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Nortel Networks Strengthens Optical Portfolio with OPTera Long Haul DT; Australia's Optus Expected to be First to Deploy Next Generation Terminal.

Business Editors/High-Tech Writers

HANOVER, Germany--(BUSINESS WIRE)--March 12, 2003

Nortel Networks (Nortel Networks Limited, Brampton, Ontario, www.nortelnetworks.com) A world leader in telecommunications products, which includes switching, wireless and broadband systems for service providers and carriers, telephones and systems for residential and business users, computer telephony  (NYSE NYSE

See: New York Stock Exchange
:NT)(TSX TSX Toronto Stock Exchange (TSE before April, 2002)
TSX Transfer from Stack Pointer to Index
TSX True Space Extension
:NT) today enhanced its optical long haul Long distance. Long haul implies traversing a state or a country. Contrast with short haul.  portfolio with the announcement of Nortel Networks OPTera Long Haul DT, a next generation DWDM (Dense WDM) The term given to wavelength division multiplexing (WDM) when significantly more channels were being added. Since WDM is increasingly more "dense" all the time, both terms are used synonymously. See WDM.

DWDM - wavelength division multiplexing
 (dense wavelength division multiplexing See WDM. ) terminal designed to promote network and operational efficiencies.

Used in conjunction with Nortel Networks OPTera Long Haul Optical Line Systems, OPTera Long Haul DT will position service providers to drive significant cost savings and realize better return on investment for both new and existing optical infrastructure.

Optus, a leading Australia-based service provider, expects to be first to deploy OPTera Long Haul DT, with plans to place it in service in Optus' new optical network in July 2003. Optus purchased OPTera Long Haul DT as part of a contract for voice over IP and optical solutions announced in April 2002. The Optus network is expected to span 2,852 kilometers from Perth to Adelaide.

"OPTera Long Haul DT will make Nortel Networks harder to beat in long haul DWDM going forward," said Dave Dunphy, principal analyst, optical infrastructure, Current Analysis. "Nortel Networks has racked up a lot of success and experience in long haul to date, but needed to take this first step to consolidating its long haul portfolio to reduce development costs, and to provide a lower-cost migration path to secure the installed base while increasing competitiveness in 'greenfield' accounts."

"OPTera Long Haul DT addresses all of these goals with lower capex and opex, thanks to improved competitive density and footprint, increased distance without the cost of Raman, tunable lasers to lower sparing costs, and the flexibility of its service-transparent interfaces and upgraded operations tools," Dunphy said.

In North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere.  and Europe, where many service providers continue to focus on lowering capital (capex) and operating (opex) expenses by leveraging existing infrastructure, OPTera Long Haul DT will position them to evolve their networks efficiently and cost-effectively to address changing market demands.

In the Asia Pacific region and Europe, where many service providers are looking to build new and more efficient overlay networks, OPTera Long Haul DT will allow for a simplified architecture that leverages the latest technology to provide extended network reach without signal amplification, reduced floor space and operating expenses Operating expenses

The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted.
, and managed, 'end-to-end' transparent services.

"Based on our experience with and commitment to long haul DWDM networking, Nortel Networks has developed a unique perspective on how our customers' network and operational requirements (programming) operational requirements - Qualitative and quantitative parameters that specify the desired capabilities of a system and serve as a basis for determining the operational effectiveness and suitability of a system prior to deployment.  have evolved over the last two years," said Brian McFadden, president, Optical Networks, Nortel Networks. "OPTera Long Haul DT is the first step in development of a network that implements the key attributes for service providers' current and future requirements."

OPTera Long Haul DT is part of Nortel Networks OPTera Long Haul Optical Line Systems portfolio. Nortel Networks is the leader in optical solutions, according to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 the Dell'Oro Group, with the top market share position globally in 2002 for total optical transport, long haul DWDM and global DWDM markets. Nortel Networks has been #1 in each of these markets for the three years ending with 2002, according to Dell'Oro.

Deployed in more than 1,000 customer networks in 65 countries, Nortel Networks end-to-end optical network portfolio includes next generation SONET/SDH, optical switching products, photonics (WDM (1) (Wavelength Division Multiplexing) A technology that uses multiple lasers and transmits several wavelengths of light (lambdas) simultaneously over a single optical fiber. ), and Optical Ethernet products. Nortel Networks has deployed more than 250,000 network elements globally.

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 Noun 1. communications technology - the activity of designing and constructing and maintaining communication systems
engineering, technology - the practical application of science to commerce or industry
 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 Growth Rates

The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures.

Notes:
Remember, historically high growth rates don't always mean a high rate of growth looking into the future.
; 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 Monetary compensation for a loss, detriment, or injury to a person or a person's rights or property, awarded by a court judgment or by a contract stipulation regarding breach of contract. ; 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 An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute.

When a person begins a civil lawsuit, the person enters into a process called litigation.
. For additional information with respect to certain of these and other factors, see the reports filed by Nortel Networks with the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area.  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.
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Publication:Business Wire
Geographic Code:1CANA
Date:Mar 12, 2003
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