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September 27, 2005 08:59 ET

Jinan University to Deploy Nortel Wireless Mesh Network; Campus-Wide 'Hotzone' to Enable Indoor, Outdoor Online Access

BEIJING--(CCNMatthews - Sep 27, 2005) -

Jinan University is deploying China's first university campus wireless mesh network at its main campus in Guangzhou using equipment from Nortel (NYSE:NT)(TSX:NT).

The network is designed to support campus mobility by creating a 'hotzone,' providing secure, seamless campus-wide broadband wireless access to the public Internet and university network. Faculty and students will be able to use laptops and handheld computing devices to access university and Internet-based online resources across the entire campus, indoors and outdoors.

The wireless mesh network is expected to be fully operational by October 1, 2005, with wireless VoIP services to follow in a second deployment. Nortel's nPower channel partner LDL Technology is implementing the network.

Jinan's enrollment includes students from 57 different countries, and Nortel's wireless mesh network will help the university increase its worldwide appeal to students seeking to enhance their academic experience with the most advanced technologies. It is the country's largest and oldest university.

The innovative Nortel solution will also support the university in organizing two major upcoming events -- the first Asian University Athletic Championship, which Jinan is hosting in November, and the centenary celebration in 2006 of the university's founding.

"Deploying Nortel's Wireless Mesh Network Solution at Jinan University is a significant milestone in Nortel's ability to enhance the educational experience in China through advanced wireless communications," said Stephen Tsui, chief operating officer, Greater China, Nortel. "The wireless mesh network is ideal for universities, providing a more cost-effective and highly reliable eEducation solution that is designed to allow users to securely and continuously access the network and the Internet while moving around the campus."

Nortel's Wireless Mesh Network solution uses wireless links to connect access points installed inside or outside to provide secure, seamless access to wireless broadband services. This solution allows enterprises, such as universities, to install wireless LANs in areas where it is difficult or cost-prohibitive to run cables. This innovative approach can help reduce dramatically the complexity and cost of deploying a traditional wireless LAN.

The Jinan University solution includes Nortel Wireless Access Point 7220 and 7215, and Nortel Wireless Gateway 7250. Because the solution uses IEEE 802.11 standards, users with Wi-Fi enabled laptops or handheld computing devices can access the university network or Internet without new hardware or software.

Nortel's Wireless Mesh Solution has been deployed at Edith Cowan University in Australia and the University of Arkansas in the United States. Field trials of the Nortel solution are also underway at Taiwan's National University and the Massachusetts Institute of Technology (MIT) in the United States.

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; any undetected product defects, errors or failures; 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.

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