NORTEL NETWORKS UNVEILS INDUSTRY'S FIRST 10-GIGABIT ETHERNET OPTICAL ADAPTER FOR SERVERS.

Combining the power of optical networking with the simplicity, flexibility and cost effectiveness of Ethernet, Nortel Networks (NYSE:NT)(TSE:NT.) has announced the industry's first 10-Gigabit Ethernet Optical Adapter for Servers. The device is currently in trials with Hewlett-Packard Company.

Nortel Networks 10-Gigabit Ethernet Optical Adapter for Servers drives a ten-fold increase in access and data transfer speeds between servers and networks compared to technologies available to end users and businesses today. This is expected to improve the performance and economics of enterprise and Internet data center services delivery.

In the past, server-to-switch transmission rates were constrained both by system architecture bottlenecks and link speed limitations, but newer switching equipment now scales to 10-Gigabit per second levels. Servers are also evolving rapidly to include multiple CPUs, high-speed buses and switched architecture designs that will significantly improve data throughput and management.

Nortel Networks 10-Gigabit Optical Ethernet Adapter for Servers will help to accelerate deployment of 10-Gigabit Ethernet into data centers by reducing congestion and maximizing the performance of servers and storage solutions. For end users, this will mean more efficient, less complex and higher performance networks.

"Although today's communications technology is powerful, its capabilities and effectiveness are limited by network/server bottlenecks," said Pat Walsh, vice president, product management, High-Performance Optical Component Solutions, Nortel Networks.

"Our 10-Gigabit Ethernet solutions are designed to break through the bottleneck to deliver high-speed access to eBusiness transactions, databases and other Web-related applications," Walsh said. "With this product, Nortel Networks continues to provide customers with greater efficiencies and lower costs by leveraging Optical Ethernet capabilities to simplify wide area, metro and local area networks."

The 10-Gigabit Ethernet adapter is currently in trials on HP Superdome and HP 9000 series servers.

"Considering customers' increasing demands on data centers and networks, this announcement represents a significant milestone in 10 Gigabit Ethernet technology," said Mark Hudson, director of Marketing, HP Business Systems and Technology Organization. "This announcement complements HP's strategy to provide powerful solutions for an always-on Internet infrastructure."

Nortel Networks 10-Gigabit Ethernet Optical Adapter for Servers will operate in a PCI-X slot and enable any PCI-X based server to cost-effectively accelerate I/O to multi-gigabit speeds. This will enable very high-speed data communication between servers and downstream network devices like switches and routers.

10-Gigabit Ethernet is an emerging technology led by the IEEE 802.3ae Working Group. Cahners In-Stat (September 2000) expects demand for 10-Gigabit Ethernet Optical Adapters for Servers to reach 286,000 units by 2004. For the same time period, IDC forecasts demand for more than 4.5 million 10-Gigabit Ethernet switch ports.

Leading a portfolio of 10-Gigabit Ethernet ICs, modules and subsystems for computing, storage and switch router vendors, Nortel Networks expects to begin sampling 10-Gigabit Ethernet Optical Adapters for Servers later this year. Nortel Networks previously announced 10-Gigabit Ethernet integration on Nortel Networks Passport 8600 Routing Switch. Nortel Networks Optical Ethernet solutions are in service worldwide.