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Nortel

June 11, 2009 06:00 ET

Lithuania Railways Completes First GSM-R Call Powered by Nortel

GSM-R Call Demonstrates LitRail Commitment to EC Railway Standards

VILNIUS, LITHUANIA--(Marketwire - June 11, 2009) - Lithuania Railways has made Lithuania's first GSM-R call made possible with Nortel* (TSX:NT)(OTCBB:NRTLQ) GSM-R technology. The historic first call was completed on the Vilnius and Kaunas route which is one of Lithuania's busiest rail lines. The GSM-R call took place on June 11, 2009 and marks the official start of the field pilot phase of the LitRail GSM-R project that is scheduled to be completed by the end of 2010.

The multi-million euros countrywide GSM-R contract was signed December 2007 between LitRail and the Nortel/Belam Consortium. The deployment includes implementation of a GSM-R radio communication system along 1,560 kilometers (approximately 88% of the country's rail network) of Lithuania's rail routes. This is the first GSM-R project in the Baltic region and it will enable LitRail to comply with European Commission (EC) railway standards and provide high-speed, dependable communications to help make railways in Lithuania faster and safer.

"The launch of the new GSM-R system shows that LitRail is at the forefront of helping to make rail communications faster, safer, and more reliable than before," said Laisvydas Rudzianskas, GSM-R project manager, Lithuania Railways.

"Nortel is number one in GSM-R worldwide," said Sorin Lupu, president, Eastern European Markets, Nortel. "GSM-R is helping increase the efficiency, speed, services, safety and reliability of the world's railways and is also helping to make this form of transportation more competitive compared to others such as road transport and short-haul aviation. Nortel's attention to developing energy-efficient solutions can also lead to operational cost reductions for railway operators."

Nortel's GSM-R technology will help increase railway efficiency and safety by providing reliable and secure communications among railway operational staff, including conductors, dispatchers, train engineers and station controllers. GSM-R is also part of the European Rail Traffic Management System (ERTMS) standard that combines GSM-R for voice communication and European Train Control System (ETCS) for signaling systems. ERTMS carries the signaling information directly to the train conductor and operates traffic crossroad signals, enabling faster train speeds and higher traffic density while maintaining a high level of safety.

The new network includes Nortel All-IP Voice Core solution for rail operators based on the Advanced Telecommunications Computing Architecture (ATCA) platform. It provides a robust carrier-grade voice network using GSM-R infrastructure to deliver instant mobile communications benefits even at high-speeds. The system also provides the switching, mobility and subscriber management functions needed to achieve seamless and secure operation of wireless voice service for railway operations. And it helps reduce operational costs through ease-of-maintenance, improved network management features and the ability to operate efficiently using less power.

"Belam has worked with Nortel for more than 15 years, and I'm confident that together we will bring the project to successful and timely implementation, acting in strict compliance with the project timeline and original tender requirements. We are combining the technology, global experience and commitment to innovation and continuous R&D to produce the very best solution for LitRail," said Dmitry Krupnikov, director for business development, Belam. "The LitRail GSM-R project is a good example of how telecom technologies can help a region's economy, as an effective transportation system for the busiest geographic trade crossroads in the Baltic can bring untold benefits to the region."

Nortel has over 15 years experience with GSM-R mobile communications technology and is currently providing GSM-R on three continents. With close to 60 percent of the more than 115,000 km of tracks using the GSM-R system, Nortel is the number one GSM-R provider globally. Nortel has been awarded national GSM-R contracts in Austria, Bulgaria, France, Germany, Lithuania, and the UK as well as large GSM-R deployments in Algeria, China, the Czech Republic, Italy, India, Slovakia, Spain, and Turkey.

About Belam

Belam is a group of companies in the USA, Latvia, Lithuania, Russia and Belarus with more than 200 employees. Belam is a system integrator which has been operating in the Baltic countries since 1993.

Belam implements modern technologies in voice and data networks, develops optical, wire and wireless solutions for corporate and carrier needs. The company's main projects are linked to telecommunication networks in transport, military, security, financial, healthcare and business areas. Most projects are based on Nortel, Harris Stratex Networks and Keymile solutions. By keeping in step with the most advanced technologies, Belam is able to understand and meet the needs of its clients in the best possible way. Hundreds of companies have turned to Belam for innovative thinking and flexibility.

About Nortel

Nortel is a recognized leader in delivering communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate today's barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.

Certain statements in this press release may contain words such as "could", "expects", "may", "anticipates", "believes", "intends", "estimates", "targets", "envisions", "seeks" and other similar language and are considered forward-looking statements or information under applicable securities legislation. These statements are based on Nortel's current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Nortel operates. These statements are subject to important assumptions, risks and uncertainties, which are difficult to predict and the actual outcome may be materially different from those contemplated in forward-looking statements. For additional information with respect to certain of these and other factors, see Nortel's Annual Report on Form10-K, Quarterly Reports on Form 10-Q and other securities filings 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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