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KPN first European Telco to base converged networks strategy on Nortel Networks

Johannesburg, 22 Aug 2000

Will Distribute Integrated , Video, Solutions to Enterprises in The Netherlands AMSTERDAM, The Netherlands - KPN will become the first telecommunications company in Europe to distribute complete Unified Networks solutions from Nortel Networks, providing Dutch companies with a single, reliable data, video and voice infrastructure with which to compete in the new eBusiness economy.

"Today`s customers demand much more from their network infrastructure, especially if they are trying to reap the benefits of eBusiness," said Eelco Blok, director, corporate networks, KPN. "By providing Unified Networks solutions, we look forward to helping our customers achieve lower costs, ease of migration and improved management of critical networks and applications. Nortel Networks is our strategic ally in offering this integrated, end-to-end voice and data solution."

KPN and Nortel Networks also expect to establish a Unified Networks Competence Center to provide advice and support to Dutch companies seeking to realize the full potential of their converged networks.

"We`re combining KPN`s experience as a communications integrator with our extensive, end-to-end portfolio," said Fred deVries, regional director, Benelux, Nortel Networks. "As customers begin to deploy telephony over their data networks, it is critical that these networks evolve to become telephony grade. KPN will now be able to offer an architecture with integrated voice and data/IP (Internet Protocol) applications. This is great news for their customers."

Unified Networks solutions from Nortel Networks complement KPN`s comprehensive eBusiness strategy for enterprise customers by integrating data, video and voice into a single, cost-effective network infrastructure. They bring together a variety of enterprise networking solutions, including Nortel Networks Passport multiservice switches, Nortel Networks Succession Solutions for Internet Telephony, Nortel Networks Meridian business communications systems, and Nortel Networks Symposium customer care solutions.

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Koninklijke

Koninklijke KPN N.V. (KPN) is the leading telecommunications company in the Netherlands. It offers a full range of telecom and ICT services, and operates internationally under its own name or with partners. KPN is a forward looking company that fine-tunes its services to the way its customers live and work. KPN is pursuing growth in four core business areas: fixed telephony, mobile communications, IP/data services, Internet, call center and media services. For more information on KPN, visit www.kpn.com.

Nortel Networks

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.

Nortel Networks, the Nortel Networks logo, the Globemark, Unified Networks, Passport, Succession, Meridian and Symposium are trademarks of Nortel Networks. Contact for Press and Analysts: