Nortel
NYSE : NT
TSX : NT

Nortel

July 19, 2005 09:00 ET

Nortel Works with Industry Leaders to Drive New Global Standard for Mesh Wireless Local Area Networks; Wi-Mesh Alliance to Present Proposal to IEEE 802.11 Task Group S

SAN FRANCISCO--(CCNMatthews - Jul 19, 2005) -

Nortel (NYSE:NT)(TSX:NT) and the other members of the Wi-Mesh Alliance are working together to help standardize mesh wireless local area networks (WLAN) around the world to promote interoperability of a wide range of wireless communication devices and services.

As a result of extensive technical collaboration with its partners, the Wi-Mesh Alliance will present later today its proposal for a new global mesh WLAN standard to the Institute of Electrical and Electronics Engineers Inc. (IEEE) 802.11 Task Group S (TGs) meeting on wireless mesh in San Francisco.

The Wi-Mesh Alliance is a group of companies with a common view toward rapidly achieving a mesh WLAN standard that will enable seamless communications for wireless users regardless of equipment vendor. The Wi-Mesh Alliance proposal was developed under the guidelines of the IEEE Standards Association. It builds on existing and pending 802.11 protocols to maximize technology re-use and compatibility.

"The ever expanding proliferation of wireless devices and communication services has made the development of a worldwide standard for mesh WLANs critical to their future success," said Mark Whitton, vice president, Wireless Solutions, Nortel. "Wireless users expect secure seamless access anywhere, anytime, and the new standard proposed by the Alliance is designed to enable mesh WLANs to meet those expectations as wireless communications continue to evolve. Nortel has worked closely with the Alliance to develop the new standard by contributing the best of our company's global experience and leadership in deploying mesh networks."

The Alliance is a diverse set of industry leaders, including Accton Technology Corporation, ComNets RWTH Aachen University, InterDigital Communications Corporation (NASDAQ: IDCC), NextHop Technologies Inc, Nortel, Thomson (NYSE: TMS), and others.

Mesh technology provides a cost-effective way to extend WLAN coverage for businesses and consumers, both indoors and outdoors throughout large areas like cities, campuses, shopping malls and airports. Nortel's Wireless Mesh Network solution has been deployed by businesses, universities and government agencies, including Taipei City and Kaohsiung City in Taiwan, The University of Arkansas, Edith Cowan University in Australia, and Seo Won University and Black Stone Golf & Resort in Korea.

The Wi-Mesh Alliance proposal's design intent is to be extensible with the future 802.11n high throughput amendment. This approach will provide support for the existing worldwide Wi-Fi network installed base, while extending Wi-Fi network deployments within designated radio frequency (RF) spectrum.

For Highlights of the Wi-Mesh Alliance proposal see www.wi-mesh.org.

About Accton Technology Corporation

For more than 18 years, Accton (TAIEX: 2345) has been making partnerships work; designing, developing and manufacturing innovative technology for top-tier networking, computer, and telecommunications vendors. The company's robust and constantly-evolving core technology and highly-qualified employees allow Accton to produce the best in networking and communications technology that keeps people connected around the world and across the office. Headquartered in the heart of Taiwan's Hsinchu Science-Based Industrial Park, Accton's teams of engineers work on location with partners and from Accton R&D centers around the globe. For more information about Accton and its subsidiaries, visit www.accton.com.

About ComNets

ComNets (www.comnets.rwth-aachen.de), the Chair of Communication Networks at RWTH Aachen University, is one of the largest university departments in Germany working on mobile communications. Research projects are mainly funded by third parties like national and European boards and communication industries. The research activities of about 40 fully employed research assistants are focused on design and further development as well as quantitative performance analysis of mobile communication systems like IEEE 802.15 (WPAN), 802.11 (WLAN) and 802.16 (WMAN), GPRS, TETRA, EDGE, UMTS, DSRC, Wireless Mesh Networks, ETSI HiperLAN/2 and HiperMAN. Stochastic simulation based on emulated protocol stacks and traffic theory are the main analysis methods. Essential results of ComNets' work have been incorporated into various standards as e.g. ETSI-GPRS, CEN-DSRC, ETSI/HiperLAN/2 & IEEE 802.11.

About InterDigital Communications Corporation

InterDigital designs, develops and provides advanced wireless technologies and products that drive voice and data communications. The company offers technology and product solutions for wireless applications that deliver time-to-market, performance and cost benefits, as well as product differentiation advantages to its commercial and government/military customers. InterDigital has a strong portfolio of patented technologies covering 2G, 2.5G, 3G and 802 standards, which it licenses worldwide. For more information, please visit InterDigital's web site: www.interdigital.com. InterDigital is a registered trademark of InterDigital Communications Corporation.

About NextHop Technologies

NextHop Technologies® Inc. is the definitive source for networking software solutions. NextHop partners with its customers and the industry to empower innovation in networking. The NextHop Dynamic Network Architecture (DNA) provides a framework for integrating NextHop's products and software components from NextHop's partners to provide complete software solutions. NextHop's flagship product, GateD®, provides a scalable and manageable solution for routing, MPLS, and LAN switching. NextHop's new WLAN software products, WCS and WAPS, provide a similar solution for wireless LANS. Both GateD and NextHop wireless software solutions are safe and reliable products that reduce time to market while minimizing development, testing and support costs. Founded in 2000 and funded by New Enterprise Associates, Labrador Ventures, Parker Price Venture Capital, and Duchossois Technology Partners, NextHop is based in Mountain View, Calif. For more information, visit www.nexthop.com.

About Thomson

Partner to the Media & Entertainment Industries Thomson (Euronext Paris: 18453; NYSE: TMS) provides services, systems and technology to help its Media & Entertainment clients - content creators, content distributors and users of its technology - realize their business goals and optimize their performance in a rapidly changing technology environment. The Group is the preferred partner to the Media & Entertainment Industries through its Technicolor, Grass Valley, RCA and Thomson brands. The Corporate Research Lab in Princeton involved in the current project is one of nine world-wide research labs in Thomson. For more information: www.thomson.net.

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, 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 and the Globemark are trademarks of Nortel Networks. Interdigital is a trademark of Interdigital Communications Corporation. NextHop and NextHop Technologies are trademarks of NextHop Technologies Inc.

Use of the terms "partner" and "partnership" does not imply a legal partnership between Nortel and any other party.

Contact Information