DALLAS -- Nortel Networks (NYSE:NT)(TSX:NT) is taking another step in its strategy to enable service providers to converge multiple communications networks and services over IP (Internet Protocol) and achieve substantial cost reduction and top line revenue growth.

Nortel Networks Services Edge Router 5500 (formerly known as Shasta 5000 Broadband Services Node) reliably and economically converges virtual private network (VPN), broadband aggregation and IP services capabilities onto a single platform at the network edge over a standards-based MPLS (Multi-Protocol Label Switching) infrastructure.

New scalability and performance enhancements enabled though third generation control and subscriber services modules will enable broadband-optimized routing capabilities to be combined with broadband aggregation and IP services capabilities often missing from traditional edge routers. These enhancements are scheduled for general availability in July 2004.

"Today's service providers and cable operators are challenged with finding a way to differentiate their connectivity services in order to reduce customer churn and price erosion," said Roy MacLean, general manager, Services Edge Router, Nortel Networks. "Services Edge Router 5500 elegantly combines connectivity with value-added content delivery capabilities that can provide this differentiation and enable service providers to deliver better value to their end customers."

Nortel Networks Ltd.