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Nortel

June 23, 2005 21:30 ET

Taipei City Hospital, Nortel Demonstrate Potential of Wireless Telemedicine

TAIPEI, Taiwan--(CCNMatthews - Jun 23, 2005) -

Anywhere, Anytime Multimedia Communications Enable Surgeon to Consult with Hospital from Subway Station via Wireless Mesh Network

Taipei City Hospital and Nortel (NYSE:NT)(TSX:NT) have demonstrated a far-reaching wireless telemedicine application with the potential to enable a new immediacy in life-saving medical resources for remote Taiwan communities and outlying islands.

In this initiative's first trial application, a surgeon from the Renai Branch of Taipei City Hospital was able to make a real-time wireless Internet connection from a Taipei city subway station to the county hospital on the island of Lienkiang in the Taiwan Strait.

The surgeon used a wireless laptop computer to remotely connect to the Nortel Multimedia Communication Server 5200 (MCS 5200) at the hospital to assess the progress of a patient who had been treated earlier in Taipei. The surgeon was able to remotely examine the patient's X-rays, as well as speak with the patient and the attending Lienkiang hospital physician via the Internet.

This telemedicine demonstration was part of Nortel's continuing collaboration with Taipei City, building on the potential for innovation the Nortel Wireless Mesh solution brings to Taipei's Mobile City (M-City) project. By the end of 2005, Taipei expects to have 10,000 mesh access points installed across 90 percent of its 272 square kilometers to provide seamless, high-speed wireless roaming for residents.

Telemedicine is a critical component in the government's commitment to make Taipei a truly wireless 'Mobile City.' Taipei Mayor Ma Ying-jeou welcomed this demonstration of the integration of local medical resources and services for remote delivery via the Internet. He cited Nortel's contribution to improving healthcare efficiency and responsiveness by making it possible, through its wireless technology, for patients to obtain immediate care even when doctors are off duty.

"Nortel continues to work with the Taipei City Government on extending the many advantages of mobility to its citizens, particularly in the important area of telemedicine," said Jackson Wu, managing director, Taiwan, Nortel. "This application trial further demonstrates the far-reaching benefits of Nortel's leading technology."

Nortel's Multimedia Communications Portfolio, including both MCS 5100 and MCS 5200, delivers advanced multimedia and collaborative applications through the same commercially available hardware and open-standards software. This portfolio provides innovative technology for introducing secure, cost-effective new services with the flexibility to easily expand to meet future market demands. Nortel solutions are designed to enhance the human experience and power global commerce by delivering next generation communication applications that improve productivity through anytime access, regardless of location.

Nortel's Wireless LAN (local area network) portfolio includes three powerful, complementary offerings: the WLAN 2300 series introduced in March 2005; the Wireless 7200 series, a Wireless Mesh Network solution; and MeshPlanner for Nortel, a precise, intuitive planning tool, marketed jointly by Wireless Valley Communications and Nortel, that optimizes wireless mesh network design. In Phase I of the Taipei City 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. Optical Ethernet and IDC firewall solutions by Nortel are also scheduled to be rolled out in Phase II.

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, the Globemark and Optivity are trademarks of Nortel Networks.

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