News Release-- August 02, 2000

NORTEL NETWORKS SELECTS CSC TO PROVIDE GLOBAL INFORMATION SERVICES, SUPPORT

BOSTON and EL SEGUNDO, Calif. - Nortel Networks* (NYSE/TSE: NT) today announced an agreement with Computer Sciences Corporation (NYSE: CSC) to outsource certain information services (IS) functions globally.

Through this agreement, estimated to be worth US$3 billion over seven years, CSC will directly support the Nortel Networks IS organization by delivering global desktop and help line support, computer infrastructure management, legacy application development, and support and data center management to Nortel Networks employees. The agreement covers more than 75,000 desktops around the world.

"With one of the largest and most advanced communications networks in the world, Nortel Networks is already a showcase of how the Internet can transform a company," said Richard Ricks, chief information officer, Nortel Networks. "By focusing on a number of eBusiness and supply chain management opportunities, we can further enhance the speed and agility at which the company operates. After a lengthy examination of all the options, we feel that CSC is best-equipped to continue delivering Nortel Networks the world-class services it requires."

Effective October 1, 2000 approximately 2,000 Nortel Networks employees are expected to transfer to CSC's professional services team. Under the agreement, CSC will provide all transferred employees with comparable salary and health benefit provisions.

"We are gratified to have been selected by Nortel Networks," said Van B. Honeycutt, chairman, president and chief executive officer, CSC. "The opportunity presented to us by Nortel Networks significantly strengthens our presence in the communications industry, and is in perfect alignment with CSC's global reach, breadth of service and technical expertise. Just as we have with other global companies, we look forward to helping Nortel Networks achieve sustainable business results."

Leveraging CSC's expertise in the delivery of IS services will allow Nortel Networks to focus on building and implementing next generation information technology (IT) solutions that further demonstrate how the Internet can enable business to work better, faster and smarter. Through the adoption of advanced practices, these solutions will drive a more efficient supply chain; leverage second generation eBusiness platforms that harness the power of the Internet and surpass customer needs; and streamline global business processes that collapse the barriers of time and distance, enabling Nortel Networks people to consult with each other and better serve customers.

Computer Sciences Corporation, one of the world's leading consulting and information technology (IT) services firms, helps clients in industry and government achieve strategic and operational objectives through the use of technology. Having guided clients through every major wave of change in IT for more than 40 years, CSC today is well positioned to develop and apply IT strategies and technologies, particularly in the eBusiness area, based on its full range of capabilities in management and IT consulting; systems design and integration; applications software; Web and application hosting; and IT and business process outsourcing.

Since its formation in 1959, CSC has been known for its flexibility and customer-centric culture. Through numerous agreements with hardware and software firms, the company develops and manages solutions specifically tailored to each client's needs. With more than 60,000 employees in locations worldwide, CSC had revenues of US$9.6 billion for the twelve months ended June 30, 2000. It is headquartered in El Segundo, California. For more information, visit the company's Web site at www.csc.com

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.

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; 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.

*Nortel Networks, the Nortel Networks logo and the Globemark are trademarks of Nortel Networks.