Nortel Solutions Power Advanced Research Network, SURFnet6

Self-Configurable Intelligent Optical Network To Drive Global Innovation and Collaboration

JANUARY 25, 2006, AMSTERDAM, The Netherlands - SURFnet, a global leader in advanced network research, launched SURFnet6 the world’s first self-configurable intelligent optical network based on optical solutions from Nortel* [NYSE/TSX: NT].

SURFnet6, a high-grade computer network specially reserved for higher education and research in the Netherlands, will revolutionize the way researchers access the vast amounts of bandwidth their research requires, configuring their connectivity based on their real-time requirements. The new SURFnet6 network provides a state-of-the-art platform for researchers working on broadband intensive applications such as high-energy physics and medical research.

“We are convinced that this powerful and agile optical network will offer Dutch research and education an excellent international starting position. The new network is fully equipped to handle the anticipated growth in Internet traffic over the next years and its lightpath services offer unprecedented opportunities for researchers.” said Kees Neggers, managing director, SURFnet. “The next phase of network development will introduce additional agility and automation at the optical layer with the latest photonics and control plane technologies from Nortel.”

“SURFnet6 is a showcase for the cutting-edge use of adaptive optical intelligent networks. Its innovative and advanced use of next-generation optical networking is creating today’s reference model for access and collaboration between researchers and institutions,” said Peter Newcombe, EMEA vice-president of Wireline and Optical, Nortel. “Nortel has been a pioneer in optical communications since its early beginnings 40 years ago and we continue to be an innovator in this dynamic industry which is now the backbone of today’s global communications network.”

The network is a high-speed hybrid optical and packet switching infrastructure with native IPv4, IPv6 and Light Path Provisioning over a single transmission infrastructure for easy configuration of broadband access. It is also managed via a control plane for efficient network administration, helping reduce operating costs and enhanced traffic restoration.

The hybrid nature of the SURFnet6 network is designed to enable it to tune precisely to the bandwidth demand of users. SURFnet6 can set up optical light paths for point-to-point connections that give large data streams their dedicated path outside of the IP routed network. This feature improves the capacity, quality and security of the connection, whilst making use of the most cost effective transport technology.

The transmission infrastructure was built using products from Nortel’s next generation optical and Metro Ethernet portfolio, including: Common Photonic Layer (CPL), Optical Multiservice Edge 1000 and 6500 product families, the Optical Metro 5000 and the Metro Ethernet Routing Switch (MERS) 8600. These platforms are the result of Nortel’s 40-year continuous optical innovation and experience.

To enable a complete network agility supporting automated user configurable light paths, the SURFnet6 network will be equipped in the near future with additional advanced Nortel next-generation optical technologies such as:

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“ Enhanced Reconfigurable Optical Add/Drop Multiplexer (eROADM) providing seamless photonic switching of light paths and ”on the fly" creation of new optical branches
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" Electronically Dynamically Compensating Optics (eDCO) extending the reach of light paths throughout the SURFnet network while dramatically simplifying the network and reducing its operational costs
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" Dynamic Resource Allocation Controller (DRAC) allowing for a dynamic, efficient and cost optimized use of network resources

SURFnet6 was implemented by a consortium of industry partners including Avici Systems, who provided their SSR routers and Telindus, a pan-European network integration specialist.

About SURFnet

SURFnet operates and innovates the national research network, which connects circa 180 institutions in higher education and research in The Netherlands. The organization is among the leading research network operators in the world. To serve the SURFnet users with their growing demand for high-quality network connections, SURFnet continuously translates the latest technology into new and better communication services. More information can be found at: www.surfnet.nl/info/en **

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 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.

**This is a 3rd party link as described in our Web linking practices.

Contact Information

Bo Gowan

Nortel

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