Adelphia Selects Nortel Cable Voice over IP Solution; Cable Operator t

    Business Editors/Technology Writers

    TORONTO--(BUSINESS WIRE)--Feb. 23, 2005--Adelphia Communications Corporation (OTC:ADELQ), the fifth largest cable television corporation in the United States, has selected voice over IP (VoIP) solutions and Global Services from Nortel (NYSE:NT)(TSX:NT) to extend a suite of telephone services to residential customers in selected Adelphia markets.
    "Nortel's PacketCable voice over IP and professional services not only meet our requirements, but also have a proven track record and solid reputation in the industry for helping drive new revenue opportunities," said Marwan Fawaz, chief technology officer, Adelphia.
    "As the competition heats up to capture more subscribers and keep pace with new technologies, our cable customers like Adelphia continue to look at voice over IP technologies to give subscribers the best of the Internet with the best of today's telephone network," said Dan Mondor, general manager, Global Cable Solutions, Nortel. "Nortel has the experience and expertise to give Adelphia the carrier grade reliability expected, plus Global Services to help maximize network investment."
    Under an agreement announced today, Adelphia is deploying Nortel Communication Server (CS) 2000-Compact, a superclass softswitch that allows cable operators and service providers to deliver a full suite of traditional services to residential and business markets for strategic VoIP applications. Nortel's PacketCable-qualified softswitch is interoperable with a variety of industry-leading cable products and services and gives cable operators the opportunity to offer a wide range of services more efficiently and cost-effectively over the cable broadband network.
    CS 2000-Compact uses Session Initiation Protocol (SIP) to provide direct packet connectivity to other softswitches. SIP is an industry standard signaling protocol designed to manage voice and video sessions across a packet network. Using the SIP capabilities on the CS 2000-Compact will allow Adelphia to cost effectively connect to the Public Switched Telephone Network (PSTN).
    As part of this agreement, Adelphia is also using Nortel Global Services to plan, build, operate and maintain its VoIP network. Nortel is acting as the network integrator to bring together solutions from multiple vendors that will be critical to launching Adelphia's cable VoIP network, including the Cable Modem Termination System (CMTS), Multimedia Terminal Adaptor (MTA), flow through provisioning and interconnect components. Nortel will also operate and monitor the Adelphia VoIP network with on-site resources and act as the single point of contact for trouble resolution.
    Nortel continues to gain momentum in the cable telephony market with solutions designed to help cable operators drive new revenue opportunities and reduce operating costs. These comprehensive, integrated cable solutions span video and video on-demand transport, voice and multimedia communications, high-speed data services, managed network services for business customers, and next generation access.

    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 April 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. PacketCable is a trademark of Cable Television Laboratories, Inc.

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CONTACT: Nortel Christie Blake, 978-288-8439 christbl@nortel.com or Ann Fuller, 613-768-1208 afuller@nortel.com

KEYWORD: TEXAS INTERNATIONAL CANADA INDUSTRY KEYWORD: TELECOMMUNICATIONS NETWORKING INTERNET E-COMMERCE PRODUCT MARKETING AGREEMENTS SOURCE: Nortel

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