June 01, 2005 22:00 ET

Nortel Wins Taipei's Mobile City Project Phase II Contract to Deploy Wireless Mesh Network; Network to Provide Secure Mobile Services Throughout Commercial Area of Taipei

TAIPEI, Taiwan--(CCNMatthews - Jun 1, 2005) -

Nortel (NYSE:NT)(TSX:NT) has been selected to deploy its Wireless Mesh Networks solution for Phase II of Taipei's Mobile City (M-City) project connecting all Mass Rapid Transport (MRT) system stations and downtown commercial areas to the Internet through wireless access.

Phase II of the "Wireless Taipei, Taipei Unwired" M-City project is expected to be completed by the end of August 2005 and follows Nortel's successful deployment of a Wireless Mesh Network in 2004 supporting Phase I of the project. By the end of 2005, the M-City project will provide anywhere, anytime mobile communications throughout the commercial area of Taipei. The network will be operated by Qware Systems.

When complete, Taipei City's M-City project expects to have over 10,000 access points installed across 90 percent of its 272 square kilometers. Nortel's Wireless Mesh Network solution doesn't require extensive cabling to be laid. The wireless access points have built-in intelligence for managing the network, keeping information flowing if any one point is overloaded or temporarily out of service. In addition to the Wireless Mesh Network, Nortel's Optical Ethernet and IDC firewall solutions will be added.

The biggest engineering challenge for connecting such a large number of access points throughout Taipei City is identifying where each point needs to be placed, then ensuring each location allows transmission of a clear signal without interference. Pinpointing ideal locations for the more than 10,000 access points has been simplified by a new software tool called MeshPlanner. MeshPlanner is designed to allow network designers to provide superior service coverage and secure network access for seamless mobility throughout a city or campus while reducing planning and implementation costs.

"We are glad to cooperate with Nortel once again on the way to building Taipei as a world-class wireless city," said C.S. Lin, chairman of Qware and chief executive officer of the President Group. "Nortel has extensive experience in deploying large-scale wireless networks worldwide and has a strong technical force, support crew and project management expertise in Taiwan. That's why we chose to continue our collaboration with Nortel."

"Nortel is gratified to have been selected again to help the Taipei City Government meet its wireless broadband M-City project objectives," said Jackson Wu, managing director, Nortel Networks Taiwan. "Through the deployment in Phase II, Nortel will also be enhancing the security of the network to assist in ensuring excellent wireless access services to Taipei's citizens."

"It has been a great experience to collaborate with Nortel in Phrase I to complete the wireless deployment of 28 MRT stations and five underground shopping plazas," said S.L. Yang, general manager, Qware Systems. "The deployment for MRT outdoor areas started in mid-May and we expect the deployment of wireless networks throughout all MRT stations will be completed by the end of July. In addition to 23 major street arteries, Taipei citizens will also be able to enjoy the convenience of wireless access throughout the core downtown commercial business district in locations such as Starbucks coffee shops and 7-Eleven convenience stores."

Nortel's Wireless LAN portfolio includes three powerful, complementary offerings: the WLAN 2300 series introduced in March 2005; the Wireless 7200 series -- its Wireless Mesh Network solution; and MeshPlanner, a precise, intuitive planning tool that optimizes wireless mesh network design marketed jointly by Wireless Valley Communications and Nortel. Optical Ethernet and IDC firewall solutions by Nortel will also be rolled out in Phase II. In Phase I of the project, Nortel's comprehensive Wireless Mesh Network solution was selected to implement the network infrastructure, including Wireless Access Point 7220, Wireless Gateway 7250 and Optivity Network Management System.

About Qware Systems

Established in 1975, Qware Systems was an IT components and systems trading company which over 23 years transformed into an IT information services company by 1998. Prior to being acquired by the President Group, it was the Taiwan branch of Wang Laboratories. The company currently provides a diverse range of products covering hardware and software solutions including information security, wireless and ASP service systems together with professional engineering services. Qware solved the constraints of the previous system integrator model and has successfully become a leading network-based information service company. For further information about Qware Systems, please visit (1)

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; 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, the Globemark and Optivity are trademarks of Nortel Networks. MeshPlanner and Wireless Valley are trademarks of Wireless Valley Communications. Starbucks is a trademark of Starbucks. 7-Eleven is a trademark of 7-Eleven, Inc.

(1) This is a 3rd party link as described in Nortel's Web linking practices.

Contact Information