T-Mobile Germany Offers Seamless Mobile Broadband Connections with Nortel Wireless Solutions

First European Wireless Service Provider to Offer Seamless Communications Across HSDPA/3G, GPRS and Wi-Fi Networks

MARCH 10, 2006, Hanover, Germany - Nortel* [NYSE/TSX: NT] has been selected to expand T-Mobile’s wireless core network with new capabilities designed to bridge the operator’s commercial UMTS wireless network with WiFi networks to provide seamless communications for subscribers. This is expected to be the first commercial deployment that supports seamless broadband mobility across 3G, EDGE, GPRS and WiFi networks in Europe.

This capability will be demonstrated at CeBit 2006 in Hanover in booth 26, A01. T-Mobile will offer the new service to customers using laptops and dual mode PDAs, such as the T-Mobile MDA Pro, beginning Summer 2006.

With this deployment, enterprise customers can enjoy “Always Best Connected” access to new data and multimedia/SIP-based services beyond voice, including video calling, video conferencing, short messaging service, instant messaging, e-mail, Web access - all from one device and one phone number - with no interruption to their communication session. It will also enable T-Mobile to better manage customer billing information across networks so that end users can receive one, consolidated bill.

“This innovative technology is designed to greatly enhance our customer’s experience by allowing users to roam seamlessly and enjoy a consistent, uninterrupted mobile communications across 3G, EDGE, GPRS and WiFi networks,” said Joachim Horn, director, technology T-Mobile. “The service is designed to enable our customers to access private networks and enterprise applications in a secure environment while on the move, helping to improve productivity and efficiency.”

The new capability is made possible through the integration of existing Nortel’s Gateway GPRS Support Node (GGSN) with Azaire Networks’ IP Converged Network Platform (IP-CNP). Azaire’s IP-CNP provides an integrated hybrid network by extending the services from the existing 3G and GSM core network investments over new access technologies like WiFi and WiMax.

With this deployment, T-Mobile customers will be able to use multiple access technologies while preserving key cellular service benefits such as SIM card-based authentication, secure roaming, integrated accounting and billing, and seamless mobility. Customers have consistent user experience and access to their information regardless of how they connect to the T-Mobile network using their existing T-Mobile accounts.

“We are thrilled to work with T-Mobile to deliver a truly mobile environment that offers users a new standard of integrated voice, data and multimedia service from any location,” said Dieter Buettenbender, Nortel global account manager for T-Mobile International. “With this technology T-Mobile will be able to continuously introduce these new services quickly and easily to its existing portfolio.”

The packet core network agreement is incremental to previous GPRS and UMTS core contract awards by T-Mobile to Nortel. Nortel has been a supplier of GPRS and third-generation (3G) wireless networking equipment for T-Mobile’s Pan-European network since 2002, and currently supplies packet core networking equipment in Germany, the United Kingdom, Czech Republic, The Netherlands, Hungary, Slovakia and Austria.

About T-Mobile International
T-Mobile International is one of the world’s leading companies in mobile communications. As one of Deutsche Telekom`s three strategic business units, T-Mobile concentrates on the most dynamic markets in Europe and the United States.

By YE 2005, nearly 87 million customers were served by companies of the Deutsche Telekom group. And all that over a common technology platform based on GSM, the world’s most successful digital wireless standard. This also makes T-Mobile the only mobile communications provider with a seamless transatlantic service.

T-Mobile also is partner of FreeMove, an alliance formed by four of Europe’s leading mobile companies - Orange, Telefónica Móviles, TIM (Telecom Italia Mobile) and T-Mobile - to help their customers communicate as easily while travelling abroad as they do at home. For more information about T-Mobile International, please visit www.t-mobile.net.**

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. Our next-generation technologies, for both service providers and enterprises, span access and core networks, support multimedia and business-critical applications, and help eliminate today’s barriers to efficiency, speed and performance by simplifying networks and connecting people with information. 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 ongoing 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); 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; general stock market volatility; 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; the future success of Nortel’s strategic alliances; and certain restrictions on how Nortel and its president and chief executive officer conduct business. 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.

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