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Nortel Networks Kidz Online, NASA Center for Distance Learning Awarded Million Dollar Grant

Business Wire - October 19, 2004

WASHINGTON -- Selected by U.S. Department of Labor to Train Workers for Jobs in Geospatial Technology

The United States Department of Labor has awarded a US$1 million grant to Nortel Networks Kidz Online, a non-profit digital education service, and the NASA Center for Distance Learning to conduct a special, two-year educational program that will use interactive multimedia tools and broadband connectivity to train workers of the future for jobs related to geospatial technology.

Called the Geo 21 Project, it was designed in response to the "High Growth Job Training Initiative" of President George W. Bush. This initiative identifies expanding industries and works to find ways to create a pipeline of workers with the necessary advanced skills.

"Nortel Networks enjoys a very rich history of developing solutions that enhance the human experience and society," said Bill Owens, president and chief executive officer of Nortel Networks, the signature sponsor of Nortel Networks Kidz Online.

"We know to ensure teachers and students remain at the forefront of the 21st century Information Economy it is critical to embrace and leverage all the benefits of broadband," Owens said. "We are very proud of Nortel Networks Kidz Online and the role it plays in helping to maximize broadband's power and throw open the doors to rich, multimedia educational resources."

As part of the Geo 21 Project, Nortel Networks Kidz Online and the NASA Center for Distance Learning will create new video programming that will provide an overview of geospatial technology, outline career opportunities within the field, and explain the available training and educational resources. These videos will be available through public television, satellite, cable and Web-based video-on-demand services.

"It is important to get career information to young people while they can still plan their education path," said Phil Cruver, president, Nortel Networks Kidz Online. "Kidz Online will bring this exciting career information to classrooms throughout the country via the Web in a style and format that will inspire kids and teachers to explore opportunities in geospatial technologies."

For more information on the Geo 21 Project, please visit www.nnkol.org/21stcentury.

The NASA Center for Distance Learning is an educational partnership formed by Christopher Newport University and NASA Langley's Office of Education. The Center enhances grades K-16 by providing educators with free multimedia instructional programs that are research-, standards- and inquiry-based. It is based out of NASA's Langley Research Center in Hampton, Va. For more information, please visit http://dlcenter.larc.nasa.gov/.

Nortel Networks Kidz Online is a non-profit digital education service that strives to help students and teachers increase their knowledge of the rapidly changing world of technology, and to gain the expertise to integrate this technology into their ongoing teaching and learning. Nortel Networks is the signature sponsor of Kidz Online and provides the network equipment and ongoing support that enables millions of student sand teachers to remotely access the programs and services of the organization. Learn more at www.nnkol.org/corp/aboutus.asp.

As a global innovation leader, Nortel Networks enriches consumer and business communications worldwide by offering converged multimedia networks that eliminate the boundaries among voice, data and video. These networks use innovative packet, wireless, voice and optical technologies and are underpinned by high standards of security and reliability. For both carriers and enterprises, these networks help to drive increased profitability and productivity by reducing costs and enabling new business and consumer services opportunities. Nortel Networks does business in more than 150 countries. For more information, visit Nortel Networks on the Web at www.nortelnetworks.com or www.nortelnetworks.com/media_center.

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 Nortel Networks independent review and planned restatement or revisions of its previously announced or filed financial results; the impact of the management changes announced on April 28, 2004 and August 19, 2004; the impact of the inability to meet Nortel Networks filing obligations on support facilities and public debt obligations; the sufficiency of Nortel Networks 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 Networks customers; fluctuations in Nortel Networks operating results and general industry, economic and market conditions and growth rates; the communication by Nortel Networks auditors of the existence of material weaknesses in internal controls; Nortel Networks ability to recruit and retain qualified employees; fluctuations in Nortel Networks cash flow, level of outstanding debt and current debt ratings; the use of cash collateral to support Nortel Networks normal course business activities; the dependence on Nortel Networks subsidiaries for funding; the impact of Nortel Networks defined benefit plans and deferred tax assets on results of operations and Nortel Networks cash flows; Nortel Networks dependence on new product development and its ability to predict market demand for particular products; Nortel Networks 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 Networks 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 of Nortel Networks purchase contracts; the impact of Nortel Networks 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; the future success of Nortel Networks strategic alliances; and the adverse resolution of litigation, investigations, intellectual property disputes and similar matters.

For additional information with respect to certain of these and other factors, see the most recent Form 10-Q/A and Form 10-K/A filed by Nortel Networks with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel Networks 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 Networks, the Nortel Networks logo, the Globemark and Business Without Boundaries are trademarks of Nortel Networks.

WASHINGTON -- Selected by U.S. Department of Labor to Train Workers for Jobs in Geospatial Technology

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