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American Fiber Systems Selects Optical Network Equipment from Nortel Networks

Posted on: Wednesday, 11 February 2004, 06:00 CST

Nationwide Metro Optical Solutions Provider to Offer

Carrier-Class Optical Ethernet Services

¶ American Fiber Systems (AFS), a leading nationwide provider of metropolitan optical solutions, has reached an agreement with Nortel Networks* (NYSE/TSX: NT) that will enable AFS to deliver end-to-end Optical Ethernet solutions to customers in several cities throughout the United States. ¶ These solutions will combine AFS' advanced metropolitan full-spectrum fiber communication networks and services with products from Nortel Networks Optical Networks portfolio and Nortel Networks Passport* 8600 Routing Switch. Together these products will provide the simplicity, flexibility and cost-effectiveness of Ethernet with the high reliability, speed and reach of optics, and will include Nortel Networks real-time customer service and support. ¶"AFS has chosen Nortel Networks OPTera* Metro and Passport solutions to cost-effectively scale our existing fiber network infrastructure in order to quickly respond to our customers' service and bandwidth demands at flat rate prices," said Bill Ciminelli, vice president, Network Development and Services, American Fiber Systems. "Our networks will enable bandwidth hungry applications, including IP (Internet Protocol) VPNs (Virtual Private Networks) and LAN (local area network) extension, while giving each enterprise control over their network operation and cost."¶"Using these products, customers can reap the benefits of a secure, simple and scalable solution with the speed and simplicity of Ethernet to create an optimal foundation for delivery of IP services," said Brian McFadden, president, Optical Networks, Nortel Networks. "Nortel Networks is committed to working closely with AFS to offer customers a comprehensive, cost-effective solution that includes consistent high-reliability and eliminates any single point of failure."¶ AFS will offer Ethernet point-to-point, point-to-multipoint and Internet access (EIA) services with bandwidth rates from 10 megabits per second (Mbps) to Gigabit Ethernet. AFS customers will be able to choose specific, custom bandwidth rates. ¶"Our services will respond to the lack of real fiber based access for a significant percentage of non-residential real estate locations in many metropolitan areas," Ciminelli said. "We are particularly pleased to work with Nortel Networks to support our customers in achieving their goals of delivering mission-critical, network-based services and Internet access at unsurpassed speeds, reliability and value for their end-users."¶ American Fiber Systems, a provider of metropolitan fiber optic network infrastructure and wholesale transport services, is dedicated to enabling wireline, wireless carriers and large enterprises in achieving a competitive advantage from optical broadband communications technology. AFS has deployed over 76,000 miles of high-capacity, high-bandwidth metropolitan fiber optic cable since 2000 in several cities, including Cleveland, OH; Kansas City KS/MO; Minneapolis/St. Paul, MN, Nashville, TN and Salt Lake City, UT. They connect to a city's most important points of communications presence, including ILEC central offices and wire centers; CLEC PoPs; Internet Service Provider (ISP) and data center locations; Inter-exchange "carrier hotels;" wireless providers and cable company head ends; and Fortune 1000 companies. AFS has over 400 capacity enabled on-net buildings. The AFS web site may be found at www.americanfibersystems.com.

¶ 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 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; continued reductions in spending by our customers; fluctuations in operating results and general industry, economic and market conditions and growth rates; the communication by our auditors of the existence of material weaknesses in internal control; the ability to recruit and retain qualified employees; fluctuations in cash flow, the level of outstanding debt and our current debt ratings; the ability to meet the financial covenant in our credit facilities; the use of cash collateral to support our normal course business activities; the dependence on our subsidiaries for funding; the impact of our defined benefit plans and our deferred tax assets on our results of operations, cash flows and compliance with our financial covenant; the dependence on new product development and our ability to predict market demand for particular products; the 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 our 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 our purchase contracts; risks associated with a consolidation of our common shares; the impact of 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 our strategic alliances; and the adverse resolution of litigation, 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 and Form 10-K 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, OPTera and Passport are trademarks of Nortel Networks.

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