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Macmahon Selects Nortel Solution for High-Speed, Broadband Employee Services

Announcement posted by Nortel 15 Sep 2005

To maximise productivity and efficiencies our staff needs access to the groups vast information resources quickly and securely from the many remote mining locations we operate in, said Jason Cowie, Macmahon Chief Information Officer. Nortel met each of our requirements for a highly secure, high-bandwidth infrastructure that integrates seamlessly with our broader communications environment.
Founded in Adelaide in 1963 and now based in Perth, Macmahon incorporates civil engineering, open cut mining, underground mining and Allplant services for some of the regions largest mining and construction companies. Macmahon has annual revenues of more than $600 million. The company is also trialing IP Telephony communications at its corporate head offices.
Nortels solution comprises a high-availability, core network solution using the Ethernet Routing Switch (ERS) 5530 which connects Macmahons two primary, metropolitan area sites with 10 Gigabit Ethernet. On the edge of the head office network is Nortels ERS 5520, a Power over Ethernet routing switch. Layer 2 ERS 3510 Gigabit switches will be deployed at remote sites.
The platform provides Macmahon 10/100/1000 (Gigabit) equipment that supports the foundations of our core Global-One network infrastructure, which includes our head offices and disaster recovery centre. The same platform is now being extended to all site operations throughout Asia Pacific, said Cowie.
The Macmahon team will manage the entire switch network using Nortels Optivity Switch Manager and Optivity Policy Manager from its head office.
The Nortel solution was successfully integrated and supported by data networking and process control specialists Applicon, a Nortel nPower partner and Western Australia-based service provider.
In the contracting industry, like so many other industries that rely on wide area communications, resilience, reliability and security are key to powerful communications, said Mark Stevens, president, Australia and New Zealand, Nortel. Nortel solutions deliver all three with high level performance to ensure market leaders like Macmahon have services that meet their specialised requirements.
Nortel's Ethernet Switching portfolio is purposely designed for mission-critical environments, and includes a number of products designed to create and extend high-speed networks for medium-to-large corporations with hundreds of users across vast geographic areas. Resilient switch clustering technology combined with inherent security allows Nortel's simple network architecture to lower total cost of ownership in deployment and on-going operations, while laying the foundations for cost-effectively migrating to 10G technology in the future.
The Macmahon agreement extends Nortels continued success with high-speed, high-availability, end-to-end, convergence solutions in Australia, most recently at Australias Department of Defence, James Cook University and Peter MacCallum Cancer Centre.
About Nortel
Nortel is a recognised leader in delivering communications capabilities that enhance the human experience, ignite and power global commerce, and secure and protect the worlds 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 worlds 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 Nortels restatements and the impact any resulting legal judgments, settlements, penalties and expenses could have on Nortels results of operations, financial condition and liquidity, and any related potential dilution of Nortels common shares; the findings of Nortels 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 Nortels previously announced or filed financial results and resulting negative publicity; the existence of material weaknesses in Nortels internal control over financial reporting and the conclusion of Nortels management and independent auditor that Nortels internal control over financial reporting is ineffective, which could continue to impact Nortels ability to report its results of operations and financial condition accurately and in a timely manner; the impact of Nortels and NNLs failure to timely file their financial statements and related periodic reports, including Nortels 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 Nortels and NNLs public filings; the impact of management changes, including the termination for cause of Nortels former CEO, CFO and Controller in April 2004; the sufficiency of Nortels 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 Nortels customers; increased consolidation among Nortels customers and the loss of customers in certain markets; fluctuations in Nortels operating results and general industry, economic and market conditions and growth rates; fluctuations in Nortels cash flow, level of outstanding debt and current debt ratings; Nortels monitoring of the capital markets for opportunities to improve its capital structure and financial flexibility; Nortels ability to recruit and retain qualified employees; the use of cash collateral to support Nortels normal course business activities; the dependence on Nortels subsidiaries for funding; the impact of Nortels defined benefit plans and deferred tax assets on results of operations and Nortels cash flow; the adverse resolution of class actions, litigation in the ordinary course of business, intellectual property disputes and similar matters; Nortels dependence on new product development and its ability to predict market demand for particular products; Nortels 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 Nortels customers and the impact of customer financing and commitments; stock market volatility generally and as a result of acceleration of the settlement date of Nortels forward purchase contracts; negative developments associated with Nortels 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 Nortels 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 Nortels 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.
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