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Technology Stocks : Nortel Networks (NT)

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To: hari t who started this subject2/15/2001 1:36:28 PM
From: Kenneth E. Phillipps  Read Replies (1) of 14638
 
Nortel's Succession Server appears to be a critical element in recent contract wins in Europe. When this product was announced about 1 1/2 years ago, the market yawned but look what is happening. Pay attention to lines in bold.

February 15, 2001

Kabel NRW Selects Nortel Networks-Led Consortium for Major Network Upgrade

Cable Voice Over IP Network to Bring High-Performance Internet to Germany

LONDON – Kabel NRW GmbH & Co. KG, Germany’s largest cable operator,
has selected a consortium led by Nortel Networks* [NYSE/TSE: NT] to build
what is ultimately expected to be one of the world’s largest, two-way, cable
voice over IP (VoIP) networks.

Nortel Networks will supply network infrastructure equipment, estimated to
be worth approximately US$278 million (300 million Euro) over four years, to
upgrade Kabel NRW’s existing cable TV infrastructure to a single,
cost-effective, next generation network for voice, video and data.

Scheduled for completion by 2003, this upgraded network will position Kabel
NRW to offer the benefits of the high-performance Internet – including
reliable, high-speed Internet access, video on-demand and IP (Internet
Protocol) telephony services – to as many as 4.2 million homes.

“The introduction of an integrated national communications network is a
major breakthrough in terms of the quality of telephony, Internet and
interactive services we can offer our customers,” said David Colley, a partner
at Kabel NRW and its parent company, Callahan Associates. “Nortel
Networks is the best of class vendor able to provide an end-to-end IP
network, making them the natural choice to lead a consortium of companies
to upgrade our existing installation and deliver a high-performance, next
generation network.”

“Kabel NRW has embraced the vision of an IP future,” said Pascal Debon,
president, Nortel Networks EMEA (Europe, Middle East, Africa). “They want
fast, reliable, two-way cable solutions that will provide outstanding quality of
service. Nortel Networks will transform Germany’s largest cable network to a
packet-based network with endless multimedia possibilities for the future.
Kabel NRW’s decision not only reinforces the validity of Nortel Networks
global IP vision, but it also recognizes the functionality of our Succession*
portfolio solution.”


Kabel NRW’s network selection further reinforces Nortel Networks global
leadership in voice over IP networking, and in migration of circuit-based
networks to packet for countries and companies.

The upgraded Kabel NRW network will be based on Nortel Networks
Succession* solutions, including Succession Communication Server 2000

and Nortel Networks Passport* 15000. In addition, the metropolitan ring
structure will be built on Nortel Networks OPTera* Metro. The OPTera Metro
optical solution enables rapid deployment of end-to-end managed optical
networks. It provides service differentiation and responsiveness to customer
demands through flexible, scalable optical transport networks.

Succession is a next generation, multiservice network solution for
established carriers and emerging service providers that enables delivery of
mission-critical voice, data and multimedia services over a single, converged,
packet-based network.

Kabel NRW joins a number of providers around the world who have selected
or are testing Nortel Networks Succession solutions, including Cable &
Wireless (United Kingdom), Telstra (Australia), BT Spain, and Global Village
Telecom (Brazil).


Nortel Networks Technology Center of Excellence in Friedrichshafen,
Germany will focus on the adaptation, integration, research and development
needed to bring the consortium’s various solutions together. Consortium
members include ADC, ALSTOM Anlagen-und Automatisierungstechnik
GmbH, Scientific Atlanta Europe, TESSAG SAG-Abel and
Kommunikationstechnik GmbH & Co. KG. In addition, Adams Consult KG
and Wilhelm Sihn jr. KG are subcontractors to consortium members.

ADC will be providing the Cuda 12000 IP Access Switch, a next generation
DOCSIS (Data-Over-Cable Service Interface Specifications) and
EuroDOCSIS-compliant cable modem termination system (CMTS). Scientific
Atlanta Europe will supply its PrismaDT product, HFC Optics and
Professional Services, and WISI BK technology for the network upgrade.

Nortel Networks is a global Internet and communications leader with
capabilities spanning Optical, Wireless, Local, Personal Internet and
eBusiness. The Company had 2000 U.S. GAAP revenues of US$30.3 billion
and serves carrier, service provider and enterprise customers globally.
Today, Nortel Networks is creating a high-performance Internet that is more
reliable and faster than ever before. It is redefining the economics and quality
of networking and the Internet, promising a new era of collaboration,
communications and commerce. Visit us at www.nortelnetworks.com.

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 impact of price and product
competition; the dependence on new product development; the impact of
rapid technological and market change; the ability of Nortel Networks to
make acquisitions and/or integrate the operations and technologies of
acquired businesses in an effective manner; general industry and market
conditions and growth rates; international growth and global economic
conditions, particularly in emerging markets and including interest rate and
currency exchange rate fluctuations; the impact of consolidations in the
telecommunications industry, the uncertainties of the Internet; stock market
volatility; the ability of Nortel Networks to recruit and retain qualified
employees; the ability to obtain timely, adequate and reasonably priced
component parts from suppliers and internal manufacturing capacity; and the
impact of increased provision of customer financing by Nortel Networks. For
additional information with respect to certain of these and other factors, see
the reports filed by Nortel Networks with the United States Securities and
Exchange Commission. Nortel Networks 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 Networks, the Nortel Networks logo, the Globemark, Succession,
Passport and OPTera are trademarks of Nortel Networks.

Contact for Press and Analysts:

Isabelle Tadmoury
Nortel Networks
44 207 529 3063
tadmoury@nortelnetworks.com

Sabine Werb
Nortel Networks
49 69 6697 1906
sabine.werb@nortelnetworks.com
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