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University of Pennsylvania Health System Upgrades Network with Optical Ethernet Solution from Nortel Networks

Posted on: Monday, 23 February 2004, 06:00 CST

Gains Increased Bandwidth to Support Services

Designed to Advance Patient Care

¶ The University of Pennsylvania Health System (UPHS), a leader in advanced patient care, has deployed an Optical Ethernet solution from Nortel Networks (NYSE:NT)(TSX:NT) to connect multiple hospitals and clinics in Philadelphia and the surrounding area. ¶ The new network provides Gigabit Ethernet capability, which will help position UPHS to drive reduced costs and to enhance patient care with innovative services like real-time diagnosis. ¶ Nortel Networks Optical Ethernet solution, including Nortel Networks OPTera Metro 5000 Multiservice Platforms and Nortel Networks Passport 8600 Routing Switches, will replace UPHS's legacy network. Gigabit Ethernet capability will allow UPHS to realize up to a 20 times increase in the available bandwidth between its hospital and clinic sites, allowing for instantaneous sharing of patient records among appropriate users. It will also support bandwidth intensive diagnostic tools such as Picture Archive and Communication Systems (PACS). ¶"The University of Pennsylvania Health System - which includes the nation's first hospital and first medical school - has a long history of providing high-quality care to patients," said Stephen Smith, chief technology officer, University of Pennsylvania Health System. "The technology from Nortel Networks provides the ability to immediately share patient information between campuses, enabling us to quickly provide diagnostic information across the health system."¶ The ability to leverage the expertise of the UPHS healthcare staff within minutes regardless of location is expected to increase levels of patient care and make better use of medical resources. ¶ UPHS can leverage optical solutions from Nortel Networks to support other data applications as well as voice traffic. For example, OPTera Metro 5000 can support storage connectivity beyond a single campus. This will assist UPHS in complying with growing regulations surrounding reliable recovery of patient records, including the Health Insurance Portability and Accountability Act (HIPAA) security regulations. ¶"The healthcare industry has a serious task of deploying technologies that will support the fast and accurate delivery of mission-critical data," said Brian McFadden, president, Optical Networks, Nortel Networks. "The Optical Ethernet solution being deployed by UPHS will provide the bandwidth and reliability required for UPHS to lead the innovation and advancement of the medical community, while allowing them to use that same technology to support additional services and comply with upcoming industry regulations."¶ Nortel Networks provides a complete set of Ethernet services for service providers and enterprise networks via Ethernet over fiber, Ethernet over SONET/SDH and Ethernet over WDM. Nortel Networks was the worldwide leader in the Ethernet DWDM and SONET MSPP segments of the Optical Ethernet market for 2003, according to IDC. ¶ 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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