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October 10, 2007 22:00 ET

Far EasTone Chooses Nortel WiMAX Solution to Deliver Mobile Broadband Services

Deployment to Advance Government's M-Taiwan Mobility Vision

TAIPEI, TAIWAN--(Marketwire - Oct. 10, 2007) - Residents of Taipei County in Taiwan will benefit from ubiquitous wireless broadband access when Far EasTone Telecommunications (FET), one of Taiwan's largest telecommunications operators, launches its Mobile WiMAX network from Nortel(1) (TSX:NT)(NYSE:NT).

As a participant in the government's M-Taiwan initiative, FET will offer mobile broadband services across Taipei County. Once deployed, subscribers will be able to use the network to access high bandwidth services such as streaming video, music, IPTV, VoIP, videoconferencing and corporate applications from nearly anywhere using laptop computers or other WiMAX-compatible devices.

"WiMAX offers significant new opportunities to deliver innovative information and communications services to customers no matter where they're located," said Jeffey J. Gee, executive vice president, FET. "Nortel's WiMAX solution performed well during our extensive technical reviews and we expect it to provide a robust and scalable solution to enhance FET's existing mobile broadband services."

"Taiwan has emerged as a leader in the development of an end-to-end WiMAX ecosystem," said Y.K.Tsai, general manager, Nortel Taiwan. "Far EasTone's roll-out of WiMAX services will further the government's M-Taiwan vision of bringing readily accessible mobile broadband to the Taiwanese population. Nortel's WiMAX solution makes the complex demands of the new era of Hyperconnectivity simple by enabling person-to-person, person-to-machine and machine-to-machine communication with secure, high-speed mobile broadband connectivity."

With more than six million subscribers to its mobile services, FET is one of Taiwan's largest wireless operators. In addition to FET's involvement in the M-Taiwan initiative, the company is one of the winners of the WiMAX radiofrequency spectrum in Taiwan's recent license bid. Taiwan plans to roll out WiMAX commercial services in 2008 with six licenses issued to mobile operators in July 2007.

FET's network will be built from Nortel's Mobile WiMAX Solution portfolio with MIMO capability, including 16e Base Stations and an Access Service Network (ASN) Gateway. Nortel will also provide network management services from its Global Services portfolio. Nortel products include mobile technologies that span public and private wireless networks, providing a complete range of solutions to help telecommunications operators deliver the wireless broadband services their customers demand.

Nortel has been involved in the development of OFDM/MIMO for more than eight years, and plays a leading role in the standardization of WiMAX technology. Nortel is conducting WiMAX trials and completing network deployments around the world, notably in Taiwan, Australia, Japan, Germany, Greece, Russia, USA, Canada, Brazil and Mexico.

Nortel's Global Services portfolio includes a full range of network applications, implementation, management and support services for end-to-end multi-vendor, multi-technology networks.

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 www.nortel.com. For the latest Nortel news, visit 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 from those contemplated in forward-looking statements. For additional information with respect to certain of these and other factors, see Nortel's Annual Report on Form10-K, 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.

(1)Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.

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