Callahan Associates selects Nortel Networks to upgrade German cable network

Sept. 18, 2001

Sept. 18, 2001--Callahan Associates has selected a consortium led by Nortel Networks for an upgrade of its cable network in Baden-Württemberg to enable delivery of a wide range of advanced communications services for both business and residential subscribers.

Callahan Associates has selected a consortium led by Nortel Networks (NYSE/TSE: NT) for an upgrade of its cable network in Baden-Württemberg to enable delivery of a wide range of advanced communications services for both business and residential subscribers beginning in summer 2002.

This is important move for Nortel Networks in Germany, following selection earlier this year by Callahan-subsidiary Kabel NRW of a Nortel Networks-led consortium to upgrade its cable network in the German Federal State North-Rhine-Westphalia. With deployment of this network already underway, Nortel Networks expects to be the first supplier to deliver a complete cable upgrade solution -- including Voice over IP (VoIP) -- for the European market.

Callahan's two network upgrades will lay the groundwork for transition from traditional cable TV to next generation cable network services in Germany. The consortium will supply infrastructure to enable high-speed Internet access, high-performance video, Internet Protocol (IP) services, data transmission, voice telephony, digital TV programming, and interactive TV for residential customers and businesses.

The Baden-Württemberg cable network is expected to be based on various IP and optical components from Nortel Networks, including Passport 8600, Succession Communications Server 2000, Passport Packet Voice Gateway, OPTera Metro 5200, OPTera Long Haul, and Preside for Telephony.

About Nortel Networks:

Nortel Networks is a provider of networking and communications solutions and infrastructure for service providers and corporations. For more information, visit www.nortelnetworks.com.