Nortel

Nortel
LG Electronics, Inc.

March 14, 2005 08:03 ET

Nortel, LG Electronics Team Up on WiMAX Solutions


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NORTEL

NYSE, TSX SYMBOL: NT

AND LG ELECTRONICS

KSE SYMBOL: 06657

MARCH 14, 2005 - 08:03 ET

Nortel, LG Electronics Team Up on WiMAX Solutions

NEW ORLEANS--(CCNMatthews - Mar 14, 2005) -

Cutting-Edge Technology Expected to Greatly Enhance Subscriber
Experience, Increase Operator Revenue Potential

Nortel (NYSE:NT)(TSX:NT), a global telecommunications leader in wireless
infrastructure and advanced third generation (3G) technologies, and LG
Electronics (KSE:06657), a global leader in the next generation mobile
industry, have announced plans to work together to jointly develop and
market WiMAX products.

This follows the January 2005 announcement of a Memorandum of
Understanding (MoU) between Nortel and LG Electronics to establish a
joint venture for providing high quality, leading edge
telecommunications equipment and networking solutions to Korea and other
markets globally.

The companies' global WiMAX strategy, announced today at CTIA Wireless
2005, the world's largest wireless tradeshow, marries the power of
Nortel's carrier packet networking and OFDM/MIMO (Orthogonal Frequency
Division Multiplexing/Multiple In, Multiple Out) leadership with LG
Electronics' mobile telecommunications and digital convergence
expertise.

"This leverages the combined strengths of Nortel and LG Electronics to
provide end-to-end solutions and investment in innovative technologies
that will position our customers for greater success," said Dave
Murashige, vice president, Carrier Networks, Nortel. "We are focused on
the continuing evolution of wireless broadband and its increasing role
in communications networks."

"Nortel's and LG Electronics' strengths will combine powerfully to
deliver the future WiMAX vision," said Jae Ryung Lee, executive vice
president, Networks, LG Electronics. "With the advent of 802.16e,
mobility solutions for broadband wireless will become possible, and
Nortel is an acknowledged leader in networking technologies that will be
married with WiMAX access to enable that vision."

Nortel and LG will develop WiMAX solutions based on the 802.16e standard
and the WiMAX networking specification, currently under development
within the WiMAX Forum. The companies are planning customer WiMAX
802.16e trials in the second half of 2006.

Nortel believes that the combination of OFDM and MIMO can be realized in
802.16e and WiMAX. These technologies provide greater spectrum
efficiency, which is needed to scale wireless broadband systems for
large numbers of users and high data throughputs. Nortel has invested in
advanced development of OFDM and MIMO for the past six years and has
demonstrated the benefits and commercial feasibility of these
technologies to more than 100 customers.

IEEE 802.16e is a point-to-multipoint broadband wireless access standard
that will support fixed, nomadic and mobile wireless broadband
connectivity without requiring direct line-of-sight access to a base
station. In a mobile deployment, WiMAX-based solutions can deliver
wireless broadband data with cost-effective macrocellular deployments.

Nortel is a principal member of the WiMAX Forum, an industry-led
organization that promotes interoperability and certification of
broadband wireless products for delivery of faster, more affordable
data, voice and video services for businesses and consumers. In
addition, Nortel recently announced a MIMO/OFDM lab demonstration of
large data transfers with peak data rates at 37 Mbps over a standard
5MHz PCS band.

LG Electronics has been rapidly growing as a major contributor in IEEE
802.16e. The scope of the company is extending to make it one of the
major technical members in WiMAX and IEEE 802.21. With these activities,
LG Electronics is the first mover to get to solid broadband wireless
access 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 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, 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 www.lge.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 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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