BOSTON - Teleglobe [TSE: BCE] has signed a three-year contract estimated to be worth US$400 million with Nortel Networks* [NYSE/TSE: NT] for supply of high-performance Optical Internet solutions throughout Teleglobe's GlobeSystem* network.

GlobeSystem is Teleglobe's global strategic network that delivers value-added services including hosting, content distribution and broadband IP (Internet Protocol) connectivity. Optical Internet solutions from Nortel Networks, including advanced optical amplification capability, will enable the GlobeSystem network to deliver the speed, reliability, quality and profitability of the high-performance Internet to Teleglobe customers around the world.

"Three factors were critical in this investment decision - a turnkey solution, advanced capacity and an accelerated deployment schedule, all of which combine to support Teleglobe's objectives of growing our data services business, accelerating GlobeSystem, and addressing pent-up demand for bandwidth-intensive Internet services," said Stu Verge, president, global operations, Teleglobe.

"Teleglobe gains efficiencies in network management, improves response times, and reduces administrative costs - making for an even more competitive, flexible and faster network," Verge said.
"Nortel Networks industry leading Optical Internet solutions provide unprecedented capacity per fiber for applications such as eBusiness and multimedia transmission, bringing the high-performance Internet to even greater heights," said Don Smith, president, Optical Internet, Nortel Networks.

"By deploying our optical solutions, customers such as Teleglobe are able to meet rapid deployment schedules globally, reduce operating costs, and bring new, profitable services to their customers," Smith said.

Nortel Networks will supply Teleglobe with a full suite of Optical Internet solutions including the OPTera* Long Haul 1600 Optical Line System, which will be used to transport high-bandwidth Internet and voice services on GlobeSystem networks in North America, Europe and Asia. In North America, one of the first routes in operation will be Montreal to New York. Internationally, Nortel Networks will light Teleglobe's OC-48 SONET ring in Tokyo and new European fiber routes with dense wave division multiplexing (DWDM) capacity across the United Kingdom, France, Belgium, the Netherlands, Luxemburg and Germany.

In addition to long haul solutions, Teleglobe will deploy Nortel Networks Preside* network and service management and Nortel Networks OPTera Connect DX Connection Manager, enabling rapid delivery of high-bandwidth managed optical services. Nortel Networks will also provide Global Professional Services, including project management, spares management and a variety of other services to help Teleglobe's customers accelerate time to market.

Teleglobe, an established and leading provider of global Internet services, enables its customers to maximize the potential of the Internet through its delivery of rich media content, one-stop global connectivity and hosting services. With the world's largest international Internet backbone, extensive peering arrangements and a broad base of carrier, ISP and ICP customers, Teleglobe's GlobeSystem network provides a robust network platform for an increasing portfolio of Internet and data services. Teleglobe is a wholly owned subsidiary of BCE, Inc. [TSE: BCE]. For more information, visit www.teleglobe.com.

Nortel Networks is a global Internet and communications leader with capabilities spanning Optical, Wireless, Local Internet and eBusiness. 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, promising a new era of collaboration, communications and commerce. Visit us at www.nortelnetworks.com.

*Nortel Networks, the Nortel Networks logo, the Globemark and OPTera are trademarks of Nortel Networks. GlobeSystem is a trademark of Teleglobe.