Under terms of the confidential agreement, Nortel Networks and Tellabs will have rights to each other's patent portfolios, including SONET/SDH and optical networking patents. While Nortel Networks will receive a net royalty in connection with the cross-license, other details of the agreement were not disclosed. The arrangement will enable Nortel Networks and Tellabs to focus on the networking needs of their customers and strengthen the long-term competitive position of both companies.

Tellabs designs, manufactures, markets and services voice and data transport, switching/routing and network access systems. Tellabs recently launched Clear Ideas, a corporate brand that defines its role as a global solutions provider and a leader in helping service providers build and manage the new public network. The company's products are used worldwide by the providers of communications services. Tellabs' stock is listed on the Nasdaq Stock Market (TLAB). Visit Tellabs at www.tellabs.com.

Nortel Networks is a global leader in telephony, data, eBusiness, and wireless solutions for the Internet. 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 through Unified Networks* that promise a new era of collaboration, communications and commerce. Visit us at www.nortelnetworks.com.