Ford Otosan Powers Auto Plant Communications in Turkey with Nortel IP Solutions

Turkish Automaker Converges Networks Across Three Locations

DECEMBER 06, 2005, ISTANBUL, Turkey - Ford Otosan, one of the largest automobile manufacturers in Turkey, has converged its voice and data communications across three manufacturing locations with IP-based technologies from Nortel* [NYSE/TSX: NT].

The new network gives Ford Otosan a highly secure, high-speed infrastructure supporting all of its manufacturing functions. These functions range from design and production to business processes and include internal communication tools for employees such as IP telephony, email and video conferencing. Ford Otosan’s new network infrastructure was able to increase manufacturing productivity and employee efficiency, enabling 24/7 production due to its seamless and redundant design across all sites.

The network was deployed by Koç Sistem and Merpa, two solution partners of Nortel Netas, Nortel’s subsidiary in Turkey. Ford Otosan has three major locations in Turkey - the manufacturing facility in Kocaeli, spare parts warehouse in Kartal and cargo truck plant in Eskisehir. The new network serves approximately 2,500 users.

“Reliable and secure communications for our manufacturing operations is critical to maintaining the production rate of one vehicle per hour, 24 hours a day, seven days a week,” said Faik Kuter, IT Manager, Operation & Network, Ford Otosan. “The slightest failure in communications serving any of our three plants would instantly disrupt our manufacturing and negatively impact our operational costs. With Nortel’s depth of experience in converged IP networks, we trust that we have deployed the most reliable technology on the market today.”

Cenk Alper, Leader Enterprise Solutions, Nortel Netas, said, “We worked very hard to understand each element in Ford Otosan’s Turkish operations to ensure the final solution was specially designed to meet their communication needs. It is a demanding environment that requires the kind of high-performance, highly reliable infrastructure that Nortel delivers to its customers around the world.”

Ford Otosan’s new distributed backbone infrastructure includes an independently operated and redundant PBX system to take over and re-route any communication in the network in case of an emergency.

The Ford Otosan network includes Nortel Ethernet Routing Switch 8600, Ethernet Switch 470, and Communication Server 1000M, as well as CallPilot* unified messaging system.


About Ford Otosan

Having activities since 1959, Ford Otosan is present in the all main segments of the Turkish automobile market with its wide range of products. Providing service to consumers by 66 3S (sale, service and spare parts) and 46 2S (service and spare parts) dealers across Turkey, Ford Otosan is the sector leader by the 15% market share obtained in 2004. Having increased its overall production by 80% in 2004 compared to 2003, Ford Otosan exported 139,111 of 206,741 vehicles manufactured in 2004. Totally, 255,204 vehicles have been exported and sold locally. www.ford.com.tr **


About Merpa

Having undersigned turn key global projects in voice and data transmission by its team composed of electronic, computer and communication engineers, Merpa Communication constructs the converged systems of the future. The company provides products with excellent features by continuously expanding its product range in line with the recently developed technologies and new customer requirements. www.merpa.com.tr **


About Koç Sistem
The largest and the oldest information technology company with domestic capital, Koç Sistem Information and Communication Services intend to add value to their shareholders continuously. Capable of meeting any requirements of enterprises in information technologies domain, the company is the largest system integrator in information sector in Turkey. Having established strategic partnerships with important technology leaders worldwide, Koç Sistem provides unconditioned customer satisfaction thanks to service centers across Turkey. www.kocsistem.com.tr **


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, the Globemark and CallPilot are trademarks of Nortel Networks.

**This is a 3rd party link as described in our Web linking practices.
Use of the terms “partner” and “partnership” does not imply a legal partnership between Nortel and any other party.

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Angelika Kempf

Nortel

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