Nortel

Nortel
QUALCOMM Incorporated

QUALCOMM Incorporated

January 26, 2005 04:00 ET

QUALCOMM, Nortel Demonstrate 'Supercharged' Consumer Broadband Wireless Experience; Complete First Handset-Based HSDPA 'Drive' Calls


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NORTEL

NYSE, TSX SYMBOL: NT

AND QUALCOMM INCORPORATED

NASDAQ SYMBOL: QCOM

JANUARY 26, 2005 - 04:00 ET

QUALCOMM, Nortel Demonstrate 'Supercharged' Consumer
Broadband Wireless Experience; Complete First
Handset-Based HSDPA 'Drive' Calls

CHATEAUFORT, France--(CCNMatthews - Jan 26, 2005) -

Nortel (NYSE:NT) (TSX:NT) and QUALCOMM Incorporated (Nasdaq:QCOM) have
completed the industry's first end-to-end calls using WCDMA's emerging
broadband technology -- High Speed Downlink Packet Access (HSDPA) -- on
a commercial network and handset equipment. The calls demonstrate the
capability to commercially deliver a new era of 'supercharged' mobile
services.

"QUALCOMM is committed to helping the WCDMA community extend the
utilization of wireless for data communications purposes," said Dr.
Sanjay K. Jha, president, QUALCOMM CDMA Technologies. "This practical
demonstration is a big step forward towards the realization of
commercial HSDPA networks and an important validation of the enhanced
performance HSDPA will bring to carriers."

The calls were completed using commercial network equipment from Nortel
and the industry's first available handset solution, which is enabled by
QUALCOMM's Mobile Station Modem™ (MSM™) MSM6275™ chipset. Calls
were made over a live air connection to a moving automobile to
demonstrate the stability of the connection in a real-world environment.

Mobile broadband services simulated include high-resolution interactive
gaming, multimedia music tracks, DVD-quality film and video,
'push-to-watch' services and access to large e-mail attachments -- at
speeds more than three times faster than today's commercial next
generation networks. For example, a five-megabyte music file was
downloaded in less than 30 seconds, and an e-mail with a three-megabyte
attachment was downloaded in 20 seconds, which is comparable to DSL or
ADSL speeds.

"Nortel is a leading innovator in bringing the newer and faster
technologies to market that will ignite global commerce and drive the
industry forward for the next five, 10, even 15 years," said Peter
MacKinnon, president, GSM/UMTS, Nortel. "Working with leaders like
QUALCOMM, we are laying the groundwork now to deliver even faster
technologies that will enhance the end user experience and create new
business models for the industry."

HSDPA is a migration technology for the UMTS wireless standard used by
leading wireless operators across Europe, Japan and North America to
deliver voice and data services. 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. By making more
efficient use of the existing network and boosting throughput, HSDPA
significantly reduces operating costs while delivering a better end-user
experience.

QUALCOMM's MSM6275 chipset solution for WCDMA (UMTS)/HSDPA and
GSM/GPRS/EDGE (EGPRS) provides increased processing power and graphics
performance at low power consumption to enable the highest quality
audiovisual and gaming graphics on cost-effective, multiband, multimode
handsets with smaller form factors.

The broadband calls were completed using Nortel's commercially-available
UMTS Base Transceiver stations. This equipment is designed to be
HSDPA-ready and to cost-effectively upgrade to support HSDPA through a
simple software installation.

Nortel recently announced plans with mmO2 for a Pan-European HSDPA
network deployment, and is working with a number of other leading global
operators on HSDPA trials and deployments in 2005.

Nortel Networks has designed, installed and launched more than 300
wireless networks in over 50 countries. Nortel Networks was the
industry's first supplier with wireless networks operating in all
advanced radio technologies, and is the only end-to-end provider of all
next generation wireless solutions.

About QUALCOMM

QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing and
delivering innovative digital wireless communications products and
services based on the Company's CDMA digital technology. Headquartered
in San Diego, QUALCOMM is included in the S&P 500 Index and is a 2004
FORTUNE 500® company traded on The Nasdaq Stock Market® under the
ticker symbol QCOM.

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 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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