Introduction of First Broadband Network Services and Greater Subscriber 
    Aggregation in response to Growing Service Provider Needs for 
    Large-Scale, Broadband Value-Added Services

    BOSTON, Feb. 29 /CNW/ - Nortel Networks (NYSE/TSE: NT) today announced
the industry's first integrated broadband aggregation and VPN solution as part
of new software and hardware enhancements to its Shasta 5000 Broadband Service
Node (BSN). Available immediately, the new enhancements are designed to meet
the critical deployment and business requirements of Nortel Networks' service
provider customers and the high-performance Internet.
     "Today, customers are asking for our help in deploying hundreds of our
nodes to support hundreds of thousands of broadband customers within just the
next few months, reflecting the rapid maturation of the broadband market,"
said Anthony Alles, president and general manager, Nortel Networks Shasta IP
Services business unit. "To meet these needs, we are rolling out significant
new service enhancements for the Shasta 5000 BSN, delivering on our commitment
of a seamless upgrade from broadband aggregation to broadband services." New
enhancements to the Shasta 5000 BSN include: Release 2.0 of the IP Services
Operating System (iSOS); release 2.0 of the Shasta Service Creation System
(SCS) and a series of new interface modules. These enhancements deliver the
large-scale broadband access and new network-based broadband services that
service providers require.

     Greater Scalability
     The addition of bulk provisioning capabilities to the SCS allows for
rapid, GUI based creation of sophisticated subscriber templates and profiles.
This allows service providers to provision hundreds or thousands of new
subscribers per day, far beyond the capacity of simple command line interface
driven subscriber management systems.
     The SCS also now supports LDAP interfaces, allowing service providers to
create geographically-tiered, highly robust management server hierarchies,
interfacing into common directory systems, and allowing for national scale
network deployments, comprising multiple network operations centers and
supporting hundreds of BSNs.
     New support for the industry standard BGP4 interdomain routing protocol
will allow service providers to integrate the Shasta 5000 BSN into existing IP
backbones and support far larger network deployments than are possible with
the static routing of first generation subscriber management systems or the
RIPv2 and OSPF protocols currently supported by the BSN.

     New VPN and QoS Service Enhancements
     With the new services supported in iSOS, the Shasta 5000 BSN now
provides the industry's first solution that integrates broadband aggregation
with sophisticated virtual private network capabilities and the first solution
for bringing QoS guarantees to the last mile.
     "We published the industry's first comprehensive framework for network
based VPNs, which has recently been published as the IETF RFC 2764," said
Anthony Alles. "Today we are delivering the first elements of this framework,
giving our customers such as Qwest the ability to roll out industry leading
broadband services, such as outsourced wide area networks and network-based
firewalls." (Editors note: see same date release "Qwest Communications Selects
Nortel Networks to Support Enhanced Internet Broadband Services.")
     The new VPN capabilities of the Shasta 5000 BSN include virtual leased
lines (VLLs) and Virtual Private Routed Networks (VPRNs). VLLs are IPSec
secured tunnels that, in conjunction with the new channelized DS-3 interface
module, will allow service providers to migrate their customers from legacy
ATM/Frame Relay and leased line connections to more cost effective and
scalable IP backbone services.
     VPRNs allow service providers to offer their customers a completely
outsourced wide area routed network, comprised of virtual routers supported on
Shasta 5000 BSNs and interconnected with secure IPSec tunnels. The Shasta 5000
VLL and VPRN capabilities allow service providers to offer their broadband
customers a true turnkey value added network solution, as opposed to basic,
commodity Internet access.
     In conjunction with the Nortel Networks Promatory Intelligent
Multiservice Access System (IMAS), the Shasta 5000 BSN can now offer the first
solution for bringing QoS guarantees to the last mile. The IMAS has unique
support for multiple, QoS guaranteed ATM virtual circuits to each subscriber
across DSL lines. These can be mapped into the sophisticated QoS policies of
the Shasta 5000 BSN to extend IP quality of service across the network and
across the last mile. The combination of the IMAS and the Shasta 5000 BSN
provides the last link in the chain for broadband content delivery across DSL
lines.

     New Platform Enhancements
     New platform enhancements to the BSN include ATM OC-12, channelized DS-3
and Fast Ethernet modules. The 2xOC12/STM 4 ATM SingleMode module, priced at
$34,995, and the 2xOC12/STM 4 ATM MultiMode module, priced at $29,995, will
each support two ATM ports at 622 Mbps, with the capability to either operate
both ports, or to configure one as a redundant port for the other for enhanced
robustness. With ATM OC-12 support, the Shasta 5000 BSN now offers the highest
performance and most scalable interface support in the industry, allowing
service providers to support increased densities of subscribers in their
access networks, and to plan for future support of even higher speed optical
metropolitan networks.
     The 3XDS-3,1xOC-3 SingleMode module, priced at $19,995, and the
3XDS-3,1xOC-3 MultiMode module, priced at $17,995 will each support 3
channelized DS-3 ports, and an OC-3 ATM trunk port, allowing service providers
to migrate existing leased line and ATM/Frame Relay customers onto cost
effective, national reach IP backbones, while offering them new value-added
services, such as network firewalls, QoS policies and VPN support.
     The 8XFE(UTP5) Fast Ethernet module, priced at $24,995, will support
eight Fast Ethernet ports allowing for high-density aggregation of remote
access servers and cable modems, allowing the Shasta 5000 BSN to offer service
providers unmatched scalability and flexibility.
    "These new capabilities of the Shasta 5000 BSN match the real world needs
of today's broadband service providers," said Ron Westfall, senior analyst at
Current Analysis. "Nortel Networks is addressing the multiple dimensions of
broadband scalability, going beyond basic subscriber aggregation to the real
needs for scaling provisioning and deployment. At the same time, they are
delivering the first of the value-added services that will drive the broadband
business case. In an era of 'free DSL' providers, it is such services that
will ultimately drive the profitability and very survival of service
providers. The Shasta 5000 BSN is delivering on its promise of enabling the
first true network services."
     The Shasta 5000 BSN is designed to power the subscriber edge of the
network, where last mile technologies like DSL meet the Internet backbone and
where broadband subscribers will meet broadband services. The Shasta 5000
enables carriers, competitive local exchange carriers (CLECS) and Internet
Service Providers (ISPs) to increase their competitive advantage in
transitioning from the simple connectivity model enabled by first generation
subscriber management systems to a cost-effective, network-based, value-added
services model.
     Emerging providers who are offering or plan to offer network based
services to their broadband subscribers with the Nortel Networks Shasta 5000
BSN include Qwest, Telocity, Log On America, IJNT, NetDepot, @ Link,
DSLnetworks, BroadbandNOW, Inc. (U.S.) EinsteinNet (Germany), Telia (Finland),
Completel (France), and Tokyo Metallic (Japan).
     For more information on the Shasta 5000 and new enhancements, please
contact a Nortel Networks IP Services sales representative or visit the web
site at www.nortelnetworks.com/ipservices.
     Nortel Networks is a global leader in telephony, data, eBusiness, and
wireless solutions for the Internet. 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 through Unified
Networks that promise a new era of collaboration, communications and commerce.
Visit us at www.nortelnetworks.com.



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For further information: Todd T. Cabral, Nortel Networks, 
(978) 288-4368, tcabral@nortelnetworks.com; Paul Goyette, Nortel Networks, 
(905) 863-4702, goyette1@nortelnetworks.com; Cynthia Stirling, Stirling & 
Karbo, Inc., (650) 513-0972, cstirling@skco.com;
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