[CAnet - news] Integrated data encryption for high speed optical networks

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http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100188669&locale=
en-US

 Nortel Demonstrates World's First Integrated Data Encryption for 10 Gbps
Networks

SEPTEMBER 28, 2005

SAN DIEGO - Nortel* [NYSE/TSX: NT], in collaboration with global research
institutions, has demonstrated the world's first successful prototype of an
optical switch with integrated encryption, securing information from
intrusion and theft as it is transmitted at the speed of light among users
around the world.

Nortel is the first to achieve integrated data encryption for 10 Gbps
optical networks using the Advanced Encryption Standard (AES) approved by
the U.S. National Security Agency to ensure that the highest levels of
security are met for confidential and sensitive communications. Institutions
collaborating on the demonstration with Nortel included CANARIE, the
International Center for Advanced Internet Research at Northwestern
University, SURFnet, the University of Amsterdam, and the University of
Illinois at Chicago.

"Security has become one of the world's greatest challenges in the new
information age, and the advanced technology Nortel is demonstrating has the
potential to revolutionize the way networks are secured," said Brian
McFadden, chief research officer, Nortel. "Providing a global-scale approach
to security that is transparent to users has the potential to make the
integration of encryption security a standard component of tomorrow's
transport networks."

The ability to use real-time encryption to secure the transport of large
amounts of time sensitive information has applications in many industries,
providing the potential to fuel growth of optical networks. Potential
applications include media distribution in the entertainment industry,
global scientific collaboration using grid computing by the research
community, and real-time data back-up for the financial industry. The U.S.
National Security Agency has already approved AES for the transport of all
'Top Secret' information.

"As sensitive information and intellectual property become more distributed
across multiple networks through VPNs and applications like grid computing,
concerns arise about ensuring security across these networks," said Tom
DeFanti, professor of Computer Science and director of Electronic
Visualization Laboratory (EVL) at the University of Illinois at Chicago, and
research scientist and director of visualization, California Institute for
Telecommunications and Information Technology (Calit2) at the University of
California, San Diego. "The security of the network is critical, and the
encryption technology that Nortel is demonstrating today can provide a
significant step in this direction."

Nortel is demonstrating its integrated encryption technology for super-fast
optical networks this week at iGrid** in San Diego, an event showcasing
ongoing global collaborations in grid computing. The demonstration transmits
real-time encrypted data from an electronic visualization application over a
10 Gbps SONET network that spans thousands of fiber miles. Application data
is encrypted from source locations in Amsterdam, Chicago, and Ottawa and
transported to the iGrid show floor in San Diego where the data is viewed
and manipulated on an integrated 55 screen, 100 million pixel video display.

To enable this proof of concept demonstration, hardware capable of 256-bit
AES encryption at 10 Gbps line speeds has been integrated into a standard
Nortel Optical Multiservice Edge (OME) 6500 switch. By encrypting the
application data payload before packaging it into a SONET envelope for
transport, the encrypted traffic can travel across today's standards-based
SONET networks to be decrypted on the other side. This integration of
encryption functionality into the optical switch enables reduced network
complexity, lower operational expenses through reduced power and space
requirements, and higher network reliability through the inherent
carrier-grade attributes of the optical switch.

The live demonstration uses an electronic visualization application provided
by the University of Illinois at Chicago.** Network connectivity for the
demonstration is being provided by CANARIE** and SURFnet** through
international peering points on Northwestern's** Chicago campus (StarLight)
and in Amsterdam (NetherLight). Facilities participating in the
demonstration include the University of Illinois at Chicago, the University
of Amsterdam**, the Calit2** facility at the University of California, San
Diego**, and the Nortel research and development lab in Ottawa.

About the Advanced Encryption Standard

The Advanced Encryption Standard is a globally-accepted standard for
encryption adopted by the U.S. National Institute of Standards and
Technologies (NIST) as an improvement and replacement for its predecessor,
the Data Encryption Standard (DES). AES has also been approved by the U.S.
National Security Agency as strong enough to protect 'Top Secret'
information for the U.S. government.

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 www.nortel.com.
For the latest Nortel news, visit www.nortel.com/news.

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 regulatory and
criminal investigations and civil litigation actions related to Nortel's
restatements and the impact any resulting legal judgments, settlements,
penalties and expenses could have on Nortel's results of operations,
financial condition and liquidity, and any related potential dilution of
Nortel's common shares; the findings of Nortel's independent review and
implementation of recommended remedial measures; the outcome of the
independent review with respect to revenues for specific identified
transactions, which review will have a particular emphasis on the underlying
conduct that led to the initial recognition of these revenues; the
restatement or revisions of Nortel's previously announced or filed financial
results and resulting negative publicity; the existence of material
weaknesses in Nortel's internal control over financial reporting and the
conclusion of Nortel's management and independent auditor that Nortel's
internal control over financial reporting is ineffective, which could
continue to impact Nortel's ability to report its results of operations and
financial condition accurately and in a timely manner; the impact of
Nortel's and NNL's failure to timely file their financial statements and
related periodic reports, including Nortel's inability to access its shelf
registration statement filed with the United States Securities and Exchange
Commission (SEC); ongoing SEC reviews, which may result in changes to
Nortel's and NNL's public filings; the impact of management changes,
including the termination for cause of Nortel's former CEO, CFO and
Controller in April 2004; the sufficiency of Nortel's restructuring
activities, including the work plan announced on August 19, 2004 as updated
on September 30, 2004 and December 14, 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; increased consolidation among Nortel's
customers and the loss of customers in certain markets; fluctuations in
Nortel's operating results and general industry, economic and market
conditions and growth rates; fluctuations in Nortel's cash flow, level of
outstanding debt and current debt ratings; Nortel's monitoring of the
capital markets for opportunities to improve its capital structure and
financial flexibility; Nortel's ability to recruit and retain qualified
employees; 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 flow; the adverse resolution of
class actions, litigation in the ordinary course of business, intellectual
property disputes and similar matters; 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 and
consolidation 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 of Nortel's
forward purchase contracts; negative developments associated with Nortel's
supply contracts and contract manufacturing agreements, including as a
result of using a sole supplier for a key component of certain optical
networks solutions; 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; any
undetected product defects, errors or failures; 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 Annual Report on
Form 10-K and Quarterly Report on Form 10-Q 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.

**This is a 3rd party link as described in our Web linking practices. 



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These news items and comments are mine alone and do not necessarily reflect
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