Reliant FORM 10-K Other acquisitions, Net tangible Deferred Closing date Purchase, Compensation

put and call options and an increase of $45 in intangible assets and $79 in goodwill. The intangible assets of $45 related primarily to customer contracts and customer relationships and are being amortized based on their expected pattern of benefit to future periods using estimates of undiscounted cash flows, and were included in intangible assets on the consolidated balance sheet as of December 31, 2003. The sale of Nortel Networks 41 percent interest in EADS Telecom has resulted in the receipt of cash of $12 and a reduction in equity investments of $23. As a result of this transaction, Nortel Networks recognized a gain of $79 which is included in other income (expense)

—net for the year ended December 31, 2003. Except as noted below, there was no additional impact on the results of operations and financial condition, as NNF and NNG were already included in the consolidated results.

During the three months ended December 31, 2003, the valuation report for NNF and NNG was completed by a third party appraiser. As a result of the finalization of this valuation, an additional gain of $17 was recorded with a corresponding increase in goodwill on the transaction (see note 5 for goodwill by reportable segment).

Other acquisitions

The following table sets out certain information for an acquisition completed by Nortel Networks in the year ended December 31, 2001, and excludes those entities acquired which were subsequently included as discontinued operations (see note 20). This acquisition was accounted for using the purchase method. The consolidated financial statements include the operating results of this business from the date of acquisition.

Purchase price allocation

								Net tangible			Deferred
Closing date		Purchase			Acquired				assets		stock option
	Acquisition	price	Goodwill	technology			IPR&D		(liabilities)	compensation
2001	980 NPLC business (a) (b)
February 13		$ 2,291	$ 1,890	$	402	$	15	$	(16)	$	–

(a)The 980 NPLC business consisted of the design and manufacture of G08 980 nanometer pump-laser chips.

(b)Excludes additional consideration that may become payable.

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