Nortel

Nortel

March 14, 2005 22:00 ET

Nortel Multiservice Switching Solutions Expansion to Support Demand for Taiwan Cellular Corporation's Growing 3G Wireless Data Services


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NORTEL

NYSE, TSX SYMBOL: NT

MARCH 14, 2005 - 22:00 ET

Nortel Multiservice Switching Solutions Expansion to
Support Demand for Taiwan Cellular Corporation's
Growing 3G Wireless Data Services

TAIPEI, Taiwan--(CCNMatthews - Mar 14, 2005) -

Island-Wide Network Delivers UMTS 3G Broadband Services, Applications

Nortel (NYSE:NT)(TSX:NT) today announced that Taiwan Cellular
Corporation (TCC), a leading mobile operator in Taiwan, has deployed
Nortel multiservice switching solutions to support increased island-wide
demand for secure third generation (3G) wireless broadband data
services.

TCC's current deployment extends Nortel Multiservice Switch (MSS)
coverage, which was first established in July 2003 to support TCC's
initial 3G services. The enhanced network based on Nortel's MSS 7000 and
MSS 15000 provides a cost efficient equipment solution for delivery of
3G data services for TCC's mobile customers using both asynchronous
transfer mode (ATM) and Internet Protocol (IP) technologies. The
MSS-based data network is an integral part of TCC's Universal Mobile
Telecommunication System (UMTS) 3G wireless Radio Access Network (RAN).

"Nortel MSS solutions allow us to continue profiting from our existing
network and evolve it as the market demands to support next generation
capabilities for broadband services and applications," said David
Clarke, senior vice president and chief technology officer, Taiwan
Cellular Corporation. "We chose Nortel based on its proven abilities to
deliver wireless data packet core technologies. With Nortel MSS in our
network, we will be able to broaden our service offerings and optimize
our networking costs."

"Nortel MSS is an integral part of our extensive portfolio of wireless
packet solutions, which is designed to help customers enhance the
communications experience for their subscribers," said Jackson Wu,
managing director, Nortel Taiwan. "This deployment of MSS 7000 and 15000
in a UMTS radio access backhaul network further strengthens Nortel's
leadership position in building high-performance multiservice networks
that span both wireless and wireline networks. The proven ability of our
robust ATM traffic management and QoS features of Nortel MSS to support
wireless IP and TDM voice collectively over a common access network
provides tremendous efficiency for TCC as they grow their UMTS
services."

In addition to enabling UMTS RAN applications, TCC will use the Circuit
Emulation Service (CES) provided by Nortel MSS to transport traffic for
its second generation GSM network as well in order to further reduce
private line costs. TCC also plans to use the rich IP service capability
supported by Nortel MSS to integrate its other IP network traffic into
the Nortel MSS network. The ability of Nortel's MSS to support multiple
services on the same hardware offers TCC tremendous flexibility and
investment protection for overall wireless backhaul consolidation and
demonstrates an ability to evolve as TCC's needs evolve.

Nortel recently unveiled enhancements to its MSS 7000 portfolio, which
addresses the growing market for wireless backhaul applications at 3GSM
World Congress 2005.The enhancements included new higher density
interfaces and a new platform option to reduce wireless networking costs
and improve performance.

Nortel was the global market share leader in multiservice switching
revenue for 15 consecutive quarters as of year-end 2004, according to
Synergy Research Group. With more than 45,000 systems shipped to over
1,500 customer networks, Nortel's Multiservice Switching family has
proven field experience in delivering carrier-grade reliability and
service flexibility for mission critical enterprise and service provider
networks worldwide. Nortel's MSS portfolio is deployed with more than 25
major wireless operators and is delivering proven reliability for
wireless packet networking solutions across GSM/GPRS/UMTS, TDMA and
CDMA/CDMA2000 technologies.

About Taiwan Cellular Corporation (TCC)

Established in 1996, Taiwan Cellular Corporation has always strived to
provide its customers with world-class telecom services. TCC aspires to
be the best telecom service provider in network infrastructure, product
offering, technology development, and customer services. The sharp
increase of mobile users and rapid advancement of telecommunications
technology has ushered in a new era of an ever-competitive environment
for telecom operators, and TCC realized that it needs to maximize
benefits for its customers, employees and investors in order to enjoy a
long-term success. While insisting on providing premium services, TCC is
also committed to customer satisfaction and corporate governance. TCC
will continue to strengthen its competitiveness to become the most
reliable telecom operator in Taiwan and create a paradigm for telecom
services in the new era.

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.

-30-

Contact Information