City of Milwaukee Builds `Safety' Network With Nortel Networks Optical Ethernet Solution; Improves Communication Between Emergency Organizations to Help Protect Citizens.

Business Editors/High-Tech Writers

MILWAUKEE--(BUSINESS WIRE)--Nov. 4, 2002

The City of Milwaukee is deploying an Optical Ethernet solution from Nortel Networks (NYSE:NT)(TSX:NT) to create a health and safety network with 64 times more bandwidth than existed before.

The increased reliability and capacity will position the City of Milwaukee to improve its response time in case of emergencies, enabling communication of critical information in an immediate fashion. Additionally, the City of Milwaukee's network planning manager estimates that the Optical Ethernet solution from Nortel Networks will enable Milwaukee to save at least US$15 million over the next 10 years by building its own network instead of leasing capacity.

"This new technology will provide the City of Milwaukee with an extremely fast, reliable and secure network - improving our ability to communicate within health and safety organizations and between them," said Mayor John O. Norquist. "As a result, we will be able to improve response times in responding to any emergencies, such as terrorist attacks or infectious diseases. Fundamentally, we are leveraging technology to help ensure the health and safety of our citizens."

The City of Milwaukee is deploying Nortel Networks OPTera Metro 3500 Multiservice Switches with Resilient Packet Ring (RPR) technology to build a highly reliable network backbone. RPR technology enables the city to create a dual path for traffic. Even in the event of a fiber cut or equipment failure, there is an instant switchover to another communication signal.

Milwaukee is also deploying OPTera Metro 3100 Multiservice Switches, Passport 8600 Routing Switches and Business Policy Switches to connect approximately 100 sites across 96 square miles, including police stations, fire stations, E-911 centers, the public health department, water and public works facilities, health centers and the port authority.

"By leveraging the ubiquity of Ethernet and speed of optics, the City of Milwaukee will be able to create a universal telecom utility network - a common communication infrastructure for high-speed information sharing," said Marco Pagani, president, Optical Ethernet, Nortel Networks.

"Going forward, we hope to also use this Optical Ethernet network to leverage economic development by making Milwaukee one of the most connected cities of the 21st century," said Randy Gschwind, Milwaukee's chief information officer. "We are working with schools, universities, libraries and other non-profit institutions that may benefit from being part of a high-bandwidth civic network."

Nortel Networks Optical Ethernet solution will enable the City of Milwaukee to easily expand its capacity in the future without any impact to today's services.

With a population of 596,974 that covers nearly 96 square miles, Milwaukee is the 19th largest city in the United States. Milwaukee is positioned in the center of the Midwest, in southeast Wisconsin on Lake Michigan's western shore. Milwaukee's prime location offers benefits for business and daily living.

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 was the worldwide leader in optical networking for 2001 and the first quarter of 2002 with #1 market shares in total optical transport equipment and metropolitan DWDM, according to the Dell'Oro Group.

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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