Comboios de Portugal Enhances Communications Security with Nortel Solution

Portuguese Railways to Benefit from more Secure, Scalable High-Performance Network

APRIL 04, 2006, LISBON, Portugal - Comboios de Portugal (CP), the Portuguese National Railway company, has enhanced security of its communications through a high-performance communications solution from Nortel* [NYSE/TSX: NT]. The Virtual Private Network (VPN) solution is designed to assist CP improved customer service through more secure on-line ticketing and scheduling while helping to increase employee productivity with anywhere, anytime access to the corporate network. The new solution has been implemented in cooperation with Connecting, a Nortel channel partner in Portugal.

“We identified Nortel as having the best-in-class solution for providing secure connections for employee and customer communications at a competitive price,” said Sérgio Sá e Seixas, IS manager, Comboios de Portugal. “Another key benefit is our ability to reduce costs by managing our own network, independent of an external service provider.”

“Network security is vital to our customers and Nortel’s VPN Router portfolio helps ensure the secure transmission of data across networks,” said José Lobo, Enterprise sales director Portugal, Nortel. “We see companies gaining a strategic competitive advantage through an integrated security approach.”

The Nortel VPN Router Portfolio integrates all of the necessary VPN technologies into a single platform - routing, firewall, bandwidth management, encryption, authentication and data integrity for tunnelling across the Internet. The integration of multi-IP services into a single platform is designed to help improve the levels of security, as well as lower total cost of ownership.

About CP

CP - Caminhos de Ferro Portugueses, was set up as a State Owned Enterprise in 1975 to manage the railways in Portugal. Changes in domestic and Community legislation led to the transport services and the infrastructure management being separated in 1997. CP continues to run the transport operations while REFER - Rede Ferroviária Nacional, EP now runs the infrastructures and there is a rail regulator, the INTF - Instituto Nacional do Transporte Ferroviário, to oversee the sector. Because of the new economic and legal context, CP underwent a profound change in adapting towards the market. It organized itself into Business Units that were able to satisfy the needs of the different market segments. It has invested in partnerships that add value to its services for the customer and strengthen its position in the transport sector. At the same time, it has invested in retraining its human resources to make how it faces new challenges more effective in a competitive market place. For further information please go to www.cp.pt **

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.

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any material and adverse affects on Nortel’s performance if its expectations regarding market demand for particular products prove to be wrong or because of certain barriers in its efforts to expand internationally; any reduction in Nortel’s operating results and any related volatility in its market price of its publicly traded securities arising from any decline in its gross margin, or fluctuations in foreign currency exchange rates; any negative developments associated with Nortel’s supply contract and contract manufacturing agreements including as a result of using a sole supplier for key optical networking solutions components, and any defects or errors in Nortel’s current or planned products; any negative impact to Nortel of its failure to achieve its business transformation objectives; restrictions on how Nortel and its president and chief executive officer conduct its business arising from a settlement with Motorola Inc.; additional valuation allowances for all or a portion of its deferred tax assets; 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Use of the terms “partner” and “partnership” does not imply a legal partnership between Nortel and any other party.

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