Nortel
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Nortel

July 14, 2005 09:00 ET

Bell Canada, Nortel to Help Bridge Digital Divide in Chapleau

CHAPLEAU, Ontario--(CCNMatthews - Jul 14, 2005) -

Make Joint Commitment to Deliver High-Speed Broadband Services, Applications to Northern Ontario Community

Bell Canada and Nortel (NYSE:NT)(TSX:NT), and the Town of Chapleau, Ontario, today launched Project Chapleau, a joint initiative to research the impact of advanced technology on rural and dispersed communities.

Project Chapleau will evaluate the positive effect of technology and how it stimulates economic, healthcare, education and social activity in the community. The two companies will contribute technology and other resources to enable broadband access service in Chapleau, as well the applications necessary to fully leverage this technology.

"This is a transformation project -- one that holds the promise of economic viability for our community," said Chapleau Mayor Earle Freeborn. "The support of Bell Canada and Nortel is crucial to communities such as ours, not only in providing technology and applications that we would not have access to, but in bringing partnerships together that will help us move forward on many levels."

"Over the next 18 months, we will work with Bell Canada and Nortel to analyze the long-term economic needs of the community and determine how to best use these new broadband services and business-driven applications to further and improve the quality of life for our citizens," Mayor Freeborn said.

Chapleau is a Northern Ontario community of approximately 3,000 people and lies about 320 kilometers northeast of Sault Ste. Marie. Chapleau, whose main industries are rail transportation and forestry, is located within the Boreal Forest Region and the Arctic Watershed. The community is locally known as the gateway to the world's largest Crown nature preserve -- the 700,000-hectare Chapleau Crown Game Preserve.

Deployment of broadband access and applications in the community is expected to stimulate economic growth, social development and education. For example, new online tourism programs will help attract new visitors and businesses. Access to new telemedicine will help Chapleau's network of health professionals improve quality of care. Broadband e-learning services will provide new and exciting opportunities for both students and teachers in local schools.

"This is a partnership that will deliver real solutions to the challenges facing rural and remote communities in today's technology driven economy," said Lawson Hunter, executive vice-president and chief corporate officer, BCE and Bell Canada. "Bell Canada is proud to be working together with Chapleau and Nortel to stimulate community development and quality of life."

The two companies will help Chapleau bridge the digital divide, connect and ultimately compete with other communities worldwide. As part of this technology showcase, Nortel plans to contribute wireless mesh, optical, voice over Internet protocol (VoIP) and multimedia communications solutions, as well as to provide installation and professional services for the entire project. Bell Canada plans to upgrade its fiber network into Chapleau and will operate as the service provider for the town's new network. These technology donations, applications and know-how will help remove the economic barriers to delivery of advanced services in the area.

"Broadband is vital to the renewal and regeneration of communities like Chapleau," said Brian McFadden, chief research officer, Nortel. "Broadband service is expected to be the foundation for Chapleau to grow economically and culturally, giving local businesses access to new markets and services, enabling better educational opportunities for citizens, and encouraging people to stay within the community. Connecting people throughout the world, regardless of location, results in previously unavailable new resources, and Nortel is proud to work with the people of Chapleau and Bell Canada to help create sustainable communities in this way."

Bell and Nortel have created a Project Chapleau Web site to provide the public with information and updates about this initiative. For more information, please visit www.projectchapleau.sl.ca.

About Bell Canada

Bell Canada, Canada's national leader in communications, provides connectivity to residential and business customers through wired and wireless voice and data communications, local and long distance phone services, high speed and wireless Internet access, IP-broadband services, e-business solutions and satellite television services. Bell Canada is wholly owned by BCE Inc. For more information please visit www.bell.ca.

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, and any related potential dilution of Nortel's common shares; 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 control over financial reporting and the conclusion of Nortel's management and independent auditor that Nortel's internal control over financial reporting is ineffective, which could continue to impact Nortel's ability to report its results of operations and financial condition accurately and in a timely manner; the impact of Nortel's and NNL's failure to timely file their financial statements and related periodic reports, including 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 Nortel's and NNL's public filings; 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 and December 14, 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; increased consolidation among Nortel's customers and the loss of customers in certain markets; 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 monitoring of the capital markets for opportunities to improve its capital structure and financial flexibility; 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 and consolidation 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 of Nortel's forward purchase contracts; negative developments associated with Nortel's supply contracts and contract manufacturing agreements, including as a result of using a sole supplier for a key component of certain optical networks solutions; 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.

Use of the terms "partner" and "partnership" does not imply a legal partnership between Nortel and any other party.



Nortel will host a teleconference to discuss the Chapleau initiative.

TIME: 11:30 a.m. - 12:30 p.m. EDT on Thursday, July 14, 2005.

To participate, please call the following at least 15 minutes prior to
the start of the event:

Teleconference
416-340-8010 or 866-540-8136
Prompt: "Project Chapleau Conference call"

Replay:
(Available one hour after the conference call until 5:00 p.m. EST on
Thursday, July 21, 2005)
416-340-8010 or 866-540-8136
Passcode: 3158812#



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