Dacom Selects Nortel Networks to Build Metro DWDM Backbone Network; New Network Will Allow Dacom to Provide Storage Area Network Services to Enterprises.

Business Editors/High-Tech Writers

SEOUL, Korea--(BUSINESS WIRE)--Nov. 18, 2001

Nortel Networks (NYSE:NT)(TSE:NT.) has won a contract to supply Dacom Corporation of Korea an Optical Metro backbone network based on dense wavelength division multiplexing (DWDM). The equipment was sold through local distributor LG Electronics.

DWDM expands the transmission capacity per wavelength of optical networks, allowing service providers like Dacom to increase bandwidth and offer new, revenue-generating services. Using a low-cost, easily manageable network based on Nortel Networks OPTera Metro 5200 Multiservice Platform, Dacom will be able to launch Storage Area Network (SAN) data backup services for its enterprise customers.

"We chose Nortel Networks metro DWDM optical backbone system because of its proven reliability and performance," said Suh In-ho, director, network engineering, Dacom. "The OPTera Metro 5200 platform provides a highly stable and scalable system that enables Dacom to offer value-added SAN services to our enterprise customers."

Nortel Networks OPTera Metro 5200 is protocol and bit-rate independent. It integrates ATM, FDDI, Fiber Channel and other networks typically deployed by educational institutions, enabling migration to ultra high-speed networks. It can multiplex 10 gigabits per second per wavelength for up to 32 wavelengths over a single optical fiber pair, providing the industry's highest density capacity per shelf.

"Our OPTera Metro solution delivers the flexibility and scalability to respond rapidly to changing market demands, and the service differentiation required to help generate new revenues for Korean companies such as Dacom," said Won Ryul Shin, vice president, Nortel Networks Korea.

In June 2001, Nortel Networks won a contract to deliver a DWDM Optical Metro solution enabling Korea Telecom to provide broadband Internet access and deliver customized, value-added, IP-based services to Korean residences and businesses.

OPTera Metro 5200 is part of Nortel Networks complete, flexible Optical Metro portfolio of DWDM, next generation SONET, and Optical Ethernet products, currently deployed in more than 1,000 customer networks in 45 countries. Nortel Networks held the No.1 position in the global metro DWDM market in the third quarter of 2001 with a 37 percent market share, according to a report issued last week by the Dell'Oro Group.

Incorporated in 1982, Dacom Corporation operates a number of successful Internet business sectors. The Company's Internet service Chollian boasts the largest number of subscribers in Korea, at over three million. Dacom's Korea Internet Data Center is equipped with the largest Internet backbone network infrastructure in the nation.

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 Metro Networks, Wireless Networks and Optical Long Haul 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 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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