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Nortel Upgrades Stabilus Network

Leading Global Manufacturer of Gas Springs and Hydraulic Vibration Dampers uses Nortel Ethernet

FRANKFURT, Germany - Stabilus, one of the world leaders in gas springs and hydraulic vibration dampers, has upgraded its network with Nortel* [NYSE/TSX: NT] Ethernet solutions. The upgrade provides a comprehensive communications foundation for the future deployment of services such as IP Telephony and media-rich applications.

"The highest priority for Stabilus is to maintain our market leadership and maximum network availability is critical to meeting this priority," said Udo Braehmer, Managing Director Production (COO) at Stabilus. "We chose Nortel to upgrade our network to secure high availability standards because of its proven track record in providing a seamless migration to Gigabit Ethernet from our existing ATM technology."

"Nortel collaborated closely with Stabilus throughout the entire design and deployment to meet the business objectives of increased performance and reliability, without undue complexity," said Martin Boeker, business leader Enterprise Central Europe, Nortel EMEA. "The company thus builds upon a long-term customer relationship and this new infrastructure provides the next generation of performance together with unmatched reliability."

The network upgrade for Stabilus was essential to eliminate network congesting and routing problems in its existing ATM infrastructure. The upgraded network, which was deployed in cooperation with the Nortel solution partner Controlware, consists of two Ethernet Routing Switches 8600 acting as a virtual switch cluster in the Core, and a combination of 45 Ethernet Switches 5510-24 and 20 Ethernet Switches 5510-48 at the Edge.

Despite being such a large network - with over 2,000 ports at the Edge, the Stabilus network remains relatively simple with both Edge Switches and Servers connecting directly into the shared high-availability Core. Leveraging Nortel's switch virtualisation capability, the "switch cluster" in the Core appears as a single device; meaning that no single element or component failure will impact overall application availability. This translates into sub-second restoration regardless of the failure scenario and satisfies the Stabilus business requirement for maximum application uptime. The new "virtual hot-swap" capability of the 5500 series Switches further expands and protects the overall availability solution for Stabilus.

About Stabilus
Stabilus is a manufacturer of hydro-pneumatic adjustment elements (gas springs), hydraulic vibration dampers, hydraulic door stays and opening and closing systems for doors, trunk lids, as well as tailgates. Gas springs and dampers from Stabilus can be found in the automotive industry as well as in industrial applications. The company was founded in 1934 in Koblenz, Germany. Today, Stabilus is a worldwide operating company with ten plants in ten countries in five continents. Furthermore, there is a worldwide sales and service network in place with distribution centers in the USA, Asia and Europe.

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.

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 ongoing 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 Nortel's inability to access its shelf registration statement filed with the United States Securities and Exchange Commission (SEC); 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; general stock market volatility; 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; any undetected product defects, errors or failures; the future success of Nortel's strategic alliances; and certain restrictions on how Nortel and its president and chief executive officer conduct business. 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.

Modified by Administrator at Fri, Sep 08, 2006, 16:26:12

02/06/2006, 07:27:03

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