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Technology Stocks : Nortel Networks (NT)

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To: Kenneth E. Phillipps who wrote (4994)3/7/2000 1:21:00 PM
From: Kenneth E. Phillipps   of 14638
 
Nortel Networks' Optoelectronics Components Drive Leadership in Optical Internet Solutions

New Advances in Automation, Next-Generation Components Underpin High-Performance Optical Internet
Updated 9:15 AM ET March 7, 2000

BALTIMORE, March 7 /PRNewswire/ - Nortel Networks (NYSE/TSE:NT) today reinforced its global leadership in
Optical Internet solutions with the announcement of four major innovations in optoelectronic components. These
innovations strengthen Nortel Networks' position as one of the world's leading producers of optical components. The
company's development of high-end, intelligent lasers, amplifiers, and receivers- with unprecedented automation of optical component manufacturing- will continue to set the standard for value delivery into Optical Internet systems.

Nortel Networks' components business currently has an annual revenue run rate of more than US$1 billion. The company
is targeting substantial growth in the optoelectronics business this year.

"A key factor in Nortel Networks' global competitive advantage is that our optical component product portfolio is based upon many key, proprietary technologies our competition cannot match," said Don Smith, president, of Optical Internet, Nortel Networks. "Our competitive advantage in 10 gigabit systems is due, in part, to our leadership in components. This announcement widens our lead on the rest of the industry."

In November 1999 and February 2000, Nortel Networks announced combined optical investments of US$660 million,
much of which will add to the company's components capabilities. As a result, Nortel Networks is automating its
components manufacturing end-to-end, a significant step in the company's ongoing strategy to further increase optical
component production.

The innovations announced today include:

- Wavelength Tunability - This innovation puts Nortel Networks at the forefront of tunable laser technology. With this technology, Nortel Networks can today produce a 20-channel tunable laser with a 50GHz grid. Tunable lasers greatly simplify the production of Optical Internet solutions, allowing enormous benefits in costs and flexibilityin production. A future evolution of this technology will include integration of the tunable laser and GaAs-modulator. This product offfers an evolution path to 40Gbs and beyond.

- Meteor Multiwavelength Gain Module (MGM) - This is believed to be the world's first semi-custom family of wavelength division multiplexing (WDM) amplifiers. The MGM is engineered to give the lower cost and faster time-to-market benefits of a standard volume product, together with the performance benefits of a customized solution.

- Integrated Laser Modulator - The modulator includes Mach Zehnder transmitters, and offers a high level of integration - combining a laser, splitter, external modulator, wavelength locker, and variable optical attenuator in one package - to reduce footprint, improve
manufacturing, and cut overall costs.

- Integrated Receivers - Nortel Networks recently extended its leadership with the introduction of the 10Gbs APD-Preamp. This new product maximizes performance by co-packaging a high-sensitivity avalanche photo diode (APD) with an established transimpedance amplifier. It also
offers extended red band capability, doubling the number of channels.

"We are experiencing strong global market pull for 10 gigabit D-WDM components," said John Pittman, managing
director, Optoelectronics, Nortel Networks. "In today's market, process automation innovations are just as important as new product technologies, and Nortel Networks leads the market in both."

Across the board, Nortel Networks is one of the leading optical components suppliers in the world. Nortel Networks'
optoelectronics - 10 gigabits per second transmitters and receivers, 980nm pump modules, and most recently, optical amplifiers - supply most optical network equipment vendors around the globe.

Nortel Networks is a global leader in telephony, data, eBusiness, and wireless solutions for the Internet. The Company had 1999 U.S. GAAP revenues of US$21.3 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 through Unified Networks that promise a new era of collaboration, communications and commerce. Visit us at www.nortelnetworks.com.
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