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Electric Lightwave Invests $150 Million in Nortel Fiber Optic Equipment To Increase Network Capacity

 OC-192 Four-Fiber Network Will Quadruple Capacity of High-Speed Data Network

    VANCOUVER, Wash., Sept. 15 /PRNewswire/ -- Electric Lightwave Inc.
(Nasdaq: ELIX), one of the nation's leading integrated communications
providers, will expand the capacity and reach of its network over the next
five years using Nortel's Dense Wave Division Multiplexing (D-WDM) equipment.
The purchase agreement, estimated at more than $150 million, covers Nortel's
S/DMS Transport Node OC-192, a four fiber bi-directional line-switched ring
SONET platform, as well as Nortel's D-WDM equipment. The contract was
announced today at the National Fiber Optic Engineers Conference (NFOEC) show
in Orlando, September 13-17.
    Ready for service by Q3 1999, the network upgrade will allow for multiple
OC-192 capability and will have the capacity of transmitting more than two
million calls per fiber strand. An OC-192 transfers data at 10 Gbps per second
and Nortel's D-WDM supports up to 32 wavelengths, enabling Electric Lightwave
to transfer data at 320 gigabits (Gbps) per second. Electric Lightwave's
network will support voice and data traffic at OC-12, OC-48 and OC-192 SONET
speeds on a single fiber.
    "As a truly integrated communications provider, we intend to interconnect
our Metropolitan Area Networks (MANs) via our own facilities-based long haul
networks," said Todd Hanson, vice president of engineering for Electric
Lightwave. "Using Nortel's fiber optic technology we can offer a competitive
and technologically advanced solution with specialization in WAN, LAN and
other data applications that translate into better business for our
customers."
    "Electric Lightwave has brought a modern day meaning to pioneering the
west," said Mike Unger, president Optical Networks, Nortel. "In 1990 they were
able to see the future need of high-bandwidth applications, and today are
offering the commerce market a new alternative way to improve communications,
thereby improving the way they do business."
    Electric Lightwave's Network Control Center (NCC) will also use Nortel's
Integrated Network Management (INM) solution that will simplify network
monitoring and provisioning capabilities. Electric Lightwave is building its
network infrastructure to support the deployment to D-WDM 32-wavelength
configuration, to further increase capacity on its Western Synchronous Optical
Networks (SONET)-ring networks (announced on August 25).

    About Nortel
    Nortel (NYSE: NRT) 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's 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.

    Electric Lightwave
    Electric Lightwave Inc. is an integrated communications provider offering
data, Internet access and broadband transport services to businesses
nationwide. In the western United States, the company is a full-service
provider offering local and long distance telephone service, videoconferencing
and prepaid services to business customers. The company is headquartered in
Vancouver, Wash. Visit Electric Lightwave on the World Wide Web at
http://www.eli.net.
    NOTE:  All trademarks and registered trademarks are the property of their
respective owners, with no intent to infringe.


SOURCE Electric Lightwave, Inc.




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    CONTACT:
    investors, John Unverferth, 360-816-3217, or
    john_unverferth@eli.net, or press, Jack Hardy, 360-816-3602, or
    jack_hardy@eli.net, both of Electric Lightwave Inc.; or Loreli
    Lees of Nortel, 905-863-2111, or llees@nortel.com