April 13, 1999

BOSTON -- Nortel Networks* [NYSE: NT/TSE: NTL] announced that its Passport* 7480 multiservice switch was named a top performer in lab tests conducted by Data Communications that evaluated frame relay-to-ATM switches from leading vendors. Results of the competitive testing appear in the March issue of Data Communications, and can be accessed online at http://www.data.com/issue/990307/npntest.html

"Our Tester's Choice award recognizes exemplary products in the networking industry," according to Data Communications publisher Joseph Braue. "This distinction represents the extraordinary value that these products provide to networking professionals."

Participating vendors' products were tested based on a common networking deployment scenario in which the switches concentrated a large number of frame relay user interfaces and transported the traffic over an ATM infrastructure. The switches were tested and evaluated for performance and class of service (CoS) functionality, which are considered critical requirements in the competitive frame relay switching marketplace.

Data Communications reported, "Nortel Networks' Passport 7480 exhibited low latency and good throughput across the board. It also posted a strong showing when it came to prioritizing mission-critical traffic on congested networks."

Nortel Networks' Passport 7480 is a member of the successful Passport family of ATM switches. With over 12,000 switches shipped and hundreds of thousands of ports deployed, many customers have experienced the performance and reliability recognized by this award.

The Passport 7480 is primarily utilized as a vehicle for frame relay service and ATM adaptation, providing 10,000 DS-0s per frame. The Passport 7480 is used in hundreds of networks worldwide and supports the industry's leading national and international frame relay service providers. Many frame relay industry firsts were achieved using the Passport 7480, including differentiated CoS, voice over frame relay and frame relay switched virtual circuits.

Nortel Networks continues to leverage its involvement with the ATM and Frame Relay Forums, and the ITU, by implementing standards-based features and service functionality. The Passport 7480 has a rich set of networking features, including the frame relay-to-ATM service highlighted in this test, that deliver intelligent decision-based routing. The self-learning, self-healing topology management system facilitates maximum end-user performance and reliability without constant operator intervention. These functions make up the fundamentals of service management and, in return, end-user satisfaction.

"We are very proud of the Passport 7480 and the Data Communications award," said Chris Thompson, director of Passport network marketing at Nortel Networks. "The award is further testimony that our products are built to withstand the rigors and performance requirements demanded within today's industry. The Passport 7480 is a flagship product and Nortel Networks is continuing to invest in delivering higher port densities, increased platform performance and features to optimize the carriage of Internet traffic."

Nortel Networks delivers value to customers around the world through Unified Networks* solutions, spanning mission-critical telephony and IP-optimized networks. Customers include public and private enterprises and institutions; Internet service providers; local, long-distance, cellular and PCS communications companies, cable television carriers, and utilities.

Nortel Networks' common shares are listed on the New York, Toronto, Montreal, Vancouver, and London stock exchanges. Nortel Networks had 1998 revenues of US$17.6 billion and has approximately 75,000 employees worldwide.

* Nortel Networks, the Nortel Networks Globemark, Unified Networks, Passport and How the world shares ideas are trademarks of Northern Telecom Limited

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