Nortel Beefs Up China R&D

BEIJING -- Nortel Networks (NYSE:NT)(TSX:NT) plans to invest US$200 million over three years to strengthen its research and development (R&D) capabilities in China. By the end of 2003, the Company expects to double its number of R&D employees in China year-over-year.

Nortel Networks also plans to construct a new, 55,000-square meter campus in Beijing's Chao Yang District under a memorandum of understanding on cooperation signed with the Beijing City Government. The first phase, which will provide 27,000 square meters, is scheduled for completion by late 2004.

"China is extremely important to Nortel Networks, both as a market and as a source for technology talent," said Frank Dunn, president and chief executive officer, Nortel Networks. "With our ongoing emphasis on R&D in China, we are strengthening our presence here to drive the most advanced customer network transformations on a timely basis. We expect to continue to leverage the technology and innovation we develop in China by deploying it in the global marketplace.

"I am personally excited by these initiatives in China," Dunn said. "We have been a strategic ally to our customers in China for more than 30 years, and I look forward to us playing a more significant role as the country advances to the next level of telecom capabilities and services."

Nortel Networks current R&D facilities in Beijing and Guangzhou will continue to play an important role alongside the new campus in developing IP (Internet Protocol)-based voice and multimedia services, third generation (3G) wireless services, next generation networking, and other leading edge technology solutions.

Nortel Networks Corp.