Nortel Confirms Guidance for 2000, 2001

[Toronto, CANADA] Nortel Networks (NYSE/TSE: NT) today confirmed its
guidance for 2000 and 2001, and specifically commented on its
expectations for the fourth quarter of 2000 and the first quarter of
2001.

“We continue to expect that our percentage growth in revenue and
earnings per share from operations in 2000 over 1999 will be in the
low 40s,” said John Roth, Nortel’s president and chief executive
officer.

“In response to specific requests for guidance on the fourth quarter
of 2000, we expect our revenue and earnings per share from operations
in the fourth quarter of 2000 will be in the range of US $8.5 billion
to US $8.8 billion and US $0.26 per share on a fully diluted basis,
respectively.”

“Overall, we expect continued strong growth in Optical Internet,
Wireless Internet, Local Internet and e-business solutions. We
continue to expect our optical Internet revenues to grow in excess of
125 percent in 2000 over 1999, to exceed US $10 billion.”

Looking forward to 2001, he said that the overall market is expected
to grow in excess of 20 percent and that Nortel expects to grow
significantly faster than the market, with anticipated growth in
revenues and earnings per share from operations in the 30 to 35
percent range.

“For the first quarter of 2001, consistent with historical profile
trends, we expect our revenue and earnings per share from operations
will be in the range of US $8.1 billion to US $8.3 billion and US $0.16
per share.”

Comprehensive links to recent InternetNews.com coverage of Nortel are
available in:
Nortel Wins US $935 Million Contract from Xfera, October 25, 2000
.

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