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New Price, Added Gigabit Support Deliver Unmatched
Performance and Value for Small/Medium Businesses

February 4, 1999

Bay Networks*, a Nortel Networks'* [NYSE: NT/TSE: NTL] line
of business, today announced an aggressive price on its new
BayStack* 350-24T Switch, providing small/medium businesses
the most affordable, high-performance autosense Ethernet
switch available today. The recently introduced BayStack
350-24T Switch, now priced at £1,663 (£69 per port, US
suggested retail), supports 10/100 autosense and high-speed
uplinks including Gigabit Ethernet and ATM. Unlike other
switches in its class, the BayStack 350-24T Switch also
includes advanced software features like, MultiLink
Trunking, 802.1Q VLAN Trunking and 802.1p Priority Queuing
at no extra charge. This level of performance and resiliency
are critical to building infrastructures that are capable of
supporting both telephony and data applications - something
Nortel Networks calls Unified Networks* solutions. "We've
given small/medium business customers an affordable way to
boost the performance of their shared-media networks that's
flexible enough to support their needs in the future," said
Jim Vogt, vice president and general manager of Nortel
Networks' Workgroup Business Division. " 'Think big, start
small' - we've been saying that for years. The new BayStack
350 Switches are proof that BayStack is still the best brand
of networking equipment for growing businesses. "What we
have heard from small/medium business owners is that they
usually have the same networking issues as larger
enterprises, just on a smaller scale. Nortel Networks is
taking its large enterprise expertise and applying it to the
specific business needs of this growing market." -- more --
The BayStack 350 Switches are designed to satisfy the needs
of small/medium businesses as part of a comprehensive
business philosophy of Nortel Networks: to provide Unified
Networks solutions, creating greater value for customers
worldwide by delivering integrated network solutions
spanning data and telephony. BayStack 350 Switches are part
of the BayStack family of high-performance networking
equipment for growing businesses, including hubs, routers,
IP appliances, and other switches like the new BayStack 450
Switches. Unlike BayStack 350 Switches, the BayStack 450
Switches are designed to "stack" together in a unique
fail-safe cascade design, to support high-density
desktop-switching connections of up to 224 users in one
managed device. Nortel Networks delivers value to customers
around the world through Unified Networks solutions,
spanning mission-critical telephony and IP-optimized
networks. Customers include public and private enterprises
and institutions; Internet service providers; local,
long-distance, cellular and PCS communications companies,
cable television carriers, and utilities. Nortel Networks'
common shares are listed on the New York, Toronto, Montreal,
Vancouver, and London stock exchanges. Nortel Networks had
1998 revenues of US$17.6 billion and has approximately
75,000 employees worldwide. - end - * Nortel Networks,
Unified Networks, the Nortel globemark and How the world
shares ideas are trademarks of Northern Telecom Limited. *
BayStack and Bay Networks are trademarks of Bay Networks,

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