Nortel Networks Enhances OPTera Long Haul Portfolio; Raman Amplification Drives Reduced Costs for High Capacity Submarine Optical Backbones.

Business Editors/High-Tech Writers

CeBIT 2003

HANOVER, Germany--(BUSINESS WIRE)--March 13, 2003

Nortel Networks (NYSE:NT)(TSX:NT) today announced new, customer driven enhancements to the Nortel Networks OPTera Long Haul portfolio for use in un-repeatered submarine applications.

Extended, un-repeatered submarine links of up to 350 kilometers can now be achieved through Raman amplification, a network component that boosts the optical signal to achieve greater distances. This eliminates the need for costly submerged repeaters, therefore driving lower capital and operational costs when compared to traditional submarine solutions.

With Philippine Long Distance Telephone Company (PLDT), a Nortel Networks un-repeatered optical long haul platform has been successfully deployed in a large scale project in Asia as part of a previously announced contract.

"With Nortel Networks, we've shown that putting highly-reliable, high-capacity links across the sea can be cost-effective," said George Lim, senior vice president, PLDT. "Nortel Networks un-repeatered optical network solution links directly into our terrestrial optical network with common management and functionality as if the sea didn't exist, offering the opportunity for great operational savings."

Submarine communications systems with no repeaters or other submerged active equipment are known as "festoon networks." Festoon networks can be deployed with frequent connections across stretches of water, or with underwater cable instead of standard terrestrial links for more cost-effective connections along stretches of coastline.

Nortel Networks OPTera Long Haul un-repeatered platform is also aimed at terrestrial applications where constructing and maintaining repeater sites can be prohibitively expensive, as is the case in mountainous or densely forested regions.

The OPTera Long Haul un-repeatered platform is currently offered with a range of modules and configurations to optimize reach and capacity. The enhancements announced today will allow a single optical link of up to 350 kilometers, with capacity scaling from 10 to 800 gigabits per second (Gbps) per fiber pair.

The platform's commonality with Nortel Networks terrestrial applications, including proven hardware and a common management platform for seamless operation, will help position network operators to drive reduced network costs.

Open, wavelength translator interfaces can be achieved through the use of integrated dense wavelength division multiplexing interfaces on Nortel Networks SONET/SDH and optical cross connect products to interface directly into the link. The un-repeatered platform will operate on a wide range of optical fibre including NDSF, DSF, G655 and legacy cable as well as new deployments.

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 and OPTera are trademarks of Nortel Networks.