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Nortel Networks Extends Strategic Alliance with Check Point Software Technologies

Check Point Software's FireWall-1 to be integrated into Nortel Networks' Contivity Extranet Switch product family --

SANTA CLARA, CA, November 3, 1998 - Nortel Networks* [NYSE: NT/TSE: NTL] announced today that it is extending its agreement with Check Point Software Technologies Ltd. [NASDAQ: CHKPF], the leader in policy-based management for IP networks, to integrate Check Point FireWall-1* enterprise security software into its Contivity* Extranet Switch product family. The incorporation of FireWall-1 allows Nortel Networks to further strengthen its leading Extranet/Virtual Private Network (VPN) solution by offering a fully integrated and flexible security architecture.

The announcement builds upon the existing relationship between Bay Networks, a Nortel Networks business, and Check Point Software, which includes integration of the FireWall-1 software into BayRS* (Bay Routing Services) for the Bay Networks family of router platforms. The extended strategic alliance also includes the integration of the most recent version of FireWall-1 software into BayRS. FireWall-1 is the market leading enterprise network security solution with more than 55,000 installations.

"Our ongoing relationship with Check Point Software and its FireWall-1 technology has meant that our customers are receiving the highest levels of security available," said Michael Feinstein, vice president of market development at Nortel Networks. "The addition of FireWall-1 within our Contivity Extranet Switch product line represents a commitment to delivering a best-of breed, integrated solution for making the Internet safe for business communications. FireWall-1 is a rock-solid solution for elevating security levels to their highest degree."

Under the terms of the agreement, Nortel Networks will integrate FireWall-1 into the Contivity Extranet Switch software that accompanies each of the Contivity Extranet Switch 4000, 2000 and 1000 units. FireWall-1 will be a standard offering in certain product configurations and will be sold as an add-on in other configurations.

"Today, more than ever, it is important to customers to have centrally managed, best-of-breed security products integrated on a single platform," said Asheem Chandna, vice president of marketing and business development, Check Point Software Technologies, Inc. "The Contivity Extranet Switch's use of FireWall-1 creates a turnkey solution which allows businesses to implement secure communications to the Internet simply and safely."

With support for strong user authentication, industry-leading Stateful Inspection access control, network address translation, encrypted management, and industry-wide interoperability through Open Platform for Secure Enterprise Connectivity (OPSEC) Alliance partner products, FireWall-1's feature set enhances the security functionality of the Contivity Extranet Switch product family.

Enabling business partners and employees to build Extranets/VPNs for private communication, commerce, and collaboration, the Contivity Extranet Switch products combine a unique set of key technologies for IP tunneling, authentication, encryption, routing, firewall filtering, bandwidth management and system management into a highly scalable solution. Providing connectivity for up to 2000 simultaneous connections for both individual dial-in users and routed branch offices, the Contivity product line offers support for the widest variety of tunneling (L2TP, PPTP, IPSec, L2F), authentication (hard and soft tokens, Radius, X.509, internal/external LDAP, NT domain) and security standards (DES, 3-DES, RC4) in the industry.

Check Point's FireWall-1 also supports LDAP directory management, while helping users define comprehensive security policies. Consistent with a strong commitment to open standards, FireWall-1 is unified by Check Point's industry-wide OPSEC framework of open and industry-standard APIs. OPSEC enables customers to easily, seamlessly and selectively integrate a full spectrum of security applications, defined and driven by a single, enterprise-wide security policy. OPSEC makes available best-of-breed product choices from more than 160 vendors. Additionally, FireWall-1 supports the industry-standard TACACS+ and RADIUS version 2 protocols allowing flexible integration with multiple third-party authentication solutions. 


About Check Point Software Technologies Ltd.

Check Point Software Technologies Ltd. is a leading provider of policy-based management solutions for IP networks. Through its Secure Enterprise Connectivity strategy, the company is dedicated to enabling secure, reliable, and manageable business communications. The company's products include the world's leading enterprise security suite, FireWall-1, the industry's leading VPN family of solutions, VPN-1, and the industry's premier bandwidth management solution, FloodGate-1™. MetaInfo, Inc., a wholly-owned subsidiary of Check Point, is a leader in network and IP address management software that simplifies the set-up, integration and administration of complex networks. The company has U.S. headquarters in Redwood City, California and international headquarters in Ramat-Gan, Israel. For product information, please call (800) 429-4391 or (650) 628-2000 or visit our web site at http://www.checkpoint.com.


About Nortel Networks

Nortel Networks 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 Networks' common shares are listed on the New York, Toronto, Montreal, Vancouver, and London stock exchanges. Nortel Networks had 1997 revenues of US$15.5 billion and Bay Networks, a wholly owned subsidiary of Nortel Networks, had revenues of US$2.4 billion during its most recent fiscal year. The combined company's workforce totals approximately 80,000 employees worldwide.   Visit Nortel's web-site at www.nortelnetworks.com.

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* Nortel Networks and How the world shares ideas are trademarks of Northern Telecom
* Bay Networks, Contivity and BayRS are trademarks of Bay Networks, Inc.
* Check Point, the Check Point logo, FireWall-1, OPSEC, INSPECT, VPN-1 and FloodGate-1 are trademarks or registered trademarks of Check Point Software Technologies Ltd. Meta IP and Meta DNS are trademarks of MetaInfo, Inc.