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Nortel Launches Supply Chain Center in Shanghai to Enhance Customer Value

Enhanced Management of Growing Supply Base in Asia

SHANGHAI, China – As part of an ongoing supply chain evolution intended to reduce cost and maximize quality, Nortel* [NYSE/TSE:NT] has launched a supply chain center in Shanghai. The Shanghai Supply Chain Center is the first in a series Nortel plans to deploy around the world and a major step in Nortel's strategy to create the industry's leading supply chain. Similar launches are being planned in India, North America, Eastern Europe and Mexico throughout 2005.

Nortel's Supply Chain Centers work closely with a wide range of global and regional suppliers by providing the best expertise available to ensure that all materials and processes meet Nortel's stringent quality standards and maximize cost effectiveness for manufacturing, network solutions and services. The Shanghai Supply Chain Center will be focused on managing these objectives with Nortel's fast-growing base of suppliers in Asia.

"This is another important step forward in Nortel's continued focus on optimizing global supply chain resources and investments to strengthen its competitive advantage while enhancing value for customers around the world," said Sue Spradley, president, Global Operations, Nortel. "With establishment of the Shanghai Supply Chain Center, we are applying 'best-in-class' manufacturing capabilities in the region with close supplier collaboration to ignite and power global commerce." http://www.nortel.com/corporate/news/newsreleases/2005a/03_02_05_shang_supply_chain.html