neuf Cegetel Provides VoIP Using Nortel Solutions

Enables New Services for Home, Corporate Markets in France

NOVEMBER 29, 2005, PARIS - neuf Cegetel, the largest alternative operator in France, has deployed a VoIP solution from Nortel* [NYSE/TSX: NT] to provide carrier-grade voice services over DSL broadband access to businesses and consumers throughout France.

“For neuf Cegetel, VoIP represents a considerable development opportunity for the home subscriber and corporate markets, enabling us to offer innovative services while optimizing our infrastructure costs,” said François Paulus, general manager, network and marketing division, neuf Cegetel. “Nortel has a strong reputation for delivering high-quality solutions. With their technology and support, we are well equipped to succeed in this very competitive market.”

neuf Cegetel has an installed base of more than one million residential broadband subscribers in France. Since June 2004, neuf Cegetel has deployed VoIP services to more than 350,000 of these subscribers using Nortel solutions. Earlier this year, neuf Cegetel also selected Nortel solutions to launch neuf Office service, a carrier-grade VoIP services offering for business customers.

“As demand for multimedia services grows among consumers and businesses, more and more operators in Europe and abroad are selecting Nortel’s scaleable, reliable, and open solutions to provide these services,” said Michel Clement, president, Nortel France. “Nortel is extremely pleased that neuf Cegetel, one of the leading telecom operators in France, has chosen to work with us to address this exciting market.”

Nortel’s VoIP solution for neuf Cegetel includes the Communication Server (CS) 2000 superclass softswitch, which functions as a powerful and flexible platform to deploy consumer and business VoIP services. neuf Cegetel has also deployed the Nortel Media Gateway (MG) 15000, which serves as a high density IP trunk gateway to interconnect with other carrier networks.

Nortel ranked number one in the global markets for service provider softswitches and gateways for the first half of 2005 and the entire year of 2004, according to Synergy Research Group. Nortel is providing VoIP and multimedia solutions to many of the world’s leading service providers, including Bell Canada, Rogers Communications, SaskTel, Telus, Verizon, Sprint, MCI, British Telecom, Cable & Wireless, Hong Kong Broadband and CompleTel in France.

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, 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.

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

Contact Information

Sophie Biscaras

Nortel

Contact via E-mail