Nortel Networks - Further re Acquisition

RNS Number:7709A
Nortel Networks Corp
12 November 1999


For more information:
Media Relations:
Kris Hoover
Nortel Networks
[phone]
[e-mail]

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


Kevin O'Brien
Periphonics Corporation
[phone]
[e-mail]

                    Nortel Networks and Periphonics Announce
            Completion of Nortel Networks' Acquisition of Periphonics

BRAMPTON, Ontario and NEW YORK - Nortel Networks* (NYSE:/TSE:NT) and Periphonics
Corporation (NASDAQ: PERI) today announced the completion of the acquisition of
Periphonics by Nortel Networks. The acquisition, which was effective today,
follows the approval by the stockholders of Periphonics at the annual meeting of
stockholders held on November 10, 1999.

The acquisition was effected by the merger of a wholly-owned subsidiary of
Nortel Networks with and into Periphonics. As a result of the merger,
Periphonics became a wholly-owned subsidiary of Nortel Networks and each
outstanding share of Periphonics common stock was converted into a right to
receive 0.62 of a Nortel Networks common share. Periphonics common stock will no
longer trade on The NASDAQ Stock Market. Nortel Networks issued approximately
8.4 million common shares today in connection with the merger.

"With our acquisition of Periphonics' market-leading self service capabilities,
our strategy to solidify Nortel Networks' leadership in unifying call centers
with the Internet to create a new generation of eServices and re-define customer
care is clearly coming together," said F. William Conner, president of
Enterprise Solutions at Nortel Networks.

Peter Cohen, president of Periphonics, said, "Periphonics and Nortel Networks
share similar visions of the evolution of the call center business and the role
of interactive voice solutions in that business. As a part of Nortel Networks,
Periphonics plans to build on its past successes, while the addition of Nortel 
Networks' immense worldwide resources will position us to accelerate the
development of new products and technologies, reach a broader customer base and
serve our existing customers even better than before."

Periphonics stockholders who held their shares directly will receive a notice in
the mail describing the process to exchange their Periphonics common stock
certificates for Nortel Networks common stock certificates. Periphonics
stockholders whose shares were held through intermediaries such as banks or
brokers will receive information about their holdings from those institutions.

Periphonics Corporation, a Nortel Networks subsidiary, 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.

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. Nortel Networks' common shares are
listed on the New York, Toronto, Montreal and London stock exchanges. Visit us
at www.nortelnetworks.com.
   
Certain information included in this press release is forward-looking and is
subject to important risks ad 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 Howthe world shares ideas are trademarks of Nortel Networks.

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