(NT.TO) Educational Institutions Deploying Optical Enterprise Solutions from Nortel Networks

LAS VEGAS–(BUSINESS WIRE)–June 9, 2003–

University of Texas at Austin, School District of Philadelphia

Planning to Offer Grid Computing, Optical Ethernet,

Fiber Channel Storage Connectivity, Other Services

The University of Texas at Austin (UT Austin) and the School District of Philadelphia are deploying optical enterprise solutions from Nortel Networks (NYSE:NT)(TSX:NT) that are designed to provide high-speed, high-bandwidth connections for data communications, computing and collaboration across geographically-dispersed networks.

These deployments, along with enhancements to Nortel Networks Optical Enterprise portfolio also announced today are evidence of Nortel Networks continued focus on enterprise applications like Optical Storage, Optical Ethernet and Optical Network Convergence.

As part of a high-performance computing initiative led by Dell, a Nortel Networks “Enterprise Channel Partner,” UT Austin is rolling out Optical Enterprise solutions from Nortel Networks to create the UT Grid for the Texas Advanced Computing Center (TACC).

TACC, a research facility at UT Austin, provides advanced computing resources and services to enable computationally-intensive research, and conducts research and development activities to develop new computing techniques and technologies. The Optical Enterprise solution from Nortel Networks will be a component of TACC’s advanced computing and network services as required to meet the UT Austin research community’s increasing demand for processing power, storage capacity, and bandwidth.

“As the leader in supplying optical solutions to the enterprise, Nortel Networks is delivering for us a simplified network for voice and data applications,” said Mary Thomas, manager, Grid Technologies, TACC, University of Texas at Austin. “By using one common platform and management scheme, the technology allows us to implement the UT Grid computing architecture to virtualize all computing resources onto one infrastructure.”

The Optical Enterprise solution for UT Austin will include Nortel Networks OPTera Metro 5200 Multiservice Platform, which will link the main campus with the UT Austin research center for voice and data applications. By linking multiple computing systems and networks together to act as one, TACC and UT Austin will be one of the first higher education institutions to install and deploy a campus-wide grid.

The School District of Philadelphia is also deploying an Optical Enterprise solution from Nortel Networks. The District is using Optical Ethernet technology to link more than 300 sites into a high-capacity network for improved application performance and connectivity. By using this network to extend the benefits of Ethernet over Resilient Packet Ring (RPR), the District will be able to consolidate its network cost-effectively while deploying Internet2, distance learning, multimedia applications, and enhanced educational applications.

The Optical Ethernet solution for the School District of Philadelphia will include Nortel Networks Passport 8600 and Nortel Networks Contivity. It will also include what is expected to be the first implementation of 10 gigabits-per-second (Gbps) interfaces on Nortel Networks OPTera Metro 3500 Multiservice Platform.

“We’re excited about the opportunities a network of this magnitude will offer us,” said Bob Westall, director, Telecommunications and Networking for the School District of Philadelphia. “The Optical Ethernet technology from Nortel Networks will further our student and faculty educational and professional growth by allowing for high-speed digital transmission to local communities of interest, such as educational, cultural, government and healthcare institutions.”

Part of Nortel Networks ‘One network. A world of choice.’ global enterprise vision, the simplicity of these optical solutions enables enterprises to converge multiple applications with multiple protocols (Fibre Channel, Ethernet and SONET) over a simple, resilient and scalable optical network. These differing protocols are transported at light speed in their native formats, eliminating inefficiencies introduced during protocol conversion.

OPTera Metro 3500 Multiservice Platform is a next generation SONET platform that supports TDM, Ethernet, and storage connectivity, and is fully scalable from OC-3 to OC-192 in a single shelf. By enabling 10 Gbps transmission on OPTera Metro 3500, Nortel Networks is accelerating wide deployment of Optical Enterprise solutions on a cost-effective, scalable service delivery platform.

Nortel Networks OPTera Metro 5000 Multiservice Platform provides DWDM and CWDM optical solutions field-proven with more than 10,000 network elements deployed and 27,000 wavelengths lit. Nortel Networks was the market share leader in total optical transport and metro DWDM for the past four years (1999-2002), according to the Dell’Oro Group.

‘One network. A world of choice.’ is about raising the bar with a new level of customer and employee engagement where and how the network is accessed while offering enterprises the power of choice in deployment options through industry-leading solutions in IP (Internet Protocol) Telephony, applications, data and optical networking.

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 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; 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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