Nortel Networks Innovations, Alliances to Unleash Potential of Service Providers, Enterprises to Profit from High-Performance Internet.

Business Editors & High Tech Writers

ATLANTA--(BUSINESS WIRE)--June 4, 2001

Optical, Wireless, Core IP, Intelligent Internet, Voice Over IP

on Show at SUPERCOMM 2001

Nortel Networks (NYSE:NT)(TSE:NT.) will unveil today at SUPERCOMM 2001 a series of technology innovations and new alliances that will further enable enterprises and service providers to profit from the high-performance Internet by reducing the cost of networking and accelerating delivery of new revenue-generating services.

"For years, Nortel Networks has led the industry in delivering the lowest cost per bit, the critical first step in creating high-performance data networks," said Anil Khatod, chief marketing and strategy officer, Nortel Networks. "Now we're taking it to the next level, setting the agenda for service differentiation, maximum `profit per bit,' and new network economics."

"We will continue to unleash service provider potential to profit from the high-performance Internet through technology innovations and alliances with industry leaders," Khatod said. "We recognize that the competitive advantage and long-term success of our customers are driven by the ability to generate new services. And we are again leading the market by creating new business solutions, service opportunities and support capabilities that will enable service providers and enterprises to maximize profit per bit."

Capabilities Nortel Networks will feature this week at SUPERCOMM 2001 (Georgia World Congress Center, West Concourse, Hall H, Booth No. 8048) include:

Optical Internet

Nortel Networks is extending the reach of optics to deliver new revenue-generating services. At SUPERCOMM 2001, Nortel Networks will offer the first live demonstration of Nortel Networks OPTera Connect PX photonic switch, leveraging early versions of emerging architectural standard ASTN (automatic switch transport network) and GMPLS (generalized multi-protocol label switching) with its Smart Optical Network Solution. The demo will incorporate Juniper Networks and EMC products, and will show how non-optical devices can leverage the power of the optical network for dynamic delivery of client-driven services like optical virtual private networks (oVPNs) and storage networking.

In addition, Nortel Networks will show how metropolitan area bottlenecks can be eliminated by extending the Optical Internet directly into businesses using DWDM (dense wavelength division multiplexing), next generation SONET and Optical Ethernet technologies. Nortel Networks will also demo 10 Gigabit Ethernet and Resilient Packet Ring implementations. Collectively, these demos will illustrate Nortel Networks leadership in building fast, simple and reliable Optical Ethernet networks; reducing time-to-service; decreasing network and computing costs; and enhancing profit potential for service providers and enterprises.

Intelligent Internet

Nortel Networks is using the power of next generation MPLS networking to enable new IP (Internet Protocol) services, as well as to take advantage of existing network investments. It is enabling service providers to evolve into integrated providers of personalized services.

A demo using Nortel Networks Shasta 5000 Broadband Service Node and Alteon Personal Content Portal will show how service providers can increase profitability by more easily offering differentiated, value-added services through content filtering, automatic redirection to personal portals, delivery of streaming media, and end-user self administration. It will also show how a typical subscriber family might enjoy these personalized services.

Nortel Networks will also demo an IP VPN/IP Services solution and provisioning suite. Nortel Networks IP VPN Management solution provides a variety of integrated services that will help to ensure rapid, reliable IP VPN service delivery and increase revenue potential by allowing service providers to automatically deploy and manage next generation virtualized services.

Wireless Internet

Nortel Networks is driving evolution of the Wireless Internet, combining optically enabled, all-IP core networks and alliances with key application and device providers to deliver 2.5G and 3G business models carriers can quickly deploy.

At SUPERCOMM 2001, Nortel Networks will demo a Mobile Multimedia IP (M3IP) core network implementation. This will illustrate access and data delivery across wireless and terrestrial technologies using Session Initiated Protocol (SIP) and Enhanced Mobile IP (E-MIP) calls.

Carrier Voice over IP and Internet Telephony

Nortel Networks comprehensive Internet Telephony portfolio is transforming traditional voice networks into converged multiservice networks that will drive cost effectiveness while providing a platform for new service generation for carriers and productive applications for enterprises.

At SUPERCOMM 2001, Nortel Networks will showcase the industry's most complete Internet Telephony portfolio for service providers, which enables delivery of new revenue-generating services through mobility, multimedia and personalization for high-performance applications for enterprises. A demo of wireless and terrestrial convergence will show how simplified network design can enable carriers to enter markets rapidly with the full range of services in today's network, along with capability to offer new, customized, packet-based services.

Nortel Networks will hold a press conference, hosted by Khatod, on Tuesday, June 5 at 10 a.m. eastern time in room 308/309E at the Georgia World Congress Center. Khatod will discuss how Nortel Networks innovations and alliances are unleashing customer potential to profit from the high-performance Internet.

Nortel Networks is a global Internet and communications leader with capabilities spanning Optical, Wireless, Local, Personal Internet and eBusiness. The Company had 2000 U.S. GAAP revenues of US$30.3 billion and serves carrier, service provider and enterprise customers globally. Today, Nortel Networks is creating a high-performance Internet that is more reliable and faster than ever before. It is redefining the economics and quality of networking and the Internet, promising a new era of collaboration, communications and commerce. Visit us 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 impact of price and product competition; the dependence on new product development; the impact of rapid technological and market change; the ability of Nortel Networks to make acquisitions and/or integrate the operations and technologies of acquired businesses in an effective manner; general industry and market conditions and growth rates; 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 uncertainties of the Internet; stock market volatility; the ability of Nortel Networks to recruit and retain qualified employees; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; the impact of the credit risks of our customers; the entrance by Nortel Networks into an increased number of supply, turnkey, and outsourcing contracts which contain delivery, installation, and performance provisions, which, if not met, could result in Nortel Networks having to pay substantial penalties or liquidated damages; and the impact of increased provision of customer financing and commitments by Nortel Networks. 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. 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, OPTera, Shasta and Alteon are trademarks of Nortel Networks.