MIAMI -- Nortel Networks(NYSE:NT)(TSX:NT) today announced the cornerstone of its strategy of transforming networks by enabling service providers and cable operators to converge multiple communications networks over IP (Internet Protocol) and achieve substantial cost reduction and top line growth via mission critical IP services.

Unveiled at Carrier Inform 2004, Nortel Networks annual global conference for service provider customers, Nortel Networks Multiservice Provider Edge (MPE) 9000 series is a new breed of networking device, part of the emerging multiservice edge category that addresses the critical shortcomings of today's edge routers -- network reliability, service scalability and traffic prioritization.

The Yankee Group estimates this new category will grow nearly twice as fast as the overall worldwide IP edge market, which it forecasts at a compound annual growth rate (CAGR) of 18.8 percent toUS$4.3 billion in 2008.

"Yesterday's edge requirement was for the biggest, fastest router," said Sue Spradley, president, Wireline Networks, Nortel Networks. "Today's requirements are ultra-reliability and the ability to support multiple services with the highest performance and cost efficiency. These play to Nortel Networks key strengths."

"Without new levels of reliability, a carrier business model transformation based on convergence and the expansion in new services can't occur," Spradley said. "We are giving service providers and cable operators the confidence to converge today's high-margin services while laying the foundation for future services and new value creation. With our extensive product portfolio and core IP routing through our relationship with Avici Systems, we offer our service provider customers the industry's most comprehensive solution set for network transformation and convergence."

The MPE 9000 series is designed from the ground up to be the industry's most reliable network edge platform. Its innovative architecture provides a host of technology innovations that bring 'voice-grade' reliability to the IP world, allowing service providers to converge their voice, data, wireless and multimedia services onto a single network using multi-protocol label switching (MPLS).

Equant, a global carrier with one of the largest data networks in the world, has begun trials of Nortel Networks MPE 9000 series in its lab in France. TELUS, one of Canada's leading telecommunications companies, and Infonet, a global communications provider with a data network reaching more than 180 countries, also intend to conduct trials.

"The MPE9000 series is in line with Equant's vision of the converged network," said Didier Duriez, senior vice president, Network, Managed Services and Security, Equant. "The architecture is fundamentally different from other products on the market today and very well suited for the next generation multiservice edge, which would fit our customer requirements in terms of service evolution."

"Nortel Networks MPE 9000 series provides the ability to collapse multiple access infrastructures to not only drive cost out of the network, but also to terminate traditional data services with an MPLS service end point," said Ibrahim Gedeon, chief technology officer, TELUS. "Existing devices cannot be morphed into a multiservice edge device -- for us it is important to design the platform from scratch with carrier-grade characteristics and service requirements in mind.We are looking forward to trialing the MPE 9000 series in our labs."

"A platform that effectively unifies the edge can be a service provider's most valuable network asset, enabling transformation of our business model to achieve new levels of customer value, differentiation, and profitability," said Paul Hibbert, chief technology officer, Infonet. "The MPE 9000 series is being launched at exactly the right time. Infonet and Nortel Networks multiservice edge visions have proven to be very closely aligned as we've worked together over the last couple of years. A lab trial is the next step in our evaluation process."

Nortel Networks MPE 9000 series will be generally available in the fourth quarter of 2004, and is the first product to be announced from a planned family of multiservice IP devices designed around Nortel Networks vision of resilient IP networks.

"As service providers migrate more voice and private data traffic to IP networks, the criteria used for selecting IP infrastructure vendors becomes more rigorous," said Mark Bieberich, program manager, Communications Network Infrastructure, the Yankee Group. "Service providers now require a platform designed specifically for consolidating networks at the IP/MPLS edge. Among other key requirements, this platform must deliver access-agnostic services, feature a scalable IP/MPLS control plane, and provide true carrier-grade reliability. Nortel Networks MPE was designed precisely with these goals in mind."

In a separate release:

What: Nortel Networks Multiservice Provider Edge 9000 series Webcast for Press, Analysts, and Consultants

Who: Scott McFeely, general manager, Wireline Networks

When: 10:00 am ET, Monday, May 10, 2004

Where: To take part in the Webcast, please visit - http://www.nortelnetworks.com/pressconf051004

To participate in audio teleconference, please call 888-211-4395 (North America ONLY) 212-271-4600 (International)

Please dial in at least 15 minutes prior to the start of the event.

What you'll need: What You Need To "Attend" the Webcast -

Archived Files: A replay of webcast will be available at 12:00 pm ET at http://www.nortelnetworks.com/pressconf051004

A replay of the audioconference will be available at 12:00 pm ET at 800-383-0935 (North America) or 402-530-5545 (International), passcode 21193918# until 12:00 pm ET, May 24, 2004

Nortel Networks Ltd.