Nortel Networks Extends Next Generation Metro Optical Portfolio with OPTera Metro 4150; Offers Space, Power Savings, Double Port, Ring Density for Managed Multiservice Delivery.

Business Editors & High Tech Writers

LONDON--(BUSINESS WIRE)--Dec. 3, 2002

Nortel Networks (NYSE:NT) (TSX:NT) today announced a new addition to its optical networking portfolio with Nortel Networks OPTera Metro 4150 Multiservice Platform. Nortel Networks expects this next generation SDH platform to enable service providers and large enterprises to drive operational expenditure reductions and hasten delivery of new services.

"Nortel Networks is committed to redefining the economics of metropolitan networks because it is vital for the future success of our customers," said Brian McFadden, president, Optical Networks, Nortel Networks.

"With OPTera Metro 4150, we aim to help our customers create additional revenue opportunities by increasing Ethernet and broadband service delivery into business premises that attract spending on enterprise-led applications," McFadden said. "In addition, OPTera 4150 drives lower capex and opex through its full cross-connect capability right at the edge."

Nortel Networks OPTera Metro 4150 is generally available. It has already been deployed in a number of Nortel Networks service provider and enterprise customer networks worldwide, and is strengthening the solutions available through Nortel Networks distribution channels.

OPTera Metro 4150 is a next generation STM-4 (622 megabits per second) full access, high port density multiplexer with a fully non-blocking cross connect.

A key addition to Nortel Networks award-winning OPTera Metro 4000 portfolio, OPTera Metro 4150 provides 6 gigabits of non-blocking connection management for Ethernet, legacy and broadband TDM services in a small footprint. This STM-4 platform can hub 16 separate STM-1 (155 megabits per second) metro access rings and provide non blocking cross-connect down to VC-12 (2 megabits per second) granularity for complete bandwidth management for all services right at the metro edge.

OPTera Metro 4150 enables service presentation, transport, bandwidth configuration and management of all services including PDH, Ethernet and Fibre Channel to help operators drive new revenue opportunities from LAN extensions, Internet access and storage applications. Nortel Networks has installed more than 20,000 OPTera Metro 4000 platform network elements in operator networks around the world.

The OPTera Metro 4000 series consists of a protected switch core and a range of common service cards designed to help service providers offer a wide range of services, while driving lower operating costs by saving space, simplifying network management, and reducing spares requirements. In addition, DWDM support allows more bandwidth to be added on the same fibre. And through seamless interoperability with the OPTera Metro 5000 optical services platform, OPTera Metro 4000 provides complete, metro solutions capability.

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 increased provision of customer financing and commitments; stock market volatility; the entrance into an increased number of supply, turnkey, and outsourcing contracts which contain delivery, installation, and performance 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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