May 24, 2005 09:01 ET

Impsat Deploys Nortel Next Generation Optical Technology in Latin American Network

BUENOS AIRES, Argentina--(CCNMatthews - May 24, 2005) -

Impsat Fiber Networks, Inc., a leading provider of private telecommunications network, data center and Internet services in Latin America, is enhancing its Latin American backbone infrastructure using next generation optical technology from Nortel (NYSE:NT)(TSX:NT).

Nortel is currently implementing its Optical Multiservice Edge (OME) 6500, a next generation optical convergence platform, to transform Impsat's SONET/SDH network into a high-speed packet optical infrastructure through a smooth and scalable evolution path. The deployment is expected to be completed by the end of the second quarter of 2005.

"Nortel has helped us build our terrestrial network and infrastructure in Latin America," said Matias Heinrich, executive vice president of networks, Impsat. "We needed a cost-efficient solution that would support our 'IP Anywhere' strategy, which includes high-speed connectivity of 10/100/1000 Ethernet services. Nortel's OME 6500 fits very well within this strategy."

"We continue our commitment to building and advancing telecom infrastructures that boost the competitive edge of regional businesses, powering commerce and ultimately enhancing the human experience in the region," said Andrea Cavallari, managing director of Nortel in the Southern Cone. "Nortel's industry leading optical convergence platform will help Impsat protect its key revenue source of existing telecom services while rolling out new ones on a converged network that can be scaled as needed to accommodate customer growth as well as future advanced voice and data services."

Nortel has been working with Impsat since 1999, providing advanced solutions to help build and expand the terrestrial portions of the carrier's pan-Latin American high-performance optical network.

Nortel Optical Multiservice Edge 6500 is a next generation optical convergence platform that blends multiple services and network layers (Layer 0, 1, 2) onto a single platform for significant capital and operating expense reduction, dramatic network simplification and cost-effective support of broadband services. OME 6500 has been deployed in more than 30 networks around the world, including Telesur, Internet2, Jiangxi Power and SURFnet.

Deployed in more than 1,000 customer networks in 65 countries, Nortel's end-to-end optical networking portfolio includes next generation SONET/SDH, optical switching, wave division multiplexing and Optical Ethernet products. Nortel has deployed more than 290,000 optical network elements globally. Nortel was the market share leader in DWDM transport for the fifth year in a row as of year end 2004, according to the Dell'Oro Group.

About Impsat

Impsat Fiber Networks is a leading regional provider of private telecommunications network, data center and Internet services in Latin America. The company offers integrated data, voice, and Internet solutions, with an emphasis on broadband transmission, for national and multinational companies, financial institutions, governmental agencies and other business customers. It has operations in Argentina, Colombia, Brazil, Venezuela, Ecuador, Chile, Peru and the United States and also provides services in other countries in Latin America. It operates 15 metropolitan area networks in some of the largest cities in Latin America, including Buenos Aires, Bogota, Caracas and Sao Paulo. The company owns an extensive pan-Latin American broadband network combining fiber optic and satellite technology.

About Nortel

Nortel is a recognized leader in delivering communications capabilities that enhance the human experience, ignite and power global commerce, and secure and protect the world's most critical information. Serving both service provider and enterprise customers, Nortel delivers innovative technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. Nortel does business in more than 150 countries. For more information, visit Nortel on the Web at For the latest Nortel news, visit

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 regulatory and criminal investigations and civil litigation actions related to Nortel's restatements and the impact any resulting legal judgments, settlements, penalties and expenses could have on Nortel's results of operations, financial condition and liquidity, and any related potential dilution of Nortel's common shares; the findings of Nortel's independent review and implementation of recommended remedial measures; the outcome of the independent review with respect to revenues for specific identified transactions, which review will have a particular emphasis on the underlying conduct that led to the initial recognition of these revenues; the restatement or revisions of Nortel's previously announced or filed financial results and resulting negative publicity; the existence of material weaknesses in Nortel's internal control over financial reporting and the conclusion of Nortel's management and independent auditor that Nortel's internal control over financial reporting is ineffective, which could continue to impact Nortel's ability to report its results of operations and financial condition accurately and in a timely manner; the impact of Nortel's and NNL's failure to timely file their financial statements and related periodic reports, including breach of its support facility and public debt obligations and Nortel's inability to access its shelf registration statement filed with the United States Securities and Exchange Commission ("SEC"); ongoing SEC reviews, which may result in changes to our public filings; the potential delisting or suspension of Nortel's and NNL's publicly traded securities; the impact of management changes, including the termination for cause of Nortel's former CEO, CFO and Controller in April 2004; the sufficiency of Nortel's restructuring activities, including the work plan announced on August 19, 2004 as updated on September 30, 2004 and December 14, 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's customers; increased consolidation among Nortel's customers and the loss of customers in certain markets; fluctuations in Nortel's operating results and general industry, economic and market conditions and growth rates; fluctuations in Nortel's cash flow, level of outstanding debt and current debt ratings; Nortel's monitoring of the capital markets for opportunities to improve its capital structure and financial flexibility; Nortel's ability to recruit and retain qualified employees; the use of cash collateral to support Nortel's normal course business activities; the dependence on Nortel's subsidiaries for funding; the impact of Nortel's defined benefit plans and deferred tax assets on results of operations and Nortel's cash flow; the adverse resolution of class actions, litigation in the ordinary course of business, intellectual property disputes and similar matters; Nortel's dependence on new product development and its ability to predict market demand for particular products; Nortel's 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 and consolidation in the telecommunications industry; changes in regulation of the Internet; the impact of the credit risks of Nortel's 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, which is currently not available, of Nortel's forward purchase contracts; negative developments associated with Nortel's supply contracts and contract manufacturing agreements, including as a result of using a sole supplier for a key component of certain Optical Networks solutions; the impact of Nortel's 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; and the future success of Nortel's strategic alliances.

For additional information with respect to certain of these and other factors, see the most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed by Nortel with the SEC. Unless otherwise required by applicable securities laws, Nortel 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, the Nortel logo and the Globemark are trademarks of Nortel Networks.

Contact Information