Nortel Networks Unveils Multiservice Switch for Wireless, Voice Over Packet, Data Networks; Passport 20000 in Service Provider Trials Worldwide, Generally Available in Q2 2002

Business Wire, Feb 19, 2002

Business Editors & High-Tech Writers

OTTAWA--(BUSINESS WIRE)--Feb. 19, 2002

Nortel Networks (NYSE:NT)(TSE:NT.) today announced Passport 20000 Multiservice Platform, a new multiservice switch targeted at the core of service provider wireless, voice and data networks.

Designed to help service providers address the challenge of cost-effectively scaling and converging disparate networks, Passport 20000 will support up to 160 Gbps capacity and a range of 10 Gbps interfaces. It will seamlessly support a wide range of services, while scaling to meet increased bandwidth requirements as new applications drive network growth.

"Nortel Networks is focused on its fundamental strength -- the ability to build highly reliable networks for effective delivery of revenue-generating opportunities," said Oscar Rodriguez, president, Intelligent Internet, Nortel Networks.

"Customers are demanding highly scalable core switches that can support multiple services and applications to allow network convergence and, as a result, reduce operational and capital expenditures. We have had tremendous success with the Passport product line, and Passport 20000 is a natural evolution for our customers," Rodriguez said.

"As service providers put mission critical traffic such as voice and wireless over more cost effective packet infrastructure, they are going to look for a proven, reliable platform," said Christin Flynn, director, Carrier Convergence Infrastructure, the Yankee Group. "By offering Passport 20000, Nortel Networks will give service providers the ability to deliver service offerings that generate revenue today, while offering a platform that will evolve and converge multiple networks into a cost effective multiservice network."

Passport 20000 complements other members of the Passport family -- like Passport 15000 and Passport 7000 -- to address service provider network requirements from the edge to the core. Passport 20000 benefits include:

-- multiservice capability - revenue generating services like frame relay, ATM,
IP, IP-VPNs, Layer 2 VPNs, MPLS, wireless, voice, and circuit emulation.

-- network flexibility - DS-0 to OC-192/STM-64 and 10 Gbps interfaces for
packet over SONET, ATM and Gigabit Ethernet.

-- reliability - quick and accurate fault detection, robust networking, and
in-service software upgrades, along with the Passport family's track record of
reliable performance spanning 1,200 customers and 38,000 systems shipped.

-- high-capacity, scalability - cost effective network growth at service
provider's pace.

-- flexible evolution - multiservice network evolution, multiservice over MPLS,
and switched optical networking.

-- seamless evolution - same interface cards, software stream, and network
management as Passport 15000, reducing operational headaches and preserving
existing investments.

Passport 20000 is currently in trials, and is expected to be generally available in the second quarter of 2002. Nortel Networks is the global market share leader in multiservice WAN switching for year 2001 and for the fourth quarter of 2001, according to a recent report from the Dell'Oro Group. Passport switches support some of the largest service provider networks in the world, including Cable & Wireless, China Telecom, China Unicom, Cingular Wireless, Equant, KPN, KPNQwest, Sprint, Sprint PCS, Telefonica, Telia, Telecom Development, and Telecom Italia.

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 Metro and Enterprise Networks, Wireless Networks and Optical Long Haul 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 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 increased provision of customer financing and commitments; stock market volatility; the entrance into an increased number of supply, turnkey, and outsourcing contracts which contain delivery, installation, and performance 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.