Nortel Networks Data Network Transforms University E-Learning Capabilities; University of Porto School of Engineering Deploys `Virtual Campus' Network.

Business Editors/High-Tech Writers

PORTO, Portugal--(BUSINESS WIRE)--May 19, 2003

The School of Engineering of the University of Porto (Faculdade de Engenharia da Universidade do Porto) has deployed enterprise data solutions from Nortel Networks (NYSE:NT) (TSX:NT) to expand its core network and provide better services to its students. The Faculty, one of the largest and most prestigious Engineering schools in Portugal, is one of 16 different Faculties at the University of Porto and is attended by over 6,000 undergraduates and 1,000 Masters and PhD students.

"As the largest private network in the University of Porto, the school's network places high requirements on performance and quality of service of the core switches," said Jorge Rocha, network manager, School of Engineering, University of Porto. "We were looking for a network that would offer a reliable, scalable and future proof solution for our local area network. Nortel Networks solutions transformed our ideas into reality."

The new 'mission-critical' high-speed network allows students and staff to benefit from a range of new services, including video conferencing, video streaming of lectures, and on-line classrooms. The expanded network allows faculty members to see their teaching plans from any classroom, as well as to prepare lectures and read student papers online. As a result, the School of Engineering has created a virtual campus, offering flexible online learning opportunities to meet the changing needs of its students.

"It was fundamental to provide the Faculty with a highly-reliable and resilient network infrastructure that is easily scalable," said Jordi Casamitjana, vice president and managing director for Nortel Networks, Iberia. "With this new infrastructure, the Faculty can easily expand the network as capacity requirements grow, transforming it into a 'future proof' solution and creating new pathways into higher education. This new network demonstrates how technology can really add value to today's education environment."

Nortel Networks provided a network infrastructure that is fully capable of supporting Quality of Service (QoS) from the edge to the core. The School of Engineering's network infrastructure is based on Nortel Networks enterprise data portfolio, including Nortel Networks BayStack 450 Ethernet Switching, Nortel Networks Passport 8600 Routing Switch, and Nortel Networks Alteon 2424 SSL Accelerator.

"There was an increased need to upgrade the data networking infrastructure to enable new applications to improve the school's way of life, providing the students with transparency and security," Rocha said. "This solution for high-performance networking was found in Nortel Networks Passport 8600, which uses one of the best technologies in Gigabit Ethernet Enterprise solutions."

"An important objective was to keep the management simple, as well as maintaining a highly flexible environment for future modifications or upgrades," Rocha said. "Due to the size of the network, we built our own management software solutions. Nortel Networks equipment proved to easily adapt and integrate to this environment. Our objective was clear and we knew what we wanted, it was imperative that we needed an ally like Nortel Networks who clearly understood our needs, which resulted in today's network."

As part of the backbone network, Nortel Networks Alteon 2424 SSL Accelerator allows the School to improve Internet access as well as enhancing security.

The new School of Engineering of the University of Porto communications network is an example of how Nortel Networks 'One Network. A World of choice' enterprise vision allows universities to increase user productivity, lowering networking costs. It enables organizations to eliminate the boundaries between services, users and locations, while delivering a consistent user experience no matter where and how the network is accessed. By deploying a more flexible, secure infrastructure, the Faculty is now able to improve the performance of its network offering the latest technology to students.

The University of Porto (www.up.pt) is divided into 16 organic units: 14 Faculties plus two others (the Management School of Porto - EGP and Social Services of the UP - SASUP), and each of these has its own management team. The 16 different Faculties are located in three different areas of the historical city of Porto, downtown, including schools, university halls of residence and sports facilities; in Asprela, north of the city; and on the west side of the city (Campo Alegre) which lays on the banks of the river Douro.

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.

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