Nortel
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Nortel
BellSouth Corporation

January 31, 2005 11:37 ET

CORRECTION FROM SOURCE: BellSouth Chooses Nortel Contact Center and Speech Solutions; Migrates 22 Contact Centers to Next Gen Technology to Better Serve Customers


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NORTEL NETWORKS

TSX, NYSE SYMBOL: NT

AND BELLSOUTH CORPORATION

NYSE SYMBOL: BLS

JANUARY 31, 2005 - 11:37 ET

CORRECTION FROM SOURCE: BellSouth Chooses Nortel
Contact Center and Speech Solutions; Migrates 22
Contact Centers to Next Gen Technology to Better Serve
Customers

DALLAS, TEXAS--(CCNMatthews - Jan. 31, 2005) - In the release issued
Jan. 31, 2005: First sentence under About BellSouth should read:
BellSouth Corporation is a Fortune 100 communications company
headquartered in Atlanta, Georgia and a parent company of Cingular
Wireless, the nation's largest wireless voice and data provider.
(instead of: BellSouth Corporation is a Fortune 100 communications
company headquartered in Atlanta, Georgia and a parent company of
Cingular Wireless, the nation's second largest wireless voice and data
provider.)

The corrected release reads:

BELLSOUTH CHOOSES NORTEL CONTACT CENTER AND SPEECH SOLUTIONS; MIGRATES
22 CONTACT CENTERS TO NEXT GEN TECHNOLOGY TO BETTER SERVE CUSTOMERS

The telephone operating subsidiary of BellSouth Corporation (NYSE:BLS)
has selected enhanced IP contact center and speech solutions from Nortel
(TSX:NT)(NYSE:NT) for deployment in 22 locations across nine states.
According to recent Frost & Sullivan market research, Nortel has
designed and deployed over 200 speech applications for automating and
improving routine business functions in more than 16 countries.

"BellSouth needed a comprehensive solution that could provide
skill-based routing, e-mail, chat and other multimedia and collaboration
applications," said Richard Burns, vice president - centers and
operations support, BellSouth. "Nortel is able to provide this in a
cost-effective manner that allows us to better serve our customers."

BellSouth is migrating to Nortel's latest Internet Protocol (IP) contact
center solution to create versatile, end-to-end customer contact centers
to better serve its customer base of more than 21 million access lines
and 2 million DSL customers and BellSouth Long Distance, Inc.'s 6
million long-distance customers. BellSouth is also migrating its Nortel
Meridian 1 solution to software version 4.0 of the Communications Server
(CS 1000) IP PBX platform to provide increased scalability and
flexibility, providing a choice of migration paths to an IP multimedia
environment and improved customer service. Nortel's Symposium portfolio
is a diverse suite of customer interaction solutions for customer
contact centers.

The ability to migrate gracefully to IP is a critical capability of
Nortel's IP Contact Center, enabling companies to leverage the benefits
of IP Telephony without having to overhaul or purchase completely new
communications infrastructures. Customers can use the Symposium Call
Center Server with CS 1000 to leverage the power and performance of
convergence.

"This agreement builds on Nortel's continued strong relationship with
BellSouth," said Roxann Swanson, vice president and general manager,
enterprise multimedia applications, Nortel. "For more than 22 years,
BellSouth has deployed Nortel solutions spanning voice and data
products."

The award-winning Symposium suite enables businesses to take advantage
of powerful capabilities like skill-based routing, comprehensive
management and reporting, and real-time displays to enhance the human
experience, resulting in stronger, more profitable relationships.

About BellSouth

BellSouth Corporation is a Fortune 100 communications company
headquartered in Atlanta, Georgia and a parent company of Cingular
Wireless, the nation's largest wireless voice and data provider.

Backed by award winning customer service, BellSouth offers the most
comprehensive and innovative package of voice and data services
available in the market. Through BellSouth Answers®, residential and
small business customers can bundle their local and long distance
service with dial up and high speed DSL Internet access, satellite
television and Cingular® Wireless service. For businesses, BellSouth
provides secure, reliable local and long distance voice and data
networking solutions. BellSouth also offers online and directory
advertising through BellSouth® RealPages.com® and The Real Yellow
Pages®.

More information about BellSouth can be found at www.bellsouth.com.

About Nortel

Nortel is a recognized leader in delivering communications capabilities
that enhance the human experience, ignite and power global commerce, and
secure and protect the world's most critical information. Serving both
service provider and enterprise customers, Nortel delivers innovative
technology solutions encompassing end-to-end broadband, Voice over IP,
multimedia services and applications, and wireless broadband designed to
help people solve the world's greatest challenges. Nortel does business
in more than 150 countries. For more information, visit Nortel on the
Web at www.nortel.com. For the latest Nortel news, visit
www.nortel.com/news.

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 outcome of regulatory and
criminal investigations and civil litigation actions related to Nortel's
restatements and the impact any resulting legal judgments, settlements,
penalties and expenses could have on Nortel's results of operations,
financial condition and liquidity; the findings of Nortel's independent
review and implementation of recommended remedial measures; the outcome
of the independent review with respect to revenues for specific
identified transactions, which review will have a particular emphasis on
the underlying conduct that led to the initial recognition of these
revenues; the restatement or revisions of Nortel's previously announced
or filed financial results and resulting negative publicity; the
existence of material weaknesses in Nortel's internal controls over
financial reporting; the impact of Nortel's and NNL's failure to timely
file their financial statements and related periodic reports, including
breach of its support facility and public debt obligations and Nortel's
inability to access its shelf registration statement filed with the
United States Securities and Exchange Commission (SEC);
ongoing SEC reviews, which may result in changes to our public filings;
the potential delisting or suspension of Nortel's and NNL's publicly
traded securities; the impact of management changes, including the
termination for cause of Nortel's former CEO, CFO and Controller in
August 2004; the sufficiency of Nortel's restructuring activities,
including the work plan announced on August 19, 2004 as updated on
September 30, 2004, including the potential for higher actual costs to
be incurred in connection with restructuring actions compared to the
estimated costs of such actions; cautious or reduced spending by
Nortel's customers; fluctuations in Nortel's operating results and
general industry, economic and market conditions and growth rates;
fluctuations in Nortel's cash flow, level of outstanding debt and
current debt ratings; Nortel's ability to recruit and retain qualified
employees; the use of cash collateral to support Nortel's normal course
business activities; the dependence on Nortel's subsidiaries for
funding; the impact of Nortel's defined benefit plans and deferred tax
assets on results of operations and Nortel's cash flow; the adverse
resolution of class actions, litigation in the ordinary course of
business, intellectual property disputes and similar matters; Nortel's
dependence on new product development and its ability to predict market
demand for particular products; Nortel's ability to 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; barriers to 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; changes in
regulation of the Internet; the impact of the credit risks of Nortel's
customers and the impact of customer financing and commitments; stock
market volatility generally and as a result of acceleration of the
settlement date or early settlement, which is currently not available,
of Nortel's forward purchase contracts; the impact of Nortel's supply
and outsourcing contracts that contain delivery and installation
provisions, which, if not met, could result in the payment of
substantial penalties or liquidated damages; and the future success of
Nortel's strategic alliances.

For additional information with respect to certain of these and other
factors, see the most recent Annual Report on Form 10-K filed by Nortel
with the SEC. Unless otherwise required by applicable securities laws,
Nortel 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, the Nortel logo, the Globemark, Symposium, Meridian and Meridian
1 are trademarks of Nortel Networks.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Nortel
    Jennifer McClain
    (972) 684-4844
    jmcclain@nortel.com