LG Electronics, Inc.

March 03, 2005 18:29 ET

LG Electronics, Nortel Demonstrate 'Supercharged' Experience for Streaming Video, Music Downloads to Consumers






MARCH 3, 2005 - 18:29 ET

LG Electronics, Nortel Demonstrate 'Supercharged'
Experience for Streaming Video, Music Downloads to

CHATEAUFORT, France--(CCNMatthews - Mar 3, 2005) -

Complete First Consumer Handset-Based HSDPA 'Drive' Calls

Nortel (NYSE:NT) (TSX:NT) and LG Electronics (KSE:06657) have completed
the industry's first live test calls using a commercial handset solution
for the emerging broadband wireless technology, High Speed Downlink
Packet Access (HSDPA).

The companies have demonstrated real-world experiences of 'supercharged'
broadband services that can help wireless operators generate new
revenues through high-resolution interactive gaming, multimedia music
downloads, DVD-quality film and video, Mobile TV, 'push-to-watch'
services, and access to large e-mail attachments.

"Based on the success of our interoperability program, I expect Nortel
to be the first to market with a complete, end-to-end HSDPA solution
with integrated consumer devices," said Peter MacKinnon, president,
GSM/UMTS, Nortel. "Our recent string of industry firsts and technology
milestones continues to prove our leadership in HSDPA and other emerging
broadband wireless technologies."

"LG Electronics is proud to achieve this milestone with Nortel, and to
drive the industry forward in delivering true broadband mobile services
to end users," said Skott Ahn, executive vice president, LG Electronics.
"This practical demonstration is a big step forward towards the
realization of commercial HSDPA services and an important validation of
the enhanced performance HSDPA will bring to carriers."

The companies completed drive calls using commercially-available UMTS
network infrastructure from Nortel and an LG HSDPA handset slated for
commercial availability in late 2005. Downloads of pop music songs and
three-minute streaming movie clips (the LG device served as a modem to a
PC screen) were completed in a moving automobile to demonstrate
real-world stability at speeds up to 1.4 megabits per second (mbps).

By making more efficient use of the existing network and boosting
throughput, HSDPA significantly reduces operating costs while delivering
a better end user experience. HSDPA boosts network capacity to carry
up-to-three times as much data traffic and up to twice as many wireless
users per cell site compared to today's UMTS networks. HSDPA speeds
network throughput to five times faster than today's commercial third
generation (3G) networks to deliver broadband services comparable to DSL
or ADSL.

Nortel recently announced a series of industry milestones with leading
chipset and data card vendors, and is working with a number of global
operators, including mmO2, on HSDPA trials and deployments in 2005.

Nortel has demonstrated the maximum data speed enabled by HSDPA -- 14.4
mbps -- on commercially-available equipment including its UMTS Base
Transceiver stations and UMTS Radio Network Controller, along with
terminals supplied by Ubinetics. Nortel's equipment is designed to be
HSDPA-ready and to cost-effectively upgrade to support HSDPA through a
simple software installation.

About LG Electronics, Inc.

LG Electronics, Inc. (KSE:06657) is a global force in electronics,
information and communications products with 2004 annual sales of US $38
billion (consolidated). With more than 66,000 employees working in 76
subsidiaries in 39 countries around the world, LG Electronics is
comprised of four main business companies including Mobile
Communications, Digital Appliance, Digital Display, and Digital Media.

LG Electronics Mobile Communications Company is the world's leading
manufacturer of WCDMA (UMTS), CDMA and GSM handsets, and the fastest
growing manufacturer of mobile phones worldwide. The company provides a
total range of wired and wireless solutions, and is rapidly establishing
a global presence as it cultivates international market share in 3G
handsets. For more information please visit

About UbiNetics

UbiNetics is the world leader in the supply of innovative 3G, 2.5G and
2G (WCDMA/GPRS/GSM) IP solutions for chipset and terminal manufacturers,
and 3G Test and Measurement equipment. Its experience in wireless
technology positions the company at the centre of 3G developments.

The company's WCDMA Test Mobiles, used by global 3G infrastructure
manufacturers and network operators, position UbiNetics at the center of
WCDMA interoperability testing. Products such as the SystemAT test
system for network and service verification and the TM500 Test Mobile,
being supplied for early HSDPA trials, further strengthen this position.

UbiNetics also provides 2G, 2.5G, 3G and HSDPA protocol software and
physical layer IP for use by chipset and handset developers and
manufacturers. ODMs can take advantage of UbiNetics' embedded modules
and reference designs for 3G-enabled handsets. Using UbiNetics'
considerable experience in deploying multi-mode 3G technology, chip and
device manufacturers can de-risk and accelerate their product

Since the company was formed in 1999, UbiNetics has grown to over 400
employees with operations in Cambridge, U.K.; Japan and Hong Kong, with
R&D facilities in Swindon, U.K.; Bangalore, India and Shenzhen, China.
Further information about UbiNetics can be found at

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 For the latest Nortel news, visit

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


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