Madrid Autonomous Region Deploys Research Network with Nortel Networks Solutions; Broadband Network Infrastructure Will Use DWDM Optical Communications.

Business Editors/High-Tech Writers

MADRID, Spain--(BUSINESS WIRE)--May 6, 2003

Nortel Networks (NYSE:NT) (TSX:NT) has supplied the necessary optical solutions to deploy and set up the Research Telematics Network of the Madrid Autonomous Region.

Nortel Networks OPTera Metro 5200 multiservice platform, an optical-fibre communications system using dense wavelength division multiplexing (DWDM), has been deployed to deliver broadband optical services. It will interconnect universities located in the region with the National Institute of Aerospace Technique (INTA), the Superior Center for Scientific Research (CSIC) and the Internet.

The network is part of the RedIRIS (Interconexion de los Recursos InformaticoS) Network, Spain's national academic and research network. Currently about 250 institutions are connected to RedIRIS, mainly universities and research and development centres.

Among the universities that are expected to be connected through the Research Telematics Network are: Universidad de Alcala, Universidad Autonoma Madrid, Universidad Carlos III, Universidad Complutense de Madrid, Universidad Nacional de Educacion a Distancia-UNED, Universidad Politecnica de Madrid and Universidad Rey Juan Carlos.

This new network will allow the different university and scientific communities established in the Madrid Autonomous Region to use new information and communication technologies. Services such as storage networking, videoconferencing, remote laboratories, grid computing, high-speed Internet access, and other broadband data and voice services will greatly enhance the environment for science and technology research in the region.

To implement this project, Nortel Networks OPTera Metro 5200 and Nortel Networks Preside Optical Network Management solutions will provide seamless, high-speed, broadband network services on an open, scalable optical transport platform. The system will be compatible with SDH, Fast Ethernet, Gigabit Ethernet, ESCON, FICON, Fiber Channel, and legacy asynchronous fiber optics systems (FOTS/PDH), independent of protocol and binary transmission speed and reaching data rates up to 10 Gigabits-per-second. OPTera Metro 5200 offers very quick response to changing needs in transport services with its interface reconfiguration capability.

OPTera Metro 5200 has a capacity of up to 32 protected wavelengths, or 64 unprotected, with each wavelength capable of carrying up to 10 Gigabits-per-second of information. Preside Optical Management solutions ensure operational simplicity and efficiency through powerful and easy-to-use tools for planning, provisioning and assuring multiservice DWDM networks.

The Research Telematics Network is based on three independent fiber rings covering three main geographic areas in the region. The North ring, where the nodes of the Autonoma, Complutense, and Politecnica Universities of Madrid and UNED are located; the South ring where the Rey Juan Carlos and Carlos III universities are located; and the East ring, with the INTA nodes and University of Alcala. The three rings converge at the central node of the CSIC, connected to the Iris Network.

The ring topology protects each optical channel at the transport layer, providing resistance to failure in fiber sections or equipment line cards.

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 three consecutive years as of year-end 2002 with #1 market shares in total optical transport equipment, long-haul DWDM 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 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.

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