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Nortel

June 12, 2008 08:00 ET

Nortel Upgrade Keeps Deutsche Bahn's Wireless Railroad Network Running Smoothly

Continuing Service Delivery Along 24,000km GSM-R Network, Enhancing Communications, Optimizing Train Performance

FRANKFURT/MAIN, GERMANY--(Marketwire - June 12, 2008) - Deutsche Bahn AG is adding powerful communications and train management capabilities along its busy 24,000 kilometer (almost 15,000 mile) rail network by increasing communications capacity and improving cost-effectiveness with a GSM-R upgrade from Nortel(1) (TSX:NT)(NYSE:NT).

Nortel first deployed GSM-R - a wireless technology, specially designed to meet the needs of railways - for Deutsche Bahn in 1999. The current upgrade is key to Deutsche Bahn's strategic plans for reducing operational costs and maintaining high standards of passenger safety on trains travelling at higher speeds on routes across Germany.

Nortel is helping Deutsche Bahn to drive down costs by enhancing and simplifying the network's base station controllers so that fewer, more powerful pieces of equipment can be used to support additional features for high speed trains. The controllers are being integrated using the existing Nortel-delivered core (NSS), intelligent network (IN), terminals and access (BSS) networks. With Nortel's technology, Deutsche Bahn is simplifying the network and at the same time remains able to implement evolving technology solutions in future.

"At Nortel our innovation is focused on making business simple for our customers," said Wim te Niet, president, Central Europe. "We have this focus because the evolution of technology is rapid, and the conflict between legacy systems, platforms and approaches can slow business. By continually simplifying and enhancing Nortel GSM-R technology solutions we can deliver a solution for Deutsche Bahn that enhances communications and improves business efficiency without adding complexity."

Under the current contract, Nortel will deploy Base Station Controller (BSC) 3000 and Transcoder (TCU) 3000 Units along the entire Deutsche Bahn GSM-R network. The Nortel BSC 3000 delivers higher data and voice capacity and the ability to connect to a larger number of base stations. The upgrade also provides capacity for a potential prospective implementation of evolved wireless standards such as EDGE (Enhanced Data rates for GSM Evolution) for GSM-R.

Nortel has over 10 years of experience with GSM-R mobile communications technology and supplies solutions to 60 percent of the more than 100,000 km of tracks currently using the system. With GSM-R deployments on three continents, Nortel has the biggest footprint in the industry. Nortel has national GSM-R contracts in Austria, France, Germany, and the UK as well as large GSM-R deployments in Algeria, China, the Czech Republic, Italy, India, Lithuania, Slovakia, and Spain. Nortel is continuing to develop its GSM-R technology offering a new core and access portfolio of products.

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.

(1)Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.

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