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To: Jacob Snyder who wrote (48958)	2/15/2001 4:23:13 PM
From: John Koligman	Respond to of 77400

Good move Jacob. NT just warned. Best regards, John Nortel Networks Provides New Guidance for 2001 Based on a Faster and More Severe U.S. Economic Downturn Continues to Expect Revenue Growth Greater Than Market TORONTO--(BUSINESS WIRE)--Feb. 15, 2001--Nortel Networks Corporation(a) (NYSE:NT - news; TSE:NT. - news) today announced new guidance for its financial performance for fiscal year and first quarter 2001. ``While we previously noted that economic uncertainties and capital constraints were impacting our outlook, we are now seeing a faster and more severe economic downturn in the United States which we now expect will result in a slower overall market growth of approximately 10 percent in 2001. We are seeing longer than expected delays in spending by our U.S. customers as they continue to assess the impact of the economic and market conditions on their businesses,'' said John Roth, president and chief executive officer, Nortel Networks. ``We now expect the U.S. market slowdown to continue well into the fourth quarter of 2001. Partially offsetting the impact of the U.S. market slowdown is the continued solid growth we are seeing in Europe and in the Asia Pacific and Latin America regions.'' ``Even with the current economic and market uncertainty, we continue to believe that Nortel Networks, with our global reach and industry-leading portfolio, is ideally positioned to gain market share and continue to grow revenues faster than the overall market growth rate. We now expect growth in revenues and earnings per share from operations(b) in 2001 over 2000 of 15 percent and 10 percent, respectively. For the first quarter of 2001, we expect revenues of US$6.3 billion and a loss per share from operations(b) of US$0.04 on a diluted basis,'' Roth added. ``No other company is as well positioned in the market today with our leading portfolio and management bench strength as Nortel Networks,'' concluded Roth. ``We are strengthening our hold on being the world's leading provider of profitable, high-performance Internet and communications solutions for our customers around the world. We are seen as a company that our customers can confidently move forward with. There should be no confusing the current economic downturn in the United States, and the adjustment we are announcing today, with Nortel Networks overall health and our market leadership position.'' In light of the current environment, Nortel Networks plans to immediately step up its initiatives to optimize profitability and drive efficiencies in its business by further streamlining operations and activities that are not aligned with its core markets and leadership strategies. The company now estimates that there will be a reduction in 2001 of approximately 10,000 from the number of employees at December 31, 2000 through these streamlining and realignment activities. Approximately 6,000 employees have been addressed to date. The number of affected employees is expected to be minimized as a result of normal attrition, including retirement. Nortel Networks is a global Internet and communications leader with capabilities spanning Optical, Wireless, Local Internet and eBusiness. The Company had 2000 U.S. GAAP revenues of US$30.3 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; the ability to obtain timely, adequate and reasonably priced component parts for suppliers and material manufacturing capacity; 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.