--Nov. 1, 1999--.

NETGEAR(tm) Inc. today announced that it is shipping its Phoneline10X PCI adapter cards to retailers across the country.

The PCI adapters are the first of four products, debuted by the company last month, that provide home users with a one-step networking solution running at 10 Mbps and "no new wires." NETGEAR's Phoneline10X family uses ordinary phone jacks and existing wiring without interfering with telephone service. The Phoneline10X PCI adapter card has a list price of $99 and an expected street price of $79. The complete Phoneline10X family, including the first USB 10Mbps phoneline adapter, will be on store shelves before the holidays.

With the NETGEAR Home Phoneline10X product family, users who want to share files, printers, CD-ROMs and high-speed Internet connections, as well as play MP3 music and multi-player games, now have a home networking solution that is as simple to install as a telephone. "The speed is the key," said Kurt Scherf, in-home networks analyst for Parks Associates, a Dallas-based research firm that specializes in networking technology.

"Getting phone line-based networks to run at 10 Mbps represents a significant breakthrough in home networking technology. For the first time, users truly have the speed and performance of a corporate network, through their home phone jacks. And because no new wires are required, even the most novice users can install these solutions and realize immediate benefit."

NETGEAR's Phoneline10X PCI Adapters

NETGEAR's Phoneline10X PCI adapter cards are ideal for users who want to network all desktop computers and their resources together in the home. As with each product in the Phoneline10X family, the 10Mbps PCI adapters include FristGear(tm), user-friendly software with simple step-by-step instructions. The installation software, developed for the non-technical user, automates the sharing of printers, CD-ROMs, and a single Internet connection.

NETGEAR further ensures that users are eased into the new world of home networking by providing free technical support 24 hours a day, seven days a week. NETGEAR is one of the only brand-name home networking solutions manufacturers to provide this level of support to consumers.

NETGEAR Home Phoneline10X Product Family

In addition to the 10X PCI adapter cards, NETGEAR's Phoneline10X product family includes a 10Mbps USB adapter, making it simple to connect multiple desktop and laptop computers in the home without opening the computer case; a 10Mbps network bridge that connects "Ethernet-ready" desktops, laptops and ADSL and cable modems to the home Phoneline10X network; and a 56K standalone 10Mbps home Inte all the time.

NETGEAR's Phoneline10X product family was developed to be compatible with the HomePNA 2.0 specification of the Home Phoneline Networking Alliance (HomePNA). This specification is due to be completed by the end of 1999. The Phoneline10X network will maintain full bail stores, including CompUSA, Fry's Electronics, Circuit City, MicroCenter, and J&R Music, with a list price of $99 (expected street price $79).

The remainder of tof NETGEAR's worldwide channel partners and retail outlets appears on the company's Web page (www.netgearinc.com).

About NETGEAR Inc.

NETGEAR, based in Santa Clara, Calif., was founded in January 1996 and is a wholly owned subsidiary of Nortel Networks Corporation (NYSE:NT), NETGEAR's mission is to serve the small-office and home-office (SOHO) market (1 to 50 employees) and home users with affordable, easy-to-install, powerful networking solutions.

NETGEAR's portfolio of products includes: Phoneline10X Family, 10, 100, and 10/100 Mbps hubs, switches and adapter cards; Gigabit adapter cards and switches; network starter kits; ISDN routers and modems; print servers; network information appliances; and wireless technology. NETGEAR is also a member of the Home Phoneline Networking Alliance (HPNA). NETGEAR can be reached by calling 408/988-2400.

Nortel Networks is a global leader in telephony, data, wireless and wireline solutions for the Internet. The Company had 1998 revenues of US $17.6 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 through Unified Networks(a) that promise a new era of collaboration, communications and commerce. Visit us at www.nortelnetworks.com

(a) Nortel Networks, the Nortel Networks Globemark, Unified Networks, NETGEAR and "How the world shares ideas" are trademarks of Nortel Networks Corporation. First Gear is a trademark of NETGEAR. Other brand and product names are registered trademarks or trademarks or their respective holders.

Note to Editors: If you are interested in reviewing NETGEAR's Home Phoneline10X products, please contact Pamela Rupert at 408/975-3029, [e-mail]