BT Expands Storage Area Networking Connectivity Service With Nortel Networks Equipment.

Business Editors/High-Tech Writers

LONDON--(BUSINESS WIRE)--June 23, 2003

BT has signed a frame agreement with Nortel Networks (NYSE:NT) (TSX:NT) for optical metro dense wavelength division multiplexing (DWDM) equipment as a response to customer driven demand for storage area network (SAN) connectivity. BT's broadband point-to-point data networking division, Short-Haul Data Services (SHDS), will use the equipment for its Wavestream Connect service.

"Nortel Networks close relationships with leading storage vendors and increasing customer demand for SAN connectivity and extensions were key factors that determined our choice of vendor," said Alan Davis, manager, BT LAN Extension Services. "BT SHDS has been providing reliable, cost-effective local area network (LAN) interconnectivity for many of the UK's leading financial, commercial and government institutions for over 15 years, and we expect Nortel Networks to enhance our offering."

Nortel Networks OPTera Metro 5200 Multiservice Platform is being used to initially offer enterprises SAN and Consolidated Server Cluster interconnect. The BT Wavestream Connect Service is already being deployed for a large financial institution with Nortel Networks equipment.

"The combination of probably the best fibre reach in the UK from BT with our leadership position in the SAN connectivity market is a wonderful opportunity for UK enterprises," said Peter Newcombe, president, Optical and Wireline Networks, EMEA (Europe, Middle East, Africa), Nortel Networks. "Fortune 100 organisations were the first to embrace storage connectivity to ensure business continuity and disaster recovery, but now we're also seeing heightened interest in the important smaller enterprise sector."

BT SHDS Wavestream Connect service offers dedicated optical fibre links with Nortel Networks OPTera Metro 5200 equipment at either end of a fibre link into which enterprises directly connect their LAN, WAN and SAN equipment. In addition to SAN connectivity, SHDS Wavestream Connect service is defined for the interconnection of Ethernet LAN, ATM, SDH and video services at scalable rates up to and including 2.5 Gigabits-per-second.

Nortel Networks was one of the first vendors to offer enterprises SAN extensions over DWDM technology, and led the market with a 45 percent share in 2002, according to a May 2003 report from industry analyst group IDC.

Deployed in more than 1,000 customer networks in 65 countries, Nortel Networks end-to-end optical network portfolio includes next generation SONET/SDH, optical switching products, photonics (WDM), and Optical Ethernet products. Nortel Networks has deployed more than 250,000 network elements globally.

Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The Company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Wireless Networks, Wireline Networks, Enterprise Networks, and Optical Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at www.nortelnetworks.com.

Nortel Networks, the Nortel Networks logo, the Globemark and OPTera are trademarks of Nortel Networks.