Nortel
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Nortel

June 30, 2005 13:27 ET

SaskTel Mobility Selects Nortel to Expand 3G Network for High-Speed Wireless Voice, Data Services; CDMA2000 1X, EV-DO Technology to Support Canada's 20th Annual Summer Games

TORONTO--(CCNMatthews - Jun 30, 2005) -

SaskTel Mobility, an innovative Canadian wireless communications provider, has selected Nortel (NYSE:NT) (TSX:NT) to expand its 3G (third generation) CDMA2000 1X and 1xEV-DO (Evolution-Data Optimized) network in the province of Saskatchewan.

The network, which is expected to be one of the fastest and most advanced wireless data networks in Canada, will deliver broadband wireless services like e-mail, Web browsing, video mail, wireless gaming and content streaming at speeds close to high-speed wireline connections. Nortel is the sole supplier of SaskTel Mobility's current 1X and EV-DO network.

The network is expected to be available by August 2005 when Regina, the capital of Saskatchewan, hosts the 20th annual Canada Summer Games (http://www.2005jeuxducanadagames.ca/english/). SaskTel Mobility will be demonstrating the benefits of the 1xEV-DO network at the Summer Games. General service availability in Regina and Saskatoon is scheduled for later in 2005. SaskTel and Nortel are sponsors of the Summer Games, Canada's premiere multi-sport event, which alternates every two years between summer and winter sports at locations across the country.

"Nortel is making it possible for us to deliver an improved wireless data network that will allow SaskTel Mobility customers to use services such as video mail and messaging, wireless gaming and content streaming at speeds close to high speed wireline Internet connections," said Robert Watson, president and chief executive officer, SaskTel. "We will continue to invest in our network to provide our mobile customers with the latest wireless technologies over the largest wireless network in the province."

"Nortel has been working with SaskTel to provide innovative wireline and wireless solutions to the people and businesses of Saskatchewan for over 75 years and we look forward to working with them as they embark on the next phase of their wireless broadband offer," said Richard Lowe, president, CDMA, Nortel. "Nortel's 1X and EV-DO solutions will help improve call clarity, boost network capacity and create efficiencies that can help reduce operating costs while at the same time, increase revenue potential with the delivery of advanced wireless voice and data service offerings."

Under a new expansion agreement with SaskTel Mobility, Nortel will provide CDMA2000 1X radio base stations, base station controllers, switching platforms and other related equipment. Nortel will also supply SaskTel Mobility with CDMA2000 1xEV-DO equipment for initial deployment in Regina and Saskatoon.

Nortel's EV-DO technology will allow SaskTel Mobility customers to download data on their mobile devices at speeds up to 2.4 Mbps with average data speeds of 300 to 500 Kbps or six times faster than available on current 1X networks.

SaskTel has a long-standing relationship with Nortel. In March 2005, SaskTel launched SaskTel Converged Desktop service, a collaborative multimedia communications service based on the Nortel Multimedia Communication Server (MCS) 5200 and Communication Server 2000 (CS) softswitch.

Nortel supplies EV-DO equipment to 12 of the 19 operators across the globe currently offering commercial EV-DO service. Nortel CDMA equipment is designed to support EV-DO through simple upgrades to existing hardware, which helps enable SaskTel's migration from 1X to EV-DO. This approach provides a cost-effective and rapid method for enhancing the end user experience by delivering advanced wireless services and applications.

Nortel has designed, installed and launched more than 300 wireless networks in over 70 countries. Nortel was the first supplier with wireless networks operating in all advanced radio technologies and is the only end-to-end provider of all next generation wireless solutions.

About SaskTel Mobility

SaskTel Mobility is Saskatchewan's complete wireless solutions provider, offering digital and analog cellular, wireless data and Internet, FleetNet 800, and satellite. It is a division of SaskTel, the leading full service communications company in Saskatchewan, offering complete wireline, wireless, Internet and e-business solutions over a state-of-the-art, digital network. The web site for SaskTel Mobility is www.sasktelmobility.com.

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. FleetNet is a trademark of SaskTel Mobility. CDMA2000 is a trademark of the Telecommunications Industry Association (TIA).

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