Nortel
OTC Bulletin Board : NRTLQ

Nortel

August 27, 2009 09:00 ET

Nortel and LG Electronics Complete World's First 3GPP Compliant Active Handover Between CDMA and LTE Networks

Interoperability Provides Operators and Subscribers with a Smooth Evolution to 4G

OTTAWA, ONTARIO--(Marketwire - Aug. 27, 2009) - Nortel* (OTCBB:NRTLQ) and LG Electronics** have demonstrated the world's first 3GPP standards compliant active handover of a data transmission between a LTE network and a CDMA network. The demonstration showed that online activities like video downloads, web surfing, and VoIP calls can be maintained when a mobile data user moves between LTE and CDMA coverage zones. Nortel's CDMA business and LTE Access assets are the subject of an asset sale agreement with Telefonaktiebolaget LM Ericsson ("Ericsson") set to close in the fall of 2009.

LG Electronics (LG), a global leader and technology innovator in mobile communications, has contributed to this demonstration by developing its CDMA/LTE device, the M13. LG has focused on developing CDMA/LTE devices and equipment since 2006 to drive the next generation of mobile technology, and achieved prominence by unveiling the world's first modem chipset for 4G LTE devices in December 2008.

Operators around the world are preparing to launch LTE with major deployments expected as early as 2010. Initial LTE networks will co-exist with today's CDMA networks until, over time, they expand to provide wide scale 4G mobile broadband coverage. Inter-technology handover allows mobile users to move between a LTE and a CDMA network without losing their data connectivity. This means that operators can run these networks concurrently without impacting services. This will help to ensure that users have full network coverage while taking advantage of LTE speeds, wherever initially available.

"Nortel innovation will help CDMA operators enjoy a smooth migration to LTE," said Larry Murat, vice president of LTE R&D, Nortel. "Although CDMA networks will remain the primary networks for many years to come, LTE will become a key piece of the networking puzzle as early as next year. With interoperability between LTE and CDMA networks on a single device, Nortel and LG are enabling operators to provide their subscribers with the speed of LTE wherever it is available backed up by the far-reaching reliability of CDMA. This is important to operators who want to provide robust and consistent service throughout their evolutions to 4G."

"The 2010 LTE commercial launch for CDMA operators represents a milestone. LG's new M13 terminal technology is the key to enabling CDMA network operators an incremental LTE network deployment over a national CDMA network," said In-Kyung Kim, vice president of 4G Development, LG Electronics. The test by Nortel and LG Electronics successfully demonstrates standards-compliant CDMA-LTE interworking. This enables idle mode handover between CDMA and LTE, and active mode handover from LTE to CDMA leveraging device assisted, network controlled functionality. The demonstration was conducted over 700MHz spectrum using Nortel CDMA Evolved High-Rate Packet Data (eHRPD) 1xEV-DO and Nortel Long Term Evolution (LTE) solution with LG Electronics' dual-mode CDMA-LTE M13 terminal. The M13 terminal is a test device created with commercial grade components that will form the basis for a consumer device which is expected to be available in 2010.

The handover between LTE to CDMA networks was completed in a Live-Air Drive Test at Nortel's Research and Development centre in Ottawa, Canada.

About LG Electronics, Inc.

LG Electronics, Inc. (KSE: 066570.KS) is a global leader and technology innovator in consumer electronics, mobile communications and home appliances, employing more than 84,000 people working in 115 operations including 84 subsidiaries around the world. With 2008 global sales of $44.7 billion, LG comprises of five business units – Home Entertainment, Mobile Communications, Home Appliance, Air Conditioning and Business Solutions. LG is one of the world's leading producers of flat panel TVs, audio and video products, mobile handsets, air conditioners and washing machines. LG has signed a long-term agreement to become both A Global Partner of Formula 1(TM) and A Technology Partner of Formula 1(TM). As part of this top-level association, LG acquires exclusive designations and marketing rights as the official consumer electronics, mobile phone and data processor of this global sporting event.

The LG Electronics Mobile Communications Company is a leading global mobile communications and information company. With its cutting-edge technology and innovative design capabilities, LG creates handsets that provide an optimized mobile experience to customers around the world. LG is pursuing convergence technology and mobile computing products, while continuing its leadership role in mobile communication with stylish designs and smart technology. For more information, please visit www.lge.com.**

About Nortel

Nortel delivers 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. 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.

**This is a 3rd party link as described in our Web linking practices.

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