June 15, 2005 04:01 ET

Nortel's New Security Solution Sets Provide Anywhere, Anytime Protection for Multimedia Communications, Information Access

SANTA CLARA, Calif.--(CCNMatthews - Jun 15, 2005) -

Aquanta Networks, Farm Credit Financial Services, GM Daewoo, Others Secure Networks with Nortel

Nortel (NYSE:NT) (TSX:NT) today announced new security solution sets designed to ensure secure anywhere, anytime remote access to multimedia and IP telephony communication services as well as protect critical information from attack or theft.

Nortel's new solution sets -- Secure Information Access and Secure Multimedia -- allow enterprises to protect information and multimedia communications regardless of whether people access the network outside or inside the office. Nortel's security solutions help ensure people can communicate securely and remotely with advanced capabilities and confidence and without rigid networking security constructs that require office-based equipment or specific end-user devices.

Customers who have successfully implemented Nortel's Secure Information Access Solution and Secure Multimedia Solution to address key areas of privacy, reliability and protection against data and identify theft include Aquanta Networks, Farm Credit Financial Services, the Virginia State Police, GM Daewoo (Korea) and Sydney Adventist Hospital (Australia).

"Security is the overarching consideration in networking today," said John Girard, an analyst with Gartner. "Networking capabilities take a back seat to security considerations. It really doesn't matter what efficiencies the infrastructure can provide. If the network isn't safe, it isn't usable. Security is critical, especially for verticals like government, financial and healthcare companies. Solutions must provide a means for enterprises to communicate with proven security measures that protect communications within the organization and among external stakeholders such as partners and customers."

"Nortel is committed to offering security solutions that address key customer security concerns," said Malcolm Collins, president, Enterprise Networks, Nortel. "Our focus is on securing enterprise communications, information, and applications anywhere, anytime by applying a layered defense approach to network security that ensures there are no single points of security failure in a network and adapts to future threats. Nortel is furthering its commitment to securing and protecting the world's most important information by providing security solutions that span the entire network infrastructure to enable greater business agility."

The Nortel Secure Information Access Solution provides access to the corporate network for mobile, remote and home-based employees regardless of location, leveraging public networks for business partner connectivity. As well, the solution ensures connected systems meet an organization's security policy requirements related to anti-virus, personal firewall, and up-to-date patches before providing access. It also helps protect stored information from virus, worm and denial of service attacks. Other Nortel products in this solution set include Secure Socket Layer (SSL) and IPSec Virtual Private Networking (VPN) Gateways and VPN Routers, Switched Firewall equipment, Nortel's Threat Protection System, and network management, as well as managed and professional services.

Farm Credit Financial Services uses the Secure Information Access Solution to cost-effectively connect remote locations to its enterprise network resources and simplify remote Internet administration. Farm Credit Financial Services is also implementing Nortel's Secure Network Access Solution, which uses VPN Tunnel Guard for end-point security.

"As remote user VPN deployments over public networks have become more widely deployed, the issue of endpoint security has moved to the forefront of our agenda," said James Mileski, director, IT, Farm Credit Financial Services. "The dispersal of viruses, Trojan horses, worms and other security threats has increased with alarming frequency. Nortel's Secure Network Access capability addresses this risk by enforcing endpoint security for remote VPN users, allowing us to protect our network from malicious attacks. These products have enabled us to provide secure access to our critical business information while ensuring optimal availability."

Nortel's Secure Multimedia Solution includes products from Nortel's IP multimedia, security and switching product sets, and is designed to enable a more robust and secure environment for customers' IP communications, helping to:

-- shield IP multimedia traffic such as IP Telephony, video, collaboration and instant messaging from unauthorized access.

-- protect critical multimedia resources from service disruption through attack protection, management encryption, and geographic redundancy.

-- prevent loss of intellectual property due to eavesdropping and minimize toll fraud and unauthorized information access by using strong authentication, authorization and policy enforcement.

Aquanta Networks in Belgium uses the Nortel Secure Multimedia Solution to secure its Web-based Session Initiation Protocol (SIP) communications services. Because this solution is fully SIP compliant, it is able to accommodate thousands of concurrent SIP and SSL sessions, and it provides a highly-available architecture, as well as interoperability with existing network components.

"Nortel was the obvious choice for us," said Gery Pollet, managing director, Aquanta Networks. "The switched, accelerated firewall guarantees reliable service and security. And most importantly, because it is fully SIP-compliant, it is fully interoperable with our architecture, which is particularly crucial for us because our service is entirely SIP-based. IP-centric communications are going to become the norm over the next five years. Anyone thinking about launching SIP services within their organization -- either with or without Web access -- needs to think about security. For us, Nortel provided the perfect solution."

In addition to networking equipment, Nortel offers professional services focused holistically on the security solution lifecycle, including services which assist during planning and design, installation and integration, maintenance and management through to upgrade and optimization. Specific security-focused services such as Network Security Design and Planning, Security Audit and Assessments, Security Integration Planning, and Compliance and Regulatory Audits round out Nortel's complete set of security services offerings.

Nortel hosts Security eSeminars Series Webcasts that provide customers timely and informative sessions covering a number of relevant network security topics and related solutions. Nortel has made secure connectivity available to more than 100 million users worldwide. The company's solutions are also embedded in the communications network of the U.S. Department of Defense, with Nortel as the first end-to-end provider of JITC-certified convergence solutions.

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 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 Nortel's and NNL's public filings; 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 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.

Use of the terms "partner" and "partnership" does not imply a legal partnership between Nortel and any other party.

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