Nortel
NYSE : NT
TSX : NT

Nortel

July 14, 2005 13:00 ET

Traffic Flowing Smoothly for Florida Department of Transportation with Nortel Multiservice Solution; Mission-Critical Network Supports Video Traffic Monitoring, Improved Emergency Response

TALLAHASSEE, Fla.--(CCNMatthews - Jul 14, 2005) -

The Florida Department of Transportation (DOT) is enhancing safety and mobility for the state's 13 million drivers by deploying a communications network from Nortel (NYSE:NT)(TSX:NT) that provides real-time monitoring of traffic and road conditions for traffic management centers across the state.

To help maximize the safety and efficiency of Florida's Transportation System, the Intelligent Transportation Systems (ITS) Office within DOT is deploying Nortel's Multiservice Switching solution to support video traffic monitoring equipment, traffic counters for identifying congested conditions, and electronic highway information signs.

The new network will also serve as a critical communications infrastructure for the ITS Office's emergency evacuation communication needs. ITS is responsible for traffic management and traffic engineering across more than 40,800 highway lane miles and 6,377 bridges in Florida.

"Nortel has a proven track record for helping government agencies around the world enhance the human experience through secure and reliable communications networks," said Scott McFeely, general manager, Services Edge, Nortel. "Our Multiservice Switching portfolio has helped government agencies like Florida DOT cost-effectively converge their mission-critical applications and information onto a single multiservice infrastructure with the flexibility to adapt to future service and application requirements."

Florida DOT is deploying the Nortel Multiservice Switch (MSS) 15000 to serve as the backbone of its microwave radio-based multiservice infrastructure. Florida DOT required a solution that could coexist with its existing network of highway emergency call boxes, and provide service for a variety of new traffic management and monitoring applications. The Nortel multiservice network is also expected to support a variety of DOT's communications and data transport needs in the future through its simplified, flexible and cost effective infrastructure.

Nortel was the global market share leader in multiservice switching revenue for four years as of first quarter 2005, according to Synergy Research Group. With more than 45,000 systems shipped to over 1,500 customer networks, the Nortel Multiservice Switching family has proven field experience in delivering carrier-grade reliability and service flexibility for mission critical enterprise and service provider networks worldwide. Nineteen countries and numerous municipalities and government agencies around the world - including the United States Department of Defense, Commonwealth of Kentucky, UK Ministry of Defence, Taiwan National Police Agency, and UK National Air Traffic Services - rely on the Nortel Multiservice Switch portfolio to protect their critical data and reliably deliver services and information to their citizens.

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.

Contact Information