Nortel

Nortel

January 05, 2005 04:01 ET

T-Mobile Austria Selects Nortel to Supply GPRS Packet Core; Network Upgrade Will Enable Delivery of New, High-Speed Wireless Services for Customers


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NORTEL

NYSE, TSX SYMBOL: NT

JANUARY 5, 2005 - 04:01 ET

T-Mobile Austria Selects Nortel to Supply GPRS Packet
Core; Network Upgrade Will Enable Delivery of New,
High-Speed Wireless Services for Customers

VIENNA, Austria--(CCNMatthews - Jan 5, 2005) -

T-Mobile Austria has selected Nortel (NYSE:NT)(TSX:NT) to replace its
existing packet core network with a General Packet Radio Service (GPRS)
solution for delivery of multimedia and 'always on' high-speed wireless
data services to its customers.

With this award, Nortel now provides its GPRS packet core platform to
five companies within T-Mobile (TMO) International's European group.
This includes companies in Germany, the UK, the Netherlands and the
Czech Republic.

The GPRS solution from Nortel will make it possible for T-Mobile Austria
to achieve operational efficiencies through reduced network complexity
and operating expenses and fast introduction of new services. This
solution will also provide a foundation for evolution to advanced third
generation (3G) capabilities to meet market demand. T-Mobile Austria
will be able to deploy such content aware services as flexible billing,
which gives subscribers the option to be billed by content accessed,
time spent downloading, or volume of data downloaded.

"T-Mobile Austria is the only Austrian mobile operator to offer GPRS
roaming with more than 100 roaming partners around the world," said
Gunther Ottendorfer, technical director, T-Mobile Austria. "This gives
our customers access to their company network at any time from abroad.
Objective tests have also shown that T-Mobile Austria has a high
performance, stable and secure GPRS network. In the upcoming year 2005,
we will further improve GPRS."

"The selection of Nortel for T-Mobile Austria's network upgrade
demonstrates our continued market momentum and validates our leadership
position in packet core solutions," said Peter MacKinnon, president,
GSM/UMTS Wireless Networks, Nortel.

Nortel's end-to-end packet core solution offers operators a high
capacity, proven solution that enables delivery of rich data services,
including multimedia and voice over packet applications. Nortel has
designed, installed and launched more than 300 wireless networks in over
50 countries across the globe. 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.

Nortel has been a supplier of GPRS and 3G networking gear for T-Mobile
International's Pan-European network since 2002, and currently supplies
3G networking equipment to T-Mobile International in five countries.

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 Nortel's
independent review and planned restatement or revisions of its
previously announced or filed financial results; the resolution of the
accounting issues announced on November 11, 2004, including the outcome
of discussions with the United States Securities and Exchange Commission
(SEC); the impact of the management changes announced on April 28, 2004
and August 19, 2004; the impact of the inability to meet Nortel's filing
obligations on support facilities and public debt obligations; any
potential delisting or suspension of the Company's or NNL's securities;
the adverse resolution of litigation, investigations, intellectual
property disputes and similar matters; 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; the communication by Nortel's auditors of the
existence of material weaknesses in internal controls; Nortel's ability
to recruit and retain qualified employees; fluctuations in Nortel's cash
flow, level of outstanding debt and current debt ratings; 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 flows; 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 of Nortel's 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 Form 10-Q/A and Form 10-K/A 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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