Canada First to Launch the World's Most Advanced National Optical Internet.

OTTAWA--(BUSINESS WIRE)--Aug. 25, 1998--

Collaborative Partnership To Introduce CA*net 3 High-Speed Network Promises to Revolutionize Electronic Data Information Exchange

John Manley, Minister of Industry, today announced a collaborative partnership between CANARIE (Canadian Network for the Advancement of Research, Industry and Education) and a Bell Canada-led private sector consortium to build CA*net 3, the world's first national optical Internet. Its vastly increased bandwidth is poised to revolutionize the way industry, government and researchers collaborate and conduct high-speed research and information exchange. The 1998 federal budget allocated $55 million for CANARIE to deploy a national optical network as a key element of Industry Canada's Connecting Canadians agenda.

Using new fibre optic-based technology and Dense Wavelength Division Multiplexing, CA*net 3 will deliver unparalleled network capability to Canadian research institutions and universities faster than any existing commercial Internet. Although the initial use of the network will be in support of Canada's high technology and research communities, it will eventually have tremendous impact on all Canadians.

"This initiative, the latest example of Canadian innovation in communications technology, provides a great opportunity for Canada. This further establishes our high-tech industry and research community at the forefront of Internet technology and applications development," said Minister Manley. "In due course, the benefits of CA*net 3 will provide schools and communities across Canada with unparalleled access to the vast resources of the Internet."

CANARIE and the Bell Canada consortium, which includes Cisco Systems Canada Co., JDS Fitel, Newbridge Networks Corporation and Nortel (Northern Telecom), will develop and deploy the core of this third generation network across Canada. CANARIE's collaborative approach will extend opportunities for other carriers to participate in the associated research and development and to provide regional-level services.

"The participation of all of these companies in this consortium is an indication of how important this initiative is to Canadian industry," added Andrew K. Bjerring, President & CEO of CANARIE. "Deploying the world's most advanced optical Internet across the country is another Canadian first, such as the first telecommunications satellite and the first radar imaging satellite."

Unlike existing networks, which have been built primarily to support voice communications, CA*net 3, targeted to be fully active as early as October 1998, is being built specifically as an Internet network with voice traffic treated as just another form of data. With its vast capacity to carry multi-media traffic, CA*net 3 will enable numerous health, research, educational and commercial applications not possible on today's networks. For example, doctors will be able to participate in operations performed thousands of miles away.

"This giant step in Internet history is a wonderful example of what can happen when Canada's public and high technology private sectors direct their joint skills and experience towards a common goal. CA*net 3 provides new opportunities for critical skill-building and research and development in Canada and significantly enhances the foundation of our digital economy for the new century," said John MacDonald, Chairman and CEO of Bell Canada.

Cisco Systems Canada Co., the worldwide leader in networking for the Internet, will provide Cisco `12000's' which will in turn deliver the density, scalability and performance required to enable new multimedia applications for the new economy. JDS Fitel, a world leading supplier of fibre optics, will supply the key optical components needed to develop this optical Internet. Newbridge Networks, a world leader in communications networking, and Cambrian Systems Corporation, a Newbridge affiliate company, will provide leading-edge asynchronous transfer mode infrastructure equipment and advanced photonic networking solutions enabling the delivery of differentiated Internet Protocol services and other advanced, high-bandwidth applications. Nortel, the world's leading supplier of high-capacity optical networks, will supply infrastructure equipment for the project, enabling bandwidth-intensive IP traffic to be carried directly over optical channels on the WDM network.

Established in 1993 with support from Industry Canada, CANARIE is a not-for-profit industry-led corporation with over 120 fee-paying members and a 24 Member Board representing private and public sectors. CANARIE's mission is to facilitate the development of critical aspects of the communications infrastructure in Canada and to contribute to Canadian competitiveness, wealth and job creation and quality of life.

This event will be broadcast live on the World Wide Web at http://www.canet2.net/LiveBroad.htm at 11:00 a.m.EST.

NOTE TO EDITORS: There is an asterisk between "CA" and "net 3" in this news release. This symbol may not appear properly in some systems.

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