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AboveNet Launches Data Center Connectivity Service Using Nortel Optical Solution


New dcXchange Service Being Introduced in New York City, Washington DC, San Francisco

MARCH 22, 2006, NEW YORK CITY - AboveNet, Inc., a U.S. provider of fiber connectivity solutions for business, is using an all-Nortel* [NYSE/TSX: NT] optical solution to enhance its mission critical communication services such as business continuity and disaster recovery. The solution supports AboveNetís new high-performance data center to data center connectivity service for its business customers.

AboveNetís dcXchange service is now available in the New York City / New Jersey metro area, with service launches for the Washington DC metro and San Francisco bay areas planned over the next two months.

ďAboveNetís dcXchange service provides enterprises and carriers with a cost-effective and highly resilient solution for connecting remote data center facilities across a metro area,Ē said Joc Jacquay, senior vice president, Sales and Marketing, AboveNet. ďNortelís industry-leading metro optical solution provides AboveNet and our customers with the confidence that our dcXchange service is based on a proven and reliable network.Ē

ďNortel has the most widely-deployed Metro DWDM solution in the world,Ē said Philippe Morin, general manager, Optical Networks, Nortel. ďAs the demand for data center connectivity continues to grow to help meet regulatory compliance, DWDM solutions like AboveNetís dcXchange service that enable enterprise customers to seamlessly converge facilities across the metro network will be increasingly important.Ē

The service uses the dense wavelength division multiplexing (DWDM) capabilities of the Nortel Optical Metro 5200 platform to allow enterprise customers to connect two or more data center facilities across a metro area, providing for their business continuity and disaster recovery (BCDR) needs as well as remote storage and other metro transport applications. The service is also available to carriers as a wholesale bandwidth service, allowing the carrier to improve network performance and reliability for its customers.

AboveNetís NYC/NJ service is based on a metro network that connects seven major data centers across the metro area. AboveNet takes advantage of the flexibility of the Optical Metro 5200 platform to offer connectivity services using a variety of transport protocols, including Gigabit Ethernet, 10 Gigabit Ethernet, SONET, Fibre Channel, and managed wavelengths up to 10Gbps.

The Nortel Optical Metro 5200 is a DWDM multiservice platform that delivers 32 wavelengths of fully protected bandwidth and scalability up to 10Gbps for each wavelength. 25,000 Optical Metro 5000 series platforms have been deployed by more than 400 service providers, cable operators and enterprises around the world. Nortel was the market share leader in Metro WDM transport for the seventh year in a row as of year end 2005, according to the DellíOro Group.

About AboveNet, Inc.

AboveNet, Inc. provides fiber connectivity solutions for businesses. Its private optical network delivers key network and IP services in and between 14 top U.S. metro markets and London. AboveNetís network is widely used in demanding markets such as financial services, where the majority of top investment banks and five of the top 10 U.S. banks rely on AboveNet for mission critical services.

About Nortel

Nortel is a recognized leader in delivering communications capabilities that enhance the human experience, ignite and power global commerce, and secure and protect the worldís 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 todayís 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 For the latest Nortel news, visit

Certain statements in this press release may contain words such as ďcouldĒ, ďexpectsĒ, ďmayĒ, ďanticipatesĒ, ďbelievesĒ, ďintendsĒ, ďestimatesĒ, ďplansĒ, ďenvisionsĒ, ďseeksĒ and other similar language and are considered forward-looking statements or information under applicable securities legislation. These statements are based on Nortelís 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. Although Nortel believes expectations reflected in such forward-looking statements are reasonable based upon the assumptions in this press release, they may prove to be inaccurate and consequently Nortelís actual results could differ materially from its expectations set out in this press release. 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 Nortelís restatements and related matters including: Nortelís recently announced restatement and two previous restatements of its financial statements and related events and that the previously filed financial statements of Nortel and NNL and related audit reports should not be relied upon; the negative impact on Nortel and NNL of their announced restatement and delay in filing their financial statements and related periodic reports causing them to breach their public debt indentures and obligations under their credit facilities with the possibility that the holders of their public debt or NNLís lenders would seek to accelerate the maturity of that debt; and causing a breach of NNLís support facility with EDC with the possibility that EDC would refuse to issue additional support under the facility, terminate its commitments under the facility or require NNL to cash collateralize all existing support; 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 Nortelís proposed class action settlement; any substantial cash payment and/or significant dilution of Nortelís 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 Nortelís material weaknesses in internal control over financial reporting resulting in an inability to report Nortelís results of operations and financial condition accurately and in a timely manner; the time required to implement Nortelís remedial measures; Nortelís inability to access, in its current form, its shelf registration filed with the United States Securities and Exchange Commission (SEC), and Nortelís below investment grade credit rating and any further adverse effect on its credit rating due to Nortelís restatement of its financial statements; any adverse affect on Nortelís business and market price of its publicly traded securities arising from continuing negative publicity related to Nortelís restatements; Nortelís 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; any default in Nortelís filing obligations extending beyond May 9, 2006, causing any Canadian securities regulatory authority to impose an order to cease all trading in Nortelís securities within the applicable jurisdiction or to impose such an order sooner if Nortel fails to comply with the alternate information guidelines of such regulatory authorities; (ii) risks and uncertainties relating to Nortelís business including: yearly and quarterly fluctuations of Nortelís 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 Nortelís 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 Nortelís operating results and any related volatility in its 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 Nortelís 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 Nortelís current or planned products; any negative impact to Nortel of its failure to achieve its business transformation objectives; restrictions on how Nortel and its president and chief executive officer conduct its business arising from a settlement with Motorola Inc.; additional valuation allowances for all or a portion of its deferred tax assets; Nortelís 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; Nortelís failure to successfully operate or integrate its strategic acquisitions, or failure to consummate or succeed with its strategic alliances; any negative affect of Nortelís 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 Nortelís liquidity, financing arrangements and capital including: the impact of Nortelís recently announced restatement and two previous restatements of its financial statements; any acceleration under their public debt indentures and credit facilities, which may result in Nortel and NNL being unable to meet their respective payment obligations; 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 Nortelís 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 Nortelís subsidiaries to provide it with sufficient funding; any negative affect 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 Nortelís ability to make future acquisitions, raise capital, issue debt and retain employees arising from stock price volatility and further declines in Nortelís market price of its publicly traded securities, or any future share consolidation resulting in a lower total market capitalization or adverse affect on the liquidity of Nortelís common shares. For additional information with respect to certain of these and other factors, see Nortelís 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.

*Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.


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