Nortel, Colubris Networks to Provide Wireless Solution for Trinity Railway Express

DALLAS, March 5 /PRNewswire-FirstCall/ -- 4G Metro, the wireless network operator for Trinity Railway Express (TRE), has selected Nortel* (TSX: NT) and Colubris Networks to provide equipment for what is expected to be the first end-to-end broadband wireless service offered by a major U.S. public railway.

The TRE network deployment is scheduled to be the first under a new joint marketing and sales agreement between Nortel and Colubris Networks. The two companies have also made a mutual commitment to product interoperability testing.

TRE is a cooperative public railway linking Fort Worth, Dallas and DFW International Airport. Beginning in early summer 2007, TRE plans to provide approximately 5,000 daily passengers with high-speed wireless Internet access and a range of information and entertainment services. This will include breaking news and sports, local advertising and other video content presented on 27-inch LCD screens.

"We expect TRE to set a critical technology bar for other providers across the country," said Don Lanham, chief marketing officer of 4G Metro, a privately owned wireless services company that will own and operate the network under a public/private partnership agreement with TRE.

"Our decision to select Nortel and Colubris was simple," Lanham said. "Both have superior wireless broadband solutions proven in large-scale deployments. This is crucial to providing leading-edge wireless services for TRE passengers with optimal performance, reliability and security."

4G Metro intends to use Nortel's Municipal Wireless Solution - including wireless mesh, WiMAX and optical technologies - to deliver integrated voice, data and multimedia along the entire 36-mile TRE route. They will deploy Colubris Networks' Intelligent WLAN Mobility System for passenger access to the Internet and other services on the train and in the stations. Colubris Wireless Client Bridges will provide seamless connectivity to Nortel Wireless Access Points at speeds up to 63 miles-per-hour. Colubris MultiService Access Points and MultiService Controllers will support Internet 'hotspot' service for passengers with scalable user access control and QoS services.

"TRE's service will be a major step in the growth of broadband wireless in non-traditional venues," said Angela Singhal, director, Municipal Wireless Solutions, Nortel. "We expect the flexibility and security of Colubris' intelligent wireless LAN solution, combined with Nortel's technology and global experience in designing, installing and launching hundreds of public and private wireless networks, to help TRE make affordable broadband wireless services available to its passengers."

"With Nortel, we are offering transportation and other service providers an industry-leading municipal wireless broadband solution," said Roger Sands, co-president and vice president, engineering, Colubris Networks. "We look forward to working together to provide cutting-edge companies like TRE with comprehensive wireless solutions that combine Colubris' highly reliable and secure Wi-Fi solutions with the market breadth of Nortel's Municipal Wireless Solution."

About Colubris

Colubris Networks is the leading global provider of intelligent wireless networks (WLANs) for service providers and enterprises. Its optimized WLAN switching systems deliver unmatched bandwidth efficiency, seamless mobility and secure, easy access for more than 1,500 organizations and 40 million users worldwide. Its systems unify and integrate with existing network infrastructures, security and management systems and provide "future-proof" investment protection as standards evolve and user populations grow. Colubris' numerous recognitions include Red Herring's top 100 private companies in North America, Fierce Wireless Fierce 15 and Mobile Trax Mobility Award. For more information, visit Colubris on the Web at http://www.colubris.com/.

About 4G Metro

4G Metro is a privately owned wireless services company. The company works with world class network systems providers to ensure seamless installation processes. Its services reflect the uniqueness of core technologies, including wireless communications, radio transmission, network hardware/software architecture, digital signal processing and audio/video distribution. 4G Metro is comprised of two divisions - metropolitan mesh networks and broadband access on public transportation. Visit 4G Metro on the Web at http://www.4gmetro.com/.

About Nortel

Nortel is a recognized leader in delivering communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate today's barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world. For more information, visit Nortel on the Web at http://www.nortel.com/. For the latest Nortel news, visit http://www.nortel.com/news.

Certain statements in this press release may contain words such as "could", "expects", "may", "anticipates", "believes", "intends", "estimates", "targets", "envisions", "seeks" and other similar language and are considered forward-looking statements or information under applicable securities legislation. These statements are based on Nortel's current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Nortel operates. These statements are subject to important assumptions, risks and uncertainties, which are difficult to predict and the actual outcome may be materially different. Further, actual results or events could differ materially from those contemplated in forward- looking statements as a result of the following (i) risks and uncertainties relating to Nortel's restatements and related matters including: Nortel's most recent restatement and two previous restatements of its financial statements and related events; the negative impact on Nortel and NNL of their most recent restatement and delay in filing their financial statements and related periodic reports; legal judgments, fines, penalties or settlements, or any substantial regulatory fines or other penalties or sanctions, related to the ongoing regulatory and criminal investigations of Nortel in the U.S. and Canada; any significant pending civil litigation actions not encompassed by Nortel's proposed class action settlement; any substantial cash payment and/or significant dilution of Nortel's existing equity positions resulting from the approval of its proposed class action settlement; any unsuccessful remediation of Nortel's material weaknesses in internal control over financial reporting resulting in an inability to report Nortel's results of operations and financial condition accurately and in a timely manner; the time required to implement Nortel's remedial measures; Nortel's inability to access, in its current form, its shelf registration filed with the United States Securities and Exchange Commission (SEC), and Nortel's below investment grade credit rating and any further adverse effect on its credit rating due to Nortel's restatements of its financial statements; any adverse affect on Nortel's business and market price of its publicly traded securities arising from continuing negative publicity related to Nortel's restatements; Nortel's potential inability to attract or retain the personnel necessary to achieve its business objectives; any breach by Nortel of the continued listing requirements of the NYSE or TSX causing the NYSE and/or the TSX to commence suspension or delisting procedures; (ii) risks and uncertainties relating to Nortel's business including: yearly and quarterly fluctuations of Nortel's operating results; reduced demand and pricing pressures for its products due to global economic conditions, significant competition, competitive pricing practice, cautious capital spending by customers, increased industry consolidation, rapidly changing technologies, evolving industry standards, frequent new product introductions and short product life cycles, and other trends and industry characteristics affecting the telecommunications industry; the sufficiency of recently announced restructuring actions, including the potential for higher actual costs to be incurred in connection with these restructuring actions compared to the estimated costs of such actions and the ability to achieve the targeted cost savings and reductions of Nortel's unfunded pension liability deficit; any material and adverse affects on Nortel's performance if its expectations regarding market demand for particular products prove to be wrong or because of certain barriers in its efforts to expand internationally; any reduction in Nortel's operating results and any related volatility in the market price of its publicly traded securities arising from any decline in its gross margin, or fluctuations in foreign currency exchange rates; any negative developments associated with Nortel's supply contract and contract manufacturing agreements including as a result of using a sole supplier for key optical networking solutions components, and any defects or errors in Nortel's current or planned products; any negative impact to Nortel of its failure to achieve its business transformation objectives; additional valuation allowances for all or a portion of its deferred tax assets; Nortel's failure to protect its intellectual property rights, or any adverse judgments or settlements arising out of disputes regarding intellectual property; changes in regulation of the Internet and/or other aspects of the industry; Nortel's failure to successfully operate or integrate its strategic acquisitions, or failure to consummate or succeed with its strategic alliances; any negative effect of Nortel's failure to evolve adequately its financial and managerial control and reporting systems and processes, manage and grow its business, or create an effective risk management strategy; and (iii) risks and uncertainties relating to Nortel's liquidity, financing arrangements and capital including: the impact of Nortel's most recent restatement and two previous restatements of its financial statements; any inability of Nortel to manage cash flow fluctuations to fund working capital requirements or achieve its business objectives in a timely manner or obtain additional sources of funding; high levels of debt, limitations on Nortel capitalizing on business opportunities because of support facility covenants, or on obtaining additional secured debt pursuant to the provisions of indentures governing certain of Nortel's public debt issues and the provisions of its support facility; any increase of restricted cash requirements for Nortel if it is unable to secure alternative support for obligations arising from certain normal course business activities, or any inability of Nortel's subsidiaries to provide it with sufficient funding; any negative effect to Nortel of the need to make larger defined benefit plans contributions in the future or exposure to customer credit risks or inability of customers to fulfill payment obligations under customer financing arrangements; any negative impact on Nortel's ability to make future acquisitions, raise capital, issue debt and retain employees arising from stock price volatility and further declines in the market price of Nortel's publicly traded securities, or the share consolidation resulting in a lower total market capitalization or adverse effect on the liquidity of Nortel's common shares. For additional information with respect to certain of these and other factors, see Nortel's Annual Report on Form 10-K/A, Quarterly Reports on Form 10-Q and other securities filings 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.

**This is a 3rd party link as described in Nortel's Web linking practices. For more information: Mark Buford Nortel 972-362-1512 mark.buford@nortel.com Laura Sexton Davies Murphy/Colubris 781-418-2417 colubris@daviesmurphy.com