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December 1, 2002
Nortel Networks Wins Approximately US$65 Million in China Unicom Expansion Contracts
Will Deploy CDMA2000 1X Platform in Hunan, Additional GSM Capacity in Five Provinces
BEIJING – China Unicom, the country’s leading alternate wireless operator, has awarded contracts to Nortel Networks* [NYSE/TSX: NT] and its flagship manufacturing joint venture company in the People’s Republic of China, Guangdong Nortel Telecommunications Equipment Ltd., – collectively estimated at approximately US$65 million – for expansion of its CDMA and GSM networks.
Under an estimated US$25 million contract with Guangdong Nortel, China Unicom plans to expand its CDMA network capacity in Hunan Province using Nortel Networks Univity* CDMA2000 1X equipment. This builds on the estimated US$280 million in CDMA2000 1X contracts Nortel Networks announced with China Unicom in October 2002 for Zhejiang, Shandong, Heilongjiang, Henan and Jiangxi provinces and Chongqing municipality. Under the contract, the deployment is to include Nortel Networks Univity radio, core switching and intelligent networking equipment that will help position China Unicom to drive improved spectrum efficiency and reduced costs. Univity will also position China Unicom to migrate to an all-IP (Internet Protocol) packetized network. China Unicom has also awarded new contracts estimated at approximately US$40 million to Nortel Networks for expansion of its GSM networks in Heilongjiang, Hunan, Henan, Zhejiang and Shandong. These expansions – including GSM switching, radio base stations and transmission equipment – are expected to increase China Unicom’s GSM network capacity by more than 1.25 million subscribers. “Nortel Networks is very proud to have been chosen by China Unicom to implement these major CDMA and GSM network expansion projects,” said Yuan-Hao Lin, acting president, Nortel Networks China. “We have already deployed CDMA networks for China Unicom in eight provinces and GSM networks in nine, and look forward to sharing in China Unicom’s continued success in China’s growing wireless market.” “We continue to work closely with China Unicom and other global service providers to deploy Wireless Data Networks that can help position them to drive reduced operating costs, protect capital investments, and drive profits from the growing demand for advanced communication services,” Lin said. Nortel Networks recently outlined its new Wireless Data Networks strategy and a new wireless brand – Univity. Based on packetized voice, all-IP networking, and more spectrally efficient access technologies, this strategy aims to address the industry’s changing business needs for migration to next generation technologies, and to reduce the cost of transmitting network traffic by as much as ten-fold. Nortel Networks has deployed wireless networks in 17 of China’s 31 provinces. Globally, Nortel Networks has designed and deployed CDMA networks for more than 60 operators in 15 countries. Nortel Networks has also won contracts to deploy 80 GSM/GPRS networks in 41 countries. Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The Company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Wireless Networks, Wireline Networks, Enterprise Networks, and Optical Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at www.nortelnetworks.com. 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 severity and duration of the industry adjustment; the sufficiency of our restructuring activities, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; fluctuations in operating results and general industry, economic and market conditions and growth rates; the ability to recruit and retain qualified employees; fluctuations in cash flow, the level of outstanding debt and debt ratings; the ability to meet financial covenants contained in our credit agreements; the ability to make acquisitions and/or 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; international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization in the telecommunications industry; the dependence on new product development; the uncertainties of the Internet; the impact of the credit risks of our customers and the impact of increased provision of customer financing and commitments; stock market volatility; the entrance into an increased number of supply, turnkey, and outsourcing contracts which contain delivery, installation, and performance provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; the future success of our strategic alliances; and the adverse resolution of litigation. For additional information with respect to certain of these and other factors, see the reports filed by Nortel Networks with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel Networks 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 Networks, the Nortel Networks logo, the Globemark and Univity are trademarks of Nortel Networks. Contact for Press and Analysts:Michelle Wu
Nortel Networks
8610 6510 7132
wumich@nortel.com
Daniel Zhao
Nortel Networks
8610 6510 7140
danielz@nortel.com
Jamie Moody
Nortel Networks
972-684-7167
moodyjam@nortel.com
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