This paper presents the implementation of MPICH2 over the Nemesis communication subsystem and the evaluation of its shared-memory performance. We describe design issues as well as some of the optimization techniques we employed. We conducted a performance evaluation over shared memory using microbenchmarks. The evaluation shows that MPICH2 Nemesis has very low communication overhead, making it suitable for smaller-grained applications. Key words: Parallel computing; Message passing; MPI; MPI implementation; Communication subsystem; Shared-memory