Big Brother will know where you are. Advertisers will know where you are. But will *you* know where you are? Or when they know where you are? http://www.nortelnetworks.com/corporate/news/newsreleases/2000c/10_11_000066 9_cambridge_positioning.html Nortel Networks, Cambridge Positioning Systems Plan to Develop Location Technology BARCELONA, Spain - Nortel Networks* [NYSE/TSE: NT] and Cambridge Positioning Systems (CPS) have signed a letter of intent to jointly develop Location Technology for 3G (UMTS) wireless networks. The resulting products, to be developed once the parties successfully negotiate a final license agreement, will provide location-based, value-added services for 3G network operators. CPS will develop Location Technology based on the Observed Time Difference of Arrival (OTDOA) standard. This is an extension of its success in promoting the 2G equivalent - Enhanced Observed Time Difference (E-OTD). Nortel Networks will integrate and market CPS products into its e-mobility* Location Center, part of an end-to-end solution for Wireless Internet. Nortel Networks believes that OTDOA will become a powerful location method that will have minimal cost impact on both handsets and infrastructure. Nortel Networks e-mobility Location Center is a pivotal component in the next generation Wireless Internet. The e-mobility Location Center is the intelligent hub/gateway between a suite of location determination technologies and mobility applications and services. Nortel Networks strategy is to pursue an open standard and standards compliant universal platform that will enable integration of best-in-class location determination technologies. This will allow Nortel Networks to provide a fully tested and integrated, carrier grade, end-to-end solution for location determination, management and interface into value-added applications and services. In a recent study, the Strategis Group projected a mobile location market estimated at more than US$30 billion in 2005. "We are driving the evolution of a profitable, new high-performance Internet," said Alastair Westgarth, vice president, Wireless Internet, Nortel Networks. "With this effort, CPS and Nortel Networks will be able to provide consumers and businesses with speedy downloads of location-based services on mobile devices, whether they be mobile phones, handheld devices or laptop computers." "This letter of intent today builds on the work in 2G that we have been concluding with Nortel Networks," said Chris Wade, chief executive officer, Cambridge Positioning Systems. "We believe that location enablement will be a fundamental technology platform for 3G networks." Cambridge Positioning Systems Limited (CPS) is a company focusing on the provision of Mobile Location systems and services for mobile phone users. CPS has two product streams to its business: its high accuracy location technology called Cursor and a wide range of location-based applications for corporate and consumer use called Coverge. Visit us at www.cursor-system.com. Nortel Networks is a global Internet and communications leader with capabilities spanning Optical, Wireless, Local Internet and eBusiness. The Company had 1999 U.S. GAAP revenues of US$21.3 billion and serves carrier, service provider and enterprise customers globally. Today, Nortel Networks is creating a high-performance Internet that is more reliable and faster than ever before. It is redefining the economics and quality of networking and the Internet, promising a new era of collaboration, communications and commerce. Visit us at www.nortelnetworks.com. 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 impact of price and product competition; the dependence on new product development; the impact of rapid technological and market change; the ability of Nortel Networks to make acquisitions and/or integrate the operations and technologies of acquired businesses in an effective manner; general industry and market conditions and growth rates; international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of consolidations in the telecommunications industry, the uncertainties of the Internet; stock market volatility; the ability of Nortel Networks to recruit and retain qualified employees; and the impact of increased provision of customer financing by Nortel Networks. For additional information with respect to certain of these and other factors, see the reports filed by Nortel Networks with the United States Securities and Exchange Commission. 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 e-mobility are trademarks of Nortel Networks. Contact for Press and Analysts: Beatrice Germain Nortel Networks 33 6 85 74 35 65 germainb@nortelnetworks.com Susan Kwon Nortel Networks 972-684-5701 skwon@nortelnetworks.com Thanks! Bill Bill Stewart, bill.stewart@pobox.com PGP Fingerprint D454 E202 CBC8 40BF 3C85 B884 0ABE 4639