Touch America Plans to Lead Evolution of Next Generation Optical Networks With Deployment of Nortel Networks OPTera Connect HDX Optical Switch

Business Wire, March 19, 2002

Business Editors & High-Tech Writers

Optical Fiber Communications 2002

ANAHEIM, Calif.--(BUSINESS WIRE)--March 19, 2002

Touch America (NYSE:TAA), a national fiber-optic network and broadband products and services company, expects to be first to implement OPTera Connect HDX Optical Switches from Nortel Networks (NYSE:NT)(TSE:NT.) under an agreement announced today at Optical Fiber Communication (OFC) 2002.

Touch America plans to deploy Nortel Networks OPTera Connect HDX at several sites within its existing network to enable 'on demand' service, and to take advantage of immediate and significant operational savings - not only by reducing manual tasks associated with cross-connections, but also by consolidating racks of switching gear into smaller cabinets that require less space and energy. OPTera Connect HDX will allow Touch America to optimize its existing network, and to increase network bandwidth in cost-effective increments.

"By deploying OPTera Connect HDX, Touch America is once again leading the charge in bringing the most advanced, tested technology to its broadband network, as they did in 1996 when they were the first to implement our 10 gigabits per second solution," said Brian McFadden, president, Optical Long Haul Networks, Nortel Networks.

"Nortel Networks is again transforming digital networking by replacing a manual, time consuming, hard-wire environment with dynamic, agile, optical solutions," McFadden said. "This means our customers can significantly enhance their time-to-revenue, reduce operating costs and connection errors, and quickly deliver the most value-added services to their customers."

"We have been designing, building and operating fiber optic networks for more than 15 years, and during that time we have come to know Nortel Networks and its abilities very well," said Mike Meldahl, president and chief operating officer, Touch America. "Thus, we have confidence in the OPTera product and in Nortel Networks technical and support capabilities."

"Additionally, and most importantly, the OPTera product fits with our strategic vision of simplifying our business to satisfy our customers' expectations for quality of service and time-to-market at a competitive cost," Meldahl said. "Our goal is to provision information transport services quickly for customers, which means our network must be flexible, intelligent, integrated and scaleable. OPTera Connect HDX will enable us to turn up new services in a matter of hours versus weeks, and to offer the most competitive, responsive services available while maximizing revenue potential."

Through consolidation and replacement of certain digital circuit switching functions with a next generation solution that can support linear, ring and mesh network applications, an initial investment in OPTera Connect HDX will optimize scalability, throughput and revenue generation.

"OPTera Connect HDX has the capability to save 45 percent in capital expenses and 55 percent in operating expenses, including space and power consumption savings of up to 80 percent over equivalent solutions today," McFadden said.

OPTera Connect HDX is part of Nortel Networks next generation Optical Long Haul portfolio, which is redefining the economics of networking through innovative technologies that drive the industry's lowest cost-per-connected-bit of information, whether data, voice or multimedia. Nortel Networks is dramatically improving network utilization and decreasing network complexity through evolving optical long haul platforms and network intelligence that integrate seamlessly with existing networks.

Touch America, Inc. is a national broadband fiber optic network and product and services telecommunications company, providing customized voice, data and video transport, as well as Internet services, to wholesale and business customers. Branded TOUCHAMERICA , the company's state-of-the-art 23,000-mile fiber optic network will span 26,000 miles, cross 40 states, and reach more than 140 major cities in 2002, making it one of the largest and highest capacity long haul networks in the United States. The company provides the latest in IP, ATM and Frame Relay protocols and private line services for transporting information with speed, privacy and convenience. Touch America has approximately 800 employees in 21 offices in 17 states and the District of Columbia. Touch America, Inc. is the telecommunications operating subsidiary of Touch America Holdings, Inc. (NYSE:TAA). More information can be found at www.tamerica.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 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.