Nortel

Nortel
Johnson Controls, Inc.

January 31, 2005 09:00 ET

Johnson Controls Renews Global Managed Telephony Services Agreement with Nortel; Nortel Solution Allows Johnson Controls to Focus on Core Business


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NORTEL

NYSE, TSX SYMBOL: NT

AND JOHNSON CONTROLS, INC.

NYSE SYMBOL: JCI

JANUARY 31, 2005 - 09:00 ET

Johnson Controls Renews Global Managed Telephony
Services Agreement with Nortel; Nortel Solution Allows
Johnson Controls to Focus on Core Business

SANTA CLARA, Calif.--(CCNMatthews - Jan 31, 2005) -

Johnson Controls, Inc. (NYSE:JCI), a leading manufacturer of automotive
systems and building controls, has signed an agreement to extend and
expand its Global Managed Network Services relationship with Nortel
(NYSE:NT) (TSX:NT) for six years through 2010.

The Nortel services solution positions Johnson Controls to realize
operational savings and enhanced network reliability and performance.
This allows Johnson Controls to focus on its core business.

Under the agreement, Nortel will continue to provide comprehensive,
around-the-clock network management, project management and professional
services for Johnson Controls' global network, which supports its
workforce across several hundred sites in the Americas and Europe. This
network is powered by a full suite of Nortel voice and security
solutions encompassing its PBX and call center environment.

The network outsourcing relationship with Nortel covers virtually all of
Johnson Controls' needs -- from dial-tone and voice mail management to
call center networking -- and includes the management of third-party
systems. This relationship began in 2000, when Johnson Controls selected
Nortel to manage the real-time networking and communications service
requirements of its workforce.

"Nortel offers a powerful network management outsourcing solution that
continues to bring us operational savings, productivity gains and
industry-leading solutions," said Mark Schoeppel, vice president, Global
Infrastructure, Johnson Controls. "Equally important to Johnson Controls
are Nortel's overall operations management methodology and proven
ability to support a global customer. Nortel understands what it takes
to deliver on a relationship of this scope and scale. Its commitment to
flexibility, shared goals and customer satisfaction are what make this
relationship successful."

"Managed services are critical for companies that don't want the
challenges of deploying, managing and maintaining a reliable
communications infrastructure and would prefer to outsource those
activities to the experts," said Zeus Kerravala, vice president,
Enterprise Infrastructure, Yankee Group. "The managed services business
will continue to provide growth for Nortel while meeting a critical need
for enterprises and other entities that want to focus on their core
business activities."

Nortel's Managed Network Services are designed to provide flexible
communications infrastructure solutions with carrier-grade reliability.
Nortel provides Managed Network Services to more than 70 enterprise and
service provider customers worldwide.

"This extension of our relationship with Johnson Controls demonstrates
our momentum in providing Managed Network Services to enterprises," said
Michael Pangia, vice president, Global Operations and Services,
Enterprise, Nortel. "It reaffirms the unique value proposition Nortel
can extend to customers."

"We understand what it takes to build, deploy and manage enterprise
networks with the reliability and productivity benefits that our
customers demand," Pangia said. "By combining the strengths of our
global channel partners with our own network expertise and support
infrastructure, we are able to deliver to our customers an
industry-leading managed network solution. Nortel Managed Network
Services allow companies of all sizes in all industries to reap the
benefits of being able to focus on their business without distraction."

Over 93 percent of the top 100 manufacturing companies -- including
aerospace, pharmaceutical, automotive, and IT companies -- run on Nortel
solutions. Nortel's Managed Network Services help to ease customer
transition to next generation technologies, reduce financial risk
through predictable network support and operations costs, and improve
network performance and reliability. Nortel's world-class Global Managed
Network Services infrastructure supports in excess of 250,000 voice
ports and 10,000 data elements for some of the largest, most
sophisticated enterprises and service providers in the world.

About Johnson Controls, Inc.

Johnson Controls, Inc. is a global market leader in automotive systems
and facility management and control. In the automotive market, it is a
major supplier of integrated seating and interior systems, and batteries
to BMW, DaimlerChrysler, Ford, General Motors, Honda, Mazda, Mitsubishi,
Nissan, Renault, Rover, Toyota and Volkswagen. For non-residential
facilities, Johnson Controls provides control systems and services
including comfort, energy and security management to Ameritech,
GlaxoSmithKline, JCPenney and Novartis as well as 7,000 U.S. school
districts, more than 2,000 hospitals and tens of thousands of other
non-residential and government buildings. Johnson Controls (NYSE:JCI),
founded in 1885, has headquarters in Milwaukee, Wis. Its sales for 2003
totaled $22.6 billion. JCI employs over 118,000 employees across 500
sites with operations spanning the globe. For more information on
Johnson Controls, Inc., visit the company's web site at
www.johnsoncontrols.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 and the Globemark are trademarks of Nortel
Networks.

Use of the terms "partner" and "partnership" does not imply a legal
partnership relationship between Nortel and any other party.

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