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December 17, 2008 04:00 ET

Yapy Merkezi Selects Nortel Solution for Turkish State Railways Project

Polatli-Konya Line Passengers to Benefit from Comfortable, Fast and Economic Transportation

ISTANBUL, TURKEY--(Marketwire - Dec. 17, 2008) - Nortel(1) (TSX:NT)(NYSE:NT) has been selected by Turkish construction company Yapi Merkezi to supply the telecommunications solution for the Polatli to Konya section of the Turkish high-speed railway project.

The Nortel solution, which includes GSM-R, SDH transmission backbone and dispatcher telephony systems, will cover the Polatli-Konya section of high-speed railway which runs between the cities of Ankara and Konya in Turkey. Implementation of the telecommunications portion of the project will begin in 2009 and is scheduled for completion in 2010.

The telecommunications system contract, valued at four million Euros, is part of the wider Polatli-Konya high-speed railway superstructure and electromechanical systems program being delivered to Turkish State Railways by Yapi Merkezi. The program will provide a fast, cost-effective, reliable and safe transportation infrastructure to ensure the convenience, safety and comfort of rail passengers across Turkey.

Railway superstructure is being installed by Yapi Merkezi with Nortel Netas deploying the telecommunications solution including GSM-R, SDH transmission backbone and telephony systems. This integrated digital communications solution mobilizes and unites digital communications for railways by carrying signaling and operational information directly to train operators: enabling faster speeds and greater traffic density. The GSM-R solution includes base stations and advanced high-speed railways tunnel communications and services.

Turkey's government has made it a priority to improve railroad transportation in the country and has pledged investment of some US$15 billion by the year 2020. Turkey holds a geographically strategic transportation position as it links Europe and Asia.

"The Polatli-Konya line is a key milestone in Turkey's railroad investment journey and it is a testament to Nortel's proven worldwide strength in GSM-R and our continued significant presence in Turkey that we were chosen by Yapi Merkezi for this important contract," said C. Mujdat Altay, general manager Nortel Netas.

"We selected Nortel for this project because not only did they offer the most advanced GSM-R portfolio, they could also provide complete radio system delivery and enhanced services thanks to the long established local presence of Nortel Netas," said Basar Arioglu, president, Yapi Merkezi.

When fully deployed the Polatli-Konya GSM-R system will allow drivers, dispatchers, shunting team members, train engineers, station controllers and other Turkish State Railway employees to use a common interoperable communications system to communicate safely, reliably and securely. Improved communications helps to ensure passenger safety and railway track efficiency while reducing operational costs.

Turkey is bordered by Bulgaria where Nortel recently received a contract to deliver GSM-R mobile communications railway technology to the Bulgarian National Railway Infrastructure Company.

Nortel has over 10 years' experience with GSM-R mobile communications technology and is currently providing GSM-R on three continents. With greater than 60 percent of the more than 115,000 km of tracks using the GSM-R system, Nortel is the number one GSM-R provider globally. Nortel has been awarded national GSM-R contracts in Algeria, Austria, France, Germany, Lithuania and the UK as well as large GSM-R deployments in China, the Czech Republic, Italy, India, Slovakia, Spain and now Turkey.

About Nortel Netas

Nortel Netas provides seamless solutions to a wide customer base in Turkey with an extensive range of services and products for the last four decades. The company has been deploying network solutions, services and communication infrastructure for Turk Telekom, Turkish Armed Forces, service providers and enterprises in Turkey and has been introducing cutting-edge solutions to the Turkish market thanks to its largest private telecommunications technology group in Turkey. Due to Nortel Netas's achievements in the last 41 years in the Turkish market, Nortel has decided to establish The Global Operations Centre of Excellence in Istanbul in 2007.

About Nortel

Nortel is a recognized leader in delivering communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate today's barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.

Certain statements in this press release may contain words such as "could", "expects", "may", "anticipates", "believes", "intends", "estimates", "targets", "envisions", "seeks" and other similar language and are considered forward-looking statements or information under applicable securities legislation. These statements are based on Nortel's current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Nortel operates. These statements are subject to important assumptions, risks and uncertainties, which are difficult to predict and the actual outcome may be materially different from those contemplated in forward-looking statements. For additional information with respect to certain of these and other factors, see Nortel's Annual Report on Form10-K, Quarterly Reports on Form 10-Q and other securities filings 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.

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