Australian Stock Exchange Secures Business Continuity with Nortel

High-Speed Nortel Network Connects Mirror Site for Added Security, Redundancy

DECEMBER 08, 2005, SYDNEY, Australia - The Australian Stock Exchange (ASX), Australia’s primary national stock exchange, has completed a business continuity and disaster recovery (BCDR) project linking its offsite operations centre with its Sydney central business district (CBD) headquarters using a high-speed network from Nortel* [NYSE/TSX: NT].

The new network links the ASX’s Business Continuity centre with its CBD centre in real time, providing a secure backup facility if trading is disrupted for any reason. The two sites communicate with each other over a Nortel optical network.

“Each day billions of dollars worth of transactions are processed across the trading network hence continuity and reliability are mandatory to our needs. Our setup is second to none with regards to security and reliability,” said Jeff Olsson, Group Executive - Technology, ASX.

“We aim for 99-plus percent reliability, but our target has always been zero downtime and in our long association with Nortel we’ve had 100 percent uptime on our network. By that measure the relationship has proven to be very successful. ASX is now continuing the development of its network and reinforcing its business continuity structures to make sure the exchange can continue giving customers the uninterrupted service they expect.”

“Business continuity has become a priority for large organisations worldwide as they increasingly have to compete against global challengers and local threats,” said Mark Stevens, president, Australia and New Zealand, Nortel. "Our business is about igniting and powering global commerce for the world’s financial institutions, stock exchanges, businesses and centres of commerce with highly reliable technology.

“Our customers include some of the world’s largest and most important stock exchanges, supporting billions of transactions in New York, Sao Paulo, Buenos Aires, Shanghai, Bombay, Seoul and Australia.”

The ASX began upgrading its core Nortel network with new equipment towards the end of last year. The first part of the upgrade was the deployment of four Nortel Ethernet Routing Switch (ERS) 8600s, two at the core site and two at the Business Continuity centre for the delivery of ASX services via carrier-based VPN providers.

The sites are linked through a Nortel Optical Metro 5200 solution, and split multilink trunking (SMLT) functionality on the ERS 8600 will be used to eliminate single points of failure on the network and allow multiple active connections to the network core. Work on the project was completed in November.

About Nortel

Nortel is a recognised 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. Serving both service provider and enterprise customers, Nortel delivers innovative technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world’s greatest challenges. 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.

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 regulatory and criminal investigations and civil litigation actions related to Nortel’s restatements and the impact any resulting legal judgments, settlements, penalties and expenses could have on Nortel’s results of operations, financial condition and liquidity, and any related potential dilution of Nortel’s common shares; the findings of Nortel’s independent review and implementation of recommended remedial measures; the outcome of the ongoing independent review with respect to revenues for specific identified transactions, which review will have a particular emphasis on the underlying conduct that led to the initial recognition of these revenues; the restatement or revisions of Nortel’s previously announced or filed financial results and resulting negative publicity; the existence of material weaknesses in Nortel’s internal control over financial reporting and the conclusion of Nortel’s management and independent auditor that Nortel’s internal control over financial reporting is ineffective, which could continue to impact Nortel’s ability to report its results of operations and financial condition accurately and in a timely manner; the impact of Nortel’s and NNL’s failure to timely file their financial statements and related periodic reports, including Nortel’s inability to access its shelf registration statement filed with the United States Securities and Exchange Commission (SEC); the impact of management changes, including the termination for cause of Nortel’s former CEO, CFO and Controller in April 2004; the sufficiency of Nortel’s restructuring activities, including the work plan announced on August 19, 2004 as updated on September 30, 2004 and December 14, 2004, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; cautious or reduced spending by Nortel’s customers; increased consolidation among Nortel’s customers and the loss of customers in certain markets; fluctuations in Nortel’s operating results and general industry, economic and market conditions and growth rates; fluctuations in Nortel’s cash flow, level of outstanding debt and current debt ratings; Nortel’s monitoring of the capital markets for opportunities to improve its capital structure and financial flexibility; Nortel’s ability to recruit and retain qualified employees; the use of cash collateral to support Nortel’s normal course business activities; the dependence on Nortel’s subsidiaries for funding; the impact of Nortel’s defined benefit plans and deferred tax assets on results of operations and Nortel’s cash flow; the adverse resolution of class actions, litigation in the ordinary course of business, intellectual property disputes and similar matters; Nortel’s dependence on new product development and its ability to predict market demand for particular products; Nortel’s 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 and consolidation in the telecommunications industry; changes in regulation of the Internet; the impact of the credit risks of Nortel’s customers and the impact of customer financing and commitments; general stock market volatility; negative developments associated with Nortel’s supply contracts and contract manufacturing agreements, including as a result of using a sole supplier for a key component of certain optical networks solutions; the impact of Nortel’s 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; any undetected product defects, errors or failures; the future success of Nortel’s strategic alliances; and certain restrictions on how Nortel and its president and chief executive officer conduct business. For additional information with respect to certain of these and other factors, see the most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed by Nortel 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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Pat Cooper

Nortel

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