Nortel to Capitalize on Growth in Video Bandwidth


TORONTO, Canada, May 16/PRNewswire/ Metro Ethernet Networks Builds on Nortel's Optical and Carrier Data Leadership

Nortel(x) (NYSE: NT , TSX: NT) President and CEO Mike Zafirovski today
announced a new business focus on driving market share in super-fast
Ethernet networks essential to handling the coming growth of bandwidth-
hungry video applications.

Nortel's strategic initiative - Metro Ethernet Networks - will be led
by Philippe Morin as president. This initiative will offer innovative
Ethernet portfolios designed to deliver high quality, reliability and security.

"Nortel's future depends on our continued leadership in innovation and
with our new Metro Ethernet Networks we're bringing our best technologies
together, backed by an initial incremental investment in R&D," said
Zafirovski. "In his previous position as general manager, Optical, Philippe
grew the business approximately 24 percent last year to US$1.2 billion. I
have every confidence he will build on that leadership and momentum through
Metro Ethernet Networks."

"With IPTV, IMS and other applications evolving quickly, service
providers will face huge bandwidth challenges across all networks -
wireless, wireline and cable. Metro Ethernet Networks is the first step in
getting Nortel in front of that curve to win in this critical new space in
the market," said Zafirovski.

Nortel's Metro Ethernet Networks business strategy is based on the
increasing reliance on Ethernet as the standard protocol for both LAN and
WAN communications to break the bandwidth bottleneck between high-speed
fibre- optic networks and metro networks serving consumers and business. In
addition, Nortel's Metro Ethernet Networks will focus on wireless
capabilities, using its Metro Ethernet solution to ensure such applications
as high-bandwidth video provide real-time speed and quality to mobile devices.

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. Our next-
generation technologies, for both service providers and enterprises, span
access and core networks, support multimedia and business-critical
applications, and help eliminate today's barriers to efficiency, speed and
performance by simplifying networks and connecting people with information.
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 nortel.com/news.

Source: Nortel

For further information: Patricia Vernon, +1-(905)-863-1035, patricve@nortel.com; Jay Barta, +1-(972)-685-2381, jbarta@nortel.com

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