TORONTO -- Nortel NetworksCorporation (NYSE:NT) (TSE:NT.) today announced that it will offer avoluntary stock option exchange program for its employees. Programdocumentation is expected to be delivered to eligible employees withinthe next 30 days upon commencement of the offer. "Employees are the most important asset of Nortel Networks and akey factor in helping us serve our customers and achieve our long-termgoals which will in turn enhance shareholder value," said John Roth,president and chief executive officer, Nortel Networks. "Stock options are a key component of a competitive rewardspackage in the global technology industry where competition for thebest talent is always fierce, even in a market downturn. This is anextraordinary step that is essential so we may continue to attract,retain and reward our talent in a highly competitive labor market." Under the planned program, eligible employees will be able totender for cancellation stock options that were granted on or afterNovember 12, 1999 under the Nortel Networks Corporation 1986 and 2000Stock Option Plans for new options expected to be issued on a datewhich is at least six months plus one day from the date ofcancellation of the tendered options. Board appointed officers andmembers of the board of directors of Nortel Networks will not beeligible to participate in the program.Nortel Networks Corp.