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Nortel Selected to Provide Wireless Network for Channel Tunnel Rail Link


WEBWIRE

NOVEMBER 10, 2005, LONDON - Thales UK has selected Nortel* [NYSE/TSX: NT] to provide a digital wireless communications network and support services for the Channel Tunnel Rail Link between London and Folkestone. The network will be designed to support secure, reliable voice communications to train controllers and drivers using the Channel Tunnel Rail Link, including EUROSTAR.

Thales UKís telecommunications business was contracted to supply communications services by Rail Link Engineering, the company responsible for the Channel Tunnel Rail Link. Nortel will work alongside Thales UK to deploy a GSM for Railways (GSM-R) network. Nortel is the world leader in GSM-R technology with a 60 percent market share of lines deployed to date.

ďReliability and functionality are top priorities for this vital Channel Tunnel communications system,Ē said Justin Walker, managing director, Services Division, Thales UK. ďNortelís solution ensures both of these key priorities are met as well as providing interoperability and operational efficiencies with the UKís future national rail communications systems.Ē

ďNortel has proven, global experience in building more secure, reliable, cost-effective wireless networks and is a world leader in adapting those networks to meet the special needs of rail operators,Ē said Scott Wickware, vice president, Wireless Networks, EMEA (Europe, Middle East, Africa), Nortel. ďOur depth of expertise in rail communications has been a key factor in Nortel securing its position as the sole supplier of GSM-R networks in the UK.Ē

Working alongside Thales UK, Nortel is providing engineering, installation, integration, project and consultancy services for the Channel Tunnel Tail Link GSM-R network. Channel Tunnel Rail Link drivers will communicate via GSM-R terminals to GSM-R base transceiver stations along the rail link between London and Folkestone, connected through a base station controller located in Ashford, Kent.

Nortel is deploying nationwide GSM-R networks across Europe and Asia. These include networks in France for RFF, in Great Britain for Network Rail, and in Germany for Deutsche Bahn. Nortel supplied the high-speed line between Rome and Naples, Italy for SIRTI. Nortel is also deploying a GSM-R network for the worldís highest rail line, the Tibet-Qinghai high-speed line in China.

Nortel has been a pioneer in the GSM-R standards process since 1992, and has worked with UIC (Union Internationale des Chemins de Fer) and ETSI (European Telecommunications Standards Institute). Nortel supplied equipment for the MORANE (Mobile Radio for Railways Networks in Europe) trial and was a major contributor to the EIRENE (European Integrated Railway radio Enhanced Network) GSM-R standard.

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 worldís 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 worldís 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.

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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 Nortelís restatements and the impact any resulting legal judgments, settlements, penalties and expenses could have on Nortelís results of operations, financial condition and liquidity, and any related potential dilution of Nortelís common shares; the findings of Nortelís 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 Nortelís previously announced or filed financial results and resulting negative publicity; the existence of material weaknesses in Nortelís internal control over financial reporting and the conclusion of Nortelís management and independent auditor that Nortelís internal control over financial reporting is ineffective, which could continue to impact Nortelís ability to report its results of operations and financial condition accurately and in a timely manner; the impact of Nortelís and NNLís failure to timely file their financial statements and related periodic reports, including Nortelís 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 Nortelís former CEO, CFO and Controller in April 2004; the sufficiency of Nortelís 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 Nortelís customers; increased consolidation among Nortelís customers and the loss of customers in certain markets; fluctuations in Nortelís operating results and general industry, economic and market conditions and growth rates; fluctuations in Nortelís cash flow, level of outstanding debt and current debt ratings; Nortelís monitoring of the capital markets for opportunities to improve its capital structure and financial flexibility; Nortelís ability to recruit and retain qualified employees; the use of cash collateral to support Nortelís normal course business activities; the dependence on Nortelís subsidiaries for funding; the impact of Nortelís defined benefit plans and deferred tax assets on results of operations and Nortelís cash flow; the adverse resolution of class actions, litigation in the ordinary course of business, intellectual property disputes and similar matters; Nortelís dependence on new product development and its ability to predict market demand for particular products; Nortelís 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 Nortelís customers and the impact of customer financing and commitments; general stock market volatility; negative developments associated with Nortelís 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 Nortelís 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 Nortelís 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.

*Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.



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