AboveNet Accredited as Nortel Solutions Partner

LONDON – May 24, 2005 - AboveNet Communications UK Ltd., a leading provider of fibre connectivity solutions for business and a subsidiary of AboveNet Inc, has been named as an ‘Accredited Solutions Partner’ within Nortel’s Europe, Middle East and Africa Partner Programme. This accreditation confirms AboveNet’s commitment to Nortel, through the development of its sales, pre-sales and post-sales capability to offer end-to-end Nortel optical solutions to its end-user customers.

Over the past four years, AboveNet has worked with Nortel to develop a relationship that enables delivery of a wide range of fully managed optical products and services tailored specifically to enterprise markets. By offering AboveNet’s metropolitan dark fibre and managed service skills together with Nortel’s market-leading wavelength division multiplexing (WDM) equipment, this relationship provides the enterprise market with a truly end-to-end service.

“The benefits of this relationship, cemented by such an accreditation, afford the customer reassurance that the solution proposed is of the highest quality regardless of network topology or architecture,” said John Dowbiggin, UK managing direct or, AboveNet. “We are extremely pleased by the award of this accreditation and, as a result, will continue in our success in providing our customers with superior end-to-end managed network solutions.”

“This optical solutions relationship is founded on exceptional customer wins in the banking and media sect ors, both in the UK and the United States, where integration of both companies’ product sets, engineering excellence, installation and maintenance skills have proved to be a winning combination,” said Tony Bailey, leader, UK and Ireland channels, Nortel.

“We look forward to a long and successful relationship with AboveNet and believe that both companies, working closely together, will continue to deliver solutions that fulfil the growing need within the enterprise markets,” Bailey said.

AboveNet’s managed solutions along with Nortel’s Metro–DWDM and Metro-CWDM technologies enable transparent delivery of all current applications between dual or multiple metropolitan sites. The ability to create and deploy bespoke private optical networks replaces traditional metered services, allowing for the flexibility to increase capacity to meet growing data and information needs year on year.

About AboveNet, Inc.
AboveNet, Inc. provides fibre connectivity solutions for businesses. Its private optical network, delivers key network and IP services in and between 12 top U.S. metro markets and London. AboveNet’s network is widely used in demanding markets such as financial services, where the majority of top investment banks, and five of the top 10 U.S. banks rely on AboveNet for mission critical services.

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 breach of its support facility and public debt obligations and 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 our public filings; the potential delisting or suspension of Nortel’s and NNL’s publicly traded securities; 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 or early settlement, which is currently not available, 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; 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.

Use of the terms “partner” and “partnership” does not imply a legal partnership between Nortel and any other party.