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Nortel Networks, IBM Speed Development of New, High-Performance Internet Solutions

Nortel Networks, IBM Speed Development of New, High-Performance Internet Solutions Integrate Nortel Networks' Open IP Environment With IBM Power Network Processor

Nortel Networks* [NYSE/TSE: NT] and IBM [NYSE: IBM] are working together to help developers create flexible, reliable and profitable solutions for a new, high-performance Internet. The companies have integrated Nortel Networks' Open IP Environment with IBM's Power Network Processor to create a powerful platform for addressing the demands of the second wave of eBusiness. IBM has incorporated Open IP Environment and other common hardware components with the IBM Power Network Processor reference platform that provides the basics of a working system. Nortel Networks and IBM are demonstrating this platform at Networld+Interop (IBM booth #6955) this week.

"This is a strategic processor architecture for us," said Al Delorenzi, chief technology officer, Enterprise Solutions for Nortel Networks, which plans to use the IBM Power Network Processor with Open IP Environment in applicable future products. "Nortel Networks is committed to delivering interoperable and standardized internetworking solutions. Our customers want the flexibility to rapidly develop applications that enable new types of functionality to be introduced."

"Through the use of programmable network processor technology and readily available development tools, our companies intend to usher in a new era of networking," said Christine King, vice-president, wired communications, IBM. "Open IP Environment is one of the strategic software suites for the Power Network Processor. Developers will be able to take advantage of this integrated platform to build high-performance Internet solutions that are faster, more secure, more reliable and lower cost."

Nortel Networks' Open IP Environment can Internet-enable everything from servers and network processors to set top boxes, mobility devices, personal digital assistants and personal computers. Open IP Environment makes IP and routing software available to manufacturers, OEMs and developers, enabling them to quickly deliver new Internet applications and services at much lower cost. A modular architecture enables developers to choose features based on device size and type, environment and user needs.

Open IP Environment is a step toward building a faster, more reliable, more secure Internet. "Nortel Networks is leading the way by opening its routing and IP software to the industry so developers can quickly deliver new Internet applications and services at significantly reduced costs," said Laurie Gooding, senior analyst, Cahners In-Stat Group. "The success of Open IP Environment will be determined in part by how broadly the technology is accepted. Adding a major name like IBM to the list of developers utilizing Open IP Environment is certainly a big milestone."

Nortel Networks has secured more than 200 licensing agreements for Open IP Environment since its launch in November 1999. Customers include network processor vendors, semiconductor makers, operating system vendors and network equipment manufacturers.

The IBM Power Network Processor is highly customizable and scalable while offering network equipment vendors a powerful building block for developing high-performance solutions. Featuring distributed processing capabilities and a rich set of hardware-assisted circuitry, it offers exceptional throughput, control and flexibility. The software programmability enables equipment makers to quickly implement and change features such as packet classification and modification, packet forwarding and real-time frame processing. For example, the IBM Power Network Processor performs wire-speed forwarding and filtering functions through a combination of optimized hardware-assist engines and resident pico processors (micro-engines), enabling manufacturers to customize these functions through programming.

IBM Microelectronics is a key contributor to IBM's role as the world's premier information technology supplier. IBM Microelectronics develops, manufactures and markets state-of-the-art semiconductor and interconnect technologies, products and services. Its superior integrated solutions can be found in many of the world's best-known electronic brands. More information about IBM Microelectronics can be found at: http://www.chips.ibm.com.


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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.

Copyright © Nortel Networks Limited 2003. All Rights Reserved.