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TECHNOLOGY AGREEMENT PRESS RELEASE
(MobileInfo acknowledges Xircom Web Site for this Press Release)

Nortel Networks to Work With Sierra Wireless, Xircom on 3G UMTS Wireless Modems
Firms Plan to Speed Availability of ‘Missing Link’ Between Digital Devices, Internet Content

BOSTON – Nortel Networks* (NYSE/TSE: NT) has signed agreements under which it will assist both Sierra Wireless (NASDAQ: SWIR; TSE: SW) and Xircom (NASDAQ: XIRC) to independently develop the industry’s first third generation (3G) wireless modems based on the UMTS (Universal Mobile Telecommunications System) standard, accelerating availability of these modems to enable ‘anytime, anywhere’ access to rich Internet content through digital devices of all kinds. 

Sierra Wireless and Xircom both plan to develop their own multi-mode UMTS/GPRS (General Packet Radio Service) wireless modems in form factors including PC cards, Compact Flash cards and embedded modules. Nortel Networks will help fund these development efforts, and provide technical and joint marketing support. Plans call for market trials and general availability in the first half of 2002. 

“We’re combining the intelligence of IP (Internet Protocol), the accessibility of the Wireless Internet and lightning fast Internet access to any device, any time,” said Frank Plastina, president, Wireless Internet, Nortel Networks. “We expect these new modems to provide the ‘missing link,’ unleashing a torrent of data by freeing applications from the desktop and enabling a new wave of applications and services that are scarcely imaginable at today’s speeds.” 

Accelerated availability of 3G wireless modems is also expected to enable Nortel Networks service provider customers to take full advantage of the Wireless Internet revolution. Mobile professionals and consumers will be able to plug them into personal digital assistants (PDAs), laptop computers, in-vehicle information systems, MP3 players, digital cameras and other IP-enabled personal digital devices for untethered access to e-mail, eBusiness, mobile commerce and multimedia services over 3G networks. 

 “At BT Wireless, we intend to maintain our current lead in mobile data when we launch our 3G service,” said Tony Greaves, senior vice president, 3G & Airwave, BT Wireless. “Availability of device supply is key. We expect a range of 3G devices to be commercially available in 2002, and we are talking with a number of manufacturers worldwide. The activities announced today will help to ensure early availability and choice of products, and provide us with options for early priority ordering through our strategic relationship with Nortel Networks.”

 “We’re committed to enabling mobile users to take full advantage of the high-performance Internet,” said Peter MacKinnon, vice president, Wireless Internet, Nortel Networks. “We expect a plethora of connected wireless IP appliances to spur tremendous growth of wireless data, allowing service providers to differentiate services profitably and grow average revenue per user.” 

Development of 3G wireless modems will support Nortel Networks ‘Wings of Light’ strategy, which combines optical, wireless and IP technologies to help operators provide highly reliable, high-speed access to Internet services and applications. 

Nortel Networks recently announced an estimated US$1.8 billion in European UMTS network awards, including a five-year contract with BT Wireless subsidiary BT Cellnet in the United Kingdom, a 12-month build out for Airtel in Spain, and a three-year deal with Xfera, also in Spain. 

“Working with Nortel Networks on UMTS drives Sierra Wireless firmly into a strong global position,” said Andrew Harries, senior vice president, corporate development, Sierra Wireless. “We are currently leading the way in the North American market for 2.5G and 3G wireless modems and are focused on wirelessly enabling notebooks and PDAs. Today’s announcement continues our drive for technology leadership, complete and compelling 3G solutions, and a strong global presence.” 

“As the worldwide industry leading provider of global mobile access solutions, Xircom is paving the way for reliable 3G wireless information access,” said Mike Scullin, vice president, business development, Xircom. “By leveraging our years of experience in the enterprise, we are well positioned to develop the expanded opportunity that 3G brings to the consumer market. Together, Xircom and Nortel Networks will enable the Wireless Internet by promoting the development of next generation, high-speed data devices.” 

Strategy Analytics expects the market for personal digital devices across the United States and Europe to nearly triple in size from US$20.9 billion in 1999 to US$57 billion in 2005.

Sierra Wireless, Inc. is a leading provider of wireless data communications hardware and software products. Sierra Wireless delivers wireless PC Cards for portable computers, wireless adapters for PDAs, OEM modules for embedded applications and rugged vehicle-mounted wireless systems. Sierra Wireless is the founding member of the WirelessReady* Alliance, an alliance of industry-leading hardware, software and service companies committed to the delivery of complete and compelling wireless data solutions. For more information on Sierra Wireless, visit its Web site at http://www.sierrawireless.com

For over a decade mobile professionals around the world have relied on Xircom for access to their information anytime, anywhere. Xircom designs and develops innovative solutions that connect mobile users worldwide to corporate networks, the Internet, intranets and other on-line resources. Xircom sells and supports its products in over 100 countries through distributors, resellers, electronic channels and global OEM partnerships. Headquartered in Thousand Oaks, Calif., with regional headquarters in Belgium, Japan and Singapore, Xircom has 1,900 employees worldwide and trailing four-quarter revenue of US$496 million.  

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.

For more information: 

Nortel Networks

Business Media:
David Chamberlin 
972-685-4648
ddchamb@nortelnetworks.com


Trade Media:
Susan Kwon
972-684-5701
skwon@nortelnetworks.com

Investment Analysts:
800-901-7286
905-863-6049
investor@nortelnetworks.com

European Media
Will Cairns
44 1628 438 031
wcairns@nortelnetworks.com

Sierra Wireless

Phoebe Yong
604-231-1104
yong@sierrawireless.com


Xircom

Kristy Carver
415-975-2269
kristy.carver@pnicg.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. WirelessReady is a trademark of Sierra Wireless.


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