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(NT.TO) KPN Introduces Ethernet VPN Service Using Optical Ethernet from Nortel Networks

Posted on: Monday, 7 July 2003, 06:00 CDT

AMSTERDAM, The Netherlands--(BUSINESS WIRE)--July 7, 2003--KPN has introduced a new virtual private networking (VPN) service using the latest Optical Ethernet technology from Nortel Networks (NYSE:NT)(TSX:NT).

Called "Ethernet VPN," this service allows enterprises to integrate local area networks (LANs) at various locations using high-speed broadband connections from 100 Mbps (megabits per second) to 1 Gbps (gigabits per second). KPN made Ethernet VPN available for commercial service on July 1, 2003.

The Ethernet VPN service from KPN is intended to help improve network performance and drive reduced costs for enterprise customers. KPN expects this service to provide enterprises with opportunities to grow their business, as well as to develop new ways of doing business.

"We have evolved our former MetroConnect service with the ability to provide transparent Ethernet connections, a clear improvement for enterprises looking to simplify their networks," said Han Wijns managing director, Business Unit Transmission Services, KPN.

"By continuing to work with Nortel Networks and integrating their advanced Optical Ethernet portfolio, we can provide this service immediately for our regional customers, with the potential for national coverage via interconnection with other KPN service networks," Wijns said.

The Ethernet VPN service from KPN provides additional bandwidth (at a lower cost per Mbps) than traditional asynchronous transfer mode (ATM), frame relay, or leased line wide area network (WAN) services. Enterprises can take advantage of this bandwidth to simplify their networks, consolidate storage and application servers, reduce the number of application licenses required, and centralise network management.

Using the variety of Ethernet 'tunnelling' techniques available with Nortel Networks Optical Ethernet solutions, enterprises can build their own distributed 'virtual' LANs.

"Nortel Networks Optical Ethernet portfolio is allowing service providers like KPN to combine the advantages of the most widely-used LAN protocol with accelerated deployment of revenue-generating, Ethernet-based services," said Maurice Meesters, director, Benelux, Nortel Networks. "Today enterprises using Ethernet VPN from KPN can drive reduced IT costs, improved network security, and higher employee productivity as well as experience high performance networking and robust Internet access."

Nortel Networks Optical Ethernet solution for KPN includes Nortel Networks Passport 8600 Intelligent Routing Switch and Nortel Networks OPTera Metro 1400 Ethernet Service Module.

Passport 8600 delivers high-density, high-performance Layer 2-7 switching, routing and traffic classification. This reliable, secure and intelligent solution is designed to provide increased bandwidth and additional revenue-generating potential for today's application-driven networks.

OPTera Metro 1400 provides two customer facing Gigabit Ethernet access ports in addition to 12 100 BASE-TX access ports and Gigabit Ethernet uplinks. Consistent with the entire OPTera Metro 1000 series, the OPTera Metro 1400 can be used to cost-effectively extend optical connectivity to the enterprise directly from an OPTera Metro SONET/SDH or DWDM backbone. With KPN it is being used to provide Ethernet VPN services in conjunction with Nortel Networks Passport 8600.

Nortel Networks is at the forefront of Optical Ethernet and VPN technologies, and standards like 10 Gigabit Ethernet, Resilient Packet Rings, and MPLS Layer 2 VPNs.

Information about KPN's Ethernet VPN service can be found on the Web at www.kpn.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 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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