RFF Selects Nortel to Operate New Railway Communications Network in Fr

    Business Editors/Technology Writers/Transportation Writers
    3GSM World Congress 2005

    PARIS--(BUSINESS WIRE)--Feb. 15, 2005--French railway operator Reseau Ferre de France (RFF) has selected Nortel (NYSE:NT)(TSX:NT) to provide network operation services to support the management of its GSM-R (Global System for Mobile Communication-Railway) network. Nortel will provide all daily operational activities to support RFF with the rollout of its network and help ensure quality of service.
    With the introduction of a new wireless technology, RFF requires appropriate training and initial operational support to ensure smooth operation of its GSM-R network. The relationship with Nortel will speed RFF's training program and enable it to offer the best possible service.
    In September 2003, RFF selected Nortel to supply its nationwide GSM-R network. Under the new services agreement, Nortel will handle the day-to-day management of the network and train SNCF employees, who will run the network for RFF during the early phases of the network rollout. Nortel's service capability is based on its experience in operational activities for major European wireless operators.
    "Across Europe and Asia we are helping railway operators use the latest communications technology to reduce journey times and delays, enhance passenger safety, and run more trains more efficiently," said Scott Wickware, vice president, GSM/UMTS solutions, Nortel. "Our experience in this field is second to none, and Nortel continues to work with RFF to provide the best railway communications technology."
    In addition to training, Nortel will deliver a suite of network operations services to RFF, including network surveillance, fault and performance management, process development, and software management. This portfolio of services is particularly applicable to railway industry customers.
    Nortel is the world leader in GSM-R technology with more than 60 percent market share of lines deployed to date. Nortel is deploying nationwide GSM-R networks in France for RFF, in Great Britain for Network Rail, and in Germany for Deutsche Bahn. Nortel provided the end-to-end system for Deutsche Bahn's ICE high-speed line between Frankfurt and Cologne, and supplied the high-speed line between Rome and Naples in Italy for SIRTI. Nortel is also deploying a GSM-R network for the world's highest rail line, the Tibet-Qinghai high-speed line in China.
    Nortel has been a pioneer in the GSM-R standards process since 1992, and has worked with UIC (Union Internationale des Chemins de Fer) and ETSI (European Telecommunications Standards Institute). Nortel supplied equipment for the MORANE (Mobile Radio for Railways Networks in Europe) trial and was a major contributor to the EIRENE (European Integrated Railway radio Enhanced Network) GSM-R standard.

    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 August 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.

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CONTACT: Nortel Ben Roome, +44 1628 43 3113 email: benroome@nortel.com or Jay Barta, 972-685-2381 email: jbarta@nortel.com

KEYWORD: TEXAS FRANCE INTERNATIONAL EUROPE TRACK INDUSTRY KEYWORD: TRANSPORTATION TELECOMMUNICATIONS SOFTWARE NETWORKING TRADESHOW SOURCE: Nortel

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