SURFnet, Internet2 Deploy Optical Solutions from Nortel to Enable Unprecedented International Research Collaboration.

PITTSBURGH -- Leading Technology Organizations Bring Optical-Packet Capabilities to Critical International Exchange Points

SURFnet and Internet2 have deployed industry-leading optical solutions from Nortel (NYSE:NT)(TSX:NT) to provide optical interconnect capabilities into their internationally acclaimed research and education networks. The combination of these two deployments will allow for unprecedented secure and reliable collaboration among researchers and scientists globally.

SURFnet, the global pioneer in advanced network research, has deployed a Nortel Optical Multiservice Edge 6500 and a high-density Nortel Optical Cross Connect HDXc (HDXc) in its NetherLight advanced optical switching facility in Amsterdam. Nortel will also provide SURFnet with a Nortel Common Photonic Layer (CPL) for deployment in the SURFnet6 optical backbone network, which includes NetherLight as a major node.

Internet2, a consortium led by over 200 universities working in partnership with industry and government to develop and deploy advanced network applications and technologies, will deploy Nortel Optical Multiservice Edge 6500 and Nortel HDXc into the Manhattan Landing (MAN LAN) facility, a high-performance exchange point used to facilitate Internet Protocol (IPv4/v6) peering between U.S. and international research and education networks.

Nortel optical solutions offer new levels of scalability, packet capability and flexibility to these two high-performance nodes. As a result of this deployment, both NetherLight and MAN LAN will become main hubs of the Global Lambda Integrated Facility (GLIF). The GLIF community shares a common vision of building a new grid computing paradigm in which the central architectural element is optical networks, not computers, to support this decade's most demanding e-science applications. The GLIF's links are being made available for scheduled use by e-scientists and computer scientists involved with advanced data-intensive application, middleware, protocol and optical networking development.

"Deploying Nortel HDXc and Optical Multiservice Edge 6500 is a logical step in the evolution of NetherLight," said Kees Neggers, managing director, SURFnet. "It will allow us to further develop the prominent role The Netherlands is playing in the GLIF, with virtually unlimited switching capacity and seamless integration with our existing optical infrastructure."

As part of the Dutch GigaPort Next Generation Network project, SURFnet is building a hybrid optical and packet switching infrastructure using the latest optical technology from Nortel as part of its network evolution and expansion plan for the next seven years. Nortel's highly-integrated solution delivers both IP and optical broadband services over an extremely resilient common infrastructure, on top of SURFnet's own dark fibers, that is suited for and efficient for all traffic types. With unprecedented levels of intelligence, the hybrid network will use the unique blend of IPv4, IPv6 and optical technology that is best suited for each particular application, thus dynamically allocating the IP and optical bandwidth.

Similarly, the expansion of MAN LAN is one of the first steps within a broader Internet2 plan to design and deliver an advanced network infrastructure to meet the needs of its member community for 2006 and beyond. This plan includes the design of a hybrid optical packet infrastructure and the development of a national-scale evaluation testbed. With this Nortel deployment, the MAN LAN will expand its capabilities to incorporate additional optical cross-connect functionality for circuit switching, extending its ability to create optical paths for the research community.

"Internet2 is focused on enabling leading-edge network capabilities for the U.S. research and education community and working in close collaboration with our international partners such as SURFnet," said Steve Corbato, Internet2 director of network initiatives. "Through this integration of Nortel optical networking technology into MAN LAN, we will enable greater global research collaboration, while at the same time accelerating our work with our U.S.-based member community to create a new class of network infrastructure with both optical circuit and Internet packet capabilities."

"We're pleased to be working with world-leading research network operators such as SURFnet and Internet2 to pioneer new network architectures that better support data-intensive research applications," said Philippe Morin, general manager, Optical Networks, Nortel. "Our HDX platform has been developed to work seamlessly with our Optical Multiservice Edge 6500 to underpin the scalability and packet capabilities of these two major GLIF nodes."

The new capabilities of NetherLight and MAN LAN will be showcased as part of a live demonstration at the SC2004 High Performance Computing, Networking and Storage Conference, Nov. 6-12, 2004 in Pittsburgh, Penn.

About SURFnet

SURFnet operates and innovates the national research network, which connects over 150 institutions in higher education and research in The Netherlands. The organization is among the leading research network operators in the world. SURFnet is responsible for the realization of GigaPort Next Generation Network, a project of the Dutch government, trade and industry, educational institutions and research institutes to strengthen the national knowledge infrastructure. Research on optical and IP networking and grids is a prominent part of the project. For more information please visit www.surfnet.nl/info/en.

About Internet2

Led by more than 200 U.S. universities working with industry and government, Internet2 develops and deploys advanced network applications and technologies for research and higher education, accelerating the creation of tomorrow's Internet. Internet2 recreates the partnerships among academia, industry, and government that helped foster today's Internet in its infancy. For more information, visit: www.internet2.edu.

About MAN LAN

Manhattan Landing (MAN LAN) is a high performance exchange point, located in New York City, used to facilitate peering among U.S. and international research and education networks. The exchange point is currently operated through a collaborative effort between Internet2, New York State Education and Research Network (NYSERNet), Indiana University, and the Internet Educational Equal Access Foundation (IEEAF). Providing both high-performance Ethernet frame-based and optical interconnection functionality, MAN LAN supports leading research networks from around the world including: Abilene, CANARIE, GEANT, HEANET, SINET, SURFnet, and Qatar Foundation.

About Nortel

Nortel is a recognized leader in delivering communications capabilities that enhance the human experience, ignite and power global commerce, and secure and protect the world's most critical information. Serving both service provider and enterprise customers, Nortel delivers innovative technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. Nortel does business in more than 150 countries. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.

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's independent review and planned restatement or revisions of its previously announced or filed financial results; the impact of the management changes announced on April 28, 2004 and August 19, 2004; the impact of the inability to meet Nortel's filing obligations on support facilities and public debt obligations; the sufficiency of Nortel's restructuring activities, including the work plan announced on August 19, 2004 as updated on September 30, 2004, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; cautious or reduced spending by Nortel's customers; fluctuations in Nortel's operating results and general industry, economic and market conditions and growth rates; the communication by Nortel's auditors of the existence of material weaknesses in internal controls; Nortel's ability to recruit and retain qualified employees; fluctuations in Nortel's cash flow, level of outstanding debt and current debt ratings; the use of cash collateral to support Nortel's normal course business activities; the dependence on Nortel's subsidiaries for funding; the impact of Nortel's defined benefit plans and deferred tax assets on results of operations and Nortel's cash flows; Nortel's dependence on new product development and its ability to predict market demand for particular products; Nortel's 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's 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's purchase contracts; the impact of Nortel's 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's 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 with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel 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, the Nortel logo and the Globemark are trademarks of Nortel Networks. Internet2 is a registered trademark of the University Corporation for Advanced Internet Development.

Use of the terms "partner" and "partnership" does not imply a legal partnership relationship between Nortel and any other party.