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(NT.TO) Nortel Networks Extends Benefits of CWDM to Services Providers, Enterprises; France's Completel Deploying Technology to Offer Optical Broadband Services

Posted on: Monday, 9 June 2003, 06:00 CDT

LAS VEGAS--(BUSINESS WIRE)--June 9, 2003--Nortel Networks (NYSE:NT) (TSX:NT) has enhanced its metro optical portfolio to extend the benefits of coarse wavelength division multiplexing (CWDM) to an increased number of applications for both service providers and enterprises. Building on the CWDM solution Nortel Networks introduced in March 2002, this enhancement will allow a broader range of enterprises to leverage the benefits of CWDM in their own private networks or through service providers.

The CWDM enhancement -- to Nortel Networks OPTera Metro 5100 platform -- is designed for medium to large enterprise customers looking for cost-effective, reliable networks to deploy optical storage connectivity, Ethernet and other optical broadband services. By bringing wavelengths from multiple technologies onto a common optical layer, enterprises will be able to optimize fiber utilization to provide a cost-effective solution for point-to-point and multi-site connectivity.

Service providers will also be able to leverage the new technology to cost-effectively offer a full suite of managed services, including Managed Private Networks and Managed Wavelength Services. Completel, a leading national infrastructure-based carrier in France, is already deploying this CWDM solution from Nortel Networks to offer cost-effective fiber relief applications and optical broadband connectivity to support enterprise customer requirements for robust networking.

"Nortel Networks has an unparalleled reputation for being the leader in DWDM optical networking, and we are certain that success will continue into the CWDM market," said Jean-Marie Lemonze, chief technology officer, Completel. "The optical solutions we have deployed from Nortel Networks will enable us to offer a cost-effective, simplified solution to deploy optical broadband services."

"Nortel Networks is taking new steps in CWDM that allow their metro WDM products to retain carrier grade management and reliability while offering new, more cost effective options for enterprises to connect with service providers," said Michael Howard, principal analyst and co-founder, Infonetics Research.

"Service providers are driven by 'success based' applications for metro WDM, principally storage networking and Gigabit Ethernet connections," Howard said. "Nortel Networks new CWDM capability will enable service providers to offer more cost effective wavelength services that address the lower lambda requirements of a wider range of enterprise customers as an integral part of their existing metro DWDM systems."

Completel already uses the scalable, hybrid C/DWDM solution introduced by Nortel Networks in 2002. This solution provides an evolution path from CWDM to DWDM and 10 gigabits-per-second networks. Deployment of the new CWDM solution will position Completel to provide Gigabit Ethernet services, and to provide a migration path to higher capacity networks for its carrier customers.

"Our service provider and enterprise customers are looking for cost-effective means to deliver next generation optical services and drive new revenues, and our expanded CWDM offering is intended to help facilitate their growth," said Brian McFadden, president, Optical Networks, Nortel Networks. "By implementing both CWDM offerings in their network, Completel will be able to deploy the appropriate solution to match capacity, service scaling and broadband application requirements while retaining carrier-grade attributes for mission-critical services."

Nortel Networks has introduced eight new CWDM blades to take advantage of the latest CWDM components and technology. The new blades will use the same wavelength grid as Nortel Networks Passport 8600 data products, enabling cross-platform CWDM interoperability. Nortel Networks has also introduced a stand-alone CWDM filter that enables more cost-effective aggregation of customer traffic in multi-tenant buildings, as well as more cost-effective central office aggregation of remote services.

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

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.

Nortel Networks, the Nortel Networks logo, the Globemark, OPTera and Passport are trademarks of Nortel Networks.

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