Cable Satisfaction International Inc./Csii Selects Nortel Networks for IP Telephony in Portugal.

MONTREAL--(BUSINESS WIRE)--Dec. 2, 1999--

CABLE(ME:CSQ.A.) (TSE:CSQ.A.)

Cable Satisfaction International Inc. today announced that it has granted an exclusive equipment supply and services contract to Nortel Networks (NYSE/TSE:NT) for IP optimization of the cable network of Csii's Portuguese subsidiary, Cabovisao-Televisao por Cabo S.A. (Cabovisao). The contract is valued at 60 million Euros (approximately CDN$95 million), and includes professional services and a commitment to provide a credit facility for the amount of the contract.

Csii plans to evolve Cabovisao's cable TV and Internet supplied on its cable network to fully feature IP multimedia content and information services. These IP services include telephony, fax, Virtual Private Networks (VPNs) and video transmitted over an IP network infrastructure. Targeting both Business -- SOHO, Medium & Large -- and Residential customers, Cabovisao sought a vendor with proven ability in delivering turnkey IP solutions.

"With over 200,000 homes passed, our Portuguese subsidiary's networks are growing very quickly, as is the range of services we're delivering to customers," said Guy Laflamme, Chairman and Chief Executive Officer of Csii. "We were seeking a world-class partner who could deliver IP network optimization and ensure the evolution of both our network and services. In Nortel Networks, we found that partner. We were aware of Nortel Networks' expertise as a consequences of the IP network solutions they have already deployed close by in Spain. We specifically wanted to deal with only one supplier and actively sought an Internet aware vendor. One who could supply a scalable, evolvable network to adequately meet today's complex demand on a Service Provider, as well as the, as yet unimagined demands, of tomorrow."

Nortel Networks will provide the entire network infrastructure for Cabovisao, including the STM-16 2.5 Gbit/s multiplex backbone, Accelar 1200 and Verselar 2500 switches for IP and Frame Relay services, a DMS 100 switch for voice services, and IP cable modems for Internet at the first mile. Cabovisao expects to deploy Nortel Networks' Succession solution as its network evolves - converging today's telephony and data traffic to packet-based services over a voice-optimized ATM/IP backbone.

"We are pleased to have been selected to implement what we believe is the first IP-optimized cable network in Portugal," said Steve Pusey, President of Nortel Networks' Cable TV Solutions division. "Nortel Networks is providing a complete end-to-end solution for high speed data transmission over a cable network. We're particularly proud to enter into a new partnership with a company as dynamic and promising as Csii and its Portuguese subsidiary, Cabovisao."

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, services provider and enterprise customers globally.

Cable Satisfaction International Inc. (Csii) is a Canadian cable operator that builds and operates broadband hybrid fibre-coaxial (HFC) networks in the international cable television and telecommunications markets through its subsidiaries. Cabovisao -- a wholly-owned subsidiary of Csii -- is the second-largest cable operator in Portugal with over 200,000 homes passed and offices located throughout the country. Csii's subordinate voting shares are listed on the Montreal and Toronto stock exchanges (CSQ.A).