Nortel to Supply 'Anywhere, Anytime' Communications to Korea's New

Nortel to Supply 'Anywhere, Anytime' Communications to Korea's New Black Stone Golf & Resort

    Business Editors/Technology Writers

    SEOUL, South Korea--(BUSINESS WIRE)--March 21, 2005--

Network to Deliver Voice, Data Services Resort-Wide Using Wired, Wireless Technology
    The Black Stone Golf & Resort, soon to be opened on Korea's Jeju Island, has selected an Internet Protocol (IP) telephony and wireless networking solution from Nortel (NYSE:NT)(TSX:NT) to deliver voice and data services throughout its club houses, hotels, residential condominiums and golf courses. The network is being implemented in two phases by ECS Telecom, a Nortel Korea business partner.
    "This integrated IP and mobile network will allow us to deliver levels of customer service and staff efficiency that are unprecedented in the golfing resort world," said Tae Won Chun, Black Stone Golf & Resort facilities manager. "The Nortel solution will deliver telephone and data services for guests and staff in all of the resort buildings or outside on the golf course. At the same time, the network will provide a valuable and very cost-effective productivity tool for game, course and facilities management."
    In the first phase, a Nortel Communication Server 1000 will provide a high performance, fully converged IP voice and data platform covering all of Black Stone Golf & Resort buildings. In the second phase, planned for September 2005, Nortel's voice over wireless local area network (VoWLAN) and Wireless Mesh Network solutions will be deployed to deliver resort-wide, indoor-and-outdoor mobile, PDA and WLAN-enabled laptop coverage. This will provide immediate remote access to innovative communication services such as golf course guides and real-time scoring checks for players, as well as 'anywhere, anytime' intercom connectivity, text messaging, and Push to Talk (PTT) mobility services for resort management and personnel.
    "The Black Stone Golf & Resort represents Korea's first Nortel Wireless Mesh Network and is the second contract for Nortel's VoWLAN technology in the country, the first being the successful introduction at the W Seoul Walkerhill Hotel at the end of last year," said Soo-jin Chung, managing director, Nortel Korea. "The end-to-end wireline and wireless network will provide high quality IP telephony and data services for Black Stone with the flexibility to expand to meet future bandwidth demands and introduction of new technologies."
    Nortel Communication Server 1000 provides a full-featured IP telephony solution for enterprise. It is a robust, highly reliable, IP-based platform capable of being distributed across IP wide area networks (WANs) and delivering a full range of Nortel's proven and sophisticated telephony features.
    Nortel extends IP telephony solutions to mobile users over the Nortel WLAN 2200 Series converged infrastructure, enabling seamless roaming for voice and data within and across subnets and between IEEE 802.11a, 802.11b and 802.11g technologies, providing seamless communications across voice and data, wired and wireless.
    Nortel's unique Wireless Mesh Network solution uses wireless links to connect access points installed indoors or outdoors to provide secure, seamless access to wireless broadband services. This solution enables seamless roaming between access points, which means that users do not lose wireless connections as they move throughout the area served by the mesh network. Voice, video and interactive multimedia services can also be used simultaneously in one seamless communication session. In addition, the Nortel solution uses the Wi-Fi 802.11b standard, allowing users with Wi-Fi enabled laptop computers or handheld computing devices to access the network without new hardware or software.

    About Black Stone Golf & Resort

    The Black Stone Golf & Resort, located in the northern province of Jeju Island, is a comprehensive and state-of-the-art resort that not only has environmental-friendly golf courses with stunning scenery, club house facilities, condominiums and hotels, it also features a marina club on the seashores of the Beayang-do province where members can enjoy fishing, water sports, and dining on yachts. Members can also enjoy the benefits of horseback riding and scenic walks through the forest. The Black Stone Golf & Resort will host its grand opening in May 2005. For more information, visit the Black Stone Golf & Resort website at www.blackstonegolf.com.

    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 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; 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.
    Use of the terms "partner" and "partnership" does not imply a legal partnership between Nortel and any other party.

--30--MJR/da*

CONTACT: Nortel Christie Blake, 978-288-8439 email: christbl@nortel.com

KEYWORD: TEXAS SOUTH KOREA INTERNATIONAL AFRICA/MIDDLE EAST ASIA PACIFIC INDUSTRY KEYWORD: TELECOMMUNICATIONS SOFTWARE NETWORKING HARDWARE PRODUCT MARKETING AGREEMENTS SOURCE: Nortel

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