dell'Oro's market data validate Nortel Networks' optical strategy, and
reinforce what service providers have already recognized - that our Optical
Internet solutions are simply unbeatable in terms of speed, capacity,
performance, reliability and economics," said Don Smith, president, Optical
Internet, Nortel Networks.
    This is the second affirmation by the Dell'Oro Group of Nortel Networks'
global leadership in delivering the high-performance Optical Internet. In
March 2000, Dell'Oro announced that Nortel Networks took the number one
position with a global market share of 30 percent for D-WDM and SONET/SDH
Optical Internet solutions for 1999.
    Nortel Networks is setting the pace for the industry with market-leading
optical systems and component technology, a powerful next-generation
portfolio, and complete customer fulfillment from service and network planning
to deployment, management, and support on a global basis.
    More than 16 million lambda miles of Nortel Networks' D-WDM systems have
been installed across the globe, which is the equivalent of 25 round trips to
the moon.
    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.

    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 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; unanticipated impact of
Year 2000 issues; and the impact of consolidations in the telecommunications
industry. 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.



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For further information: Media Relations: Jeff Ferry, Nortel Networks
(703) 712-8339, jferry@nortelnetworks.com; Media Relations:
Investor Relations: Nortel Networks (905) 863-6049, 888-901-7286,
investor@nortelnetworks.com.
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