Nortel to Invest US$1.9B in Optical Business

BOSTON (07/24/2000) - Nortel Networks Corp. will invest US$1.9 billion to more than double production capacity for its optical components and optical Internet systems production business, the company announced Monday.

Nortel will spend $1.2 billion over the next 18 months to more than triple production capacity of its open standards-based optical components in North America, the U.K. and Australia. Some $700 million of that amount will be used to more than double optical Internet systems production capacity, Nortel said in a written statement.

The investment will create 9,600 jobs in North America, the U.K. and Australia, Nortel said. Nortel employs about 70,000 worldwide.

Nortel estimates that its pro forma earnings for its global optical components business will reach $2.5 billion in 2000, an increase of 200 percent from 1999 earnings.

Nortel, in Brampton, Ontario, can be reached at +1-905-238-7000, or via the Web at http://www.nortelnetworks.com/.

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