Nortel Demonstrates Wireless Broadband 'Triple Play' Solution;

13 September 2005

Wireless service providers and their customers will soon be able to benefit from simultaneous delivery of voice, video and data virtually 'anytime, anywhere,' leveraging technology developed by Nortel (NYSE:NT)(TSX:NT). This service bundling is designed not only to help create a new business model for wireless operators, but also to position them to increase revenue potential and enhance the subscriber experience.

Nortel plans to demonstrate real time applications and its 'triple play' solution over a live CDMA2000 1xEV-DO Rev. A network at the 3G CDMA Americas Congress, September 12-14, 2005 (Room G, Miami Convention Center).

The ability to deliver simultaneous broadband data, VoIP and IPTV media services over a single EV-DO connection is another step in Nortel's plan to position CDMA operators to lead the shift to a converged business model.

"Today, people expect wireless services to be as fast, reliable and secure as their wireline connections," said Richard Lowe, president, CDMA, Nortel. "Nortel's DO Rev. A and IMS/MMD solutions will help make tomorrow's service aware networks more intelligent, and assist CDMA operators in increasing profit potential by creating new business models and service bundling opportunities to enhance the subscriber experience."

Nortel's DO Rev. A and IMS/MMD solution benefits include an open design to provide personalized services for each user; options for increasing revenue through innovative bundling of voice, video and data services; and higher network transmission speeds with lower latency to ensure the highest quality user experiences for gaming, music, VoIP, PTx (Push to Talk, Push to See, Push to Video), video telephony, and broadcast/multicast services.

In August 2005, Nortel and Airvana completed live 1xEV-DO Rev. A calls at Airvana's lab in Chelmsford, Mass. using test handsets provided by QUALCOMM. The calls reached peak download rates of 3.1 Mbps and peak upload rates of 1.8 Mbps -- approximately 12 times faster than available on today's commercial DO Rev. 0 networks. The test calls demonstrated average round-trip delays below 40 milliseconds, which is approximately two times faster than DO Rev. 0.

"We are excited to work with Nortel and be at the forefront of delivering 1xEV-DO Rev. A to market," said Randy Battat, chief executive officer, Airvana.

Nortel recently demonstrated live video streaming to an EV-DO enabled PDA at 25 frames per second, equivalent to the TV experience at home. This was accomplished in Telefonica Moviles commercial EV-DO network in Guatemala City, Guatemala in collaboration with SmartVideo Technologies, a leading provider of live and on-demand IPTV services.

"It is gratifying to have worked with Nortel on this exciting project," said Richard E. Bennett, Jr., president and chief executive officer, SmartVideo (www.smartvideo.com). "We are also working with Nortel on an interoperability testing program to enable delivery of advanced video services to subscribers."

"Our BroadbandAccess laptop service for business customers and V CAST consumer multimedia service are market-leading, thanks to support from EV-DO network infrastructure providers such as Nortel," said Bill Stone, executive director, network strategy, Verizon Wireless. "We will stay at the forefront of the 3G world by continuing to work with Nortel to attain the added benefits Rev. A will give the award-winning Verizon Wireless network."

In March 2005, Nortel announced plans to trial Rev. A with Verizon Wireless in 2006. Nortel's Rev. A technology is expected to be commercially available in 2006. Nortel supplies EV-DO equipment to 12 of the 21 operators across the globe currently offering commercial EV-DO service, including Verizon Wireless in the United States, VIVO in Brazil, Pelephone in Israel and Telstra in Australia. Nortel also provided EV-DO equipment to Eurotel for the first commercial 450 MHz EV-DO service in Eastern Europe. With its CDMA equipment designed to support 1xEV-DO through modular upgrades to existing hardware, Nortel re-uses existing base station equipment to help operators reduce or eliminate the need for costly hardware replacements.

MMD is a standard architecture designed by the 3rd Generation Partnership Project2 (3GPP2) to enable convergence of data, voice, messaging and multimedia technology over an IP-based common core network based on SIP. MMD will enable operators to cost-effectively deliver VoIP and multimedia services across mobile, wireline and converged networks.

Nortel is an industry innovator and at the forefront of all broadband access technologies, including wide area cellular, wireline and wireless LAN. Nortel has designed, installed and launched more than 300 wireless networks in over 70 countries. Nortel was the industry's first supplier with wireless networks operating in all advanced radio technologies (GSM/GPRS/EDGE, CDMA2000 1X and 1xEV-DO, UMTS and WLAN), and is the only end-to-end provider of all next generation wireless solutions, as well as edge and core network solutions for IP, ATM and optical transport.

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; any undetected product defects, errors or failures; 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. CDMA2000 is a trademark of the Telecommunications Industry Association (TIA).

Contacts

Nortel
Jamie Moody, 972-684-7167
email: moodyjam@nortel.com
or
Camille Beasley, 214-665-1331
email: beasleyc@fleishman.com