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January 18, 2005
STA Selects Nortel to Deliver 3G Broadband Wireless Network
Network Expected to Support Biennial "Games of the Small States of Europe"
ANDORRA LA VELLA, Andorra – Servei de Telecomunicacions d’Andorra (STA) has selected Nortel* [NYSE/TSX: NT] to provide a third generation (3G) UMTS (Universal Mobile Telecommunications System) network for delivery of broadband wireless services like e-mail, Web browsing, personalized content, video calls and conferencing to its customers in Andorra.
The network is expected to be fully available by May 2005 when Andorra will host the “Games of the Small States of Europe,” a biennial competition between European countries with populations of less than one million. “STA is committed to delivering new, innovative communications solutions to enhance the lives of our Andorran customers,” said Xavier Palacios, general manager, STA. “Nortel’s expertise and understanding of our requirements has clearly differentiated it as a strategic supplier for this third generation wireless network.” Nortel will provide STA with circuit and packet core 2G and 3G solutions as well as equipment for a small Universal Terrestrial Radio Access Network (UTRAN) pilot. Nortel will also provide STA with network planning and optimization and initial network start-up and operations support. “STA was Nortel’s first carrier customer in Iberia and today’s announcement demonstrates the continued strength of our relationship,” said Jordi Casamitjana, president, Iberia, Nortel. “This new contract confirms our networking strengths and our leadership position in building new generations of wireless networks that offer powerful services to consumers and businesses alike.” "As operators across the world finalize their 3G migration plans, more and more are turning to Nortel as a trusted 3G networking ally," said Peter MacKinnon, president, UMTS and GSM networks, Nortel. "Our recent string of 3G successes, including STA, demonstrates our expertise in wideband radio access and data networking and our real advantage in turning up these networks quickly and cost-effectively." Nortel is deploying UMTS technology with leading operators across the globe. Nortel has extensive experience in deploying and tuning large-scale, code-based networks, and in using IP (Internet Protocol) technology to enhance operating efficiency for wireless operators. Nortel has designed, installed and launched more than 300 wireless networks in over 50 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. About STASTA is a public corporation created in 1975 and owned by the Andorran Government, with full responsibility on the telecommunications services in Andorra, including the telephony, radiotelephony, data transmission and other complementary services within the State territory. It has also responsibility for the technical infrastructures required for TV and Radio signal distribution. 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; 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 controls over financial reporting; the impact of Nortel’s and NNL’s failure to timely file their financial statements and related periodic reports, including breach of its support facility and public debt obligations and 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 our public filings; the potential delisting or suspension of Nortel’s and NNL’s publicly traded securities; the impact of management changes, including the termination for cause of Nortel’s former CEO, CFO and Controller in August 2004; the sufficiency of Nortel’s restructuring activities, including the work plan announced on August 19, 2004 as updated on September 30, 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; 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 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 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 or early settlement, which is currently not available, of Nortel’s forward purchase contracts; 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 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 for Press and Analysts:
Jose-Luis Menoyo
Nortel
+34 917 09 4567
menoyo@nortel.com
Ben Roome
Nortel
+44 1628 43 3113
benroome@nortel.com
Jay Barta
Nortel
(972) 685-2381
jbarta@nortel.com
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