Nortel
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Nortel

March 20, 2005 22:28 ET

Nortel Solutions to Protect China Customs Business-Critical Information; DWDM Upgrade Will Enable Secure, Reliable, Real-Time Data Storage, Retrieval


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NORTEL SOLUTIONS

NYSE, TSX SYMBOL: NT

MARCH 20, 2005 - 22:28 ET

Nortel Solutions to Protect China Customs
Business-Critical Information; DWDM Upgrade Will
Enable Secure, Reliable, Real-Time Data Storage,
Retrieval

BEIJING--(CCNMatthews - Mar 20, 2005) -

To improve network speed and efficiency, provide highly reliable backup
and redundancy, and ensure uninterrupted access to business-critical
information in real-time, the Customs General Administration of the
People's Republic of China has selected an optical transport solution
from Nortel (NYSE/TSX: NT) to upgrade its storage network
infrastructure.

Using Nortel's Optical Metro DWDM (dense wavelength division
multiplexing) technology, China Customs will extend its networked
storage capabilities from its main data center in Beijing to multiple
sites across major metropolitan areas. Delivering a comprehensive set of
services and applications, the Nortel solution will provide a scalable
platform for China Customs to meet future applications as well as its
growing data storage and retrieval requirements.

"Nortel is at the forefront of delivering leading solutions to
enterprise and government customers around the world," said Stephen
Tsui, chief operating officer, Greater China, Nortel, "With our DWDM
communication services, China Customs will be able to back up critical
data in real-time, maximize the efficiency of server resources, and
provide fast access to data for recovery in emergencies."

The new China Customs deployment will also support the state-owned
Golden Customs initiative, a nationwide project developed to connect the
information networks of the customs and foreign trade sectors, promote
EDI (electronic data interchange) business communication, and supplement
information exchanged on networks with magnetic media.

China Customs' first storage network using DWDM technology will be based
on Nortel Optical Metro 5200, which delivers up to 32 protected or 64
unprotected DWDM wavelengths and offers up to 10Gbps per wavelength via
a network modeling tool that simplifies and enhances the efficiency of
DWDM deployment and operation. This solution offers an optimized storage
and transport architecture that delivers 'five nines' reliability.

The China Customs network upgrade will also include the compact Nortel
Optical Multiservice Edge 6110 to provide low-cost, multiservice
aggregation and transport of client services over SONET/SDH networks,
and Nortel Optical Metro 1200, a new carrier-class device to simplify
delivery of Ethernet services. These enhancements will enable China
Customs to access affordable, broadband optical services that support
high-bandwidth applications, including business continuity and disaster
recovery, Storage Area Networking (SAN) extension, video content
networking and streaming media.

The Nortel Optical Metro 5000 Multiservice Platform provides DWDM and
CWDM (coarse wavelength division multiplexing) optical solutions, with
over 10,000 network elements deployed and over 27,000 wavelengths lit
worldwide. Deployed in more than 1,000 customer networks in 65
countries, Nortel's end-to-end optical network portfolio includes next
generation SONET/SDH, optical switching products, photonics (WDM), and
Optical Ethernet products. 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.

In China, Nortel's converged data network solutions have been
implemented in many industries, including utilities, banking and
government. Nortel has also supplied a range of strategic networking
solutions to key state-owned projects such as Golden Customs and Golden
Taxation, a national information network linking state taxation
headquarters with local taxation offices at all levels.

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 www.nortel.com. For the latest Nortel news, visit
www.nortel.com/news.

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; 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 controls over
financial reporting; 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,
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; 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 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; 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.

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