Cox Communications Deploys Nortel Networks Optical Ethernet Solution; Provides Cost-Effective, High-Bandwidth Metro Ethernet Services for Enterprises.

Business Editors/High-Tech Writers

OTTAWA--(BUSINESS WIRE)--Oct. 8, 2002

Cox Communications, Inc. (NYSE:COX), one of the largest multiservice broadband communications companies in North America, has deployed an Optical Ethernet solution from Nortel Networks (NYSE:NT)(TSX:NT.) to cost-effectively deliver high-speed Internet access, virtual local area networks and other metro Ethernet services to its enterprise customers.

Following testing and qualification, Cox Communications has deployed an Optical Ethernet solution from Nortel Networks as part of its Cox Business Services offering in San Diego. By using Optical Ethernet to simplify and centralize networks, Cox Communications expects to save its business customers as much as 50 percent on network costs.

Nortel Networks OPTera Metro 3500 Multiservice Platform, a next generation SONET device incorporating Resilient Packet Ring (RPR) technology, will enable Cox Communications to use its network resources more efficiently and to flexibly deliver Ethernet services.

Four backbone RPR rings will provide Cox Communications with an Optical Ethernet packet network covering much of metro San Diego. Initially, Cox Communications plans to offer 10 and 100 megabits per second Ethernet and Gigabit Ethernet services, in addition to the traditional voice services it already offers.

"Nortel Networks provides us with a very simple but highly-reliable platform to expand our business and deliver new Optical Ethernet services to our customers," said Albert Young, vice president, Telephony and Transport Engineering, Cox Communications.

The Optical Ethernet solution from Nortel Networks combines the flexibility, simplicity and cost effectiveness of Ethernet with the reliability, speed and reach of optics. It is ideally suited for transport of all types of traffic across the metro network, and for delivery of new packet services.

"The rise of consumer demand for broadband services has created an interesting opportunity for cable companies to generate new revenue streams and expand their customer base," said Marco Pagani, president, Optical Ethernet, Nortel Networks. "We are committed to working with Cox Communications to cost-effectively expand their broadband service business, and to consolidate their voice, video and data traffic on a common infrastructure. Our Optical Ethernet solution will position Cox Communications business customers to reduce their IT costs by simplifying and centralizing their networks."

Nortel Networks comprehensive product portfolio addresses the expanding telecommunications requirements of cable operators, delivering converged optical long haul and metro networks; voice over IP (Internet Protocol) solutions designed with PacketCable in mind; and Intelligent Internet data solutions to allow efficient and tailored data bandwidth management.

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, 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.

Nortel Networks, the Nortel Networks logo, the Globemark and OPTera are trademarks of Nortel Networks.