Nortel Networks to Provide Server Connectivity Products to IBM - Company Business and Marketing

Cambridge Telcom Report, August 23, 1999

Nortel Networks (NYSE/TSE: NT), the global leader in high-capacity optical networking, has announced it will provide selected network connectivity hardware to IBM Corporation, the world leader in the server market. The agreement between the companies is aimed at leveraging the experience and strength of both companies in network attached server, data interconnection and server-to-server applications.

Under this agreement, Nortel Networks and IBM will work together to provide server connectivity solutions to meet IBM's enterprise customer requirements. Nortel Networks will provide IBM with selected products which IBM will market to its enterprise customers offering enhanced features and performance for mission-critical data center applications using leading-edge technology.

"Customer requirements for network attached servers in a global e-commerce environment will drive the need for new connectivity options in the future," said George Walsh, director, Hardware Product Line, IBM S/390 Division. "This represents a very promising relationship between our two companies."

"We are pleased to be working closely with IBM and are confident that the knowledge, experience and core competencies of both companies will result in new networking solutions that deliver industry-leading scalability, flexibility, availability and security," said Don Smith, vice-president & general manager, OPTera Solutions, Nortel Networks.

Nortel Networks delivers value to customers around the world through Unified Networks solutions, spanning mission-critical telephony and IP-optimized networks. Customers include public and private enterprises and institutions; Internet service providers; local, long-distance, cellular and PCS communications companies, cable television carriers, and utilities.

Nortel Networks' common shares are listed on the New York, Toronto, Montreal and London stock exchanges. Nortel Networks had 1998 revenues of US$17.6 billion and has approximately 76,000 employees worldwide.