At 3GSM World Congress Nortel Challenges the Industry to Deliver 4G "Lifestyle"

Industry-First Demo of MIMO in 4G-Enabled Technologies with WiMAX, LTE

FEBRUARY 08, 2007 - BARCELONA, Spain - At 3GSM World Congress 2007, Nortel* [NYSE/TSX:NT] will challenge the industry to deliver the 4G “Lifestyle” through broad implementation of next-generation, high-speed technologies essential to delivering real-time mobile services such as video and high-definition TV broadcasting.

Nortel will showcase its 4G technologies at 3GSM, the world’s largest global show for mobile operators, to be held in Barcelona, Spain February 12-15. Nortel is leading development of new 4G and converged architectures that allow operators to deliver disruptive new services, creating a fourth-generation lifestyle of high-speed, high-quality mobile communications.

At 3GSM, Nortel plans to deliver a demonstration of the industry’s first live end-to-end MIMO-powered WiMAX solution, using advanced innovative antenna technology to deliver high-bandwidth applications, such as real-time video, over personal mobile devices. The planned demo will include the Nortel MIMO base station and a variety of WiMAX devices such as a WiMAX DBDM (dual band dual mode) smart phone from LG Electronics using Sequans’ chipset; data cards from Kyocera Wireless and ZyXEL using Runcom’s chipset; and Intel-based devices. Nortel is developing a robust WiMAX ecosystem which includes infrastructure, chipsets, and devices to support the consumer era of personal broadband and hyper-connectivity.

As part of its 3GSM exhibit, Nortel will also demonstrate a number of real-time high bandwidth applications such as multi-party video conferencing, personal video streaming, video surveillance, VoIP, and instant messaging powered by its next-generation and converged networks.

“Nortel is pioneering the application of OFDM and MIMO which are the underlying technologies for WiMAX, Long Term Evolution and Ultra Mobile Broadband,” said Richard Lowe, president, Mobility and Converged Core Networks, Nortel. “Innovation in next-generation technologies is part of Nortel’s DNA which means that no one understands the wireless technologies needed to deliver 4G Personal Broadband better than Nortel. At next week’s 3GSM conference, we’ll deliver more industry firsts with our partners in LTE, WiMAX and IMS to challenge the wireless industry to transform and deliver the fourth-generation lifestyle.”

Nortel will perform the industry’s first demonstration of a 3GPP LTE (Long Term Evolution) implementation with Collaborative MIMO (also known as Uplink Multi-user MIMO) at 3GSM. In its booth Nortel plans to showcase the performance, capacity and spectral efficiency benefits of LTE with a variety of applications. The LTE demonstration will feature user equipment supplied by LG Electronics as the device partner. Guests can see how LTE can drive greater mobile multimedia adoption with more affordable services for the mass market while increasing profitability for mobile operators. In the uplink, Nortel will demonstrate Collaborative MIMO, a Nortel innovation that will reduce the complexity and cost of the terminals for mass market adoption and increase the uplink capacity of the network to almost twice as many subscribers per cell. This innovation has been accepted into the LTE and WiMAX standardization work.

GSM operators will also discover new solutions to the existing Nortel 2G portfolio - such as new IP Pico BTS for improved indoor coverage - and ways to evolve their networks directly from 2G to 4G.

Nortel CEO Mike Zafirovski, will join fellow chief executives from leading global mobile operators, equipment vendors and content providers in a keynote presentation panel session. The session, titled “Redefining Vendors for Future Success,” takes place at 09:00 am on Thursday, February 15.

In “Lifestyle” environment settings - a living room, an office, a café - live and highly interactive presentations and demonstrations will showcase Nortel’s current and future wireless capabilities across the key areas of:

* Boosting mobile multimedia - understand how Nortel’s infrastructure, ecosystems and experience deliver high-speed mobile broadband for businesses and consumers. Includes a variety of demonstrations based on LTE and WiMAX technologies. Nortel will also demonstrate how its efficient backhaul solutions can drive 3G/4G services growth by radically reducing transmission costs.
* Achieving convergence with Nortel IMS, VoIP and IPTV solutions - experience personalized mobile and secure multimedia communications for simpler and richer connectivity across devices and access. Includes making All-IP Voice a reality, extending voice services with IMS voice call continuity (VCC), and true Quad Play (voice, data, video and mobile) solutions powered by IMS.
* Transforming Business with Nortel Global Services - discover new ways to lower costs, create new revenue, maximize network performance, enhance business processes, and optimize the user experience. Includes proactive network optimization services, assisted operations or full network management outsourcing, Web services and innovative network applications services.

See Nortel at Booth Number 145, Hall 8, 3GSM World Congress, Barcelona, Spain, February 12-15

About Nortel
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. Further, actual results or events could differ materially from those contemplated in forward-looking statements as a result of the following (i) risks and uncertainties relating to Nortel’s restatements and related matters including: Nortel’s most recent restatement and two previous restatements of its financial statements and related events; the negative impact on Nortel and NNL of their most recent restatement and delay in filing their financial statements and related periodic reports; legal judgments, fines, penalties or settlements, or any substantial regulatory fines or other penalties or sanctions, related to the ongoing regulatory and criminal investigations of Nortel in the U.S. and Canada; any significant pending civil litigation actions not encompassed by Nortel’s proposed class action settlement; any substantial cash payment and/or significant dilution of Nortel’s existing equity positions resulting from the approval of its proposed class action settlement; any unsuccessful remediation of Nortel’s material weaknesses in internal control over financial reporting resulting in an inability to report Nortel’s results of operations and financial condition accurately and in a timely manner; the time required to implement Nortel’s remedial measures; Nortel’s inability to access, in its current form, its shelf registration filed with the United States Securities and Exchange Commission (SEC), and Nortel’s below investment grade credit rating and any further adverse effect on its credit rating due to Nortel’s restatements of its financial statements; any adverse affect on Nortel’s business and market price of its publicly traded securities arising from continuing negative publicity related to Nortel’s restatements; Nortel’s potential inability to attract or retain the personnel necessary to achieve its business objectives; any breach by Nortel of the continued listing requirements of the NYSE or TSX causing the NYSE and/or the TSX to commence suspension or delisting procedures; (ii) risks and uncertainties relating to Nortel’s business including: yearly and quarterly fluctuations of Nortel’s operating results; reduced demand and pricing pressures for its products due to global economic conditions, significant competition, competitive pricing practice, cautious capital spending by customers, increased industry consolidation, rapidly changing technologies, evolving industry standards, frequent new product introductions and short product life cycles, and other trends and industry characteristics affecting the telecommunications industry; the sufficiency of recently announced restructuring actions, including the potential for higher actual costs to be incurred in connection with these restructuring actions compared to the estimated costs of such actions and the ability to achieve the targeted cost savings and reductions of Nortel’s unfunded pension liability deficit; 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 the 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; additional valuation allowances for all or a portion of its deferred tax assets; Nortel’s failure to protect its intellectual property rights, or any adverse judgments or settlements arising out of disputes regarding intellectual property; changes in regulation of the Internet and/or other aspects of the industry; Nortel’s failure to successfully operate or integrate its strategic acquisitions, or failure to consummate or succeed with its strategic alliances; any negative effect of Nortel’s failure to evolve adequately its financial and managerial control and reporting systems and processes, manage and grow its business, or create an effective risk management strategy; and (iii) risks and uncertainties relating to Nortel’s liquidity, financing arrangements and capital including: the impact of Nortel’s most recent restatement and two previous restatements of its financial statements; any inability of Nortel to manage cash flow fluctuations to fund working capital requirements or achieve its business objectives in a timely manner or obtain additional sources of funding; high levels of debt, limitations on Nortel capitalizing on business opportunities because of support facility covenants, or on obtaining additional secured debt pursuant to the provisions of indentures governing certain of Nortel’s public debt issues and the provisions of its support facility; any increase of restricted cash requirements for Nortel if it is unable to secure alternative support for obligations arising from certain normal course business activities, or any inability of Nortel’s subsidiaries to provide it with sufficient funding; any negative effect to Nortel of the need to make larger defined benefit plans contributions in the future or exposure to customer credit risks or inability of customers to fulfill payment obligations under customer financing arrangements; any negative impact on Nortel’s ability to make future acquisitions, raise capital, issue debt and retain employees arising from stock price volatility and further declines in the market price of Nortel’s publicly traded securities, or the share consolidation resulting in a lower total market capitalization or adverse effect on the liquidity of Nortel’s common shares. For additional information with respect to certain of these and other factors, see Nortel’s Annual Report on Form10-K/A, 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.

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

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