Midcontinent Communications Enables Video, Data Services Based on Next Generation SONET Solutions from Nortel Networks

Business Wire, Sept 28, 2004

SIOUX FALLS, S.D. -- Midcontinent Communications, a carrier's carrier and regional service provider in North and South Dakota, has built a regional optical network capable of transporting data and video traffic over a multiservice optical network based on next generation SONET solutions from Nortel Networks (NYSE:NT)(TSX:NT).

Using next generation SONET with resilient packet ring (RPR) technology, Midcontinent Communications will deliver value-rich multimedia services like cable television, voice services and high-speed Internet capabilities throughout the bi-state region.

"The decision to expand our business to include a more competitive and diversified service offering required us to look at the network architecture," said Jonathan Pederson, director, Network Services, Midcontinent Communications. "We needed a solution that could support the high-bandwidth applications our customers are demanding. With the optical solutions in place from Nortel Networks, we have the reliability, flexibility and scalability required to improve our service offering."

By deploying Nortel Networks Optical Metro 3500, Midcontinent Communications has enabled efficient and cost-effective delivery of video and data services. The RPR technology will increase network efficiencies and simplify network operations for the carrier. In addition, Midcontinent Communications will deploy Nortel Networks Optical Metro 5200 DWDM (dense wavelength division multiplexing) platform, enabling a truly regional transport network for seamless capacity and growth of infrastructure and services.

"The demand for triple play services is increasing in regional markets, and service providers must have the network architecture in place to support these services," said Philippe Morin, general manager, Optical Networks, Nortel Networks. "These next generation optical solutions are enabling Midcontinent Communications to transform its network to ensure that its customers have access to the most advanced services available."

Nortel Networks Next-generation SONET platforms, including the Optical Metro 3500, have a successful track record of transforming service providers' networks to offer profitable value rich services.

Nortel Networks Optical Metro 5200 platform provides DWDM and CWDM (coarse wavelength division multiplexing) optical solutions, with over 14,000 network elements deployed and over 32,000 wavelengths lit.

Deployed in more than 1,000 customer networks in 65 countries, Nortel Networks end-to-end optical network portfolio includes next generation SONET/SDH, optical switching products, photonics (WDM), and Optical Ethernet products. Nortel Networks has deployed more than 280,000 network elements globally.

As a global innovation leader, Nortel Networks enriches consumer and business communications worldwide by offering converged multimedia networks that eliminate the boundaries among voice, data and video. These networks use innovative packet, wireless, voice and optical technologies and are underpinned by high standards of security and reliability. For both carriers and enterprises, these networks help to drive increased profitability and productivity by reducing costs and enabling new business and consumer services opportunities. Nortel Networks does business in more than 150 countries. For more information, visit Nortel Networks on the Web at www.nortelnetworks.com or www.nortelnetworks.com/media_center.> 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 outcome of Nortel Networks independent review and planned restatement or revisions of its previously announced or filed financial results; the impact of the management changes announced on April 28, 2004 and August 19, 2004; the impact of the inability to meet Nortel Networks filing obligations on support facilities and public debt obligations; the sufficiency of Nortel Networks 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 Nortel Networks customers; fluctuations in Nortel Networks operating results and general industry, economic and market conditions and growth rates; the communication by Nortel Networks auditors of the existence of material weaknesses in internal controls; Nortel Networks ability to recruit and retain qualified employees; fluctuations in Nortel Networks cash flow, level of outstanding debt and current debt ratings; the use of cash collateral to support Nortel Networks normal course business activities; the dependence on Nortel Networks subsidiaries for funding; the impact of Nortel Networks defined benefit plans and deferred tax assets on results of operations and Nortel Networks cash flows; Nortel Networks dependence on new product development and its ability to predict market demand for particular products; Nortel Networks 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 Nortel Networks 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 Nortel Networks purchase contracts; the impact of Nortel Networks 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 Nortel Networks strategic alliances; and the adverse resolution of litigation, investigations, intellectual property disputes and similar matters.