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Macmahon Selects Nortel Solution for High-Speed, Broadband Employee Services

  • 14 September, 2005 12:24

<p>Nortel Gigabit Ethernet Switches Support Regional Network Across Asia Pacific</p>
<p>PERTH, Australia – Macmahon Holdings (ASX: MAH), one of Australia’s most successful and prominent mining services contracting groups, has selected a Nortel* (NYSE/TSX: NT) data and VoIP solution for its secure, high-speed “Global-One” network. The Global-One network will provide anywhere, anytime access for its more than 700 computer users across Asia Pacific.</p>
<p>“To maximise productivity and efficiencies our staff needs access to the group’s vast information resources quickly and securely from the many remote mining locations we operate in,” said Jason Cowie, Macmahon Chief Information Officer. “Nortel met each of our requirements for a highly secure, high-bandwidth infrastructure that integrates seamlessly with our broader communications environment.”</p>
<p>Founded in Adelaide in 1963 and now based in Perth, Macmahon incorporates civil engineering, open cut mining, underground mining and Allplant services for some of the region’s largest mining and construction companies. Macmahon has annual revenues of more than $600 million. The company is also trialing IP Telephony communications at its corporate head offices.</p>
<p>Nortel’s solution comprises a high-availability, core network solution using the Ethernet Routing Switch (ERS) 5530 which connects Macmahon’s two primary, metropolitan area sites with 10 Gigabit Ethernet. On the edge of the head office network is Nortel’s ERS 5520, a Power over Ethernet routing switch. Layer 2 ERS 3510 Gigabit switches will be deployed at remote sites.</p>
<p>“The platform provides Macmahon 10/100/1000 (Gigabit) equipment that supports the foundations of our core Global-One network infrastructure, which includes our head offices and disaster recovery centre. The same platform is now being extended to all site operations throughout Asia Pacific,” said Cowie.</p>
<p>The Macmahon team will manage the entire switch network using Nortel’s Optivity Switch Manager and Optivity Policy Manager from its head office.</p>
<p>The Nortel solution was successfully integrated and supported by data networking and process control specialists Applicon, a Nortel nPower partner and Western Australia-based service provider.</p>
<p>“In the contracting industry, like so many other industries that rely on wide area communications, resilience, reliability and security are key to powerful communications,” said Mark Stevens, president, Australia and New Zealand, Nortel. “Nortel solutions deliver all three with high level performance to ensure market leaders like Macmahon have services that meet their specialised requirements.”</p>
<p>Nortel's Ethernet Switching portfolio is purposely designed for mission-critical environments, and includes a number of products designed to create and extend high-speed networks for medium-to-large corporations with hundreds of users across vast geographic areas. Resilient switch clustering technology combined with inherent security allows Nortel's simple network architecture to lower total cost of ownership in deployment and on-going operations, while laying the foundations for cost-effectively migrating to 10G technology in the future.</p>
<p>The Macmahon agreement extends Nortel’s continued success with high-speed, high-availability, end-to-end, convergence solutions in Australia, most recently at Australia’s Department of Defence, James Cook University and Peter MacCallum Cancer Centre.</p>
<p>About Nortel
Nortel is a recognised 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. Serving both service provider and enterprise customers, Nortel delivers innovative technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world’s greatest challenges. Nortel does business in more than 150 countries. For more information, visit Nortel on the Web at For the latest Nortel news, visit</p>
<p>Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the outcome of regulatory and criminal investigations and civil litigation actions related to Nortel’s restatements and the impact any resulting legal judgments, settlements, penalties and expenses could have on Nortel’s results of operations, financial condition and liquidity, and any related potential dilution of Nortel’s common shares; the findings of Nortel’s independent review and implementation of recommended remedial measures; the outcome of the independent review with respect to revenues for specific identified transactions, which review will have a particular emphasis on the underlying conduct that led to the initial recognition of these revenues; the restatement or revisions of Nortel’s previously announced or filed financial results and resulting negative publicity; the existence of material weaknesses in Nortel’s internal control over financial reporting and the conclusion of Nortel’s management and independent auditor that Nortel’s internal control over financial reporting is ineffective, which could continue to impact Nortel’s ability to report its results of operations and financial condition accurately and in a timely manner; the impact of Nortel’s and NNLs failure to timely file their financial statements and related periodic reports, including Nortel’s inability to access its shelf registration statement filed with the United States Securities and Exchange Commission (SEC); ongoing SEC reviews, which may result in changes to Nortel’s and NNLs public filings; the impact of management changes, including the termination for cause of Nortel’s former CEO, CFO and Controller in April 2004; the sufficiency of Nortel’s restructuring activities, including the work plan announced on August 19, 2004 as updated on September 30, 2004 and December 14, 2004, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; cautious or reduced spending by Nortel’s customers; increased consolidation among Nortel’s customers and the loss of customers in certain markets; fluctuations in Nortel’s operating results and general industry, economic and market conditions and growth rates; fluctuations in Nortel’s cash flow, level of outstanding debt and current debt ratings; Nortel’s monitoring of the capital markets for opportunities to improve its capital structure and financial flexibility; Nortel’s ability to recruit and retain qualified employees; the use of cash collateral to support Nortel’s normal course business activities; the dependence on Nortel’s subsidiaries for funding; the impact of Nortel’s defined benefit plans and deferred tax assets on results of operations and Nortel’s cash flow; the adverse resolution of class actions, litigation in the ordinary course of business, intellectual property disputes and similar matters; Nortel’s dependence on new product development and its ability to predict market demand for particular products; Nortel’s ability to integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact of price and product competition; barriers to international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization and consolidation in the telecommunications industry; changes in regulation of the Internet; the impact of the credit risks of Nortel’s customers and the impact of customer financing and commitments; stock market volatility generally and as a result of acceleration of the settlement date of Nortel’s forward purchase contracts; negative developments associated with Nortel’s supply contracts and contract manufacturing agreements, including as a result of using a sole supplier for a key component of certain optical networks solutions; the impact of Nortel’s supply and outsourcing contracts that contain delivery and installation provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; any undetected product defects, errors or failures; and the future success of Nortel’s strategic alliances. For additional information with respect to certain of these and other factors, see the most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed by Nortel with the SEC. Unless otherwise required by applicable securities laws, Nortel disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.</p>
<p>*Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.</p>
<p>For further information:</p>
<p>Elizabeth Lovett
(02) 8870 5625</p>
<p>Guy Lerner
Watterson Marketing Communications
(02) 9437 6122</p>

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