Nortel Networks Expands 1-Meg Modem CPE Portfolio

Full Line of 1-Meg Modem Products Unveiled

Oct 21, 1998, 01:00 ET from Northern Telecom Limited

    RESEARCH TRIANGLE PARK, NC, Oct. 21 /PRNewswire/ - Nortel Networks (NYSE:  
 NT/TSE: NTL) today announced its plans to expand the 1-Meg Modem (one megabit
 per second) customer premise equipment (CPE) portfolio to include solutions
 for multi-user businesses, home offices, telecommuters and consumers who
 require high-speed access to the Internet or corporate/campus LANs. The
 expanded portfolio including products from Cayman Systems and Diamond
 Multimedia will allow service providers to meet the CPE requirements of each
 market segment and open distribution channels most convenient to each segment.
     In an agreement unveiled today with Cayman Systems, Nortel Networks will
 resell Cayman's 2E 500 series of Ethernet-Ethernet routers. These routers in
 combination with the Nortel Networks-manufactured external 1-Meg Modem can be
 used to extend a single 1-Meg Modem connection to multiple PCs. This solution
 is targeted for multiple users in a small LAN environment such as a small
 office, home office or university dorm.
     The Zero-Configuration Cayman 2E 500 and 2E 500H dual-Ethernet Internet
 access routers give service providers a simple and cost-effective way to
 provide shared LAN access to a single 1-Meg Modem. The Ethernet interfaces of
 the 2E 500 offer a plug and play solution to high-speed network access for
 existing LANs, and the integrated Ethernet hub of the 2E 500H eases connection
 of multiple computers in non-networked workgroups. Standards-based networking
 supports PC, Macintosh, UNIX, and other operating systems. Cayman routers will
 be available through Nortel Networks in November 1998.
     ``Small offices and home offices will appreciate the ease with which they
 can setup and use the 1-Meg Modem with the Zero-Configuration routing
 technology of Cayman's 2E 500,'' said Heidi Clark, president and Chief
 Executive Officer of Cayman Systems. ``We also believe that ease of product
 deployment and availability to consumers will drive DSL acceptance by the
 consumer market.''
     As previously announced, Diamond Multimedia's SupraSonic 1-Meg Modem
 addresses single user or power user applications with a PCI network interface
 card. This internal solution combines the functionality of a modem and an
 Ethernet card for extremely fast Internet access. The SupraSonic 1-Meg Modem
 brings the benefits of 1-Meg Modem into the PC with an industry-standard PCI
 interface and software support for Microsoft Windows 95, Windows 98, and
 Windows NT operating systems. The internal modem and its direct connection to
 the telephone line eliminate the space required for an external modem and its
 power supply and cables, while delivering the same high-speed performance as
 the external 1-Meg Modem. The SupraSonic 1-Meg Modem will be available in
 November 1998.
     ``Early roll-outs of DSL modems will require coordination between
 retailers, service providers and equipment manufacturers. Diamond will be
 working with Nortel Networks to speed service deployment by making CPE more
 accessible to consumers,'' said Jim Cady, vice president and general manager
 of Diamond Multimedia's Communications Division. ``Diamond views the 1-Meg
 Modem as an opportunity to introduce digital modem technology into the retail
 channel by taking advantage of Nortel's relationships with 1-Meg Modem service
     Nortel Networks' 1-Meg Modem is a splitterless, mass-market, high-speed
 data solution that offers consumers an Internet connection that's over 17
 times faster than the fastest analog modem. Several providers, including
 Transwire Communications of New York, MegsINet of Chicago, Northern Illinois
 University, Purdue University, and Bell Canada are deploying the 1-Meg Modem
 throughout their service territory. To date, Nortel Networks has more than
 US$1 billion in orders for the product, representing the potential for more
 than one million end-user lines.
     Nortel Networks will exhibit Cayman's 2E 500 router, Diamond's SupraSonic
 1-Meg Modem PCI card and the external 1-Meg Modem at Networld+Interop in
 Atlanta, October 21-23, in booth number 1113.
     Diamond Multimedia holds a leadership role in the modem industry with its
 Supra modem product line. The SupraExpress 56 line of modems continues to be
 one of the most popular analog modems available today. Diamond's new dual-line
 modem, the SupraSonic II with Shotgun technology, offers Internet users
 download speeds of up to 112Kbps over two ordinary analog phone lines,
 demonstrates the company's ability to quickly bring advanced technology modem
 products to the consumer marketplace. Diamond's common stock is traded on the
 Nasdaq Stock Market under the symbol DIMD, and its web site address is
     Cayman Systems is the CPE supplier of choice for service providers that
 sell to the small and home office markets. Cayman's plug and play routers
 enable cable companies, CLECs, ISPs, ILECs and RBOCs to easily deliver
 Ethernet-to-Internet DSL and broadband solutions for their small office
 customers. Founded in 1987, Cayman Systems is a privately held company based
 in Stoneham, Massachusetts. Cayman's web site is

SOURCE Northern Telecom Limited