-NORTEL: Bay Networks, a Nortel Networks Business Unit introduces ExtraNet Profits program.

M2 PRESSWIRE-1 October 1998-NORTEL: Bay Networks, a Nortel Networks Business Unit introduces ExtraNet Profits program (C)1994-98 M2 COMMUNICATIONS LTD

RDATE:300998

Reinforcing its leadership role in the Extranet and VPN market, Bay Networks, a Nortel Networks [NYSE: NT/TSE: NTL] business unit, today introduced its ExtraNet Profits program. This program will enable business-class Internet Service Providers (ISPs) to rapidly capitalize on the growing market demand from carrier-managed VPNs.

As ISPs seek to maximize their return on investments and provide competitive differentiating services, Bay Networks ExtraNet Profits program offers service providers the tools and operational support necessary to enhance their business model with high margin value-added services to attract new and retain existing customers.

Through these value-added VPN services, end-user customers can more easily implement Extranets and VPNs to improve business processes, and increase profits. For example, a VPN enables a corporation to communicate more efficiently with customers, suppliers, and other partners by providing easier access to corporate resources via the Internet. Extranets also allow organizations to save about $1,000 per remote user per year over traditional remote access solutions.

Bay Networks comprehensive ExtraNet Profits program enables ISPs to resell the award-winning Contivity Extranet Switch product line. In addition, Bay Networks will work with the ISPs on market development and lead generation activities, operational support, and sales, systems engineering and support training.

"We have developed this program to offer a clearly defined strategy that assists service providers in rapidly deploying and capitalizing on the emerging Extranet market," said Michael Feinstein, vice president of market development within Nortel Networks. "By teaming Bay Networks technology strengths, operations support and training with a carriers' brand development and marketing strategy, we are lowering both the technological and financial risks involved with entering this rapidly expanding market."

The ExtraNet Profits program has already attracted some of the world's leading ISPs including OzEmail, Australia's largest ISP; Chung-Hwa Telecom Co., owner of Hinet, the largest ISP in Hong Kong; and Eclipse Internet Access, serving New Jersey and New York with affordable personal and business access to Email, WWW, FTP, Newsgroups, and more.

Bay Networks selected service offerings within the ExtraNet Profits program include:

Market Development and Lead Generation

The ExtraNet Profits program delivers the tools necessary to effectively generate sales leads for the service providers' Managed VPN service offerings. Bay Networks will share the costs related to direct mail campaigns, Web-based seminars, and service provider-branded collateral, to allow service providers to quickly create demand and begin selling its VPN services to customers.

Participants in the program must commit to a minimum order of Contivity Extranet Switch products. Bay Networks will then supplement these orders with a free Contivity Extranet Switch 1000 for Web hosting or other internal applications.

Operations Support

Operational support is a necessity for service providers ramping up their own internal infrastructure to manage these new VPN services for customers. To ease the initial deployment of the Contivity Extranet Switch products, Bay Networks will provide a series of support programs to ISPs. These include 90-day support @ Service Link; 90-day free telephone help desk and technical support; and two assisted installations free of charge to provide the necessary educational support to a service provider's staff.

Training

Sales and pre-sales system engineering training is offered free at all provider sites for ISPs taking advantage of the ExtraNet Profits program. Provider education also includes operations and Extranet Switch maintenance training.

"This program sets the stage for service providers to effectively roll out managed services," said Feinstein. "We will use the ExtraNet Profits program as a framework for offering future services that give carriers a required competitive advantage."

About Bay Networks Contivity Extranet Switch Product Family

Bay Networks Contivity Extranet Switch product family enables partners and employees to build Extranet/Virtual Private Networks (VPNs) for private communication, commerce, and collaboration. Bay Networks Contivity Extranet Switch product family includes the Contivity Extranet Switch 4000, 2000, and 1000, each combining market-leading functionality such as support for standard tunneling, authentication, directory, accounting and connectivity protocols, in a single, integrated hardware architecture.

Nortel Networks works with customers worldwide to design, build, and deliver telecommunications 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 had 1997 revenues of US$15.5 billion and Bay Networks, a wholly owned subsidiary of Nortel, had revenues of US$2.4 billion during its most recent fiscal year. The combined company's workforce totals approximately 80,000 employees worldwide.

CONTACT: Jeff Young, Nortel Networks - Bay Networks Tel: +1 978 916-4986 e-mail: jyoung@baynetworks.com

*M2 COMMUNICATIONS DISCLAIMS ALL LIABILITY FOR INFORMATION PROVIDED WITHIN M2 PRESSWIRE. DATA SUPPLIED BY NAMED PARTY/PARTIES.*