Nortel

Nortel

March 14, 2005 08:00 ET

Nortel Increases Operator Revenue Potential with New Converged Mobility Solution; Technology Designed to Offer Seamless Communications to Subscribers Across CDMA, WLAN Networks


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NORTEL

NYSE, TSX SYMBOL: NT

MARCH 14, 2005 - 08:00 ET

Nortel Increases Operator Revenue Potential with New
Converged Mobility Solution; Technology Designed to
Offer Seamless Communications to Subscribers Across
CDMA, WLAN Networks

NEW ORLEANS--(CCNMatthews - Mar 14, 2005) -

Nortel (NYSE:NT) (TSX:NT) today announced a CDMA WLAN Converged Mobility
solution designed to bridge CDMA wireless networks and wireless local
area networks (WLANs) to provide a seamless communication experience to
end users. This solution will allow CDMA operators to extend the reach
of cellular 3G networks and deliver services more cost effectively by
leveraging WLAN networks.

It will allow the operator to deliver a consistent communications
experience between CDMA and WLAN networks and allow end users to roam
seamlessly between these networks and enjoy feature rich Session
Initiation Protocol (SIP)-based services beyond voice, including video
calling, video conferencing, short messaging service, instant messaging,
e-mail, Web access and other multimedia services -- all from one device
and one phone number. It will also manage subscriber billing information
across networks so that end users can receive one, consolidated bill.

"Operators are looking for innovative solutions that will help squeeze
the most value from their existing network investments and offer a more
compelling experience to subscribers from any location," said Richard
Lowe, president, CDMA, Nortel. "Our wireless LAN capabilities coupled
with our extensive experience in wireless 3G infrastructure will allow
operators to increase revenue potential, build customer loyalty and,
ultimately, gain competitive advantage."

Nortel's WLAN CDMA Converged Mobility solution will be demonstrated at
CTIA Wireless 2005 in New Orleans (Ernest N. Morial Convention Center,
Hall C, Booth #3125) March 14-16. The demonstration will use TABLET
media's iFon™ software application on the dual mode device to enable
Nortel's Multimedia Communication Server (MCS) 5200 services.

Nortel's WLAN CDMA Converged Mobility solution will help decrease
operator costs by allowing them to use WLAN access points as an option
to deploying CDMA base stations and carriers. Operators can leverage
existing Nortel platforms, including Nortel's Call Server 2000 and MCS
5200, to quickly deploy the solution. In addition, the solution is SIP
based and easily integrates into Nortel's recently announced Converged
Multimedia Services (CMS) portfolio.

Nortel will be conducting live market trials globally with leading
operators across the globe later this year.

The solution builds on Nortel's leadership in 3G wireless infrastructure
technology, proven VoIP expertise, more than five years of R&D
investment in SIP and Nortel's Enterprise advanced WLAN portfolio.

Nortel is well-positioned to lead the converged multimedia market space
based on its real world deployment and experience in all key IMS pillar
technologies, including Carrier VoIP, SIP Multimedia, Wireless Packet
Core IP networking, and GSM, UMTS and CDMA radio technologies. Nortel is
a leader in softswitch, packet gateway and multiservice switching
technologies.

Nortel is an industry innovator and at the forefront of all broadband
access technologies, including wide area cellular, wireline and wireless
LAN. 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
(GSM/GPRS/EDGE, CDMA2000 1X and 1xEV-DO, UMTS and WLAN), 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.

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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