Reliant FORM 10-K manual Outstanding Weighted Options

The following is a summary of the total number of outstanding stock options issued to employees of Nortel Networks S.A.:

	Outstanding		Weighted
	options	average exercise
	(thousands)		price (U.S.$)
Balance at December 31, 2000	6,976	$	38.10
Granted options under all stock option plans	1,320	$	30.36
Options exercised	(157)	$	8.91
Options cancelled	(1,086)	$	47.84
Options cancelled under stock option exchange program(a)	(3,604)	$	51.43
Balance at December 31, 2001	3,449	$	19.47
Granted options under all stock option plans(a)	5,556	$	6.39
Options exercised	–	$	–
Options cancelled	(1,312)	$	13.56
Balance at December 31, 2002	7,693	$	11.03
Eligible employees transferred out of Nortel Networks S.A.	(681)	$	9.77
Eligible employees transferred in Nortel Networks S.A.	227	$	10.21
Granted options under all stock option plans	4,247	$	2.37
Options exercised	(4)	$	2.89
Options cancelled	(843)	$	11.40
Balance at December 31, 2003	10,639	$	7.70

(a)Approximately 3,604 stock options were tendered for exchange and cancelled. On January 29, 2002, Nortel Networks granted approximately 2,264 new stock options in connection with the Exchange Program with exercise prices in the range of U.S.$7.16 to U.S.$7.39 per common share.

The following table summarizes information about stock options outstanding as of December 31, 2003:

			Options outstanding				Options exercisable
			Weighted
			average		Weighted				Weighted
		Number	Remaining		average		Number		average
		outstanding	contractual		exercise		exercisable		exercise
Range of exercise prices		(thousands)	life (in years)	price (U.S.$)			(thousands)	price (U.S.$)
U.S.$1.0600 — U.S.$2.3900		4,001	9.1	$	2.34	38		$	1.96
U.S.$2.3901	— U.S.$3.5852	304	9.1	$	2.58	4		$	3.34
U.S.$3.5853	— U.S.$5.3779	96	1.9	$	4.50	85		$	4.52
U.S.$5.3780	— U.S.$8.0670(a)	4,006	7.4	$	6.44	2,182		$	6.77
U.S.$8.0671	— U.S.$12.1006(a)	933	4.6	$	9.51	870		$	9.61
U.S.$12.1007 — U.S.$18.1510		130	4.8	$	15.31	130		$	15.31
U.S.$18.1511 — U.S.$27.2267		914	5.8	$	23.21	884		$	23.35
U.S.$27.2268 — U.S.$40.8402		98	6.6	$	34.30	74		$	33.99
U.S.$40.8403 — U.S.$61.2605		68	6.3	$	50.47	69		$	50.47
U.S.$61.2606 — U.S.$84.6834		89	6.2	$	74.41	89		$	74.41
		10,639	7.6	$	7.70	4,425		$	13.30

(a)Includes approximately 1,591 stock options granted on January 29, 2002 under the Exchange Program.

Employee stock purchase plans

Nortel Networks has ESPPs (including in France) to facilitate the acquisition of common shares of Nortel Networks Corporation at a discount and the retention of such common shares by eligible employees. The ESPPs have four offering periods each year, with each offering period beginning on the first day of each calendar quarter. Eligible

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