Press Release

New Members Add Momentum to Nortel-led Carrier Ethernet Ecosystem

Bring Unique Attributes, Expertise to Industry Consortium

Toronto — December 11, 2007 — Seven new members have joined the industry's Carrier Ethernet Ecosystem, led by Nortel* (NYSE/TSX: NT). The Carrier Ethernet Ecosystem is a group of companies dedicated to developing new, Ethernet-based approaches to meeting the burgeoning bandwidth demands from the increasing popularity of HD video, social media and advanced business services.

The Carrier Ethernet Ecosystem has taken a bold approach to ensure availability of solutions that address these challenges while preserving Ethernet's traditional cost model. Once used primarily for enterprise networks, Ethernet now can provide powerful value for carriers as well. Through its scalability, Ethernet has the ability to grow the network to accommodate new users and new bandwidth-consuming applications simply. Ethernet for carriers also can provide cost savings of up to 40 to 60 percent from traditional technologies because it requires less equipment and is less costly to maintain.

"Today's announcement of seven new members of the Carrier Ethernet Ecosystem underscores the momentum Nortel is seeing in the industry as carriers are realizing the advantages of using Ethernet, particularly as it relates to cost, simplicity and the ability to grow network capacity as demand increases. We welcome the expertise and unique strengths the new members bring to boosting the capabilities of the Ecosystem," said Philippe Morin, president, Metro Ethernet Networks, Nortel. "The power of the Ecosystem is the ability to pre-test, pre-integrate and pre-configure Ethernet solutions, enabling carriers a solution with true plug-and-play simplicity."

The new companies bring unique abilities to the table, ensuring their solutions work with those of the other members while developing new capabilities for customers and furthering advances for Carrier Ethernet. The new members are:

  • Bay Microsystems, a leading supplier of merchant processing solutions for 10G and beyond, it brings a unique perspective relative to advanced protocol support.
  • Broadcom Corporation, a major technology innovator and global leader in semiconductors for wired and wireless communications. Broadcom products enable the delivery of voice, video, data and multimedia to and throughout the home, office and mobile environment. The inclusion of PBT technology in Broadcom's StrataXGS(r) switch and scalable Ethernet switch product portfolios accelerates the adoption of this technology, while adding momentum to carrier Ethernet-based solutions.
  • Ceterus Networks, an Ethernet access solution company, it brings new capabilities to the Ecosystem in the realm of intelligent Ethernet transport.
  • Ethos Networks, a leader in dynamic quality of service and optimization solutions focused on maximizing the utilization of the existing Ethernet infrastructure, brings systems-wide solutions to the group.
  • InfoVista, a provider of service-centric performance management for next generation networks, brings their leadership in Carrier Ethernet proactive service assurance.
  • JDSU brings its leading test solutions for Metro Ethernet products and services, including those engineered for development and production, installation and maintenance, troubleshooting and overall service assurance.
  • Zhone Technologies Inc. is a leading provider of multi-service access technology, offering an integrated suite of last-mile solutions for both copper and fiber networks that enable the full range of voice, video, residential broadband, and enterprise data services.

The new member companies join the roster of ANDA Networks, Axerra Networks, Extreme Networks, Dragonwave, Gridpoint Systems, Hammerhead Systems, Ixia, Lightstorm Networks, Meriton Networks, RAD Data Communications, Soapstone Networks, Spirent Communications, TPACK Systems and TranSwitch.

Most recently, the Carrier Ethernet Ecosystem participated in the world's largest Carrier Ethernet interoperability demonstration in August at the Carrier Ethernet World Congress in Geneva, in which more than 24 vendors showed their carrier Ethernet wares.

About Zhone Technologies

Zhone Technologies is a worldwide leading supplier of communications network equipment for telephone companies and cable operators. Zhone is enabling enhanced services by allowing network operators to offer broadband services over their existing networks today while simultaneously retooling for packet-based VoIP and IPTV over both copper and fiber access lines.

By utilizing Ethernet and IP technology, Zhone's products simplify network operations by consolidating multiple services onto a single access line. This convergence of services and networks simplifies provisioning and operations, delivers quality and reliability, and opens the door for delivering exciting new services.

Zhone pioneered this new category of products now commonly referred to as Broadband Loop Carriers (BLCs) which are regarded among the fastest growing segments of the multi-billion dollar DSL market. According to industry analysts, Zhone is first in broadband loop carrier market share. Zhone is also first in Ethernet over bonded copper market share and Zhone's products were awarded top ranking among BLCs.

With corporate headquarters in Oakland, California, Zhone operates development centers across North America and has sales and service facilities and customers spanning the globe. With deployments at over 600 carriers including some of the world's largest networks, Zhone has enabled carriers to reinvent their businesses.

About Nortel

Nortel is a recognized leader in delivering communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate today's barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.

Contacts:

Pat Cooper
Nortel
425-450-7523
pat.cooper@nortel.com
   Greta Brown
Nortel
+44-1268-432968
gretab@nortel.com
     

Certain statements in this press release may contain words such as "could", "expects", "may", "anticipates", "believes", "intends", "estimates", "targets", "envisions", "seeks" and other similar language and are considered forward-looking statements or information under applicable securities legislation. These statements are based on Nortel's 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 from those contemplated in forward-looking statements. For additional information with respect to certain of these and other factors, see Nortel's Annual Report on Form10-K, Quarterly Reports on Form 10-Q and other 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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