Nortel Unveils New Technology for Tomorrow's Telecoms Networks

Toronto (ots/PRNewswire) -

- Provider Backbone Transport Transforms Traditional Role of
Ethernet

TORONTO, June 6 /PRNewswire/ --

Nortel(x) (NYSE:NT; TSX: NT) has developed a new technology to be
the foundation of service provider metropolitan networks. Now
available in its Metro Ethernet Networks portfolio, the new
technology - called Provider Backbone Transport (PBT) - is designed
to allow service providers to deliver the communication and
entertainment services of the future to consumers and companies
across cities and countries.

Provider Backbone Transport transforms Ethernet technology,
traditionally restricted to small-scale, local networks, into a more
reliable, scaleable and deterministic technology making it suitable
as the basis for fixed and mobile carrier networks to deliver live
video and broadcast, multimedia, broadband data and voice services.

"Ethernet is a pervasive information transport technology due to
its simplicity and cost-effectiveness," said Philippe Morin,
president, Metro Ethernet Networks Nortel. "Nortel is now improving
Ethernet and putting its simplicity and value at the heart of
carrier networks."

"As a technology developed for smaller, local networks, Ethernet
has lacked critical requirements that would enable service providers
to take advantage of its benefits across city and national networks.
By determining the specific performance of a network under any
conditions and making it more reliable, Nortel is helping service
providers leverage the cost- efficiencies of Ethernet to support
crucial services like video, 3G mobility services, and business
connectivity services."

Nortel is working with the support of some of the world's largest
service providers and standards bodies to facilitate broad adoption
of PBT as a metro technology. A first-to-market version of PBT is
already available in the Nortel Metro Ethernet Routing Switch (MERS)
8600, with development also underway to integrate the technology
into the Nortel Optical Multiservice Edge (OME) 6500 and other
Ethernet-ready platforms.

"PBT has the potential to be a disruptive technology for service
provider metro networks," said Stan Hubbard, senior analyst, Heavy
Reading. "Its promise of enabling more manageable and scalable
Ethernet that is cost - effective for metro network deployments makes
it an attractive complement for service providers with existing MPLS
core networks."

Traditional connectionless, best-effort Ethernet poses challenges
for service providers needing to guarantee service delivery and
quality of service (QoS) for real-time applications. PBT is a simple
point-to-point tunneling technology that adds determinism to
Ethernet, enabling service providers to specify the path that an
Ethernet service should take across the network. PBT allows for QoS
guarantees by reserving bandwidth for real- time services, and
provides for 50 millisecond service recovery times should a
connection fail - matching the benchmarks set by today's existing
SONET and SDH optical transport standards.

"Nortel has been working with several major service providers that
are very interested in the potential benefits of deploying PBT as a
metro networking technology," said Morin. "PBT is designed to
provide reliability and determinism equal to SONET and SDH while
retaining the cost and simplicity of Ethernet - a combination ideal
for a carrier network environment."

PBT also helps resolve issues with Ethernet's scalability, helping
conserve network resources that would otherwise be taken up by the
constant communications between large numbers of Ethernet devices in
the network. In addition, when PBT is paired with another pending
Ethernet standard - Provider Backbone Bridging (IEEE 802.1ah) - it
is now possible for service providers to scale Ethernet-based
services to millions of users per metro area.

TORONTO, June 6 /PRNewswire/ --

About Nortel

TORONTO, June 6 /PRNewswire/ --

Nortel is a recognized leader in delivering communications
capabilities that enhance the human experience, ignite and power
global commerce, and secure and protect the world's most critical
information. Our next- generation technologies, for both service
providers and enterprises, span access and core networks, support
multimedia and business-critical applications, and help eliminate
today's barriers to efficiency, speed and performance by simplifying
networks and connecting people with information. Nortel does
business in more than 150 countries. For more information, visit
Nortel on the Web at www.nortel.com. For the latest Nortel news,
visit www.nortel.com/news.

TORONTO, June 6 /PRNewswire/ --

Certain statements in this press release may contain words such as
" could", "expects", "may", "anticipates", "believes", "intends",
"estimates ", "plans", "envisions", "seeks" and other similar
language and are considered forward-looking statements or
information under applicable securities legislation. These
statements are based on Nortel's current expectations, estimates,
forecasts and projections about the operating environment, economies
and markets in which Nortel operates. These statements are subject
to important assumptions, risks and uncertainties, which are
difficult to predict and the actual outcome may be materially
different. Further, actual results or events could differ materially
from those contemplated in forward- looking statements as a result
of the following (i) risks and uncertainties relating to Nortel's
restatements and related matters including: Nortel's most recent
restatement and two previous restatements of its financial
statements and related events; the negative impact on Nortel and NNL
of their most recent restatement and delay in filing their financial
statements and related periodic reports; legal judgments, fines,
penalties or settlements, or any substantial regulatory fines or
other penalties or sanctions, related to the ongoing regulatory and
criminal investigations of Nortel in the U.S. and Canada; any
significant pending civil litigation actions not encompassed by
Nortel's proposed class action settlement; any substantial cash
payment and /or significant dilution of Nortel's existing equity
positions resulting from the finalization and approval of its
proposed class action settlement, or if such proposed class action
settlement is not finalized, any larger settlements or awards of
damages in respect of such class actions; any unsuccessful
remediation of Nortel's material weaknesses in internal control over
financial reporting resulting in an inability to report Nortel's
results of operations and financial condition accurately and in a
timely manner; the time required to implement Nortel's remedial
measures; Nortel's inability to access, in its current form, its
shelf registration filed with the United States Securities and
Exchange Commission (SEC), and Nortel's below investment grade
credit rating and any further adverse effect on its credit rating
due to Nortel's restatements of its financial statements; any
adverse affect on Nortel's business and market price of its publicly
traded securities arising from continuing negative publicity related
to Nortel's restatements; Nortel's potential inability to attract or
retain the personnel necessary to achieve its business objectives;
any breach by Nortel of the continued listing requirements of the
NYSE or TSX causing the NYSE and/or the TSX to commence suspension
or delisting procedures; (ii) risks and uncertainties relating to
Nortel's business including: yearly and quarterly fluctuations of
Nortel's operating results; reduced demand and pricing pressures for
its products due to global economic conditions, significant
competition, competitive pricing practice, cautious capital spending
by customers, increased industry consolidation, rapidly changing
technologies, evolving industry standards, frequent new product
introductions and short product life cycles, and other trends and
industry characteristics affecting the telecommunications industry;
any material and adverse affects on Nortel's performance if its
expectations regarding market demand for particular products prove
to be wrong or because of certain barriers in its efforts to expand
internationally; any reduction in Nortel's operating results and any
related volatility in the market price of its publicly traded
securities arising from any decline in its gross margin, or
fluctuations in foreign currency exchange rates; any negative
developments associated with Nortel's supply contract and contract
manufacturing agreements including as a result of using a sole
supplier for key optical networking solutions components, and any
defects or errors in Nortel's current or planned products; any
negative impact to Nortel of its failure to achieve its business
transformation objectives; additional valuation allowances for all
or a portion of its deferred tax assets; Nortel's failure to protect
its intellectual property rights, or any adverse judgments or
settlements arising out of disputes regarding intellectual property;
changes in regulation of the Internet and/or other aspects of the
industry; Nortel's failure to successfully operate or integrate its
strategic acquisitions, or failure to consummate or succeed with its
strategic alliances; any negative effect of Nortel's failure to
evolve adequately its financial and managerial control and reporting
systems and processes, manage and grow its business, or create an
effective risk management strategy; and (iii) risks and
uncertainties relating to Nortel's liquidity, financing arrangements
and capital including: the impact of Nortel's most recent
restatement and two previous restatements of its financial
statements; any inability of Nortel to manage cash flow fluctuations
to fund working capital requirements or achieve its business
objectives in a timely manner or obtain additional sources of
funding; high levels of debt, limitations on Nortel capitalizing on
business opportunities because of credit facility covenants, or on
obtaining additional secured debt pursuant to the provisions of
indentures governing certain of Nortel's public debt issues and the
provisions of its credit facilities; any increase of restricted cash
requirements for Nortel if it is unable to secure alternative
support for obligations arising from certain normal course business
activities, or any inability of Nortel's subsidiaries to provide it
with sufficient funding; any negative effect to Nortel of the need
to make larger defined benefit plans contributions in the future or
exposure to customer credit risks or inability of customers to
fulfill payment obligations under customer financing arrangements;
any negative impact on Nortel's ability to make future acquisitions,
raise capital, issue debt and retain employees arising from stock
price volatility and further declines in the market price of
Nortel's publicly traded securities, or any future share
consolidation resulting in a lower total market capitalization or
adverse effect on the liquidity of Nortel's common shares. For
additional information with respect to certain of these and other
factors, see Nortel's Annual Report on Form 10- K/A, Quarterly
Report on Form 10-Q and other securities filings with the SEC. Unless
otherwise required by applicable securities laws, Nortel disclaims
any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.

TORONTO, June 6 /PRNewswire/ --

(x)Nortel, the Nortel logo and the Globemark are trademarks of
Nortel Networks.

ots Originaltext: Nortel Networks
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Contact:
For further information: Bo Gowan, +1-(972)-685-8278,
bogowan@nortel.com; Patricia Vernon, +1-(905)-863-1035,
patricve@nortel.com; Ben Roome, +44-1628-43-3113, benroome@nortel.com