AOL Time Warner To Marshal Combined Marketing Resources, Promoting Nortel Networks Across Online, Television and Print Channels Including America Online, Inc. Interactive brands, Time Inc.'s Magazines, and CNN Properties

Nortel Networks Will Work With Businesses To IP Voice-Enable Their Sites Using AOL Time Warner Voice Services Platform; Companies Will Pursue A Range of Next-Generation Technologies

Alliances Demonstrate AOL Time Warner's Unmatched Ability to Meet Sophisticated Technology Company's Needs Under One Roof

NEW YORK, NY, January 31, 2001 -- Nortel Networks* [NYSE/TSE: NT], a global Internet and communications leader in Optical, Wireless, Local Internet and eBusiness solutions, and AOL Time Warner [NYSE: AOL], the world's first Internet-powered media and communications company, today announced a wide-ranging strategic technology and marketing alliance. The new agreement will combine each company's global strengths in technology, communications and media to offer a new suite of services to millions of consumers and to businesses of all kinds, large and small.

Under the alliance, AOL Time Warner will marshal its combined media resources in a series of innovative advertising and marketing initiatives across the newly merged company's online, print and television brands, and Nortel Networks will use AOL Time Warner's voice platform to IP voice-enable Web Access and provide next generation, voice-enabled Internet and other cutting-edge technologies for businesses.

Broad Range of Marketing Across AOL Time Warner Brands

Nortel Networks will expand its longtime advertising relationship with Time Inc., engaging in a series of targeted promotions across a variety of magazines, including the domestic and international editions of TIME and FORTUNE. In addition, Nortel Networks will be extensively promoted in technology and related areas across AOL, CompuServe and Netscape, as well as CNNfn.com and other CNN online properties.

Nortel Networks will also expand its current relationship with CNN television properties, extending its exclusive sponsorship of Tech Watch on the CNN Moneyline News Hour to include sponsorship across AOL, CompuServe and Netscape, as well as AOLTV, AOLbyPhone, and AOL Mobile services. Nortel Networks' new online sponsorships will also integrate streaming video and receive wide promotion across these interactive properties. This will enable online consumers to keep up with the latest developments in the technology sector, while taking CNN Moneyline to new online audiences.

Nortel Networks To Deliver Voice-Enabled Internet and Other Cutting-Edge Technologies, Work With Time Warner Cable on Other Initiatives

Nortel Networks will collaborate with AOL Time Warner to develop and market AOL Time Warner's voice services platform, using AOLbyPhone software and technology, to enable a variety of businesses to voice-enable their Websites, spreading the reach of AOL Time Warner's groundbreaking voice portal services.

Nortel Networks also will work to develop a range of next-generation enabling technologies across AOL Time Warner properties. In addition, Time Warner Cable and Nortel Networks will participate in a technology trial to deliver rich new content to cable, online, print and broadcast consumers.

"Nortel Networks is redefining the Internet's speed, reliability, quality, and profitability, and these alliances demonstrate how AOL Time Warner, unlike any other company in the world, can meet a sophisticated technology company's online, print and television advertising and marketing needs under one roof, enabling them to reach consumers and businesses in new ways across multiple platforms," said Bob Pittman, Co-COO, AOL Time Warner. "These innovative agreements will allow us to leverage each company's assets and core businesses to put Nortel Networks in front of a wide audience of potential new customers, while creating a relationship to spread the reach of new voice technology and related services."

"Nortel Networks is building the high-performance Internet, and through this agreement, AOL Time Warner and Nortel Networks will now work together to deliver unprecedented opportunities to businesses and consumers," said Clarence Chandran, chief operating officer, Nortel Networks. "We've had a great relationship with CNN and Time, Inc. for years, and through these new initiatives with AOL Time Warner, we will be able to seamlessly integrate our efforts and expand them further into the online medium. We are also very excited to work with businesses to voice-enable their sites, and to explore using Optical and Local Internet solutions to offer new services for AOL Time Warner customers and subscribers."

About Nortel Networks
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.

About AOL Time Warner, Inc.
AOL Time Warner (NYSE:AOL) is the world's first Internet-powered media and communications company, whose industry-leading businesses include interactive services, cable systems, publishing, music, cable networks and filmed entertainment.

*Nortel Networks is a trademark of Nortel Networks