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May 7, 2003
Guangdong (H.K.) Tours Deploys Virtual Private Network Solution from Nortel Networks
Credits Contivity with Helping to Improve Sales, Security, Productivity, Customer Service
HONG KONG – Guangdong (H.K.) Tours Company Limited, a leading Hong Kong travel agency, has deployed a next generation Contivity* Secure IP (Internet Protocol) Services Gateways VPN (virtual private network) solution from Nortel Networks* [NYSE/TSX: NT] in conjunction with Pacific Datacom (Hong Kong) Limited, a Nortel Networks nPower ‘channel partner.’
This Contivity VPN solution, which switches data traffic across a 10-branch, Hong Kong-wide local area network (LAN), has helped position Guangdong (H.K.) Tours to drive increased sales – as much as 30 percent by its own estimates – by leveraging the popularity of low-cost, high-speed broadband services from telecom service providers. In addition, Contivity VPN has also helped Guangdong (H.K.) Tours to enhance the security of its communications across the public network, and to drive improved customer service and employee productivity. Guangdong (H.K.) Tours now maintains all ticket and travel package information centrally, enabling branches to retrieve ‘up-to-the-minute’ customer at any time. In busy Hong Kong, this secure, high-speed access to customer information is particularly valuable during peak travel seasons. “Contivity VPN is delivering major cost efficiencies to Guangdong (H.K.) Tours,” said Stephen Tsui, vice president and managing director, Hong Kong Nortel Networks. “By eliminating costly inter-office leased lines running frame relay, Contivity delivers a lower cost-per-megabit, and its remote network management capability eliminates the need for personnel to visit branches for network administration or upgrades.” Contivity VPN has also positioned Guangdong (H.K.) Tours, in cooperation with alliance travel agencies, to move forward with future plans to implement a large-scale online network focused on Internet-based ticket and package tour sales. Nortel Networks Contivity VPN solution for Guangdong (H.K.) Tours includes two components of the next generation Contivity Secure IP Services Gateways family – Contivity 4600 for headquarters deployment and Contivity 1010 for branch offices. With a comprehensive set of software-based IP services, including IP routing, VPN, firewall, encryption, authentication, policy services, QoS (Quality of Service) and bandwidth management, Contivity allows enterprises to easily deploy needed services today with flexibility to add new ones in the future. In January 2003, Nortel Networks Contivity 4600 won the prestigious “Product of the Year” award from Network Computing Asia, the region’s leading magazine for network planners and decision makers. In 2002, Contivity received “Security Product of the Year” and “Editor’s Choice” awards from Network Computing, and was named an “Information Security Excellence” award winner in the VPN category by Information Security magazine. Serving over one million travelers annually, Guangdong (H.K.) Tours’ business includes in-bound and out-bound tours, travel tickets, hotel booking, travel packages, and coach bus rentals. Guangdong (H.K.) Tours was the first travel agency in Hong Kong awarded ISO-9001 quality certification. More information about Guangdong (H.K.) Tours can be found at www.gdtours.com.** Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The Company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Wireless Networks, Wireline Networks, Enterprise Networks, and Optical Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at www.nortelnetworks.com. 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 severity and duration of the industry adjustment; the sufficiency of our restructuring activities, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; fluctuations in operating results and general industry, economic and market conditions and growth rates; the ability to recruit and retain qualified employees; fluctuations in cash flow, the level of outstanding debt and debt ratings; the ability to meet financial covenants contained in our credit agreements; the ability to make acquisitions and/or 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; 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; the dependence on new product development; the uncertainties of the Internet; the impact of the credit risks of our customers and the impact of customer financing and commitments; stock market volatility; the entrance into an increased number of supply and outsourcing contracts which contain delivery and installation provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; the future success of our strategic alliances; and the adverse resolution of litigation. For additional information with respect to certain of these and other factors, see the reports filed by Nortel Networks with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel Networks 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 Networks, the Nortel Networks logo, the Globemark and Contivity are trademarks of Nortel Networks. **This is a 3rd party link as described in our Web linking practices. Contact for Press and Analysts:Lily Yu
Nortel Networks
852-2100-2120
lilyu@nortel.com
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