Nortel

Nortel
Sierra Wireless

February 03, 2005 04:00 ET

Sierra Wireless, Nortel Complete Broadband Wireless Calls; Collaboration Yields First HSDPA Drive Calls Using Commercial Data Cards


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NORTEL

NYSE, TSX SYMBOL: NT

AND SIERRA WIRELESS

NASDAQ SYMBOL: SWIR

FEBRUARY 3, 2005 - 04:00 ET

Sierra Wireless, Nortel Complete Broadband Wireless
Calls; Collaboration Yields First HSDPA Drive Calls
Using Commercial Data Cards

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

Nortel (NYSE:NT) (TSX:NT) and Sierra Wireless (Nasdaq:SWIR) (TSX:SW) are
collaborating to jointly test and market solutions using High Speed
Downlink Packet Access (HSDPA), an emerging broadband wireless
technology. The companies have completed an initial series of live test
calls, including the industry's first using a data card product slated
for commercial release.

The companies completed the live test calls using Sierra Wireless
AirCard® 850 wireless wide area network cards and commercial UMTS
network equipment from Nortel. The calls were made from a laptop
computer in a moving automobile with connection speeds averaging 800
kilobits per second (with peak data rates in excess of 1 megabit per
second).

Broadband services demonstrated included 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.

"A tested, interoperable HSDPA solution allows network operators to
upgrade their networks to support true broadband speeds with
confidence," said Jason Cohenour, chief operating officer, Sierra
Wireless. "Sierra Wireless is committed to providing our customers with
the most advanced 3G solutions in the industry, and we are pleased to
work with Nortel to test and refine our HSDPA products to offer the best
possible customer experience."

"Nortel has established a legacy in innovation and will continue to push
the envelope in delivering faster and more efficient wireless
capabilities with industry leaders like Sierra Wireless," said Peter
MacKinnon, president, GSM/UMTS, Nortel. "Broadband technologies like
HSDPA enable operators to squeeze the most out of their existing Nortel
UMTS infrastructure investments while dramatically enhancing the end
user experience."

Nortel recently announced plans for a major Pan-European HSDPA network
deployment with mmO2 and is working with a number of other leading
global operators on HSDPA trials and deployments in 2005. Commercial
field trials with the Sierra Wireless AirCard 850 are expected to begin
in 2005.

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 is
designed to significantly reduce operating costs while delivering a
better end-user experience.

The latest addition to Sierra Wireless' award-winning AirCard product
line, the AirCard 850 utilizes the 2100 MHz UMTS frequency band and is
targeted primarily for use in Europe. The card will also be compatible
with EDGE and GSM/GPRS networks on all four GSM frequency bands (850,
900, 1800, and 1900 MHz), for worldwide use in areas where a UMTS
network connection is not available. Commercial availability of the
AirCard 850 wireless network card is expected in the second half of
2005.

The broadband calls were completed in and around Nortel's Wireless
Center of Excellence in Chateaufort, France using commercially-available
UMTS Base Transceiver stations. Nortel's equipment is designed to be
HSDPA-ready and to cost-effectively upgrade to support HSDPA through a
simple software installation.

Nortel has designed, installed and launched more than 300 wireless
networks in over 50 countries. Nortel 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 Sierra Wireless

Sierra Wireless is a leader in delivering highly differentiated wireless
solutions that enable our customers to improve their productivity and
lifestyle. Sierra Wireless develops and markets the AirCard, the
industry-leading wireless PC card line for portable computers; embedded
modules for OEM wireless applications; the MP line of rugged
vehicle-mounted connectivity solutions; and Voq, a line of mobile phones
with easy-to-use, secure software solutions for mobile professionals.
For more information about Sierra Wireless please visit
www.sierrawireless.com.

This press release contains forward-looking statements that involve
risks and uncertainties. These forward-looking statements relate to,
among other things, plans and timing for the introduction or enhancement
of our services and products, statements about future market conditions,
supply conditions, channel and end customer demand conditions, revenues,
gross margins, operating expenses, profits, and other expectations,
intentions, and plans contained in this press release that are not
historical fact. Sierra Wireless' expectations regarding future revenues
and earnings depend in part upon our ability to successfully develop,
manufacture, and supply products that we do not produce today and that
meet defined specifications. When used in this press release, the words
"plan," "expect," "believe," and similar expressions generally identify
forward-looking statements. These statements reflect our current
expectations. They are subject to a number of risks and uncertainties,
including, but not limited to, changes in technology and changes in the
wireless data communications market. In light of the many risks and
uncertainties surrounding the wireless data communications market, you
should understand that we cannot assure you that the forward-looking
statements contained in this press release will be realized.

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.

"AirCard" is a registered trademark of Sierra Wireless. "Voq
Professional Phone" is a trademark of Sierra Wireless, Inc. Other
product or service names mentioned herein may be the trademarks of their
respective owners.

Nortel, the Nortel logo and the Globemark are trademarks of Nortel
Networks.

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