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Taiwanís National Center for Traditional Arts Deploys Nortel Wireless Mesh Network


24-Hectare CampusĎHotzoneíEnables Indoor/Outdoor Wireless Broadband Access

JANUARY 10, 2006, TAIPEI, Taiwan - The National Center for Traditional Arts (NCFTA), a major Taiwan cultural complex and tourist attraction, has deployed a Nortel* [NYSE/TSX: NT] wireless mesh network to enable anywhere, anytime wireless broadband access across its 24-hectare campus.

While touring NCFTA, visitors can use any wireless device both indoors and outdoors to access wireless communications, including the Centerís advanced wireless multimedia guide describing its works of art and displays. In addition, students of NCFTAís e-learning program can access courseware remotely via a wireless broadband connection.

The network was implemented by Nortel in association with Taiwan business partners, Acer and eASPNet. Acer created demo scenarios and integrated wireless applications for this project, and eASPnet provided services such as network planning and access point installation.

The Nortel Wireless Mesh Network covers NCTFAís exhibition center, two theatres, student dormitories and three relocated historical buildings within the 24-hectare site. The Nortel wireless broadband solution is also being widely deployed in the cities of Taipei and Kaohsiung as part of the governmentís M-Taiwan cyber-city initiative.

ďThis NCFTA deployment demonstrates the powerful role that todayís wireless technology can play in helping promote traditional arts among tourists and students of Taiwanís culture,Ē said Jackson Wu, managing director, Taiwan, Nortel. ďAt the same time, the new NCFTA network underlines Nortelís continuing commitment to support Taiwanís ongoing evolution into a world-class showcase for wireless broadband innovation.Ē

Nortelís wireless mesh network solution uses wireless links to connect access points in large open areas to provide secure, seamless access to wireless broadband services. The solution is designed to allow organizations to install WLANs in areas where it is difficult or cost-prohibitive to run cables. The solution for NCFTA includes Nortelís Wireless Access Point 7220 and Wireless Gateway 7250. Because the network uses IEEE 802.11 standards, users with Wi-Fi enabled laptop computers or handheld computing devices can access the network without adding new hardware or software.

The Nortel wireless mesh solution is attracting growing interest among organizations around the world, with municipal deployments spanning Taipei and Kaohsiung, and the six-acre press site at NASAís Kennedy Space Center in Florida. Many universities have also selected the Nortel solution to enhance student services, including Edith Cowan University in Australia, Jinan University in China, Seowan University in Korea and the University of Arkansas in the U.S. Trials are also underway at National Taiwan University and the Massachusetts Institute of Technology (MIT).

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 worldís 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 worldís greatest challenges. Nortel does business in more than 150 countries. For more information, visit Nortel on the Web at For the latest Nortel news, visit

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 Nortelís restatements and the impact any resulting legal judgments, settlements, penalties and expenses could have on Nortelís results of operations, financial condition and liquidity, and any related potential dilution of Nortelís common shares; the findings of Nortelís 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 Nortelís previously announced or filed financial results and resulting negative publicity; the existence of material weaknesses in Nortelís internal control over financial reporting and the conclusion of Nortelís management and independent auditor that Nortelís internal control over financial reporting is ineffective, which could continue to impact Nortelís ability to report its results of operations and financial condition accurately and in a timely manner; the impact of Nortelís and NNLís failure to timely file their financial statements and related periodic reports, including Nortelís 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 Nortelís former CEO, CFO and Controller in April 2004; the sufficiency of Nortelís 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 Nortelís customers; increased consolidation among Nortelís customers and the loss of customers in certain markets; fluctuations in Nortelís operating results and general industry, economic and market conditions and growth rates; fluctuations in Nortelís cash flow, level of outstanding debt and current debt ratings; Nortelís monitoring of the capital markets for opportunities to improve its capital structure and financial flexibility; Nortelís ability to recruit and retain qualified employees; the use of cash collateral to support Nortelís normal course business activities; the dependence on Nortelís subsidiaries for funding; the impact of Nortelís defined benefit plans and deferred tax assets on results of operations and Nortelís cash flow; the adverse resolution of class actions, litigation in the ordinary course of business, intellectual property disputes and similar matters; Nortelís dependence on new product development and its ability to predict market demand for particular products; Nortelís 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 Nortelís customers and the impact of customer financing and commitments; general stock market volatility; negative developments associated with Nortelís 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 Nortelís 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 Nortelís 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 and the Globemark are trademarks of Nortel Networks.


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