Connex Deploys Nortel Networks Multiservice Switches in Network Backbone; Europe's First Deployment of Passport 20000 Converges Voice, Data, Wireless; Enables New Services.

Business Editors & High Tech Writers

LONDON--(BUSINESS WIRE)--Jan. 30, 2003

Connex, a leading European telecom operator, has deployed Passport 20000 Multiservice Switches from Nortel Networks (NYSE:NT)(TSX:NT), enabling convergence of its voice and data traffic onto one, cost-effective network.

Connex has deployed three Nortel Networks Passport 20000 Multiservice Switches to build a high-capacity backbone network which can support second generation (2G) wireless traffic while enabling a smooth migration to a third generation (3G), packetized infrastructure. This migration positions Connex to reduce the cost of transporting traffic across its network, and to efficiently deliver voice and data-enhanced services to businesses and consumers.

This was the first live European deployment of Passport 20000, which has also been deployed in other service provider networks.

"The innovative convergence solutions delivered by Nortel Networks will position Connex to evolve to a next generation network that will support voice over packet and wireless data, driving reduced overall operational expenditures," said Vishant Vora, chief technical officer, Connex. "By deploying Nortel Networks Passport 20000, Connex has increased network capacity and improved its ability to offer new data services like IP (Internet Protocol) VPNs (Virtual Private Networks). Integrating Passport 20000 into our existing Passport network accelerated deployment time and provided investment protection for future expansion."

Engineered to scale to 160G, Passport 20000 is designed to help service providers address the challenge of cost-effectively scaling and converging disparate networks. It complements other Passport multiservice switches, including Passport 7000 and Passport 15000, to address service provider network requirements from the edge to the core. Furthermore, the multiservice flexibility of Passport 20000 makes it an ideal platform to enable service providers to migrate their ATM networks toward IP/MPLS at their own pace.

"Nortel Networks is absolutely focused on helping its customers navigate this important stage of network transformation, delivering solutions that both meet the networking challenges of today and lay the foundation for future evolution," said Sue Spradley, president, Wireline Networks, Nortel Networks. "Passport 20000 is ideal for customers like Connex who want to increase the capacity of their existing networks on a future-proof platform, as well as reduce operational expenditures and offer new services."

Nortel Networks has previously deployed Nortel Networks Succession softswitches and gateways and Passport 15000 Multiservice Switches for Connex.

Nortel Networks has been the global market share leader in multiservice WAN switching for six consecutive quarters as of year-end 2002, according to Synergy Research Group. With more than 40,000 systems deployed in over 1,500 customer networks globally, the Passport family of multiservice switches has proven field experience in delivering in-service reliability. Passport 20000 is a key component of Nortel Networks industry-leading portfolio of multiservice WAN switches, which includes Passport 15000 and Passport 7000.

Connex is the registered trademark of MobiFon S.A., the company which launched the first GSM network in Romania, on April 15, 1997. Connex is the leader of the mobile communications market in Romania, with 2.5 million GSM customers in November 2002. Connex offers roaming services in 95 countries/areas, through 224 operators. The main shareholders of Connex are two world leaders of mobile communications services: Telesystem International Wireless (TIW) and Vodafone. For more information on Connex, visit www.connex.ro.

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 customer financing and commitments; stock market volatility; the entrance into an increased number of supply and outsourcing contracts which contain delivery and installation 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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