Nortel Drives Generations of Innovative Communications at Mobile World Congress

Generation After Generation: Bringing A Century of Experience to Delivering Better, Faster Networks

BARCELONA - Nortel* [TSX: NT, OTC: NRTLQ] will showcase 4G all-IP mobile broadband solutions including new carrier applications at the GSMA Mobile World Congress ** in Barcelona from February 16 to 19.

With more than a century of communications experience, the innovative spirit of Nortel is captured in the company’s latest portfolio of leading all-IP mobile broadband solutions. Demonstrations in Barcelona will include world firsts in next-generation video and LTE, exciting new carrier VoIP applications and value-added services that accelerate time-to-revenue.

“The customers that visit Nortel’s showcase in Barcelona will see how we can help them deliver the mobile broadband experience of the future, no matter which generation of network they operate today,” said Richard Lowe, president, Carrier Networks, Nortel. “Nortel is focused on delivering long term value for its customers by enhancing today’s networks and enabling a new generation of all-IP mobile broadband solutions and revenue-generating applications.”

LTE in Real Life: Nortel will host a live air LTE network at Mobile World Congress that will power the LTE demonstrations of T-Mobile and LG Electronics as well as Nortel. These demonstrations will show how the speed and capacity of LTE can be used to enhance video surveillance capabilities, stream HD video to mobile devices, and support interactive mobile applications like multi-player gaming and video-conferencing.

Multimedia Solutions Made Easy: Nortel is number one in Carrier VoIP and offers vast experience in SIP applications - Nortel is uniquely positioned to help operators accelerate time to revenue by bringing simple, useful applications to their customers. Nortel’s pre-integrated consumer and business solutions deliver a richer user experience and at the same time are simple and affordable. Nortel’s Carrier VoIP and application solutions demonstrations will include:

* IP-Powered Business - Nortel’s voice and multimedia solution that can help SMBs and enterprises increase productivity and enhance workforce mobility using advanced IP telephony integrated with unified communications solutions (demonstrated with Microsoft and IBM). Unified communications and Mobile Extension services will be demonstrated which will enable carriers to reduce churn by offering an integrated mobile office service.
* IP-Powered Home - Nortel’s consumer voice and multimedia solution provides users with convenience, flexibility and cost-savings from their VoIP and communications applications by enabling users to control and personalize their home communications. Flexible application bundles combine personal Internet, TV and home phone services into simple, customizable packages. In addition, Nortel will demonstrate how its new Mobile LiveContact service uses remote video conference capabilities to offer personal video-conferencing on mobile devices for connecting families and businesses all over the world. New Mobile LiveContact and Blu-ray disc BD-Live based services will showcase the benefit of enabling mobile users to use text, call and video to reach friends and family regardless of what end device they are on.

Energy Efficiency in Today’s Networks: Nortel is committed to driving increased operator OPEX efficiency, for example by driving power consumption savings and footprint reductions into its existing carrier portfolio. Nortel’s GSM base station portfolio can, through the use of advanced hardware and software solutions, typically achieve a 50% power consumption saving for operators. The Nortel booth will showcase live GSM calculators to tabulate energy efficiency savings and illustrate how migration to IP networking can significantly reduce total cost of network ownership.

Other technology demonstrations will focus on:
* Nortel’s Self Organizing Networks (SON) that cut operating expenses by automating time-consuming and repetitive network management tasks;
* Metro Ethernet Mobile Backhaul Solutions that align with NGMN-optimized backhaul requirements to deliver economical, service-aware, self-optimizing transport for LTE networks;
* Evolved Packet Core based on the Nortel ATCA-based Access Gateway which is the first in the market to support end-to-end LTE architecture;
* LTE demos in collaboration with T-Mobile, LG Electronics and Hitachi.

Industry Voices
Attendees at Mobile World Congress will be able to hear from Nortel experts including: Vish Nandlall, chief technology officer, Carrier Networks, who is speaking on the topic of “Self Organizing Networks: Reducing OPEX End-to-End, Day-in-Day-Out” Thursday, February 19 in the Technical Stream. In addition, Julius Robson, in his capacity as chairman of the LSTI Proof of Concept Group and LTE Architecture Standards will talk on the subject of “Does LTE Do What It Says On the Box?” Thursday, February 19 in the Technical Stream. And, Simon Brueckheimer, Nortel fellow and CTO Field Office EMEA will present at a private British Government session on the theme of “Sporting, the new way of life”.

Nortel is a recognized leader in delivering communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel’s technologies are designed to help eliminate today’s barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world. For more information, visit Nortel on the Web at www.nortel.com . For the latest Nortel news, visit www.nortel.com/news .

Certain statements in this press release may contain words such as “could”, “expects”, “may”, “anticipates”, “believes”, “intends”, “estimates”, “targets”, “envisions”, “seeks” and other similar language and are considered forward-looking statements or information under applicable securities legislation. These statements are based on Nortel’s current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Nortel operates. These statements are subject to important assumptions, risks and uncertainties, which are difficult to predict and the actual outcome may be materially different from those contemplated in forward-looking statements. For additional information with respect to certain of these and other factors, see Nortel’s Annual Report on Form10-K, Quarterly Reports on Form 10-Q and other securities filings 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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