MAJOR DEAL WITH NORTEL TO SPEED ROLLOUT OF NATION'S LARGEST PACKET-SWITCHED WIRELINE NETWORK

Verizon has selected Nortel as its exclusive supplier of voice-over-IP equipment for the near-term.

Nortel and Verizon have reached an interim letter of agreement (LOA) covering the initial terms of the arrangement. They expect to replace this LOA with a five-year agreement within the next few months but Nortel's exclusivity, for now, only extends 18 months.