Tiscali Italia Deploys Nortel Solution to Support Unbundling Local Loo

    Business Editors/Technology Writers

    ROME--(BUSINESS WIRE)--May 11, 2005--Tiscali Italia, subsidiary of the leading European Internet communication company, has completed deployment of an optical communications infrastructure from Nortel (NYSE:NT)(TSX:NT) across more than 300 Italian cities to support an integrated 'triple-play' of Internet, voice and entertainment services. The new network makes it possible for Tiscali Italia to provide rapid availability of ADSL2-based next generation DSL services for its Italian consumer and business clients.
    The optical network consolidates transport of all Tiscali Italia-provided subscriber services over a single multiservice infrastructure to help drive reduced operational costs. The first phase deployment, covering more than 300 Italian cities, began in October 2004 and is now complete. The second phase deployment is expected to be complete in 2006.
    "The timely, reliable deployment of this network has been critical to Tiscali as we roll out new services nationwide," said Andrea Podda, chief technology officer, Tiscali Italia. "With one network being used to carry all of our broadband, voice and data traffic, reliability is a key factor. The Nortel solution has proven to be operationally very reliable as well as cost-effective and simple to operate."
    Tiscali Italia deployed a Nortel optical metro infrastructure to aggregate the IP-DSLAMs (Digital Subscriber Line Access Multiplexers) that provide 'last-mile' access in their multiservice broadband city networks. This solution enables Tiscali Italia to cost-effectively offer integrated Internet, telecommunications, and entertainment services.
    "We are helping Tiscali to make advanced broadband services available across Italy," said Attilio Piro, carrier accounts director for Nortel in Italy. "Nortel is committed to delivering broadband solutions that enhance Tiscali's service portfolio."
    The benefits of Nortel's solution for Tiscali include a scalable platform that delivers a comprehensive set of services and applications; a simple architecture for dense wavelength division multiplexing (WDM) and coarse WDM that optimizes footprint and wavelength utilization for lowest cost per service; and a secure system that assures services for mission critical data and applications.
    Key components of the new optical network deployed by Tiscali include Nortel's Optical Metro 5000 series and Optical Multiservice Edge (OME) 6500. The Optical Metro 5000 is a cost-effective and carrier-class WDM platform that increases the capacity of fiber optic data transmission systems through multiplexing of multiple wavelengths of light, each transporting bit-rate and protocol-independent services. The OME 6500's packet-optical architecture not only allows multiple services and network layers to be converged onto a single platform, but also supports unprecedented fully non-blocking T1/E1 switching and grooming capability to deliver lowest total cost of implementation and operation to service providers.
    Nortel's Optical Metro 5000 platform is a market proven solution with more than 15,000 network elements deployed and more than 32,000 wavelengths lit worldwide. OME 6500 has been deployed in more than 30 networks around the world, including Telesur, Internet2, Jiangxi Power, and SURFnet.
    Tiscali first engaged Nortel in 1998 to deploy backbone optical networks across Italy to help reduce capital and operating costs. With this solution, Tiscali was able to guarantee reliability and performance of mission critical data and voice transport service.

    About Tiscali

    Tiscali S.p.A., (MIL:TIS)(Nouveau Marche, Paris:005773), is the European Internet Communication Company providing broadband and narrowband access for consumer and business applications as well as innovative communications services and contents. As of 31st December 2004, Tiscali had 7.4 million active users of whom 1.652 million were broadband customers, growing steadily.
    Tiscali's corporate website can be found at www.tiscali.com.

    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, 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 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 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 or early settlement, which is currently not available, 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; 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 Media Ben Roome, +44 1628 433113 email: benroome@nortel.com or Michele Prosperi, +39 06 51529407 email: prosperi@nortel.com or Image Building (for Tiscali) Simona Vecchies, +39 02-89011300 email: s.vecchies@imagebuilding.it or Tiscali S.p.A Analysts Luca Nonnis, +39 070 46011 email: nonnis@tiscali.com

KEYWORD: TEXAS ITALY INTERNATIONAL EUROPE INDUSTRY KEYWORD: TELECOMMUNICATIONS SOFTWARE NETWORKING HARDWARE COMPUTERS/ELECTRONICS PRODUCT MARKETING AGREEMENTS SOURCE: Nortel

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