Nortel

Nortel

March 08, 2005 09:01 ET

Intercable to Bring Triple-Play to Venezuela with Nortel Solutions; Cable Operator to Expand Broadband Services with IP Telephony and Multimedia Applications


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NORTEL

NYSE, TSX SYMBOL: NT

MARCH 8, 2005 - 09:01 ET

Intercable to Bring Triple-Play to Venezuela with
Nortel Solutions; Cable Operator to Expand Broadband
Services with IP Telephony and Multimedia Applications

CARACAS, Venezuela--(CCNMatthews - Mar 8, 2005) -

Intercable, the leading cable service provider in Venezuela, has
selected a cable voice over Internet Protocol (VoIP) solution from
Nortel (NYSE:NT) (TSX:NT) to expand its portfolio of broadband services.

With the upgraded infrastructure, Intercable plans to offer new IP
Telephony and additional multimedia applications to both residential and
enterprise customers across the country as possibly the first
Triple-Play service provider in Venezuela.

"We are continuing a tradition of offering the most advanced services,"
said Eduardo Stigol, president, Intercable. "Nortel has the proven
solutions and solid experience in building IP networks that will allow
us to add IP Telephony and other integrated voice and video
communications to our existing cable and broadband Internet service
options."

The complete portfolio of Nortel Cable VoIP solutions will enable
Intercable to add IP-based voice services like Local and Long Distance
Telephony to its broadband portfolio. The addition of voice services
will position Intercable as a Triple-Play provider, offering consumers a
bundle of voice, high-speed Internet access and television services.

Intercable will deploy Nortel's Communication Server (CS) 2000-Compact,
which enables cable operators to deliver the full suite of traditional
voice services to business and residential customers on a packetized
network. Also included in this deployment will be Nortel's Media Gateway
15000 and 3200, designed to help switch voice calls more
cost-effectively with the public phone network.

Intercable will also implement Nortel's Multimedia Communication Server
(MCS) 5200, a Session Initiation Protocol (SIP)-based media and
application server, to enable enhanced communications regardless of
location, access type or media. The MCS 5200 will allow Intercable to
offer SIP-based multimedia services including desktop video calling,
instant messaging and collaboration tools to its customers.

In 2004, Intercable received the INTE Award, presented by the Izzara
Publishing Group, for best Cable TV provider in the Hispanic TV market
(spanning Latin America, Spain and the United States), specifically for
its constant technology innovation and quality and breadth of services.

"Nortel works with all types of operators in the region and around the
world, delivering leading-edge technology and helping to build advanced
communication infrastructures," said Manuel Terrero, vice president,
Wireline Networks for Nortel in the Caribbean and Latin America. "We are
pleased to work with such a constant innovator as Intercable. Leveraging
our regional expertise and broad portfolio of carrier-grade solutions,
we will deliver a network that will position Intercable to further
improve performance, security and reliability and enhance the
communication experience of its customers."

About Intercable

Intercable is a leader in the Venezuelan paid TV market and an important
provider of high speed Internet services, with speeds up to 4 Mbps.
Backed by internationally recognized shareholders, including Hicks,
Muse, Tate & Furst, Intercable has built the second largest fixed
network in Venezuela and plans to start offering Telephony services
(Cable VoIP) during the second quarter of 2005 in at least 12 cities.

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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