Time Warner Cable of New York and New Jersey Offers Optical Ethernet a

    Business Editors/Technology Writers

    NEW YORK--(BUSINESS WIRE)--Feb. 7, 2005--Time Warner Cable of New York and New Jersey, a pioneer in the cable industry, is extending its suite of business services throughout New York City using Optical Ethernet and Storage Solutions from Nortel (NYSE:NT)(TSX:NT).
    These new Ethernet-based services will enable business customers to securely and reliably extend their enterprise applications across the wide area network (WAN) as well as provide business continuance and disaster recovery. Business customers will also be able to increase their control over their data communications costs with the ability to purchase bandwidth in more flexible increments.
    "As a global center for finance and commerce, protecting critical information is vital for New York City businesses, especially within the Wall Street financial sector," said Bhupender Kaul, vice president, Business Service, Time Warner Cable of New York and New Jersey. "Time Warner Cable prides itself on not only offering affordable, innovative services, but also providing the scalability and reliability needed for businesses to run without interruption in the event of an unplanned event or disaster."
    Time Warner Cable has introduced new Ethernet business services that include Ethernet Private Line, Ethernet Private LAN and Ethernet Internet Connectivity. In addition, the company is offering a private storage service that meets the stringent service level agreements demanded by the financial services industry's business continuance and disaster recovery requirements. This storage service supports storage connectivity for systems that use ESCON, FICON, Fibre Channel, IP or Ethernet storage protocols. These new Ethernet and Storage business services build upon Time Warner Cable's existing cable TV (CATV) and Road Runner Business Class services.
    Time Warner Cable's Optical Ethernet Network was built on its own extensive fiber infrastructure, which is completely independent of existing service providers. The Network is based on Nortel's Optical Metro 5200 metro dense wavelength division multiplexing and Optical Metro 3500 multiservice platforms, which support an array of high-capacity data services. These platforms enable Time Warner Cable to provide Optical Ethernet and Storage Solutions to midsize and Enterprise customers for secure, scalable and reliable services.
    "Nortel is supporting Time Warner Cable's commitment to offer business customers choice and value throughout their markets," said Dan Mondor, general manager, Cable Multisystem Operators, Nortel. "Using Nortel's Optical Ethernet and Storage Solutions, Time Warner Cable has the opportunity to truly help businesses address their storage protection requirements, simplify their networks and reduce their operational costs."

    About Time Warner Cable

    Time Warner Cable of New York and New Jersey serves over 1.4 million customers in four NYC boroughs (Manhattan, Queens, Staten Island and western Brooklyn), Mt. Vernon, Hudson Valley (Orange, Sullivan, Ulster Counties and parts of Dutchess, Greene and Delaware Counties) and Bergen and Hudson Counties, New Jersey.
    The company also includes NY 1 News, the 24/7/365 award-winning local news channel.
    Time Warner Cable of New York and New Jersey has led the telecommunications industry in bringing exciting, innovative services to customers including Video on Demand, digital video recorders, digital phone and high speed Internet access through four ISPs. Visit www.twcnyc.com.
    The parent company, Time Warner Cable, owns and manages cable systems serving 10.9 million subscribers in 27 states, which include some of the most technologically advanced, best-clustered systems in the country with more than 75 percent of the Company's customers in systems of 300,000 or more. In New York State, Time Warner Cable serves approximately 2.6 million customers.
    Utilizing a fully upgraded, advanced cable network and a steadfast commitment to providing customers with choice, value and world-class customer service, Time Warner Cable is an industry leader in delivering advanced products and services including high definition television and wireless home networking. Time Warner Cable is a subsidiary of Time Warner Inc.

    About Nortel

    Nortel is a recognized 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 www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.

    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; 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 controls over financial reporting; the impact of Nortel's and NNL's failure to timely file their financial statements and related periodic reports, including breach of its support facility and public debt obligations and 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 our public filings; the potential delisting or suspension of Nortel's and NNL's publicly traded securities; the impact of management changes, including the termination for cause of Nortel's former CEO, CFO and Controller in August 2004; the sufficiency of Nortel's restructuring activities, including the work plan announced on August 19, 2004 as updated on September 30, 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; 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 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 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 or early settlement, which is currently not available, of Nortel's forward purchase contracts; 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; 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.

    Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.

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CONTACT: Nortel Shelley Chrestman, 972-685-7574 email: chrestma@nortel.com or Time Warner Cable Suzanne Giuliani, 212-598-7391 email: Suzanne.giuliani@twcable.com

KEYWORD: TEXAS NEW YORK NEW JERSEY INDUSTRY KEYWORD: TELECOMMUNICATIONS NETWORKING INTERNET E-COMMERCE PRODUCT MARKETING AGREEMENTS SOURCE: Nortel

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