BOSTON - Changing the rules on how users and content come together on the Internet, Nortel Networks* [NYSE/TSE: NT] introduced a new portfolio of content networking products and patent-pending technologies that will radically advance the delivery of content-rich Web services based on individual user preferences.

Nortel Networks Personal Internet products will help application, hosting and service providers, content publishers and enterprises to transparently distribute personalized content across the Internet, and to profit from a new wave of personalized Web services.

This new suite of hardware and software offerings includes:

• Nortel Networks Shasta* Personal Content Portal - a platform-independent software engine that will enable delivery of customized content services for subscribers and content providers.
• Nortel Networks Alteon* Personal Content Director - the first content-aware request router that will deliver true user-proximity routing to optimum content sites in real-time, based on network load, request attributes and proximity intelligence.
• Nortel Networks Alteon Personal Content Cache - a high-performance caching system for Web and streaming media content.
• Nortel Networks Alteon Content Distribution Manager - a highly scalable content management appliance that will provide simplified management, accounting and control of distributed content.
• Nortel Networks Alteon 780 Web Switch - a family of high-capacity, high-density carrier class content switching systems for high-volume Internet data center environments.

Moving beyond conventional content delivery services designed to push content to the Internet's edge, Nortel Networks Personal Internet solutions will give customers the power to uniquely identify individual Web users, deliver custom content and services from the fastest content location, and increase infrastructure efficiency. With Nortel Networks Personal Internet products, customers can revolutionize the end users' Internet experience while increasing the capability, efficiency and availability of their high-performance Internet infrastructures.

For the first time, providers will deliver a true 'My Internet' experience for their users. With Nortel Networks Personal Internet products and technologies, applications and multimedia content will be delivered reliably, at specified service levels, and tailored to target audiences based on the content requested, access method and device, physical location and personal preferences.

"We are fundamentally changing the way content will be delivered, as well as the type of value-added services that can now be provisioned across today's broadband Internet - and it's all based on user and content attributes, not merely IP addresses," said Dominic Orr, president, Content Networking, Nortel Networks. "The subscriber and content edges represent the new Internet control points, where user policies and request routing decisions will be made, and where a new class of personalized content services can be created and delivered."

The Personal Internet portfolio will enhance Nortel Networks leadership position in Optical, Wireless and Local Internet solutions by adding a layer of content-intelligence above the core infrastructure.
Nortel Networks Shasta Personal Content Portal empowers service providers at the subscriber edge to participate in the lucrative content delivery market by offering personalized content services, introducing new service models and revenue opportunities.

Designed for use with the industry-leading Nortel Networks Shasta 5000 Broadband Service Node, the Shasta Personal Content Portal is a platform-independent content delivery software engine that lets service providers control content access, steer subscribers, and deliver self-provisioned services on a per-subscriber basis.

A key requirement in the delivery of personalized Internet services is real-time knowledge of the distance between a user and the requested content. Nortel Networks Alteon Personal Content Director will go beyond current DNS-based request routing implementations to become the first and only device to deliver true, user-proximity routing based on real-time network path reliability and load, in addition to user and content attributes, content server health and performance. Patent-pending Adaptive Content Routing technology enables real-time performance mapping of all content delivery paths relative to the user.

To ease management and distribution of static and streaming media content, Nortel Networks has introduced Nortel Networks Alteon Personal Content Cache and Nortel Networks Alteon Content Distribution Manager. Alteon Personal Content Cache is a high-performance caching system with advanced capabilities such as prioritized content pinning and concurrent live stream splitting and caching. Alteon Content Distribution Manager is an advanced content distribution and management platform that enables sophisticated content distribution, global distribution, global accounting and billing features.

Extending the current Nortel Networks Alteon 700 series of Internet data center Web switches, Nortel Networks has also introduced the Nortel Networks Alteon 780 line of large-scale, carrier-class Web switching systems. Delivering a high-density, high-capacity (256 gigabits per second) and highly-resilient Web switching solution for data centers, Alteon 780 combines integrated layers 2-3 switching and routing with comprehensive layers 4-7 content-intelligent switching applications. Alteon 780 is based on purpose-built Nortel Networks Alteon WebIC network processing ASICs, and supports the full suite of award-winning Nortel Networks Alteon Web OS traffic management software.

Alteon Personal Content Director, Alteon Personal Content Cache and Shasta Personal Content Portal are available immediately. Alteon 780 and Alteon Content Distribution Manager are expected to be available in February and June of this year, respectively.

Nortel Networks is a global Internet and communications leader with capabilities spanning Optical, Wireless, Local 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, Shasta and Alteon are trademarks of Nortel Networks.