City of Roanoke Deploys Optical Ethernet Solution from Nortel Networks; Expects to Provide Faster, More Cost-Effective eGovernment Services.

Business Editors & High Tech Writers

ROANOKE, Va.--(BUSINESS WIRE)--Nov. 4, 2002

The City of Roanoke, Virginia, recently ranked #1 in the nation for eGovernment services, is deploying an Optical Ethernet solution from Nortel Networks (NYSE:NT) (TSX:NT) to further enhance its services and make them faster and more convenient than ever before for citizens.

Roanoke plans to pioneer use of high-bandwidth applications like GIS (Geographical Information Systems) to provide value-added services to its citizens, such as sky-view property photos, land gradings and more accurate real estate valuations. Roanoke also plans to use its Optical Ethernet network to consolidate voice and data traffic over one network.

"We are proud to be at the forefront of eGovernment evolution, leveraging Nortel Networks leading Optical Ethernet technology to provide our citizens with convenient and timely access to city information and services," said Joe Slone, director of technology, City of Roanoke.

Roanoke has created a Web portal to provide municipal services, such as building registrations; parade and other permits; team sports registrations and up-to-date statistics; traffic ticket payments; municipal facility locations; and real-time information.

"By deploying an Optical Ethernet network from Nortel Networks, we will be able to cost-effectively increase our network capacity, and to increase the speed at which our citizens gain access to information over the portal," Slone said. "Not only are we upgrading the level of service, but we're also planning for the future. We know that use of eGovernment services in Roanoke will continue to increase and we are planning accordingly."

As part of this Optical Ethernet solution, the City of Roanoke is deploying Nortel Networks OPTera Metro 3500 Multiservice Platforms and next generation SONET devices. The City's Optical Ethernet solution will incorporate Resilient Packet Ring (RPR) technology to enable efficient use of network resources and flexible transport of the city's Ethernet traffic. The network will consist of two backbone rings across 10 sites, leaving sufficient bandwidth for future expansion. Roanoke will also deploy Nortel Networks Passport 8600 Routing Switches and Business Policy Switches.

The Optical Ethernet solution will also enable the City of Roanoke to enhance E-911 response, further benefiting its citizens. As the E-911 center receives emergency calls, the Optical Ethernet network will provide additional capacity to help route information to police, firemen and other emergency personnel. This will enable faster access to police records, warrants, city maps and other time-critical data.

Roanoke will also use its Optical Ethernet network to expand internal Web-based applications and drive greater employee productivity. Employees will have real-time access to self-service human resources applications like payroll and retirement benefits. The City of Roanoke plans to use the increased capacity and flexibility of the network to add video-based distance learning for city staff.

"Optical Ethernet is giving local governments like the City of Roanoke the ability to create a very simple and flexible network infrastructure for connecting with and delivering ubiquitous services to the community, all while reducing costs and network complexity," said Marco Pagani, president, Optical Ethernet, Nortel Networks.

Roanoke, Virginia is located midway between New York City and Atlanta on Interstate 81, 168 miles west of the state capital, Richmond. The city is the center of one of Virginia's largest metropolitan regions, and a hub of transportation, finance, and industry for the southwestern part of the state. Roanoke was recently ranked #1 in the nation for eGovernment -- population 75,000 to 125,000 -- by the Center for Digital Government and Government Technology magazine.

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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