Caixa Catalunya Boosts Network Security with IP VPN Solution from Nortel Networks.

Business Editors/High-Tech Writers

BARCELONA, Spain--(BUSINESS WIRE)--Dec. 16, 2002

Caixa Catalunya, one of the leading savings banks in Spain, has deployed a comprehensive access network security framework from Nortel Networks (NYSE:NT)(TSX:NT) including key products from Nortel Networks Unified Security Architecture.

Installed in conjunction with Nortel Networks channel 'partner' ITC, this framework -- one of the first of its kind for a financial institution in Spain -- offers a complete, 'all-in-one' VPN (Virtual Private Network) and IPsec encrypted tunneling solution.

Caixa Catalunya's enhanced access network security is based on Nortel Networks Shasta 5000 Broadband Service Node (BSN) and Nortel Networks Contivity Secure IP Services Gateways, which address the bank's connectivity goals -- including improved manageability and ease-of-use -- in a secure and cost-effective manner across its 950 branch offices located nationwide.

"Increasing the quality and range of services we provide to our customers inevitably translates to an increased flow of information between sites," said Luis Marcos, Caixa Catalunya. "The real challenge in the banking world is to increase the performance and flexibility of these communications without compromising security."

"The combination of Nortel Networks Shasta 5000 BSN and Contivity Secure IP Services Gateways has allowed us to meet our connectivity goals with a very high degree of security," Marcos said. "This is absolutely essential in maintaining the relationship of trust we enjoy with our customers."

Nortel Networks provides a flexible portfolio of IP VPN solutions, enabling enterprises like Caixa Catalunya to choose tailored, network-based or customer premise-based VPN services to meet specific networking requirements by site.

"Products like Shasta 5000 BSN and the Contivity portfolio take IP connectivity to the next level, enabling private, secure and uncorrupted network traffic," said Peter Kelly, president, Enterprise Networks, Nortel Networks EMEA (Europe, Middle East, Africa) "This makes them ideal choices for financial institutions, which need to ensure their customers that account information and transactions are secure."

Shasta 5000 BSN enables aggregation of tens of thousands of subscribers in a single chassis. Utilising its unique, multi-processor architecture, featuring more than 100 CPUs, Shasta 5000 BSN also has the processing power to apply sophisticated services to each individual subscriber. Internet services supported include network-based firewalling, traffic engineering and IP VPN for secure corporate access and intranet/extranet outsourcing.

As a customer premise-based solution, the Contivity portfolio offers a broad range of secure IP services, including IPSec tunneling, stateful firewalling, PKI, authentication, directory services (LDAP), network address translation (NAT), and IP routing. It further incorporates Nortel Networks Secure Routing Technology (SRT) to deliver a highly scalable, yet flexible, secure IP solution. Contivity Gateways with SRT enable enterprises and service providers to cost-effectively deploy security and routing services within the enterprise IP infrastructure.

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.

Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the severity and duration of the industry adjustment; the sufficiency of our restructuring activities, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; fluctuations in operating results and general industry, economic and market conditions and growth rates; the ability to recruit and retain qualified employees; fluctuations in cash flow, the level of outstanding debt and debt ratings; the ability to meet financial covenants contained in our credit agreements; the ability to make acquisitions and/or integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact of price and product competition; international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization in the telecommunications industry; the dependence on new product development; the uncertainties of the Internet; the impact of the credit risks of our customers and the impact of increased provision of customer financing and commitments; stock market volatility; the entrance into an increased number of supply, turnkey, and outsourcing contracts which contain delivery, installation, and performance provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; the future success of our strategic alliances; and the adverse resolution of litigation. For additional information with respect to certain of these and other factors, see the reports filed by Nortel Networks with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel Networks disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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