Nortel

Nortel
Verizon

February 14, 2005 09:19 ET

Nortel, Verizon Deliver Healthcare Solutions to Leading Providers; Deployments Helping to Improve Patient Care, Lower Costs


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NORTEL

NYSE, TSX SYMBOL: NT

AND VERIZON

NYSE SYMBOL: VZ

FEBRUARY 14, 2005 - 09:19 ET

Nortel, Verizon Deliver Healthcare Solutions to
Leading Providers; Deployments Helping to Improve
Patient Care, Lower Costs

DALLAS--(CCNMatthews - Feb 14, 2005) -

Montefiore Medical Center and Cambridge Health Alliance, two of the
largest and most widely recognized healthcare systems in the United
States, have deployed communications solutions from Nortel
(NYSE:NT)(TSX:NT) and Verizon Enterprise Solutions Group to help provide
superior patient care and reduce costs.

The Cambridge Health Alliance communications network uses an optical
Ethernet service from Verizon in conjunction with the Nortel Optical
Metro 3500 multi-service platform. Montefiore Medical Center's network
uses an optical service from Verizon that uses the Nortel's Optical
Metro 5000.

These solutions have given both healthcare providers the increased
network speed and capacity necessary to support such advanced patient
care technologies as the Picture Archive Communications System (PACS),
which provides computerized management and distribution of X-rays,
Computed Tomography (CT), Magnetic Resonance Imaging (MRI) and other
diagnostic images.

With PACS and other advanced applications, Montefiore Medical Center and
Cambridge Health Alliance can make diagnostic imagery and other patient
files immediately available regardless of location, improving patient
care and maximizing the efficiency of such critical resources as
radiology personnel. In addition, both healthcare providers now have the
ability to converge voice and data traffic for greater efficiency and
lower costs, along with greater network flexibility to address current
and future communications needs.

"To take advantage of new healthcare applications like PACS, we need a
network that is fast and efficient," said Robert Lewis, director of
networks and telecom and chief information security officer, Cambridge
Health Alliance. "With the Verizon-managed Nortel healthcare
communications solution, we can now use the bandwidth available to us in
more flexible increments, as opposed to increasing capacity with costly
leased lines. Nortel and Verizon are helping us to maximize our network
resources and to expand them as needed in the future."

"Emerging technologies and applications are driving advancements in
healthcare and improving overall patient care," said Brian Hoch,
director of computing resources, Montefiore Medical Center. "By
implementing services from Verizon and Nortel, we are confident our
network can support currently available and new therapeutic and
diagnostic methods while providing the resiliency and security to ensure
that our mission-critical patient files and medical information are
always available."

These two new healthcare network deployments were announced at the 2005
Annual Healthcare Information Management Systems Society (HIMSS)
Conference and Exhibition being held February 13-17 at the Dallas
Convention Center. More than 15,000 healthcare organizations in the
United States and Canada rely on Nortel solutions.

Extending its commitment to delivering advanced technologies for the
healthcare market, Nortel also announced at HIMSS 2005 the development
of an innovative technology called Dynamic Resource Allocation
Controller (DRAC), which is designed to improve the flow of PACS digital
images. With DRAC, high priority, time-sensitive, applications and files
can be flagged to receive increased bandwidth at the time of data
transfer, ensuring real-time access to critical radiology images by
healthcare workers.

"We work with healthcare providers to improve service and enhance the
patient experience while striving to exceed ongoing communications needs
in an industry where service is of mission-critical importance," said
Dan Young, vice president, Global Industry Solutions Marketing, Nortel.
"There is no other industry where timely communications is more
essential."

Nortel demonstrations at HIMSS 2005 (booth numbers 143 and 6469) will
include industry-leading mobility solutions for nurses, doctors and
hospital administrators and business continuance, disaster recovery, and
data storage and retention solutions for hospitals and remote clinics,
as well as advanced radiology applications. Nortel will also offer
presentations from customers who are already benefiting from Nortel
healthcare communications solutions.

Healthcare-focused solutions from Nortel allow multiple networks to be
consolidated onto a single communications infrastructure, resulting in
improved network performance and positioning healthcare providers to
drive significant savings, reduce operating costs and improve patient
care. Nortel offers a range of enterprise, optical and wireless
solutions designed specifically to meet the requirements of healthcare
customers. These solutions include mobile healthcare applications,
security, high-performance networking, business continuity and disaster
recovery, IP (Internet Protocol) telephony, multimedia collaboration,
contact centers and self-service applications.

Verizon Enterprise Solutions Group is one of the leading providers of
basic and advanced communications products and services to large
business, government and education customers in the United States with a
complete range of voice, video, data and IP-related services. Verizon
Select Services, Inc. provides long-distance service for ESG. For more
information about VZ ESG's integrated network solutions, visit
www.verizon.com/enterprisesolutions.

About Cambridge Health Alliance

Cambridge Health Alliance is an innovative, award-winning health system
that provides high quality care in Cambridge, Somerville, Everett,
Revere, and Boston's Metro-North communities. It includes three
hospitals, more than 20 primary care practices, the Cambridge Public
Health Department, and the Network Health plan. With this unique model,
the Alliance is able to offer the finest health services, a diverse
working environment, and a premier training experience in
community-based medicine.

About Montefiore Medical Center

Established in 1884, Montefiore Medical Center serves the Bronx and
southern Westchester County. Today it is one of the largest healthcare
systems in the United States and a leading center for medical education
and research. Montefiore Medical Center has developed a comprehensive
care system, which includes three hospitals, a network of neighborhood
health centers, a wide range of ambulatory specialty services, home
healthcare, rehabilitation and nursing home care.

About Verizon

With more than $71 billion in annual revenues, Verizon Communications
Inc. (NYSE:VZ) is one of the world's leading providers of communications
services. Verizon has a diverse work force of more than 210,000 in four
business units: Domestic Telecom serves customers based in 29 states
with wireline telecommunications services, including broadband,
nationwide long-distance and other services. Verizon Wireless owns and
operates the nation's most reliable wireless network, serving 43.8
million voice and data customers across the United States. Information
Services operates directory publishing businesses and provides
electronic commerce services. International includes wireline and
wireless operations and investments, primarily in the Americas and
Europe. For more information, visit www.verizon.com.

VERIZON'S ONLINE NEWS CENTER: Verizon news releases, executive speeches
and biographies, media contacts, high quality video and images, and
other information are available at Verizon's News Center on the World
Wide Web at www.verizon.com/news. To receive news releases by e-mail,
visit the News Center and register for customized automatic delivery of
Verizon news releases.

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 and Quarterly
Report on Form 10-Q 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.

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