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Industry Reports Affirm Nortel Networks Leadership in Delivering Converged Solutions for Enterprises

  • 03 March, 2004 17:05

<p>March 2, 2004
2003 Dell'Oro Group Research Ranks Nortel Networks #1 in IP Telephony, Layer 4-7 Switching</p>
<p>ORLANDO, Fla. - Nortel Networks* [NYSE/TSX: NT] continued to demonstrate in 2003 its leadership position in delivering converged solutions to enterprises, according to new reports from Dell'Oro Group, Insight Research, InfoTech, In-Stat/MDR and Infonetics.</p>
<p>"When we looked to upgrade our communications system, we put an emphasis on finding a vendor that could bring both carrier grade reliability and an innate understanding of the complexity involved in implementing an IP telephony network,"said Robert Angell, director, Technical Services Centre, Lakehead University in Thunder Bay, Ontario, Canada. "Nortel Networks reputation as a leader in voice, data and applications was a clear indication to us that they were the right company to choose in our move to a converged network."</p>
<p>Dell'Oro Group research found that for 2003, Nortel Networks ranked #1 globally in total system and line shipments of PBX, KTS and IP Telephony, and #1 in global IP line shipments supporting voice over IP licenses to the client desktop with 22 percent share. As stated by Dell'Oro Group in its Q4 2003 executive summary, "Nortel Networks IP line shipments increased 36 percent [fourth] quarter [2003] over [third] quarter [2003] to 418 K..."</p>
<p>Insight Research also ranked Nortel Networks as the global leader in IP lines shipped for 2003 with 25 percent market share. Additionally, InfoTech found that Nortel Networks led in total lines shipped (PBX, KTS and IP Telephony) for Q4 2003 and was #1 in IP Telephony shipments in the United States for the combined categories of Telephony Enabled-LAN, IP-Enabled and Converged lines.</p>
<p>"Nortel Networks has proven itself to be a leader in convergence, showing the ability to help customers evolve their network infrastructure to a converged network environment," said Tom Wanda, Insight Research. "Not only did Nortel Networks ship the most IP lines for 2003, but it also did an outstanding job of selling IP extensions across the world with 49 percent of the company's total sales outside of the North American market. That fact alone shows Nortel Networks ability to break down communication boundaries on a global basis."</p>
<p>Nortel Networks leadership in applications for convergence was underscored by a report from In-Stat/MDR released in December 2003. It named Nortel Networks as the global market share leader in IVR (interactive voice response) across all categories in the report.</p>
<p>Nortel Networks also demonstrated its leadership in the data switching market in 2003. Based on Dell'Oro's Q4 2003 market share results, Nortel Networks Alteon* switches were #1 in the layer 4-7 Server Load Balancing (SLB) Switch fixed segment, and Alteon switches were #1 in the layer 4-7 SLB Gigabit Ethernet segment for Q4 2003 and for the year 2003. Additionally, Infonetics recently reported that Nortel Networks was #1 in worldwide Dedicated SSL Appliance market share for Q4 2003 and for the year 2003. Nortel Networks has received this designation for three years running.</p>
<p>"As enterprises improve their business effectiveness through the use of technology, they rely on Nortel Networks for convergence solutions from our leading portfolio of voice, data, video and applications," said Greg Merritt, vice president of marketing, Enterprise Networks, Nortel Networks. "These recent reports from notable industry research firms reinforce our position as the leader in providing convergence solutions and benefits to enterprises."</p>
<p>Nortel Networks is an industry leader and innovator focused on transforming how the world
communicates and exchanges information. The Company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Wireless Networks, Wireline Networks, Enterprise Networks, and Optical Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at www.nortelnetworks.com.</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 sufficiency of our restructuring activities, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; continued reductions in spending by our customers; fluctuations in operating results and general industry, economic and market conditions and growth rates; the communication by our auditors of the existence of material weaknesses in internal control; the ability to recruit and retain qualified employees; fluctuations in cash flow, the level of outstanding debt and our current debt ratings; the ability to meet the financial covenant in our credit facilities; the use of cash collateral to support our normal course business activities; the dependence on our subsidiaries for funding; the impact of our defined benefit plans and our deferred tax assets on our results of operations, cash flows and compliance with our financial covenant; the dependence on new product development and our ability to predict market demand for particular products; the 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 in the telecommunications industry; changes in regulation of the Internet; the impact of the credit risks of our customers and the impact of customer financing and commitments; stock market volatility generally and as a result of acceleration of the settlement date or early settlement of our purchase contracts; risks associated with a consolidation of our common shares; the impact of 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; the future success of our strategic alliances; and the adverse resolution of litigation,intellectual property disputes and similar matters. For additional information with respect to certain of these and other factors, see the most recent Form 10-Q and Form 10-K filed by Nortel Networks with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel Networks 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>
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<p>*Nortel Networks, the Nortel Networks logo, the Globemark, Business Without Boundaries and Alteon are trademarks of Nortel Networks.</p>

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