DALLAS -- Nortel Networks (NYSE:NT)(TSX:NT) plans to enhance itsaward-winning enterprise convergence portfolio to help small- andmedium-sized businesses (SMBs) as well as enterprise branch officesdrive lower communication costs, simplify network operations and extendinfrastructure investments by eliminating single-purpose devices infavor of highly-reliable, multi-purpose converged solutions.

The enhancements will include Nortel Networks SurvivableRemote Gateway (SRG) and Nortel Networks Business Communication Manager(BCM) Release 3.6. Both are expected to be commercially available inlate May 2004.

"Recent analyst reports confirm our leadership position in IP(Internet Protocol) telephony, and we will continue to innovate tomaintain the trust of the marketplace," said Aziz Khadbai, generalmanager, Local Premise Solutions, Nortel Networks. "These solutionsoffer feature-rich IP telephony options that fit each customer need,allowing for IT investment protection and enabling customers to migrateto IP at their own pace."

Nortel Networks Survivable Remote Gateway has beenspecifically designed to extend the desktop features and user interfaceof Nortel Networks Succession 1000 IP PBX (private branch exchange)platform to give remote-site users full access to the same features andapplications available at the main corporate site.

SRG will also allow distribution of trunking across aSuccession 1000 and SRG wide area network (WAN) to provide true,least-cost routing and reduce toll costs. Local public switchedtelephone network(PSTN) access will be provided by SRG for local calls and E9-1-1. SRGwill provide a suite of IP-based data and routing capabilities,including dynamic host configuration protocol (DHCP), Web caching andVirtual Private Network (VPN) support.

Nortel Networks Corp.