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October 2, 2001
Nortel Networks To Sell Clarify Assets To Amdocs Limited for US$200 Million In Cash
Sale Highlights Continued Progress Against Work Plan
TORONTO – Nortel Networks* [NYSE/TSE: NT] announced an agreement whereby it will sell substantially all of its Clarify assets to Amdocs Limited [NYSE: DOX] for approximately US$200 million in cash. As a condition of the sale in Europe, all necessary employee consultation requirements must also be met. The Clarify portfolio of Customer Relationship Management (CRM) solutions are used by businesses globally to enable personalized interactions with customers and build relationships of loyalty with their customers.
“We are making excellent progress against the work plan we laid out earlier this year and this sale of non-core assets is further evidence of that,” said Frank Plastina, president service provider and corporate networks, Nortel Networks. “We continue to execute with speed and agility the streamlining of our business around our core markets to align our cost structure, and to strengthen our financial position.” Under terms of the agreement, Nortel Networks will sell substantially all assets used in the Clarify portfolio, including patents, intellectual property and trademarks, to Amdocs Limited. Existing customer contracts will be assumed by Amdocs Limited, as well as certain leased office space. The transaction is expected to close in the fourth quarter of 2001. The boards of directors of both companies have approved the transaction. The completion of the transaction is subject to customary regulatory approvals. Amdocs Limited is a leading provider of information solutions to the communications and IP industry worldwide, offering CRM, billing and order management systems for communications providers, and business support systems for directory publishing companies. Amdocs Limited delivers end-to-end software solutions and offers world-class outsourcing capabilities, supporting convergent multi-service operations, emerging markets and next generation services across all lines of business - wireline, wireless, broadband, electronic and mobile commerce and IP services. Amdocs Limited offers full voice and IP capabilities with a comprehensive single customer view and convergent product catalog. Nortel Networks is a global leader in networking and communications solutions and infrastructure for service providers and corporations. The Company is at the forefront of transforming how the world communicates, exchanges information and profits from the high-performance Internet through capabilities spanning the Optical Internet, Wireless Internet, Intelligent Internet and IP (Internet Protocol) technologies and services. Nortel Networks does business in more than 150 countries and can be found on the Web 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 severity and duration of the industry adjustment; the sufficiency of our restructuring activities, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; fluctuations in operating results and general industry, economic and market conditions and growth rates; the ability to recruit and retain qualified employees including at the most senior management levels; fluctuations in cash flow, the level of outstanding debt and debt ratings; the ability to make acquisitions and/or integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact of price and product competition; international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization in the telecommunications industry; the dependence on new product development; the uncertainties of the Internet; the impact of the credit risks of our customers and the impact of increased provision of customer financing and commitments; stock market volatility; the entrance into an increased number of supply, turnkey, and outsourcing contracts which contain delivery, installation, and performance provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; the future success of our strategic alliances; and the adverse resolution of litigation. For additional information with respect to certain of these and other factors, see the reports filed by Nortel Networks Corporation and Nortel Networks Limited with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel Networks Corporation and Nortel Networks Limited 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 and the Globemark are trademarks of Nortel Networks.Contact for Press and Analysts:
Business Media:
David Chamberlin
Nortel Networks
972-685-4648
ddchamb@nortel.com
Investor Relations:
Nortel Networks
888-901-7286
906-863-6049
investor@nortel.com
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