Nortel Increases Operator Revenue Potential with New Converged Mobilit

    Business Editors/Technology Editors
    CTIA Wireless 2005
    Booth #3125

    NEW ORLEANS--(BUSINESS WIRE)--March 14, 2005--Nortel (NYSE:NT) (TSX:NT) today announced a CDMA WLAN Converged Mobility solution designed to bridge CDMA wireless networks and wireless local area networks (WLANs) to provide a seamless communication experience to end users. This solution will allow CDMA operators to extend the reach of cellular 3G networks and deliver services more cost effectively by leveraging WLAN networks.
    It will allow the operator to deliver a consistent communications experience between CDMA and WLAN networks and allow end users to roam seamlessly between these networks and enjoy feature rich Session Initiation Protocol (SIP)-based services beyond voice, including video calling, video conferencing, short messaging service, instant messaging, e-mail, Web access and other multimedia services -- all from one device and one phone number. It will also manage subscriber billing information across networks so that end users can receive one, consolidated bill.
    "Operators are looking for innovative solutions that will help squeeze the most value from their existing network investments and offer a more compelling experience to subscribers from any location," said Richard Lowe, president, CDMA, Nortel. "Our wireless LAN capabilities coupled with our extensive experience in wireless 3G infrastructure will allow operators to increase revenue potential, build customer loyalty and, ultimately, gain competitive advantage."
    Nortel's WLAN CDMA Converged Mobility solution will be demonstrated at CTIA Wireless 2005 in New Orleans (Ernest N. Morial Convention Center, Hall C, Booth #3125) March 14-16. The demonstration will use TABLET media's iFon(TM) software application on the dual mode device to enable Nortel's Multimedia Communication Server (MCS) 5200 services.
    Nortel's WLAN CDMA Converged Mobility solution will help decrease operator costs by allowing them to use WLAN access points as an option to deploying CDMA base stations and carriers. Operators can leverage existing Nortel platforms, including Nortel's Call Server 2000 and MCS 5200, to quickly deploy the solution. In addition, the solution is SIP based and easily integrates into Nortel's recently announced Converged Multimedia Services (CMS) portfolio.
    Nortel will be conducting live market trials globally with leading operators across the globe later this year.
    The solution builds on Nortel's leadership in 3G wireless infrastructure technology, proven VoIP expertise, more than five years of R&D investment in SIP and Nortel's Enterprise advanced WLAN portfolio.
    Nortel is well-positioned to lead the converged multimedia market space based on its real world deployment and experience in all key IMS pillar technologies, including Carrier VoIP, SIP Multimedia, Wireless Packet Core IP networking, and GSM, UMTS and CDMA radio technologies. Nortel is a leader in softswitch, packet gateway and multiservice switching technologies.
    Nortel is an industry innovator and at the forefront of all broadband access technologies, including wide area cellular, wireline and wireless LAN. Nortel has designed, installed and launched more than 300 wireless networks in over 70 countries. Nortel was the industry's first supplier with wireless networks operating in all advanced radio technologies (GSM/GPRS/EDGE, CDMA2000 1X and 1xEV-DO, UMTS and WLAN), and is the only end-to-end provider of all next generation wireless solutions, as well as edge and core network solutions for IP, ATM and optical transport.

    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; 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 controls over financial reporting; 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, 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; 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 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 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; 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.

--30--BD/da*

CONTACT: Nortel Jamie Moody, 972-684-7167 email: moodyjam@nortel.com or Jay Barta, 972-685-2381 jbarta@nortel.com

KEYWORD: LOUISIANA TEXAS TRACK INDUSTRY KEYWORD: TELECOMMUNICATIONS NETWORKING HARDWARE SOFTWARE TRADESHOW PRODUCT SOURCE: Nortel

Copyright Business Wire 2005