Care New England Deploys Optical Ethernet Service from Cox Business Services, Nortel Networks.

PROVIDENCE, R.I. -- Convergence of Voice, Data Across Multi-Campus Network Enhances Reliability, Reduces Costs

Care New England Health System has deployed a managed Optical Ethernet service from Cox Business Services, the commercial broadband and telecom division of Cox Communications, Inc. (NYSE:COX), based on an Optical Ethernet solution from Nortel Networks (NYSE:NT)(TSX:NT).

Care New England, comprised of five leading healthcare providers, is using this service to converge networks across multiple campuses to promote consistent services, cost savings, reliability of critical patient information and support for emerging healthcare applications.

The service, installed and managed by Cox Business Services, is based on Nortel Networks Optical Metro 3500 with Resilient Packet Ring (RPR) capabilities. Using Optical Ethernet, Care New England has converged its voice and data traffic on a common infrastructure, reducing cost and complexity by reducing the number of networks deployed and supported.

All existing and new applications will be centralized at the main data center and each site can access these applications via the high-speed optical network.

"With the industry rapidly moving toward digital content, it became very apparent that we needed a high-bandwidth network capable of delivering real-time, reliable and secure access to critical patient information across the network," said Howard Rubin, director, Technical Services, Care New England Health System. "The Optical Ethernet solution meets our needs for integration and consistency across the network, allowing us to easily and cost-effectively support new applications that will improve patient care."

Care New England's high-speed Optical Ethernet service converges traffic from a full suite of Nortel Networks enterprise voice and data solutions, including Nortel Networks Alteon Application Switches, Nortel Networks BayStack Ethernet Switches, Nortel Networks Contivity Secure Routing Technology equipment and Nortel Networks Passport Routing Switches. Together with Optical Ethernet service, these solutions give Care New England the scalability to support future growth and implement emerging healthcare applications.

"Nortel Networks Optical Ethernet is designed to enable a range of solutions for healthcare and other industries to help implement convergence, drive reduced costs and support new high-speed data services," said Jean-Luc Panetta, leader, Optical Ethernet Solutions, Optical Networks, Nortel Networks. "These solutions also give customers the flexibility to adopt a managed service solution from a leading provider like Cox."

Cox Business Services is a division of Atlanta-based Cox Communications, Inc., the nation's third largest cable broadband communications company. A full-service, facilities-based provider of communications solutions, Cox Business Services excels at helping businesses of all sizes generate greater efficiencies. The company offers high-speed Internet services; switched voice and long-distance services; and dedicated voice, data and video transport services for home offices, small, medium and large-sized businesses, school districts and hospitality, government and military properties in 28 markets across the nation. For more information, visit www.coxbusiness.com.

Nortel Networks philosophy in convergence is to eliminate the barriers to communication that inhibit progress. Central to this philosophy is the ability to deliver the lowest total cost of ownership to customers by leveraging existing infrastructure while simplifying and consolidating network maintenance and operations in a unified environment. With nearly 50,000 deployments in healthcare facilities in more than 35 countries, Nortel Networks continues to deliver leading solutions to this critical industry segment globally.

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 280,000 optical 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 or www.nortelnetworks.com/media_center.

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 outcome of Nortel Networks independent review and planned restatement of its previously announced or filed financial results; the impact of the management changes announced on April 28, 2004; the impact of the inability to meet Nortel Networks filing obligations on support facilities and public debt obligations; the sufficiency of Nortel Networks 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; continued reductions in spending by Nortel Networks customers; fluctuations in Nortel Networks operating results and general industry, economic and market conditions and growth rates; the communication by Nortel Networks auditors of the existence of material weaknesses in internal control; Nortel Networks ability to recruit and retain qualified employees; fluctuations in Nortel Networks cash flow, level of outstanding debt and current debt ratings; the use of cash collateral to support Nortel Networks normal course business activities; the dependence on Nortel Networks subsidiaries for funding; the impact of Nortel Networks defined benefit plans and deferred tax assets on results of operations and Nortel Networks cash flows; Nortel Networks dependence on new product development and its ability to predict market demand for particular products; Nortel Networks ability to 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; barriers to 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; changes in regulation of the Internet; the impact of the credit risks of Nortel Networks customers and the impact of customer financing and commitments; stock market volatility generally and as a result of acceleration of the settlement date or early settlement of Nortel Networks purchase contracts; the impact of Nortel Networks supply and outsourcing contracts that contain delivery and installation provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the future success of Nortel Networks strategic alliances; and the adverse resolution of litigation, investigations, intellectual property disputes and similar matters.

For additional information with respect to certain of these and other factors, see the most recent Form 10 Q/A and Form 10-K/A 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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