DALLAS -- The U.S. International Trade Commission (ITC) has terminated its investigation of alleged infringement of certain Ciena Corporation patents by Nortel Networks Corporation (NYSE:NT)(TSX:NT), Nortel Networks Limited and Nortel Networks Inc. and Flextronics Telecom Systems Ltd. and Flextronics International Ltd. This follows a preliminary injunction, recently issued by the U.S. District Court in Marshall, Texas, barring Ciena from participating in or pursuing the ITC action, and requiring Ciena to seek termination of the investigation by the ITC.

Earlier this year, Nortel denied allegations of patent infringement made by Ciena in the U.S. District Court in Marshall, Texas. In addition, on March 14, 2005 and May 12, 2005, Nortel filed counterclaims against Ciena in that court asserting that Ciena is infringing a total of 13 U.S. patents owned by Nortel. Nortel is seeking damages and an injunction prohibiting Ciena from shipping products that infringe those patents. The matter is set for trial in June 2006.