March 16, 1999

BOSTON -- Nortel Networks* [NYSE: NT/TSE: NTL] today announced the availability of the industry's first source code for Constraint-based Routing using Label Distribution Protocol (CR-LDP). To promote open standards and support vendor independent networking, Nortel Networks will make the source code for the CR-LDP message processing engine available at no charge based on a no-fee license agreement for all networking companies to implement on their own equipment.

Traffic engineering through CR-LDP is a key component of the Multi Protocol Label Switching (MPLS) standard that is being developed under the MPLS working group in the Internet Engineering Task Force (IETF). Nortel Networks, Ericsson, and General DataComm successfully demonstrated MPLS traffic engineering using CR-LDP last December in an interworking demonstration. By providing a no-fee license agreement for the CR-LDP message processing engine to all networking vendors, Nortel Networks is making a significant contribution to the development of the MPLS standard and to the interoperability of a multivendor environment.

Constraint-based Routing using Label Distribution Protocol provides the signaling mechanism for path setup, teardown, and maintenance in traffic engineering of service provider backbone networks. CR-LDP is a robust signaling system which offers the high levels of scalability, reliability, and implementation simplicity demanded from carrier grade network solutions. Furthermore, as it will be totally open for vendor implementation, it delivers the interoperability critical for deployment in today's "best of breed" multi vendor carrier environments.

"It is very important for service providers to have equipment from different vendors work together seamlessly in their networks," said Jean Claude Geha, director of product marketing at AGIS, a service provider that is working with Nortel Networks to implement MPLS in its network. "AGIS is pleased to be the lead customer for MPLS on Nortel Networks' products. We support their commitment to taking a leadership role in this area."

Juha Heinanen, director of technology for Telia Finland and an active member of various IETF working groups, agrees with the importance of this initiative. "Nortel Networks' decision to make the LDP and CR-LDP source code publicly available is a welcome boost to the IETF's effort in developing a vendor independent label switching protocol. It sets a good example for the development of other standards in the IETF and elsewhere," said Heinanen.

"Nortel Networks is committed to open-standard, vendor independent networking because it is what our customers want, and because it promotes knowledge sharing and innovation which fuels the growth of our industry," said Robert Pfeffer, chief technology officer, Carrier Packet Solutions, Nortel Networks. "We are making this software available to accelerate the industry development and adoption of MPLS which is required to make IP networking meet the needs of our Service Provider customers."

About MPLS and CR-LDP
The Multi Protocol Label Switching (MPLS) approach proposed by the IETF is a networking technology aimed at delivering the traffic engineering capability and Quality of Service (QoS) performance for backbone networks. MPLS can deliver control and performance to the routed IP data packets through label switched paths (LSPs), in particular, with the use of explicitly routed LSPs (ERLSPs). To implement the ERLSPs, two different protocols have come out of the IETF MPLS working group, namely the Constraint-based Routing using Label Distribution Protocol (CR-LDP) and the Resource ReSerVation Protocol (RSVP).

The CR-LDP signaling uses the LDP protocol, and provides ERLSP setup with resource reservation in a simple hard state control and messaging manner, similar to the proven signaling technology used in carrier's connection oriented networks. For the CR-LDP standard draft entitled "Constraint-based LSP Setup using LDP" check out the IETF website at http://www.ietf.org/internet-drafts/draft-ietf-mpls-cr-ldp-01.txt

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.

* Nortel Networks, the Nortel Networks Globemark, Unified Networks and How the world shares ideas are trademarks of Northern Telecom Limited

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