Nortel Networks - Acquisition

RNS Number:6368A
Nortel Networks Corp
10 November 1999


For more information:                            Kevin O'Brien
Media Relations:                                 Periphonics Corporation
Kris Hoover                                      [phone]
Nortel Networks                                  [e-mail]
[phone]
[e-mail]


Investor Relations:
Angela McMonagle
Nortel Networks
[phone]
[e-mail]


                    Periphonics Stockholders Approve
                Acquisition of Periphonics by Nortel Networks

BRAMPTON, Ontario and NEW YORK - Nortel Networks (NYSE/TSE:NT) and Periphonics
Corporation (NASDAQ:PERI) announced today that the acquisition of Periphonics by
Nortel Networks was approved by the Periphonics stockholders at the annual
meeting of stockholders held this morning in Hauppauge, New York.

The acquisition will be effected by the merger of a wholly-owned subsidiary of
Nortel Networks with and into Periphonics. Nortel Networks and Periphonics
expect that the merger will close on Friday, November 12, 1999.

On August 24, 1999, Nortel Networks and Periphonics announced the entering into
of a definitive merger agreement, whereby Nortel Networks will acquire
Periphonics. Nortel Networks and Periphonics announced the early termination of
the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of
1976 on October 6, 1999, and announced the clearance of the German Act Against
Restraints on Competition by the German Federal Cartel Office on October 27,
1999.

Periphonics Corporation is a global leader in the development, marketing and
support of products and professional services for Computer Telephony Integration
(CTI) and Telecom Enhanced Network Services. Periphonics' products and services
utilize such technologies as Interactive Voice Response (IVR), advanced speech
processing with large vocabulary recognition, natural language processing and
text-to-speech, as well as interactive processing via Web browsers, messaging,
and fax. Periphonics' products and professional services help its customers
enhance their customer service offerings, increase caller satisfaction, reduce
operating costs and create new revenue opportunities. Periphonics is an ISO
9001/TickIT registered company with systems installed in more than 50 countries.

Periphonics Corporation's common shares are quoted on the NASDAQ Stock Market
and had fiscal year 1999 revenues of US$142.3 million and has approximately 900
employees worldwide.

Nortel Networks is a global leader in telephony, data, wireless and wireline
solutions for the Internet. The Company had 1998 revenues of US$17.6 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 through Unified Networks* that promise 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 rapid technology change and voice and data
convergence; price and product competition; international growth, foreign
exchange, and interest rates; general industry and market conditions and growth
rates; unanticipated impact of Year 2000 issues; and the impact of
consolidations in the telecommunications industry. For additional information
with respect to certain of these and other factors, see the reports filed by
Nortel Networks and Periphonics Corporation with the United States Securities
and Exchange Commission, specifically the most recent reports on Form 10-K.
Nortel Networks and Periphonics Corporation disclaim 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, Unified Networks, and
How the world shares ideas are trademarks of Nortel Networks.


END

ACQDGBBBDXBCCCG