TORONTO, May 26 /CNW/ - Nortel Networks (NYSE/TSE: NT) and Architel
Systems Corporation (Nasdaq: ASYC/TSE: ASY) today announced that Architel has
received an interim court order authorizing the calling and holding of a
special meeting of the shareholders of Architel on June 26, 2000 to approve a
plan of arrangement whereby Nortel Networks will acquire Architel. The record
date for the meeting is May 21, 2000. This approval follows the recent receipt
of an advanced ruling certificate from the Canadian Competition Bureau with
respect to the transaction.
    Nortel Networks and Architel announced on April 19, 2000 the entering
into of an agreement whereby Nortel Networks will acquire all of the common
shares of Architel, a global leader in software systems that allow service
providers to rapidly provide Internet and other next-generation Internet
Protocol (IP) services, for an estimated US$395 million in Nortel Networks
common shares.
    The transaction, which is expected to close in the early third quarter of
2000, is subject to other regulatory approvals, court approval, the approval
by Architel's shareholders and customary closing conditions. The board of
directors of both companies have approved the transaction.
    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
    Architel develops, markets and supports advanced Operations Support
Systems used in the global communications industry. Architel is a recognized
leader in providing next generation provisioning solutions with Carrier Grade
reliability. Architel's provisioning solutions have been installed in some of
the world's most demanding wireline, wireless and data/IP environments.
Architel's Carrier Grade products are comprised of its flagship product ASAP,
for service activation, as well as OMS for order management, Objectel for
network inventory and InterGate, the interconnection gateway solution. For
further information on Architel Systems Corporation, please call the Investor
Relations line at (416) 674-4086 or visit Architel's World Wide Web site at
http://www.Architel.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; and the impact of increased provision of customer financing 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.



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For further information: Business Media: Jeff Ferry, Nortel Networks,
(703) 712-8339, jferry@nortelnetworks.com; Investor Relations: Nortel 
Networks, (905) 863-6049, 888-901-7286, investor@nortelnetworks.com; Dan 
Vermeire, Architel Systems Corporation, (214) 570-1406,
d.vermeire@Architel.com.
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