NETWORKS

TORONTO, CANADA -- Frank Dunn, president and chief executive officer (CEO), Nortel Networks (NYSE:NT)(TSE:NT.), announced today the appointment of D.G. (Greg) Mumford, 55, to the position of Chief Technology Officer (CTO), effective immediately. Mumford was previously president, Optical Long Haul Networks. He will be succeeded by Brian McFadden, 47. Commenting on the CTO appointment, Dunn said, "The appointment of Greg to the Chief Technology Officer position fills an important and strategic leadership role in the company and the industry. Technology is our lifeblood in an industry where innovation drives competition and customer value. "The CTO role in Nortel Networks requires a senior executive with the kind of strong leadership skills, technical background and experience, and passion for delivering value to customers Greg displayed as the driving force behind building our industry-leading position in long haul optical networks that deliver scalable, high-value capability for multimedia communications services." Mumford has held a wide range of senior executive and general management positions during his 30-year career with Nortel Networks. Most recently, he played a significant role in development of the company's breakthrough networking technology, including the industry's most successful 10 Gbps product portfolio; the first demonstrated 40 Gbps optical line system; and OPTera Connect HDX, a leading-edge optical switch designed to redefine network economics by helping network service providers to significantly reduce operating costs as they focus on improving their own profitability. "Thanks to Greg's leadership and commitment to driving the next generation optical long haul portfolio, including OPTera Connect HDX, we're in a position to proceed with the transition that sees him moving to the CTO position and Brian McFadden succeeding him as president of the optical long haul business," said Dunn. "It was important that before we made this transition, we had the HDX in production and in the process of being ready to ship to customer labs. With the HDX available to the market as the pillar of the next generation long haul optical networks, now is an excellent time for Greg's transition to the CTO role." As CTO, Mumford will lead the development of the next generation technology vision and roadmap for the company, working in close consultation with customers; identify network development opportunities and the Nortel Networks response; expand the company's position as an industry leader and innovator; and work closely with the company's general managers and business unit presidents to coordinate the network architectural solutions and customer value that Nortel Networks will offer in the years ahead. Dunn added that "one of Greg's primary responsibilities is to create a sense of community among the company's technology employees, and reinforce a culture that recognizes and rewards innovation and excellence." Commenting on his appointment, Mumford said, "In a company that has a long and proud history as a technology leader and innovator, I'm looking forward to contributing to our ongoing success in delivering high-performance communications networks and architectures that represent leading-edge value to our customers, and that enable our customers to deliver sophisticated and cost-effective services worldwide." He added, "Over the years, Nortel Networks has had a distinguished list of chief technology officers and industry leaders who have contributed to building our reputation for delivering leap-frog technologies and innovations that changed the way the world communicates and gains access to information. I am honored to have been selected and have the opportunity to build on our tradition for technology excellence." As CTO, Mumford will report to Dunn. He will be based at the company's central labs in Ottawa. Mumford has Bachelors and Masters of Applied Science degrees from the University of British Columbia. McFadden, in his new position as president, Optical Long Haul Networks, succeeding Mumford, will continue to be based in Montreal and will be a member of the CEO's executive team. McFadden has been part of Nortel Networks for 22 years. He has worked in leadership positions in systems engineering, product marketing, product management and general management. For additional information visit www.nortelnetworks.com