Rose-Hulman Deploys Converged Voice, Data, Wireless Solutions from Nortel Networks.

SANTA CLARA, Calif. -- Cost-Effective, Reliable, Easy to Manage Solutions Modernize Campus; Improve Faculty, Staff, Student Productivity

Rose-Hulman Institute of Technology, one of the nation's leading engineering, mathematics and science colleges, has deployed new, state-of-the-art converged network solutions from Nortel Networks (NYSE:NT)(TSX:NT).

These solutions have enabled Rose-Hulman's existing network, also supplied by Nortel Networks, to accommodate more users of high-bandwidth applications and services, and to support IP (Internet Protocol) telephony, wireless IP telephony, and streaming video and multimedia.

Rose-Hulman Institute of Technology has been ranked for the last five years as the nation's #1 college or university that awards a bachelor's or master's as its highest degree in engineering, according to U.S. News and World Report"s "America's Best Colleges" report. With 400 faculty and staff members and 1,800 students, Rose-Hulman has deployed these new solutions from Nortel Networks to increase the capacity of its communications infrastructure by an order of magnitude while accommodating a growing student population. In addition, the school is using local area network (LAN) and policy services from Nortel Networks to control bandwidth use by its student population.

"We have a very fundamental IT organizational philosophy - to specialize in fire prevention versus fire fighting," said Louis Turcotte, vice president for Administrative, Instructional and Information Technology at Rose-Hulman Institute of Technology. "We elected to implement Nortel Networks data, telephony, and wireless LAN solutions because we considered them to be the most reliable. Our data and voice network is an essential utility that simply cannot be subject to service disruption. In the more than two years we have used Nortel Networks converged data and IP Telephony solutions, it has been rock solid reliable and completely transparent to the campus."

By deploying Nortel Networks advanced IP telephony and Ethernet routing solutions, Rose-Hulman has increased its communication infrastructure's bandwidth capacity and improved user-connectivity. Rose-Hulman's commitment to a transparent migration to IP telephony also allows it to tout a record of 500 days without an unplanned network outage.

"When Rose-Hulman decided to go with a converged network that provided instantaneous access to a number of critical applications, they recognized the need to increase the capacity of their local area network and perfectly-tune the infrastructure to provide the services required of the applications they need," said Atul Bhatnagar, vice president and general manager, Enterprise Data Networks, Nortel Networks. "With our customized solutions, we were able to provide Rose-Hulman with a well-architected solution for the entire campus to deliver voice, data and wireless technologies seamlessly."

Nortel Networks created a resilient, high-performance campus core network, centered on Nortel Networks Passport* Ethernet routing switches, that delivers Gigabit connectivity to every wiring closet and supports converged IP applications. To create the new high-performance network, Rose-Hulman is integrating several Nortel Networks solutions, including:

--Nortel Networks WLAN 2200 Series to provide secure mobile connectivity across the campus environment In addition to mobile connectivity, the award-winning WLAN solution provides comprehensive security to protect the network and users, advanced QoS for voice and fully-automated management.

--Nortel Networks Passport 8600 Routing Switches, which provide Gigabit switching for the campus LAN, and Nortel Networks BayStack Switches to deliver Gigabit connectivity in additional buildings and ensure integrity of latency-sensitive applications. The school also uses Nortel Networks Passport Edge Switches, deployed in high-density buildings to aggregate Ethernet and Fast Ethernet connections for transport to the campus network over Gigabit Ethernet uplinks.

--Nortel Networks Alteon Application Switches and BayStack Policy Switches, which provide network traffic prioritization, policy management and advanced IP Quality of Service capabilities to support resource-intensive, delay-intolerant applications like IP telephony and video streaming.

--Nortel Networks Succession 1000M, IP phones and Nortel Networks CallPilot unified messaging for IP telephony and other converged applications.

--Nortel Networks Contivity Secure IP Services Gateways for security across the entire infrastructure and secure Virtual Private Networking remote access.

--Nortel Networks Optivity Switch Manager for quick, effective management of the entire network from any location.

Nortel Networks relationship with Rose-Hulman furthers Nortel Networks position as a leader in the education market segment. More than 10,000 education customers worldwide have installed communications infrastructure solutions from Nortel Networks, including the University of Connecticut, the University of Texas at Austin, Massachusetts Institute of Technology, Seoul National University, Ohio State University, the University of Ulster, Stanford University, George Mason University, Worcester Polytechnic Institute, and the Philadelphia Unified School System.

Nortel Networks philosophy in convergence is to eliminate the barriers to communication that inhibit progress. Central to this philosophy is the ability to deliver the lowest total cost of ownership to customers by leveraging existing infrastructure while simplifying and consolidating network maintenance and operations in a converged environment. Nortel Networks is uniquely able to provide convergence solutions to customers of all sizes in all industry verticals and is the only company to have deployed more than 50 million enterprise telephony lines in addition to 50 million Ethernet ports.

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 or www.nortelnetworks.com/media_center.

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 outcome of Nortel Networks independent review and planned restatement of its previously announced or filed financial results; the impact of the management changes announced on April 28, 2004; the impact of the inability to meet Nortel Networks filing obligations on support facilities and public debt obligations; the sufficiency of Nortel Networks 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; continued reductions in spending by Nortel Networks customers; fluctuations in Nortel Networks operating results and general industry, economic and market conditions and growth rates; the communication by Nortel Networks auditors of the existence of material weaknesses in internal control; Nortel Networks ability to recruit and retain qualified employees; fluctuations in Nortel Networks cash flow, level of outstanding debt and current debt ratings; the use of cash collateral to support Nortel Networks normal course business activities; the dependence on Nortel Networks subsidiaries for funding; the impact of Nortel Networks defined benefit plans and deferred tax assets on results of operations and Nortel Networks cash flows; Nortel Networks dependence on new product development and its ability to predict market demand for particular products; Nortel Networks ability to 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; barriers to 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; changes in regulation of the Internet; the impact of the credit risks of Nortel Networks customers and the impact of customer financing and commitments; stock market volatility generally and as a result of acceleration of the settlement date or early settlement of Nortel Networks purchase contracts; the impact of Nortel Networks supply and outsourcing contracts that contain delivery and installation provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the future success of Nortel Networks strategic alliances; and the adverse resolution of litigation, investigations, intellectual property disputes and similar matters.

For additional information with respect to certain of these and other factors, see the most recent Form 10 Q/A and Form 10-K/A 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, Business Without Boundaries, Passport, BayStack, Alteon, Succession, CallPilot, Contivity and Optivity are trademarks of Nortel Networks.