September 20, 2005 09:59 ET

Nortel Commits to Bridging Communications Divide in Developing Markets; Aims to Identify Community to Demonstrate Impact of Communications

LONDON--(CCNMatthews - Sep 20, 2005) -

Nortel (NYSE:NT)(TSX:NT) today launched a 'Connecting Communities' initiative with plans to provide a community in a developing market with wireless broadband-enabled services and applications.

At a press conference in London, Nortel outlined its plan to identify a potential site where it can work to highlight the positive impact of communications networks on healthcare, education and economic development. The Connecting Communities initiative was launched by Bill Owens, vice chairman and chief executive officer, Nortel and Steve Pusey, president, EMEA (Europe, Middle East, Africa) and Asia Pacific, Nortel.

"The developing world can benefit enormously from new communications technology," Owens said. "It has the potential to enhance lives and change the socio-economic profile of a region."

Nortel will be searching across the developing markets in its Africa region for a suitable community with minimal fixed or wireless communications services and with a collective desire to exploit its benefits. In partnership with its wide base of service provider customers, Nortel will gather information on where its technology can be put to best use.

"Leading the development of advanced, broadband wireless communications reduces the cost involved in providing wireless network access in developing markets," Pusey said. "Wireless penetration in Africa is already more than double that of fixed networks, and we feel that there is an opportunity for communications access to be made available to more remote and dispersed areas to stimulate economic, healthcare and educational development."

Nortel aims to demonstrate the applicability of information and communication technologies to improve or solve issues in developing markets. The potential benefits of the Connecting Communities project include giving local trades people and businesses access to new markets and services, enabling better educational opportunities, and providing improved healthcare.

Nortel believes that its CDMA wireless solutions based on the 450MHz band are particularly well suited to providing some broadband connectivity in remote and dispersed regions of Africa. As announced on August 11, 2005, Nortel is working with Movicel in Angola to roll out CDMA2000 1xEV-DO technology to boost capacity of its MoviNet Service and to help address growing nationwide demand for advanced wireless data services like telemedicine and Internet access.

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. CDMA2000 is a trademark of the Telecommunications Industry Association (TIA).

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