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February 18, 2003

Nortel Networks to Demonstrate Next Generation Wireless Data Networks at 3GSM World Congress

CANNES, France – Nortel Networks* [NYSE/TSE: NT] will be demonstrating its next generation Wireless Data Network solutions this week at 3GSM World Congress in Cannes (Booth A15, Hall 1, Palais des Festivals), and by invitation only at the Nortel Networks Demo Centre.

Nortel Networks live demonstrations will showcase Nortel Networks Univity* solutions interworking at high speed with a range of terminals, applications and services. These solutions are designed to help position operators to drive new revenues, and to optimise their infrastructure investments.

Both the Nortel Networks booth at 3GSM World Congress and the Nortel Networks Demo Centre will feature live 2.5G and 3G wireless services from a user perspective. Visitors will be able to experience how users will:

See – video telephony, video streaming and simultaneous browsing and talking over a variety of UMTS (Universal Mobile Telecommunications System), single and dual-mode handsets for rich, immediate multimedia communications

Play – single-user and networked games, targeted to the youth market, over third generation (3G) technology

Exchange – fun, personalized interactive messaging that is just as simple as SMS (short messaging service), but with the added dimension of video and images

Find – location and presence services for online, multi-user ‘chat sessions,’ supported by Nortel Networks Univity Mobile Location Centre (MLC) and Interactive Multimedia Server (IMS) platforms

Work – technology-agnostic solutions for doing business wirelessly, including unified public Wi-Fi, 2.5G and 3G services with single sign-on, authentication and billing; and secure, mobile professional applications

These services are supported by a range of flexible billing models, including content-based, event-based, time-based, volume-based and prepaid, and by tools that can help operators maintain excellent service quality for their subscribers.

Nortel Networks will also be demonstrating the advantages of Nortel Networks Univity Wireless Data Networks, including: a common, unified packet core for GPRS (General Packet Radio Service), EDGE (Enhanced Data GSM Environment) and UMTS that offers personalisation and service ubiquity, and innovative and flexible billing solutions and security policies based on Nortel Networks Univity GGSN (Gateway GPRS Serving Node), SGSN (Serving Gateway Service Node), MLC and IMS server.

Nortel Networks wireless infrastructure solutions feature spectrally efficient access across multiple technologies – GSM (Global System for Mobile Communications) with AMR (Adaptive Multi Rate), GPRS, EDGE, UMTS (in both FDD and TDD mode), and wireless local area networks (LANs) – and seamless mobility including 3G-2G handover.

Nortel Networks brings together the benefits of in depth experience across all major advanced wireless data technologies (GSM, GPRS, EDGE, UMTS, CDMA2000 1X), extensive expertise in packet switching, a complete portfolio of network-based IP (Internet Protocol) services, and next generation voice over IP to deliver cost-effective solutions and smooth evolution from 2G to 3G.

The demonstrations will highlight not only Nortel Networks Univity Wireless Data Network strengths, but also Nortel Networks close cooperation and extensive interoperability testing activities with key mobile device vendors and application developers. By working with a variety of vendors, Nortel Networks helps to provide more choices in the types of devices subscribers are able to purchase, further personalizing the end-user experience.

Nortel Networks demonstrations will include equipment and services from a number of terminal, applications and infrastructure vendors, including LGE, Motorola, Nokia, QUALCOMM Inc, Samsung Electronics, Sanyo, Accenture, Emblaze, HP, IP Wireless, LogicaCMG, Mobility Networks Solutions, MetaSolv Software, Mycom International and Webraska.

Nortel Networks wireless milestones over the past six months include:
  • First to demonstrate fully integrated public wireless LAN (WLAN) and wireless wide area network (WWAN) services providing single sign-on, authentication as well as common billing and services
  • First 3G to 2G handover calls
  • UMTS 1900 capability to support of North American frequency operators
  • EDGE radio and base station deployments with Cingular Wireless in North America
  • Mobilkom Austria deployment, making Nortel Networks the first and only supplier with wireless data networks in service using all three major access standards – GPRS, CDMA2000 and UMTS
  • 1,800 GSM-R (GSM for Railways) base stations in service for Deutsche Bahn
  • First phase of Vodafone Spain UMTS network deployment, with demonstration of simultaneous voice and data calls using form factor terminals
  • First UMTS voice over IP calls on an IP-based UTRAN

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 customer financing and commitments; stock market volatility; the entrance into an increased number of supply and outsourcing contracts which contain delivery and installation 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:

Claire Cranton
Nortel Networks
+44 1628 617178
cranton@nortel.com

Isabelle Tadmoury
Nortel Networks
+33 664047535
tadmoury@nortel.com

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