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Nortel Networks Continues Innovation in Routing With New Version of Open IP Environment

Offers Greater Scalability, Modularity, Functionality; Samsung to Incorporate Release 2.0

OTTAWA, Ontario - Nortel Networks* [NYSE/TSE: NT] announced the availability of Open IP Environment 2.0, the latest version of its unique, standards-based routing software platform that facilitates greater interoperability between a wide range of Internet Protocol devices and offers greater capacity to integrate with a wide range of platforms and devices.

Open IP Environment 2.0 breaks new ground with a single, open framework for common control, management, forwarding and system services planes. The new version includes open application programming interfaces (APIs). APIs efficiently link to underlying operating systems and processors, facilitating addition of Open IP Environment modules such as OSPF, RIP v.2, BGP-4 and IP v.4.

"This is a significant step for Nortel Networks' Open IP Environment, an initiative that exhibits leadership and enables accelerated development and innovation in open source routing code technology," said Ron Westfall, senior analyst for Current Analysis, a leading industry research group. "Ultimately, the widespread adoption of Open IP Environment technology will be essential for the Internet and related services and applications to realize their full economic potential."

Nortel Networks also announced the addition of Samsung's Internet Network Division to the growing list of Open IP Environment licensees. Nortel Networks has amassed more than 200 Open IP Environment licensing agreements with more than 100 customers in various market spaces, including network processors, semiconductors, operating systems and network equipment.

"This is a strategic software suite for Samsung," said Kwan Soo Lee, vice-president, Internet-Infra Group, Samsung Electronics. "It will help developers create powerful, value-added applications for our products more quickly and at less expense, which in turn translates into value for our customers. This will help us create high-performance solutions that are faster, more secure and more reliable."

Kalai Kalaichelvan, general manager, Open IP Environment, Nortel Networks, added, "With Open IP Environment, and with companies like Samsung signing on to incorporate it, we're we're building a new, high-performance Internet that's faster, more reliable and more accessible than ever before."

Nortel Networks' Open IP Environment can Internet-enable everything from servers and network processors to set-top boxes, mobility devices, personal digital assistants (PDAs) and personal computers. It makes routing, authentication, security, encapsulation, tunneling, quality of service, policy management, network management and accounting available to manufacturers, OEMs and developers, enabling them to deliver new Internet applications and services more quickly and at much lower cost. Release 2.0 also offers support for SNMP and Nortel Networks Command Line Interface (CLI).


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About EION
EION provides the broadest line of IP solutions for data and voice over satellite, wired, and wireless networks. EION is an industry leader in delivering mission-critical IP solutions for Telecom and Defense equipment manufacturers. EION has the world's leading IP solution portfolio that enables: Routing (IPv4, IPv6), Security, Quality of Service (QoS), MPLS, and related embedded IP technologies for satellite, wired and wireless networks. Over 120 equipment manufacturers already incorporate EION's real-time embedded software globally.
For more information, visit: www.eion.com

About Nortel Networks
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.

* Nortel Networks, the Nortel Networks logo, the Globemark, Unified Networks and How the world shares ideas are trademarks of Nortel Networks.

For additional information, please contact:
Richard Kelland
Marketing & Communications
Phone: (613) 271-4400 x232
e-mail: richard@eion.com