September 07, 2005 08:13 ET

KTF Selects LGE, Nortel as Primary Vendors for Ultra High-Speed Wireless Service in Korea

SEOUL, KOREA--(CCNMatthews - Sept. 7, 2005) -

Initial Phase of Mobile Broadband Experience Set for Seoul, 16 Other Cities by December 2005

KTF, one of Korea's leading cellular providers, has selected LG Electronics (LGE) and Nortel (NYSE:NT)(TSX:NT) to power its new ultra high-speed broadband wireless communication service throughout Korea's major metropolitan areas including Seoul.

Nortel will provide HSDPA-based access equipment, while LGE will furnish the UMTS core network solution for this service. This is the first collaborative win for LGE and Nortel since announcement of the LG-Nortel joint venture in August 2005.

The 3G UMTS solution with HSDPA will allow KTF subscribers to access new wireless multimedia services such as high-speed music transfers, real-time DVD-quality video, gaming applications, videoconferencing and split-second multimedia collaboration. KTF's HSDPA wireless network will be capable of delivering services at download speeds up to 14.4 Mbps - 30 times faster than today's commercially deployed wireless networks.

Beginning with Seoul, KTF plans to roll out its HSDPA-ready broadband wireless network to 17 cities by December 2005, and to extend it to an additional 45 cities by June 2006.

"Our selection of LGE and Nortel as the UMTS/HSDPA broadband wireless service supplier is based on the trust we have in Nortel's global strength in wireless technologies and strong support capabilities through the LG-Nortel joint venture," said Won-Jin Park, executive vice president, KTF. "We chose the Nortel solution because we believe it will enable us to bring KTF subscribers new and unprecedented levels of wireless speed and functionality and help us to maintain our position as a global leader in mobile broadband."

"Nortel has actively developed and tested HSDPA technologies, and our selection together with LGE by KTF confirms our networking strengths in emerging broadband wireless technologies," said Peter MacKinnon, president, GSM/UMTS, Nortel. "HSDPA is the first step in the evolution beyond 3G, and we look forward to working with KTF to help realize the full potential this exciting new technology can deliver."

Korea has the highest broadband penetration in the world and is an early adopter of cutting-edge mobile technology.

Nortel was the first to make HSDPA drive calls in January 2005. In March 2005, Nortel and LG Electronics completed the industry's first live test calls using a commercial handset solution for HSDPA. In June 2005, Nortel became the first wireless network supplier to complete the TL9000 registration standard for Quality Management System Requirements and Measurements across its end-to-end portfolio of hardware, software and services for HDSPA, UMTS and GSM wireless infrastructure solutions. This quality certification milestone underscores the breadth of Nortel's UMTS solutions, which include solutions across all probable frequency ranges and multiple base station configurations.

Nortel has worked with a number of wireless operators on HSDPA trials and deployments in 2005, including SOFTBANK Group's BB Mobile, mmO2, Orange (at 3GSM World Congress 2005 in Cannes, France), Vodafone (at CeBIT 2005 in Hanover, Germany), Partner Communications in Israel, and mobilkom austria.

Nortel has designed, installed and launched more than 300 wireless networks in over 70 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, as well as edge and core network solutions for IP, ATM and optical transport.

LGE and Nortel executed a joint venture agreement on August 17, 2005 to establish a joint venture company in the area of telecommunication infrastructure businesses. The joint venture company is scheduled to be established within this year, subject to fulfillment of certain conditions provided in the agreement.

About LG Electronics

LG Electronics is a global leader in providing cutting-edge convergent electronics, information and communications products designed to meet the diverse needs of fast-changing consumers. With consolidated sales of US$37.7 billion and overseas sales of US$32.6 billion (86 percent of total sales), LG Electronics employs more than 70,000 employees in 76 subsidiaries located in 39 countries and operates four business units including Mobile Communications, Digital Appliance, Digital Display and Digital Media. LG Electronics Mobile Communications Company is the world's leading manufacturer of WCDMA (UMTS), CDMA and GSM handsets, and the fastest growing manufacturer of mobile phones worldwide. The company provides a total range of wired and wireless solutions, and is rapidly establishing a global presence as it cultivates international market share in 3G handsets. For more information please visit

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 For the latest Nortel news, visit

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.

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

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