Nortel -- Northern Telecom -- and Rockwell Semiconductor Systems to Deliver High-speed Internet Access to the Mass Market in 1998.

Calif.--(BUSINESS WIRE)--Nov. 17, 1997--

Market leaders take first step toward high-speed Internet access for

the masses and plan to seek broad industry collaboration

Nortel (Northern Telecom) and Rockwell Semiconductor Systems have announced an agreement to enable high-speed Internet access to the mass market in 1998. The Nortel/Rockwell low-cost solution is 17 times faster than the fastest analog modem, and is easy to deploy in today's telephone network. Under the agreement, Nortel and Rockwell will work together to enable modems using Rockwell's Consumer Digital Subscriber Line (CDSL) chipset to interwork with Nortel's 1-Meg Modem network equipment. The joint solution would combine the power of the network and the power of the desktop to deliver "always connected" Internet access at up to a megabit per second with simultaneous voice service over a single standard telephone line.

Together, Nortel and Rockwell bring formidable resources to the industry challenge of broadly deploying 1-Mbps digital modem services. Rockwell -- the world's leading modem chipset supplier, with more than 70 percent of the total modem marketplace and shipments totaling nearly 200 million units to date -- will market CDSL modems through normal retail channels. Nortel -- whose equipment serves nearly half the lines in the North American public telephone network -- intends to integrate the 1-Meg Modem technology into its telephone network equipment.

"We are extremely enthusiastic about this agreement and its potential for speeding the delivery of high-speed Internet access to mainstream consumers in 1998," said Steve Edwards, assistant vice president and general manager, Data Access Solutions, Nortel. "By bringing together the worldwide leader in mass-market modem chipsets and the pre-eminent supplier of large-scale digital networks to public carriers, we hope to quickly build industry-wide support for mass-market, high-speed Internet service next year."

"This agreement comes at an important time in the growth of the Internet -- early enough to promote broad-based collaborative work and avoid a lengthy technology debate," said Raouf Halim, vice president and general manager for Rockwell Semiconductor Systems, Network Access Division. "The industry has the unique opportunity to forge 1Mbps modem standards now, so we can deliver this technology to early adopters as soon as the second half of 1998."

The Nortel/Rockwell initiative is designed to meet the following criteria for quick mass-market acceptance:

-- It's Easy to Use: The next-generation modem should be

inexpensive, easy to install, and deliver speeds that match

the ways people use the Internet today.

-- It's Easy to Deploy: The next-generation modem should

economically fit into the carrier's existing operations and be

compatible with the telephone network now serving subscribers,

without the need to install a "splitter" or re-wire the home.

-- It's Always Connected: The next-generation modem should allow

simultaneous support of voice and data over a single twisted

pair.

-- It's Ready for the Mass-Market: A variety of compatible

next generation modems should be available to the consumer

through existing market channels.

In October, Nortel announced its 1-Meg Modem solution, a mass-market, plug-and-play high-speed data solution that delivers Internet access at up to 1 megabit per second -- 17 times faster than a 56k modem. The 1-Meg Modem solution -- based on Nortel's Consumer Digital Modem(TM) (CDM) technology -- is extremely easy to deploy. It requires no rewiring in the central office, and no subscriber service call to install a POTS "splitter" or re-wire the home. It is compatible with current POTS voice features and extension phones in the home or business. And the service is extremely tolerant of phone-line length and condition, compatible with the vast majority of all non-loaded telephone lines.

Rockwell's version of low-cost, high-speed Internet access -- called Consumer DSL(TM) or CDSL -- was also introduced last month. Rockwell's CDSL maintains a highly reliable, continuous connection -- even while simultaneously making a voice call on the same line. The company is also using advanced semiconductor design and manufacturing technology that will make CDSL modems as affordable and easy-to-deploy as today's traditional analog modems. Rockwell is designing its CDSL chipsets so that customers can create client-side and central-site modems at traditional price points that incorporate all existing data and fax modem modulations including K56flex, V.34 and V.32bis. The chipsets will be software-upgradeable to new capabilities, which will be important as standards are finalized and as the company starts receiving customer feedback from field trials.

Nortel and Rockwell expect interoperable product and service roll-outs for these new technologies to begin by the second quarter of 1998 or earlier. Rockwell and Nortel plan to work with key industry participants to promote the availability of interoperable high speed data solutions and ensure the continued growth of the content, services, and applications on the Internet that consumers are demanding.

Rockwell Semiconductor Systems and Electronic Commerce, based in Newport Beach, Calif., is a leading worldwide provider of semiconductor system solutions for personal communications electronics and systems, software and services for the global call center industry. Rockwell Semiconductor Systems comprises five divisions -- Personal Computing, Network Access, Personal Imaging, Wireless Communications, and Digital Infotainment. Personal Computing is a leading supplier of communications and media processing products for the PC. Network Access offers a broad line of high-bandwidth communications and networking devices including central site modems, xDSL, ATM and T1/E1 transceiver products. Digital Infotainment focuses on products for the digital consumer electronics information and entertainment markets. Personal Imaging is the world leading supplier of devices for facsimile products and develops and manufactures semiconductors for multifunctional peripherals, printers, personal video and digital imaging products. Wireless Communications develops cordless and cellular chipsets, GPS, power amplifier and front end receiver components for all major wireless standards. The Electronic Commerce Division, based in Wood Dale, Ill., is a leading supplier of call center systems and personalized electronic commerce applications software.

Rockwell is a global electronics company with leadership market positions in industrial automation, semiconductor systems, and avionics and communications with FY97 sales of approximately $8 billion and 44,000 employees. Rockwell's world headquarters is located in Costa Mesa, in Orange County, California.

Nortel offers public carriers a full range of solutions for Internet access, multimedia Internet, and remote-access outsourcing. Nortel's unique position as a full-service builder of data and voice networks has resulted in several industry-leading solutions, such as Internet Thruway Internet access solution and the carrier-class Rapport remote access switch.

Nortel had total 1996 revenues of $US 12.8 billion and has approximately 70,000 employees worldwide. -0- Editor's Note: One-on-one interviews can be arranged by any of the above contacts, some of which will be at COMDEX in the Rockwell Booth at the Sands Expo Center, Booth No. S2633.

CONTACT: Joanne Latham

Nortel

[phone]

[e-mail]

pager: [phone] PIN 5208682

or

Bob Michael

Nortel

[phone]

[e-mail]

or

Eileen Algaze

Rockwell Semiconductor Systems

[phone]

[e-mail]

pager: [phone]

www.rss.rockwell.com

or

Lisa Thielmann

Benjamin Group for Rockwell

pager: [phone]

or

Or visit Nortel's website at www.nortel.com