TORONTO, ONTARIO – Nov 19, 2008 –  Nortel(1) (TSX:NT)(NYSE:NT) is helping operators support the high-bandwidth needs of today's hyperconnected businesses by becoming a one stop shop for Ethernet VPN (E-VPN) solutions. These solutions, which include customer premises equipment from ANDA Networks,(2) provide businesses with a single, secure high-speed network that supports all their communication needs from everyday phone and Internet use to advanced services like telepresence.

Nortel has expanded its relationship with ANDA Networks, a leading supplier of carrier-class Ethernet equipment, to integrate intelligent network termination equipment into Nortel's Metro Ethernet Networks portfolio. This will allow Nortel to provide an end-to-end solution that makes it simple for service providers to offer efficient and cost-effective hosted E-VPN services to businesses. With a highly reliable and easy to operate end-to-end Carrier Ethernet service offering from Nortel, operators can simplify operations and increase revenues by delivering a wide array of Ethernet services more cost-effectively.

With its strengthened E-VPN solutions, Nortel ensures businesses have global yet affordable access through their service provider for secure, high-capacity networking that can be relied upon on to support today's bandwidth-intensive communications like video-streaming and storage extension. Their networks must also meet the demands of hyperconnected workers who expect high quality service across the corporate network to support critical online functions like real-time multimedia communications and secure business transactions.

"By simplifying network operations and increasing capacity with E-VPN services, Nortel is positioning service providers to take better advantage of Hyperconnectivity, a global megatrend where everything that can be connected to the network, will be connected," said Philippe Morin, president of Metro Ethernet Networks, Nortel. "Nortel's end-to-end Metro Ethernet solution enables service providers to meet the growing demands for bandwidth coming from business users. Our expanded relationship with ANDA Networks enables us to include an additional Ethernet access customer location equipment option with carrier-class quality of service and rich OAM features as a part of our end-to-end solution."

"Business spending on Ethernet services is projected to generate US$17 billion in revenue during 2008 for service providers globally - an astonishing amount of revenue and growth for a market that was less than US$2.5 billion in 2004, and one which will eclipse the IP MPLS VPN services market in size this year," said Michael Howard, principal analyst and co-founder, Infonetics Research. "Ethernet is becoming the technology of choice for businesses that need to increase their network speed and capacity while keeping an eye on the bottom line. With their combined product sets, the collaboration between Nortel and ANDA will serve this growing market."

Nortel's Metro Ethernet solutions now include ANDA's EtherReach(2) portfolio which provides an extension of E-VPN services over fiber and copper-based networks to help service providers ensure maximum reach to all customer locations over any type of network infrastructure. The ANDA products can be bundled with Nortel's Carrier Ethernet portfolio - which has over 100 customers globally. They can also be bundled with Nortel's Optical Ethernet portfolio which features the Optical Multiservice Edge (OME) - which has over ten thousand units deployed. The combination of Nortel and ANDA products will provide carriers with a complete solution that can be managed remotely and controlled via an integrated Nortel network and service management system on an end-to-end basis.

"ANDA Networks is pleased to extend our collaboration and partnership with Nortel, which began in 2007, to address the growing market for business Ethernet services," said Charles Kenmore, CEO, ANDA. "The relationship between Nortel and ANDA began at the request of several mutual Tier 1 carrier customers and continues to be customer focused. Now, both companies are taking the collaboration to the next level with a complete end-to-end managed Ethernet solution offering service providers an accelerated path to deliver 'Carrier Ethernet 2.0'-based managed services over their entire network."Nortel is a pioneer in Carrier Ethernet and has been an industry leader in the development of innovations for delivering predictable and reliable Ethernet services, using technologies such as PBB, PBT, PLSB, and Ethernet OAM. To help accelerate the adoption of Carrier Ethernet within the industry, Nortel formed the Carrier Ethernet Ecosystem in 2007, with now boasts over 25 members, including ANDA. ANDA brings strength in PBT, Ethernet OAM, and industry leadership in the Ethernet access space to the ecosystem.

About ANDA Networks

ANDA Networks, Inc., headquartered in Sunnyvale, CA, provides carrier-class Ethernet platforms delivering cost-effective Metro Ethernet services over fiber, copper and wireless access networks worldwide. Over 15,000 platforms deployed on tier-one carriers' networks globally, ANDA's Metro Ethernet Forum (MEF) certified access products allow carriers to solve bandwidth and functionality limits, effectively facilitating migration to next-generation network services. The ANDA EtherTone® family of products enable carriers to deliver Ethernet private lines, converged VoIP, and circuit-to-packet managed services by leveraging highly economical Ethernet technology. For more information, please visit http://www.andanetworks.com (2) .

About Nortel

Nortel is a recognized leader in delivering communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate today's barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.

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