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October 19, 2004

University of Arkansas Deploys Wireless Mesh Network Solution from Nortel Networks

Innovative Technology Provides Seamless Campus Roaming Capabilities for Students, Faculty

FAYETTEVILLE, Ark. – The University of Arkansas, working with Nortel Networks* [NYSE/TSX: NT] and the SBC family of companies, has deployed a Nortel Networks Wireless Mesh Network solution designed to extend the reach of wireless local area network (LAN) technology outdoors.

In service today, this new solution has transformed the campus of the University of Arkansas, one of the leading research universities in the United States, into a ‘hotspot’ that gives students and faculty secure wireless broadband access to educational and Internet resources from most outdoor locations on campus.

“We were interested in expanding our current wireless network for use by students, faculty and staff,” said Craig Brown, associate director, University of Arkansas Department of Computing Services. “Due to limitations on where we have a hard wired infrastructure to support a conventional wireless network, a wireless mesh network seemed to be an approach that would solve a number of our challenges in building a network around those constraints. The design of this network is intended to be nearly self configuring when deploying or expanding a wireless network and the mesh architecture provided a self healing network in the event portions of the mesh fail.”

“We decided to concentrate on expanding the wireless mesh network – we’re calling it our Greenspace Network – to those outdoor areas the campus has built to accommodate people being outside,” Brown said. “We’ve covered all of the areas where we have benches or picnic tables on the main part of our campus.”

Nortel Networks Wireless Mesh Network solution uses wireless links to connect access points installed inside or outside to provide secure, seamless access to wireless broadband services. This solution allows enterprises and service providers to install wireless LANs in areas where it is difficult or cost prohibitive to run cables. This innovative approach can drastically reduce the complexity and cost of deploying a traditional wireless LAN.

The Wireless Mesh Network solution for the University of Arkansas includes Nortel Networks Wireless Access Point 7220 and Wireless Gateway 7250. The University had previously deployed Nortel Networks Optivity* Network Management System and other related network management elements.

“Nortel Networks continues to deliver products that allow organizations like the University of Arkansas to easily build highly reliable and secure broadband wireless networks that can position them to drive increased productivity and cost savings,” said Mark Whitton, general manager, Wireless LAN, Nortel Networks.

“Our Wireless Mesh Network solution is ideal for a university campus setting, providing a cost-effective and reliable solution that minimizes cabling requirements through radio backhaul technology,” Whitton said. “The inherent security of our Wireless Mesh Network solution means that users can be less worried about malicious attacks compromising information while they are wirelessly connected to the network with laptops or handheld computing devices.”

Nortel Networks Wireless Mesh Network solution is designed to provide network and user security along with mobility so users can securely and continuously access the network while moving around the campus. It incorporates ‘auto discovery’ and ‘self healing’ algorithms to simplify deployment and reduce service outages by automatically reconfiguring as access points are added or deleted. In addition, the self-organizing and RF (radio frequency) optimization capabilities of its architecture significantly reduce the need for RF engineering and commissioning. This enables installation in any location where power is available, significantly increasing the reach of wireless LAN coverage.

The Wireless Mesh Network solution complements Nortel Networks award-winning WLAN 2200 Series, introduced in March 2003. The WLAN 2200 Series provides a complete, end-to-end wireless networking solution for enterprise campus environments, serving as an extension of the wired communications infrastructure. With Nortel Networks Wireless Mesh Network solution, service providers and enterprises have a cost-effective, secure and reliable solution for areas that are difficult to wire.

As a global innovation leader, Nortel Networks enriches consumer and business communications worldwide by offering converged multimedia networks that eliminate the boundaries among voice, data and video. These networks use innovative packet, wireless, voice and optical technologies and are underpinned by high standards of security and reliability. For both carriers and enterprises, these networks help to drive increased profitability and productivity by reducing costs and enabling new business and consumer services opportunities. Nortel Networks does business in more than 150 countries. For more information, visit Nortel Networks on the Web at www.nortelnetworks.com or www.nortelnetworks.com/media_center.

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 outcome of Nortel Networks independent review and planned restatement or revisions of its previously announced or filed financial results; the impact of the management changes announced on April 28, 2004 and August 19, 2004; the impact of the inability to meet Nortel Networks filing obligations on support facilities and public debt obligations; the sufficiency of Nortel Networks restructuring activities, including the work plan announced on August 19, 2004 as updated on September 30, 2004, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; cautious or reduced spending by Nortel Networks customers; fluctuations in Nortel Networks operating results and general industry, economic and market conditions and growth rates; the communication by Nortel Networks auditors of the existence of material weaknesses in internal controls; Nortel Networks ability to recruit and retain qualified employees; fluctuations in Nortel Networks cash flow, level of outstanding debt and current debt ratings; the use of cash collateral to support Nortel Networks normal course business activities; the dependence on Nortel Networks subsidiaries for funding; the impact of Nortel Networks defined benefit plans and deferred tax assets on results of operations and Nortel Networks cash flows; Nortel Networks dependence on new product development and its ability to predict market demand for particular products; Nortel Networks ability to integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact of price and product competition; barriers to international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization in the telecommunications industry; changes in regulation of the Internet; the impact of the credit risks of Nortel Networks customers and the impact of customer financing and commitments; stock market volatility generally and as a result of acceleration of the settlement date or early settlement of Nortel Networks purchase contracts; the impact of Nortel Networks supply and outsourcing contracts that contain delivery and installation provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the future success of Nortel Networks strategic alliances; and the adverse resolution of litigation, investigations, intellectual property disputes and similar matters. For additional information with respect to certain of these and other factors, see the most recent Form 10-Q/A and Form 10-K/A filed by Nortel Networks with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, 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, Business Without Boundaries and Optivity are trademarks of Nortel Networks.

Contact for Press and Analysts:

Christie Blake
Nortel Networks
(978) 288-8439
christbl@nortel.com

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