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Nortel, Symantec Working to Develop Next Generation Security

High-Performance Security Prototype to Address Threats Deep in the Network

CUPERTINO, Calif. – Dec. 7, 2004 - Nortel* (NYSE/TSX: NT) and Symantec (NASDAQ: SYMC) are combining their industry-leading expertise in high-performance networks and information security to establish a strategic relationship intended to provide next generation solutions for seamless defense against a wide variety of threats from the core of the network through the desktop. Through this relationship, Symantec and Nortel want to make it possible for service providers and enterprises to eliminate specific threats before they have the opportunity to spread.

As the first initiative in this relationship, the companies have combined the power of Nortel’s hardware-accelerated deep-packet inspection with Symantec’s expertise in countering global threats to develop aprototype of a high-performance security engine that can be deployed within the existing switched-network infrastructure. When deployed in a data center, the technology is expected to address the most dangerous attacks within the high-speed, switched network before they can reach the servers. Based on Nortel’s industry-leading application switch portfolio, the prototype tracks and stops threats using signatures updated in near real-time by Symantec’s LiveUpdate technology.

“Service providers are positioned to be the first line of defense against many of today’s threats to critical communications around the world. We are working with Symantec to provide purpose-built solutions for the service provider and enterprise space,” said Bill Owens, president and chief executive officer, Nortel. “Nortel’s leadership in delivering secure, reliable, high-performance networks and Symantec’s leading position in Internet security are an ideal strategic combination for delivering on the industry’s need for ironclad, secure communications, anywhere, anytime on any device.”

With the growing frequency and complexity of today’s threats, an added layer of protection at the network level, enabling a more proactive approach to protection, is a critical complement to the defenses already deployed throughout an enterprise. For example, Symantec documented more than 4.5 times the number of new viruses and worms in the first six months of 2004 compared to 2003. And during the first three minutes of the Slammer worm’s spread, the number of infected machines doubled roughly every 8.5 seconds. This is more than 250 times faster than Code Red, which hit in mid-2001 and had a doubling time of 37 minutes.

“Embedding security at the network level complements a broader defense-in-depth strategy critical to protect against today’s threats,” said John W. Thompson, chairman and chief executive officer, Symantec. “Nortel’s incumbent position with carriers globally as well as the company’s experience across all network types – wireless, wireline, cable and enterprise – combined with Symantec’s unparalleled expertise dedicated to addressing the dynamic threat environment are ideal complements unmatched in the industry.”

The two companies have identified synergies among their respective offerings, including hosted and ‘do-ityourself’ security applications, client compliancy solutions, and traditional security products and services such as antivirus and firewall solutions. This new relationship between Nortel and Symantec is spelled out in a Memorandum of Understanding signed by both companies. Development and delivery of specific products and services resulting from this relationship are subject to execution of a binding agreement between both companies.

About Symantec
Symantec is the world leader in providing solutions to help individuals and enterprises assure the security, availability, and integrity of their information. Headquartered in Cupertino, Calif., Symantec has operations in more than 40 countries. More information is available at

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 For the latest Nortel news, visit

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 Nortel’s independent review and planned restatement or revisions of its previously announced or filed financial results; the resolution of the accounting issues announced on November 11, 2004, including the outcome of discussions with the United States Securities and Exchange Commission (SEC); the impact of the management changes announced on April 28, 2004 and August 19, 2004; the impact of the inability to meet Nortel’s filing obligations on support facilities and public debt obligations; any potential delisting or suspension of the Company’s or NNL’s securities; the adverse resolution of litigation, investigations, intellectual property disputes and similar matters; 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; the communication by Nortel’s auditors of the existence of material weaknesses in internal controls; Nortel’s ability to recruit and retain qualified employees; fluctuations in Nortel’s cash flow, level of outstanding debt and current debt ratings; 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 flows; 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 of Nortel’s 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 Form 10-Q/A and Form 10-K/A 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.

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