Nortel, Option First to Achieve 3.6 Megabits Per Second Call with HSDPA Datacard

DECEMBER 22, 2005, PARIS - Nortel* [NYSE/TSX: NT] and Option N.V. [Euronext: OPTI, OTC: OPNVY] have completed the industry’s first successful demonstration of live HSDPA data card calls reaching a wireless transmission rate of 3.6Mbps - faster than the majority of current broadband connections. The test calls were carried out on commercial HSDPA network equipment at Nortel’s research campus in Chateaufort, France.

The series of calls are the first data card calls to demonstrate downlink speed of 3.6 Mbps, at HSDPA category 6 using 16 QAM modulation. A laptop fitted with an Option 3.6 HSDPA datacard based on QUALCOMM core MSM 6280 technology and commercial HSDPA network equipment from Nortel were used to achieve the download speeds.

The calls included successful ’real-world’ tests with a laptop placed in a moving vehicle to illustrate the suitability of mobile wireless broadband for high quality, live TV, High Definition video on demand, MP3 download as well as new applications for the mobile workforce.

“Nortel is committed to the thorough testing and demonstration of viable HSDPA end-user equipment with vendors such as Option to help provide a faster time to market of high speed broadband wireless services,” said Jean-Luc Jezouin, vice-president, GSM/UMTS products, Nortel. “Broadband technologies like HSDPA can only help operators realise the value of their existing Nortel UMTS infrastructure investments if viable end user equipment is available in the market.”

“The results of these data card trials mark a world first for Option and demonstrate our leadership position in the development and realization of mobile broadband wireless data solutions,” Jan Callewaert, chief executive officer, Option. “Achieving this world first underscores the strong relationships that we have with leading chipset manufacturers and infrastructure providers -- Qualcomm and Nortel,-- and reinforces our continued commitment to bring the most advanced 3G/HSDPA technology solutions to market.”

Nortel achieved the industry’s first HSDPA mobile call in January 2005. Nortel completed the first live test calls using a commercial handset solution for HSDPA in March 2005. In June 2005, Nortel became the first wireless network supplier to complete the TL9000 registration standard for Quality Management System Requirements and Measurements across its HSDPA, UMTS and GSM wireless infrastructure solutions.

Option announced its first HSDPA demonstrations early this year at CeBIT 2005 (Hanover, March 2005) and CTIA Wireless (New-Orleans, March 2005) tradeshows. In September 2005 the company announced its worldwide unique HSDPA-Ready concept, which means that whenever the network operator decides to launch HSDPA services in its territory, a simple firmware upgrade, available via the operator’s website, is sufficient to release the power of HSDPA on the data card. Option’s GlobeTrotter 3G/EDGE and the GlobeTrotter FUSION+, both “HSDPA-Ready”, are currently shipped in volumes to network operators.

Nortel has worked with a number of wireless operators on HSDPA trials and deployments in 2005, including Edge wireless in the US, SKT and KTF in Korea, SOFTBANK Group’s BB Mobile in Japan, mmO2, Orange (at 3GSM World Congress 2005 in Cannes, France), Vodafone (at CeBIT 2005 in Hanover, Germany), Partner Communications in Israel, and Mobilkom Austria.

HSDPA categories for end-user equipment are defined by the HSDPA 3GPP specification.

About Option
Option NV (www.option.com)**, the wireless technology company, is a leading innovator in the design, development and manufacture of 3G WCDMA (HSDPA and UMTS), EDGE, GPRS, GSM and WLAN technology products for wireless connectivity solutions. Option has built up an enviable reputation for creating exciting products that enhance the performance and functionality of wireless communications. Option’s headquarters are in Leuven, Belgium. The company has Research & Development in Leuven, a Software and Applications development centre in Adelsried (Germany), a Wireless Router development centre in Stockholm (Sweden) and an ISO 9002 production engineering and logistics facility in Cork, Ireland.

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.

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Ben Roome

Nortel

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