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(NT.TO) Orange NL Deploying Nortel Networks Optical Technology

Posted on: Tuesday, 17 June 2003, 06:00 CDT

AMSTERDAM--(BUSINESS WIRE)--June 17, 2003--Orange NL, the Orange SA subsidiary in The Netherlands, is deploying a national optical network in The Netherlands -- along with high-speed connections to its existing network in Belgium -- using optical solutions from Nortel Networks (NYSE:NT)(TSX:NT). This new network will serve as the high-speed backbone for Orange NL's GSM/GPRS wireless network, which already includes Nortel Networks radio base stations and core network infrastructure equipment.

"Our initial aim was to drive reduced operational costs by replacing a large portion of our current leased line network with a new, purpose-built optical network," said Bertrand Grezes-Besset, chief technology officer, Orange NL. "Through working with Nortel Networks, we are now confident that we will achieve that aim, and will be able to benefit from the further increased quality of our network, which will benefit our customers most. In addition, our transmission network will be prepared for delivery of future services such as UMTS. In the end it may give us new revenue fields as well."

"Nortel Networks relationship with Orange NL illustrates the benefits of our cross-portfolio solutions," said Steve Pusey, president, EMEA (Europe, Middle East, Africa), Nortel Networks. "Orange NL will be able to target the major cost points of its national wireless network with our optical networking solutions."

Using Nortel Networks Optical Networks portfolio, Orange NL will be positioned to drive lower operating costs through broadband service enablement. This will help Orange NL to drive greater return on investment by offering new services to wireless customers, as well as to non-wireless customers through other France Telecom Group companies like Wanadoo, Equant and FTLD.

The Orange NL optical backbone network solution will make use of the full breadth of Nortel Networks Optical Networks portfolio. The metro networks will use Nortel Networks OPTera Metro 4000 and OPTera Metro 5000 Multiservice Platforms to provide ESCON, Fibre Channel (FC) and Gigabit Ethernet (GbE) interfaces over SDH and WDM. These broadband services will be carried through the core -- using Nortel Networks OPTera Connect DX Optical Switch and Nortel Networks OPTera Long Haul 1600 Optical Line System -- to a number of major cities in the Netherlands and Belgium. The entire multiservice broadband network will take advantage of Nortel Networks Preside end-to-end optical network management solution.

Nortel Networks is providing optical network equipment and services to Orange NL under an agreement signed in October 2002. Under this agreement, Nortel Networks is managing the network deployment for Orange NL, including standard implementation services, installation of third-party equipment, overall project coordination, fibre acceptance, and migration of existing leased lines.

Orange NL, employing over 1,300 people, operates a DCS 1800 network for mobile communications. Orange is a preferred supplier to the Dutch government. In July 2000, the company obtained a UMTS license. Orange NL is a 100 per cent subsidiary of Orange SA. Orange invests substantially to further improve network quality and customer service quality. Orange is currently active in 19 countries and aims to have a presence in markets covering 1.5 billion people by 2005. Orange has 44.9 million customers worldwide.

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 Preside are trademarks of Nortel Networks.

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