NEWS

The awards and winners are as follows:

• Supplier of the Year – Motorola Computer Group (www.motorola.com/computers)
• Supplier Representative of the Year – Don Donaldson, AMD (www.amd.com)
• Innovation for technology suppliers – Wind River Systems (www.windriver.com)
• Innovation for services suppliers – Mercury Alliance (www.realliancegroup.com/mercury/)
• Quality and Service Award for technology suppliers – Agilent Technologies (www.agilent.com)
• Quality and Service Award for services suppliers – Convergys Corporation, Customer Management Group (www.convergys.com)

TORONTO – June 18, 2004- Nortel Networks* (NYSE/TSX: NT) has honored the outstanding achievements of its Strategic and Preferred suppliers with the presentation of its annual Supplier Awards. The awards were presented during the recent annual Nortel Networks Supplier Forum attended by 250 top executives from around the world, representing the Company’s 140 Strategic and Preferred suppliers and Global Alliance Partners**. The executives gathered to learn about the Company’s strategies and direction from Nortel Networks senior executives.

“These awards recognize that our suppliers are absolutely critical to Nortel Networks success in delivering the high quality, cost-competitive, leading-edge products, systems, and services that enable our customers to compete effectively in markets around the globe and build greater market share,” said Bill Owens, president and chief executive officer, Nortel Networks. “Our competitive environment is rigorous and the management of our global supply chain needs to mirror that reality.”

The awards were presented by Chahram Bolouri, president, Global Operations, Nortel Networks, and John Haydon, vice president, Global Supply Management, Nortel Networks.

“The award winners were judged on the value, velocity, and vision that they consistently delivered to Nortel Networks over the past year,” said Haydon. “With Nortel Networks directing an ever increasing amount of its business to our Strategic and Preferred suppliers, close collaboration with this group of companies is paramount to helping enable a superior competitive advantage.”

About Nortel Networks
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 or www.nortelnetworks.com/media_center

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Media Contacts:
Tina Warren
Nortel Networks
(905) 863-4702
tinawarr@nortelnetworks.com

Shannon Reid
Motorola Computer Group
(602) 437-6701
Shannon.reid@motorola.com

Contact Information
Jessica Miller
Global Corporate Communications