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Emergia Selects Nortel Networks to Extend Optical Network Into Europe

MADRID, Spain - May 14, 2002 - Emergia Hispana S.A., part of the Telefonica Group, has selected Nortel Networks [NYSE/TSE: NT] to provide optical networking equipment and services. This will be the first optical networking project for Emergia in Europe, and will encompass extension of its U.S. and Latin American infrastructure into Europe. The first phase is expected to initially connect London, Lisbon and Madrid by June 2002.

Nortel Networks was previously selected by Emergia (December 1999) to build Latin America's first terabit optical network across that continent, and to connect Telefonica's networks in Latin America to the United States and the Caribbean. "We are very satisfied with the quality and service we continue to receive from Nortel Networks," said Jacinto Diaz, chief executive officer, Telefonica International Wholesale Services. "The completion and operational service of Emergia's Latin American ring has been a success, and we expect to continue with that success at the new expansion of our network in Europe."

Emergia's high capacity fiber optic ring, which provides broadband connectivity between Latin America, the United States and Europe, has been integrated into Telefonica International Wholesale Services, a business unit of Telefonica Group that provides wholesale communications services at a global level. Telefonica International Wholesale Services has an active presence in more than 250 cities in 20 countries; a network of more than 200,000 kilometers of fiber optics and 1,500 metropolitan rings; an international backbone; and more than 150 direct connections with international carriers. "Our next generation optical network equipment is redefining the economics of networking, driving substantial capital and operational expenditure savings for our customers," said Jordi Casamitjana, managing director, Iberia, Nortel Networks.

"Our leading DWDM transport solutions offer service providers like Emergia the lowest cost-per-connected bit, while significantly enhancing time-to-market," Casamitjana said. "We have been working with Telefonica for more than 10 years, supporting its efforts to provide the most effective services to its customers."

This new deal strengthens the relationship between Nortel Networks and the Telefonica group, not only in Spain, but also in Latin America and Europe.



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